General Motors, one of three Detroit-based automakers currently lobbying the federal government for a $25 billion industry bailout, has canceled its franchise make meetings at the 2009 National Automobile Dealers Association (NADA) convention, as well as its upcoming Minority Dealer Development Conference, according to industry reports.
Taking place Jan. 24-27 in New Orleans, NADA was to be the site of several meetings for individual GM brands, including Buick, Cadillac, Chevrolet, Pontiac and Saturn, among others. Instead, citing increased corporate responsibility and cost-cutting efforts, GM will now hold one general company meeting on Sunday, Jan. 25, which will be attended only by essential executives, such as CEO Rick Wagoner.
"GM is cutting a lot of expenses and looking at every item," GM franchisee Michael Martin, who sits on NADA's board of directors, told industry trade Automotive News last month. "We felt the franchise-specific meetings weren't as important as the overall general meeting."
In addition to its brand meetings, GM has cancelled its Minority Dealer Development Conference, which is held annually in conjunction with NADA. It will, however, move forward as planned with a GM Minority Dealer Association scholarship banquet on Friday, Jan. 23—although it may decide not to provide a speaker, due to the extra cost.
"This will be the way GM looks at everything we do going forward for the immediate future or long term," GM spokesperson Susan Garontakos told Automotive News. "We're looking at everything we do."
GM's revised NADA agenda comes as America's "Big Three" automakers ask Congress for $25 billion in emergency federal funding to help them avoid bankruptcy. In fact, GM, Ford and Chrysler were expected to send to Congress today a "viability" plan that includes their proposals for restructuring their ailing companies and, should it be approved, repaying the massive federal loan.