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Read it at Bloomberg
Following yesterday's announcement by Chrysler, General Motors is planning to close 1,100 dealerships in the U.S. in yet another attempt to cut costs and scale back its business to a point of sustainability. The move will leave $2.5 billion in unsold vehicles—120,000 cars and trucks of various GM brands—in their inventories. "GM is working to pare U.S. dealers by 42 percent, to 3,600, by the end of next year as it faces a probable bankruptcy by a June 1 government-set deadline," according to Bloomberg. "With competition reduced among retail outlets, the remaining dealers each may be able to sell more cars at higher prices, boosting profit."