Auto Dealer Remains Open
By CARRA HIGGINS AND BEN SIMMONS, Staff WritersMany businesses throughout the nation have seen their share of financial problems resulting from the economic downturn. Tygart Valley Chevrolet Cadillac Subaru on the Beverly Five-lane is no exception. The dealership recently lost its local floor planner, closed its service department, laid off more than half of its employees and is facing legal action from a local bank.
General Manager Rick Wyatt says the corporation is doing "its very best" to keep its franchises and he can't emphasize enough that the dealership is still open. If the lot were to close, that decision would be up to General Motors, the franchise, Wyatt said.
"There's one thing I want to get clear ... they've (the community) closed me up a hundred times already," Wyatt said. "We're not closed."
"If we were to close, if General Motors, Subaru or GMAC ... one of the franchises or corporations that control the new car business were to close us, the customer obligations will be attended to by the company (Tygart Valley Chevrolet Cadillac Subaru). That means to resolve their pay-off issues and to take care of their title work."
When local floor planner Mountain Valley Bank pulled from the dealership, the business was placed in a difficult financial situation, Wyatt explained. He declined to elaborate on why MVB is no longer the floor planner, but added no other local banks are available to serve as the floor planner.
GMAC is acting as the current floor planner, Wyatt said.
"The main thing I really want people to know is their titles and their pay offs will be attended to and that should be within the next short period," Wyatt said. "We're working toward resolve with GMAC and they're allowing us to work toward that resolve. We're trying to keep our franchises intact."
Virginia Mitchell of Elkins is one person who claims a vehicle she traded to Tygart Valley Chevrolet Cadillac Subaru was not paid off as part of her agreement. She traded in a 2002 Ford Focus for a 2005 Chevy Impala to the dealership in September. She said her bank recently informed her that it had not received the payoff on her old vehicle.
"I can't afford to have my credit ruined like this," Mitchell said. "The bank told me I could refinance the (Ford Focus), but why would I want to do that. I don't have it anymore. This has got my nerves upset something terrible."
Mitchell said she was also given an extended warranty with the automobile, but was told by mechanics it wasn't valid when she went to get it serviced. She said she is currently seeking legal counsel.
Those who purchased extended warranty options still have their packages, Wyatt said. He also said no one who has purchased a vehicle from the dealership will lose their investment.
"There was some confusion because one company pulled out from us and we needed to replace those service contracts from the company that pulled," he said.
Wyatt declined to disclose which company is no longer affiliated with Tygart Valley Chevrolet Cadillac Subaru.
Those with GM and Subaru cars in need of service have been referred to other local dealerships and everyone seems to be cooperating with the arrangement, Wyatt said.
Financial difficulties all across the country have led to one in five car dealerships closing its doors, Wyatt said. Tygart Valley is not an exemption to the economic problems, Wyatt explained.
"For example, if the franchise was to pull out, the investment would be significantly a terrible loss to ownership and the community," Wyatt said. "But ownership has no way of coming up with $2 million worth of cars ... I think that's a pretty real explanation."
Citizen's National Bank of Elkins is one local entity with which the dealership will need to fulfil obligations. CNB is seeking damages from Tygart Valley Chevrolet Cadillac Subaru in a civil action complaint filed Wednesday in Randolph County Circuit Court. CNB claims damages in the amount of $495,206.33, plus its interest, costs and fees incurred by a breach of contract.
On Sept. 8, 2006, Tygart Valley Chevrolet Cadillac Subaru's predecessor, Tygart Valley Motor Co., executed a note, payable to CNB in the original principal amount of $505,000, the complaint reads. On Feb. 29, 2008, Tygart Valley Chevrolet Cadillac Subaru Inc. assumed the obligations of Tygart Valley Motor Co.
According to the complaint, Tygart Valley Chevrolet Cadillac Subaru is in default on its loan and therefore in breach of contract by virtue of its failure to make timely payments as required under the terms of the note.
CNB is requesting the court to "issue a judgement against the defendant, Tygart Valley Chevrolet Cadillac Subaru Inc. and award it damages proximately caused by the breach, plus attorney fees and costs, and any such further relief as the Court deems appropriate."
Friday morning, a "skeleton" staff of seven was working at the lot, according to Wyatt. Most of the 11 employees who have been laid off will receive unemployment and if the dealership becomes fully operational again, the laid off employees will be asked to return, Wyatt added.
The dealership opened in 1973 and in 2003 changed its name to Tygart Valley Motors, according to Wyatt, who said he has served as the general manager for just more than a year. According to the West Virginia Secretary of State's Web site, the name was changed to Tygart Valley Chevrolet Cadillac Subaru in October 2007.
Nationally, the overall car sale market has declined by more than 50 percent and financiers have decreased their lending, Wyatt said.
"It's a heavy spot to be folks," Wyatt said. "It's a very heavy spot to be and people don't need sorrys, they need resolve. Even though we are sorry, it's our intention to quickly, this month, resolve for and/or assistance to our obligations and their needs."
|
amcdaniel80
|
|
|---|---|
|
11-10-08 9:47 AM
|
I am having the same problem with the warranty I purchased at Tygarts Valley. I contacted Universal Warranty Co. - Vehicle One, the company my warranty was through and they said they did not back out they just never received my contract or payment from Tygarts Valley. Tygarts Valley has no right to give us a replacement warranty. When they shut down we will not have warranties anyhow. You can contact Vehicle One to see if your warrant was paid and is valid by calling Vehicle One @ 1- 800-285-5520.
|