Lupient Chevrolet received word it will live to see another model year as General Motors reversed its decision to discontinue its franchise agreement with the Bloomington-based auto store. General Motors announced its decision late Friday, much to the relief of the Lupient family.
The store was one of General Motors' "originally terminated dealers," and as a result the store "spent a tumultuous year in wind-down mode." But the [store was] officially brought back into the GM family," officials said in a statement.
"This is a great day for our employees and customers," owner Rick Lupient said.
As part of GM's original plan to end its contract, Lupient Chevrolet began selling off inventory in Bloomington while also completing the acquisition of Grossman Chevrolet in Burnsville.
GM's decision to reinstate Lupient's contract in Bloomington is one of 661 such reversals across the country. In 2008, GM announced plans to shutter about 2,400 dealerships as part of a U.S. government-backed bankruptcy restructuring plan. About 30 GM dealerships were targeted in Minnesota, most in rural areas.
GM's pullback struck at the same time Chrysler also terminated hundreds of franchises nationwide. The Minnesota Auto Dealers Association estimated that the dealership terminations from both auto giants would cost 3,200 jobs in the state.
21 reinstated in Minnesota
But many dealers complained that they unfairly targeted for closure and noted that their dealerships were not only profitable but often award-winning stores. Lupient and the other targeted dealers in Minnesota fought back, seeking help from The Minnesota Auto Dealers Association, Minnesota's congressional delegation, the General Motors appeals process and arbitration.
