[gathersnomoss]

GM will be the “official fleet supplier” for all Gubment run banks, newspapers, magazines, health care providers, and welfare recipients. Senators and Congresspukes will be exempt from the edict.

[Oldexpat]

It takes a certain administrative cost on the part of GM to keep each dealer..plus the larger number of dealers increase the cost of coop advertising, training etc.
They are hoping the the remaining dealers will be larger and stronger, but product support could suffer.
We are selling our GMC 2500 diesel. Will switch to smaller mid size pickup. Or maybe a f150.

[snowsislander]

GM will be the “official fleet supplier” for all Gubment run banks, newspapers, magazines, health care providers, and welfare recipients. Senators and Congresspukes will be exempt from the edict.

Yes, certainly something along those lines has already begun; from April 9 of this year:

THE WHITE HOUSE

Office of the Press Secretary

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FOR IMMEDIATE RELEASE                                     April 9, 2009 

President Obama Announces Accelerated Purchase of 17,600 New American Vehicles for Government Fleet

WASHINGTON – Today, President Barack Obama announced that the General Services Administration (GSA) will accelerate its purchase of new cars for the government fleet by investing funds from the American Recovery and Reinvestment Act to buy about 17,600 new, fuel efficient vehicles produced by American auto companies by June 1, 2009.

...

That's from the White House website: http://www.whitehouse.gov/the_press_office/President-Obama-Announces-Accelerated-Purchase-of-17600-New-American-Vehicles-for-Government-Fleet/.