Loss of Treasure Coast car dealerships has ripple effect on workers

John Gehrig moved to Vero Beach with his father the day Hurricane Frances hit the Treasure Coast in 2004. But Gehrig is in the midst of another disaster — the loss of his job as a master technician at Dependable Dodge after the dealership lost its franchise agreement with Chrysler.

It’s a maelstrom that is affecting some workers on the Treasure Coast, even before the dust settles from decisions by Chrysler and General Motors to slash dealerships.

But some have more to lose, such as those who spent years getting certifications to work on certain car brands that may not be easily transferable to other brands.

The news is not uniformly bad: Vero Beach Chrysler Jeep Dodge is in the process of hiring 15 people with the possibility of more to come after picking up Jeep and Dodge franchise agreements, owner and dealer principal Jay Campana wrote in an e-mail to Scripps Treasure Coast Newspapers.

On the other hand, Vero Beach Jeep and Dependable Dodge in Vero Beach lost franchise agreements. Gehrig, a Chrysler man, lost his job.

The problem for workers like Gehrig is clear: The Treasure Coast now has two Chrysler dealerships — Stuart Jeep and Vero Beach Chrysler Jeep Dodge — down from seven a year ago. St. Lucie County does not have a Chrysler dealership, though the consolidation did not cause massive layoffs, said Gwenda Thompson, chief executive officer of Workforce Solutions, a Port St. Lucie-based non-profit work force development agency.

Instead “a couple people here, a couple people there” have lost jobs in the industry locally, Thompson said. Nationally, dealership closures by General Motors alone could cost 150,000 jobs.

Jensen Beach resident John Donnelly, for example, went from his general manager position with Charlie’s Dodge to Charlie’s Nissan before losing that position. He was unemployed for three weeks before taking a sales manager position at Stuart Volkswagen.

Donnelly, 50, is the father of two and had to dip into his retirement savings to pay bills.

“I spent 10- and 14-hour days looking for jobs,” Donnelly said. “I was driving all over and spending $100 on gas a week.”

Donnelly eventually found the job with Wallace Automotive Group after selling his boat and his Harley-Davidson motorcycle.

“My wife cried,” he said. “She was relieved.”

Gehrig, 23, has not been so fortunate. Gehrig said he saw the job loss coming weeks in advance. Technicians like Gehrig, at Dependable Dodge for nearly four years, are paid per job instead of hourly. Gehrig watched as the number of cars coming in kept dropping.

“I was almost relieved,” Gehrig said. “I hate to say it that way, but unemployment (will pay) more than my last three paychecks did. I went from $800 or $900 a week after taxes three years ago to my last paycheck there was $194 after taxes. That’s half my electric bill.”

Gehrig is in default on a $26,000 student loan he used to get a degree at NASCAR Technical Institute in Mooresville, N.C. He chose not to have medical insurance with Dependable Dodge and does not have it now. To make money, Gehrig has placed ads to do work on cars in his garage.

“I pretty much sold everything I had out of my garage ... just to get by,” Gehrig said.

Getting a job with a different dealership brand may be tough because he would need new training — training that comes out of the dealer’s wallet.

“I’m an oil change guy with a lot of certifications,” Gehrig said. “It’s like starting all over when you leave a company. That’s why I didn’t really mind (leaving) Ford and GM. I didn’t have a lot invested into them. I didn’t have a 401K plan. I was 18, 19 years old. I just went about my life. I’ve stuck with Chrysler.”

He has lived with his father since moving from North Carolina. His father, a local chef, pays the rent while Gehrig is supposed to pick up the utilities. But he’s struggling to uphold his part of the bargain.

“It’s been hard,” Gehrig said. “If I didn’t live with my father, I’d be homeless.”


Source