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Dealers Hit Hard By Automakers' Woes

More than 10,000 dealerships, nearly all of which sold American brands, have closed since 1970, according to the National Automotive Dealers Association. Last year, 430 called it quits, and the organization expects at least that many -- but probably far more -- to close in 2008, leaving about 20,000 of them nationwide.

Decades of declining market share have left the Detroit companies with too many stores and too few customers. In the last 40 years, GM alone has gone from building almost three out of every five vehicles sold in the U.S. to about one out of five. Last year, 260 GM dealers shut, mostly as part of the company's strategy to combine Buick, Pontiac and GMC brands into single showrooms.

Automakers also have been struggling with whether to eliminate weaker brands, which would create even more turmoil for dealers. GM, which has tried to support eight brands, said this month that it might sell Hummer. Many analysts doubt the longevity of Buick and Pontiac, as well as Mercury at Ford and Jeep at Chrysler.

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