GM executives have been quick in denying rumors that emerged yesterday claiming that GMC and Pontiac will be eliminated, and said there are no plans to terminate franchise agreements by June 1.
"The strategy we laid out for you is still the strategy," sales chief Mark LaNeve said in an interview with Automotive News, referring to February's restructuring plan submitted to the U.S. Treasury Department. "Are we working on it, tweaking it, examining every aspect of it? Yes, but nothing has changed with our strategy, he said.
Yesterday, Motor Trend had reported that people close to discussions between GM and President Obama's automotive task force said that the elimination of GMC and Pontiac were being discussed, as well as an accelerated timetable for closing up to 1700 dealers.
But LaNeve said that the rumors "are just unfounded, unsubstantiated and untrue."
"Buick and GMC are very profitable brands and we have plans to make them even more profitable," he told Automotive News. Of the task force, he said "they're not pressuring us to give up on anything."
Although GM will not close all its targeted dealerships by June 1, LaNeve did say that GM will target metro areas for consolidation. It will consider operator effectiveness, location and working capital when it considers which dealerships should close.
Source: Automotive News