For a large part of the last century, General Motors was regarded as the world's number one automaker. During the 1980s, former Chrysler chief executive officer Lee Iacocca had the Chrysler pentastar shining at its brightest.
Now, the glory days of the Motor City are gone and the two Big Three car manufacturers have filed for Chapter 11 bankruptcy protection-Chrysler April 30 and General Motors June 1.
Chrysler is now owned by Italian automaker Fiat, the United Autoworkers Union and U.S. taxpayers. And GM North America will consist of four core brands, half the number that comprised the company before bankruptcy.
But even as their parent companies face declining revenues from slumping new car sales, Durham dealerships appear to be faring well.
Only one GM or Chrysler dealership in the Bull City, Omakase Chrysler, was closed, although approximately 790 Chrysler and 1,100 General Motors dealerships nationwide shut their doors earlier this summer. Another, Hendrick Durham Auto Mall-which sold various GM brand vehicles including Buick, Chevrolet, Cadillac and GMC-was merged with Rick Hendrick Chevrolet in downtown Durham.
Representatives from Hendrick Durham Auto Mall and Omakase Chrysler declined to comment for this story.
Customers said they are still purchasing cars from GM, despite the company's well-publicized bankruptcy, because of the quality of its cars and the service the company provides.
"I'm not as concerned with a big company such as GM going under as I am with the quality of the service I receive when I come into the dealership," said Durham resident Richard Reid who was purchasing a Cadillac STS at Hendrick Durham Auto Mall.
Reid said he has always valued the uniqueness of the company's cars, though he would not describe himself as a loyal GM customer.
"What I am a loyal customer of is service and quality," he said. "I stand behind them whole-heartedly because they stand behind their vehicles.... They try to put the very best in their vehicles."
GM officials have said repeatedly that they are working to ensure customers knows the automaker stands behind its vehicles even after filing for bankruptcy.
"GM dealers will continue to service GM vehicles and honor GM warranties, and U.S. and Canadian government guarantees of manufacturers' warranties are designed to reassure consumers," officials said June 1 in a press release announcing the filing.
Although Hendrick Durham Auto Mall's business has remained strong despite the difficulties of its parent company, other Durham car dealerships reported they have benefited from the negative publicity for GM and Chrysler.
Jamie Young, sales manager at University Ford in downtown Durham, said some customers who come in to purchase cars noted Ford was the only one of the Big Three automakers not to receive government loans.
"It might have played a small percentage role in their decision, but I think they chose Ford because of the quality of the vehicle," Young said.
He added that his dealership was especially busy selling used cars-50 percent of University Ford's business comes from pre-owned vehicles. Demand is so high that the dealership often calls its car owners to ask them to turn in their used car and buy a new one at a steep discount.
Additionally, new Ford models of Focus, Fusion and Fusion Hybrid have attracted buyers who are looking for more fuel-efficient vehicles, Young said.
"Every one we get on the lot we sell," Young said, referring to the Ford Fusion Hybrid. "The car business is doing great.... It's not all doom and gloom."
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