Businesses affected by GM dealership closure

May 15, 2009 12:00:00 AM PDT
General Motors told 1,100 of its underperforming dealerships, nationwide, they should close by October 2010.

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One of those letters arrived at Don Signer's office today.

He's the owner of Signer Buick Cadillac in Newark.

In one year's time, he's sold less than one hundred new GM cars.

That's why he says he's not surprised by the auto maker's decision.

Neither is the city of Newark, which has lost 50 percent of its sales tax revenue because of low car sales in the past five years.

The city's community development director says the city has had to make cut backs as a result of the drop in revenue.

The loss of auto dealerships and their dollars is also hurting some businesses located in the Auto Mall.

The manager at Nijo Castle Japanese Restaurant says his business has dropped by about 10 percent since the Pontiac GMC dealership next door to his restaurant closed in January. Now that Signer's may close and the Chevrolet dealership is expected to move to Fremont this year, he says he's worried.

Don Signer meantime plans to appeal General Motors decision.

He hopes to not only stay open, but expand his fleet of cars to include GMC trucks as well.

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