Four local dealerships on GM's list

FORT WAYNE, Ind. (WANE/AP) - GM has notified more than a thousand dealers that their agreements with the company will be terminated. At least four local dealers got the bad news Friday.

The devastating cuts come just one day after Chrysler announced it'll slash a quarter of its dealers by next month.

But unlike Chrysler's announcement, GM has not made a list public of which dealers will be cut.

The company has instead left the decision up to the dealers.

NewsChannel 15 has confirmed that GM won't renew its franchise agreement with Don Ayres Pontiac Honda GMC on Lima Road and Mendenhall-Roy Chevrolet in Grabill.

They are two of  1,100 U.S. dealerships GM plans to sever ties with.

According to NewsChannel 15's partners at the Dekalb Star, two other dealerships are closing. They include Bob Wysong Chevrolet-Pontiac in Cromwell and Preferred Chevrolet-Pontiac in LaGrange, formerly Nelsons, were both notified their GM franchises will expire in October 2010.

Dealers expected to hear the news Friday morning by either telephone or FedEx letters.

The company says it has too many dealerships for too few sales and must make the cuts as part of its government-ordered restructuring plan.

The cuts come a day after Chrysler LLC told a quarter of its dealers that their services are no longer needed.

"We received a letter from GM stating that they intend not to renew our franchise agreement," Sara Ayres, Vice President of Don Ayres Pontiac GMC told NewsChannel 15. "Obviously it's disappointing and it's a challenge for us, but we've been in business for over 40 years and we faced challenges before," said Ayres.

The dealership's in a better position than many.
It also sells Honda, which could help it stay afloat in the sinking economy.

Ayres said, "For now, the next 18 months, it's business as usual on our GM side and in the meantime, we'll plan accordingly to try to bridge the gap of any losses we anticipate."

Nearby Mendall-Roy Chevrolet in Grabill's also beginning to look into a plan B.
It received a letter like Don Ayres, with more of the same bad news.

"It's very vague and open ended and what I took from it is nobody thought they'd be in this position a year ago," said dealer Vice President Ray Mendenhall.

Mendenhall had been bracing for the cuts and says he'll fight to keep the business open even it means going on without GM.

"In 2 years when the 2011 models start to roll out, if we're not a chevrolet dealer at that point we will still be a car dealer that has a body shop and service department," says Mendenhall.

Dealers have until the end of the month to submit materials to appeal GM's decision.