Chrylser Wants To Sharply Reduce The Number Of GEM Dealers

Chrysler will argue in bankruptcy court next week that it should be able to eliminate 64 of 150 GEM dealers.  This represents just over 40% of the GEM dealerships.  According to Chrysler management 26 of the dealers are already closed or winding down operations and many others have only sold a “handful” of vehicles in the past two years. Learn more:  Freep.com

Comment: This development is not too surprising. In recent weeks I  have interviewed a number of NEV dealers for an upcoming study and some of them, not just GEM dealers, have shutdown or put their operations on hold.  The economy has a large part to do with their difficulties as well as misjudging the interest in these vehicles for personal transportation. MC

This entry was posted on Thursday, July 9th, 2009 at 10:42 pm and is filed under GEM, Management, NEV, Regulation & policy, electric vehicles. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

2 Responses to “Chrylser Wants To Sharply Reduce The Number Of GEM Dealers”

  1. john Says:
    August 5, 2009 at 10:39 am | Reply

    Does the GEM qualify for the “plug in electric drive motor vehicle tax credit”?
    Tomberlin claims to be eligible for a $5500 tax credit. This is a credit not a deduction. Apparently it can be used to offset the AMT.

  2. mcesare Says:
    August 5, 2009 at 3:31 pm | Reply

    In the original legislation NEVs/LSVs like the GEM were included but subsequently they were excluded and covered by legislation specific for NEVs that allowed for a lower tax credit. This legislation allows for a tax credit equal to 10% of the NEV’s cost up to $2,500.

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