The Times West Virginian

Local News

May 15, 2009

Urse to remain Chrysler dealership

Multiple-franchise dealers seem to take big hits in reduction

By Jessica Legge

FAIRMONT — In a United Parcel Service letter received Thursday, John Howard Motors in Morgantown found out that it would no longer be a Chrysler dealer, co-owner Bob Meredith said.

Chrysler LLC filed a motion with the U.S. Bankruptcy Court in New York and announced plans to drop 789 of its 3,200 dealerships in the country by June 9 in order to reduce its dealer network. Out of the 24 Chrysler dealerships in West Virginia, 17 were identified in the filing.

After learning the bad news, Meredith said his feelings were mixed.

“It’s disappointing, but not devastating,” he said.

“We knew it was possible, but (it was) really out of the blue. I guess we had a feeling.”

After thinking about the change all day, Meredith said it seemed that the multiple-franchise dealers took the hit. In North Central West Virginia, John Howard Motors and Harry Green Chevrolet Jeep Nissan in Clarksburg, which are both multiple-franchise dealers, were the only ones affected, he said.

Meredith, who has been an owner since 1998, said John Howard Motors is obviously going to have to jump over some hurdles now. But he believes the dealership is going to be fine because Chrysler is less than 10 percent of its business.

“We’re going to survive,” Meredith said.

He said John Howard Motors is also a Nissan, Subaru and Suzuki dealer and has always been a large pre-owned dealer.

Last summer, John Howard Motors was in the process of constructing a brand new building for Chrysler Dodge. But because Chrysler LLC was facing troubles at that time, the dealership decided to make the building a new facility for Nissan instead, Meredith said.

“It’s a shame that it happened,” he said of losing Chrysler.

At 10 a.m. Thursday, Urse Dodge Chrysler Jeep in White Hall was informed via UPS overnight package that it would remain a Chrysler dealer.

Doug Urse, general manager, said Chrysler LLC told the dealerships two or three days ago to expect letters on Thursday.

“Chrysler had kept us very informed of what was going on throughout this entire process, so we knew it was coming,” he said.

“We’ve been very lucky to be very successful in our marketplace due to the local customers and really Clarksburg and Morgantown customers and from everywhere,” Urse said, “so we kind of had a good feeling going into it.”

While Chrysler’s elimination of some U.S. dealerships may be the best thing for the corporation, it’s a bad time right now, Urse said.

“Obviously, the downside is there’s going to be a lot of our good friends that go out of business,” he said. “I do feel that it’s going to be a good thing, but unfortunately it’s at the cost of some others that ended up losing their dealerships.”

Country Club Chrysler Dodge Sprinter in Clarksburg and Waterfront Jeep in Morgantown are other dealerships in the area that won’t be affected.

In addition to John Howard Motors and Harry Green Chevrolet Inc., Chrysler plans to get rid of the following West Virginia dealerships: Bill Spurlock Dodge Inc. in Huntington, Logan Chrysler Jeep Dodge in Logan, Crown Dodge Inc. in Nitro, Earehart Chrysler Inc. in Beckley, Joe Holland Chrysler in South Charleston, Kincheloe Motors Inc. and Wharton Jeep in Parkersburg, Lewis Jeep in Oak Hill, New City Auto Sales Inc. and Pavlick Motor Cars Inc. in Weirton, Paul’s Auto Sales in Rainelle, Spencer Auto Group LLC in Spencer, T&T; Jeep in Bluefield, The Union Sales Co. in Martinsburg, and Thomassen Chrysler Dodge Jeep in Charles Town.

Dealers have the opportunity to appeal Chrysler’s motion. The decision to accept or reject the corporation’s motion will be made during a U.S. Bankruptcy Court hearing on June 3.

E-mail Jessica Legge at jlegge@timeswv.com.

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