[Sobomaster]

Here's what they're saying:

"For GM's part, Henderson said closing dealerships will save the company $2.5 billion a year, or more than $1 million per dealership, as GM eliminates many direct support programs such as dealer incentives, as well as market and advertising support.

But he said that more important than cost savings was making its dealerships more efficient and competitive. GM's dealerships grew too quickly and began to compete with one another, Henderson said. That led to rundown facilities and the loss of top-tier sales staff.

"GM's success over the long haul ... will depend in no small part on a healthy, strong and profitable dealer network that can provide the industry's best customer service and enhance the image of our four remaining brands," he said. "Dealers who underperform simply cannot provide these benefits to our customers," he said."

So basically they claim each dealership costs them $1M a year.

You can read the full article here:

http://money.cnn.com/2009/06/12/news...ney_topstories