DAVID DONALD
Staff Writer
LEESBURG -- Despite the recent restructuring of automotive giant General Motors Corp., GM dealerships in Lake and Sumter County are confident they'll survive the massive closing of dealerships.
In an effort to avoid bankruptcy, GM this week put forth a plan that would eliminate 2,600 dealerships, 21,000 workers and $44 billion in debt.
General Motors is also phasing out its Sabb, Saturn and Hummer brands by the end of the year. Pontiac will be discontinued after the 2010 model year.
Mark Wamsley of Cecil Clark Chevrolet in Leesburg said it's a smart move and shows a confused public the direction the automotive industry is taking.
"You've got to have the changes," said Wamsley, general manager of the Chevy dealership. "They realized they didn't need duplicate product lines."
The Detroit-based company expects to lose 500 Hummer and Saturn dealers when the brands close or are sold, and it expects 400 dealers to close voluntarily. Another 500 would be consolidated into other dealers.
The company has announced it also plans to reduce dealerships by 42 percent from 2008 to 2010, cutting them from 6,246 to 3,605.
Greg Clark, owner of Cecil Clark Chevrolet, said they would not be included in those numbers. Cindy Chevrolet in Wildwood, part of the Clark family business, would also survive.
"It's a challenging market out there," said Greg Clark, "but I'm confident we're in the hunt."
Clark said many of the dealerships facing closure lie in the more metropolitan areas of the country.
Dealerships in rural and bedroom communities are somewhat insulated from GM's decision because they sell more than one brand.
There are no dealerships in Lake and Sumter that strictly sell one brand of vehicle.
And some dealerships in Lake going to extra lengths to diversify their business model.
Rather than selling new cars, many dealerships are now depending on used-car sales.
Many dealerships have relied more on used cars than new car sales the last two years. Almost 70 percent of the Clarks' sales last year were from selling used cars.
"We're a used car dealer with a new car sign," said Wamsley.
Much like Clark, Phillips Buick-Pontiac in Fruitland Park also depends on its used-car sales.
"I don't think it will affect us too much," said Kenny Douglas, the new car manager at the dealership. "We sell a lot of cars and we've got a great community around to support us."
Douglas and used car manager T Costas receive the 2008 Pontiac Mark of Excellence Award Tuesday for being number one in sales, customer service and training in the region.
It could be one of the last 62-pound trophies Pontiac will award, given the recent news from Detroit.
"It will probably be worth something someday," Douglas said. "We're going to miss it (Pontiac), but we're going to be all right."
The Associated Press contributed to this report. |
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