Marble Hill car dealer on quest for financial backing

MARBLE HILL, Mo. -- Crown Chevrolet, the General Motors dealership in Marble Hill, may be one of many small dealerships throughout the country to close its doors because of a withdrawal of financing from GMAC Financial Services.

Joe Scott of St. Louis, who owns Crown Chevrolet, a Ford dealership in Ste. Genevieve, Mo., and a Chrysler dealership in Farmington, Mo., said GM had been targeting smaller dealerships across the country, making it difficult for them to remain in business. If GM shuts down a dealership, it has options to fight to stay open, but those who shut down out of frustration don't have the same options.

Scott said that after hearing from GM last week, he sent Crown employees two weeks' notice the dealership would close. GMAC had withdrawn its short-term financial support and fined Crown $10,000 for not being in compliance.

Finance manager Barbara Kidd said cars on a dealer's lot are usually purchased using short-term loans. Companies such as GMAC hold control over the vehicles as collateral until the dealership sells the them or pays for them itself, an arrangement known as floor planning.

"They are telling us we will no longer have the floor plan option with GMAC," Kidd said.

Scott said the dealership can stay open if an institution will finance the floor plan, but it has faced trouble finding such support.

However, political leaders, including Mayor Russell Masterson, city administrative assistant Gary Shrum, state Rep. Shelley Keeney and some city aldermen, sent letters to Crown voicing their support.

In addition, Marble Hill residents have been signing a petition expressing support for the 60-year-old dealership.

Brandon Long, the sales and finance manager, was one of the employees circulating the petition.

"We're hoping to show GM that the people don't want to see the place closed down, he said. "They really want to keep it in town and don't want to see another business shut down."

Scott said Crown needs to sell 25 to 30 cars a month to break even. Though Crown is not a big moneymaker, he said the 11 employees count on the it for their jobs.

"The employees there are cranking the numbers, seeing what they can do," Scott said.

While Crown may not sell many vehicles, Scott said the employees have assured him they can make up for it in service and parts. And the Cash for Clunkers program might also help if given the opportunity, he said.

Scott said he will meet with Crown manager Bobby Moyers in Farmington to work out a plan. A Bank of Missouri branch in Cape Girardeau is willing to discuss a floor plan of $400,000 to $500,000, which he said is "not a bad deal for a bank."

Although the paperwork to close Crown has been forwarded to GM and GM has acknowledged it, Scott said community support could reverse the closure.

"I don't like to give up on anything," he said. "It's amazing what a group of people can do these days."