A Dealership at the Heart of a Town

Family Business That's Been Around Since 1916 Forced to Close Under GM's Restructuring Plan

(CBS)  It's a picture of small town America, planted in the middle of central Illinois corn country. A place where the local dairy queen is the social center and buying a GM car from Rust Chevrolet is a ritual - until now.

"When I start to talk to people about new cars, it starts to hit me, it's going to come to an end," said Karen Rust Walder, the owner of Rust Chevrolet. "It's sad."

A family business since 1916, Rust Chevrolet is one of the 1,100 dealers forced to close under GM's restructuring plan, reports CBS News correspondent Terrell Brown. Walder said that harsh reality is beginning to sink in.

"Maybe I could have gotten out there and hammered out more sales, but you know, that's not me," Walder said.

Mayor Rick Baier said that the dealership is very important to the town.

Rust Chevrolet is Cissna Park's largest source of revenue. With 100 cars sold a year, it generates half the town's annual sales tax, $50,000 -that's 20 percent of the town's budget. Without that money, Baier says the town's 800 residents will see cuts in services, businesses will be hurt, and, there will be more fallout.

"We could lose families, "Baier said. "They might go elsewhere to find employment."

GM's decision to close this dealership isn't just about the economic impact on this town. This dealership ahs been here for 94 years, and to the residents that live here, that's personal.

"I'm done," said Larry Hofbauer, a Cissna Park resident. "I'll never buy another General Motors product."

Hofbauer has lived in Cissna Park for more than 40 years and has bought all his cars from Rust Chevrolet. He says GM's decision to eliminate the dealership is a slap in the face .

"GM could care very little about Cissna park, we are just a small dot on a map," Hofbauer said.

"We would have never thought so many people cared," Walder said.

GM has reversed its decision to force more than 50 dealers to close, but Karen Walder says if emphasizing the bottom line over customer satisfaction is what it takes to remain open, she'd rather shut down.

"I think we did the best we could," Walder said. "I don't have any apologies. No regrets."

Just 94 years of memories and an uncertain future for one small American town.

[jhenry3107]

I beleive this new legislation is a big win for consumers who is ready to buy a new car with fuel efficient models

Jhenry
Blogger
www.cashforclunkersfacts.info
http://www.cashforclunkersfacts.info

[ilovecissnapark]

I am from Cissna Park, what all of you posting hateful comments about GM do not understand, is that this is far larger than GM for this community. Yes, Rust Chevrolet can still sell used cars, yes, they could switch to a different line of vehicles. That is not the point. The point is, that this town that was seemingly "recession proof" is now going to get hit--hard.
This is a community that prides itself on it's caring for each other, it's top notch school, it's ability--until now, to self support it's 850 residents. It is miles from any other "big town" and loss of this dealership and it's revenue could mean that the safe, neat town I grew up in and my family still lives in could be threatened. The closing of this dealership to sell new GM vehicles is not just losing the Chevrolet status, it means quite possibly losing the high quality of living that Cissna Park is known for and that is the true tragedy here. So, when you're posting your hateful comments, remember your fellow man, that hard working farmer, teacher, waitress, etc... that this really effects.

[Cascade52]

I live in Cissna Park and want to thank those who have made positive, supportive comments. We realize what has happened to Rust Chevrolet is a sample of what is happening all around the United States. We are saddened to lose a business that has supported the town and community in so many ways for so long. Cissna Park supports it's local businesses, does it's best to survive adversity, and help each other the best we can, strenghting our community bonds. We will meet the challenges ahead.

[jhenry1407]

Starting July 24 2009 consumers who would like to purchase a new car trading off their old gas guzzlers can use
the Cash For Clunkers program voucher.

Jhenry
Blogger
www.cashforclunkersfacts.info
http://www.cashforclunkersfacts.info

[jwhenry]

You donot need actual vouchers or coupons to partipate in this program. All dealers are required and government will
reimburse the fees for the clunkers

Jim Henry
Blogger
www.cashforclunkersfacts.info
http://www.cashforclunkersfacts.info

[whitemale08]

I am surprised that this car retailer lasted this long.

You're not supposed to be in business for more then 5-to-10 years in a so-called 'capatilist' society according to Adam Smith and his 'invisible' hand.

This is why we have laws to protect the wealth from the inevitable bankruptcy of any business you start.

However the person you should be mad at is Obama, for bailing out Goldman Sucks and JP Morgan.

They've crowded out real 'investment' to rebuild America and create real jobs by diverting all of our tax money to bail out trillions in absolutely worthless derivatives and credit-default swaps @Goldman Sucks and JP Morgan.

[richinnc]

If you look at the map Cissna Park, IL its 18 miles - 48 Minutes to the next town with a dealership (Ford). So part of the question of business is - do you go for the numbers and only sell your product in big cities where you get a better return on your investment and figure the rural area customers can come to you? So if the rural (often farm) areas were to close up (because they have depended on a tax structure with rural business). What happens to the food that was grown on these farms? What happens if an insurance company was to follow the the same route. I will only insure young healthy people and when they get old or sick I drop them. I expect there would be many complaints. Should there be a moral and service concept as a part of business? Are we humans or just a bunch of animals? Do we still play king of the mountain and I will squish you to get to the top?

[presjfk]

This dealership sold a 100 cars a year. That is a round number, I wonder what the real number was, 90? 102? 80?

There is no future for any dealer doing this low a volume. There are car salespeople that sell more than this in a year!

[car1wholesaler]

Who?s at fault for the American automobile industry collapsing to the point it needs to turn to the government for help! Well if you really look at the problem everyone is. The government is for allowing so many imports vehicles in to our country, with out considering the out come of what will happen to the American cars. The public for forgetting where they live, work, and play freely (in America), the automobile manufacture for not thinking about the American public. When they were building vehicles like they were toy model cars. Now we have a president that says he will save jobs and get the economy going to put people back to work. But the government forces the American manufactures to close car dealerships, down size the plants. Putting serve hundreds of thousands of people out of work that have survived off, The American automobile business. What did they do for the import vehicles sold in this country? They are forcing American car dealers to open more import dealerships. Pushing the American plant worker to find work for the import manufacture in this country. How does this help the American automobile business in this country? Where we employ and keep the tax payers money in this country. Instead of shipping it to Japan or Korea. The government took the American publics tax dollars to help out the American built vehicle companies, on the same hand forced Americans to help build sell and open more import dealerships in this country off our tax dollars. How have we helped the American economy by allowing the government to do this????? The government, the public, the manufacture needs to think about this country America and stop thinking about greed. Every import vehicle sold; bought and built in this country will keep bring down the American automobile industry. Which we all know that the down turn of the automobile industry affects the American economy.

[kenngoldblatt]

The real problem here is getting lost in the details. Bigger is NOT better; it's simply easier for the people who want to control it. It's easier for the government to deal with a few giant corporations than millions of small businesses. And it's easier for those giant corporations to deal with a few distributors than thousands. But giant government, corporations or distributors DON'T create the same numbers of jobs (proportionally) that those millions of small businesses do. Nor do they pay the same amounts of taxes (proportionately) because the large corporations demand tax incentives for bringing their jobs into a given area. When are the politicians going to get it? Small business built this country and this society and is the only solution to keep it vibrant and healthy. "Too big to fail" is just as flawed a concept that the current crisis should put the lie to once and for all as focusing on profit as the only measure of an organization's viability. Unless we see that the role of business has more social implications than simply generating "money" we are destined for failure as a society.

[kenngoldblatt]

The real problem here is getting lost in the details. Bigger is NOT better; it's simply easier for the people who want to control it. It's easier for the government to deal with a few giant corporations than millions of small businesses. And it's easier for those giant corporations to deal with a few distributors that thousands. But giant government, corporations or distributors DON'T create the same numbers of jobs (proportionally) that those millions of small businesses do. Nor do they pay the same amounts of taxes (proportionately) because the large corporations demand tax incentives for bringing their jobs into a given area. When are the politicians going to get it? Small business built this country and this society and is the only solution to keep it vibrant and healthy. "Too big to fail" is just as flawed a concept that the current crisis should put the lie to once and for all as focusing on profit as the only measure of an organization's viability. Unless we see that the role of business has more social implications than simply generating "money" we are destined for failure as a society.

[IThoughtItWasFunnyNOPE]

When we were kids in high school and needed money for high school events or sports events, we went to the GM and Ford dealerships and the locally owned bank and got donations to pay for it every time...

As an adult working on community projects, when we sponsored clean-up days in our town, we went to the local car dealerships and the locally owned bank for dollars and locally owned BMI to donate dumpsters...while we provided the free labor to do it...including donations of paint for us to help old timers who couldn't afford to repaint their houses...

When we wanted a little league sports arena, we went to the local car dealerships and the locally owned bank and lumber yard for money and materials donations while we provided the free labor to build it...

Our GM dealership is closing...our locally owned bank can no longer write off charitable donations...at the July 4 Tax Day Tea Party, the local lumber yard owner stated that he will more than likely go out of business if cap 'n trade is passed because the cost of every product will go up, along with the cost of hanving it transported to the rural area and people would no longer be able to afford his products...

The Obama administration is systematically trying to kill off rural communities and their activities because they didn't vote for him...and he intends to destroy the US who totally rejects him and his ideology and racism...

We can certainly thank the dumb and gullible liberals for electing such a hateful, jealous PUNK, with a serious identity crisis and a brain mired in the 60's anti-government rhetoric...who is not even an American citizen into the White House, for destroying our free country!

[IThoughtItWasFunnyNOPE]

All because they were STUPID and GULLIBLE believing that this ignorant idiot was going to raise their ignorant behinds up out of the poverty they willingly wallow in, rather than educate themselves and get to providing for themselves....a UTOPIA where somebody was just going to wave a magic wand and MAKE THEM RICH while they sit there with their hands out and their heads back going feeeeed me! Feeeeed me!

[ibsteve2u]

"The Obama administration is systematically trying to kill off rural communities"?????

lolllll...try again.

Your boyz in the Republican Party are responsible for that...their free trade actions are causing the rural feeder industries that supplied the larger corporations who have relocated manufacturing offshore to die off right and left.

That is what is killing small towns: The death of small industry.

Given that rural areas often vote Republican, you would think that even the Republicans couldn't be so stupid as to cut their own throats by creating trade policies that could do nothing but force people to move to cities.

What the Republicans do to satiate their greed never ceases to amaze me. It would be hilarious, if it wasn't hurting America so badly.

[coachjohngill]

Yep, our goverment at work. Appoints a person to run GM (Goverment Motors) that doesn't know one thing about the car business. His own admission. We're headed in the same direction with health care. GI (Goverment Insurance) and rationing.

With no experience in running an automobile company the new president of GM, I saw his recent speach about the new GM (Goverment Motors), he certainly needs speach givings lessons from BHO.

2012 needs to get here quick so we can fix the stupidity applied to the programs of BHO, if there is an America to fix.

[stuart2020]

You are a real moron! And Obamas favorabilty ratings are still holding steadily high at 54% so shove it neo! The government did'nt BUY GM, they loaned it money and forced it to re-think how it does business so that in the future it would be profitable and not a threat to its employees and the country.

Already GM is planning to have the money to pay back the taxpayer ahead of schedule. The new Camaro is selling like hotcakes as will other new products GM is introducing since its emergence from bankruptcy.

You need to get a job and quit depending on the government for your rented PC payments and your trailer rent and foodstamps. Get a life you Rushbot!

[beaumuff]

Good job Obama, more will depend on the goverment now so take care of them. Good thing your celebrity status is dropping like a rock or we won't have anything in a few years. The party is over.

[stuart2020]

You are a real moron! And Obamas favorabilty ratings are still holding steadily high at 54% so shove it neo! The government did'nt BUY GM, they loaned it money and forced it to re-think how it does business so that in the future it would be profitable and not a threat to its employees and the country.

Already GM is planning to have the money to pay back the taxpayer ahead of schedule. The new Camaro is selling like hotcakes as will other new products GM is introducing since its emergence from bankruptcy.

You need to get a job and quit depending on the government for your rented PC payments and your trailer rent and foodstamps. Get a life you Rushbot!

[Slrman]

Does this mean that they cannot still be a car dealer? That they cannot switch to Toyota, Kia, Ford, or even go to "pre-owned" cars? You would think that GM is coming to town to slit the throats of everyone there.

I'm sure that if this dealership, like others, had a salesman or mechanic that was not producing, they would let that person go in a heartbeat. Business has to sometimes be ruthless but it keeps the economy going and the good performers employed.

[ibsteve2u]

by Slrman July 12, 2009 4:47 AM PDT: "Does this mean that they cannot still be a car dealer? That they cannot switch to Toyota, Kia, Ford, or even go to "pre-owned" cars? You would think that GM is coming to town to slit the throats of everyone there."

Exactly.

There are comments here that say things like "The Obama administration is systematically trying to kill off rural communities" and then are continued on to blame those who voted for Obama and typecast them a people who "sit there with their hands out".

All because GM - GM, mind you - chose to close dealerships and Obama didn't "wave a magic wand" and make it all better - with a friggin' hand out.

The hypocrisy of the right is...annoying.

[platteman]

Barack said he was going to spread the wealth. He is doing as he said. I just love the left wing liberals who are now getting a taste of the great Obambi and his merry men. Even Robin Hood wasn't as bold as Barry.
Just think, Government Motors, Amtrack, US Postal Service, they are all run by government and none of them have made money for years. Amtrack has lost money for 35 years. Imagine what will happen when they run health care, Cap and tax and VAT. Got to love a community organizer with no experience to do anything.

[ibsteve2u]

You shouldn't mention the U.S. Post Office.

I found it to be highly curious that - under a Republican Administration - they began selling "forever" stamps, which permanenly locks out any ability to compensate for rising energy costs etc.

Curious, don't you think, that the Republicans would do such a thing, which primarily benefits business while making the USPS vulnerable to future red ink - and thus vulnerable to future Republican calls for its complete privatization and/or sale?

Curious, indeed...

[presjfk]

Obama never said he was going to spread the wealth.

[rhs648]

What nis wrong with the forever stamp? Purchasing the stamp is optional. Isn't choice a good thing? Secondly, what service or product goes up in price after you purchase it? Does the auto dealer come back to you a year after you purchase a car and tell you that you owe more on it. Of course not. Thirdly, I believe that the postmaster presented the idea, not the Republicans. Even if the Republicans did suggest the idea, isn't it nice that something was done for the people instead of the government simply raising more money to spend. On this one, the glass is half full for me instead of half empty.

[farmerbb]

Imagine then the effect on MY town. We lost both the Ford dealer AND the GM dealer.

[mjvwsr]

lucky you

[mdennishartnett]

At 100 cars per year, or a little more that 2 a week this is a tough call. I had to "rationalize" a Regional Dealer Network during my career and it is difficult. Some of the people I had to cancel for purely economic reasons were, and some still are, friends as well as customers. I am sorry this is happening to Ms. Walder. I wish her well. Let's also not forget that this is Government Motors and their actions are with the full approval of the President. I have been buying Fords lately as they are a fine product that is not Government owned.

[mdennishartnett]

At 100 cars per year, or a little more that 2 a week this is a tough call. I had to "rationalize" a Regional Dealer Network during my career and it is difficult. Some of the people I had to cancel for purely economic reasons were, and some still are, friends as well as customers. I am sorry this is happening to Ms. Walder. I wish her well. Let's also not forget that this is Government Motors and their actions are with the full approval of the President. I have been buying Fords lately as they are a fine product that is not Government owned.

[rushlimpdrug]

GM gets government money, then closes dealers.
Makes real sense.
Shows how much faith they have in their future in America.

These stories about GM are worse that M.J. stories.

At least M.J. didn't ask for government money to bail him out.

[IThoughtItWasFunnyNOPE]

No, MJ's family just asked the City of Los Angeles to pick up the tab for his funeral expenses...didn't you go donate?

[stuart2020]

We thought you had all that covered.