Recordpub.com - GM: Wise Chevrolet can remain open: Randolph dealership gets official word; future of Montrose in Kent is unclear

By Colin McEwen

and Diane Smith

Record-Courier staff writers

At least four of the five General Motors dealerships in Portage County have received official notice from GM that they will remain open.

Wise Chevrolet in Randolph is the latest dealership to get the good news. Charles Auto Family in Garrettsville, Serpentini Chevrolet of Aurora and Classic Buick Pontiac GMC Cadillac of Streetsboro all learned from GM last month they would remain open.

However, the future of Montrose Chevrolet in Kent is still uncertain. General Manager Tom Bishop said the dealership is waiting until after GM’s bankruptcy hearings are over for the final word. He would not confirm whether the dealership is one of many to receive a pink slip from GM.

“We don’t know a lot,” he said. “How do you interpret a warning?” asked Bishop, referring to the letter GM sent to the dealership. “I’m a bit bemused by how they’re handling this. You’d think they would be more direct.

“Will we look different one year from now?” he asked. “We might. All the cards have not been played yet. We’ll know more in the coming days,” Bishop said.

“No matter what GM tells us, we’ll have a presence in Kent,” he added.

Last month, GM announced that about 1,100 dealerships — or 20 percent of its U.S. network — would be forced to close because of weak sales.

Wise Chevrolet Sales Manager Tim Long said when GM sent out letters to dealers that were losing their franchises, dealers were told that if they didn’t receive a letter, they would continue to operate.

However, he said, GM confirmed the decision to keep cars rolling off the lot at Wise, sending a letter this week via FedEx, congratulating the dealership for being part of the future of the new GM and Chevrolet.

Long said the dealership founded in 1923 has a loyal following.

“Most of our customers are longtime, loyal customers,” he said. “It’s a great place to be.”

GM, which filed for bankruptcy Monday, held a conference call with dealers this week, saying it wanted to get through the bankruptcy process as soon as possible.

“They said the biggest thing we could tell our customers is that we’re still in business,” Long said.

GM declined to reveal which dealers will be eliminated, instead leaving it up to franchise owners to report the decision to customers.

Terry Metcalf, executive vice president of the Akron Area Automobile Dealers’ Association, said at least one Portage County dealership will close. He declined to name the dealership.

“The closings are going to be devastating to the local economy,” Metcalf said. “The average dealer employs between 40 and 50 people, with an average salary of $40,000. They pay property taxes to support schools and payroll taxes to support cities. This is going to really hurt.”

GM is giving dealerships until October 2010 to wind down operations.

“Our GM store in Streetsboro is staying open, and that’s probably the best news we could have had,” said Dave Bruckman, general manager of Classic in Streetsboro. “It’s good news for us, but I feel bad for those who have spent their lives, maybe two or three generations, who have been dedicated to supporting GM.”