Dave Stickney and Ron Matthew from Mesabi Sign Company of Virginia, MN remove the signpost and the GM/Chevrolet sign at Grand Marais Motors on November 2.
On November 2, 2010, Mesabi Sign Company came to Grand Marais. Unfortunately not to erect a sign, but to take one down. TheChevrolet and General Motors signs at Grand Marais Motors were taken down and dismantled, the final step in the closing of the Grand Marais dealership. However, most customers may not even notice the change, because the dealership owners, the Lashinski family, have continued with the many other services they have always offered.
It wasn’t a pleasant job for Dave Stickney and Ron Matthew from Mesabi Sign Company of Virginia, MN. Stickney said he was the one who put the trademark Chevrolet sign up in 1996. “I hate to see this,” said Stickney. “I’d rather put them up.”
Although it was disheartening to see the signs removed, Steve Lashinski of Grand Marais Motors said he knew this day was coming. The dealership was notified in May 2009, along with hundreds of others across the nation that its contractual agreement would not continue past October 2010. Gene Lashinski confirmed this week that their relationship with General Motors came to an end on October 31, 2010.
In May 2009, it was hoped that GM would reconsider. The Lashinski family, which founded the Grand Marais GM/ Chevrolet franchise in March 1996, challenged GM’s plan. Theywrote, “We believe that the community of Grand Marais deserves a Chevrolet dealership. We also believe Grand Marais benefits from having Grand Marais Motors. We provide jobs, tax base, support other businesses, and have made many donations to our community.”
The Lashinski family sought the assistance of federal legislators to no avail. However, they and their nine employees were bolstered by the community response to the announcement. Grand Marais Motors was flooded with letters from customers, supporting the dealership’s attempt to keep the franchise.
The decision to eliminate the rural dealership still puzzles Gene Lashinski. Grand Marais Motors was considered a small dealer in terms of unit sales, but it consistently had excellent consumer satisfaction scores on purchase, delivery, and service for GM, Chevrolet, Buick, Cadillac, and Pontiac. GM didn’t give an official reason for the closure until February 2010. Lashinski said GM claimed the reason for the closure was that Grand Marais Motors had sold fewer than 50 new vehicles in the previous year. “It’s frustrating,” said Gene Lashinski, “because our satisfaction ratings were perfect—and much better than other dealers in the area.”
However, the Lashinski family and staff is looking toward the future. The business will continue with used auto sales, as it has without GM’s help since May 2009. As soon as the closure announcement was made, access to new GM/Chevrolet vehicles was cut off, said Gene Lashinski—even a few vehicles that had already been ordered for customers were not delivered.
“We’ll continue selling used cars, but it will be a little more difficult. We will be on our own at auctions and such, but we can do it. We’ve gained a bit of knowledge of cars in the 13 years we’ve been doing this,” he said.
The Grand Marais Motors mechanics can still perform maintenance on GM vehicles, as they have always done for other makes and models. “We’ll work on pretty much anything,” said Lashinski. “Maybe not a Lamborghini, but we’ve worked on Mercedes, Volvos, Fords and Subarus”
That’s the good news for the small company. Also helpful for the future is that the Lashinski family had already diversified its business. Before becoming a GM/Chevrolet franchise, the family already owned and operated Steve’s Sports. That business was established in 1991, offering Yamaha, Husqvarna, and Auto Value auto parts. In 1995, a Bombardier franchise was added.
And oddly, there is a benefit for the business ending the relationship with GM/Chevrolet. Thelocal company no longer has to pay a $3,000 monthly fee to GM. Thatis one reason why Gene Lashinski said his family decided not to pursue another dealership. Becoming a GM dealer meant an initial investment of $100,000, with an additional $14,000 capital outlay over the 13 years of working with GM. “We were trying to build for the long-term and they weren’t,” said Lashinski. “We can’t take that kind of risk again.”
Part of the cost of being a dealership was the lease for the Chevrolet/GM signs. Grand Marais Motors paid $50 a month to have a sign at their business. Adding insult to injury, the bill for removing the Chevrolet/GM sign will go to Grand Marais Motors.
Although he is angry over the way the dealership closure was handled, Gene Lashinski tries to keep a positive outlook. Asking what he would like to say to his customers, he reiterated what he said back in May 2009, “We are not going anywhere. We are committed to Grand Marais and this community. We will continue to provide excellent service to our customers.”
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