Long-time GM dealership DeRussy Motors is apparently closed for business, for now, but company officials have declined comment.
The Associated Press reported Tuesday that General Motors Corp. has informed its dealers that it will force 1,000 to 1,200 underperforming dealerships to close their doors in an attempt to make remaining dealerships more profitable.
On Monday, the company announced it was cutting more than 2,600 dealers by 2010, the AP said.
It is as yet unknown if the recent developments at DeRussy Motors in Waveland are related to the announcements from General Motors on Monday and Tuesday.Last Friday, the Echo received information that DeRussy was closing.
An employee– who declined to be identified–said Friday afternoon that the information about the dealership closing was not true and “a vicious rumor.”
Over the past four days, the dealership has not been open to the public.
Several attempts to reach owner Mark DeRussy, including a phone call to his home, were not successful.
On Tuesday, the front door of the dealership was locked and both entrances to the business from Hwy. 603 were blocked.
A woman outside the dealership said that it was closed and requests to speak with DeRussy were once again denied.
“He is here, but he is not speaking to anyone,” the woman said.
GM’s plan was apparently laid out to dealership owners in a video conference on Tuesday, the AP said. The plan includes plans to reduce dealerships by 42 percent, cutting from 6,246 to 3,605.
State tax records show that new auto purchases have declined greatly amid the national recession.
Last week, the state tax commission announced the legislative tag credit was being reduced by nearly 50 percent.
Tax/Assessor Collector Jimmy Ladner said the action is a good indicator that nobody is purchasing new vehicles.
Last year, GM was the recipient of a federal auto bail-out. Many of the loans the company has with the federal government carry a June 1 deadline for restructuring moves, the AP said.
GM Spokeswoman Susan Garontakos was quoted as saying GM is in the process of deciding which dealers to keep based on their sales performance, capitalization, potential profitability, size, image, and customer satisfaction scores.
