One day long, long ago, shortly after The Eye moved to Bend, our boss came up to us beaming, shook our hand and offered his congratulations. Our big achievement: We’d just bought a Jeep Cherokee from a local dealer.
Back in those distant days, you see, it was routine for Bendites to go to Portland to buy their vehicles – not just because they (supposedly) were cheaper there, but also because there wasn’t much of a selection here.
Those not-so-good old days may be coming back: Over the past week, Chrysler and GM dropped the ax on three of their long-time Central Oregon dealerships. Bob Thomas of Bend lost its Chevy and Cadillac franchises, Thomas Sales & Service of Bend lost its Chrysler franchise, and Dave Hamilton of Redmond was a double loser – it was cut by both GM and Chrysler.
Bob Thomas and Thomas Sales & Service are appealing the GM and Chrysler decisions. If the appeals don’t succeed, anybody who needs warranty service on a Chevy vehicle will have to take it to Gary Gruner in Madras.
But eventually even that option might not be available: The more than 1,100 dealerships that GM slashed last week were less than half the number that the automaker ultimately wants to get rid of.
No matter how you feel about car salesmen in general, the loss of major dealerships isn’t a good thing for Central Oregon. They’re significant employers and taxpayers, and they’ve been consistent supporters of local events and non-profits.
More than that, the absence of any GM or Chrysler dealer in town reinforces the impression that Bend is an isolated, middle-of-nowhere hamlet, and that will make it just a little bit harder to claw our way out of the recession.
Bad economic news tends to spawn more bad economic news. We’ve already lost a number of good restaurants, several retailers and at least one major (by local standards) manufacturer – and now we’re losing car dealerships. The tumbleweeds aren’t blowing down the middle of Wall Street yet, but this place is starting to get a bit of that creepy ghost-town feeling.
This article appears in May 14-20, 2009.
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Over-consumption led to too many businesses for this recession economy to support. There is only so much money available to consume everything that is available. We are headed for a sustainable business community model and it is going to be a painful process–quite a number of us won’t make it.
The draconian cuts the ‘Big Three’ are making is a result of their own making–they ignored market forces, pretended the competition could compete in the auto market and not have an impact, gave up broad segments of the market to focus on more profitable ones, i.e. trucks and SUVs and let the others make and market less profitable cars, and then did the worst marketing possible.
The people at TSS and Bob Thomas are great people to work with–they are knowledgeable and care–and if this is the end of a Bend institution it will be tragic. Many of us will miss them sorely. Madras is far enough, but Salem or Portland?!
GM’s management didn’t care about the impact their piss poor planning was going to have in the long term–and neither did the stockholders or unions. Public impressions are that the Detroit product is inferior. I’ve a 17 year old truck that looks almost new, has over 400k on an engine that has never been touched, still doesn’t use oil, went through a transmission at a quarter of a million and is still going strong. What unspoken code exists that says only a new car, loaded with expensive accessories, replaced every three or four years, is a desired model for living?
‘Consumers’ want a comfortable life, true, but who said the GM marketing department, Sony’s advertising, or Budweiser’s commercials define what comfortable means.
When Captain Renault closes down Rick’s Cafe Americain, he states how shocked he is to find gambling is taking place–just before he is handed his winnings.
Well, I’m shocked to see there’s a recession going on–shocked!
And the road back, here in Bend, is going to be a bitch!
I’m as disappointed – likely more then most – by the bad Chrysler and GM dealership news this week in Bend.
However, what’s apparent looking around is the sheer absence of american cars (trucks fare better). Yes, the CA influx has MUCH to do with that, but if you were in Detroit or Washington comparing regions that backed American cars over the past, say, decade, Bend Oregon likely came out pitiful. This isn’t the forum to compare import vs american – my point is just that the numbers don’t seem to add up.
Hopefully other businesses will fare better in Bend in the coming months and years as similar decisions will be made in different industries.
H.(hermit?)Bruce, Are you serious??? Tumbleweeds??….you must not get out of the yurt much. While strolling through Downtown Saturday night, we were struck by the vibrant, happy display of Bendites enjoying food , drink and music. No signs of mass suicides, depression, or other telltail indications of a “ghost town”. Creepy? I dont think so, nor would I imagine anyone else would characterize Bend in that manner. Come on out….have a beer and join the smiling masses.
mexi: It was just a rhetorical exaggeration.