How two Canadian GM dealerships have survived 100 years: Lots of persistence

Two auto dealerships in the Oshawa, Ont., area are about to celebrate a remarkable milestone — 100 years in business selling vehicles for General Motors, a company founded a little more than a dozen years before these retailers opened their doors.

In an ever-fickle business in which countless dealerships have come, gone or sold out to large groups, these two family-owned enterprises say they have managed to stay independent with the support of loyal employees and satisfied customers.

They have endured countless challenges, such as the Great Depression, the Second World War, the rise of automakers from Asia, the 2008 financial crisis and the resulting bankruptcy of GM in 2009.

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Yet even in a changing retail environment, these businesses see no reason they can’t keep going for another 100 years.

“I don’t see why we won’t be, as long as the customers are taken care of,” said Gary Dalby, general manager of Roy Nichols Motors, in Courtice, east of Oshawa.

The Chevrolet dealership will mark its 100th anniversary on Sept. 22 with a celebration that includes local politicians and GM representatives. In a nod to its deep history, a 2022 Camaro will be given away by Lloyd Downs, a 100-year-old customer who only recently surrendered his driver’s licence.

STAFF: THE STUFF OF LIFE

Just 12 minutes west on King Street in Oshawa, Ontario Motor Sales Chevrolet-Cadillac is also preparing to celebrate its anniversary — April 23, 2023 — under the ownership of Tony Willson, great-grandson of founder Norvall Willson. Like its neighbour, the dealership has relied on staff dedication and resourcefulness to navigate through rough economic waters.

“Historically, it’s an amazing success story,” said General Manager Dave Baker, who will have been with the company for 41 years in September.

Both dealerships point to the shutdown of the GM’s Oshawa Assembly plant in 2019 as a devastating low point for their businesses. Factory workers lost their company discount on car purchases, and animosity against GM over the closure rose in the community, said Baker, adding that Ontario Motor Sales lost two-thirds of its sales overnight. Roy Nichols lost at least half, said Bob Owen, dealer principal and great-nephew of dealership founder Roy W. Nichols.

“A lot of GM employees were upset; a lot of them walked away and bought other vehicles,” said Owen. “That really hurt us.”

To make ends meet, the dealerships cut staff and turned to their service departments and body shops. The reopening of the GM assembly plant in November 2021 to build Silverado pickups was “a miracle” that helped restore good relations with the community, Dalby said.

A HISTORY OF ADVERSITY

It’s far from the first time these dealerships have faced challenges. In the first two years of the Second World War, Baker said, Ontario Motor Sales sold just two cars. To stay afloat, staff waxed turnips, which were then sent to soldiers overseas.

Roy Nichols Motors, meanwhile, faced an existential challenge in 2009, Owen said. GM Canada was closing dealerships while the U.S. parent company was in bankruptcy.

Remaining dealerships were pressured to build new showrooms to upgrade their branding.

“They [GM representatives] told me, I’d have to put up a new building or you’re out,” Owen said. “It was at the worst possible time.”

After deciding to build the new dealership, “I was on pins and needles,” he said. “It was a tough time.”

Both dealerships attribute their success to doing the hard work of building loyal staff and providing a level of customer service that leads to word-of-mouth endorsements.

Of the staff of about 115 at Ontario Motor Sales, one employee has been with the company 66 years and another for 52 years, said Baker, who began at the dealership a a teenage “lot lizard” washing cars and sweeping the lot.

Baker also notes the dealership’s commitment to the community.

“We worked really hard to remind people we were in this business through thick and thin,” he said.

‘MAKING MONEY’ AND ‘DOING WELL’

Roy Nichols also has long-tenured people among its staff of 75, including Owen, who bought the dealership from his uncles, Fred and Roy Owen, in 1994. Dalby, the general manager, began at Roy Nichols washing cars as a teenager, worked for GM from 1961 to 1995 and rejoined the dealership in 1996.

At 77, Owen said he has no plans to sell. “We’re making money, we’re doing well. What’s the point in getting rid of it?

“Just looking after the customers is the secret, giving them honest deals and looking after them when they have a problem.”

Owen is proud of the honours the dealership has earned, including the President’s Club Award in 2021 as one of the top 50 GM outlets in Canada.

Dalby also said that customer loyalty is what keeps Roy Nichols Motors thriving. Though buying habits are changing as customers research cars online, “There’s still all kinds of reasons you have to meet” to complete a sale,” he said.

“Over time, you develop friendships with your customers. Having that firstname basis will drive repeat business.”

Ontario Motor Sales works hard to avoid complacency, Baker said. “The one thing you can’t do in the auto industry is rest on your reputation.”

CORRECTION: A previous version of this story incorrectly spelled Gary Dalby's name.