Oregon Public Broadcasting

With General Motors entering bankruptcy, about 25 Oregon dealerships are expecting to lose their businesses. Kristian Foden-Vencil reports.

Dealerships don’t cost GM a penny to run, but in an effort to boost trade at 60 percent of them, the company is pulling the licenses of the remaining 40 percent.

The Bob Thomas Car Company in Bend is one of the losing dealerships. Speaking on OPB’s ‘Think Out Loud’ owner Bob Thomas said he’s appealing the decision.

Bob Thomas: “We were totally stunned. We’re the largest GM repair facility between Redding, California and Yakima, Washington on U.S. Highway 97. These are 400 miles stretches. We have 216,000 people here in the region and there’s only going to be 1 GM dealer remaining.”

Thomas estimates GM owes him about $250,000. But he calls that the tip of the iceberg.

He says he has about 100 new vehicles on his lot, which aren’t selling well. He says if he has to reduce prices to move them, he could end up owing his lender up to $1 million.