06/15/2009 05:12 am ET Updated May 25, 2011

GM Dealerships Notified Of Closures

NEW YORK ( -- General Motors notified 1,100 of its 6,000 dealerships Friday that it is terminating their contracts with the struggling automaker, the first step in an even deeper 40% cut in its retail network.

GM spokeswoman Susan Garontakos said that the dealers receiving notice Friday are being told that their contracts will not be renewed in October 2010. Many of them are expected to close shop this year.

Read more on CNN Money