GM plays a role in SHV swimming pool shortage

By Liz Elan - bio | email

SHREVEPORT, LA (KSLA) - As GM declares bankruptcy, 6,000 more dealerships are on the chopping block.

Less places to buy cars means more of a problem for cities, counties, states and you.

As far as the eye can see, a line of brand new GMC trucks on Mike Morgan's back lot in the Shreveport Automall sit idle along with millions of dollars in city money for each car not sold.

General Motors plans to cut thousands of dealerships around the country. Dealership owner Mike Morgan says that will in turn cut into the tax base for local and state governments. "We are talking millions and millions of dollars," says Morgan.

The city's Chief Administrative Officer Dale Sibley says in 2007 the city brought in 8.7 million dollars in sales taxes from cars. In 2008 it was 8.3 and already in 2009 it's down 14.5%. "If we had that money right now, we wouldn't have an issue of swimming pools, fire stations or pay raises or getting a reserve up to where we want it to be," said Sibley.

Mike Morgan says "when those sales taxes are down, it definitely effects the way they can service the citizens of Shreveport and Bossier."

Morgan says the domino effect of General Motors stretches far beyond the plant workers, the dealerships and the suppliers.

"People are kind of getting an awakening on what effect this has on everything they do in their lives."

As the fate of our economy rides on a GM just start, dealerships are trying to drive in that the American automotive industry is a footprint in our lives to big to let disappear.

Unlike other dealerships, mike morgan actually says his business is picking up and that the sales tax problem in Shreveport-Bossier is not that bad compared to other parts of the country.