VW Mazda could soon be the third car dealership in the past four
months to succumb to the economy, leaving five dealers in the
once-vibrant auto hub.
VW Mazda could soon be the third car dealership in the past four months to succumb to the economy, leaving five dealers in the once-vibrant auto hub.
Scarce, dusty, used inventory and locked doors occupied the quiet, seemingly abandoned dealership on Chestnut Street Wednesday afternoon. VW and Mazda have stopped fronting Owner Lorraine Marshall new cars – meaning she is not longer getting credit from the parent companies – because the vehicles aren’t selling, according to sources who have spoken with Marshall.
When reached on her cell phone Wednesday afternoon, Marshall said she unwilling to talk and then hung up the phone. Sources close to her said she will continue to sell down her used lot after closing the service department late last month. Without reimbursement coming down from distributors, it is not financially feasible to honor warranties, sources said. General Manager Greg McKenna also could not be reached and has declined to comment in the past.
Nobody was on site to confirm the vendor’s fate late Wednesday afternoon and no signs were posted on any windows. Local industry sources have said for weeks that the auto seller was on its way out thanks to same credit and financing issues that drove Gilroy Pontiac Buick GMC and Gilroy Ford Lincoln Mercury out of business last February.
After those dealerships closed and left 57 people without jobs, one Mazda employee – who would not give his name because he was not authorized to speak to the media – said the dealership was struggling with the same financing problems strangling other nearby dealerships.
It was unclear how many VW Mazda employees lost their jobs or would lose their jobs. In addition, it was unclear what would happen to the land owned by the dealership’s previous proprietor, Adam Sanchez.
