Some GM dealers fear breaks in franchise contracts
President Obama, on a television monitor, discussed automaker General Motor’s bankruptcy filing in New York yesterday. (Spencer Platt/Getty Images)
After General Motors filed for a long overdue bankruptcy yesterday, Massachusetts dealers say they are worried about further closures and possible breaks in franchise contracts.
Brian Palmer, who owns Berkshire GMC in Sheffield and has been in business since his father started it in 1977, was doubtful over the company's plan to honor franchise contracts through the end of 2010, when his dealership is scheduled to close.
"I have a strong suspicion that [bankruptcy] may change the game," he said in today's Globe.
GM CEO Fritz Henderson said dealerships would not be closed earlier than expected. About 2,000 jobs will be lost in the Bay State, a number estimated from GM's earlier announcement of closing about 2,300 of its US dealers. The Massachusetts State Automobile Dealers Association says about 40 of the 98 GM dealers in the state will be closed.
Read more about GM's debts to Boston-based creditors, the Obama plan of majority government ownership, and more analysis from the Globe's front-page story today.
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about boston overdrive
Boston.com reports the latest trends, auto shows and wrings out the newest cars in our city's hellish maze - and across the great roads of New England.In the garage: 2008 MBTA Zone 1A monthly pass, 1995 21-speed Iron Horse. Bill Griffith is an automotive correspondent for The Boston Globe and has reviewed cars for 10 years. He was also the Globe's assistant sports editor for 25 years and the paper's sports media columnist.
In the garage (over the years): 1956 T-Bird, 1959 Nash Metropolitan, 1980 El Camino, 1997 supercharged Camry TRD.
