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Ohio Valley GM Dealerships To Lose Contract In 2010
Posted Friday, May 15, 2009 ; 02:56 PM | View Comments | Post Comment
Updated Friday, May 15, 2009; 03:30 PM


Three area dealerships have received word that General Motors will not be extending their franchise contract beyond 2010.

By Bob Westfall
Email | Bio | Other Stories by Bob Westfall

WHEELING -- 7 News has learned that the ax has fallen on the relationships between General Motors and several local dealerships. Dealerships in Brilliant, Ohio, Glen Dale and Sistersville, West Virginia are slated to lose their contracts with General Motors by October of 2010.

Matthews Chevy of Brilliant, Glen Dale Motors and Bell Chevrolet of Sistersville have all received notices earlier today.

These moves are part of making General Motors a leaner, more competitive company. GM wants to cut its American dealer network by 40% by the end of 2010, part of wider restructuring efforts it needs to win further U.S. government backing by a June 1 deadline.

In a conference call earlier today GM sales chief Mark LaNe said that without a legal filling, these would be hard to enforce. And that these dealers may want to take legal action. LaNe added that GM is not looking to get into a legal battle.

Joe Matthews of Matthews Chevy, says that they will remain open as a general repair shop and a used car dealership. The changes will not affect any of his employees.

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User Comments [ post comment ]
User Comment
JBell
5/26/09 at 1:59 AM
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dougontrack,

Couple of thoughts on Robinson making out well in absorbing all the customers(lost sales) from Glendale and Sistersville. Sounds good in theory, but it probably won't work out that way.

The Robinson family runs two very good operations and they are great for the automotive market, but here will be their problems in absorbing the above mentioned sales.

Customer shopping patterns for NEW: Most Tyler and about 1/2 Wetzel Countians shop south, so Marietta and Parkersburg should do great in which there are presently 5 GM dealership locations. If they do shop north, they still must pass by 3 other GM stores to get to Robinsons.

Customer shopping patterns for USED: 80% of all customers purchase within 30 miles of their home, you can do the math on that one.

And the final problem, if they do travel & purchase a vehicle from the highlands, GM and Robinson are only 1 Check engine light away from losing business for GM and themselves forever.
User Comment
David M
5/15/09 at 11:15 PM
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Sorry to hear about Matthews, a first class "old school" dealership. They'll survive, though. Great bunch of people.
User Comment
dougontrack
5/15/09 at 5:38 PM
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Robinson will make out well...The new dealership @ the highlands will absorb all the customers (lost sales) from Glendale and sistersville.

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