General Motors bankruptcy affects local dealers

By Carrie A. Mizell

Two local Chevrolet dealers have received letters from General Motors saying their franchise agreements are being renewed, while a third dealer was released after the auto manufacturer filed bankruptcy.
Scoggins Chevrolet Buick in Chiefland and Dixie Chevrolet in Cross City both received letters earlier this month from General Motors identifying them as key dealers and saying their franchise agreements would be renewed.
Florida’s oldest Chevrolet dealership, Jim Douglas Chevrolet in High Springs, received a letter from GM in late May releasing the 83-year-old dealership.
Jim Douglas Chevrolet is one of 2,600 dealerships nationwide expected to receive a non-renewal letter from GM by the end of 2010. In the future, Jim Douglas Chevrolet will continue to offer used cars, auto parts and repair services.
Victor Scoggins of Scoggins Chevrolet said on Friday that the public’s perception of the turmoil within GM hurts car makers as a whole, not just dealers.
Scoggins explained that his family’s 35-year-old dealership is now looking to the future and a stronger GM.
The letter that GM sent to both Scoggins Chevrolet Buick and Dixie Chevrolet indicated that the dealerships had been identified by GM as two of its key dealers for Chevrolet brands, and Scoggins was also listed as a key dealer for Buick brands.
GM’s letter to the dealers stated, “Part of GM’s restructuring efforts include plans for a dealer network consisting of fewer, stronger and more properly located dealers which we hope will allow for higher through-put and enhanced business potential. Your selection as a dealer for the Chevrolet, Buick brands shows the confidence we have in your dealership being part of the new GM.”
According to Jeff Mosley, general manager of Dixie Chevrolet, the dealership made it through the recent GM cuts as it has survived transitions in the past including the change from Griner’s Chevrolet in Cross City, which opened in 1948, to Dixie Chevrolet five years ago.

Despite the economy, Norman Scoggins, owner of Scoggins Chevrolet says business is picking up