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Running on empty: Downfall of City Motors

Sunday, June 21, 2009
(Updated Monday, June 22 - 7:29 am)

GREENSBORO — Like many small car dealerships across America, City Motors is a family business.

Leonard Cranford opened the dealership almost 40 years ago. His son, Mike, followed — his workplace since high school.

They weathered gas crises, corporate turmoil, recessions. They sold cars — Ramblers, then Pacers and Gremlins, then Jeeps and Mazdas — by catering to local customers and forging close friendships.

At City Motors, you could rely on the Cranfords’ reputation and down-home style.

Today, the dealership that sits on a prime piece of Westover Terrace is little more than used-vehicle sales and service. Earlier this month, the Cranfords parted ways with their main business partner.

Chrysler didn’t want them anymore.

It wasn’t personal, the company said; in its bankruptcy proceedings over the past several weeks, it shed 789 dealerships, saying it had too many people selling too few cars and trucks.

None of what’s happened these last few months has surprised the Cranfords. In a way, it has confirmed what they’ve felt was coming all along.

What has happened to City Motors is happening across the country as the auto industry undergoes a reformation that will see fewer makes, models and dealerships.

The story of City Motors — of all the cast-off dealerships — is a story of what’s getting left behind as the auto industry gets remodeled.

“I can’t tell you the number of people who’ve called and said, 'We buy (cars) from City Motors, we don’t buy them from Chrysler,’ ” said Mike Cranford, the dealership’s general manager. “I think they’ll lose a ton of business through this.”

Ramblers, Gremlins, Jeeps

Leonard Cranford bought City Rambler in 1962, the small fringe-brand dealer at Elm and Bellemeade streets in downtown Greensboro.

Cranford had worked in the auto business since the 1950s, and he wanted to own an independent business.

Cranford, 80, still comes to work every day in the building he designed. He wears a tie and suit long after his sons turned City Motors into a casual workplace.

Cranford kept the growing dealership downtown for more than five years while he bought, developed and built on its current Westover Terrace site.

He opened the doors of the new City Motors on Labor Day, 1969.

Not long afterward, he added Jeep to the mix of cars. Soon American Motors, which made his primary product, would buy Jeep.

Business was strong. The company sold dozens of cars a day, becoming one of the manufacturer’s top dealerships.

City Motors sold a growing line of American Motors cars, including the Pacer and Gremlin.

Mike Cranford, 53, began working for the company while a student at Grimsley High School.

He joined full time after graduation in 1975, around the time that the dealer picked up the Mazda brand.

The Hollins family is typical of the generations that have stuck with City Motors.

The late Robert E. Hollins of Stoneville began the family tradition of buying from City Motors in the 1960s.

Just a few years later, his son, Robert T. Hollins of High Point began buying cars from City Motors as his father did.

“I’ve bought at least eight cars from them,” Hollins said. “They’re not like a regular dealer. They’re more friends than they are dealers.

“Last time that I had my wife’s van up there, Mike just threw me the keys to his own vehicle. 'Use this and we’ll get it fixed.’ That’s the way they operate.”

By the 1970s, City Motors was at its peak with around 65 employees and sales of more than 100 new and used Jeeps and Mazdas a month.

“It was fun,” said Mike Cranford. “What kind of business can you think of that has shorter hours, more pay, more fun?”

Fellow workers were made to feel special.

“This has been a family. Our second family, I guess,” said Gay McCann, 66, the dealership’s bookkeeper and receptionist, who has worked there for nearly 47 years.

Even now, the bond is so strong that she finds it easy to share personal concerns with Leonard Cranford.

“It’s not just the job,” she said. “You can go talk to them and whatever they can do to help they will. My husband’s in the hospital. Mr. Cranford asks me how he is every day. He’s concerned.”

Time to get out

Over the years, the Cranfords watched their business cycle change, mostly for the good. But their partnership with Chrysler, once it took over Jeep from American Motors, was never built to last.

“When it was just Jeep it was good and when it was American Motors it was good. It definitely took a step back with Chrysler,” Mike Cranford said.

Chrysler had developed a dispersed network of many small dealers. But about five years ago it slammed that strategy into reverse. It began pressuring those small dealers to consolidate and sell all three of Chrysler’s brands — Chrysler, Dodge and Jeep — from big stores.

The Cranfords felt their one-brand Jeep strategy, in addition to Mazda, worked fine for them.

Chrysler offered to help them set up another dealership outside Greensboro in exchange for City Motors Jeep.

“The bottom line was, we were Greensboro people,” Mike Cranford said. “We don’t want to go to another town maybe 50 miles away to run another dealership. We’re pretty content with what we’ve got.”

Mike Cranford sensed a growing unfairness that rewarded more cooperative dealerships. By last year, the Cranfords felt it was time to part ways with Chrysler.

They began negotiating to sell the Jeep franchise to Asbury Automotive Group, owners of Crown Chrysler Dodge.

Chrysler volunteered to contribute $600,000 to the agreed price of $2.1 million to help Asbury close the deal, Cranford said.

In October, however, a few weeks before closing, the deal fell through, without explanation.

Asbury’s treasurer, Ryan Marsh, said the company routinely looks at companies to acquire, but he declined to say whether City Motors Jeep was one of those.

With that deal dead, the Cranfords decided to focus on Jeep, so they chose to offload the Mazda brand.

Negotiations to sell Mazda to Flow Automotive went smoothly — the deal closed earlier this spring — but Mike Cranford could see the Chrysler situation weakening.

The automaker pushed harder for dealerships to buy cars. In that, Chrysler wasn’t alone. The burgeoning recession and financial crisis that crippled credit markets for months has decimated auto sales. Although no one was buying, factories kept rolling out the models.

“I can remember for months on end their saying, 'This is going to be the last time we’re going to ask you to buy

cars,’ ” Cranford said. “And I think this is kind of what led to their demise. Dealers just don’t have anywhere to park them. They were producing them with no demand.”

Cranford got a bad feeling about it all and began to dramatically slow his purchases.

Although he had little to sell, he also hasn’t stuck himself with inventory he can’t unload as a result of Chrysler’s bankruptcy and losing the Jeep dealership.

In the end, Cranford believed it was more than coincidence that Asbury and Chrysler pulled out just months before Chrysler sought a government bailout and declared bankruptcy.

Through those bankruptcy proceedings, Chrysler has essentially taken back the Jeep franchise from Cranford at no cost and can give it free to any dealer it chooses, he said.

He expects Crown to get that franchise. Asbury said it has had discussions with Chrysler about taking over Greensboro’s Jeep franchise, but nothing has been decided, Marsh said.

Worried about the future

The Cranfords know their land is valuable — dozens of developers have been in touch already. But the Cranfords are worried about their employees’ futures as well, Mike Cranford said.

He is trying to see if there’s any way to run City Motors as a used car and service operation. But without new cars, it will be very difficult, he said.

The tragedy, he said, is the end of a type of business that is rooted in hometown attitudes.

The Cranfords ran their dealership to please the people of Greensboro, not Detroit. And it worked for nearly 40 years.

It worked so well that Robert Hollins drops by City Motors to say hello to people there even when he doesn’t have any business to do.

Now a third-generation of the family — his 40-year-old son, Brian, — is a customer.

And for Leonard Cranford, who celebrates his 81st birthday soon, the nation is diminished for what happened.

“That is just not right — what they have done — to go in and take something from a man that he has built up,” he said. “I’m through with the car business.”

Contact Richard M. Barron at 373-7371 or richard.barron@news-record.com

Accompanying Photos

Joseph Rodriguez (News & Record)

Photo Caption: Leonard Cranford opened the dealership almost 40 years ago. His son Mike followed.

Comments

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northoftheboro

June 21, 2009 - 7:53 am EDT

I wonder if City Motors gave heavily to Republican candidates and causes over the the recent years? It is starting to surface, oddly, that many of the Chrysler dealerships that were forced to close by the Obama Administration were those that were financially successful, but donated to GOP and conservative candidates. By contrast, many of the dealerships that were allowed to stay in operation by the current socialist regime were those that gave heavily to Democratic causes. If this proves to be true, then the legislative branch will have grounds to impeach Barack Hussein Obama if the GOP re-takes Congress in 2010.

rmacz

June 21, 2009 - 8:12 am EDT

This is part Obama's stimulous plan, 11% unemployment, and they think we'll recover by firing Republicans, my my my.

balance

June 21, 2009 - 10:14 pm EDT

Uh, hello?!! Check out the markets. They tanked in the last year of proto-fascist Bush regime. Since Obama has taken office the markets have risen steadily. If you are looking for corruption, look at Bush/Cheney/Rumsfeld. The facts speak for themselves. And I don't get the socialist bit about Obama. His economic advisors are Chicago boys for heaven's sake. University of Chicago is the epicenter of radical right-wing, laissez-faire capitalism. Fortunately, these advisors have learned from the current fiasco and are seeking a more balanced capitalism.

jbrewer

June 22, 2009 - 12:54 pm EDT

If you look at the history of this country, you will see that the past recessions have lasted approximaely 18 months, with the turnaround coming with in that time frame. Now that we are starting onto the upswing, leave it to the Democratic Party, and the Obama-philes to take credit for what is a natural procession of events. Wake up and smell the coffee, people!

gatecitycanes

June 21, 2009 - 9:06 am EDT

Starting to surface where? Fox News?

Of course most of the car dealers who are losing their dealerships donated to the Republicans. It's also true that most of the ones that are being allowed to keep their dealerships also donated to the Republicans BECAUSE MOST OWNERS OF CAR DEALERSHIPS DONATE TO THE REPUBLICANS!

Car dealers gave to the Republicans over the Democrats by a 3-1 margin in the 2008 election cycle and the automotive industry as a whole also made donations to the Republicans at the same clip (you can see all this information at opensecrets.org - a site that allows you to parse political donation sources).

When you're closing almost 800 dealers, it stands to reason that most of them will have given to Republicans. Of course the dealers are claiming its political. Its just sour grapes.

Keep holding out for that impeachment proceeding, though.

Paul J

June 21, 2009 - 10:40 am EDT

The election is over. The Republicans created this quagmire now get over it.

onbe1kanoby

June 21, 2009 - 4:20 pm EDT

What in the world does Obama, have to do with the American Auto nothing! This is so unfair, they in the American Auto Builder Club of these United States have been building cars that don't stand up to international standard!
Therefore the car dealers, were losing money because those cars that were sold, spend more time in the shop them on the road! Causing me and many others to buy any thing but a car built in the USA! So stop talking about what is not being done and do something to keep great jobs in the USA and not in other country's... Do you remember Guilford Mills? Or other company's that called Greensboro its home... They are gone, not because of a Republican or Democratic! Wake the Funk UP.. Stop seeing black and white.. And see that if they are good enough to go to war for me and my free, then there good enough for me! PERIOD.. That is how it is..

Paul J

June 21, 2009 - 8:39 am EDT

Hold the sympathy for City Motors. Remember they help seal their demise by selling cars to people they knew could not afford them and sold unneeded services. They were not crying when the money was flowing.They made the money so fell sorry for the people who lost everything. These owners got what they deserved and ask for. They signed the contract along with their lawyers that gave Chrysler the right to take back their franchise.

timflowers

June 21, 2009 - 12:06 pm EDT

First, City Motors is run by some very good people. I bought a used car from them years ago and the entire transaction was fantastic. However, I think they were shortsighted to not add additional brands over the years. They could have been the area's dealer for Kia or Smart (as examples) had they tried. And perhaps they did try but were outbid by larger dealerships.

Second, I continue to be amazed by how the right wing nut-jobs find a way to blame Obama for everything wrong in America. The man has only been in office 6 months! He inherited these problems from 8 years of GOP rule. Why is it that Republicans (the party of personal responsibility) refuse to take responsibility for anything? All they do is go around pointing fingers and complaining, never offering solutions. It's always the blame game, and then when they do manage to get in power, they make things even worse. (Which they then blame on the prior administration.) Amazing.

rmacz

June 21, 2009 - 1:25 pm EDT

Amazing, 13 months ago the unemployment rate was 5%, Democrates took over the houses in 2006, Obama fires car dealers for being Republicans, and Democrates get their facts wrong and call us names.

greywolf

June 21, 2009 - 7:51 pm EDT

rmacz... *lol* Thanks for a great laugh! I can't help chuckling when I hear that kind of "Democrats caused it" nonsense. You obviously got the right-wing chain(e)mail back during the campaign and bought it hook line and sinker. How funny! This economic collapse of ours was a Wall Street-based disaster led by Bush's robber baron cronies. Get a grip, man!

justaguy46

June 21, 2009 - 1:39 pm EDT

I hope the Technicians can take all the high-tech equipment, that the nerds who designed modern vehicles has made necessary, with them if they wish to continue in the auto repair business. Without the fancy scanners, only a tire store is in their future.

tarheel19906

June 21, 2009 - 1:49 pm EDT

I purchased a Mazda B2000 from City Motors back in the day, was treated very well, got excellent service and never had any complaints. I got to know the Cranfords a few years back from coaching his son Christian in basketball and can tell ya, you wont find a nicer and supporting family. I hate this has happened to Mike, but knowing him, he will bounce back, he isnt a quiter

phil221

June 21, 2009 - 2:10 pm EDT

Another American Owned & Operated company lost to an out of touch administration. It started w/ Clinton and NAFTA , then the final nail was Bush and CAFTA. We need real change in America and neither the Dems of Reps in my opinion are getting the job done.We were promised change and all I see is a broken record. Same crap just different people. When are actually going to have a President and Admin who really cares about the American people and the American way of life. We need someone in the office who actually cares about AMERICA and not self serving persons. I am sorry for the owners and employees of Gate City motors. It must be hard to watch a business you spent 40 years building to be gone in a moments notice by greedy people who I am sure made a good deal of money prior to them begging our Government to use our money to bail out there greedy a----. Then to still go belly up, we should of never bailed them out to begin with oh yes but then the union would not have part ownership of ? (nothing becuase they will not survive not in this enviroment). I hope that the people who work there can find employment. It is scary out there!!! I own my own small business and it is hard work.

Paul J

June 21, 2009 - 7:15 pm EDT

Remember NAFTA started with Nixon and yes was signed by Clinton. It was the original idea of the republicans. Both are to blame.

mattchri

June 21, 2009 - 5:50 pm EDT

Mr. "C" is a special person.. however, Mike successfully killed the business...Leonard, is and was the life blood of City Motors. Preppy arrogance will not get the job done Mike!, and oh yea, I'm not an ex-employee, just a previous customer...Key words, previous customer.

Remember

June 22, 2009 - 9:24 pm EDT

Just remember that Mr. Cranford is a father, a husband, and a friend to many in Greensboro. To say he is preppy or arrogant shows your ignorance.

greywolf

June 21, 2009 - 7:59 pm EDT

I don't know the Cranfords... I'm sure they're nice folks. So, moving on...

Local auto dealerships pull in crates of cash for their owners... money-making machines, if you will. Okay, sure, the last few years haven't been pretty for many of them and some have actually lost money. However, check out your local car dealers' neighborhoods and club memberships. These guys fall well within the top tier of income earners in any given community. How have they done that? Okay, maybe by building some friendships along the way for customer retention purposes, but they primarily built those fortunes by selling cars to you and me at a hefty profit. When their doors close, they'll still be very, very wealthy men and women. Don't feel too sorry for them.

rmacz

June 21, 2009 - 9:03 pm EDT

Greywolf, you're about class envy, I've never got a job from a poor man. Since your little left wingers took control, they've hired over 250,000 government employees, all union at tax payers expense, run up the debt to astronomical levels, and are still cutting the tax base. This story is about the American dream that most people have passion and pride for. This family has worked hard, jobs are at stake and all you can think about is partisanship. You're sick man.

greywolf

June 22, 2009 - 9:40 am EDT

rmacz, you're a piece of work! *lol* Talk about partisanship? You and your right-wing scream machine jumped on partisanship related to this topic bright and early on Sunday morning! What was it? 8:12 a.m. on Sunday morning that you were laying all of this on Obama's doorstep? Get a grip, young fellow, do your research. This was Bush's mess; Obama is just the guy trying to clean it up.

jbrewer

June 22, 2009 - 1:06 pm EDT

Neither the Republicans or the Democrats will straighten up the government until we rid ourselves of the "good ol' boys" and the career suck-ups and goverment leaches that we currently have in Congress. Complaining about eash others' party and /or leader will not solve this problem or clean up " the mess".

JacofHearts

June 22, 2009 - 2:09 pm EDT

Back in the good old AMC/Jeep days, I worked for Bob King AMC/Jeep in W/S. I can tell you that City Motors was our toughest competitor and always a class act. I remember driving by to see a lot full of Black Gremlin X's with Gold stripes. That car with a 304 V8 was the bomb! I don't know if it was Mike's influence or not but City ALWAYS had the coolest AMC cars in the best color combos. Of course we kicked their butts with tricked out Jeeps but I digress...

Hang in there Mike.

"Suitcase" Jac

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