(Chevrolet) Dealership loss rips fabric of Pa. town

[Bozita]

Source: Detroit News

Wednesday, May 27, 2009
Dealership loss rips fabric of Pa. town
Charlie LeDuff / The Detroit News

Sandy Lake, Pa.
There is a long-held belief among some Methodists and Mennonites and Amish who inhabit the rolling farmlands around this western Pennsylvania hamlet that God shall reward those who work hard.

So imagine the confusion of Bobby Kaltenbaugh when he received a plain white envelope containing a one-page letter from Detroit informing him that after 76 years, General Motors Corp. is severing ties with his dealership.

The unsigned letter, dated May 14, ended with this dry-mouth salutation:
"Sincerely, General Motors Corporation"

The threatened loss of Walker Chevrolet has sent ripples of uncertainty across the small community of Sandy Lake, which in ways big and small depends on the family-owned business.

Read more: http://www.detnews.com/article/20090527/METRO08/905270364/1439/METRO08/Dealership-loss-rips-fabric-of-Pa.-town

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More ripples.

[WriteDown]

1. The worst part of this....

Is that GM won't take back the dealership's inventory. Basically, if you get a letter you are closing, then you have to declare bankruptcy.

[madrchsod]

2. our government`s continued destruction of the middle class

there was no reason what so ever for the government to kill off dealerships.

this is another example of why we have no voice in the future of this country.

i have to proof read before i post

[ohio_88]

4. Not a decision made by the government

From what I have read, the government has not dictated the
closing of the dealerships.  That is a decision made by the
company in a move to restructure and streamline their
business.  Businesses too close together were operating in
competition with each other.  Good for the car buyers, bad for
the dealers and manufacturers 

[Demit]

5. Thanks for interjecting some facts.

I wish people wouldn't jump to faulty conclusions. I wish they'd take the time to know the facts before they leap.

[high density]

8. Better question is...

Why did a town with 696 people have a Chevy dealership to begin with? There are 24 Chevy dealerships within 50 miles of Sandy Lake.

[RamboLiberal]

12. Think back a couple of generations

American car companies like GM had so many dealers as a legacy of small city/small town America. People then didn't want to drive 25+ miles to have their car serviced. They wanted to have local dealers to buy and service their vehicles.

These dealers are now going the way of the local grocery, drug store, hardware store, diner, etc.

Like Wal-Mart only the big mega-dealers are going to survive and if you live outside an urban area be prepared to drive a long distance to buy and service your vehicle.

[Romulox]

9. The Obama admin is forcing GM into Bankruptcy. So yes, it is.

:hi:

[madrchsod]

18. the government decided that gm had to close dealerships.

it was a condition of their bail out money. the rest of my statement i`ll stand by. how many thousands of jobs are being eliminated because someone on the panel decided this was the only way for gm to sell more cars. selling cars to the dealers-not the consumer. once again small business to medium business gets fucked while the banks receive billions to buy back their worthless paper.

[liberal N proud]

7. It sure doesn't make sense

If you are trying to sell more product, wouldn't you want more places to buy the product?

Some of the dealerships closing are good volume selling dealerships too.

[blue_onyx]

11. Toyota and Chevy sell about the same amount of vehicles

but Toyota has about half the dealers. A large number of locations doesn't necessarily mean more sales.

[Bozita]

13. But a GM buyer might buy a Ford if the dealer is 2mi away while the GM dealer is 12mi away

[liberal N proud]

16. 12 Miles isn't anything

In rural parts of the country, Iowa, Minnesota, Missouri and others, the next nearest dealer may be 50 - 60 miles away.

[madmom]

3. Another domino falls... n/t

[Javaman]

6. But , but, but...

the recovery is supposed to take place in the 3rd quarter!!!

[blue_onyx]

10. I wonder if we'll get a list of all dealers set to close

once GM enters bankruptcy.

[xxqqqzme]

14. A list will have to be filed w/ the court

so yes a list should be available.

[w4rma]

15. So the dealers will merge and conglomerate. Some (insider) dealers probably pushed for this. (nt)

[devilgrrl]

17. "God shall reward those who work hard"

Oh really? If that's the case, why is it that those who work the hardest get paid the least?

What a pile of horseshit!