Staff Photo by Gillian Bolsover Sales consultant Shain Hamby speaks to Robert Corral at Courtesy Dodge in Dalton Thursday. The dealership, which is loosing its affiliation with Dodge, plans to stay in business selling used cars.

DALTON, Ga. — Courtesy Dodge has less than two weeks to unload 43 remaining new vehicles after Chrysler announced the dealership is one of 789 being axed as part of the automaker’s restructuring plan.

But rather than closing its doors, Jim Higdon, business manager, said the Dalton dealership will remain open and focus on selling used cars.

Mr. Higdon said the dealership has until June 9 to sell the vehicles under the Dodge name, but he is hopeful Chrysler’s bankruptcy judge will give the dealerships more time to sell their remaining inventory.

Dalton Mayor David Pennington said he is glad to see the city will keep at least part of the Courtesy dealership.

“That is a help, but the used car market is not nearly as valuable as a new car dealer,” he said.

He said he is disappointed with the way the Detroit automakers and Washington lawmakers have treated the dealerships they deem unnecessary.

“In this car crisis, everyone is focused on Detroit and the manufacturers, but no one is looking after the dealers,” Mr. Pennington said.

The dealerships are often vital to a community as a major source of tax revenue and jobs for its residents.

“(Auto dealerships) are some of the best jobs,” Mr. Pennington said. “They usually employ 30 to 100 people, pay good wages and have extremely low turnover.”

Mr. Higdon said the past couple months have been very difficult trying to determine what steps to take after the closure, but by turning its focus to the used car market, Courtesy can keep most of its 30 employees and can continue contributing to the community.

“We have to get the word out that we are still going to be here,” Mr. Higdon said.

Mr. Pennington said he hopes the city doesn’t lose any more dealerships, because he knows the loss means much more than shrinking tax coffers.

“We are glad part of it is staying open, and we hope we don’t lose anymore,” he said.

a Different story

In Dunlap, Tenn., Forrest Cate opted to close his Ford, Chrysler, Dodge and Jeep dealership after it became evident he would be one of those Chrysler dealers tapped for closure.

“Clearly we have too many dealerships for the current market conditions,” Mr. Cate said. “This is an adjustment, and we are part of that adjustment.”

Mr. Cate announced in late March that he would be shutting his doors — a month before Chrysler named the dealerships that must close by June 9 and General Motors notified 1,100 dealers that their franchise contracts would not be renewed in 2010.

The Dunlap auto dealer said he had trouble operating due to the automotive credit crunch and saw the writing on the wall. He was certain he would have been among those dealers Chrysler slated for closure had he not decided to close on his own, he said.

“I kept looking in the mail expecting to get a letter, and I just couldn’t live like that,” Mr. Cate said. “We could not run this store without both (Ford and Chrysler).”

Officials in the Southeast Tennessee town of about 5,000 said the dealership closure will be a big blow to tax coffers, but it is much more than that.

Dunlap Mayor Dwain Land said the Forrest Cate dealership was a major source of tax revenue, as well as the employer to about 25 people and a contributor to a number of schools and charities.

“A lot of good people lost their jobs,” he said. “(Losing) the local tax that is brought in from new and used vehicle sales is a big blow.”

He said he was unsure what the tax loss would be, but he called it “significant.”

Schools, charities and youth sports organizations also will feel the effects of Forrest Cate’s closure, because the dealership was a major sponsor to Little League baseball, high school athletics and also regularly donated vehicles to the Sequatchie County High School automotive classes.

Sequatchie County Executive Michael Hudson knows it will be difficult to replace Forrest Cate. His charitable contributions to the community will be missed.

“As a whole it is going to affect us greatly,” he said “You hate to see a business such as this leave. It’s like a part of you is leaving.”

Howard Hatcher, executive director of the Sequatchie County Chamber of Commerce, agrees that the support to Little League baseball and other organizations will be a big loss unless someone else steps up to fill the hole.

“He was always ready to step up when there was a need,” Mr. Hatcher said.

Mr. Cate said he believes a business has an obligation to give back to the community.

“I don’t think you can ever do too much,” he said. “I think it is a responsibility of business people to get involved and do that.”

Mr. Higdon said if Courtesy was to close entirely, it too would be a loss to area organizations.

He said Courtesy Dodge was a major sponsor of high school rodeo events as well as other youth activities.

Even without the Dodge name, the dealership will continue giving back to the community.

We have been here 20 years, and we plan to be here another 20,” Mr. Higdon said.