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Marhofer closing in Stow is a 'shock' Owner: Dealership having "exceptional' year in vehicle sales

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By Mike Lesko

Stow Sentry Associate Editor

STOW — Ron Marhofer could not believe his eyes.

“I read it two or three times. I was shocked and surprised,” he said Wednesday, after being informed in a letter by General Motors that Marhofer Chevrolet in Stow would lose its Chevrolet franchise next year.

Marhofer said the letter is confidential, but it said GM would not renew his franchise agreement as of October 2010.

The company has been in business in Stow since 1933 and is Summit County’s oldest Chevrolet dealer.

“This is very emotional for me,” Marhofer said. “We have other dealerships, but this one was having an exceptional year.”

He said another 20 or so 2010 models are expected to arrive, “probably in the next few weeks,” because they were previously ordered.

After that, no more new cars will be arriving at the dealership at 3423 Darrow Road, Stow.

Marhofer Chevrolet employs about 80 full- and part-time workers.

Marhofer said he informed his employees “a couple weeks ago.”

“They were surprised,” he said. “We’re like a family with a lot of long-term employees.”

Stow Mayor Karen Fritschel said it is a very difficult time for Marhofer — “particularly because he cares so much for his employees. He told me that over and over again.”

She called the decision by GM “very disheartening.”

“Why would you close that dealership?” Fritschel said. “It is doing so well. It doesn’t make any sense.”

Marhofer asked that question to General Motors officials.

“The answer I was given was, ‘We can’t tell you,’” he said.

Fritschel described Marhofer as “a great supporter of the city.”

“He contributes to many community and charity events,” she said. “He does it quietly. It would be a real loss not to have him a part of the city.”

Visitors at the dealership can sign petitions voicing their displeasure. Also, Marhofer is urging people to contact government officials or the president of General Motors.

Marhofer hopes to get a helping hand from legislation by U.S. Rep. Steven LaTourette, of Bainbridge Township.

LaTourette’s amendment to the annual Financial Services spending bill would force GM and Chrysler to restore dealer franchises.

The bill — including the amendment — was approved July 16 by the U.S. House of Representatives, said Deborah Setliff, of LaTourette’s office.

Setliff said Wednesday that the bill is awaiting consideration by the U.S. Senate, which will not act on it until after the August recess. She said letters will be sent out soon by members of Congress asking Senators to support the bill.

In case that help does not materialize, Marhofer said he is considering what to do with the Stow location.

“I’m hoping that Ron Marhofer will be able to find another use for that land so he can stay in the city in some capacity,” Fritschel said.

In the last two years, Marhofer said his was the highest-selling Chevrolet dealership in Summit County.

He said new-car sales are up 57 percent so far in 2009, while the market nationwide is down more than 40 percent.

Marhofer is president of the Ron Marhofer Auto Family, which includes a used-car auto mall in Akron, a Lincoln-Mercury and Mitsubishi dealership in Cuyahoga Falls, two Hyundai dealerships in Cuyahoga Falls and Green, and two Saturn dealerships in Belden Village and Chapel Hill.

Marhofer said the Stow dealership was opened by his uncle, Chester “Chet” Marhofer, in 1919.

Marhofer’s father, John “Jack” Marhofer, took over in the 1920s.

Ron Marhofer has been the owner since 1975.

Marhofer was asked what his next step is.

“We’re open for business,” he said. “We have plenty of cars to sell and a busy service department.

“And we’re exploring other options when we’re no longer a Chevrolet dealer,” he added.

He declined to say what those options are.

 




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   Next 10 Comments of 18 Total Comments
18.
    Posted by blndbck August 7, 2009
This is what happens when we become a Country that buys things instead of making things. Thank you Reagonomics

17.
    Posted by Uknown August 6, 2009
It is true that hard times give businesses (and people, in general, to be fair) an excuse to do things they might not get away with in good times.

16.
    Posted by Fair Tax 1 August 6, 2009
GM probably decided to do this to Marhofer because he owns dealerships from competing automakers. Oh well good luck to Marhofer, and try to put as many GM dealerships out of business through competition. if it doesn't kill you, it will make you stronger.

15.
    Posted by Ericab August 6, 2009
I am so sorry Ron.

14.
    Posted by Helspont August 6, 2009
Let's not get into who's party is destroying who ppl.The fact is the government shouldn't have intervened,GM should have filed for bankruptcy.Streamlined the company,took the lose and learned from their mistake.Bad financial decisions lead to a bad economy for everyone.Pumping taxpayer money into something that has no guarantee of a turn around is a huge financial mistake.
Gm and other automakers keep pumping out high end gas guzzlers,have you seriously taken a look at any new vehicle?It's sick top dollar for crap,you can't work on them,nothing but plastic and cheap steel,and they want to charge tens of thousands of dollars for it.
Then when they screw up and not listen to consumers,WE have to bail them out in a bad economy.

13.
    Posted by Vydunas August 6, 2009
"LaTourette's amendment to the annual Financial Services spending bill would force GM and Chrysler to restore dealer franchises."

Well, if Obama can run GM, why not the GOP? Sure, telling companies how to run their franchise operations is not exactly a conservative principle, but hey, it sounds good...

That's why we're in the mess we're in. If the name of the game is "Give away the store," why not vote for the Democrats? They've had more practice at it.

12.
    Posted by Mr. Destiny August 6, 2009
This is only the beginning to the end of the American way of life as we knew it.

11.
    Posted by bzspanker August 6, 2009
Great point April. I think if someone did more investagating they will find most of the dealerships being targeted for closure are run by Conservatives.

Liberals will do anything to destroy the Conservatives.

10.
    Posted by DoWhatsRight August 6, 2009
Well I for one say good. I do not know what happened to Ron Marhofer Chevrolet; it use to be a good dealer ship. Before 2004 I had purchased several new cars from him, and highly recommended him to my friends, and several of them purchased his cars. However, in 2004 when I went to buy a car from him, his salesman and New Car Manager tried their best to scam me. They claimed rebates that were offered did not apply to the car I wanted. I informed him they did and other dealers have offered them to me. The new car manager produced a book and proceeded to show me in the book. He did not think that I was smart enough to know the book he showed me was over 2 years old. He tried a few other things like faking a call to another dealer; He was not smart enough to know that if I was telling the truth, the fake call would not work. He even offered me a check if I could show him the rebates applied. I did, I produce several newspapers and an ad from General Motors. Needless to say I did not receive the check, nor did I purchase the car. I have purchased cars since then, in fact I am looking for a new pickup now, but I have never returned to Marhofers. I did inform Ron, but I do not believe anything was done to correct it. Most likely, they tried to pull the same thing on other people and enough complaints got back to GM. I have since educated myself in the tricks that these dealers and salesmen use. When you go to buy a new car, you are walking into a den of con men, and they all know you have money.

9.
    Posted by onesmallvoice August 6, 2009
This is without a doubt very sad news, both for the Marhofer employees and the city of Stow.

This is, however, a decision made by GM for whatever reasons and is theirs to make. You can't complain about government intervention and control and then the first time you don't like something insist that the government intervene and control. You can't have it both ways.

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