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Local Dealership Reacts To GM Bankruptcy

Local Dealer Says It's Business As Usual

POSTED: 5:40 pm PDT June 1, 2009
UPDATED: 6:13 pm PDT June 1, 2009

Roy Ray bought his Pontiac before General Motors announced they will be phasing out the brand by next year. Now with news of GM filing for bankruptcy, Ray, who has been a loyal GM customer for years, said he is confident the auto maker will come back bigger and better.

"I'm not going to worry about it that much because I understand they put in $30 billion more of our money into GM. They will make some changes, and I can hardly believe that GM will go broke," said Ray.

As General Motors focuses on restructuring strategies, Motor City Auto Center said it is business as usual for them. Jon Pitre, general manager, said commerce between the manufacturer and the dealership will not be affected.

"We're here, we're privately owned so we are not technically part of GM, we are just a franchise of GM. So what they do on their own usually has a little effect on us. Unless they chose not to pay claims which they already publicly stated this morning they will be paying all claims for warranties and incentives," said Pitre.

But if you plan on buying a new GM product, Pitre said the sooner the better because plants will be closing for nine weeks this summer to bring inventories in line with demand."

"Inventory towards the end of the year will be the biggest effect on us. So we still have a very good inventory right now but as we go through the summer that may dwindle," said Pitre.

Also part of GM's restructuring plan; Saab, Saturn, and Hummer will either be sold or simply disappear by the end of the year.

The local Saturn dealer, which is also part of the Motor City group, said it is confident that the brand will be sold and the new owners will take Saturn to the top of the import market.
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