Two local GM dealers didn't make the cut on Monday among more than 600 dealerships reinstated to General Motors Co.
Officials at Henna Chevrolet Cadillac in Aiken and Johnson Motor Co. said the dealerships did not receive calls from the automaker on Monday.
"I called our regional manager and verified, and he said that we are not on the list," said Jimmy Scott, the executive manager at Henna Chevrolet Cadillac.
Scott said that no reason was provided, and he is unaware of the criteria used to determine the 661 dealers that were reinstated. Henna Chevrolet Cadillac plans to continue its fight and proceed with arbitration, he said.
Last year, GM told 2,000 dealerships it would revoke their franchise agreements in October as part of its restructuring. The Detroit automaker said that it needed to reduce the number of showrooms to keep the remaining ones healthy.
It announced last Friday that it would send letters to about 600 of the 1,100 dealerships seeking to stay with GM giving them the option to remain with the automaker.
In May, GM informed Henna, Johnson Motor Co. of South Carolina in Graniteville and Stokes Hodges Chevrolet Cadillac Buick Pontiac GMC in Thomson that it would not renew their contracts after they expire.
Henna stopped selling new GM vehicles and is now a used-car dealer.
"We intend to go to arbitration, and our hope there is to win and get our franchise back. We'll get it back one way or the other, hopefully," Scott said.
Johnson Motor Co. was also not reinstated as a GM dealer on Monday, said owner Duncan Johnson Jr.
"There were some people that received calls yesterday, and we were not in that category. But we're continuing to serve our customers everyday. We have new cars for sale on our lot, as well as our service department and warranty department are fully open. We work everyday to make sure that continues to happen," Johnson said.
Johnson Motor Co. sells new Buick and GMC vehicles in addition to used cars of all types, Johnson said.
He said that he couldn't comment on whether Johnson Motor Co. would seek arbitration.
"That's about all I can say at this point, but we are optimistic of the future of GM in Aiken (County)," Johnson said.
Officials at Stokes Hodges Chevrolet Cadillac Buick Pontiac GMC in Thomson were unable to be reached for comment.
I just don't understand the idea behind dealer closings' ...Dealers sell cars.
I'm not in the car business but I think the manufacturers have to support the dealers with advertising money, etc (they co-op with them) - for their TV, radio & print ads.
If they have 15 GM dealers in Atlanta then they have to support all 15 dealerships. If they narrow it down to 5 dealerships then the manufacturer spends less.
Even though the dealership sells cars, the manufacturer is probably thinking that if someone wants to buy a GM they'll go to one of the 5 dealers and essentially the same # of cars would be sold for less cost to the manufacturer.
Officials at Stokes Hodges in Thomson were unable to be reached for comment...... Duh, that dealership closed down a few months ago. Lot is now empty and is for sale.
I just can't see it...If you want to sell cars you don't close dealers you open more....Like I said---Dealers sell cars.
DAMY46, GM should have a million dealerships in every city then. More is not always better.
I read somewhere that the average dealership employ 46 people. 46 x 2000 dealers = 86,000 jobs lost at dealerships during the restructure of GM. So we paid something like $40B tax dollar to flush 86k jobs down the toilet.
Does GM want to sell new cars?--Well, open one new dealership in Harlem or Grovetown and another one on Tobacco Road...Like I said...Dealers sell cars.....my 2 cents
I'll be glad when the government nationalizes a lot more companies so they can be restructured by people who've never held a job before. Government employees playing at being in business. I guess that's the left's idea of heaven.
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