The move to cut dealerships by two of the country’s three major auto manufacturers earlier this week caused some anxious moments for owners of Belle Plaine’s dealerships.
Chrysler cut over 700 dealerships, including 22 in Iowa. But the company notified each of its dealers by letter, informing them if they were to be cut or to be retained. Joel Thys, owner of the Raleigh Johnson Chrysler dealership in Belle Plaine, said he was notified that his firm was spared from this round of cuts. Chrysler then released the entire list of dealers nationwide that would no longer be in the fold as a part of its bankruptcy filing, which is a public document.

General Motors, which is not yet in bankruptcy, chose a different path. That firm cut more than 1,000 dealerships nationwide, but there was no advance notice of which would stay and which would go, according to John Grieder of John Grieder Motors, Belle Plaine.
Thys owns the Shaull & Ullrich Chevrolet dealership in Blairstown, so he had to await word from both companies. Both men confirmed that they didn’t know until the close of business on the day of notification that their General Motors franchises were apparently spared from this round of cuts.. General Motors also did not choose to release an entire list of the dealers that would be affected and it is still not publicly known who will stay and who will go.
Thys said the company hadn’t notified its dealers what criteria it was using in determining the cuts and he and Grieder both said they still don’t know and any guesses they might put forth would only be speculation.
As both companies attempted to follow guidelines of the Obama Administration after they received federal bailout money, industry analysts had offered several theories on what those guidelines might be. They suggested that some of the dealerships in smaller communities would be the first to go. But in this first round of cuts, some of the dealers losing franchises in Iowa came from some of the state’s major metropolitan areas as well as some of the smaller towns.

So without official word, it was left to the dealers and their customers to wonder how they would be affected. Grieder, who has operated a car dealership in the community for many years, said he had received numerous calls of support from friends and customers.
Thys said he thinks General Motors will have to file for bankruptcy. He has heard reports in the media that the company may cut an additional 1,500 dealers in the coming months, so it may not be over yet.
Grieder said as he and other dealers look to the future, his firm will continue to provide the products and service it has been known for in the area.

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