The merger dovetails with what has happened over the past two years in a challenged industry, with General Motors moving to close dealerships or encouraging some to merge with others who are nearby geographically.
“I think over the long term, you’ll see more of this,” said Tim White, president of White Family Companies Inc., which owns White-Allen.
White declined to discuss terms of the merger. But he said the merger brings together Dayton’s second- and third-oldest Chevrolet dealers — White-Allen and Frank Z, respectively. And he acknowledged that it positions White-Allen as one of the largest Chevrolet dealerships in the region. A joint statement from both dealerships said the merger doubles White-Allen’s inventory.
The merger, which will be effective May 1, closes Frank Z, which opened as Ray Bryant Chevrolet decades ago. Given that White-Allen and Frank Z were so close within Dayton city limits, the relationship over time was competitive, White said.
Said White, “I would say they were probably our main competitor.”
Pete Zorniger, Frank Z chief executive, could not be reached for immediate comment Thursday afternoon. But recently, he told the Dayton Daily News that he feels there are too many GM dealerships in the region.
“Dayton can’t support all of those GM stores,” Zorniger told the newspaper last month. “The days of selling what we used to sell are gone. And those days aren’t coming back.”
White said he expects to bring on “half to two-thirds” of Frank Z’s current employees. He did not know how many employees Frank Z has today, but he said all of them will be given applications and will go through a “pre-employment” process. The White-Allen Chevrolet store has about 55 employees today.
“White-Allen Chevrolet has already invested significant resources to ensure a seamless transition, including extensive planning of the logistics involved in the consolidation of records and inventory and preparations for the addition of sales and service staff at its Dayton offices,” the dealerships’ statement said.
All Frank Z service and bodywork customers with open accounts will have their work completed at the Frank Z location at 1620 Brown St. before the dealerships merge, the businesses said. New customers are asked to go to White-Allen’s North Main location.
Contact this reporter at (937) 225-2390 or tgnau@DaytonDailyNews.com.
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