Is Guyler Buick a GM Target to Close?
Printed From: MiddletownUSA.com
Category: Middletown Area Business
Forum Name: Middletown Area Businesses
Forum Description: News, Information from and about area businesses
URL: http://www.middletownusa.com/forum/forum_posts.asp?TID=1399
Printed Date: Nov 24 2024 at 5:01pm
Topic: Is Guyler Buick a GM Target to Close?
Posted By: John Beagle
Subject: Is Guyler Buick a GM Target to Close?
Date Posted: Jun 08 2009 at 9:46am
No comment from Guyler Buick if they have been served a contract termination letter with GM, but it may just be a matter of time.
GM is going to cancel thousands dealer franchise contracts based on VOLUME. Guyler was mentioned on 700 WLS as being on the bottom of the volume list for GM dealers in the Cincinnati area.
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http://www.johnbeagle.com/" rel="nofollow - John Beagle
Middletown USA
News of, for and by the people of Middletown, Ohio.
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Replies:
Posted By: Pacman
Date Posted: Jun 08 2009 at 10:01am
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Personaly I hope not, but I would say from the decline in their inventory that they probably are.
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Posted By: Josh Van Cleave
Date Posted: Jun 08 2009 at 10:53am
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Never happy to see a business in trouble...
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Posted By: The Resident
Date Posted: Jun 08 2009 at 11:39am
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At least Obama Administration is learning, they seem to be closing Government Motors dealerships based on volume, not the political affiliation of the owners like they did with Chrysler
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Posted By: swohio75
Date Posted: Jun 08 2009 at 1:05pm
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Well Jim Pierson owns both dealerships now. My guess, new cars move to Verity Parkway with Chevy. Used cars with a service department remain on Dixie Highway. Question is, will he get a Caddy franchise back?
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Posted By: arwendt
Date Posted: Jun 08 2009 at 2:42pm
They had to spend a fortune on all those remodels they did a few years back. I wish them luck.
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Posted By: Pacman
Date Posted: Jun 09 2009 at 7:22am
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Hey the way the Credit System is shaking out, the Used Car dealer may be the place to go for a considerable percentage of the population for the forseeable future.
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Posted By: swohio75
Date Posted: Jun 09 2009 at 9:44pm
Middletown auto dealers sued by General Motors
Business Courier of Cincinnati - by Jon Newberry Staff Reporter
A two-year-old dispute between General Motors Corp. and two Middletown car dealerships is headed for federal court.
GM contends that Chevrolet dealer Jim Pierson, operator of Pierson Automotive has taken control of Guyler Buick-Pontiac-GMC, contrary to GM dealership agreements and a 2005 settlement. This, according to a lawsuit filed by GM in U.S. District Court for the Southern District of Ohio.
GM wants the court to order Pierson to relinquish control of Guyler and recognize GM's right to buy all of the GM assets of the dealership.
In a May 29 complaint, GM alleged that Pierson and Mike Guyler, owner of the Guyler dealership, have violated provisions in their dealership agreements governing changes in ownership and management. They also breached a 2005 settlement under which Pierson bought a 33 percent interest in Guyler's dealership, it said.
The settlement was entered into after GM rejected a proposed purchase by Pierson of a majority interest in Guyler in 2004. The deal required Guyler to meet certain sales goals - goals it failed to achieve - before Pierson could buy additional stock.
GM claims that as soon as the ink was dry, "the defendants have tried to end-run the settlement agreement by allowing one of the defendants to do exactly what the settlement agreement prevented."
Pierson has effectively purchased all of Guyler's stock by loaning the dealership $2 million, interest free, while shares of stock are escrowed in his name, GM contends. Also, Pierson has purchased Guyler's real estate, and Pierson's wife Brenda Pierson is acting general manager of the Guyler dealership, GM said. Pierson also took over financing obligations for Guyler's inventory, it said.
Pierson, who hadn't yet seen the lawsuit, said GM's action appears to be in retaliation for a related lawsuit he filed against the automaker in county court for which a hearing is set June 23. GM wants to install a new dealer at the Guyler location, he said.
"They'd like to put a different dealer in there, but they'd have to pay me rent. They don't like that," Pierson said.
Mike Guyler said he's still running the dealership and has "lived up to the letter of the law."
Dealer Duel
Defendants: Pierson Automotive/Guyler Buick-Pontiac
Plaintiff: General Motors Corp.
Case No: 08-367.
jnewberry@bizjournals.com | (513) 337-9433
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Posted By: Pacman
Date Posted: Jun 10 2009 at 7:07am
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Funny how the Journal is only concerned with a Dealership in Hamilton and not the two in MIDDLETOWN.
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Posted By: John Beagle
Date Posted: Jun 10 2009 at 10:26am
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I'm surprised, but with a GM bankruptcy, GM can do anything, why sue? Just revoke the dealership, problem solved.
Still, I would hate to see Guyler close. Mike runs an excellent operation over there. He should find another car company to sell for and stay in business.
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http://www.johnbeagle.com/" rel="nofollow - John Beagle
Middletown USA
News of, for and by the people of Middletown, Ohio.
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Posted By: Middletown News
Date Posted: Jun 10 2009 at 10:34am
Pacman, really its not funny. The Journal is just a shell of its former self. Just a few good writers, clearly not enough to get all the stories in Middletown.
Why aren't they all over this car dealership problem?
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Posted By: swohio75
Date Posted: Jun 10 2009 at 1:00pm
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My guess is that the lawsuit with GM is still pending, and that Pierson cannot make a comment. Sevearl articles that have been in the Journal stated that he has not been available for comment.
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Posted By: Middletown News
Date Posted: Jun 10 2009 at 3:13pm
Did that stop Mike Wallace? No..lol
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Posted By: Middletown News
Date Posted: Jun 17 2009 at 11:56am
The lack of any info coming out of Guyler can not be good news. If Guiler indeed had been renewed, we would know something by now.
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Posted By: Bobbie
Date Posted: Jun 17 2009 at 1:02pm
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I agree - No news does not always mean good news.
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Posted By: swohio75
Date Posted: Jun 17 2009 at 1:40pm
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Maybe this has something to do with it:
Pierson, who hadn't yet seen the lawsuit, said GM's action appears to be in retaliation for a related lawsuit he filed against the automaker in county court for which a hearing is set June 23. GM wants to install a new dealer at the Guyler location, he said.
Granted, that was a year ago. I would assume lawsuit is still outstanding, and that's the reason for "No Comment." Can't help but wonder if Pierson is at risk for losing franchise rights, with GM looking at another dealer to consolidate in a single location in Middletown with Chevy, Buick, GMC.
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Posted By: Middletown News
Date Posted: Jun 18 2009 at 9:25am
The Guyler location would be a good place for GM to consolidate.
Perhaps all is not lost. If GM wants Middletown to buy cars, they better keep at least one dealership open.
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