Auto Dealer Monthly Magazine is the daily operations publication serving the retail automotive industry. This automotive publication serves dealer principals, officers and general managers with the latest best practices.
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protection, making it the first major American automaker to do since Studebaker Corp. in 1933. GM announces it will end the Pontiac brand after more than 80 years of production. GM outlines a restructuring plan that includes cutting 42 percent of its dealerships. MAY GMAC Bank is rebranded as Ally Bank. Chrysler notifies 789 dealers, about 25 percent of the au- tomaker's dealership network, their franchises are being terminated. In an attempt to cut costs and avoid bankruptcy, GM informs 1,100 dealers it is terminating their franchises effective October 2010. JUNE GM files for bankruptcy. The day after filing for bankruptcy, GM announces the sale of its Hummer brand to a Chinese company, Sichuan Tengzhong Heavy Industrial Machinery Co. Chrysler completes its alliance with Italian automaker Fiat and emerges from bankruptcy. JULY GM exits bankruptcy. U.S. Transportation Secretary Ray LaHood announces the start of the Car Allowance 25 Rebate System (CARS), which would become more popularly known as "Cash for Clunkers." Under the program, con- sumers receive $3,500 to $4,500 to trade in their older, less-fuel-efficient vehicles for qualifying new vehicles with greater fuel efficiency. AUGUST In response to the popu- larity of "Cash for Clunk- ers," Congress votes to give another $2 billion in funding to the program. The program comes to a close later that month with a reported 700,000 "clunkers" turned in and rebate applications sub- mitted in the amount of $2.877 billion. U.S. largest automaker General Motors will let consumers haggle over the prices of new cars and trucks through eBay's on- line marketplace. About 225 of California's 250 GM dealers took part in the program that was halted shortly thereafter. SEPTEMBER Toyota issues its largest recall ever in the U.S.— 3.8 million vehicles, in- cluding the Camry, Prius, Tacoma, Tundra, Lexus ES350, Lexus IS250 and Lexus IS350—to address issues with the driver's side floor mat, which was believed to be related to problems with stuck accelerator pedals. GM announces that it will shut down its Saturn division after a deal to sell the brand to Penske Automotive Group falls through. In July 2009, the same month GM exited bankruptcy, the Car Allowance Rebate System (CARS), which would become more popularly known as "Cash for Clunkers " began. NOVEMBER Toyota announces it will replace the accelerator pedals on the 3.8 million vehicles it recalled in September, as well as on new cars and trucks sold since the time the recall was issued. Dealers will shorten the length of the gas pedals as a stopgap measure while the company develops replacement pedals. DECEMBER After less than a year on the job, GM CEO Fritz Henderson resigns. Board chairman Ed Whitacre Jr. takes over as CEO. 2010 JANUARY Trouble continues to mount for Toyota as the manufacturer re- calls 2.3 million vehicles over problems with sticking gas ped- als and unintended accelera- tion. Days later, the company