Hummer dealer Jim Lynch thought he had prepared for the worst.
With Hummer sales last summer down about 60 percent from 2008 levels, the stand-alone Hummer dealer opened a gun shop in his Chesterfield, Mo., store.
He was trying to make ends meet until General Motors Co. sold Hummer to China’s Sichuan Tengzhong Heavy Machines Co. Ltd.
But that deal fell through today, after the Chinese government did not approve the purchase. And now that GM says it will wind down Hummer’s operations, Lynch says his plans are up in the air.
“The guns were what I came up with to make the gap, and then Hummer took another dip,” he said today. “If Hummer was where it was in July of last year, we’d be making enough to pay the mortgage and have a small profit.”
The guns have brought between $140,000 and $180,000 a month in revenue, Lynch said. In contrast, he said, his operating costs are “astronomical.” The mortgage and property taxes alone come to more than $60,000 per month on the $7.5 million building he opened in 2005.
“I’m not sure it will pay for this huge building we have, but we’ll just go through the wind-down and see where we end up after that,” Lynch said.
Lynch’s best month of Hummer sales was in 2005, when he sold 70 new vehicles. Since then he has struggled to make ends meet. He said he will try to expand his gun and off-road accessories business.
“We’re going to keep fighting for as long as we can.”