Big Island auto dealer to change management

By Hugh Clark
Advertiser Big Island Bureau

HILO, Hawai'i — Hawai'i Motors, the Big Island's oldest automobile dealer, is being sold to a group connected with management.

The buyout group is led by Alan Clark of Kona, general manager of the company, which sells General Motors vehicles; Richard Henderson, son of chief executive officer Richard Henderson; and company financial official Michael Chagami.

GM's Motors Holding is providing financial backing for the deal, Clark said.

As required by state law, Hawai'i Motors filed a 60-day notice advising its 42 employees in Hilo and 27 in Kailua, Kona, they might not have jobs after Oct. 8. The buyers did not say how many workers will be retained.

Nearly 30 of the employees, mostly mechanics and warehouse workers, are represented by the International Longshore and Warehouse Union. Isaac Fiesta, ILWU business agent for the Big Island, said he sent a letter requesting talks with the company in light of the sale.

The GM dealership has been locally owned since 1926, when Ben Stoddard took over the operations from Von Hamm Young. Stoddard gave way to legendary businessman and politician W.H. "Doc" Hill, who acquired the business in 1932. Hill died in 1970, and eventually Richard Henderson took over.

Although once dominant, Hawai'i Motors is considered the third-largest dealership on the Big Island, behind the Ford and Toyota operations.

Clark said the company sold 575 new and 600 used cars in 2000. According to Chagami, the company produced $26.8 million in revenue that year.

The sale does not include the property under the dealerships in Hilo and Kona. The elder Henderson will continue leasing the property to the new owners.

Clark said the employees will be asked to help rename the company.