After Getting the Boot, Car Dealers Regroup
CLARKSTON, Mich. — For two decades, Chuck Fortinberry made a decent living selling Chryslers and Jeeps in this town 40 miles north of Detroit.
Then last year, as part of Chrysler Group LLC's bankruptcy reorganization, Chrysler sent a letter informing him that his Clarkston Chrysler Jeep dealership was among 789 dealers the automaker was dropping.
Since then, Fortinberry has been on a journey to salvage something from his business and map out a new future. About 10 miles from his darkened dealership, Fortinberry has opened Ironton Rustic Furniture and Accessories, offering everything from tables and chairs to beds and couches, reported The Wall Street Journal.
"Selling Chryslers wasn't just my job, this is what I was," the 54-year-old Fortinberry said. "I was the Chrysler-Jeep dealer in Clarkston. I was the guy you went to when you needed jerseys for your baseball team. There was a lot I had to get through but I knew I had to move on."
Across the country, hundreds of car dealers are facing the same challenge while struggling with the taxes and other costs of maintaining a large piece of commercial property. Selling the land isn't an option for many of them, given the poor real-estate market
Last year, 1,603 dealerships closed their doors, most as a result of the Chrysler and General Motors Co. bankruptcies, according to Urban Science, a Detroit-based consulting firm. An additional 309 dealerships went dark in the first eight months of this year.
The closures leave about 18,170 dealerships in the U.S. employing 912,200 workers. More closings are now on tap after Ford Motor Co. last week said it wants to cut 175 of its Lincoln dealers within the next two years.
A dealership's closure can have a big economic impact in a small town. The average dealership last year employed 49 people and had an annual payroll of $2.4 million, according to the National Automobile Dealers Association. The payroll for all U.S. dealerships last year was $43.5 billion, and represented almost 13 percent of the nation's total retail-trade payroll, the association said.
Although there are no national studies, auto makers say many of the affected dealers who were already selling other brands have simply carried on by focusing on those remaining makes or by selling used cars.
Chrysler said as many as 85 percent of the 789 dealers it dropped are now selling other car brands. GM offered no estimate of how many of its 1,549 dealers set to lose their GM franchises Nov. 1 might stay in business by selling other brands.
More Industry

RV Group Expands Carolina Footprint
Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.
Read More →
Agent Acumen
An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.
Read More →
Missed Maintenance Creates Opportunity
As families get back on the road and into daily school routines, service drives have an opportunity to capture customers who are behind on recommended vehicle maintenance.
Read More →
Mitsubishi Unveils U.S. Plan
The automaker announced a strategy that includes an expanded lineup and dealership presence, along with more ‘rugged’ and electric models.
Read More →
Selling to Grow
The question of whether you should sell your agency and if so, when, is up to you. But it’s a question worth asking to ensure you keep the business on the right path for yourself, employees and clients.
Read More →
Recalled Vehicles Hit 5-Year High
Though the number of events has fallen so far this year, impacted units are up significantly. Meanwhile, regulators consider consumer notification changes.
Read More →
Auto Group Acquires Top-Performing Rooftop
Car Pros sold its Kia Huntington Beach location to Sutherlin Automotive Group, marking the buyer’s third location in Southern California.
Read More →
China as Pacesetter
Automotive leaders huddled on where North America stands in the global picture and how it can strengthen its position against the Asian juggernaut’s surging industry.
Read More →
BMW Concept Car Makes Fuel to Burn
The prototype developed in concert with a South Carolina university engineering team generates more solar energy than it uses in a typical daily commute.
Read More →
South Carolina Auto Group Downsizes
Florida-based group Holler-Classic has acquired four rooftops, its first in South Carolina, from Dick Smith Automotive Group.
Read More →