It's a waiting game for local GM dealers

by Kelli Cheatham (kcheatham@wsbt.com)

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GM dealerships

Local dealers are waiting to hear if they are among the 1,100 dealer franchises GM will be eliminating next year. (WSBT photo)

By WSBT News1

NAPPANEE — As rain pounded the pavement and shiny GM cars outside McCormik Motors in Nappanee Friday afternoon, President Bernie Beer kept an optimistic calm.

“It’s just something you go through,” he explained.

Beer said if his dealership ended up being one of the 1,100 on the auto giant’s restructuring list, he would deal with it when it happened.

“But we’ve got to just put it out of our mind until we get official word,” he said.

At Bremen Chevrolet Buick, General Manager Ron Bennett thought he was in the clear, but he knew the Fed-Ex truck could pull up to his door anytime.

“I don’t feel like we're in a real danger, to be honest with you,” he said. “It's just a matter of dealers jut waiting on that letter and seeing what's going to happen.”

In a phone conference with reporters Friday afternoon, GM Vice President of Sales, Service and Marketing Mark LaNeve said the company selected the 1,100 dealerships based on sales, customer service scores, location, condition of facilities and other criteria.

“It’s a move, perhaps, people could argue should have been taken a year ago,” LaNeve said. “But this leadership team has no choice but to take [it] now. It's painful for dealers, good for remaining dealers.”

Only the cut dealers were supposed to get letters from the company. But for GM dealers like Bennett and Beer, who still hadn’t heard anything Friday afternoon, no news wasn’t necessarily good news.

“It’s hard to get direct answers [from GM],” said Beer.

Bennett said his dealership has been getting lots of phone calls from customers and other people wanting to know if the dealership is closing.

At the end of the work day Friday, WSBT still didn’t know which, if any local dealerships got a letter from GM. That list is private — General Motors doesn't have to give out the information.

Chrysler's list from Thursday's cuts is public record because the company has filed for Chapter 11 Bankruptcy.

GM has said it plans to slash more than 2,000 dealers by the end of next year. Also, the company is possibly looking to sell Saab, Hummer and Saturn. LaNeve told reporters dealers that sell those three brands will get an update on their status in the next week or so.

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