UPDATE: Two Georgia-Carolina car dealerships on hit list

WASHINGTON (NBC) - Car dealers are upset about plans to close 3,400 General Motors and Chrysler dealerships as part of the Obama administration auto bailouts.

The xml_names of Chrysler's dealerships were released on Thursday. NBC Augusta 26 News has learned Augusta Dodge on Gordon Highway and Dick Smith Motors of Aiken made the closing list.

Dealers said it's a bad idea that will cost jobs, hurt sales, and change some communities forever.

Almost sure to close is the Arnold dealership that's sold Pontiacs and GMC trucks since 1926.

"It'll impact the community," Bob Arnold with Arnold Pontiac - GM said. "There's no question about that."

Houston, Pennsylvania would lose its last new car dealership and Bob Arnold's employees would lose their jobs.

Car dealers came to Capitol Hill Wednesday to fight the dealership closings.

"And say to the president what is the reason for your auto task force willing to cut all these dealers? It's a bad thing," Michelle Primm with Cascade Auto Group out of Cuyahoga Falls, Ohio said.

But the Obama panel said it's part of turning U.S. car makers around: closing 40 percent of GM stores and a quarter of Chrysler's.

"The auto task force believes that if you have fewer dealerships but stronger dealerships there is less of a chance that they're going to undercut each other in terms of pricing and in terms of servicing and ultimately this will help the brands become stronger," CNBC auto industry reporter Phil Lebeau said.

That works for Honda and Toyota, they sell more cars with fewer dealers, but John McEleney, who owns a Toyota and a Chevy dealership in Iowa, and chairs the dealers association, opposes the government forcing closings.

"It doesn't help," McEleney said. "I think there's a thought that closing dealerships somehow saves the manufacturers money. It's just not true."

Cars like Camaros are bought and paid for by the dealership before customers get a look.

The 100,000 to 200,000 highly trained, well paid service work employees could be laid off, and local little league teams and charities will be impacted if 3,400 U.S. GM and Chrysler dealerships lose their franchises.

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