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published Tuesday, November 24th, 2009

Axed by GM, Ledford dealership asks residents to plead case


by Brian Lazenby

DODGE LOT ADJUSTS

Courtesy Dodge in Dalton, Ga., was one of 789 dealerships axed by Chrysler in May as part of its restructuring plan. Instead of closing, the dealership continued operating as a used car dealer. Officials said the company operates today as Courtesy Sales and Service at 2210 East Walnut Ave.

Source: Courtesy Sales and Service

ELEMENTS

* 1981 -- When Don Ledford Automotive opened

* 27 -- Number of employees

* $19 million -- Estimated amount Don Ledford Automotive paid in sales taxes

* 1,300 -- Estimated number of dealerships cut by GM

Source: Don Ledford Automotive

CLEVELAND, Tenn. -- As a child, Jonathan Cantrell visited Don Ledford Automotive with his grandfather.

When he was in his early 20s, Mr. Ledford trusted him enough to frequently lend him a Chevrolet Corvette to drive on the weekends.

Now 34, Mr. Cantrell is a loyal customer and has owned three vehicles he bought from the 4595 N. Lee Highway dealership plus the two he bought for his company, Caldwell Paving, and the two his grandmother now owns.

The dealership has been a part of his life for as long as he can remember, he said, and General Motor's decision to include it among the more than 1,300 dropped by the automaker is a terrible mistake.

"I don't know how GM made its decision, but I know (Ledford Automotive) did well here," he said. "If they are basing it solely on population, they are dead wrong."

During the week that should have been a celebration of the dealership's 28th anniversary, dozens of local supporters as well as civic leaders and elected officials rallied at the dealership Monday in a bid to save it from closure.

Debbie Ledford Melton, general manager and daughter of the company's founder, urged those in attendance to sign petitions that will be sent to GM, send e-mail messages, call the automaker from the dealership and make video clips that will be posted on YouTube.

  • photo
    Staff Photo by TIm Barber Jonathan Cantrell signs a petition Monday in the showroom at Don Ledford Automotive in Cleveland, Tenn. The North Lee Highway dealership is scheduled to close on Oct. 2, 2010.

"We realize this is a nationwide problem, but to this community it is like a death in the family," Ms. Melton said. "We are not mad at GM, just very disappointed."

She said GM reinstated other dealerships based on community and governmental support, and she hopes it will do the same for the Ledford dealership before its contract with GM expires in October 2010.

About 90 dealerships initially scheduled for closure were reinstated, but Ryndee Carney, a spokeswoman for the Detroit automaker, said those decisions were based on a review of the criteria used to put them on the list of dealerships to be dropped.

"It's a very objective set of numeric criteria," she said, listing dealership performance, customer satisfaction and profitability as primary factors.

Mr. Ledford, who founded the dealership in 1981 when the now-congested area was a cow pasture, said the support of residents gives him hope.

"This community has been so good to me, I don't want to leave them," he said. "If this support doesn't do it, nothing will."

John Scott has bought a number of GM products from Mr. Ledford over the years. He is upset the dealership is scheduled to close and said he won't drive to Chattanooga to buy GM vehicles in the future.

"If he moves out, I'll hunt me another brand," Mr. Scott said. "I'll buy me a Ford."

State Rep. Mike Bell, R-Niota, said Mr. Scott is like a lot of Don Ledford's customers.

"What GM needs to know is that if they move out of Cleveland, the people are not going to drive to Chattanooga. They are going to change brands," he said.

Cleveland Mayor Tom Rowland said shutting down the dealership, after the closure earlier this year of Hall Chevrolet in the city, will be a tremendous blow to the city.

"This dealership means a lot to this community, not only with the taxes they pay but also contributions to local charities," he said.

The dealership provided more than $2 million in tax revenues for each of the last two years, and Ms. Melton said idling the business will hurt the 27 families that rely on Ledford for their livelihood.

State Rep. Kevin Brooks, R-Cleveland, said closing the dealership is the wrong decision at the wrong time.

"Taxpayers gave millions and millions of dollars to save GM, and we want some return on our investment," he said.

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Oz said...

GM only sells vehicles to dealers and they are eliminating almost 1300 of their customers. The remaining dealers will not be able to make up sales numbers lost from closing dealers. GM is leaving Cleveland without a dealer. Around 90% of the people in Cleveland will buy local from another manufacturer. GM will lose sales. How does this help them get back on the road to profitability? What a plan???

A bankrupt bailed out corporation is forcing profitable dealers out of business? Auto dealers cannot stay in business without customers. Why force them out?

Sounds like the new GM is worse than the old GM.

November 24, 2009 at 9:43 a.m.
rolando said...

There were past indications that the closing of Chrysler dealerships were possibly connected with campaign contributions made in the last election. All but one of the remaining dealerships contributed heavily to one party, the remainder [plus one low-contributer] contributed to the other party.

Care to do a little investigative reporting, Mr Lazenby? Perhaps the same would turn up for the GM dealers...and wouldn't that be interesting?

November 24, 2009 at 3:24 p.m.
MetroMax said...

Big city dealers don't offer anything you can't get in Chattanooga. Most of the time, with salespeople, the attitude of the customer goes a long way. Treat them with respect, they will return the favor, and you won't have to leave town to get a good deal.

November 24, 2009 at 11:34 p.m.
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