The reality, he said, is that GM will not fail.
“That’s not going to happen,” he said. “The government’s not going to allow it, GM’s not going to allow it and the public’s not going to allow it.”
Most Allen Gwynn customers are not concerned over GM’s future, and so news of the dealership’s more concrete future would draw a new audience, he said.
He planned to seize on Chevrolet’s new Camaro, as well as its critically acclaimed Malibu and upcoming Volt, an extended-range electric car, to market to a new audience.
Those vehicles have helped elevate the automaker’s status among industry experts, although GM dealers may still face an uphill battle related to negative public perceptions of the quality and reliability of American cars, despite recent improvements, said Jack Kyser, head economist for the Los Angeles County Economic Development Corporation.
“There’s just a little bit of skepticism, and yet the irony is that both Ford and GM are coming up with really high quality cars,” Kyser said.
Still, business at the dealership has been stronger than at competing stores during the recession, particularly when compared with Star Chrysler-Jeep, which is on the opposite side of Brand Boulevard from Allen Gwynn Chevrolet.
Allen Gwynn’s sales have fallen about 10% from last year, Nadjar said. Most auto dealers’ sales have dropped more than 30%, city sales tax returns show, and Star Chrysler-Jeep has reported a 50% drop in transactions.
Sales have been buoyed by continued interest in large Chevrolet vehicles like the Tahoe and Silverado, which remain the dealership’s top-selling cars, Nadjar said.
Other cars, like the Malibu, have drawn interest from owners of Toyotas and Hondas, who have traded in their vehicles for the American brand, he said.