A long-standing fixture in the Chesterton business community, the Jack Connors Buick dealership is losing its franchise next year, the apparent result of a management decision stemming from the General Motors bankruptcy.

Dealer Kathy Connors Benke said the dealership will be able to order GM parts, sell new Buicks and otherwise conduct business as normal through Oct. 31, 2010. After that, the Buick franchise will be eliminated.

“In our opinion, it is GM’s decision. We feel it’s an unfair decision,” she said, noting the dealership’s deep roots in the community and its status as the only new car dealership in Chesterton.

Benke said the business is actively seeking another franchise and that it has “no intention” of shutting down.

“We may be losing Buick, but we’re committed to continuing to operate in Chesterton,” she said. “We’re still positive.”

The history of the business dates back to 1898, when Tom Smith’s grandfather opened a general store known as M. Smith & Son. Tom said the story that he’s been told is that his grandfather heard a commotion one day when, out in the local rural area, a horseless carriage appeared. The story goes that the new automobile peaked Harry Smith’s interest in getting into that line of business.

By 1911, Smith’s general store was indeed selling Buicks. The store was located at 101 Broadway in downtown Chesterton and sold just about everything, from groceries to pianos to women’s clothing. “He was like a Meier or Wal-Mart in his day,” Tom Smith said.

Eventually, Harry’s son, Richard M. Smith, took over as president of Smith Motors, Inc. and opened a Pontiac-Buick dealership in 1953 at South Calumet and Porter Avenue. In 1975, Smith sold the dealership to lifelong area resident Jack Connors. Tom Smith worked at his family business and continued working at the Connors dealership (as he continues to this day). In 1989, the dealership built a new facility at Ind. 49 and Porter Avenue for used car sales and repair, and within a few years, moved the rest of the business to the new site when the new-car showroom was completed. In 2001, Jack Connors died, and his wife, Phyllis, and children continued the business, with Kathy taking over as dealer and sons Mike and Jack in sales and service.

After receiving word that GM was pulling the local franchise, the Connors dealership began sending out letters to its customers announcing the change.

“We felt they deserved that respect. We respect the customer,” Benke said, noting that many of the business’ customers are people the family has known for years.

Benke said what’s really disheartening about GM’s decision is that Connors dealership has maintained itself as a strong local business and didn’t make any bad decisions that caused the GM bankruptcy. She said another area Buick dealer -- incidentally, another one headed by a woman -- is also closing.

The business remains hopeful that the decision is not final. Legislation is pending in the U.S. Senate -- SB 1304 -- that could reinstate the franchise. Known as a “dealer’s rights” bill, the companion legislation has already passed the House.

Benke said GM appears to have ignored the Connors dealership’s long-time standing as a successful business and its ability to continue to sell Buick line. “I think it’s unfair that GM has eliminated that representation in Chesterton,” she said.

Tom Smith said he also finds the situation a sad commentary about a nationwide problem of long-time locally owned businesses folding. “This is going on all over the country,” he said. “Our country was built on small business. It’s just not a healthy situation.”