Dealers: GM bankruptcy ‘uncharted territory’

Baton Rouge dealerships ran a gamut of emotions today as General Motors filed for Chapter 11 bankruptcy protection as part of a government-backed plan that will give up to $30 billion in funds to the struggling automaker. “I really don’t know how it’s going to affect us,” says Ladd Spring, general manager at Capitol Buick Pontiac GMC. “I’ve never been here, never in my lifetime. We’re in uncharted territory.” Spring says new and used vehicle sales at the dealership have been good, although city-parish vehicle tax revenues showed a 19.4% decrease in the first three months of 2009, compared with the first quarter of 2008. Tim Savage, sales manager for Gerry Lane Chevrolet, says the dealership sold 30 cars this weekend, the highest number of sales in months. “I think it’s only going to get better from here,” Savage says. “GM is going to trim some of the smaller dealerships, get more value for their product and better deliver cars to the American public while still keeping the same services.” As part of the agreement, GM will downsize its brands to include Chevrolet, Cadillac, GMC and Buick. Its Pontiac, Saturn, Hummer and Saab operations will be either sold or closed. GM plans to close 11 factories and idle three other facilities as a result of the product cuts. The Hummer plant in Shreveport was not among the plants targeted for closure. Savage says Gerry Lane, which generally sells around 150 vehicles a month, has a five- to six-month supply of new vehicles.—Emma James