Chris Hurd, of the Hurd Auto Mall in Johnston, where six GM franchises are housed.

The Providence Journal / Steve Szydlowski

JOHNSTON Chris Hurd, owner and president of the Hurd Auto Mall, is confident his dealership will prosper despite the current downturn in auto sales.

That’s because he has six General Motors franchises under his roof, which he said gives him a wide range of new vehicles to sell. Plus he has a big inventory of pre-owned vehicles for sale.

“If the new cars aren’t selling, the used ones are,” he said in a recent interview at the dealership on Hartford Avenue. “We have six franchises here. We’re pretty well insulated.”

In addition, the dealership has a large service and parts department, including an extensive and comfortable waiting area for customers (“the bathrooms are like those at the Westin!”), that he said brings in a large part of its revenue.

“We had a busy service month as people put off purchases,” he said of October. “Used vehicles and service and parts are up.”

Finally, he cited customer loyalty, which he said accounted for well over 50 percent of his business.

“We’re very fortunate,” he said. “We have an extremely large, loyal customer base. There’s no need to advertise.”

At the same time, he said he is concerned about the domestic auto industry. The Detroit Three — General Motors, Ford and Chrysler — are currently seeking $25 billion in federal loans to see them through the worst sales slump in decades.

Yesterday, GM reported its sales in November were down 41 percent compared with November last year. The drop was not as severe as the 45 percent drop in October.Hurd said sales had been expected to be marginally better, but added that his sales had been “significantly better.”

“It’s not a bailout,” Hurd said, referring to the term commonly used to describe the federal aid the Detroit Three are seeking. “It’s a bridge loan that’s vital to the American economy, to the American way of life, symbolically and in many, many ways.”

The chairmen of the Detroit Three go before Congress tomorrow for the second time to argue for the loan. The recession and credit crunch have combined to drive sales down to 25-year lows and Automotive News has argued that GM, which is spending some $2 billion in cash every month, may be forced to declare bankruptcy early next year if it does not get the financial aid.

GM’s restructuring plan includes canceling all 2009 bonuses for global management and North American workers, according to The Associated Press, although there has been speculation that it might also seek to sell some of his lines, such as the Hummer marque.

While Democrats have generally been supportive of helping the Detroit Three, Republicans have resisted the bailout, arguing that bankruptcy may be the only way the companies can restructure for the future.

“You know what, I don’t blame them for questioning the loans,” Hurd said of congressional Republicans, whose reluctance to sign off on the package forced the three companies to go back to Detroit and return with clear ideas on how they plan use the money. “I agree with Republicans to make (the companies) accountable.”

At the same time, he said he has confidence in GM’s current leadership, rejecting calls for chairman Rick Wagoner’s head. Votes on the $25-billion package are expected in the Senate and the House as early as next week.

Hurd said the Detroit Three have to renegotiate their contracts with the United Auto Workers, especially the health care and pension benefits. As The Wall Street Journal pointed out in its lead editorial on Monday, the average wage including benefits of an auto worker in Detroit is $73.21 an hour compared with $44.20 for a worker for the transplants, or foreign automakers with assembly plants in the U.S., including BMW, Honda, Hyundai, Kia, Nissan and Toyota.

“American cars can’t compete with these contracts in place,” Hurd said. He also said the so-called job banks — where workers who are temporarily laid off retain almost full pay and benefits — should be stopped.

The measure, which was established to retain workers so they could be called back into the workforce when needed, has been cut back to some 3,000 workers from 15,000 two years ago, according to the UAW.

Hurd also questions the full health-care benefits the Detroit Three currently pay to current and former employees.

“(The Detroit Three) were very, very generous to former employees,” he said of the contracts, adding that the resulting legacy costs give transplants an unfair advantage. “It’s not a level playing field.”

Indeed, most transplants had subsidies and tax breaks to help them establish modern plants in the U.S. and most are located in the South and not unionized. In addition, most foreign manufacturers receive some form of aid from their own governments to say nothing of the break they get on employee health costs due to universal health care that is available in most developed nations.

Hurd, 49, elegantly dressed with an outgoing and generous demeanor, is married to Nancy, and they have three daughters and a son. The walls of his office are festooned with photographs of his family and colleagues over the years and mementos, particularly of his beloved Boston Red Sox.

Indeed, the service area is painted like a baseball field with a duplicate of the scoreboard at Fenway (the Sox are beating the Yanks) painted in the same shade of green as the Green Monster.

“It’s fun, but it’s a big responsibility,” he said of his job, noting that he has 111 employees.

“That’s 111 families I’m responsible for,” he said.

He said he had no plans to lay any of his employees off, but added, “There’s going to be less dealers out there. It’s a natural market evolution.”

“My driving ambition is not to drop the ball that my grandfather and father built and gave to me,” Hurd said. His grandfather Frank established the dealership with Sam Goldberg in Cranston in 1935.

In 1990, Hurd and his father, the late Judd Hurd, moved the store to Johnston and it has since expanded to a total of six GM franchises — Buick, Chevrolet, GMC, Hummer, Pontiac and Saab.

“People thought we were nuts,” he said. “(Interstate) 295 was new and there was a tenth of the traffic there is now.”

But he said he has no doubts about the move. “Everything is centralized,” he said. “One service department, one parts department, one administrative center. And we’re 15 minutes from downtown Providence, 15 minutes from Massachusetts and 10 minutes from Warwick Mall.”

Hurd is extremely loyal to GM despite its travails. He said the company is currently producing vehicles that easily rank with imports in terms of quality and fuel efficiency.

“GM is making good products now,” he said. “The (Chevrolet) Malibu is the best midsized car in the world, but who knows it?” He said getting the word out was a major challenge.

“American companies cannot afford to make mistakes and GM’s done a great job the last five years,” he said, citing the new Chevrolet Traverse crossover and Silverado pickup as well as the Malibu.”

“I’m comfortable,” he said. “I’ve got a great organization. All my eggs are in the Rhode Island basket. I believe in the state. Things will work out, they always have.”

For more information, go to:

www.hurdautomall.com/

pelsworth@projo.com