St. Albert’s GM dealership isn’t going anywhere, except to a new location … some day.
GM Canada informed dealers last week whether or not their franchise agreements would be renewed. It was part of a move aimed at trimming 42 per cent of its dealers.
From tense times emerged good news for Ron Hodgson Pontiac Buick GMC — it will continue to operate its two locations, in St. Albert and on Edmonton’s south side.
“I don’t think there was anybody in the store that thought we were in trouble,” said Jeff Hodgson, general manager of the St. Albert location. “It was a confirmation of what we thought was right. It was definitely a sigh of relief.”
The store typically exceeds the sales targets set by GM and is also an innovator by using only wind power to become a “green dealership,” Hodgson said.
Rumours are circulating within dealer circles that a handful of the 16 dealerships in the Edmonton area will close, but Hodgson wouldn’t confirm any names. For those who made the cut, it’s exciting times.
“It definitely means that we’re going to be selling more vehicles through our location,” Hodgson said.
Hodgson’s father Ron opened the St. Albert dealership in 1978. It currently employs just more than 100 people.
Mayor Nolan Crouse is glad to see the dealership stay, as its contributions include tax revenue to the city and active support for local charities.
“They’re such a long-term rock to the community, it would have been a shame to see any changes with them,” he said.
“They are quite a giving organization to the community.”
Located at the city’s southern edge, the dealership provides an unofficial welcome for people coming to St. Albert from Edmonton, said chamber of commerce chair Joe Becigneul. Its presence as a large employer and not-for-profit supporter is huge.
“Ron Hodgson and that dealership have been a pillar of the St. Albert community and a strong chamber supporter over the years,” Becigneul said. “The chamber is just ecstatic to know that they’ll still be there for many years to come.”
GM is expected to file for bankruptcy protection on Monday. The company hopes to emerge from the process with lower labour costs and less debt, along with fewer factories and vehicle offerings. GM’s Canadian dealership closures will reduce the number from the current 705 to between 395 and 425.
Besides providing an opportunity for continuing dealers to add product lines, the restructuring doesn’t change the day-to-day operations at the dealership level, Hodgson said. He’s had preliminary discussions with GM about adding Cadillac and Chevrolet brands to his lot.
“If something like that were to happen, we could look at building a new store, possibly on the north end of St. Albert,” he said.
He’s “fairly confident” that he has a good shot at getting the two new lines, “but you just never know,” he said. By the end of the year he hopes to know whether a new future location is feasible. If it is, he has big plans.
“We would build a complete green building with solar power and wind power and the whole nine yards,” he said.
“Those are just pipe dreams at the moment but we definitely are thinking that far along.”
