GM to consolidate dealership network to cut costs

US based automobile industry giant GM has said that they are considering plans to speed up consolidation of dealerships offering their various brands to cut costs.

They are struggling to compete against the likes of Japanese automakers in their domestic market and have been taking serious steps to enhance profitability.

GM Chief Executive Rick Wagoner spoke about this decision: “We want to run a little harder at our luxury side.”

Market analysts have been criticizing the company for having too many overlapped products which end up competing against each other.

The company instead of reducing the number of models is instead planning to restructure its retail sales network around them.

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