Employees at Greg Gardner Motors were spared in the massive GM dealership shutdowns last week. The local GM dealership won't be shut down as part of the automaker's restructuring.
"As it turns out the restructuring did not affect Greg Gardner Motors. We were advised that we are one of the dealerships being retained as GM goes forward," Gardner said. "We are pleased to hear that both personally and for the community."
The business handles several makes of vehicles under the GM (Chevrolet, Pontiac and Buick) lines. The corporate announcement that dealership cuts were coming for Chrysler and GM put the Squamish office on high alert.
"We weren't given a direct reason as to why we were spared, but GM did talk in general terms about factors that went into the decision to retain or terminate dealerships," Gardner said.
According to Gardner, those factors included volume of vehicles sold, size of and future potential of the market, customer satisfaction and profitability.
"It's my understanding that a majority of the reductions happened in the metro areas where GM came to the conclusion that less dealerships were necessary to service the population," Gardner said.
Up to 310 GM dealerships across Canada - and up to half of the dealerships in B.C. - are anticipated to close by October 2010 as part of the company's restructuring. GM Canada has decided not to release either the names or numbers of dealerships closing in B.C.
"From my point of view it is very good news for Squamish, myself and my employees. The automotive industry in Squamish represents $40 million per year for our local economy," Gardner said.
Greg Gardner Motors currently employs over 30 people who faced unemployment if the dealership was terminated.
"I understand and support the decisions being made by GM to ensure we have a strong domestic automotive industry in Canada. These are necessary steps and the end result will be a stronger company and industry," Gardner said.
Gardner said business will continue as usual. He has not heard specifically which dealerships have been cut at this point. Gardner said with fewer dealers left there will be a larger volume of cars per dealer.
Squamish's other car dealership, Sea to Sky Motors, is also safe. The Ford Motor Company won't be closing legions of dealerships like General Motors or Chrysler. Enzo Milia, sales manager for Sea to Sky Motors said Ford has a strong dealer network.
"The closing of GM dealerships is defiantly a sign of the industry and we are very aware of what is going on. But I do think the industry will rebound," Milia said.
In tough economic times, Milia said every business must look at themselves first and make sure they are running well.
"I think Ford is ahead of the game and we need to make sure we are running a good clean business," Milia said.
