The Free Press, Mankato, MN

Local News

July 1, 2009

Snell keeps its GM lines

Dealer had feared losing Cadillac

By Tim Krohn

MANKATO — With a majority of General Motors dealerships heading for extinction, Todd Snell admits he was nervous this week as more dealers waited for letters confirming what, if any, GM models they would continue to sell.

Snell Motors sells GMC, Buick, Pontiac and Cadillac from its indoor and outdoor lots at Madison Avenue and Highway 22.

His fear heightened Tuesday when he learned that GM was planning to focus attention on boosting its Cadillac brand to take on luxury cars made by Lexus and BMW. With no Lexus or BMW dealers in Mankato, Snell worried GM might pull his Cadillac line in favor of a dealer in a market competing directly with the two luxury-car makers.

“I was sweating bullets, to be quite honest.”

But on Wednesday, Snell got the letter confirming he would continue to sell all the GM brands he currently offers. (Mankato Motors sells Chevrolet, the other big GM line.)

The distinction of keeping Cadillac is even more satisfying considering there will be only about a half-dozen dealers in the state who keep the line.

Snell said his sales numbers gave him the advantage. “We were No. 4 (in sales) among all GM dealers in the state last month.” He said that figure stacks up even better considering he doesn’t sell the Chevy line. Eight out of 10 GM vehicles sold are Chevrolets.

Snell said he sold 144 vehicles on the retail side in June, as well as 30 wholesale units.

“Considering the economy, I’m very pleased. We’re just thrilled the region continues to be so robust.”

The surviving dealers will benefit from far fewer GM dealers and they are able to purchase the glut of inventory from dealers going out of business.

Snell this week purchased the inventory of Flaherty Auto in Fairmont after they learned they were not being renewed by GM.

While the dealers who are not being renewed can operate until 2010, they are unable to order new inventory and are effectively being cut off from GM, making continued operations difficult.

The downsizing of GM was symbolically punctuated Wednesday when the automaker announced it will shed its last downtown Detroit Cadillac dealer. The Dalgleish Cadillac dealership was founded in 1954 and moved to its current location a few blocks from GM's former headquarters, the General Motors Building, in 1964.

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