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GM plans to drop about 1,600 U.S. dealers as it struggles to slash billions of dollars in operating costs and debt ahead of an anticipated bankruptcy filing by the end of the month.

Reuters is reporting that GM said, if it files for bankruptcy, it would most likely pursue a quick sale of its best assets to a new operating company similar to the process now reshaping Chrysler LLC.

GM has about 12 potential buyers of the endangered Saturn brand, which could include an asking price and a list of assets that might be included in the sale.

Wednesday, 13 May 2009 16:59

Dealers Fight to Slow Store Closings

More than 100 dealers met with House and Senate members to encourage them to ask President Obama's auto task force to slow down plans to reduce General Motors' and Chrysler's dealer networks.

In what sounds like the closest step yet to a Manhattan Project for the auto industry, General Motors and the University of Michigan on Thursday announced the formation of the Institute of Automotive Research and Education. Priorities include helping to improve fuel economy, speeding electric vehicles to market and studying smart materials that will replace mechanically operated vehicle components.

Ford Motor Co., the only U.S. automaker operating without federal bailout loans, burned through $3.7 billion in cash during the first quarter in posting its fourth straight quarterly loss.