WASHINGTON (AP) — Top executives from General Motors and Chrysler on Wednesday defended their decision to slash dealerships around the country despite many hardships, saying the moves are unavoidable as they fight to overcome bankruptcy and survive.
GM president Fritz Henderson and Chrysler President James Press told the Senate Commerce Committee in prepared testimony that there are too many dealers and the networks date from the 1940s and 1950s when their companies were world leaders.
But after hemorrhaging customers for decades and losing market share to foreign competitors, the companies need to scale back all their operations to become leaner and profitable.
Reinventing GM is "quite painful" for the company, customers and for dealers who often "are the face of GM," Henderson said.
But Committee Chairman Jay Rockefeller, D-W.Va., suggested both companies were leaving loyal customers and dealers high and dry.
"I don't believe that companies should be allowed to take taxpayer funds for a bailout and then leave local dealers and their customers to fend for themselves with no real notice and no real help," Rockefeller said in prepared remarks. "That is just plain wrong."
