Standing next to a classic 1962 Corvette, Mike Henneman, left, vice president of Newport-based Gold Motors, and Mike Gold, president and CEO, were all smiles Monday as they discussed the outcome of their negotiations with national automaker General Motors and Newport-based Sunwest Motors. Faced with the possibility of losing their GM franchise not long ago, the local dealership is now officially known as Gold Motors GM Superstore. (Photo by Terry Dillman)

GM gives Newport dealership ‘superstoredom’



The final piece of an arbitration and negotiation process fell into place last week, as two well-known Newport auto dealerships reached an agreement that gave both an extended warranty that kept auto-making giant General Motors from junking them.

Gold Motors and Sunwest Motors were among the 1,350 GM dealers who faced the loss of their franchises as part of GM’s federally mandated reorganization following a bankruptcy filing and government bailout. Both dealerships pursued remedies under a six-month review and arbitration process established by federal law in December 2009.

Mike Gold, president and CEO of Gold Motors, said they “finished up” a bargaining process with Sunwest last week that adds Buick and GMC to Gold’s Chevrolet and Cadillac lines. Sunwest was involved in an appeals process with GM to keep the Buick and GMC franchise in tow when the two dealers agreed on terms.

Sunwest gave up its GM affiliation to focus on Honda and Mazda, opening the door to “superstoredom” for Gold.

“It fairly compensates our organization for two valued nameplates, while allowing us to put all our people and resources behind the Honda and Mazda brands,” said Sunwest’s Mike Shulz. “It allows Gold Motors to round out its General Motors brands, and keeps both dealers in business in Newport.”

Gold agreed, noting that the transaction provides “nothing but positives” for the dealers, their staffs, and the community.

“GM really handled this the right way, and as a result, everyone comes away a winner,” he said. “They (Sunwest) stay with what they wanted to do. GM has reinstated the Chevrolet and Cadillac brands at our location, and by allowing this locally negotiated solution, we will be able to represent all four GM brands from our current facility. We are now the exclusive GM superstore for Lincoln County.”

Gold said they have always led the way with their outstanding collision center. Now the dealership is officially registered as Gold Motors GM Superstore, essentially offering one-stop shopping as an exclusive sales, service, parts and warranty provider for Chevrolet, Cadillac, Buick, and GMC on the central Oregon coast. Gold said they would give the building a facelift, and a new sign is on order to welcome the arrival of new GM vehicles to the lot.

“We are at the end of the 2010 production year, and we will be working on getting the 2011 models as soon as possible,” he noted. “This will mean more jobs and convenience of shopping and service for all of Lincoln County. This also says a lot about the determination of our people.”

Lincoln County folks played a vital part in GM’s decision to restore Gold’s franchise.



Staying alive

GM finished 2009 with about 5,700 dealers, including those - Gold and Sunwest among them - that the company wanted to “wind down.”

About 2,800 dealers were eligible to file for arbitration, including 789 Chrysler dealers forced to shut down in June 2009, and GM dealers like Gold and Sunwest, which faced losing their franchises by October 2010. Another 700 dealers were to remain with the company, but lose their ability to sell one or more of GM’s four core brands.

Under arbitration, each case was handled individually in the states and cities where the dealers were located. Hearings began in March.

Representatives from GM said cuts were vital to eliminate poor-performing dealerships and help make those that remained more profitable. Dealers countered by saying their absence would hurt sales, alienate loyal customers, and cause hardships in certain areas, especially rural areas like Lincoln County.

In making a determination, the arbitrator had to equally weigh the economic interests of the dealership (Gold), the manufacturer (GM), and Lincoln County folks who were loyal Chevrolet or Cadillac owners or potential owners. Mike Henneman, Gold Motors vice president, and Gold were confident they could show they were “viable and profitable,” and they considered input and a show of community support extremely vital.

As part of their effort to convince GM to reinstate them, Gold and Henneman asked county residents to weigh in by filling out a 12-question survey, either at the dealership or online. Gold called the response “overwhelming.”

They received nearly 1,000 responses, and nearly all wanted the franchise to stay alive. When GM representatives visited the dealership in March, Gold said they were impressed by the community support, which also featured letters of support to GM officials, and continued patronage during hard times.

In return, GM ultimately supported Gold Motors by reinstating the franchise, and the agreement with Sunwest revved up a suddenly revived economic engine.



Economic impact

Chevrolet has had a long presence in Lincoln County, beginning with F.M. Woodson’s dealership in Toledo in 1927. The franchise moved to the current location in 1964.

Gold has owned and operated the dealership profitably for the past 20-plus years.

“There is great deal at stake if we are not successful in the arbitration process,” Gold said in February, noting both direct and residual negative effects through loss of jobs, lack of another GM dealership within a reasonable distance, and the loss of the company’s community support through sponsorships, donations, and taxes.

Becoming a GM superstore means Gold Motors can put a “bad” 2008 and “worse” 2009 behind and make service, sales, parts, clerical, and management jobs available. “We will be rebuilding and hiring new team members immediately,” Gold noted. “It’s going to make this a much better year.”

Gold Motors GM Superstore is located at 1422 N. Coast Hwy. Learn more at www.goldmotors.com, or call 541-265-7731.



Terry Dillman is the assistant editor of the News-Times. Contact him at (541) 265-8571, ext 225, or terrydillman@newportnewstimes.com.