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Three area dealerships have received word that General Motors will not be extending their franchise contract beyond 2010.
By Bob Westfall
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WHEELING -- 7 News has learned that the ax has fallen on the relationships between General Motors and several local dealerships. Dealerships in Brilliant, Ohio, Glen Dale and Sistersville, West Virginia are slated to lose their contracts with General Motors by October of 2010.
Matthews Chevy of Brilliant, Glen Dale Motors and Bell Chevrolet of Sistersville have all received notices earlier today.
These moves are part of making General Motors a leaner, more competitive company. GM wants to cut its American dealer network by 40% by the end of 2010, part of wider restructuring efforts it needs to win further U.S. government backing by a June 1 deadline.
In a conference call earlier today GM sales chief Mark LaNe said that without a legal filling, these would be hard to enforce. And that these dealers may want to take legal action. LaNe added that GM is not looking to get into a legal battle.
Joe Matthews of Matthews Chevy, says that they will remain open as a general repair shop and a used car dealership. The changes will not affect any of his employees.
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