By HOWARD FRANK

Pocono Record Writer

September 15, 2009

Score it a victory for the little guy.

Four months ago, Gray Chevrolet Oldsmobile Cadillac of the Poconos was targeted for elimination by General Motors, a victim of the auto industry consolidation.

But the long-time Stroud Township car dealer fought back. As a result, Gray Chevrolet retained its GM dealer status, reversing the troubled automaker's decision to end a relationship of more than 50 years.

"It's business as usual," Gray Chevrolet President Bill Rinehart said in a written statement. "We're grateful for the support this community has shown throughout these past few months as we worked to have our franchise agreement reinstated."

Gray Chevrolet received a letter from GM in May that the automaker would be terminating its franchise agreement in the second half of 2010, according to Reinhart. It was a part of a massive, industrywide realignment in the retail segment of the American auto-maker industry. The changes were intended to make the struggling car companies more competitive.

But Reinhart didn't let it end there.

"After receiving this letter, I worked with my staff throughout the next few months to set up meetings with the executives at General Motors. I also spoke and met with several local political leaders who backed Gray Chevrolet and our desire to continue as the Chevrolet dealer in Stroudsburg," he said.

That included U.S. Rep. Paul Kanjorski, D-11, who sent a letter to GM President and Chief Executive Officer Frederick Henderson. In it, Kanjorski wrote, "Although I am fully aware of the unprecedented financial difficulties facing American automakers during these tough economic times, I urge you to take into consideration the economic consequences of dealership closures throughout the country, and most especially in my district in Northeastern Pennsylvania."

Kanjorski's letter emphasized the disparate effect a closing might cause in the county like Monroe.

"Especially in rural areas like much of my district, the closure of an automobile dealership can have a deep economic impact," the lawmaker wrote.

Reinhart, along with other local officials, prepared presentations for GM representatives, making the case for the dealership.

Of Reinhart, Kanjorski told the GM chief: "... his dealership historically has been a profitable dealership that provides much needed jobs and advertising revenue to the local community ... If GM plans being one of the most successful companies in the United States, it would seem to me that it will need profitable dealerships like Gray Chevrolet Cadillac."

Reinhart said that, some time after the presentations, "I was informed that they were rescinding my termination and that my franchise would be reinstated."

The notification came via a phone call and written agreement.

"Needless to say, I'm absolutely thrilled with this news, as I truly believe in the strength of Gray Chevrolet and of my entire staff," Reinhart said. "I'm especially happy for my 40-plus employees and their families, as they are what make Gray Chevrolet what it is today."

He said his greatest worry was for his staff.

"I'm proud to preserve their jobs, as that was my largest concern when I was appealing General Motors' decision. They are an amazing team, and we look forward to continuing to serve this community in the years to come."

Kanjorski was similarly happy with GM's decision.

"I am pleased that General Motors re-evaluated its previous decision to close Gray Chevrolet after I alerted the company's leadership to the fact that this dealer has been profitable and provides a needed service in Monroe County. Too often in times of crisis hasty decisions can be made in error, and I am pleased that General Motors' leadership recognized its mistake."

Kanjorski supported a bill containing a provision that would require automobile companies accepting federal funding, such as GM and Chrysler, to re-establish agreements with car dealerships that the companies had dropped during their recent bankruptcy proceedings.

The provision contains language similar to legislation Kanjorski co-sponsored to help auto dealers whose contracts were terminated.

The bill passed the house in July. The Senate is working on a similar measure.