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GM recalls far from calamity for some dealers who find new customers, business

Friday, 25 July 2014


The news about deadly crashes linked to a faulty ignition switch, followed by wave upon wave of recalls, did not bode well for General Motors dealers earlier this year. It conjured visions of worried, frustrated drivers pouring onto lots like Raymond Chevrolet, outside of Chicago. But according to Robbie Long, service director for the dealer and nearby Ray Chevrolet, what looked like ‘great adversity’ has turned into an opportunity. The hundreds of customers bringing old cars into the family-owned dealerships leave in clean cars with a bucket of goodies. Some drive home a newly purchased car. And the repairs, paid for by GM, are modestly profitable, dealers say, helping to pay general expenses as well as bringing in customers who might have been lost. ‘In many cases these are customers we haven't seen in a long time or have never met before,’ said Long. Although the script is not what the dealership would have written, GM is delivering sales and service prospects to her door. Certainly, there are dangers if the dealer doesn't give good service or if parts are backed up. Some cars are being called in for more than one problem, and Long says her dealers are careful to schedule only one visit per car, according to Reuters.