J&J closes new car dealership
By PAUL GIANNAMORE, Business editorSTEUBENVILLE - Questions about two area GM dealerships during the past several days received some answers Friday.
J & J Chevrolet-Buick-Ford on Franklin Street in Toronto closed its doors at the end of the day Friday, leaving Toronto without a new car dealer for the first time in generations.
Adam Scurti, a local attorney, has been an investor in the dealership since it was formed about 18 years ago. Scurti said he was answering questions as a spokesman for the dealer's shareholders.
"The combination of the national economy, and certainly the local economy, and the financial difficulties reportedly being experienced by General Motors have caused the closure of J&J," he said.
Scurti said the Ford portion of the dealership was sold to an undisclosed Ford dealer.
Meanwhile, Joe Staffilino Sr. said Staffilino Chevrolet-Cadillac remains a solid dealership.
"We're still open on Sunset Boulevard," he said. "We're still a viable Chevrolet-Cadillac dealer. Our Martins Ferry store is still open for business. We still have used cars on Sunset Boulevard, and new cars are available."
Staffilino said four employees were laid off this week, which apparently sparked rumors around the community that the Sunset Boulevard dealership had closed.
"We're still there. We're still open, and open two nights a week, as always," he said.
Scurti said GMAC made changes to the credit plan that allowed the dealer to keep cars on the lot and in the showroom.
He said instead of terms that allowed for set fees to be paid on a vehicle that had been on the lot after 30 days, GMAC had begun requiring a 10 percent payment per month from the time a new vehicle arrived on the lot. Thus, a $30,000 car would cost $3,000 per month to keep on the lot.
"Multiply that by just 10 vehicles, do the math," Scurti said. "With the valley in the distressed condition it is in, people are buying used cars if any cars at all, and that means the floor-planned cars continue to sit on the dealership lots."
Scurti said the employees were told Friday, with about 21 workers losing their jobs.
J&J plans to keep its repair and body shop open to the public.
"We're not turning out the lights and locking the door, but we're not selling new cars," Scurti said. "There is a possibility that a used-car operation may be brought onto the premises."
Still, Scurti said, it's a rough choice.
"It's inflicting economic harm on a bunch of people, and I don't feel good about that," he said.
Terry Rhadigan, Chevrolet's director of communications, said the division has no official word about the closure of either store.
"We're hearing the same kinds of things you're hearing," he said Friday afternoon.
As for Scurti's statement about the GMAC credit arrangement with J&J, Rhadigan said, "We have a policy not to talk about the individual financial arrangements between ourselves and the dealers."
(Giannamore can be contacted at pgiannamore@heraldstaronline.com.)
|
carolinabill
|
|
|---|---|
|
10-25-08 5:28 PM
|
What a shame!The loss of any small town business hurts a community.Good luck finding another job.
|