News Releases for June 2009
June 2, 2009
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Hoeven Calls On President Obama To Prevent GM Rural Dealership Closings
BISMARCK, N.D. - Gov. John Hoeven has called on President Barack Obama to stop the forced closing of General Motors dealerships in rural areas. The company has announced it will close 1,100 dealerships nationwide. Although it has not so far released a list of closings, some North Dakota dealerships have received notification of GM's intention to close their operations. The U.S. government now holds a 60 percent equity share in the business.
"The truth in rural America is that rural dealerships generate profits for GM and Chrysler," Hoeven wrote. "Dealers also provide a vast sales and distribution network for the sale of GM and Chrysler products at virtually no cost to their manufacturers. I believe that closing rural dealerships will severely reduce income from rural areas that GM and Chrysler need to survive and prosper again in the future.
"Efforts by GM and Chrysler to reduce their dealership rosters by closing rural dealerships will cause financial harm to GM and Chrysler and will cause unnecessary hardship for thousands of workers, their families, and their communities. Rural dealership closures will eliminate local jobs and damage local economies. A large number of employees working for new vehicle dealerships could lose their jobs and local businesses that sell products and services to local dealerships may be forced into laying off some of their employees.
"General Motors and Chrysler have not explained how closing dealerships in rural areas and rural states will save the car companies money, but it will clearly adversely impact our communities, businesses and consumers."
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