| W.Va. Auto Dealer To Testify On Unfairness
Spencer Businessman Has Built Very Successful Business, Says It's Wrong To Take Away Franchise
By George Hohmann
Daily Mail Business Editor
dailymail.com
CHARLESTON, W.Va. - The president and chief executive officer of Spencer Auto Group will be in the national spotlight today when he testifies before Sen. Jay Rockefeller's Senate Commerce Committee about the pending closure of Chrysler and General Motors dealerships.
Pete Lopez said he invested $1 million in the former Tom Parrill Chevrolet in Spencer two years ago.
"We call it 'Spencer Auto Group' because we have Chrysler Dodge and Jeep and, on the GM side, Chevrolet, Buick and Pontiac," he said. "The problem is they (the bankrupt automakers) are taking the franchises."
Last month Chrysler notified 789 dealers, including Lopez and 16 others in West Virginia, that the company plans to cut them from the dealership network by next Tuesday. General Motors reportedly notified 1,100 dealers last month but has not made the list public.
Lopez said he received letters from both automakers. Spencer Auto Group is one of the few so-called dual dealers that would be wiped out by the downsizing plans.
Dealers who survive the cutbacks are expected to benefit from less competition.
Lopez said, "When we came out two years ago, we asked Chrysler and Chevrolet if they were going to keep this point - that's what they call the dealerships, a 'point.' They said they sure are. They said they wanted to get back to the grassroots, back to Main Street.
"Guess what our address is? It's 276 East Main Street, Spencer. They said, 'You have five counties you're responsible for and we need every sale we can get.' So we purchased the store.
"We've tripled the service department, doubled the sales," Lopez said.
The dealerships had 12 employees when Lopez bought them. Now he has 15 full-time and three part-time employees.
"I have two awards from Mr. Nardelli (Robert Nardelli, chief executive officer of Chrysler) thanking us for what a tremendous job our store has done during a flat sales period," he said.
"It's un-American what they're doing to us. It's like you purchased your home for $400,000, put an additional $200,000 into it and the bank comes back in two years and says they're sorry they've changed their mind and they keep the $200,000."
General Motors sent a letter to Lopez saying the company will recognize the Spencer Auto Group until October 2010. Chrysler plans to cut Lopez off next Tuesday.
"That means on June 9 I'm not an official Chrysler dealer anymore," Lopez said. "Let's say I'm stuck with a million dollars' worth of inventory and a dealer in Charleston gives customers a $5,000 rebate. I can't give it. Isn't that amazing?
"I think the President put together a task force, but I'm sure they never sold a car," Lopez said. "They've made some rash decisions. That's why we're up here (in Washington, D.C.). We want them to look at the geography of West Virginia. We want them to come see the impact."
"The fallout hasn't started yet," Lopez predicted. "If they close 789 Chrysler stores and 1,100 GM stores, you're talking about 1.2 million jobs. It can't happen. They have no idea the fallout from this thing. We're in America. You can't do that to someone. Who made that decision to close my store? It's been there since 1955. How did they make that decision?"
"We've invested $1 million," he said. "We have an excellent sales crew. We've worked hard for two years. We've never been in the red. There's no reason for them to take our franchise. Before we sell the first car, they make $1,200 to $2,400 a month from us."
"It's not all about me," Lopez said. "It's about our community. We have a senior citizen base."
If his dealership is wiped out, Chrysler and GM customers in Spencer will have to go about 40 miles to Ripley or about 60 miles to Flatwoods for service.
"It's two-lane road," Lopez said.
"If you go to a metropolitan area and they have dealers on every corner, I understand them wanting to close some," he said. "But how can they expect a 75-year-old lady to drive that in winter to have her car serviced?"
"I have a lady who lives 30 miles away. I go get her car and have it serviced. I promised my customers I would take care of them. People who work will have to take a day off to have their car serviced."
"I bought a home," said Lopez, 62. "I donate a car for the Roane County High School drivers' education class. We support the Little League, the 4-H. The mayor of Spencer said we're 15 percent of the tax base. That's very important."
Lopez praised Rockefeller for scheduling today's hearing. The West Virginia Democrat is chairman of the powerful Senate Commerce Committee.
"I called him," Lopez said. "He returned my call. He wanted to hear my story. I told him exactly what's going on. We exchanged faxes of documents. He called me the other day and said he was having a hearing and asked me to testify.
"This would not happen without Sen. Rockefeller. He has been wonderful. So has the governor and (U.S. Rep.) Shelley Moore Capito. Even our statehouse representatives in Spencer and the mayor. They've all been wonderful. We're going to try to salvage something."
Scheduled to testify today (Wednesday), in addition to Lopez: Chrysler President James Press and GM Chief Executive Officer Fritz Henderson.
Asked if he hopes to have a few words with Press and Henderson outside the hearing room, Lopez said, "Absolutely. I want to do everything I can before and afterwards. I can't wait to have an opportunity to do that."
The hearing is archived for viewing on the Senate Commerce Committee's Web site at commerce.senate.gov
Traveling with Lopez are Charles Rashid, owner of Logan Chrysler-Suzuki, and Ruth Lemmon, president of the West Virginia Automobile & Truck Dealers Association.
Contact writer George Hohmann at business@dailymail.com or 304-348-4836.
dailymail.com | 
