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Automakers' decisions impact local dealers

BARKHAMSTED — In the midst of major cuts by the Chrysler and General Motors (GM) corporations and ongoing financial problems,  one automobile manufacturer that doesn’t appear to be experiencing much pain is the Ford Motor Company, which has rejected government bailout money while vowing to limit cuts to dealerships.

That has resulted in a sense of cautious relief at places like Lombard Ford in Barkhamsted, where owner Rob Lombard said Monday that business is improving.

“We’re seeing an increase in traffic, certainly,� Lombard said. “The business has been picking up for the last several weeks, especially after they announced GM and Chrysler are having issues. All of our inventories are extremely low at this point.�

Lombard said he has sympathy for his contemporaries at GM and Chrysler who will be among hundreds of dealers who will be forced to close their doors as a result of the companies’ recent decisions to reduce their retail outlets. Last week, 789 Chrysler dealers received word that they would be eliminated, while General Motors told 1,100 dealers that they would be closed down.

“I feel for them,� Lombard said. “We’re all dealers, and we’re all in the same boat. I’m not going to say it’s great that this is happening to them, but I’m very thankful that I’m a Ford dealer and I have a particular product line to sell.�

Lombard said he is not happy that the auto manufacturers have decided to target dealerships when they could be focusing their attention on United Auto Workers (UAW) union, members of which he said are “grossly overpaid� and unwilling to make concessions. “You can’t say it was GM and Chrysler’s fault for making bad deals when the UAW had an iron fist over them.�

Lombard said he feels sorry for dealership owners at GM and Chrysler, who purchase their products from the manufacturer and will eventually be stuck with inventory as the companies are forced into bankruptcy.

“These dealerships don’t cost the company any money,� he said. “There’s no rhyme or reason to the closure of dealers as a cost savings to the manufacturer. The underlying problem of the domestic auto industry is the high wages paid to the UAW workers.�

In the end, Lombard and other Ford dealers can’t help but enjoy the current increase in business as consumers shy away from the embattled manufacturers.

“It’s happening, and we have a situation where Ford is certainly going to flourish, but we have to be concerned that Ford is going to be competing with the U.S. government, which is going to control Chrysler and GM. How does the Ford Motor Company compete down the road? Our CEO has said we are going to be competitive. I hope he’s right.�

Lakeville Journal

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