Longtime Batavia auto dealership closing
A 2009 federal bailout might have saved General Motors, but it came at a cost a Batavia business could no longer bear.
Avenue Motor Sales is closing Friday. It has already closed its service and parts department.
“Our fine president closed us,” Avenue president John Clark said Monday. When the Treasury Department loaned $50 billion to a bankrupt GM, it pushed GM to cut dealerships, believing that doing so would make remaining dealerships stronger and able to invest more in their facilities and staff. The company cut 1,100 dealerships.
Avenue — which had sold Chevrolets since 1932 — was one of them.
“We were a viable, flourishing business in May of 2009, and in July of 2009 we were in survival mode,” Clark said.
He and several other local auto dealers met with then Congressman Bill Foster and disputed that the moves would save GM money. “On this site, right now, GM has no interest,” Clark said in 2009. “It's all my money.”
Before it was stripped of the Chevrolet franchise, the dealership employed 48 people, and generated $300,000 to $400,000 a year in sales tax for Batavia.
Clark tried to get another brand — Kia, Mazda, Volkswagen, anything — but none wanted the spot. So he started selling used cars.
But he couldn't get “floor plan” loans from banks. Those are loans made to dealers to purchase vehicles, and secured by the vehicles.
“We could not stock enough to make it look like we had (a good selection),” Clark said.
“ ... We tried it, and it just wasn't enough sales volume in the front and service and parts in the back.”
Clark, 60, said he will be looking for work, as he had counted on selling the dealership for retirement, possibly to his two sons. He does not know if he will sell or merely lease the 8-acre site at Randall Road and McKee Street to another business.
The city of Batavia's economic development specialist is helping to market the property. “We've already had some people in kicking the tires. I think things will happen,” Mayor Jeff Schielke said Monday.
Clark was the third generation of Clarks to own the business, which opened in 1930. It took its name from its original location on Batavia Avenue in downtown Batavia; it moved to Randall Road about 30 years ago.