Often in life there are innocent bystanders when trouble starts – people minding their own business who are impacted by the actions of others. Such was the case for car dealers in our trade area this past week.
On the heels of dealership reductions in the United States, Canadian GM dealerships were told last Tuesday whether or not their franchise would remain part of the General Motors system. In this area, several dealers selling GM products were informed they would no longer be part of the dealer’s official network, as of October 2010.
For Gary Cooper Chevrolet, Robinson Pontiac, Ken Weeks Pontiac, Harriston Motors and Tim Haines Chevrolet, the announcement ended weeks of speculation. Sadly for those firms, which have served customers well and been important parts of their respective communities for decades, an era has ended. Decades of quality service, dedication and pride in offering brand new GM cars and trucks is over.
Those firms were entirely loyal to their respective brands and firmly believed in the products they sold. In a sense they could be viewed as front line ambassadors for what was once the world’s largest car manufacturer.
For the many people involved, whether the dealer principal, sales staff, office help or mechanics, a range of emotions surfaced. Shock, anger and disbelief sum up the feelings for many. Days later, there remains a sense of bewilderment, no different than an employee losing a job out of the blue. The difference of course, for the owner, is the financial hit taken on their million dollar investment.
While the News was very fresh last week, we did get the sense that many were already planning their next move. Those options include seeking another franchise or selling used cars. None of the dealers involved have indicated any hint of accepting forced retirement and closure – which speaks to their resilience.
We also detected a keen awareness of the responsibility that the those owners have for their employees – some of whom have been with the firms since they started. It’s a commendable outlook, and based on past experiences, not much of a surprise.
There are many things in our local communities that go unrecognized – a hand up for this group or that one, donations to schools and Sports, leadership in local activities and active participation in service clubs. We can say with some certainty that the GM dealers now facing their own challenges were often front and centre when it came time to help. That is the kind of community interaction that helped build the GM brand in this area. Granted the individual dealers made choices to help, but along with their names was a GM product or logo. The good will was priceless and didn’t cost the head office a cent.
So, as these dealers start to reorganize, we have heard a lament that loyalty to their local dealers will remain.
Of course these are loyal customers talking, many of whom developed a relationship with their dealership of choice akin to a friendship. Some people have gone so far as to suggest they will buy another brand rather than go out of town. Considering that GM’s marketshare is pegged around 35% in Wellington County, there is much at risk.
In a very proactive move, Centre Wellington council is supporting an initiative that would ask GM to reconsider the closures. Other petitions have surfaced too, for owners and residents who want a local GM dealer. We wish them luck.
The remaining question for dealers and their staff is: Why? Restructuring and searching for bail-out funds seems to have trumped local partnerships that have worked very well in the past.
