With GM bankrupt, Hummer dealer awaits word on the brand’s future

Published 2:39 pm Tuesday, June 2, 2009

LYNNWOOD — The economic downturn hasn’t been kind to the residents of Highway 99 between Seattle and Everett, a zone where car dealerships are nearly as common as stoplights and jaywalkers.

With Monday’s bankruptcy filing by General Motors looming over the thoroughfare, employees of some auto dealers are in limbo, waiting for news about how the products they sell and service will fare in the long-term.

GM’s filing has the distinction of being the auto industry’s largest bankruptcy to date, making way for a government-mandated restructuring.

That means the corporation will be divided into two sections. The so-called New GM will retain Chevrolet, GMC trucks, Cadillac and Buick. The Old GM will include Pontiac, Saturn, Hummer and Saab, automobile lines that in time could be phased out if they can’t be sold.

Some who work along Highway 99 are fearful for their jobs, hoping a stable buyer will inherit their GM division. And some are relieved, saying at least they’re done ­waiting for the hammer to come smashing down.

“We were all kind of holding our breath,” said Marc Ikegami, manager of Doug’s Northwest Hummer in Shoreline. “Now, we feel less apprehensive.”

Reports emerged over the weekend that GM was attempting to arrange the sale of Hummer to an unnamed buyer. Those reports gave Ikegami hope for the future of his dealership, which also sells Cadillacs.

“Hopefully, (Hummer) will be acquired by someone that will focus more on the brand,” he said. “GM, they’ve spread themselves thin.”

He added: “The hardest part is having things that affect your business so greatly be completely out of your control,” he said. “We’re the Number One Cadillac dealer in the Northwest. So, that part is hard.”

Not everyone was willing to expound on their dealer’s future — employees at a Saturn and Chevy dealer declined to comment. But a few revealed that workplace morale — like sales — is down.

There are rumors about which dealers in the Puget Sound area have received “the letter” from GM headquarters, warning they would be cut loose in a wave of downsizing. The corporation hasn’t published the dealers to be included in the cuts, but local sales and service workers say they have a pretty good idea of which Snohomish County dealers could get the axe.

Repeated calls to often-mentioned dealers were not returned.

Ikegami said customers have been apprehensive, worried that service centers would shut down or that warranties wouldn’t be honored. In a staff meeting Monday morning, he told his team to stress that Hummer’s likely transition to new ownership should be seamless for customers.

And for his employees? “Nearly seamless,” he said.

Amy Rolph: 425-339-3029, arolph@heraldnet.com.