Swan.my.id - Sullivan, Indiana, General Motors has approved two first-time dealership buyers to acquire a troubled Chevrolet GMC store, giving them a chance to rebuild the business after years of poor performance.
Alex Feldman and Michael Gitlevich became owners of the Chevrolet GMC dealership in Sullivan, Indiana, about 90 miles southwest of Indianapolis. Feldman serves as dealer principal, while Gitlevich is an investor.
The pair faced major obstacles before completing the acquisition. Neither had previously operated a dealership as a general manager. However, they continued pursuing the deal after several brokers questioned whether General Motors would approve them as franchise owners.
Their persistence eventually paid off. General Motors approved their acquisition of the Chevrolet GMC franchises, while Stellantis rejected their planned purchase of a nearby Chrysler Dodge Jeep Ram store.
General Motors Approves First-Time Dealership Buyers
Feldman and Gitlevich entered the dealership business with different backgrounds. Feldman worked in commercial real estate and e-commerce. Meanwhile, Gitlevich had dealership experience and strong knowledge of vehicle inventory acquisition.
The two friends decided to pursue dealership ownership after Gitlevich said he wanted to stop working for other companies. Feldman immediately supported the idea.
However, their lack of ownership experience created an early hurdle. Several brokers showed little interest because neither buyer had previously managed a dealership.
The situation changed when broker Bob Wolfbauer of the Tim Lamb Group introduced them to Barry Merrill. Merrill had previously owned dealerships and sold them in 2021. He agreed to serve as the experienced general manager for the planned operation.
Even with Merrill involved, the buyers still faced concerns about their credentials. According to Feldman, one broker eventually stopped communicating with them.
Rather than abandon the plan, Feldman contacted other brokers. He later reconnected with Tim Wild of the Tim Lamb Group. Wild had spoken with Feldman earlier, but the two did not have a suitable acquisition opportunity at that time.
This year, Wild suggested the Sullivan Group stores. The group included the Chevrolet GMC dealership and a Stellantis dealership. Wild described the opportunity as a strong strategic and financial fit.
A Troubled Dealership Creates an Opportunity
The Chevrolet GMC store had significant problems before the new ownership arrived. The dealership’s former general manager faced criminal charges involving theft and forgery. In early August, a court convicted him and sentenced him to six years in prison.
Feldman said the dealership also faced a distressed financial situation. In his view, those circumstances helped make the acquisition possible.
The previous buyer had received approval from Stellantis but failed to secure General Motors approval. Feldman and Gitlevich therefore submitted a letter of intent and began the acquisition process.
They also sought assistance from Biltmore Automotive Services. The company describes itself as a consulting firm rather than a brokerage. It helps first-time buyers navigate the complicated dealership acquisition process.
Tim Devine, a partner at Biltmore, said first-time buyers face many small tasks and potential problems during an acquisition. His firm helps buyers manage those challenges and receives payment only when a deal closes.
Devine viewed Feldman and Gitlevich as a strong combination. Gitlevich brought extensive automotive experience, particularly in inventory acquisition. Feldman brought an entrepreneurial approach and experience turning around businesses.
General Motors ultimately approved the pair. Stellantis, however, rejected their acquisition of the Chrysler Dodge Jeep Ram store because Merrill would serve as general manager rather than an owner.
Feldman and Gitlevich completed the Chevrolet GMC acquisition on July 7. The dealership now operates as Auto Exchange Chevrolet GMC under Auto Exchange Group.
New Owners Begin a Major Turnaround
The new owners inherited a dealership that needs significant improvements. Fortunately, the Chevrolet GMC building already meets the required image standards. Therefore, they did not need to make changes to the facility to satisfy that requirement.
However, Feldman said almost everything else needs attention.
The owners kept the existing sales staff and plan to add more employees. More importantly, they quickly increased the dealership’s vehicle inventory.
Gitlevich’s experience in vehicle acquisition helped the store build inventory quickly. Within three weeks, the dealership had 150 vehicles available for sale, according to Feldman.
The owners also started expanding the service operation. Their hiring plans include:
• A Business Development Center manager
• A quick lube technician
• Additional service technicians
• More porters
The new owners also increased employee pay. Feldman said the dealership gave raises to all employees.
In addition, the business plans to build a car wash on the property. Customers who purchase vehicles from the dealership will receive free washes. The service department will also use the facility to clean vehicles.
Plans for the Former CDJR Location
The nearby Chrysler Dodge Jeep Ram dealership presents a different situation. Stellantis decided to close the point after rejecting Feldman and Gitlevich’s acquisition plan.
Nevertheless, the new owners have another plan for the property.
They intend to convert an older building behind the former CDJR store into a truck service center. The facility will focus on fleet customers and heavy-duty service.
The owners have already ordered two heavy-duty lifts for the planned operation. As a result, the property could still become part of the broader Auto Exchange business.
Auto Exchange Group Targets More Franchises
Feldman and Gitlevich do not plan to stop with their first dealership. Their Chevrolet GMC store operates under Auto Exchange Group, and the owners want to expand their franchise portfolio.
A Ford dealership ranks as Feldman’s top priority for a future acquisition. After that, he is interested in pursuing Kia or Hyundai franchises.
He also mentioned Honda and Toyota as possible long-term targets. However, Feldman believes those brands remain beyond his current reach.
For now, the focus remains on rebuilding the Sullivan Chevrolet GMC operation. The owners must improve sales, expand service capacity, maintain sufficient inventory and strengthen the dealership’s overall operations.
The acquisition also demonstrates how an experienced management team can help first-time owners enter the franchise business. Although Feldman and Gitlevich initially faced doubts about their lack of ownership experience, they eventually secured General Motors approval.
The next stage will depend on how effectively they can transform the troubled dealership into a stronger and more competitive business.
Conclusion
The General Motors dealership acquisition gives Alex Feldman and Michael Gitlevich their first opportunity to operate a franchise store. They secured approval despite having no previous dealership ownership experience.
Since completing the purchase on July 7, the new owners have focused on inventory, staffing, employee pay and service expansion. They also plan to develop a truck service center next to the Chevrolet GMC operation.
Meanwhile, Auto Exchange Group has already begun looking toward future growth. Ford stands as Feldman’s leading target, followed by possible opportunities involving Kia or Hyundai.
FAQ
What dealership did Alex Feldman and Michael Gitlevich acquire?
They acquired the Chevrolet GMC dealership in Sullivan, Indiana. The store now operates as Auto Exchange Chevrolet GMC.
When did the acquisition close?
Feldman and Gitlevich completed the Chevrolet GMC acquisition on July 7.
Who is the dealer principal?
Alex Feldman serves as dealer principal, while Michael Gitlevich is an investor.
Why did General Motors approve the first-time buyers?
The buyers had limited ownership experience, but Gitlevich brought extensive automotive experience and inventory knowledge. Feldman also had an entrepreneurial background. Barry Merrill joined the operation as an experienced general manager.
What happened to the nearby Chrysler Dodge Jeep Ram dealership?
Stellantis did not approve Feldman and Gitlevich’s acquisition. The company decided to close the dealership point.
What are the owners planning next?
They plan to continue improving Auto Exchange Chevrolet GMC and pursue additional franchise acquisitions. Ford is Feldman’s top priority, followed by possible Kia or Hyundai opportunities.
