Chenango’s dealerships weather the car industry’s collapse
CHENANAGO – In the wake of bankruptcy, General Motors announced it would rejected the franchise agreements of 18 percent of its total dealerships while Chrysler cut nearly 25 percent of its entire network, claiming the closures were necessary for the survival of the companies.
Of the 1,1000 GM outlets that received notice, each of the four dealers in Chenango County, Benedict Corporation, Christman Motor Sales Inc., both of Norwich, McCredy Motors Inc. in Sherburne and Scoville-Meno Chevrolet Inc. in Bainbridge, all said they had been offered a place in the restructured company and would not be closing their doors.
Of the 789 announced closures, the sole Chrysler dealership in the county, Norwich Dodge Chrysler Jeep, in Norwich, also confirmed Thursday that it was spared the chopping block.
“I’m proud to say we’re part of the New General Motors and I’m also proud to say I’m looking forward to working with General Motors for the next 20 years before I retire,” said Christman’s owner Thomas L. Morrone.
Benedict’s owner, Trip deCordova read aloud a letter he received from GM dated June 1.
“On behalf of the entire GM team, as GM embarks on an exciting new future, I am extremely pleased that Benedict Corporation has been identified by GM as one of its key dealers.”
Spencer McCredy of McCredy Motors also confirmed that he had received GM’s letter and would sign it by the June 12 deadline.
Steve Scoville, president of the Scoville-Meno Family of Dealerships, issued a statement May 19 announcing the retention of the automotive group’s GM and Chrysler franchises, including its GM dealership in Bainbridge.
“We truly thank all our sales, service, parts, and body shop customers, who through their loyal patronage have made our longevity and success a reality over the past three decades,” said the statement.
According to GM’s website, all outlets not being closed are required to sign a new reorganizational agreement by June 12. None of the local dealerships wished to discuss the specifics of their new agreements with GM or how those changes may affect their future business, saying that the legality of the agreements made them confidential.
While Chrysler plans to close its 789 dealerships next week, less than a month after informing the franchise owners, GM will allow most of its standing agreements to expire in October of 2010 with the canceled franchises.
Those who do not accept the proposed agreement will face a similar fate and would only be allow to remain open until the 2010 deadline, when their contract agreements with GM expire.
Despite the greater recession and the car industry’s turmoil, some dealer’s are reporting good business.
“There are still a lot of people out there who are very excited about GM’s offerings and the new 2010 vehicles that are coming out. We have people stopping by all the time to take a look,” said Morrone.
“Through this tough economic crisis, Benedict’s has good news in that it is maintaining good local business,” said deCordova, who pointed out that GM sold more cars in May nationwide than any other month since the start of the year.
“These are certainly challenging times for a lot of people, but business is doing OK,” said McCredy
“Norwich never gets as good as everything, but we never get as bad as everything else either. We’re always in middle,” added Morrone.
Chenango County Chamber of Commerce President Maureen P. Carpenter stressed the importance of keeping the car dealerships in Chenango County Thursday, explaining the county collected about a 4 percent sales tax on large purchases, such as automobiles.
“That’s a huge advantage for us,” she said.
She said the dealerships employed a substantial number of well paid and skilled workers including salesmen, administrative staff and mechanics. Carpenter commended the leaders of the companies saying they deserved the credit for surviving the closures.
“They must being doing it right, I can’t believe they’d be with us now if it wasn’t for their excellent leadership and profitability,” she said.
Carpenter also pointed out the indirect value the car dealers, who contribute to the community through non-profit fundraisers and area events. “They’re often huge contributors who make a big difference in the local community,” she said.
June 3, GM CEO Fritz Henderson told Congress that by 2010, the company hopes to reduce its 6,000 dealers to about 3,500 and that it expects to shed another 900 through attrition and by selling its Hummer, Pontiac, Saab and Saturn brands.
GM announced earlier in May that of it current brands, Buick, Cadillac, Chevrolet, Pontiac, Hummer, GMC, Saturn and Saab, it only plans on retaining Buick, Cadillac, Chevrolet and GMC.
Of the 1,1000 GM outlets that received notice, each of the four dealers in Chenango County, Benedict Corporation, Christman Motor Sales Inc., both of Norwich, McCredy Motors Inc. in Sherburne and Scoville-Meno Chevrolet Inc. in Bainbridge, all said they had been offered a place in the restructured company and would not be closing their doors.
Of the 789 announced closures, the sole Chrysler dealership in the county, Norwich Dodge Chrysler Jeep, in Norwich, also confirmed Thursday that it was spared the chopping block.
“I’m proud to say we’re part of the New General Motors and I’m also proud to say I’m looking forward to working with General Motors for the next 20 years before I retire,” said Christman’s owner Thomas L. Morrone.
Benedict’s owner, Trip deCordova read aloud a letter he received from GM dated June 1.
“On behalf of the entire GM team, as GM embarks on an exciting new future, I am extremely pleased that Benedict Corporation has been identified by GM as one of its key dealers.”
Spencer McCredy of McCredy Motors also confirmed that he had received GM’s letter and would sign it by the June 12 deadline.
Steve Scoville, president of the Scoville-Meno Family of Dealerships, issued a statement May 19 announcing the retention of the automotive group’s GM and Chrysler franchises, including its GM dealership in Bainbridge.
“We truly thank all our sales, service, parts, and body shop customers, who through their loyal patronage have made our longevity and success a reality over the past three decades,” said the statement.
According to GM’s website, all outlets not being closed are required to sign a new reorganizational agreement by June 12. None of the local dealerships wished to discuss the specifics of their new agreements with GM or how those changes may affect their future business, saying that the legality of the agreements made them confidential.
While Chrysler plans to close its 789 dealerships next week, less than a month after informing the franchise owners, GM will allow most of its standing agreements to expire in October of 2010 with the canceled franchises.
Those who do not accept the proposed agreement will face a similar fate and would only be allow to remain open until the 2010 deadline, when their contract agreements with GM expire.
Despite the greater recession and the car industry’s turmoil, some dealer’s are reporting good business.
“There are still a lot of people out there who are very excited about GM’s offerings and the new 2010 vehicles that are coming out. We have people stopping by all the time to take a look,” said Morrone.
“Through this tough economic crisis, Benedict’s has good news in that it is maintaining good local business,” said deCordova, who pointed out that GM sold more cars in May nationwide than any other month since the start of the year.
“These are certainly challenging times for a lot of people, but business is doing OK,” said McCredy
“Norwich never gets as good as everything, but we never get as bad as everything else either. We’re always in middle,” added Morrone.
Chenango County Chamber of Commerce President Maureen P. Carpenter stressed the importance of keeping the car dealerships in Chenango County Thursday, explaining the county collected about a 4 percent sales tax on large purchases, such as automobiles.
“That’s a huge advantage for us,” she said.
She said the dealerships employed a substantial number of well paid and skilled workers including salesmen, administrative staff and mechanics. Carpenter commended the leaders of the companies saying they deserved the credit for surviving the closures.
“They must being doing it right, I can’t believe they’d be with us now if it wasn’t for their excellent leadership and profitability,” she said.
Carpenter also pointed out the indirect value the car dealers, who contribute to the community through non-profit fundraisers and area events. “They’re often huge contributors who make a big difference in the local community,” she said.
June 3, GM CEO Fritz Henderson told Congress that by 2010, the company hopes to reduce its 6,000 dealers to about 3,500 and that it expects to shed another 900 through attrition and by selling its Hummer, Pontiac, Saab and Saturn brands.
GM announced earlier in May that of it current brands, Buick, Cadillac, Chevrolet, Pontiac, Hummer, GMC, Saturn and Saab, it only plans on retaining Buick, Cadillac, Chevrolet and GMC.
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