Zeigler Chevrolet in Bamberg, SC is closing down

[XDCX]

News reports indicate that Zeigler Chevrolet in Bamberg, SC will be closing down within the next two weeks and the city of Bamberg will be losing their only new car dealership. For the full report - click here

While dealership closings were quite common in 2008 - 2011 I'm actually surprised to see there's not a buyer for a store like this. Isn't a store like Zeigler Chevrolet a dream for someone who's looking to become a first generation car dealer? A small store in a rural market with low overhead and minimal capital requirements.

Granted, I don't know the South Carolina car market and perhaps this store/location is no longer viable. I just hate to see a family close their dealership when the overall car market is as good as it's been in years.

[mryan55]

I am surprised that there is not a buyer for a point like this. It wouldn't be too expensive and it might make a good starter store for someone.

[DealerEx]

Originally Posted by XDCX

While dealership closings were quite common in 2008 - 2011 I'm actually surprised to see there's not a buyer for a store like this. Isn't a store like Ziegler Chevrolet a dream for someone who's looking to become a first generation car dealer? A small store in a rural market with low overhead and minimal capital requirements.

Not enough info in that story to really know what the reasoning is, but it might be that they don't think they can afford to meet requirements GM is insisting on. When GM rewrote the franchise agreement following the terminations in June of 2009, the new agreement pretty much gave them total control of the site and facility. The dealer agreement says that the dealer will comply with all manufacturer requirements for: facilities, training, inventory stocking, MSR, signage, etc... They acquired the store in 1973...if they are facing a remodel to meet GM's EBE requirements there is no such thing as "low overhead and minimal capital requirements" for them....or anyone that might have been interested in purchasing it.

[ohiobuckeyes]

It would be a great starter store....have been told that GM has now the first right with all Buy/Sells and if it looks good on paper GM, will refuse and make it a Motors Holdings Minority point no matter what. So for a first time buyer its not going to happen period. And this information comes from a GM insider who works with Motors Holdings.

[steve_biegler]

This is a shame. We don't know the full story and probably never will. Just another case of the big getting bigger and the small guy going away. I should be use to it by now, but I'm not. Hopefully the grandson will have fond memories of his grandfather and the store. Good luck to them.

[XDCX]

Originally Posted by DealerEx

Not enough info in that story to really know what the reasoning is, but it might be that they don't think they can afford to meet requirements GM is insisting on. When GM rewrote the franchise agreement following the terminations in June of 2009, the new agreement pretty much gave them total control of the site and facility. The dealer agreement says that the dealer will comply with all manufacturer requirements for: facilities, training, inventory stocking, MSR, signage, etc... They acquired the store in 1973...if they are facing a remodel to meet GM's EBE requirements there is no such thing as "low overhead and minimal capital requirements" for them....or anyone that might have been interested in purchasing it.

You make an excellent point.

I have heard mixed reports about GM pushing for facility upgrades - some reports suggest that GM is threatening dealers and other reports suggest that GM is letting their dealers make the decision whether or not to upgrade their facilities. That said, dealers who elect to delay upgrading their facility lose out on EBE payments placing them at a competitive disadvantage.

[XDCX]

Originally Posted by ohiobuckeyes

It would be a great starter store....have been told that GM has now the first right with all Buy/Sells and if it looks good on paper GM, will refuse and make it a Motors Holdings Minority point no matter what. So for a first time buyer its not going to happen period. And this information comes from a GM insider who works with Motors Holdings.

Interesting - thanks for the information.

I remember one point where Chrysler was really pushing to add minority dealers and they were using their "first right of refusal" to pick up some stores. That said, I've been told that a buy/sell can be structured in a manner which makes it less appealing for an OEM to exercise their buyout option.

Additionally, concerning the Zeigler Chevrolet point, I highly doubt that GM would want this point for a minority dealer because it's too small and the market is too remote.

[XDCX]

Here's a picture of the store from Google Street View:

Frankly, I don't think the store looks too bad.....

It's got decent exposure on a four lane highway with plenty of display space for new and used vehicles. I used Google Street View to confirm that the dealership has a six-bay shop and a small fenced-off tow yard behind the dealership.

While the city of Bamberg only has a population of about 3,000 there are two major markets, Augusta and Charleston, that are within 80 - 100 miles.

[XDCX]

Originally Posted by steve_biegler

This is a shame. We don't know the full story and probably never will. Just another case of the big getting bigger and the small guy going away. I should be use to it by now, but I'm not. Hopefully the grandson will have fond memories of his grandfather and the store. Good luck to them.

I sent an email to the dealership letting them know about the thread and inviting them to join the forum if they had information they wanted to add to the thread.

I received a PM from one of our members who was pretty certain the store had been listed with a broker at one time - so it appears the owners had taken steps to find a buyer for their store.

[steve_biegler]

Did anyone notice the street name?

[XDCX]

Originally Posted by steve_biegler

Did anyone notice the street name?

Yeah, I saw that too.

Google Maps doesn't seem to recognize a "Chevrolet Street" in Bamberg, SC so I'm guessing that's something the dealership did on their own or perhaps something the city did for the dealership.

[mryan55]

I'm guessing the dealership did it on their own... wild guess. Another note -- I don't know if I could ever remember county road names like S5 209... at least Indiana is all laid out on a grid system so it's easier.