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Prostrollo keeps GM, Chrysler franchises
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By CHUCK CLEMENT, Staff Reporter
| 06/17/2009 |
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As both General Motors and Chrysler LLC work through the bankruptcy process, it appears that the GM brand of Pontiac will go the way of Oldsmobile and Plymouth and both companies will have fewer dealership lots dotting the U.S. map.
Prostrollo Motor Co., an automobile dealership that offers GM, Chrysler and Ford products, has received word that the business is one of the fortunate U.S. new car outlets with the Madison dealership keeping its GM and Chrysler franchises.
Pat Prostrollo, the dealership's president, announced on Tuesday that Prostrollo Motor Co. was selected by both troubled car manufacturers as a key dealership moving forward with Chrysler and GM as they work to emerge from Chapter 11 bankruptcy.
According to Prostrollo, GM and Chrysler had graded their U.S. dealerships in the areas of customer satisfaction in both sales and service, adequate sales performance and proper facility assets. The carmakers decided that Prostrollo's met or exceeded the criteria for maintaining its sales and service agreements with both companies.
"They've moved ahead from the difficult positions where they once were, and we're going to move forward with them," Prostrollo said. "Our dealership has been around for 52 years and we're still going to be here in another 52 years."
In April, the heads of GM announced a revised restructuring plan that included closing 2,641 out of 6,246 dealerships (or 42 percent of the corporation's independent dealerships) by 2010. Other cuts included eliminating the Pontiac brand of automobiles and reducing its payroll to 40,000 hourly workers at 34 manufacturing plants.
GM officials were expected to inform about 1,100 dealerships on June 15 that their franchise agreements would not be renewed when they expired in October 2010.
On May 14, Chrysler LLC announced that it would revoke the franchise agreements for 789 out of the company's 3,200 dealerships. The Chrysler dealerships in South Dakota announced as part of the downsizing effort included Flandreau Motors, Biegler's in Aberdeen, Schoenhard Dodge in Huron, Palace Motors in Mitchell, Liberty Motors in Rapid City and Spearfish Motors.
Prostrollo's will retain its Chrysler, Dodge and Jeep franchises and continue selling General Motors vehicles through its Chevrolet, Buick and GMC franchises. However, the Madison dealership is affected by a couple of cutbacks associated with GM's restructuring.
"Pontiac has ceased production permanently, and Cadillac will be sold just in Sioux Falls and Rapid City to my knowledge," Prostrollo said. "Cadillac chose to continue only in larger markets where other luxury foreign brands exist."
According to Prostrollo, GM dealerships will continue selling the remaining inventory of Pontiac vehicles until Oct. 31, 2010. GM will also support the brand's maintenance with replacement automobile parts for the next eight to 10 years. Prostrollo said the Pontiac brand would most likely follow the models for the elimination of Plymouth and Oldsmobile.
For the last several years, talk in the U.S. car manufacturing sector was often centered on GM reducing its brands, probably by dropping Pontiac. Prostrollo said the sales volume for Pontiac vehicles had fallen to the point where the corporation couldn't support their production.
Prostrollo said many of the conversations that he has with customers deal with concerns about the warranties for GM and Chrysler products. He wanted to assure all customers with a Pontiac or Cadillac that the Madison dealership "will most definitely be able to take care of their vehicle service needs."
Prostrollo added that the Obama administration's automotive task force has assured car owners that the warranties for U.S. cars and trucks will continue, unaffected by economic conditions and the carmakers' status.
The Madison new car dealership has its beginnings in 1957 when Pat's father, Jerry Prostrollo, started selling Chevrolets and Oldsmobiles. In 1981, Prostrollo added more GM brands to the lot with Pontiac, Cadillac and GM trucks. Eight years later, Chrysler made an offer to the dealership to start selling Chrysler and Dodge brand automobiles.
Also in 1989, the last of the Big Three companies appeared on a Prostrollo sales lot when the dealership bought Bob Zahniser's Ford, Lincoln and Mercury dealership that operated on the west side of town.
So far during the current economic recession, Ford Motor Co. has managed to continue its operations without loans from the federal government. Prostrollo said that Ford has predicted a 2009 sales total of 10 million cars and trucks in the U.S. Ford officials expect their vehicle sales to reach 12 million during 2010.
"They're confident that they can come out of (this downturn) successfully," Prostrollo said, "and come out of these difficulties in a better position."
Prostrollo expects that the Madison dealership will continue its operations as it did in the past and doesn't foresee any layoffs in personnel. Prostrollo All-American Auto Mall employs 65 full-time and 21 part-time employees and provides an annual payroll of $3.36 million.
"This has been a stressful period for myself and the 85 full- and part-time employees here at the dealership," Prostrollo said. "We're grateful for so many loyal friends and customers who have supported us through the years, and we want everyone to know we will be here to serve their automotive needs in the future."
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©Madison Daily Leader 2009
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