Near road's end, GM dealership asks why
Boyles Motors Inc. challenges closing, files appeal letter
by Ahmad Safi
Tuesday, June 16, 2009
Angry over troubled automaker General Motors pulling his franchise, Boyles Motors Inc. owner Bud Boyles, 71, said he feels sold out after a lifetime of selling vehicles.

Angry over troubled automaker General Motors pulling his franchise, Boyles Motors Inc. owner Bud Boyles, 71, said he feels sold out after a lifetime of selling vehicles.

MARYVILLE, Mo. — Father and son once believed in the General Motors brand. Now their dealership is on its hit list.

The struggling automaker has told Boyles Motors Inc. to sell its last new Chevrolet, Cadillac, Buick, Pontiac or GMC vehicle by October 2010. A 37-year bond between the small dealership and GM will officially end.

Boyles Motors is one of about 1,300 so-called “underperforming, low-volume dealerships” in the United States. The bankrupt auto giant has shed those GM dealerships as part of its survival strategy to become more nimble.

The elder Boyles has choice words for GM. He feels sold out.

“When we owe GM zero dollars, how can we cost them anything?” said Bud Boyles.

The younger Boyles imagines a town where GM vehicle owners travel 45 miles in any direction to get service.

“Maybe GM doesn’t want to be in smaller towns,” David Boyles said. “I don’t know.”

The unceremonious closure of the family dealership in Maryville isn’t entirely unexpected.

Last year, revenues were in the red. New cars, used cars, parts, service — nothing much sold. But then things were improving.

In 2009, only January had been in the red. And then it came.

In mid-May, Federal Express delivered an envelope. Inside, a GM form letter: “We have conducted an analysis of your dealership’s operations and market,” the letter read. “... we do not see that GM can have a productive business relationship with Boyles Motors.”

That afternoon, the Boyles huddled the dealership’s 19 employees. There were more questions than answers.

Efforts to clarify or fight the closure have been difficult. An appeal letter to GM has gone unanswered. Missouri Sen. Claire McCaskill’s office has opened an inquiry.

According to its letter, GM ranks dealerships by historical performance such as sales, customer satisfaction, facilities and the amount of monies invested in the dealership. David Boyles said the dealership meets or exceeds all benchmarks.

Bud Boyles, 71, says the closure may be part of a long-fractious relationship with GM.

“They want us to stock a lot more cars than feasible. If we did everything they wanted us to do, we’d go broke,” he said.

So far, community support in the college town of just more than 10,000 is high for the Boyles.

“He’s trying to make a business, push a product and support the locals,” said former Maryville Mayor Dale Mathes. “It’s a rotten deal.”

The Boyles now consider the prospect of finding a new brand when their GM franchise ends in 16 months.

“In any small community, when you take part of it away, it hurts,” Bud Boyles said. “GM calls us an under-par dealer. What the hell are they? We didn’t have to file bankruptcy, and they did.”

Ahmad Safi can be reached at ahmadsafi@npgco.com.