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Weaver Truck and Auto Center has furloughed 22 workers, and its GMAC-bankrolled vehicles are being removed from the lot Friday as expected. But owner Tom Weaver said he still is negotiating to line up financing or fill his lot with other cars to avert a shut down.
“I’m still a licensed General Motors dealer,” Weaver told The Union. “I don’t want to throw in the towel.”
The outcome of the discussions on financing or getting other new GM vehicles is expected to become more clear by next week, Weaver said. Weaver has several weeks to replace the vehicles, including Chevrolet, Cadillac, GMC, Buick and Pontiac lines, under terms of his dealership agreement with GM.
About 12 people will remain on the job at Weaver Auto, he said. At stake are the remaining jobs, as well as significant tax revenue for the city of Grass Valley.
The dealer’s service and parts center will be open on Friday, Weaver said. The service center’s future also will be more clearly known by next week, he said.
GMAC also is removing parts, but Weaver said he can get GM parts from someone else — just like the vehicles.
Starting at 9 a.m. a caravan of carriers will begin removing the nearly 120 vehicles of GMAC from the lot. Under a court ruling last week, GMAC can pick up the vehicles starting Friday. Sheriff’s deputies will be on the scene to help ensure an orderly transport of the inventory, Weaver said.
GMAC had sought to take possession of the vehicles last week.
Weaver is not alone in parting ways with GMAC.
Like many GM dealers across the county, Weaver has credit through GMAC for his fleet, called floorplan financing. But GMAC has been tightening up on dealers everywhere, demanding they add to their principal and raise the credit bar for buyers.
Many dealers are voluntarily leaving GMAC as their floorplan lender in the wake of the new restrictions, according to a recent survey of more than 500 dealers by Automotive News.
Last week, the California New Car Dealers Association warned GMAC that the new demands and restrictions could lead to more dealership closures and economic fallout in communities throughout the state.
Weaver also is trying to refinance the loan on his new, $10 million dealership on Idaho-Maryland Road.
GMAC is the former lending division of GM and finances billions of dollars in car and house loans. GM sold a majority stake in the unit in 2006 to a consortium headed by Cerberus Capital Management and banks. Cerberus also bought Chrysler.
GM and Chrysler have been in preliminary merger talks. The slowdown in the credit markets has plagued GMAC, GM and Chrysler since late last year.
“I’m still a licensed General Motors dealer,” Weaver told The Union. “I don’t want to throw in the towel.”
The outcome of the discussions on financing or getting other new GM vehicles is expected to become more clear by next week, Weaver said. Weaver has several weeks to replace the vehicles, including Chevrolet, Cadillac, GMC, Buick and Pontiac lines, under terms of his dealership agreement with GM.
About 12 people will remain on the job at Weaver Auto, he said. At stake are the remaining jobs, as well as significant tax revenue for the city of Grass Valley.
The dealer’s service and parts center will be open on Friday, Weaver said. The service center’s future also will be more clearly known by next week, he said.
GMAC also is removing parts, but Weaver said he can get GM parts from someone else — just like the vehicles.
Starting at 9 a.m. a caravan of carriers will begin removing the nearly 120 vehicles of GMAC from the lot. Under a court ruling last week, GMAC can pick up the vehicles starting Friday. Sheriff’s deputies will be on the scene to help ensure an orderly transport of the inventory, Weaver said.
GMAC had sought to take possession of the vehicles last week.
Weaver is not alone in parting ways with GMAC.
Like many GM dealers across the county, Weaver has credit through GMAC for his fleet, called floorplan financing. But GMAC has been tightening up on dealers everywhere, demanding they add to their principal and raise the credit bar for buyers.
Many dealers are voluntarily leaving GMAC as their floorplan lender in the wake of the new restrictions, according to a recent survey of more than 500 dealers by Automotive News.
Last week, the California New Car Dealers Association warned GMAC that the new demands and restrictions could lead to more dealership closures and economic fallout in communities throughout the state.
Weaver also is trying to refinance the loan on his new, $10 million dealership on Idaho-Maryland Road.
GMAC is the former lending division of GM and finances billions of dollars in car and house loans. GM sold a majority stake in the unit in 2006 to a consortium headed by Cerberus Capital Management and banks. Cerberus also bought Chrysler.
GM and Chrysler have been in preliminary merger talks. The slowdown in the credit markets has plagued GMAC, GM and Chrysler since late last year.
