Local Chrysler dealerships close as GM dealers await word

DORAL, Fla. (WSVN) -- Dozens of GM dealerships in South Florida are joining hundreds across the country anxiously waiting to find out if they'll be on the list of dealers who will be forced to close down.

Yesterday, it was Chrysler closing nearly 800 dealerships, four of them here in South Florida. Today, it's General Motors' turn, and that has Aric Gasper, the owner of the Doral Buick Pontiac GMC dealership, on edge. "It's tough," he said. "The anxiety is almost unbearable, and there's going to be a lot of lives affected by this. There's a lot of employees that are employed at GM dealerships across the country, and it's going to have an impact."

So far, his dealership has not received the letter, which Federal Express is supposed to deliver to 1100 targeted closure sites across the nation. The letters going out read in part, "The unprecedented economic conditions in the United States and in our industry have made it necessary for us to restructure our business and operations significantly."

It goes on to say, "Based on our review and current and foreseeable market conditions and your dealership's historical performance, we do not see that GM can have a productive relationship with (dealer's name) over the long term."

For the consumer, the Chrysler and GM cuts should not make much of a difference. Those with Chrysler and GM vehicles can still have their cars serviced at the surviving dealerships and warranties and leases are still valid. "As long as I can have my car serviced at any time, I'm happy," said one driver.

Chrysler has already put the brakes on hundreds of dealerships, including four in South Florida. At one West Miami-Dade Chrysler dealership closing its doors, Oren Mishael cannot help but worry about the job he has treasured for so long. "The car business teaches more than just about cars. It teaches you how to deal with people," he said.

Now his job is also teaching him that nothing in life is guaranteed. After working in the car business for nearly a decade, Thursday he walked into work at the Tamiami Chrysler-Jeep-Dodge dealership on Southwest Eighth Street, and his managers called him into a meeting. "I kind of got the vibe that this meeting was going to be a little different," Mishael said.

Chrysler filed a long list in federal bankruptcy court of nearly 800 dealerships with which it is cutting ties. On the list? Tamiami Chrysler, among other local dealerships, including Maroone Dodge of Miami, Maroone Chrysler-Jeep-Dodge in Coconut Creek and Monarch Dodge. "Locally, this is a catastrophe," said Alex Planas, who runs one of the dealerships on the bankruptcy list.

While Chrysler is severing it's contracts with 25 percent of its U.S. dealers, on Friday, GM is expected to announce it's also cutting ties with about 42 percent of their franchises. Another 500 dealers will be cut when GM sells the Hummer, Saab and Saturn brands.

It's a frightening realization for those who have invested their futures in the car business. "I'm thankful I have some savings, and hopefully everything goes good, and I'm able to find a job and pay those bills," said Mishael.

After the cuts are announced on Friday, GM expects to cut a total of 2600 businesses by 2010.

Sometime after noon Friday, GM will hold a conference call with all of its dealers.

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