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Business -
Business News
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Written by News Desk
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Sunday, 17 May 2009 14:04 |
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U.S. automaker GM plans to close 1,100 dealerships
American automobile manufacturer General Motors (GM) announced plans Friday to shut down about 1,100 of its dealerships, in an effort to evade bankruptcy and lower its expenditures.
GM's move comes a day after Chrysler, another U.S. car maker, released a list of 789 dealerships that it was closing. Unlike Chrylser, GM will not publicly announce the dealerships that it intends to shut down. Instead, dealerships whose franchises won't be renewed after October of next year will receive a private letter telling them of the decision.
At the moment, GM has 6,246 dealers in the U.S. It intends to reduce that number to 3,605 by the end of 2010. GM said the dealerships that were to be closed are "underperforming and very small sales volume U.S. dealers."
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Business -
Business News
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Written by News Desk
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Sunday, 17 May 2009 13:54 |
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U.S. automaker Chrysler wants to eliminate 789 dealerships
American automobile manufacturer Chrysler LLC has said that it wants to eliminate 789, or about a quarter, of its 3,200 dealers by early June. In a bankruptcy court filing on Thursday, the firm stated its network has too many dealers competing between each other and is antiquated.
A June 3 hearing has been scheduled in the US Bankruptcy Court to determine whether the move should be approved.
"This is a difficult day for us and not a day anybody can be prepared for," said Jim Press, the Vice Chairman of Chrysler.
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Business -
Business News
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Written by News Desk
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Sunday, 17 May 2009 13:31 |
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2,000 face redundancy at English steelworks
Corus Group, the world's fifth largest steel producer, announced on Friday that it may be forced to mothball its steelworks in Redcar, England. This move would threaten the jobs of the works' 1,920 employees.
Corus may be forced to close its Teesside operations as a consortium has refused to honour a 10-year contract with Corus' Teesside Cast Products, which accounted for 78% of the plant's operations. Corus' chief executive, Kirby Adams, said he was "extremely disappointed that the consortium members have seen fit to take this irresponsible action."
Lord Mandelson, Secretary of State for Business, Enterprise and Regulatory Reform, said "it is essential that Corus does everything it can legally, and with the government's assistance, to reinstate the agreement". Gordon Brown, the British Prime Minister, shared this view saying, "We are doing everything in our power to ensure that the contract is upheld." Mandelson also said "we are not prepared to reconcile ourselves to the inevitable closure of this plant".
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