Published: November 30, 2009 10:41 pm      

Local car dealerships form partnership

JOHNSTOWN — A partnership of two area car dealer groups will save Johnstown area jobs threatened by General Motors’ decision to pull 1,100 dealerships nationwide.

Thomas Dealerships and Team Dealership announced the merger of Team Chevrolet of Johnstown and Thomas Honda of Windber to create Thomas Team Honda at the soon-to-be former Chevrolet location, 1920 Bedford St.

“I think it is good for everybody,” Manager John Cycyk said at Team Chevrolet. “We have the opportunity to build something very special.”

“We are thrilled to enter a partnership with another exemplary dealer,” Mark Thomas of Thomas Dealerships said. “The job creation and extended line of provided services will benefit the entire community.”

Current jobs at both locations will be preserved by the merger, which is expected to generate 10 to 20 percent more jobs over the next couple years, Thomas said.

Monday’s press release and a weekend announcement by mass mailing end weeks of speculation about Team Chevrolet’s future.

Rumors that the dealership would close were fueled by the dwindling number of new Chevrolets on the lot and in the showroom.

On Monday, more than half the showroom models were used cars, and Cycyk acknowledged there are no 2010 models on the property.

By the end of the week, the remaining new Chevrolets will be moved to Team’s Huntingdon location, but Chevrolet warranty service will continue to be available locally, Thomas stressed. Both dealer groups have General Motors factory-authorized service departments at other locations, including Thomas Buick GMC at 750 Eisenhower Blvd. in Richland Township.

“We are going to try to make it as convenient as possible,” Thomas said. “They can bring their Chevrolet here. If it is out of warranty, we’ll fix it right here. If it is in warranty, we will see that it gets to the authorized service location and back here.”

The current Team building will be renovated to company specifications as a state-of-the-art Honda facility, Thomas said.

All inventory from the Windber location will be moved onto the Bedford Street lot early next year, he said.

Team management was contemplating the future of its three-year-old facility in light of GM cutbacks.

“This worked out for everybody,” Thomas said. “We needed a bigger facility and more people. The timing was fortuitous for everyone.”

Thomas originally planned to move the Honda dealership to a new facility on Eisenhower Boulevard in Richland. Development plans were presented to the township in September 2008.

“The market kept changing around us,” Thomas said. “We were looking for the best situation.”

A partnership with Team was cemented after exploring new construction possibilities and talking to other dealers in danger of losing their franchises.

Team moved into its new facility in May 2006, bringing the historic dealership from its longtime home in the Hornerstown section of Johnstown. There had been a car dealership at 232 Horner St. since 1913, when Carl Leitenberger moved the city’s first car-repair shop from Baumer Street and began selling autos.

Team continues to operate Team Kia in the Richland Plaza on Scalp Avenue, along with locations in Huntingdon and Duncansville.

Thomas has dealerships in Bedford, McConnellsville and Cumberland, Md.

General Motors and Chrysler each announced dealership cutbacks in May.

GM told about 1,100 of its dealers – one in five – that they would be dropped by late next year. Chrysler decided to eliminate 789 dealerships while reorganizing under bankruptcy protection.