According to an article in the Dallas Morning News, General Motors notified 1,100 of its U.S. based dealerships that they will terminate their contracts late next year. GM, which is facing a possible bankruptcy targeted the most “underperforming” dealers with weak sales and uncompetitive markets for termination.
The article said:
The cuts are part of a larger GM plan to drop 2,600 of its 6,200 dealerships as the automaker tries to restructure to become profitable again… Besides the 1,100 dealership cuts, the company will provide updates to about 470 Saturn, Hummer and Saab dealerships on the status of those brands, which it plans to sell.
The dealership closures will cause thousands of direct job losses and untold numbers of indirect job losses at companies which depend on dealerships for business. And that’s not counting the job losses that would be caused by a GM bankruptcy. For those workers who depend on the auto industry for their livelihood, now may be the best time to reassess your financial standing.
If you suspect that you will face a job loss because of the automaker bankruptcies and dealership closures you may need to make plans to reduce or eliminate your debt. Many unemployed workers who depended on the auto industry for high salaries in the past are now finding it difficult to secure comparable compensation.
Could this be you? If so, you need to take an honest look at your income now and what that income would realistically become if you suffered a job loss. Mortgage payments, credit card liability and daily bills will not go away. If you are already struggling to pay your financial obligations, you may want to consider bankruptcy before you face a job loss and/or significantly reduced income.
Contact a Dallas-Fort Worth bankruptcy attorney today.