News
News Home
Quick Bites
Exploradio
News Archive
News Channel
Special Features
NPR
nowplaying
On AirNewsClassical
Loading...
  
School Closings
WKSU Support
Funding for WKSU is made possible in part through support from the following businesses and organizations.

NOCHE

Levin Furniture

Akron General


For more information on how your company or organization can support WKSU, download the WKSU Media Kit.

(WKSU Media Kit PDF icon )


Donate Your Vehicle to WKSU

Programs Schedule Make A Pledge Member BenefitsFAQ/HelpContact Us
Economy and Business


The auto bailout plays out at Ohio dealerships four years later

Scores of Ohio car dealers lost their franchises in 2009, but those who held on are doing well
by WKSU's TIM RUDELL



Reporter
Tim Rudell
 
John Furey of Furey Chrysler, Dodge, Jeep in Malvern--in Carroll County just south of the border with Stark County
Courtesy of Tim Rudell
Download (WKSU Only)
In The Region:

America’s Big Three car makers are back, which is good news for northeast Ohio manufacturing.  But, we wondered how the local end of the business, the dealerships of the region, are faring four years after the massive government-led restructuring of the auto industry. WKSU's Tim Rudell talks to one of those dealers in a small town in Northeast Ohio.

Click to listen

Other options:
Windows Media / MP3 Download (3:16)


It was early 2009. John Furey opened an overnight deliver envelope from Chrysler Corporation.  He's a Chrysler dealer in the Carroll County village of Malvern, and he was about to learn the fate of his business. The letter said "Congratulates" and went on to confirm that he would be continuing as a Chrysler dealer.

Furey recalls the cutting of 789 Chrysler franchises that day. They were part of forced bankruptcy of the car maker in the federal government auto industry bailout plan.

“There are, I guess, different buckets that dealers fell into. We who survived and managed to move on; those who had multiple dealerships and so had other opportunities and were able to move on; and then we have the ones that were solely invested in Chrysler. ... They lost their homes and everything, And they’re the ones I feel worst about.”

Was it necessary?
In 2009 Furey said the dealer purging was unfair and unnecessary, and he still calls the cuts “business executions.”  But he acknowledges he and other dealers who weren't cut did benefited.

“We’re four years past that fateful day, and of the dealers who weren't executed, I don’t know of any that aren't doing extremely well. There are a couple of reasons for that. No. 1, if somebody will eliminate a large percentage of your competition, you have a better opportunity there. The other thing is the pent-up demand. It is enormous. The average car on the road today is still 11 years old.”

Upgrades left to the locals
Business is improving so much, in fact, that some auto manufacturers have pressed dealers across the country to invest in upgrades to their stores -- in extreme cases requiring seven-figure renovations.

“Dealers are up pretty in arms about that, even trying to get legislation against it. But Chrysler reversed its thinking on that some months ago and basically said, 'If your dealership is OK with your customers, it’s OK with us.' Maybe in downtown Chicago, a $6 million facility is necessary; maybe in rural Ohio, what you've got is just fine. And Ford has kind of taken that same approach also, and I think that’s a great approach.”

Furey says business for him and just about all car dealers in eastern Ohio is also looking up for because of something that has little to do with auto manufacturers. The Utica Shale boom is funneling massive amounts of new money into the regional economy
(Click image for larger view.)

Add Your Comment
Name:

Location:

E-mail: (not published, only used to contact you about your comment)


Comments:




 
Page Options

Print this page

E-Mail this page / Send mp3

Share on Facebook




Stories with Recent Comments

Sen. Sherrod Brown announces plans to improve Medicare by lowering prescription costs for seniors
Sounds good. I'm living in Florida to escape the snow. So far it's working. I retired from GM in 2000. Keep pushing for all the working people. In the long run ...

The tiny town that time, and elections, forgot may go out of existence
Thank you for this story. I grew up in Limaville, my parents home is there still...unsellable due to the septic/sewer problem. Sometimes I am sorry I left...wis...

Where Ohio'sJohn Kasich stands in the presidential polls
We are fans of Gov. Kasich since he served in the House of Representatives. It pleases us to finally see him as the potential President of the United States. We...

Air Force unit gets training and Youngstown gets rid of some eyesores
Do they have to totally destroy all the beautiful oak and leaded windows, which I am thinking are probably there? Do they just have to destroy them like that? C...

Jewish challah and Native American fry bread at an Akron cultural exchange
Each time I saw the young students relate to each other, I got goose bumps. These young students can and hopefully will teach all of us to live and respect eac...

One of the Cleveland Orchestra's most celebrated musicians bids farewell
I had the honor of studying with Franklin Cohen in the late 80s and early 90s. He is unparalleled both as a clarinetist and as a musician. His deep personal war...

Summa's dress code is not 'etched in stone'
SOME OF THESE POLICIES ARE A COMPLETE JOKE. UNLESS YOU ARE DOING THESE TYPE OF JOBS EVERY DAY, YOU DON'T KNOW WHAT IS COMFORTABLE AND REASONABLE OR NOT. UNLESS ...

In a crowded, controversial field, Kasich's low-profile may be a boon
I think it should be required that if a candidate wants to use the facilities of one of our state universities to promote him- or herself, they should be requir...

How's Kasich selling in New Hampshire, and what about Iowa?
"If he heads there, says Gomez, he’ll either have to shy away from those issues, flip flop or “stick his finger in their face and say, ‘Yeah, yeah, I expa...

Ohio School Boards Association says new law could mean state takeovers of schools virtually anywhere
It would be nice if the state were this concerned about the dozens of failing charter schools.

Copyright © 2015 WKSU Public Radio, All Rights Reserved.

 
In Partnership With:

NPR PRI Kent State University

listen in windows media format listen in realplayer format Car Talk Hosts: Tom & Ray Magliozzi Fresh Air Host: Terry Gross A Service of Kent State University 89.7 WKSU | NPR.Classical.Other smart stuff. NPR Senior Correspondent: Noah Adams Living on Earth Host: Steve Curwood 89.7 WKSU | NPR.Classical.Other smart stuff. A Service of Kent State University