Chrysler Cans 789 Dealers
Pair of Weirton sales lots are on the cut listBy CASEY JUNKINS
Article Photos
WEIRTON - When David Guglielmo's family began selling Chrysler vehicles on Pennsylvania Avenue nearly 60 years ago, the American auto industry was thriving in much the same way as the former Weirton Steel Corp.
Thursday, Guglielmo, vice president of New City Auto Sales Inc., learned that his Dodge and Jeep franchises may be taken from him as part of Chrysler's bankruptcy filing that could result in 789 company dealerships across the nation losing their franchises on June 9.
"If we lose the Dodge and Jeep franchises, we will stay in business by doubling our used car inventory. ... We will do everything we possibly can to keep the business going and keep all of our employees," Guglielmo said.
Also on the list to lose its Chrysler badge is Pavlik Chevrolet Chrysler on Main Street.
Guglielmo said the Weirton dealerships were targeted because of lagging sales that resulted from poor market conditions.
"With the loss of all the steel jobs in this area, the economy has been especially bad here for some time. ... These things are happening by no fault of the dealers," he said.
But Chrysler officials said in the company's filing that sales are too low at many of the dealerships. Half its dealers account for 90 percent of its sales, and the company is trying to cut poor performers that compete for the same customers.
"This is a difficult day for us and not a day anybody can be prepared for," Chrysler Vice Chairman Jim Press said Thursday.
Guglielmo said he will try to appeal Chrysler's decision to take his franchises, but he is not optimistic about being removed from the list of dealerships to be closed by June 9.
"One agreement Chrysler made with the Obama administration was for the company to eliminate a certain number of dealerships that have seen a decline in sales. ... The Obama administration is forcing this onto Chrysler," he said.
Guglielmo said his dealership sold anywhere between 200 and 300 new vehicles every year in the 1970s and 1980s, when the local steel industry was strong.
"Now, we have been selling anywhere from 75 to 100 new vehicles for the past several years," he said, again citing the difficult economic environment.
With the potential loss of these dealerships, Guglielmo said those with brand-specific warranties on their vehicles may have to drive to Wheeling or Pittsburgh to receive service.
"If we lose our franchises, people will have to drive 30 to 40 miles out of the way to get their vehicles serviced," he said.
But Guglielmo said he will soldier on for as long as he can, even if he loses Chrysler's support.
"It will be 'business as usual,' with or without Chrysler," Guglielmo emphasized.
Dale Gaston, vice president of Pavlik Chevrolet Chrysler, also stressed that his dealership is not closing.
"We have a Chevrolet dealership as well - we will just no longer be able to offer the Chrysler vehicles," he said.
But with General Motors expected to soon announce the closing of about 1,100 dealerships, Gaston knows his company will have to perform as best it can in the interim.
"Obviously, we are very disappointed to lose any of our brands, but we will just keep going with Chevrolet," he added.
|
robojock
|
|
|---|---|
|
05-17-09 12:54 AM
|
Here is a great thought. I payed 14000 in taxes last year. give me back the money stolen to pay off the union buddies of the current admin. Pay us back for the bailout that didn't work.
|
|
EllisWyatt
|
|
|
05-16-09 5:29 PM
|
Apparently, Obama's Ministry of Economics has joined his Ministry of Truth to control our lives. Taxpayers shelled out $15 billion to buy 89% of GM stock. The market values that stock at about $979 million. As if that isn't bad enough, GM has a net NEGATIVE equity of $50 billion. So, Obama gave $15 billion in cash, and assumed $50 billion in liabilities, on behalf of taxpayers, for something that has a stock market value of $979 million. This is why you should not elect an economic illiterate to the highest office in the land.
|
|
PCGS70
|
|
|
05-15-09 10:05 PM
|
So this is what we get for all the billions of dollars Obama handed out to the auto industry?
|
|
kaiserhund
|
|
|
05-15-09 9:10 PM
|
When no one has a decent paying job, no one can afford to buy new cars. Welcome to the third word way of life my friends.
|
|
Graysongs
|
|
|
05-15-09 2:54 PM
|
This and the GM dealership closings are a huge step toward a centrally-controlled "command economy". Many will try to paint this as some normal consequence of "capitalism and business cycles", but it's not even close. The remaining dealers will soon likely find government-mandated quotas of "green cars" they will be required to sell or lose their dealership. Prices on everything will be strictly controlled and will have the effect of "rationing" the citizens' ability to make purchases. Government will force manufacturers to build crap, dealers to sell crap and citizens to buy crap - and smile about it so as not to be labelled a "domestic terrorist".
|
|
robojock
|
|
|
05-15-09 2:12 PM
|
The sad part is that we do have enemies in this situation. Some politicians have been so short sighted,stupid, and greedy I am often floored. Such people pour money into million dollar river projects, instead of giving that cash as a tax break to a company looking to invest in the area, but hey, they can put their name on an intermodal center that only hobos use to get out of the rain. The same politicians then seek to increase taxes on businesses, knowing that, in the current climate, such businesses can say "screw you" and relocate to India. Case in point, new environmental regulations which will increase the average electric bill by 20% per year. Is this logical when people are floundering as it is? Stupid! When will people realize it is about power to these monarchal thugs?
|
|
formerohvalleyresident
|
|
|
05-15-09 11:22 AM
|
This Obamanation has inflicted more economic damage on the country in 100 days than the Germans and Japanese did in WWII or the Muslim terrorists on 9/11. The “bullying” of the secured investors in the Chrysler situation violates the Article V of the Contracts clause of the Constitution. From the Wall Street Journal: The Obama administration's behavior in the Chrysler bankruptcy is a profound challenge to the rule of law. Secured creditors -- entitled to first priority payment under the "absolute priority rule" -- have been browbeaten by an American president into accepting only 30 cents on the dollar of their claims. Meanwhile, the United Auto Workers union, holding junior creditor claims, will get about 50 cents on the dollar.
|
|
popeye
|
|
|
05-15-09 10:33 AM
|
reality- When people lose everything, they have nothing to lose. We have become a nation of entitlements, and when people think they are entitled to your personal belongings, the SHTF.
|
|
popeye
|
|
|
05-15-09 10:26 AM
|
reality- Right you are. Wait until Obama raises taxes on everyone. If you rely on msm to get your daily dose of lies, you are in deep trouble. Our country has been so dumbed down it is pathetic. The Consitution should be mandatory reading, starting at preschool. But hey, keep watching American Idol and hope for the best.
|
|
TheRealityPolice
|
|
|
05-15-09 10:16 AM
|
popeye - yes and the subprime housing mess which was created by not only Wall Street but also Bawney Fwank will be dwarfed by the commercial real estate bubble when it bursts. It is only logical: small businesses are cutting back and closing; they close their businesses or get put into foreclosure...on and on....what will happen to all of these dealerships' property? Sure - some will get to move into the Used car market - but how many of those can we have? Of course with more people losing jobs, etc. they may also be losing their cars to repo, so more may be showing up at the auto auctions. (I need to call my buddy who goes to ADESA and see how the auctions have been.) People - all you have to do is watch what is happening around you and figure it all out. The answers do not come from the media, radio, politicians, news etc. - if you have any sense at all, you can SEE IT FOR YOURSELF.
|
|
shastacooper
|
|
|
05-15-09 9:51 AM
|
barron has it all figured out. He is not only THE coward of Ohio County, now we could annoint him the VILLAGE IDIOT. Y'all would get a kick knowing who he is. We will reveal soon.
|
|
PCGS70
|
|
|
05-15-09 9:42 AM
|
Change, Hope. Rope-A-Dope.
|
|
popeye
|
|
|
05-15-09 8:46 AM
|
Wait until the Bailout Bubble bursts. There will be chaos...be prepared.
|
|
popeye
|
|
|
05-15-09 8:44 AM
|
I thought the Messiah would prevent things like this.
|
|
TruthSeeker
|
|
|
05-15-09 8:29 AM
|
*sigh*
|
|
formerohvalleyresident
|
|
|
05-15-09 7:09 AM
|
The press is reporting that 40,000 people will lose their jobs just from the closing of these Chrysler dealerships alone. Taxpayer debt goes up about a trillion dollars this year and Fiat of ITALY gets control of Chrysler without spending a dime. Maybe the new car company will be caller Fysler?! They spent about $9 billion in bailout on Chrysler to buy a company with a book value of $900 million and to keep them out of BK … worked really well, eh? Another $18 billion on GM and they will then go C-11 any day and do the same thing on a larger scale. Then we will have Government Motors (GM) and Fysler both competing with a dozen cars each, getting 40 mpg and selling for $14,000 with a profit margin of 50 cents. When the economy recovers, Ford will be selling F-350’s with real profit! In the meantime those stimulus dollars just have the Ohio Valley booming, right? Can’t wait until they “fix” health care next… The press should play a laugh track every time Obama speaks!
|
|
TheRealityPolice
|
|
|
05-15-09 6:52 AM
|
joe - wait until the Universal Health Care is implemented - I heard a QUOTE from a committee member 2 days ago (committee on the health care plan) that said, "Basically older people cost MORE - they use too many resources. Those costs will need to be contained." (Paraphrasing, but that is the gist.) MEANING: If you are 70 and need, oh say dialysis so you can live another 5 years? SORRY. You are not going to get it. When the Govt. gets to tell you what treatments you can and cannot have, all I can say is everyone better get healthy ASAP so you don't need a doctor very much. I can find the exact quote, etc. if you want.
|
|
TheRealityPolice
|
|
|
05-15-09 6:48 AM
|
zip - You could not have said it any better! Let's Nationalize the auto companies and give them to the UAW - I head that 55% of the companies will be given to the UAW by the President? I wonder how long until THEY need another bailout??? Doubt the UAW can run a lemonade stand, let alone an auto company. Ahhh folks, this is just the beginning...hold on to yer butts! You ain't seen nothing yet.
|
|
joesr66
|
|
|
05-15-09 6:46 AM
|
Well Mister I am over 65 and I worked all my life and paid my taxes and done my part and it time for me to set back and collect what ia due to me and no one handed me nothing and now it your turn and you seem like you don't like it. So*****it up and take your turn at the helm cause I done my part for the last 50 years.
|
|
zip064
|
|
|
05-15-09 5:13 AM
|
UAW supported Obama, Obama takes over Chrysler, Chrysler fails, 27,000 jobs affected. . . . hope the union got their "change".
|