LOCAL GM DEALER GOING STRONG DESPITE BANKRUPTCY

By Amy Riggin/OF THE COMMERCIAL STAFF

Alan George, general manager of Landers Brothers Buick Pontiac GMC on East Harding Avenue, said the store plans on being in business for years to come even as General Motors Corp. filed for bankruptcy protection Monday.

“We received a letter today confirming that we were going to remain in business and part of the new GM,” George said Tuesday. “I think, if anything, the bankruptcy will be positive.”

Detroit-based GM filed for Chapter 11 reorganization for its U.S. operations and said it hopes to emerge in 60 to 90 days with fewer employees, factories and dealers. The company says it will close or idle 12 plants.

“Everyone knew they were going to file bankruptcy,” George said. “If you didn’t you’d have to have your head in the sand.”

George owned the local dealership for 10 years before selling it in 2007 to Landers Brothers.

“We’re still going to be a global company, but how we’re going to operate as a global company will change,” he said, especially with partnerships with other companies.

In May, George said, the dealership actually exceeded new car sales goals set by the manufacturer by 38 percent.

He said the adjacent Landers Brothers Chrysler Dodge Jeep, which he also manages, exceeded sales goals as well.

“As far as the dealerships that will still be here, they’ll do nothing but get better,” George said.

He attributed much of the dealerships’ continued success to Landers being “a very strong company.”

“They know how to do business the right way,” George said.

And for those who can afford it, there are deals galore.

“If you compare the current incentives to this time last year, a new car is a better buy than it’s probably been in my car career and I’ve been in it since the 80s,” George said.

He added that all new and existing GM warranties are “government-backed.”

GM now plans to focus on four core brands — Chevrolet, Buick, Cadillac and GMC — and get rid of the Pontiac, Saturn, Hummer and Saab lines.

The company has received $19.4 billion in U.S. government loans and will get a total of $50 billion in aid.

“Obviously the tighter the ship is run at General Motors, if they can get their debt down, the more money they’re going to have to put into product development,” George said. “They’ll expand their business. I think they’re going to be a really strong company.”

Company CFO Ray Young said the new GM will be a leaner company with fewer executives and employees, and an ability to make faster decisions.

There are 86 GM dealers in Arkansas, according to the Arkansas Automobile Dealers Association. Director Dennis Jungmeyer predicted in Mid-May — when GM began notifying dealerships that it would terminate franchise agreements — that an upcoming bankruptcy would affect 10 to 15 dealers in the state. At least one dealer, Keeton Motor Co. Inc. in Fordyce, was notified May 15 that GM would terminate its agreement.

Chrysler LLC filed for bankruptcy April 30 and eight Arkansas Chrysler dealers were notified that their franchise agreements would not be renewed, none of which were in Southeast Arkansas.

GM’s bankruptcy filing came a day after a judge gave Chrysler approval to sell most of its assets to Italy’s Fiat. That moved Chrysler closer to exiting from court protection, possibly later this week.

Top executives from GM and Chrysler will appear before a Senate committee today to address concerns about dealership closings as the two automakers work through government-led bankruptcies.

Of Detroit’s “Big Three” automakers, only Ford Motor Corp. has avoided bankruptcy restructuring and has not taken federal bailout money.

The Associated Press contributed to this report.