Fagan acquires GMC, Buick franchises

By JIM LEUTE ( Contact )   Wednesday, Jan. 13, 2010
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Podcast Episode


WCLO's Stan Stricker reports on the sale of Rock County Buick GMC to Fagan Chevrolet Cadillac

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Bob Clapper, VP of Fagan Chevrolet, directs on of the new Buicks onto the front of the lot.

Bob Clapper, VP of Fagan Chevrolet, directs on of the new Buicks onto the front of the lot.

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Salesman Pete Kirchner, right, shows a Buick LaCrosse CXL to  Ed Forsling of Rockton at the Fagan Chevrolet dealership showroom.

Salesman Pete Kirchner, right, shows a Buick LaCrosse CXL to Ed Forsling of Rockton at the Fagan Chevrolet dealership showroom.

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Richard Stockwell

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James C. Fagan

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Robert A. Clapper

— A deal announced Tuesday positions one Janesville auto dealership as the exclusive seller of General Motors’ products and leaves another to focus solely on the sales of Honda cars and trucks.

Officials at Fagan Chevrolet-Cadillac and Rock County Buick Pontiac GMC said Fagan’s acquisition of the Buick and GMC franchises is a positive move for customers, employees and the community.

The Fagan dealership ultimately will be renamed, although it will retain the name of the Fagan family that has been in the car business since 1945 and in Janesville since 1975.

The former Rock County Buick Pontiac GMC is now known as Rock County Honda.

“It really is a win-win situation,” said Dick Stockwell, president of the family dealership that traces its roots in Janesville to 1939. “My growth has been and will continue to be with Honda.”

Fagan vice president Bob Clapper said the GM that emerged from bankruptcy last year wants to see it four brands—Chevrolet, Cadillac, Buick and GMC—sold at single dealerships.

It’s the most recent version of GM’s consolidation of its remaining brands. Previously, GM had pushed for a consolidation of Buick, Pontiac and GMC brands at a single dealership.

Stockwell has had the Buick and GMC franchise in Janesville for years. He acquired the Pontiac franchise in 2008 from Everhart-O’Leary Motors.

“This might have been different if GM had not gone into bankruptcy,” Stockwell said. “For 12 years, GM encouraged me to be a (Buick, Pontiac, GMC) dealer, and then 60 days after I became one they pulled the plug on Pontiac.”

Stockwell said the Pontiac brand that GM discontinued will be gone later this year.

He said he’s not bitter about selling the Buick and GMC franchises to Fagan.

He, Clapper and Fagan president Jim Fagan said the deal was easy to put together and will benefit both dealerships.

“We’ve been friendly competitors for years, and this way everything is staying local,” Fagan said.

The two dealerships anchor the intersection of East Milwaukee Street and Wright Road on the city’s east side.

Rock County transferred 24 Buicks and GMCs across the street to the Fagan lot Tuesday.

The two dealerships employee about 140 people, and neither dealership expects any staffing losses, the men said.

“We’re going to grow our Honda business and add inventory,” Stockwell said. “Everyone here will concentrate on Honda and used cars.”

Rock County will continue to service GM vehicles.

“We have loyal customers of our body shop and service department, just as they do at Fagan’s,” Stockwell said.

Stockwell has no plans to move the dealership to the property he bought from Everhart-O’Leary on Milton Avenue, he said.

Clapper said the acquisition comes at a good time. The dealership was preparing to remodel, and now it can do so with all of GM’s brands on board.

Plans call for a likely expansion of the showroom and office area at the dealership.

“This will certainly increase our volume,” Clapper said.

“I’m ecstatic,” Fagan said. “In addition to adding to our customer count, this gives my employees added job stability and security.”

Fagan, Clapper and Stockwell said the deal comes as auto sales start to rebound from last year.

“I think we’re all seeing more activity,” Fagan said. “It’s not what I would call robust, but it’s starting to improve.”

reader COMMENTS
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(57)
RetiredArmySFC
Jan 23, 2011 at 12:34 p.m.
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I lost my faith in GM when they took OUR tax money to bail them out and then rewarded us by building that new plant in Mexico. My foreign car is made in Alabama by Americans. Don't patronize me by saying the money goes back to Korea when the money paid to make my car stayed here in America to pay rent, buy groceries, etc. It did not stay in Mexico. By the way, look to see where the Buick is made.

Kleej
Jan 23, 2011 at 12:19 p.m.
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Tell these thieves you're paying cash and you want 2% over invoice or you'll find someone who will. Trust me, it works!

Bond
May 31, 2010 at 1:15 p.m.
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GM needs to do like Ford and get rid of it cojoined twin the GMC truck, and to all you loyal buy at home nuts, I hope all of you will be able to keep them in business, People buy from whoever gives them the best deal. If I can save a couple thousand dollars by buying in Arkansas or Texas, guess where I am going. The same would hold true for the Health Care boondogle, If government would get the hell out of peoples lifes and let them purchase insurance, or medicine from whatever state gives them the best price, where would YOU purchase yours from?

frogger
Jan 20, 2010 at 1:35 p.m.
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Seems you are changing my words that I say. I didn't say I lie. I said we are always told to paint a pretty picture no matter what is really going on and I wont do it.
Stop calling me Hannah. I am not Hannah.
I would hope you would buy a car from either of your friends.

etown
Jan 18, 2010 at 5:10 p.m.
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so hannah , now why would i want to buy a car from you if you lie. and trust me they are not lying to me if they were starving i would know it lol. they might not be doing as well as they were a year ago, but they are still holding their own.

frogger
Jan 18, 2010 at 4:49 p.m.
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In training we are told to LIE and make it look positive even if it is bad. I guess they are just telling you what they are told to tell you. It sucks all over. I have actually asked other salespeople of many years experience if it is just us or all over. It is all over OH except for the TWO people you know. (yea sure).

etown
Jan 16, 2010 at 1:52 p.m.
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i have two friends that sell cars , and neither one is starving , but they dont sit on a computer all day waiting to go home either. why wouldnt people try to get a bigger discount or a better deal. if it wasnt for the dealing on vehicles what would they need the saleperson for? they could just drive the car to the check out and pay for it .

frogger
Jan 16, 2010 at 10:31 a.m.
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dalegribble- I would have left when he asked for soc # right away. If there are issues then it should be looked at because the bank can only do so much and only certain cars may work but to ask FIRST is insane. Those people with problems know it and speak up and then look to see what could work for them.

Dealerships stay in business by making money. This is the only profession where I can't seem to understand people having a problem with them making money. Do you ask for a discount when you see the doctor? People seem to have no problem buying jewelry at 400% mark up. Do you ask your plumber to work for free?
When you get that great deal do you know your salesperson is starving?

Macdaddy
Jan 15, 2010 at 11:07 p.m.
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Again what is better to buy a Toyota built by AMERICANS in Kentucky or a chevy built by CANADIANS OR MEXICANS?

that is my opinion that anymore we are a global commerce. I also don't agree with all the large bonuses paid to execs over the past few years, even while the company was losing money (funny i thought bonuses were only when there were profits to bonus from????). Greed has destroyed America and hopefully it never comes back!

couchsit
Jan 15, 2010 at 10:50 p.m.
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I think the more hypocritical view point is when people complain about manufacturing jobs leaving but buy cheap foreign goods over similar or better quality (but more expensive)American goods, especially when they can afford them. I agree that competition and choice is good, and American companies don't always have the best value. The US cannot compete on labor costs in a world market, especially in something like manufacturing. But we could be selling ourselves short in the long run by wanting all this cheap stuff. The ability to turn raw materials into goods is what keeps us from living in caves. Do we want to continue to increase our reliance on others for that ability? Just my opinion.

janesvillegirl72
Jan 15, 2010 at 9:52 p.m.
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As a former Fagan employee of over 10 years I can tell you from experience that the service department is second to none, courteous, meticulously trained and they actually listen to the customer. Nobody wants their car to break down but when it does the service manager, Mark Erdman, takes the time to make sure you are happy!!! That said I will probably never buy another vehicle from Fagan but that is due to pricing and trade in value that was better at Burtness and Symdon, I ultimately purchased from Burtness, a very nice group of people. The acquisition of Buick and GMC was not surprising as GM would like to consolidate services, but we will see how long Buick lasts and how long until GMC and Chevrolet trucks are consolidated since they are ultimately the same vehicles with some different trim. General Motors products are way to redundant. I think the move is a good thing and friendly competition with the overseas brands will hopefully get GM to finally see the light and make an outstanding product that the public actually wants to drive.

cookiedough
Jan 15, 2010 at 5:47 p.m.
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Way to tell it like the way it is redder. Hey thekid3477, your comment that if you buy out of town is like buying foreign is pathetic at best. If you can save 2 grand from a dealer 15 miles away, why not? I assume you are loaded and could care less about saving a few grand unlike the rest of us. Heck, I even drive a little further buying groceries 20 more miles away than my local store to save on items that are 25 cents cheaper as long as the difference in food bill is more than the extra gas money. There are way too many GM dealers around to NOT go to another 3-4 to get the best deal amongst them all. My neighbor even went to drive to mlwk. to get his honda CRV since Rock County in Janesville and Zimbrick in Madison did not deal too much off sticker price. Well worth the extra drive if you ask the ordinary US citizen.

redder
Jan 15, 2010 at 5:17 p.m.
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I have to ask...why do people think that forgien car companies hurt them? Why? Because choice is a bad thing. Does that big freakin TV in your living room scare you? I can tell you its not American. How about that computor you like so much? Probably not American. Why do you think its okay to buy those products, how about that redneck hat on your head, probably reads Bangladesh, or China, maybe Viet Nam, or could be someplace in India...always a double standard for cars and trucks yet most of you own a million forgien products, yet use a double standard for auto's, I just don't get it why be such hypocrits

thekid3477
Jan 15, 2010 at 12:53 p.m.
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buying out of town is no dift than buying a 'foreign' vehicle

Unidentified
Jan 15, 2010 at 12:07 a.m.
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I've always much better deals on my trade ins at dealers outside of Janesville. In one case it was 2000 dollars more. This even after the dealer knew I had a family GM discount. That said, I'll buy where ever I'm offered the best price.

thekid3477
Jan 14, 2010 at 7:28 p.m.
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rock county honda will stay at its current location

Rocky
Jan 14, 2010 at 5:11 p.m.
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I think this will be a great move for Rock County Honda. I've been driving a Honda for about 18 years and have always felt like the split dealership model made the salespeople at Rock County less enthusiastic about Honda. This move should increase their inventory and make it easier to find what I want locally. My question is this: They were planning to "spin off" the Honda dealership to the former Everhardt/O'leary location. Any plans for that storefront now?

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As for Fagan being one of the largest dealerships around - a lot of that had to do with GM employee sales. Adding Buick and GMC is a very good move for them.

---

As for the complaints - take 'em with a grain of salt. I've had my car or my spouse's serviced at both places and have been treated great at both and both have done a good job.

cookiedough
Jan 14, 2010 at 4:25 p.m.
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Good for both of them hopefully. I never did like going to Rock County Buick/GMC when I new they sold HOnda's as well. Kind of weird and not too many selling different car mfgs. nowadays new anyways. Car sales are tough and I foresee them getting even tougher with the economy not rebounding at all and sure hope Fagan does not invest all their money into different franchise agreements and end up on the short stick a few years from now. I am sure one of the reasons fagan did this is to not get ousted by GM by only selling 2 brands of GM cars, chevy and cadillac, like Thorstads got the shaft in Madison selling only new Chevies. My opinion is if the dealer wants to sell only 1-2 brands, let them as long as they pay their franchise agreements yearly with GM. Why should GM care as long as they are getting paid by the dealer?

thekid3477
Jan 14, 2010 at 4:18 p.m.
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14logging. thanx for the clarification. yes a certified gm can be done at any gm dealer.

markr
Jan 14, 2010 at 4:08 p.m.
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tracymi--when my mom was in Mercy Hospital, I asked the nurse in her room several questions. The nurse never looked at me. Instead, she answered all of my questions while looking directly at my sister. I was a little annoyed, but took her sexist approach for what it was and moved on.

samurai_ftw
Jan 14, 2010 at 4:07 p.m.
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Kudos to Bob Clapper and company, good luck to them and hope it helps them turn around their business and reputation.
On a side note, I cannot believe the ignorant people who still think there are "american" and "foreign" cars. Just look at the sticker where it shows the origin of the parts and manufacture. My Toyota Camry is more american than my parents Mexican built trailblazer. All you are paying for is the name brand.

simon
Jan 14, 2010 at 3:14 p.m.
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I am not a Fagan fan at all! I have owned Chevrolet cars all my life and have had numerous problems with my current luxury vehicle that have not been backed by Fagan or General Motors. My loyalties to that company are long gone and I absolutely will not purchase another GM vehicle due to Fagan and the GM rep I had to work with!

14logging
Jan 14, 2010 at 2:56 p.m.
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Our Trailblazer is under warranty. We bought it from Rock County Buick with 7000 miles on it, and has a 100,000 mile warranty. From what I understand, I can have in worked on by any GM certified service center.

thekid3477
Jan 14, 2010 at 2:44 p.m.
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actually macdaddy 14logging mentions taking his chevy trailblazer to rock county gmc for service. OBVIOUSLY not warranty work and he can continue to do so. no they cant do warranty work, but with the quality gm is putting out these days who should worry about that??;)

Macdaddy
Jan 14, 2010 at 2:31 p.m.
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minihowie- I believe the point logging in making is that if you have a car under warranty it has to be at a GM garage in order for the work to be covered. So anyone who bought a GMC or Buick from Rock County would have to take it to Fagan for warranty service unless they want to take it out of the city.

minihowie
Jan 14, 2010 at 1:45 p.m.
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14logging,
Rock Co is still going to be servicing GM vehicles, just not selling them.

BillyLoopner
Jan 14, 2010 at 1:25 p.m.
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Terrible move by Rock County. All the best to Fagan !!!

rusty
Jan 14, 2010 at 1:15 p.m.
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I've said it before & will say it again, when I bought my foreign car & even when I take it in for service it is an American who takes care of me. They DO NOT put the car on the boat to be sent to Japan for the service. I bought my 1st foreign car in the mid 80s because I wanted a quality product. Also it was much cheaper then the similar inferior American vehicle heisted off on the public at the time!

14logging
Jan 14, 2010 at 12:39 p.m.
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I switched to GMC from Chevrolet, after bad experiences with both sales and service at Fagan. I wanted to keep my money in the community, so I chose Rock County. I recieved better trade in value, and better service from Rock County. I went as far as taking my wife's Trailblazer there for service. Now, I'll being driving further for both service and finding my next new truck.

samurai_ftw
Jan 14, 2010 at 11:58 a.m.
(This comment was removed by the site staff.)
frogger
Jan 14, 2010 at 11:48 a.m.
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tracymi- sorry for that. Many men salesmen seem to forget WHO has the checkbook and wears the pants(haha)married or not. They have been to training(or not because they don't think they NEED to go) and have been told this over and over and some still don't get it. I would have asked for somebody else. Maybe a lady! Try not to take it out on Fagan for hiring a moron! Hopefully he isn't there anymore!

amallama
Jan 14, 2010 at 10:30 a.m.
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Fagan ROCKS... from now on, I will buy every car from them... REZA is the best, kind, knowledgeable, and professional... everyone there is great... ROCK ON FAGAN

Ninjadude
Jan 14, 2010 at 10:05 a.m.
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916- You're half right when you said incompetent management. Its the management that calls the shots for a company, not the workers. Old GM management really made some dumb decisions, but it looks as if the new GM is on the right track with some truely impressive new models.

taxed2much
Jan 14, 2010 at 10 a.m.
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Since Rock County Honda no longer sells Buicks, can I buy that cool Buick Grand National poster that is in the lobby?

Best car Buick ever made!

westside
Jan 14, 2010 at 9:56 a.m.
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anyone know why the lights were out at lions quick mart last night on hwy 14

Zoom
Jan 14, 2010 at 9:44 a.m.
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"I will not do business with someone who thinks his future is with a Japanese car company."

The brand consolidation was mandated by GM, and should have been done years ago. Mr. Stockwell really had no choice.

"There too many people in Janesville that have been hurt by foreign car companies."

GM's downfall was NOT caused by other car companies. Ford has survived without (much) government help because they started making major changes years ago. GM was mismanaged.

Zoom
Jan 14, 2010 at 9:38 a.m.
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"If anything the foreign companies FORCED GM to do right by their customers, by providing consumers with a better alternative."

Exactly. Imagine the crap we would be driving now if Japan, Korea and Germany would not have been allowed to sell cars here.

truth1
Jan 14, 2010 at 9:31 a.m.
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I'm sure that our good 'ole "American" companies are going to be looking out for human rights in those countries they operate in too, ha ha ha.

truth1
Jan 14, 2010 at 9:29 a.m.
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...I was responding to a much earlier post

truth1
Jan 14, 2010 at 9:27 a.m.
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Yah, GM is a real "American company", ha ha ha...I had a 1987 Celebrity and was shocked to see "Made in Mexico" on the door sticker......**1987**......I've also seen a pretty big Honda plant in Ohio that was there BEFORE 1987...Isn't Ohio in the USA, LOL..

ekim8404
Jan 14, 2010 at 8:49 a.m.
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Nobody in Janesville was "hurt" by foreign car companies. They were hurt by American car companies that made poor choices, did not see the mass exodus from large expensive SUV's due to fuel prices, did not develop a market for cars that people wanted to buy, and had redundant models due to a bloated stable of "brands".

That wasn't Toyota or Honda's fault. My Toyota was made in the USA, my "American" truck was made in Canada.

Get over it. GM is a global company, not an "American" company.

It sounds like it's good news for everybody. Fagan had alway treated me well, but then I know many folks that will not buy cars there. It all comes down to personal experience.

tracymi
Jan 14, 2010 at 8:38 a.m.
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YADA- my experience was I was looking for a car with my husband (boyfriend at the time). A salesman approached us and I spoke up to say I was looking for a car. He ignored me and spoke directly to my boyfriend about what I was looking for. I once again spoke up and said the car was for me and that he was my boyfriend. Once again, he proceeded to ignore me. Sorry, but my paycheck was paying for the car, not my boyfriend.

I understand that NO ONE is every 100% happy with a dealership. The choice is each to their own. My choice is not Fagan. I will truly miss Rock County Buick because they have always treated our family very well with our GMC purchases. I will say I will use Rock County if I ever am in the market for a Honda.

matman
Jan 14, 2010 at 8:27 a.m.
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I think this is such a great move for Janesville.Fagan dealership is one of the top in the nation.Like Jim says it adds job security for his staff.With the updating of there store tells me they are going to be a big part of Janesville for along time to come.Shop were you will.But nobody offers "home town" service like Fagan does.Trust me if they did not General Motors would not put there name on there sign..

thekid3477
Jan 14, 2010 at 8:10 a.m.
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i agree 916. eirann23: please re-read mr stockwells quote and see if you can get some of the logic behind his business decision...

"This might have been different if GM had not gone into bankruptcy,” Stockwell said. “For 12 years, GM encouraged me to be a (Buick, Pontiac, GMC) dealer, and then 60 days after I became one they pulled the plug on Pontiac"

he spent good money to acquire the pontiac franchise at their urging, only to have it shut down. you may not think its ok to buy an american made 'foreign' product...but LOTS of people do...

yada
Jan 14, 2010 at 8:07 a.m.
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Hey TRACYMI - Instead of just saying you will not go to Fagan because of the way you were treated - how about telling us what happened. I have been treated with dignity while buying a car at FAGAN and the service department has been very good also. No dealership will ever be 100% perfect.

916WI
Jan 14, 2010 at 7:48 a.m.
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Eirann3....Please don't start with the "anti-Japanese" rhetoric again. We live in a capitalist country--if a company manufactures a better product at a competitive price and then follows it up with excellent customer service, that company will be successful. GM and it's employees were not hurt by foreign automakers--they were hurt by incompetent management and greedy labor unions. If anything the foreign companies FORCED GM to do right by their customers, by providing consumers with a better alternative.

tracymi
Jan 14, 2010 at 7:34 a.m.
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I refuse to go to Fagan after the way I was treated when looking for a car.my next truck will not be bought there.

loose357
Jan 14, 2010 at 7:17 a.m.
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Well, theres 2 more of GMs brands that I will have to go out of town to buy.

eirann3
Jan 14, 2010 at 1:08 a.m.
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I bought my Buick from Rock County Buick in 2006. I will now take it to be serviced at Fagen. I will not do business with someone who thinks his future is with a Japanese car company. There too many people in Janesville that have been hurt by foreign car companies.

MyAngel23
Jan 13, 2010 at 5 p.m.
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Congratulations to Fagan's. A step in the right direction for sure.

janesvillean
Jan 13, 2010 at 4:11 p.m.
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Who'da thunk GM would ever have so few brands they could all fit under one roof?

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