Big losses for small towns

Car dealers outside of bigger cities an endangered species

OREGON – One Oregon auto dealer will officially close its doors Sept. 15 after 94 years in business, and another dealer recently stopped selling General Motors Corp. vehicles.

Many small-town auto dealerships have dealt lately with a poor economy, low consumer confidence, and competition from larger dealerships. In addition, GM has instituted a program, Essential Brand Elements, which financially rewards dealers who overhaul their showrooms. Some dealers have had to put large amounts of money into renovating their facilities as a result.

New car dealerships in Illinois often are the biggest source of sales tax revenue for small towns, which receive 1 percent of the sale price.

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