California Business Climate:
GM Closures Hit Dealership Number Six in California, This Time in Sunnyvale

Sunnyvale Chevrolet closed its doors Wednesday as part of General Motor's downsizing efforts, making it just one of the 1,100 dealerships set to close nationwide by November 2010. By Thursday morning, all that was left was an empty lot where new cars previously awaited buyers.

Sunnyvale's Communications Officer John Pilger told the San Jose Mercury News: "Sunnyvale Chevrolet's closure will contribute to a lower income for the city. Sunnyvale's auto row remains a very important part of the economic and business future of the city."

Now, city officials are doing what they can to fill lost sales tax revenue.

The Sunnyvale closure marks the estimated sixth closure in California by General Motors, according to a GM closure list updated at the Huffington Post, and based upon press reports – officially, GM has yet to announce which dealers will be closed. The closed California GM dealerships include: Mazzei's GMC (Pittsburg), Courtesy Chevrolet (Morgan Hill), Firebaugh Chevrolet (Firebaugh), Hatfield Buick-GMC Truck (Redlands), Tri Buick Pontiac GMC (Hemet). The only GM dealership that has been guaranteed to not close was Harris Pontiac GMC (Whittier).

According to estimates by the Huffington Post, Tennessee and North Carolina were the only states that have not announced GM closures, thus far. Florida reported eight closures, and Texas and New York each had seven closures. (Source: San Jose Mercury News, October 1. The Huffington Post, first posted June 11.)

Cal-Taxletter, October 2, 2009

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