Daniels Chevyland owner says she'll fight to keep GM contract

Colorado Springs oldest car dealership survived the 1920s stock market crash, the Depression, World Wars I and II and the energy crisis of the 1970s.

But it may not survive the auto industry's woes of this century.

Daniels Chevyland, celebrating its 80th anniversary this year, was one of 1,100 dealerships in the U.S. to receive a letter Friday from General Motors Corp., saying the manufacturer would not renew its franchise contract when it expires in October 2010, Elizabeth Daniels, fourth-generation owner, said Monday.

"We were totally shocked. We never received any notice that something is wrong with our dealership. Everybody was like a deer in the headlights," she said.

GM is reducing its dealership network as part of a major restructuring move to avoid filing Chapter 11 bankruptcy protection.

Mark LaNeve, vice president of vehicle sales, service and marketing for General Motors North America, said late last week the dealers who received the letter should not have been surprised. The automaker sends dealers quarterly and yearly assessments on sales performance, customer satisfaction and overall profitability, he said.

Dealers on the list ranked below other dealerships in their state and, in most cases, were losing money and in "danger of going out of business," LaNeve said.

Daniels disagrees that her business is failing, and said she plans to file an appeal to try to save her franchise sales and service agreement. GM has given dealers two weeks to submit an appeal.

"This isn't just about new cars. We have strong niches that we've been working for decades - certified used sales, parts sales, fleet sales. We are healthy and viable," Daniels said. "The letter is vague and does not address the concerns about this store in particular."

Ann Winslow, executive director of the Colorado Springs Automobile Dealers Association, said Monday that she found the news hard to believe.

"It's really sobering and should be sobering for our entire community. Not only is it our oldest dealership, it's been so supportive of many community activities. It would be a real loss," said Winslow, whose family owns Winslow BMW.

Daniels said family members have been "Chevy people" since her great-grandfather, Cady, opened the business on July 5, 1929. He built a facility on Weber Street, where the former home of local gold miner Winfield Scott Stratton had stood.

"We're a people store, a family store, and this is a real shame. We've had our tough times and revamped our business model and were on the road to rocking," Daniels said.

Daniels and her father, Bill, took over ownership in the fall of 1996 and decided to trade their families' landmark building for a better location.

The pair opened a building in February 1999 on 10 acres overlooking Motor City.

Daniels was one of the last car dealers to leave downtown Colorado Springs for an auto mall. Today, the dealership has 75 employees, down from 100 through attrition, Daniels said, and she plans on conducting business as usual for now.

"We've taken good care of our customers and community and given back, and hopefully people have respected that," Daniels said.

Although she said she has a plan if GM does not accept her appeal and she loses her sales and service agreement, Daniels said she's not prepared to discuss it at this time.

"We're not focusing on that right now. There's no reason not to keep the wheels turning," she said.

"We don't understand how you can have a store this large, this new in terms of facilities and that has so many strong points - and still be on this list. Competition is healthy and keeps people honest. When there's not competition, it's not in the best interest of the consumer."