By Jason Michael White, Daily Journal of Johnson County staff writer
A Greenwood car dealership owner intends to stay in business and retain all his employees after his franchise agreement with General Motors expires in October 2010.
During the past 20 years, Reeves Buick Pontiac has grown into one of the leading GM dealers in central Indiana, owner Bill Reeves said.
So when the dealership received notice that GM won't renew its franchise agreement, Reeves was shocked.
"It makes no sense to me," he said. "We don't cost General Motors any money. We pay for their signs (and) their special tools. We buy their cars; we even buy their brochures."
The announcement comes as General Motors has emerged from bankruptcy protection, which includes a plan to cut labor cuts, close plants, reduce debt and allow franchise agreements with about 1,100 U.S. dealerships to expire.
GM told dealership owners they had to meet criteria to receive franchise renewals: be profitable, be in a prime location and have a good customer-satisfaction record.
Reeves thought he was in good shape.
Since he purchased the dealership in 1991, Reeves Buick Pontiac has become one of the most profitable dealerships in the Indianapolis area, he said.
His customer-satisfaction numbers are among the highest in the local market, he said. And the dealership is along a well-traveled area of U.S. 31.
Those were among the points Reeves included in an appeal to GM, sent via e-mail as the company required, after he received the franchise expiration notice June 1.
GM denied his appeal in a June 11 e-mail, he said. The message had no signature.
A General Motors spokesperson wasn't available for comment Monday.
Reeves is set to lose the Pontiac line as well because those vehicles are going out of production. His GM Buick franchise will be transferred to Ray Skillman GMC, also on U.S. 31 on the southside.
Reeves intends to keep his dealership open and keep his 65 employees on the payroll, he said.
The dealership will continue to sell new General Motors vehicles until October 2010. Reeves is forming a business plan for after that, he said.
"We're going to be here to take care of the customers we have," he said. "We're looking at different options."
The dealership can continue to sell used cars, Reeves said. It currently sells about 70 to 80 used cars a month.
The dealership also will continue to service all car models, he said.
"We're not going anywhere," he said.