Saturday, September 26, 2009
Bedford car dealership feels betrayed by GM
Murray & Bolling Chevrolet spent 62 years with General Motors.
Photos by KYLE GREEN The Roanoke Times
Murray & Bolling Chevrolet in Bedford has been terminated by General Motors and will no longer sell new cars. The dealership will instead sell used cars and continue to service vehicles in its garage. "I'm ready to wind down, but not like this," said co-founder Guy Murray, 74, who operated one of the oldest Chevrolet dealerships in Virginia.
Murray and Bolling still has General Motors parts in its service department. The dealership received notification from GM that it will no longer provide new vehicles, effective Oct. 5.
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BEDFORD -- As General Motors resumes a path forward after bankruptcy, the automaker is about to unhitch a Bedford dealership that has tagged along for more than half of GM's life.
Murray & Bolling Chevrolet is on the list of more than 1,100 deleted dealerships that GM no longer will supply with new vehicles.
The dealer cuts are in the wake of an auto industry head-on collision with higher gasoline prices, a tough recession and changing consumer loyalties, and are affecting all parts of the country.
GM lost its independence -- it is now majority government-owned with a stock sale planned next year -- and rank as the world's No. 1 automaker. The company lost $30.8 billion in 2008 and $43.3 billion in 2007.
In explaining its plan to reduce its dealer network by 2,600 locations (or 40 percent), 1,100 through actual terminations, the company has said it must make changes to stay in business. It said it had too many dealers too close together, which drives down prices.
The company's Web site directs customers looking for a Chevrolet dealership to stores in Roanoke, Lynchburg and Altavista.
"We want there to be no impact on our customers," the site says.
Murray & Bolling Chevrolet will sell only used cars and service after Oct. 5, its business stripped of every building sign, floor mat and sheet of stationery bearing the Chevrolet name.
One of the oldest Chevrolet dealers in Virginia, the company had represented GM for 62 years, more than half of GM's 101-year history.
At Murray & Bolling this week, there was acceptance and anger among the owners.
"I'm ready to wind down, but not like this, not to be screwed out of your business," said co-owner Guy "G.E." Murray, 74.
GM was a trusted business partner for many years, he said. That changed when the federal government got involved in the company's affairs after an infusion of tax dollars.
In bankruptcy court this summer, GM canceled dealer relationships and negated its obligation -- a duty in any voluntary dealer closing -- to take back unsold vehicles and parts as well as special garage tools and to credit the dealer for what it had paid for such items, the owners of Murray & Bolling said.
In this case, the dealership is out what it has invested unless it finds a buyer or buyers.
Murray & Bolling did move its existing inventory of new vehicles, the last sale being a Chevrolet Equinox that was bought by a Bedford County resident on Aug. 31. But parts and tools remain a liability.
GM spokesman John M. McDonald said he could not discuss Murray & Bolling. He said that the company gave dealers who were in compliance with their franchise agreements but chosen for termination two options: close immediately and file a claim in bankruptcy court, or agree to undergo an orderly wind down with a flexible closure date and, in some cases, limited financial assistance. He declined to say whether GM declined to reimburse dealers for spare parts on inventory and tools they were required to own to service GM vehicles. He said many groups took financial hits in addition to dealers, including employees, suppliers, shareholders and bondholders.
"This is not fun. It is not fun for anybody," McDonald said.
Murray & Bolling is not closing.
The owners are leasing the garage to the mechanics who will continue servicing vehicles without interruption. Used cars are for sale. The company's new name will be Murray & Bolling Inc.
Many know its history.
The company began in the early 1940s as a downtown Bedford appliance, lamp and household goods dealer. It quickly expanded into automobile sales and became Murray Chevrolet.
Founders Guy Murray and Basil Murray, who were brothers, were later joined by Onex Bolling; by Onex's son, Richard; and by Guy Murray's son, also named Guy. Today, Onex Bolling, 86, Richard Bolling, 57, and the younger Guy Murray own the business.
They recall many years of profitability, civic involvement and prominence, including 1989 to 1990 when Onex Bolling was president of the Virginia Automobile Dealers Association.
Standing in the nearly vacant, former new-truck lot, Richard Bolling said, "I'm used to walking by here and seeing trucks end to end. But nothing ever stays the same."
