McAndrews-King Survives GMC Dealer Cutbacks
ADAMS, Mass. — Richard King was nervous but confident last week that General Motors wouldn't put the brakes on his longtime dealership.His hopes were confirmed Tuesday with a letter designating McAndrews-King Pontiac, Buick and GMC Truck a "key dealer" based on sales and service.
Others weren't so lucky: Berkshire GMC of Sheffield, the only new-car dealership in South Berkshire, is reportedly one of the 1,100 GMC dealers being scrapped. Southgate Motors in Pittsfield also sells GMC.
"We are so relieved and so excited to be chosen," said King. "We've worked very hard for the past 36 years to do something right."
McAndrews-King has been located on the corner of Columbia and Friend streets since its opening in 1973. King and General Manager Lawrence Choquette have been there since the beginning, and two other employees have 35 years each.
General Motors Corp., which filed for Chapter 11 bankruptcy on Monday, formally notified its dealers on Tuesday whether they would be offered "wind down" agreements that would provide them with financial aid in closing by the end of their contracts in October 2010. Most had already been warned two weeks ago that their contracts would not be renewed.
GM plans to trim its more than 6,000 dealerships to around 3,600 over the next few years.
Auto giants GM and Chrysler LLC, also in bankruptcy, have been reeling from a precipitous drop in car sales over the past two years caused by a spike in gasoline prices and the global financial crisis. Dealerships are awash in unsold vehicles as the carmakers grapple with rising costs.Chrysler will close at least a quarter of its dealerships; GM plans to shutter another 900 as contracts run out and from selling off or discontinuing its Hummer (being sold to a Chinese company), Pontiac, Saab and Saturn lines.
King said his dealership shouldn't be affected by the loss of Pontiac, a line he's sold for decades.
"We sold a lot of Pontiacs," he said, which the dealership will continue to service and cover under warranty. But he'll still have plenty of Buicks and GMC trucks. "We've been here for 36 years. We have no mortgate. So, we're going to survive it."
He and other surviving dealerships were offered new agreements covering changes from the bankruptcy and reorganization of GM, which expects to emerge from bankruptcy within three months.
"My desk is covered with paperwork," King said. And that's a good thing because it means: "We're going to be here."
