General Decline

General Motors declared bankruptcy this week, and with the filing came news of all the franchise terminations. This was the other shoe dropping, for we'd already seen the list of ex-Chrysler dealers. As I expected, our closest Chrysler-Jeep store, a fairly small operation, was on the hit list - it wasn't all that long ago that they moved up to Chrysler from Peugeot. The Falvey family, who own the dealership, are not terribly bothered since they own another all-line Mopar operation in Norwich, about 15 miles away. But New London, Connecticut's M.J. Sullivan, a full-line GM dealer selling all makes but GMC and Hummer, seemed a incredible hedge against the dreaded "Dear Dealer" letter.

Yesterday we learned that M.J. Sullivan had indeed dodged a bullet, but took two others - Pontiac, as we all know, faces euthansia so all Pocho dealers stand to lose a brand. As it turns out, GM is pulling the Cadillac and Buick brands out of Sullivan's store, leaving just Chevy and Chevy trucks. If you want a Buick you'll have to go to Brustolon's over in Mystic, and for a Caddy it'll have to be Don Mallon up in Norwich, each the same 15 miles distant.

It could have been worse. At least Chevy is the volume brand. Brustolon's Buick and GMC sales will probably not keep pace. It's a bit ironic that the Sullivan dealership, begun as a used car operation and grown through purchase of a Chevy store, reverts to its roots. By careful entrepreneurship, Martin Sullivan and his son had bought up Pontiac, Olds, Buick and Cadillac franchises. Olds suffered a slow death, while Pontiac's will be much quicker. So the Sullivan dealership is, in a way, right back where it started.

What if GM doesn't survive, you ask? Well the Sullivans have an ace up their sleeve. Some years back they took on a Hyundai franchise.