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2 GM dealerships get good news

Others in county await word on fate

Two General Motors dealerships in the Butler County area received word Friday that they will remain open.

GM sent letters to about 1,100 dealers nationwide, about 20 percent of its dealers, saying they will close by December 2010 as part of the automaker's attempt to lower costs and to increase sales.

Dealers were to be notified Friday of their status.

Dennis Baglier, owner of Buick GMC Mazda on Route 8 south of Butler, said he got word that his dealership would not get a letter of closure.

"It's great news," he said. "We didn't really expect to get the letter, but then you never know about things. But it's good to know."

Eddy Esposito, president of Grove City Auto Mall, said his dealership will keep selling GM vehicles.

He had to wait Friday for word from GM. He also had the same stress of waiting on Thursday when Chrysler was telling its dealerships which would close and which would remain open.

But it has been two days of good news.

"We're in good shape with both (car makers)," Esposito said.

But what added to the stress, he said, is no one knew for sure what the criteria Chrysler and GM used to make their decisions to close dealerships.

Now, Esposito said, he plans a less stressful weekend.

As of mid-afternoon Friday, neither Tom Henry Chevrolet on Route 8 in Bakerstown nor Kenny Ross Chevy Geo Buick North on Route 19 in Jackson Township were available for comment.

Alan Strezeski, owner of Troy-Alan Buick Cadillac in Kittanning, Troy-Alan Chevrolet Oldsmobile in Slippery Rock and Troy-Alan Pontiac Buick in Mercer, said that as of about 2:30 p.m. Friday he had not heard one way or another on his dealerships.

"I'm taking this as no news is good news," he said.

But Strezeski already knows, as do all Pontiac dealers, that GM is ending the production of that vehicle.

The end of Pontiac has been especially sad for the Mikan family, owners of Mikan Motors in Butler Township, which deals in Pontiacs and Volkswagens.

Mikan Motors, 340 New Castle Road, began selling Pontiacs in 1940. On April 27, David Mikan and his father, Robert Mikan, watched a GM news conference on their computer in which GM announced that it will close the Pontiac division and 2,600 of its 6,200 dealerships.

"How did we feel when we heard the news? We had a lot of emotions. I think my dad felt it more," David Mikan said.

Mikan Motors was opened by David's grandfather, Ivan Mikan, in 1924 in Trafford, where he sold Chryslers and Hudsons, but later became a Pontiac dealer.

David Mikan said the worst is yet to come for GM, predicting the automaker will file for bankruptcy soon.

"Chrysler's going through it now, and it seems to be going easily. I think GM will probably decide that now is the time to do it," he said.

As for Mikan Motors, David Mikan said the family will concentrate on its Volkswagen sales after Pontiac is gone.

"Volkswagen has turned their company around and has good products," he said. "Mikan will get a bit smaller, but not disappear."

GM on Friday declined to reveal which dealers will be eliminated. But the company outlined a plan to cut about 40 percent of its 6,000-dealer network by the end of 2010.

Besides the 1,110 dealership cuts, the company will shed about 500 dealerships that market the Saturn, Hummer and Saab brands, which GM plans to phase out or sell.

When the surviving dealer contracts are up in late 2010, GM is expected to cut still more by not offering renewals to about 10 percent of its dealers.

The Associated Press contributed to this report.

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