On June 1, 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 Larry Simms after purchasing the dealership in 1992 from Owen Chevrolet, which opened the M-15 location in 1979.
The decision by GM 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.
‘We are staying open and doing business as usual,? said Simms.
‘Our service, including the body shop, repairs and warranty work, continues. We still have several options, including selling just pre-owned vehicles.?
Simms said that even after the closure was appealed and denied by GM, some hope exists.
Some U.S. lawmakers, explained Simms, are still battling to prevent hundreds of GM dealerships in their districts from closing.
‘There’s a need for GM dealers in smaller markets like here in Ortonville,? said Simms. ‘Right now GM is paralleling what Toyota does and focusing just on the big metropolitan areas for dealerships. There’s a lot to said about buying vehicles or any products or services locally. I encourage area residents to contact their lawmaker and express the need to keep dealerships in smaller markets open.?
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.
Simms explained that currently there are five Chevrolet stores within a 20-mile radius of his township location.