Auto makers may
discontinue lines

KENMORE, N.Y. (WIVB) - How will the possible auto industry bailout impact auto sales here?

Local car dealers are waiting to see if any of the Big Three Auto makers decide to discontinue particular brands.

When General Motors stopped making Oldsmobiles, industry analysts said there was a billion dollar ripple effect.

What would happen to dealers if GM shut down several more lines?

Industry Education Specialist Art Wheaton said, "GM would have to pay the people who run Saab dealerships, or Saturn, or Pontiac. Those are the names thrown out as possible casualties. They pay them up to a million dollars per dealership, to quit doing business."

GM dealers who sell other brands of cars, would then service the discontinued models.

National Dealer Council President Duane Paddock said, "Should there be a solution that a franchise should be eliminated, then the other dealers would take up the warranty work and parts and everything, so the consumer is never left out."

Consumers can now take advantage of big savings.

Paddock Chevrolet sold 120 cars in seven days at the end of November.

Mary Fagyas is ready to replace her 16-year-old car, and believes now is the time to buy.

Mary Fagyas said, "They got good deals. Everybody says 'buy a new car now! Buy a new car now! There's good deals all over.'"

News 4's Rich Newberg asked, "And you're going to buy?"

Fagyas said, "I'm going to buy one, yeah."

"I have power windows which my other car didn't have."

Nicole Ritz is saving thousands on a new leased Malibu, but is still hoping she can meet the monthly payments.

Ritz said, "If I'm going be able to cover it every month, but I think with all the help they had here and all, and all the great deals and offers they have, it helped move some of those worries away."

Duane Paddock represents almost 7,000 thousand GM dealers nationally. The biggest concern, he said is profitability, and long term viability. He said dealers don't get bailouts, but rather rely on local consumers to stay in business.