Welcome to mcdowellnews.com. Skip directly to: our Keyword Search, Section Navigation, Content.

mcdowellnews.com - The McDowell News

HomeNewsEntertainmentSportsLifestylesOpinionCommunityWeather Online Tools Jobs | Real Estate | Shopping | Classified

City says it can't lose Ford dealership; former owner says it couldn't make money

photo Matt Dymond

The empty service bay at Legendary Ford-Mercury

By Mike Conley | The McDowell News

Published: November 4, 2009

Officials from the local, state and even federal level are trying to convince Ford Motor Co. to keep the local dealership open. However, their efforts so far have been unsuccessful.
Meanwhile, a former owner of Legendary Ford-Mercury said he sold his interest in the business back in April because it was losing money. He did expect Ford to keep the business open though.
Local leaders are continuing their efforts to convince Ford Motor Co. to approve financing deals that would allow Legendary Ford-Mercury to remain open. The closing left 22 people out of work and McDowell County without a Ford dealership.
City Manager Bob Boyette said the city of Marion, the Marion Business Association, the office of U.S. Rep. Heath Shuler, N.C. Joe Sam Queen, N.C. Rep. Mitch Gillespie, the N.C. Department of Commerce, AdvantageWest, McDowell County and the McDowell Chamber of Commerce were all working to contact Ford Motor Co.
"We are contacting those people that Legendary Ford has told us we need to convince that Legendary Ford should remain open," said Boyette. "Our federal and state officials are talking to contacts they have at Ford."
Mayor Everette Clark said the proposed investment of businessman Ford Miller and the outcry from the community "indicates how much this community values Legendary Ford and all our businesses." Miller, owner of Miller Engineering and the old Marion Manufacturing plant, and benefactor of the new Ford Miller Training Center on Baldwin Avenue, recently made an offer to pay off the mortgage and buy the building, if dealer principal Tommy Calhoun would be allowed to run the dealership as before.
"Legendary Ford needed someone to step forward and assist with financing and Ford Miller responded," said Clark. "Now we need Ford Motor Co. to respond accordingly and simply allow the dealership to remain open."
He added "our community simply cannot afford to lose any more jobs at this point."
Mayor Pro Tem Steve Little, who was elected Tuesday to be the next mayor, said "with Ford announcing a $1 billion third quarter profit, Ford does not need to be seen as stepping on small communities by throwing dealerships out with the garbage. Numerous people in smaller communities such as Marion and McDowell County have been very loyal to local dealerships and will not stand for Ford making large profits while putting people out of work and negatively impacting their community."
Little added "Ford needs to carefully pay attention to the grassroots support being shown for Legendary Ford and make the right decision to allow the dealership to re-open."
Clark said the city and other agencies would continue to push Ford regarding this matter and urged the community to keep up the pressure as well. "Everyone is working toward the same goal," he said.
Doug Abrahms, a spokesman for U.S. Rep. Heath Shuler, said the congressman has made a call to Ford about keeping the Marion dealership open. However, Abrahms said it is doubtful that the call will have much impact since Ford Motor Co. did not ask for any government bailout money, unlike GM and Chrysler.
"This is a private enterprise between the company and the dealer," he said.
City officials have heard back from a Ford representative. Both Boyette and Freddie Killough, director of the Marion Business Association, sent separate e-mails to Shawn McDermott, a manager for Ford's Southeast region. Both Boyette and Killough wrote in their own words about the need to keep the dealership open. McDermott's response to both local officials was identical.
"We are sensitive to the impact that all of our Ford dealerships have on their respective employees, families, customers and surrounding communities," read McDermott's response. "While we can't discuss viability of individual dealerships, like any business, each dealership must remain profitable with a strong return on investment in order to fully provide for their employees and satisfy their customers.
"For the past 12 months, we have worked very closely with Mr. Calhoun to purchase the dealership. And it was our express hope that he would be able to continue the Ford representation in your market. Unfortunately, he still has not been able to meet all the financial requirements to purchase the dealership. Thank you again for your concern, and we look forward to providing dealership representation to satisfy the automotive needs of your community. We will work closely with neighboring dealerships to maintain representation in the area."
The McDowell News also contacted Ray Parrish, Ford's Southeast regional general manager, about the closing. "I do not have responsibility for that market," he said on Wednesday. "I referred your inquiry to the appropriate parties for response."
In addition, Emanuel Jones of Atlanta, who was one of the owners of the dealership, said he sold his interest on April 15 of this year. Jones and his business partner T.J. Wilson took ownership of the business in November 1998. They formed Legacy Automotive as the legal entity owning the Marion dealership. Later, Calhoun bought out Wilson's interest in the business and he became the dealer of record.
Jones is now a state senator in Atlanta having been first elected in 2004. He owns two dealerships.
He blames the bad economy for Legendary Ford-Mercury's problems. He added the Marion business did not make enough profit to retire the debt it had.
"The store like most other stories in this economic downturn has not done well," said Jones. "We lost money in the dealership. Ford Motor Co. was very patient with us. (Tommy Calhoun) did an outstanding job in trying to find lenders and we were unable to do that."
Jones said he got rid of his interest for that reason.
"The only reason I got rid of the dealership, it was losing money," he said.
On the other hand, Jones said he does not understand why Ford would not agree to Miller's offer. That would keep the dealership open under Calhoun's management.
"Tommy is considered by Ford to be one of the best dealers for sales and customer service," he said. "I was quite surprised that Ford would pull the rug out from under Tommy Calhoun. I don't know why Ford Motor Co. has been so resistant to keep the store open. It is not a good situation."