Area GM dealers avoid chopping block
Published 2:38 pm Tuesday, May 19, 2009
General Motors Corp. dealerships in Hermiston have missed the automaker’s cut list.
GM has about 6,000 dealerships nationwide. Friday the company sent 1,100 dealers over-night letters informing them GM wouldn’t renew their franchises come October 2010. Some reports indicated GM could ax another 500 dealers in a month.
GM hasn’t released the list of dealers as Chrysler did when it recently announced cutting nearly 800 dealerships.
Gilbert Auto of Oregon in Pendleton hasn’t confirmed if it did or didn’t receive a letter. But Swain Motors and Sherrell Chevrolet, both in Hermiston, have reported not receiving a letter.
“That’s a good thing,” said Jeff Boedigheimer, general manager of Swain Motors.
Boedigheimer said GMC has warned dealerships three months ago it was going to make the cuts. GM has been aware since 1991 it had too many dealerships, so the company was effectively competing against itself.
“I think these economic times have forced them to do something about it,” Boedigheimer said.
Swain Motor’s economic indicators, Boedigheimer said, suggested the business would avoid this round of cuts. This market is a little bit isolated in the Columbia Basin, he said, and that has benefited the dealership.
Swain Motors has 17 employees at the GMC dealership and another 12 at the Subaru dealership. All are full time, Boedigheimer said.
Dave Christiansen, Sherrell Chevrolet dealer principle, said the business wasn’t anticipating one of the letters, but the outcome was still a relief.
“You feel a lot better when the day is done,” he said.
Sherrell Chevrolet has been in business 65 years and employs 20 full time workers, many of whom have worked for the company 10 to 20 years, Christiansen said.
He also said business has been busy and solid in all departments.
Like Boedigheimer, Christiansen attributed some of that to location, but he also credited community support.
“We’re in a way better area than some of the other areas,” he said.
Boedigheimer said he thought both local dealerships would survive.
M.J. Goss Motor Co. in La Grande confirmed it also avoided the cut letter, as did Terry Becker, owner of Milligan Motors in Enterprise. But dealerships in Corvallis, Bend and Redmond received the letters.
East Oregonian reporter Eric Florip contributed to this story.