For the past year, the dealership has shifted to sell used vehicles, service other brands in addition to Chevrolet and broker sales of other brands, Larkin said. As part of the changes, the business name will officially become Rose Automotive in the next month. There has been a transition to use the new name as the year has progressed.
“We are going to be here and we are going to be in business,” Larkin said.
The office of U.S. House Minority Leader John Boehner, R-West Chester Twp., congratulated Rose Chevrolet in June for being able to stay open, but Larkin said at the time he hadn’t heard directly from GM.
The dealership did receive an offer before the arbitration ruling June 30 to be reinstated for 15 months, but when the ruling was unfavorable, the offer was off the table.
He also received an offer for a buyout, but said it was for less than the dealership was worth.
“Senior officials at GM called Congressman Boehner in June to inform him that Rose Chevrolet would be allowed to remain open,” wrote Cory Fritz, a spokesman for Boehner’s office, in a statement. “The situation has done little to change Congressman Boehner’s belief that the federal government should not be in the business of running American auto companies.”
Close to 2,000 GM dealers were told last year their term franchise agreements wouldn’t be renewed when they expire Oct. 31, said Ryndee Carney, a GM spokeswoman.
On Sept. 23, an appeal was filed based on mistakes in the ruling and on how the hearing was consolidated with other dealers.
Larkin added he wants to be reinstated for his customers’ and employees’ sakes.
Sales volume is down this year, but the business is profitable, he added. In addition to the appeal, Larkin said the dealership, which employs 42 people, is looking at other franchises and other forms of business.
Rose expands used car business, vehicle service
Rose Chevrolet is one of several hundred Chevy, Buick, Cadillac and GMC auto dealerships to lose its arbitration seeking reinstatement as a dealer for General Motors Co. brands.
Close to 2,000 GM dealers were told last year their term franchise agreements wouldn’t be renewed when they expire this Oct. 31, said Ryndee Carney, a GM spokeswoman. Other GM brands such as Pontiac, Hummer, Saab and Saturn folded when the automaker filed for bankruptcy in June 2009.
The size of the dealer network was reduced as part of the bankruptcy restructuring, Carney said. GM had too many dealers for new vehicles sold, and compared to competitors. Carney said GM has gone from about a 50 percent market share in the 1960s to about a 20 percent share today.
More than 1,000 dealers acted on a law passed in December by U.S. Congress to allow dealers to file for arbitration, Carney added.
By the time all cases were heard in July, about 700 dealers were offered reinstatement and more than 20 dealers had favorable rulings to be reinstated, she said.
Resolutions were reached with about 400 dealers, most of which ended up not being reinstated, including Rose Chevrolet.
All year, the Hamilton family dealership hasn’t been able to purchase new Chevy vehicles direct from the manufacturer, said Ed Larkin, general manager of Rose Chevrolet. New cars have been purchased from other dealers, Larkin said.
However, the dealership remains open and profitable.
The dealership has shifted to sell used vehicles, service other brands in addition to Chevy, and broker sales of other brands, Larkin said. As part of the changes, the business name will officially become Rose Automotive.
He also said diagnostic equipment for other vehicle makes and models was purchased this year. For example, Honda, Ford and Toyota cars can be brokered or serviced.
While new cars accounted for 55 percent of sales in the past, used cars have accounted for 85 percent of sales this year, Larkin said. More than 500 cars have been sold to date in 2010 — 444 used, 98 new and about 20 brokered, he said.
“I want our customers to know we can offer more services than we did in the past,” Larkin said.
Contact this reporter at (513) 705-2551 or clevingston@coxohio.com.
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