Some GM dealers get good news

The scene this week at Reganis Auto Center in Scottsbluff differed starkly from last spring, when the dealership first heard that General Motors was terminating its franchise agreement.

A Monday morning phone call informed the dealership that GM would reinstate it, erasing uncertainty about its future.

“We probably would have cracked the champagne if it wasn't 8 o'clock in the morning,” said sales manager Dave McClellan. “There was a lot of high fives and a lot of smiles and a lot of laughter. It was great news.”

A number of Nebraska auto dealers are being notified this week that GM is reinstating them, but it's unclear how many because the company isn't releasing a list or even saying how many in each state are affected.

Two western Iowa dealers contacted declined to comment.

Loy Todd, president of the Nebraska New Car & Truck Dealers Association, said he knows of at least two Cadillac dealerships and one multibrand GM dealership that were reinstated, but he declined to name them.

GM announced Friday that it planned to reinstate 661 of the roughly 1,100 dealers it intended to drop from its sales network as it worked its way through bankruptcy.

Officials with Meyer Automotive in Seward, Midway Chevrolet in Kearney and Advantage Chevrolet in Aurora say their dealerships were being reinstated, in addition to Scottsbluff's Reganis Auto Center.

Al Rajaee, owner of Watson Motors in Plainview, and Harold Janke, owner of Janke Auto Co. in Pender, said they still were awaiting word.

“We're kind of on pins and needles,” said Rajaee, who also owns and operates Cornhusker Auto in Norfolk.
Reganis Auto Center had been in limbo after learning its franchise agreement wouldn't be renewed when it expires in October 2010, said McClellan.

Because it sells vehicles by other automakers, Reganis planned to continue operating, but the impending loss of GM brands pointed to layoffs — possibly 10 of its 50 employees, he said.

Aurora's Advantage Chevrolet was in the midst of gathering support from local businesses and others for an arbitration hearing when it received news of GM's reversal. Bret Schwarz, a general manager and partner, said he was surprised but understood why GM might have decided to forgo about 1,000 arbitration hearings.

Terminated dealerships have said GM treated them unfairly, and last month Congress passed a law requiring an appeals process for the dealers. GM's decision to keep the additional showrooms open effectively shrinks the number of appeals it has to contend with. Arbitration hearings for the dealers who didn't get offers but still want to stay with GM will begin later this month.

Brian Hamilton, owner of Midway Chevrolet Cadillac Buick in Kearney, said his business had been “getting by” since receiving termination notices last year. Now reinstated dealers like his will be able to order new vehicles from GM, he said.

This report includes material from the Associated Press, Grand Island Independent and Norfolk Daily News.

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