GM Dealers Look To Future

Bailout Gm Many in the Mobile area say they're optimistic in light of the recent bankruptcy.

by Chad Petri

Published: Tue, June 02, 2009 - 3:55 pm CST Last Updated: Tue, June 02, 2009 - 5:24 pm CST

McConnell Automotive in Mobile has tangible proof they’re going to be around for awhile longer. The dealership was sent a letter Tuesday, June 2nd, 2009 from General Motors stating they're going to be part of GM's future.

“I think we'll be a leaner, more competitive company,” says McConnell Automotive President Eddie McConnell. He says the restructuring plan helps streamline GM to just four car brands. McConnell says the bankruptcy will help this member of the big three get out from under so-called legacy costs that kept it from being more profitable.

“Decades and decades of really heavy costs that have kept them from being competitive in today's market,” says Eddie McConnell. Most of the dealerships we spoke with in the Mobile area say they aren't too worried about closures here because they say the market isn't oversaturated. With many changes afoot, local dealerships we spoke with say these moves will help them in the future.

“McConnell’s been here for 50 years and with these changes we'll be here for another,” says Eddie’s son and the New Car Manager Stan McConnell. The restructuring keeps them selling cars for the foreseeable future, which is better than the alternative.

“Which would have been from what I understand much more expensive to the tax payer in a liquidation circumstance than with this reorganization,” says Eddie McConnell.

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BSB1958 Says:

Thu, Jun 04, 2009 at 1:29 pm

I recently purchased a new Pontiac G-8 from Mcconnell and they bent over backwards to do so when no others would so much as greet us on the lot.
Local Dealerships like Mcconnell that are family owned will work harder for the sale and support our local economy for a long time to come.

Well done Eddie & Stan !!!

cmb1 Says:

Wed, Jun 03, 2009 at 1:00 pm

I have a Yukon and i think i’ll go back to a Nissan!

taxpayer Says:

Wed, Jun 03, 2009 at 11:06 am

How did Mike Van in Bay Minette keep his doors open? He was bankrupt before GM.

BamaBob Says:

Tue, Jun 02, 2009 at 4:31 pm

Ford has a better idea….. it’s called capitalism!

BamaBob Says:

Tue, Jun 02, 2009 at 4:27 pm

Good to be optimistic, but some times a little reality has to come into play. Secured creditors got pennies on the dollar and common share owners got wiped out. Good luck finding investors willing to take that gamble again.

Dealers like McConnell’s aren’t sweating it so much, because they do not have all their eggs in one basket. But, they will have a hard time finding people willing to buy America’s version of the Yugo.