East Dundee Saturn dealer shuts its doors

A major player in East Dundee's efforts to revitalize economic development along Route 25 is closed.

Saturn of Dundee turned off the lights for good Thursday, after 15 years in the village. Staff notified village officials of the store's closure Thursday morning, said T.J. Moore, the village's public works director and assistant village manager.

Though a few vehicles remained in the dealership's showroom - and several more in the parking lot - a sign on the main glass entry notified customers of the store's closure Thursday. Employees were on hand to finalize the transition instead of transactions.

The franchise, which is owned by Atlanta-based Lou Sobh Automotive Group, will consolidate operations with the Saturn of Schaumburg location, said Mary McHugh, the dealer group's human relations manager and director of consumer and community relations.

While some of the 20 employees were laid off, McHugh said, sales consultants will transfer to the Schaumburg store with a number of service employees likely to follow.

Lou Sobh Automotive Group also owns the Saturn of Elmhurst and the former Saturn of Lake Barrington, which closed in the spring in hopes of drumming up business in East Dundee.

"This location wasn't profitable and was a drain on the other stores," McHugh said. "It was a choice between shutting down this location or losing everything."

Many decisions are based on auto dealer Penske Auto Group's recent purchase of Saturn from General Motors.

Moore said the closing would leave a void in the village's plans to kick-start an area struggling to attract both businesses and customers.

"We will miss them. They are a big part of the community," Moore said. "We have been working with them in rejuvenating that area and we are sad to lose them in terms of trying to promote economic development."

Sales tax figures show the dealership slipped from $105,620 in 2007 to $98,308 the following year.

Village President Jerry Bartels said losing the dealership is another example of decisions at the corporate level going against East Dundee.

"It is disappointing news and it is another addition to the list of challenges we have to overcome," Bartels said. "But I am a firm believer of when one door closes, another opens. We have to take advantage of our opportunities."

The village and dealership had worked closely on the recent gas card incentive program, which awarded buyers of a new or used vehicles $100 or $50, respectively, in free gas. Saturn also participated in the federal government's Cash for Clunkers program.

Though both programs helped, McHugh said it wasn't enough to keep the dealership afloat.

"It did help bring people in and highlighted businesses within the village," McHugh said. "Unfortunately, it wasn't enough."