GM dealers receiving letters with bad news

NEW YORK (AP) - GM says it's notifying 1,100 "underperforming" dealers that it plans to drop them, as the automaker works to nudge itself back into the black.

FedEx letters bearing the bad news began arriving today, saying dealers were judged on sales, customer service scores, and the location and condition of facilities.

But, the letters say the decision isn't finalized, giving dealers to the end of the month to submit information that may change the automaker's mind.

One GM executive says dealers are an asset, but too many dealers "are a problem."

The cuts are part of the automaker's plans to lose about 40 percent of its 6,200 dealerships. They come on the heels of Chrysler's announcement that it's shedding 800 dealerships.

GM also plans to provide updates to about 470 Saturn, Hummer and Saab dealerships on the status of those brands, which it plans to sell. It says it expects some dealers will shut themselves down.Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.