Closing brings brands together
Podcast Episode
Kyle Geissler talks with Janesville Gazette business editor Jim Leute about how "channeling" may have influenced changes in the local car dealership landscape.
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JANESVILLE It turns out that Clayton Stockwell and his partner knew best in 1939 what finally has come home to roost in Janesville: General Motors should sell Buicks and Pontiacs on the same lot.
Earlier this week, Rock County Buick Honda GMC bought the Pontiac line from Everhart-O'Leary Motors, which closed its doors and sold its Mazda dealership to Gordie Boucher Ford-Lincoln-Mercury and its Volkswagen line to Frank Boucher Chrysler Dodge Jeep.
The consolidation of GM brands is known in industry circles as channeling, where a combination of several brands are sold and serviced at a single dealership.
"It's the way the industry is going with the consolidation of several brands under one roof, and GM wants one store for Buick, Pontiac and GMC," said Dick Stockwell, Clayton's son and the owner of Rock County Buick Honda GMC.
"The easy consolidations have taken place over the last few years, and the tougher ones are just now occurring. They're tougher because they involve successful dealerships."
After working as a car salesman, Clayton Stockwell and David Williams bought Rock County Auto Co. in 1939. The dealership was selling Buicks and Pontiacs, but GM told Stockwell and Williams that they had to pick one or the other.
They opted for Buick and opened Rock County Buick on the east end of the Court Street bridge in downtown Janesville.
"He wanted them in 1939, and it's taken 69 years to reunite the two brands at the same store," Dick Stockwell said.
As a long-time GM dealer, Stockwell said Pontiac fits his plans. After Monday's closing, Everhart-O'Leary's Pontiacs made their way to Stockwell's showroom at 3636 E. Milwaukee St., which opened in 1970 after moving from Franklin Street.
For now, the dealership is named Rock County Buick Pontiac GMC Honda, and Stockwell has hired former Everhart-O'Leary salesmen Cecil Davis and Dan Gable.
The dealership's name, however, will change by the end of next year, when Stockwell opens a new 25,000-square-foot Honda dealership on the Milton Avenue site occupied by Everhart-O'Leary. The existing 10,500-square-foot Everhart-O'Leary building will be razed to make way for the prototype Honda store.
"I just can't reuse the existing building, and that's a shame because they put a lot of money into it not too long ago." Stockwell said. "More than 50 percent of the Honda dealers have renovated or gone into these new buildings."
Stockwell said his Honda business is up 20 percent this year, which helped drive his acquisition of Pontiac.
"Honda is really the sweet spot in the market right now," he said. "They've held true to their core values and have refused to build a V-8 engine. They're offering phenomenal power and quality in 4- and 6-cylinder engines."
Stockwell acknowledged that he could build a new Honda store less expensively on the land he already occupies at the corner of East Milwaukee Street and Wright Road.
But he likes the idea of Milton Avenue exposure and—with neighbor Fagan Chevrolet-Cadillac—the consolidation of GM brands at that intersection.
"Despite the downturn in the overall economy, I still believe in Janesville and that's one of the reasons while I'll continue to invest in Janesville," he said.
"When you take the long-term view, I've been through my share of downturns, but things have always bounced back. It's a cyclical business."
Sep 17, 2008 at 6:58 p.m.
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I love blood's idea, but the targets may be a little unrealistic. Pragmatically it would just be great to get some more green products built here and green initiatives with local manufacturers.
Sep 17, 2008 at 5:52 p.m.
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thekid, what's the big deal about that?
Sep 17, 2008 at 1:16 p.m.
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Blood - What is the source of this information? Or, is this something that you thought of and are proposing?
Sep 17, 2008 at 12:04 p.m.
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The Janesville Project
Investment- 5 Billion $$$ In 10 Years
Investment Source- International, Federal, State, County & Private Funds
Purpose- To bring new alternative energy sources into production, including, but not limited to, vehicle propulsion, household wind & solar applications, high capacity storage devices, etc. A cooperative effort between industry, government and education/research institutions to construct a clearinghouse for alternative energy development and production.
First Project- Create a non-fossil fuel propulsion engine to replace mid-size to large diesel engines within 3 years and autos in 5 years, including retro-fit engines for current vehicles. In 4 years Janesville would be producing the first GM AE mid-duty trucks on the current truck line.
Research & Development- The brightest scientists, engineers, & support staff from around the world would relocate to Janesville and this area would become the international center for alternative energy development. Research would start January ’09 with federal and state funding.
Manufacturing- Just as UW Research Park was built around the visionary ingenuity of UW researchers, Janesville would become an incubator for manufacturing production facilities throughout the Stateline area and beyond.
Sep 17, 2008 at 10:59 a.m.
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GM, along with other companies for years have been pushing dealers to separate different brands either to a separate showroom or to satellite locations. Competition scares companies, i.e. you walk into a chevrolet dealer that also might sell Toyota. You have full intentions to look at and buy a Malibu but end up driving away in a Camary. I'm sure Everhart was feeling the pressure from his manufactures along with Stockwell also. The grandfather clause has been why they've got away with it for so many years. I do think Dick Stockwell is making the right choice, Honda is becomming one of the best selling cars and with a prominate location on Milton Ave., it'll boost his sales even more! Best of luck with those involved.
Sep 17, 2008 at 9:29 a.m.
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25,000 sq foot honda store. sweeeeeeeet;)
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