AP Photo/Matt Rourke

Chrysler has entered bankruptcy and has begun closing dealerships. GM just filed for bankruptcy and is expected to do the same. Saturn may be close to finding a buyer. With so much going on in the auto industry, Boise is bound to see some changes.

So far Larry Miller Pontiac Buick GMC is the only closing that has been announced in the Treasure Valley. Three others have been announced in Idaho; dealerships in Sandpoint, Moscow, and Blackfoot.

The Saturn dealership near the mall on Franklin is not closing due to GM's restructuring. The location has become a Volkswagen Audi dealership, but the change has been in the works for some time. Owner Jim Chalfant will be moving the Saturn dealership to the Edmark Superstore in Nampa.

News broke today that GM is currently in negotiations with Penske Automotive Group, Inc. to sell its Saturn brand. It is too early to determine what plans a new owner may have for Saturn dealerships, but it is unlikely that Saturn suffers the same market saturation of other GM brands.

At least one local dealership chain is not waiting for bad news from Detroit to take precautions. Peterson's Stampede Dodge Chrysler Jeep and Peterson GM Super Center are liquidating their inventory at between 20-50% price reductions. It is unknown whether Petersons is anticipating closure or simply deciding on its own that their GM and Chrysler lines carry too much risk. If the latter, this exposes a concern for both manufacturers. Cutting underperforming dealerships is one thing. If profitable dealerships abandon the companies they may not be able to realize the sales volumes they need to stay afloat.

The move to close dealerships by both companies remains controversial. Idaho congressman Mike Simpson wrote to President Barak Obama and Treasury Secretary Timothy Geithner last month asking them to stop the closings:

“I am deeply troubled by talk of dealer network restructuring,” Simpson wrote. “Automobile dealers in my home state of Idaho, and across the country, operate at NO COST to the automobile manufacturers. Rather, the vast dealer networks that are set up across America, in communities both large and small, are integral to any attempt to return manufacturers to profitability in the future.”

For their part, the Obama administration has denied having had any part in determining the number of closures or which dealerships to close. They do, however, intend to take steps to encourage Americans to purchase new cars and help the two embattled automakers out. The question is whether they might inadvertantly hurt another sector of the auto-centric economy--the used car dealers. In a recent speech, the President made the following statement:

"And that's why I'm calling on Congress to pass fleet modernization legislation that can provide a credit to consumers who turn in old cars and purchase cleaner, more fuel-efficient cars."

The details are as yet unknown, but on the tail of new fuel efficiency standards, the program may put pressure on an already troubled sector. As it is, it may be years before the fall-out from the restructuring of the auto industry completely settles. Boise is not immune. There may be more changes ahead.