Houston partner Billy Donley was quoted in a May 16, 2009, Bloomberg News article, "GM in Bankruptcy May Speed Dealer Cuts to Match Chrysler's Pace."
According to the article, General Motors' plan to slash its dealer network by the end of 2010 may accelerate, matching the pace set by Chrysler, in a bankruptcy the biggest U.S. automaker says is probable. GM recently sent letters to approximately 1,100 of its dealers, notifying them that they would have to close by late next year. These letters were sent one day after Chrysler sent similar letters to 789 of its dealers nationwide.
A Chapter 11 filing would help GM shed franchise accords that would otherwise be binding, according to the article. "If GM files bankruptcy, the landscape will change to reflect what Chrysler is doing with its dealer body," said Donley. "What's currently on the table would change if they [GM] go into bankruptcy," said Donley. "They may not let dealer agreements expire, they may just leave them in court."