Tuesday, June 9, 2009

More on auto meltdown's impact on Mesa

Sometimes when you read about these major auto corporations, it is easy to feel detached. However, when you start to read the local impact that these major changes to the auto industry will have on our economy, things come into a little bit more focus.

First, we have an update on the Darner dealership who will soon lose their ability to sell new Chryslers. They are deeply discounting their cars to get them out before the deal goes through and they lose all warranty and other backing. The article makes it almost feel like an obituary, but there is a ray of hope in the fact that they are changing their signs tomorrow to Darner Auto Center, which on the surface at least shows they are willing to attempt to stay in business. Maybe they aren't changing their tune afterall.

The other interesting story is from the owner of Mesa Pontiac Buick GMC (formerly Coury), who is discussing how GM's bankruptcy is impacting his business. The good news is that he is not one of the ones on the cut list. He sticks to the talking points for the most part, trying to assure the consumers that everything is going to be okay, and that GM is really more successful than the bankruptcy lets on. At this point, he talked a lot about the "partnership" with GM moving forward, but the real question is what will the new GM look like?

When they split the company in two, will the dealers get to pick which brands they sell? It sounds like Saturn is going to be sold off to Penske. Do the current Saturn dealers go along with that or do they have the option of participating in the New GM? Will Pontiac stick around?

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