Chrysler to cut 4 Pee Dee dealerships

Chrysler’s plans to eliminate 789 of its 3,200 dealerships would close down at least 11 franchises in South Carolina — including four in the Pee Dee — and 14 in North Carolina.

The Pee Dee dealerships affected are Floyd Motor Co. in Lake City, Meggs Chrysler Jeep Dodge in Bennettsville, Mullins Chrysler Dodge Jeep and Raceway Chrysler Jeep Dodge in Hartsville, according to Chrysler. None along the Grand Strand are affected.

Mark Stubbs, spokesman for Meggs Ford Chrysler Jeep Dodge, said although the cuts might hurt some dealerships in the Carolinas, Meggs will get by unscathed.

“It’s probably going to benefit us,” he said. “We’ll be able to focus on just one brand, instead of multiple ones.”

Stubbs said Meggs has been in business since 1972 as a Ford Dealership and only added Chrysler in 1984.

“Now we’ll just have to turn those Chrysler customers into Ford customers,” he said. “We’re going to be fine, because it could actually be cost-cutting for us.”

Raceway President John Isgett said losing the Chrysler franchise will affect Raceway Automotive “not really that much.”

Isgett said there are different aspects to look at.

“We don’t sell franchises,” he said. “We sell cars.”

About 80 percent of the vehicles the Hartsville dealership sells are program vehicles, Isgett said.

Program vehicles are new vehicles that are leases or were purchased from factory auctions.

Dealers don’t need a franchise to sell program vehicles, either, Isgett said.

Raceway is disappointed to lose the franchise, Isgett said, but that won’t shut down the Hartsville dealership.

He said the Hartsville dealership has its lowest number of new cars on the lot since it opened in 2002.

“The average consumer isn’t into new cars as much,” Isgett said.

The Hartsville Raceway dealership will remain open, he said, and will continue to service cars and sell program and used vehicles.

It won’t do warranty work, but Isgett said warranty work only accounted for 15 to 18 percent of the maintenance work done at the facility.

Without the franchise, however, the dealership can offer maintenance at a lower cost, Isgett said.

“We don’t want to lose the franchise,” he said, “but we are not shutting our operation down.”

Dealerships won’t be the only ones feeling the pain, current owners may also feel a pinch.

Most likely, consumers will have to travel farther if they want to remain loyal to the Chrysler brand or have current vehicles serviced under warranty.

They may also lose leverage in negotiating deals because there is less competition.

Floyd Motor Co., located at 144 S. Ron McNair Blvd. in Lake City, will stay in business as a used-car dealership, General Manager and Vice President Jody Boswell said Thursday.

The business has operated as a new-car dealership since 1937, the year it opened, Boswell said.

“I hope it won’t be a drastic change,” he said. “Basically, the business principle will be the same; it’s serving and satisfying customers.”

Since Lake City Ford closed Dec. 10, Floyd Motor Co. has been one of the two remaining new-car dealerships in Lake City.

In March, Raceway Chevrolet-Pontiac-Buick-GMC moved from its West Main Street location to the former Ford dealership’s site, which is at 270 N. Ron McNair Blvd.

The closing of Mullins Chrysler Dodge Jeep leaves only one new car dealership in Marion County, the Chevrolet GM component of Mullins Ford.

Pee Dee Ford closed its doors and redirected customers to Conway Ford in late summer 2008.

With Mullins Chrysler Dodge Jeep General Sales Manager Steve Smith at a car sale Thursday, no one on site was available to comment about how the changes will affect the business’ 18 or so employees.

Mullins Motors, part of the Carolina Automotive Group, shares David Small as its dealer principal with Lumberton (N.C.) Ford Lincoln Mercury.

The Mullins site, in business since 1990, stopped selling new Chrysler, Jeep or Dodge vehicles as of Sunday, a sales consultant with the Lumberton dealership said.

It can sell used ones, but not new ones, she said.The company filed its motion with the U.S. Bankruptcy Court in New York on Thursday, citing low dealership sales.

The motion states just over 50 percent of its dealers account for about 90 percent of the company’s U.S. sales. Dealers may appeal the proposal.

Chrysler has received $4 billion in federal loans and has been operating under bankruptcy protection since April 30.

Its sales this year are down 46 percent compared with the first four months of last year. Chrysler reported a nearly $17 billion net loss for 2008.