Caddy Dealers Get Reprieve from GM

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Updated: 3/09/2010 10:03 pm
Stadium GM in Salem was one of a number of dealers around the Valley, and the country, that had been bracing for battle over the future of their franchises.

While the automaker was planning to end the franchise agreements with hundreds of stand-alone dealerships -- like the Chevy store in rural Columbiana County later this year, it was also planning to revamp its strategy for selling the upscale Cadillac brand.

Mike Hudock, Manager of Stadium GM said the automaker "wanted to keep Cadillac in metro markets only, and they kinda felt, from what we believe, Youngstown, the Valley wasn't a metro market -- when in fact it is."

From what we've learned, the plan would have affected Stadium, as well as three other dealerships in the Mahoning and Shenango Valleys, forcing customers to Cleveland, Akron or Pittsburgh to buy their cars. But Congress stepped in and allowed arbitration for dealers who felt they'd been mistreated.

Congressman Steve LaTourette, who wrote the dealer legislation last fall, said the closings would have created a terrible ripple effect for local economies.

For Stadium the reprieve means not only will the dealership not have to cut any of its sixty or so employees, it also means the business will now move ahead with plans to build a brand new showroom in the months ahead.

In the meantime, the Chevy store in North Georgetown, which is southwest of Salem, has had no reprieve.

We spoke with the owner there Tuesday afternoon, and he's pretty much cut his ties with GM and is just selling and servicing used cars -- and he said he's happier doing it.
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Here are the most recent story comments.View All

justsayin - 3/10/2010 2:27 PM
Start practicing with your chopsticks. Communism, here we come!

db2sub1 - 3/10/2010 7:34 AM
In a free country like America, how does the government close a privately owned legal business? ANY PRIVATELY OWNED LEGAL BUSINESS??? More Obama bullsh*t??

daze gone by - 3/9/2010 11:01 PM
Cadillac dealerships that are profitable need to stay where they are, just as they are. The last thing GM can afford is to upset its customer base and spend money on new less convenient and more expensive showrooms in major markets. Let the independent businessman/businesswoman do what they do best and stop screwing over the good dealers! Corporate America is way out of touch & out of control.
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