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Archive for Friday, January 29, 2010

Crown Chevrolet seeking arbitration

The owner of Crown Chevrolet is taking GM to arbitration to settle financial issues.

January 29, 2010

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Miles Schnaer wants to keep selling Chevrolets, and he’s preparing to spend thousands of dollars to seek reversal of GM’s planned dismissal of his Lawrence dealership later this year.

Schnaer, president of Crown Chevrolet, 3400 S. Iowa, is among 37 Kansas dealers to pursue arbitration to prevent or reverse dealer closures announced last year by automakers.

“We’re preparing our case like we’re going to court, that we’re worthy,” said Schnaer, who opened his Chevrolet dealership in Lawrence 15 years ago. “It’s like going after one of your kids that somebody’s taken from you: You’ll spend all you can. … If you go to get ’em, you’re going to get ’em.”

Schnaer filed his documents earlier this week with the American Arbitration Association, the group enabled by Congress to arbitrate cases for dealers who disagree with automakers’ moves to cease franchise agreements in the face of corporate reorganizations and declining auto sales.

Nearly 1,600 dealers nationwide met this week’s filing deadline. Cases are to be decided by June 21.

Another Lawrence dealer is sitting the proceedings out.

Loris “Junior” Brubeck, who had sold Chrysler vehicles for 53 years, opted against arbitration. Chrysler took his dealership away this past June, leaving him to continue selling new Volkswagens and used cars, while also running a body shop and handling parts and service.

Even if he would have sought and won in arbitration, Brubeck said, Chrysler would impose a new franchise agreement that would mandate building upgrades and higher inventory levels.

“I’d played that game with them for 50 years,” Brubeck said. “I just decided I didn’t want to start a new game.”

At Crown, Schnaer knows what he’s up against: “General Motors is not happy because I’m doing a better job with Toyota than I am with Chevrolet.”

But he’s confident that just because he sells Toyotas next door — Crown Toyota occupies a larger showroom, on a larger lot — doesn’t mean he can’t still move Chevys.

“They woke up and realized that terminating dealers doesn’t necessarily mean they’re going to be a better company,” said Schnaer, who remains “fairly confident we will succeed in arbitration.”

Comments

BigPrune 4 years, 10 months ago

It's nice the Obama Administration uses strong arm tactics against private businesses if those businesses didn't donate to his campaign. I like that mobster Chicagoesque 'i don't get mad, i get even' attitude. It fits in well with the totalitarian predictions for Obama's regime.

In the meantime, the peace loving, anti-corporate America, freedom of speech (or so they say), hemp friendly people turn a blind eye. Yes he can!

yankeevet 4 years, 10 months ago

Gen Motors nothing but junk........and overpriced.....bye bye..

M. Lindeman 4 years, 10 months ago

Jim Clark got hosed by Crysler. I know I won't buy another Crysler product again. When they take away a great dealer with great customer service, and leave shall we say less than 5 star dealers. Well Crysler deserves to die a slow death on the side of the road.

KS 4 years, 10 months ago

Schnaer is probably a Republican. Have no idea, but surely a Democrat would not have lost their dealership.

Keith 4 years, 10 months ago

The paranoid righties are out in full force this AM.

Richard Heckler 4 years, 10 months ago

Guess big business cannot do without socialism aka big government.

Where is all of that "free market" attitude? Why can't GM decide who they want to support as dealers?

anon1958 4 years, 10 months ago

igPrune (Anonymous) says…

It's nice the Obama Administration uses strong arm tactics against private businesses if those businesses didn't donate to his campaign.

Wow! this is really out there even compared to most lunatic right wing fantasies.

SouthWestKs 4 years, 10 months ago

anon1958,

You need to stop drinking the "Kool Aid"!! Also get a way from the "MSM"..

imastinker 4 years, 10 months ago

I will never buy a new GM OR Chrysler anymore.

It's funny, I just sold a 2006 GMC pickup that I had bent the differential cover on. It was a $50 item but GM was out of stock for months this summer - apparently they stiffed the supplier in the bankruptcy. My 2006 GMC sat half the summer until I found a used part on the internet at twice the cost of a new one.

The local junkyards wouldn't sell because they wanted to sell the whole rear end, they wouldn't part it out unless it was already ruined. I can't blame them - but it was sure frustrating to have a truck - still under warranty - that you can't find parts for.

I sold it.

frank mcguinness 4 years, 10 months ago

Wow big prune and southwestks have both officially lost their minds.

Jimo 4 years, 10 months ago

Ooohhh...be careful - Obama is monitoring this site, taking down names and keeping score.

yankeevet 4 years, 10 months ago

I just passed a new Chevy truck broken down on the side of the road..........passed it by; driving my Toyota Tacoma.....

imastinker 4 years, 10 months ago

Beerguy - did you know that Toyota's gas pedal issues are not even related to their equipment? They come when people trade out the floor mats in the car for another one that doesn't hook like the factory ones do.

Randall Uhrich 4 years, 10 months ago

American buyers have figured out what overpriced junk Chevy and all GM cars are. Crown Auto is better off with Toyota. GM's management policies has made them worthy of extinction. If it wasn't for the number of workers they employ, they would have already been forced into oblivion .

gccs14r 4 years, 10 months ago

Ima,

There are two separate gas pedal issues at Toyota. One involves the mat jamming the pedal, and the other involves binding in the pedal mechanism itself.

Richard Heckler 4 years, 10 months ago

Hats off to Toyota for cutting off further sales on those models until problems can be fixed. According to a radio news cast that step has never be taken.

easyliving 4 years, 10 months ago

This comment was removed by the site staff for violation of the usage agreement.

easyliving 4 years, 10 months ago

Everyone in my Republican family owns a Toyota....That's the way we were raised. My Dad used to always say..."Son, buy foreign in private and cry for america in public....that is the Republican way."

Venom 4 years, 10 months ago

Defender (Anonymous) says…

“Beerguy - did you know that Toyota's gas pedal issues are not even related to their equipment? They come when people trade out the floor mats in the car for another one that doesn't hook like the factory ones do.”

Hmmmm, makes no sense whatsoever. Companies do not recall products when aftermarket items cause an issue. Nope, doesn't work that way.

Venom says Thanks glad not everyone is as stupid as "beerguy" I will take the word to NTSB over some moron any day

merrill (Anonymous) says…

Hats off to Toyota for cutting off further sales on those models until problems can be fixed. According to a radio news cast that step has never be taken.

Venom says Never amazes me how many people think they know about something they are clueless about. About every auto manufacturer has stoped sales of there cars to correct flaws in design. Ya hats off to Toyota for trying to cover the problem up until it was unavoidable

RoeDapple 4 years, 10 months ago

http://money.cnn.com/2010/01/29/autos/toyota_recall_expanded/

"The recall is to correct a problem that could cause the gas pedal, as it ages and becomes worn, to stick partway down under certain circumstances."

"The gas pedal recall is separate from an earlier one, begun in November to fix a problem in which the gas pedal can become caught on the edge of the removable floormat."

Flap Doodle 4 years, 10 months ago

They need to come up with the pay-to-play that Chicago-style politics normally requires. A sack of unmarked $20s sent to 1600 Penn Ave would be a start.

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