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Efforts to restructure the ailing U.S. auto industry swept across North Carolina for a second day Friday, as General Motors joined Chrysler in ridding itself of unneeded dealerships.
 

Industry leaders say the actions of the two automakers over the past two days could eventually close more than 30 dealerships across the state, including a handful in the Triad.
 

They say layoffs have already started in North Carolina and could exceed 1,500 over the next 16 months.
 

Nationwide, the cuts could cost 100,000 jobs, create holes in local tax bases, eliminate community pillars, reduce media advertising, produce empty buildings and vacant lots, and create ripples throughout the economy.
 

“It is a tremendously sad day,” said Robert Glaser, president of the North Carolina Automobile Dealers Association in Raleigh. “In several generations, this is the worst thing that has happened to the auto industry.”
 

Glaser estimated that GM would cut 20 to 25 dealerships in the state. Initial reports indicate at least two of those could be in the Triad.
 

An official at Stearns Chevrolet in Graham could not confirm reports that his dealership would be one of those eliminated. If it is, it would mark the second time in two days that the Stearns family, which owns four dealerships in Alamance County, had been notified that one of its operations would be closed.
 

Chrysler told the family Thursday that it would shut their Chrysler-Jeep dealership in Graham next month.
 

Glaser said Chrysler has notified 13 Tar Heel dealers that it would not renew their contracts. The list, which totaled 789 nationwide, also included Greensboro’s City Motors.
 

Unlike Chrysler, which has filed for bankruptcy, GM did not provide a list of dealers whose franchise agreements will not be renewed next year. The automaker planned to notify about 1,100 dealers by telephone or FedEx letter on Friday.
 

“Right now, no news is good news,” Dave Hansing, general manager at Terry Labonte Chevrolet in Greensboro, said Friday afternoon. “That’s a good way to put it.”
 

Minutes later, Hansing got word from a superior that his dealership would not be closed.
 

Others adopted a similar approach.
 

“It becomes a waiting game,” said Mike Tozer, general sales manager at Vestal Pontiac, Buick, GMC in Kernersville. “You can imagine all the dealerships ... knowing they could get a letter losing their franchise. That is just gut-wrenching.”
 

Tozer added, “We feel like we have made the cut and we are OK.”
 

GM and Chrysler are faced with the problem of having too many dealerships and not enough sales.
 

GM announced last month that it plans to cut more than 2,600 dealers by 2010. In addition to the 1,100 cuts initiated Friday, the company will shed about 500 dealers that offer the Saturn, Hummer and Saab brands, which GM will sell or phase out. The company expects another 400 dealers to close voluntarily. And another 600 would be consolidated into other dealerships or lost their contracts.
 

Industry observers believe GM’s dealer cuts will have a greater impact than Chrysler’s. While many Chrysler dealers also sell other brands and will stay open after losing their franchises, a large number of GM dealers sell only GM vehicles.
 

So if their franchises are revoked, they run a greater risk of closing for good.
 

Chrysler has received $4 billion in government aid, while GM has received $15.4 billion. GM continues to restructure out of court and faces a government-imposed deadline of May 31 for doing so.
 

Chrysler wants to close its dealerships by June 9. GM will close its operators by late next year.
 

GM dealers are protected by state franchise laws, and the company concedes it would be easier to cut them if it were operating under federal bankruptcy protection.
 

Chrysler dealers have fewer options because the company has already filed for bankruptcy.
 

This week’s actions by the two automakers put many dealers on edge.
 

In Reidsville, the Smith Stokes family operates both a GM and Chrysler dealership.
 

“It’s been a little tense...,” said Pete Stokes, the business development manager. “We haven’t found a letter so we appear to be good.”

The Associated Press contributed to this report.

Contact Donald W. Patterson at 373-7027 or don.patterson@news-record.com