Former dealership owner now looking at other options

By Dionna Harris - dharris@dailypress.net
ESCANABA — Having taken over the helm of Northern Motors 23 years ago from his grandfather, Steve Rosemurgy is moving on to pursue other interests.

Rosemurgy discussed the sale of the business Thursday and his take on the future of the auto industry.

Rosemurgy’s grandfather, the late Percy Rosemurgy, purchased Escanaba’s Northern Motor Co. from its founder, H.R. Norton in 1947, passing the torch to his grandson in 1985.

Northern Motor Co., in its 85-year history, has always been located at at 1419 Ludington St.

Now the torch of ownership has once again changed hands, after Dagenais Enterprises purchased the business lock, stock and barrel, effective today, according to Rosemurgy.

“The name will remain the same, the employees will still be here, it will be a seamless transition in ownership,” said Rosemurgy.

The deal, negotiated between Rosemurgy and Dagenais Enterprises, includes current inventory, the building and all associated real estate.

“The public will see no changes, and I will be staying on for a while to make the transition easier,” said Rosemurgy.

The offer made by Dagenais Enterprises, said Rosemurgy, was reasonable. After contemplating changes in the American automobile industry, which is currently in a recession, the sale of the business fell into step with his future plans.

“I have worked at Northern Motors my entire life. Now I can take my time to evaluate a number of different projects; there is no rush,” said Rosemurgy.

Rosemurgy said Dagenais Enterprises approached him with an offer a few months ago. He felt it was fair and equitable, and accepted.

Public focus on trucks has changed toward purchase of smaller cars, and, according to Rosemurgy, the era of small, single-point dealerships is becoming an icon of the past.

“In order to survive, dealerships need to become large, multiple-point operations, with anywhere from eight to nine different areas. A large operation can spread its expenses across a wider net, where with a single-point dealership, the expense for advertising and overhead is on that particular dealership alone,” he said.

Also to blame for the slump in large vehicle sales, he said, was the record gasoline prices.

“Europe has a very extensive rail system, with most middle class families overseas owning small, fuel-efficient vehicles... Here in the U.S. most upper middle class families have maybe three to five vehicles. I see a shift coming in this country from the current over road trucking back to rail, in much the same manner that rail service transitioned into over the road trucking,” said Rosemurgy.

He believes there will be a massive change in the overall business climate within the next decade. He said sales of large vehicles may cease as oil and gas prices continue to climb and the public looks to more fuel-efficient vehicles.

“The big three automakers don’t have the product mix to handle the shift. It’s going to be tough going, however, the industry will evolve to meet the demand,” said Rosemurgy. “Pretty soon the only people operating trucks will be those who need to for their business.”