SALISBURY — Those with a yen for a new Pontiac, Buick or GMC vehicle should get to Chris Fraser's Bridge Road dealership by Friday, because that's the last day he'll be selling them.
In a sign of the economic times, Fraser has decided to close his General Motors dealership, putting an end to his family's 84-year history with the business. Instead, the focus at Fraser's will be on servicing cars, all makes and models. Fraser believes the change better positions his business for the economic times and trends in the industry.
Considerable soul searching, financial analysis and economic research went into Fraser's decision to sell back his dealership franchise to General Motors, while moving forward with the new enterprise.
"I don't want this to sound negative, because it's not," Fraser said yesterday. "We're excited about moving forward with the new (automobile) service business we're gearing up for. We've done this to adjust to the economy. Selling the franchise back to GM is clearly dealing with the nature of the automobile industry in the United States today and nature of the economy."
For Fraser, a third-generation Pontiac, GMC car dealer, stepping away from selling new GM vehicles is emotional. His grandfather, Robert W. Fraser, began the business on Market Street in Amesbury in 1924, and Chris Fraser followed in the family footsteps, running the business there with his father, Robert B. Fraser, after his uncle Lester stepped aside.
Being the sole proprietor since the 1990s, Chris Fraser moved to expand in 2002, buying Bridge Road's Walter's Buick and moving to what he feels is a "great location in Salisbury."
Although Fraser was very pleased with the way things went in Salisbury during the first few years, it was trends in the American automobile industry, the vehicles it produced and the spectacular rises in the cost of fuel over the past year that led him to reconsider.
Fraser's critique is a report card not only on the American automotive industry but the state of the American economy today. It's complete with the problems created by the country's dependence on foreign oil and spiking gas prices, the banking and credit crisis, and the American consumers' lack of confidence in the nation's economy, Fraser said.
Having lived through the dour American automotive market in the 1970s due to the gas embargo and shortage, Fraser is cautious about how long it will take for American car manufacturers to retool and resurrect their markets given competition from better-positioned foreign car manufacturers.
"I think this nation lost a significant opportunity in the early to mid-70s to create a national economic policy that reduced our dependency on fossil fuels," Fraser said. "That could have made us a world leader in it, but we didn't do it."
Other industry and economic factors left Fraser with a less attractive picture than in the past.
First, he said, the cars he's selling today are the best he's ever sold, meaning people are keeping them longer and not buying new ones as often. Even warranty-related income is down because cars don't need as much service as in the past.
Further, he said, the banking crisis and related credit crunch is making it hard for people to get loans. Consumer insecurity in the economy has many who would buy cars holding back, too.
This year, he said, there wasn't the usual flourish of new car sales in spring and summer as is the custom. Looking ahead, he felt uncomfortable trying to predict when things would get better. It could be as soon as 2010, but it could be later.
There are also foreign pressures on the American car market, he said.
"In the 1970s, when you went out to buy a car, you probably had a choice of 50 different models," Fraser said. "Today, that choice is closer to 300 or 400 models. It used to be General Motors' market share was 50 percent (of the American market). Now, it's in the low 20s."
When he discussed all this with his GM franchise representative this spring, Fraser got a surprising offer, one he eventually felt he shouldn't refuse.
"He told me, "Chris, if you think it's time to sell, (GM) will make you an offer,'" Fraser said. "At first, I wasn't interested, but over the spring there was tremendous anxiety in the economy."
Given the economy, Fraser took the offer while GM still had enough cash or credit to make it.
He could have closed up shop, he said, but further analysis told him not to. Fraser plans to deliver high-quality automobile repair and maintenance service for all types of cars, not just those made by GM. There's a market out there for good local car service, he said, and he's going after it.
"We're retooling for the expansion in service," Fraser said. "We're buying new technology and (service manuals) that will allow us to deliver the same high quality of service to all cars, not just the 10 percent that are GM. We have great technicians; we'll still offer pickup and delivery service, still have a nice waiting area for people and a great location in Salisbury."
But, no one should get the impression that Fraser has lost his love affair with GM vehicles, especially Pontiacs.
"My wife and I will still be driving Pontiacs," he said laughing. "I've got my eye on the red convertible out front."
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