After more than 18 years Larry Simms Chevrolet has locked its doors, at least for now.
‘I’m not dead yet, but right now we’re looking for investors and uses for this building and property,? said Simms.
‘Hopefully we can reshuffle and reorganize and keep going. The situation with General Motors is a ‘David and Goliath? story’we are still set for arbitration, but it’s very costly’between $20,000 to $30,000. The costs for attorneys and expert witnesses are staggering.?
However, as of press time Thursday Simms has not yet filed for bankruptcy.
On June 1, 2009 Simms Chevrolet was notified by General Motors that a contract would not be renewed for 2010. Typically, new vehicles would begin arriving on dealers? lots in August for the next calendar year’a given for owner Simms after purchasing the dealership in 1992 from Owen Chevrolet, which opened the M-15 location in 1979.
Simms said that General Motors has been making it difficult for us and other dealerships following the termination of the contract.
‘Two rumors regarding General Motors and the urging of Congress to hear the dealers appeals: first it’s just a ‘dog and pony show,? that no dealers that were axed would be allowed to return or the appeals are a chance to let some dealers back in and General Motors closed more than it should have.?
Simms? latest chances of surviving as a dealership hinged on a Dec. 3 announcement from both General Motors and Chrysler to reconsider decisions to close thousands of dealerships as part of a deal aimed to hold off federal legislation requiring both automakers to keep showroom doors open across the country. Automakers claim the closures are necessary to save cash and assure the remaining dealers sell enough vehicles to stay profitable and offer good customer service.
Having fewer dealers also gives the automakers more pricing power and helps resale values, according to GM.
The new plans include face-to-face reviews with dealerships and offers of binding arbitration with those who face closure of their showrooms. The largest U.S. automaker also said it would be more transparent about how it picked the dealers that will close.
Simms Chevrolet expanded in 2005 by adding a new front section, a refurbished showroom, service greeting area, quick-lube and children’s play area. The two-story addition grew the current facility to about 55,000 square feet. Upgrades to offices and an addition to the employee lunch area were also part of the project.
The decision by GM to close dealerships comes after a restructuring plan was submitted to the government last February, which included slashing the number of dealers nationwide by 42 percent before the end of 2010. According to GM, several factors went into whether to discontinue dealerships, including total number of vehicles sold, the penetration of vehicles sold from a dealership, profitability and if another dealership is pumping vehicles into a specific area.
Simms, who has not been able to purchase GM cars from the factory since the 2010 vehicles where released in September, explained that currently there are five Chevrolet stores within a 20-mile radius of his township location.