General Motors, which is expected to emerge from bankruptcy tomorrow, still will not release a list of the about 2,600 dealers it plans to jettison by October, forcing surviving dealers to find ways to reassure jittery consumers.
Some local dealers -- including No. 1 Cochran, Monroeville; Castriota Chevrolet, Dormont; Bowser, Pleasant Hills; North Star, Moon; and Kenny Ross, Irwin -- have started assuring customers that they will indeed stay in business, with others expected to make announcements soon.
GM, which had 5,969 dealers as of last month, has arranged to sell its "good assets" to a new GM company led by the U.S. Treasury by tomorrow, leaving the bad assets in bankruptcy court to be hashed out over a period of months or possibly years. The federal government has pledged to cut off funding to GM if the sale isn't approved by tomorrow. The struggling automaker said it is reducing its dealership network by getting rid of "underperforming and very small sales volume U.S. dealers."
Consumers looking for bargains from dealers that will want to get rid of inventory have registered their unhappiness about the lack of information, but GM officials say there are good reasons why they are not disclosing the list.
"We just feel that this is a personal matter between us and the dealers and we wanted to maintain that confidentiality," said GM spokeswoman Susan Garontakos. "If the consumers calling were in business, they would feel the same way."
She said that almost 100 percent of the dealers who will be moving forward with GM after bankruptcy have signed participation agreements, while more than 98 percent of those who are closing have signed what are called "wind-down agreements."
GM is offering assistance programs to the dealers it is discontinuing to help them with expenses during the transition.
"They will be provided financial assistance based on a formula to help them wind down their inventories, their operations and their dealership," said Ms. Garontakos.
GM will offer dealerships between $20,000 to $1 million based on that formula, with one condition being that dealers receiving aid not talk to anyone, other than employees, without the company's permission.
"Privacy keeps things respectful," Ms. Garontakos said.
"It's really been pretty quiet," said Randy Rogers, sales manager at North Star Chevrolet in Moon. "There's not been much communications from GM, and we also don't even hear any details coming from other dealers."
Still, Mr. Rogers is focused on the bigger picture. "My view is that GM is going to be there regardless, one way or the other.It's just a matter of how."
"You always move forward and never look behind you," said Richard Simon, general manager of Kenny Ross Chevrolet in Irwin. "GM is going to be just fine. I have confidence in them."
Mr. Simon pointed to some hot-selling cars such as the 2010 Chevrolet Camaro, which reportedly is outselling the redesigned Ford Mustang, as proof that GM has what it takes to survive.
When the new GM emerges from bankruptcy, the federal government to will hold a 60 percent ownership stake, with the Canadian government owning 12.5 percent, the United Auto Workers getting 17.5 percent and unsecured bondholders receiving 10 percent. Existing GM shareholders will be wiped out.