GM auto dealers in HILO >> Hawaii Motors Inc. plans to sell its General Motors franchises in Hilo and Kona to Alan Clark, the current general manager of the company, and to Motors Holding, an equity-financing arm of General Motors, the company announced yesterday.
Hilo, Kona to
change hands
Richard Henderson, a former
state senator, has been cutting
back on business activitiesBy Rod Thompson
rthompson@starbulletin.comRichard Henderson, president and chief executive officer of the company, noted that Hawaii Motors has had the GM franchise on the island for 70 years.
Company spokesman Michael Chagami noted that Henderson, a former state senator now in his early 70s, has in recent years sold Homelani Memorial Park and Realty Finance Inc., phasing out ownership of companies that require hands-on attention. "He wants to step back from day-to-day management," Chagami said
Clark has been vice president and general manager of the company since Jan. 1, 1998.
The purchase price will be determined in negotiations, and will take into account the value of new and used vehicles, parts and accessories, and equipment such as office machines, Chagami said.
The transaction is expected to close on or after Oct. 8 but is subject to negotiation of the purchase agreement and mutually acceptable leases for the Hilo and Kailua-Kona facilities.
The sale also requires the approval of several third parties, the company said.
A 60-day "plant closing notice" was given yesterday to 42 employees in Hilo and 27 in Kona.
"A number" of those employees are expected to be rehired, the company said. The exact number will up to Clark, Chagami said.
Hawaii Motors is a wholly-owned subsidiary of HSC Inc. Its revenues for fiscal year 2000 were $26.8 million, the company said.