Video: Car dealership owner says racism driving him out of business
EVERETT, Wash. - John Reggans is trying to stay in the cars business. Specifically, he's trying to hang onto Everett Chevrolet, the dealership he's owned in its namesake city since 1996.
At his dealership located along Evergreen Way, the doors are open, and the lot is full of new and used cars. But Reggans says he really can't sell the cars, as everything is currently tied up in court.
The number of employees has gone from more than 75, to just a skeleton crew of five that Reggans says he's paying out of his own pocket.
And then there's the subject of race. Today, Reggans, who is black, got the backing of the NAACP which is siding with Reggans, saying General Motors is trying to pull his dealership because of racism.
The backstory is litigation between the dealership and GMAC, which is financing Everett Chevrolet's inventory that still sits on the lot. A spokesperson for GMAC says the dealership failed to pay for some $800,000 of sold cars and filed suit to recover the money.
But Reggans' attorneys won that suit before a Snohomish County Superior court judge, saying GMAC pursued a hidden agenda to close down the dealership.
The case is currently on appeal by GMAC, which says the trial judge erred in his ruling. Reggans says he is running out of money and time trying to keep the business going until that appeal can be heard.
As for General Motors, a spokesman says the dealership was offered a "wind down deal" to close the dealership with assistance from G.M. Reggans declined the offer, trying to keep what he calls a very successful dealership open and selling cars.
General Motors says it has a long track record of promoting minority ownership of its dealerships.
