Sanborn Chevrolet will remain in business and the 40-plus employees who work there will retain their jobs.
The dealership received a "wind-down" letter from General Motors last year as part of the company's bankruptcy and reorganization.
But it was granted a reprieve last week, a dealership official said Monday.
"Apparently GM looked at the ones they could reinstate without having to go through arbitration," said Dennis Calton, vice president and general manager of the dealership.
Last year, the Detroit automaker informed roughly 2,000 dealerships to prepare to close as a way to pare down its massive dealership network. Many dealerships appealed, and last week GM announced more than 600 would be able to remain open.
Sanborn Chevrolet is one of them. In November, the dealership will sign a five-year deal with GM. All dealerships renew their deals then, Calton said.
General Motors re-evaluated the dealerships it wanted to close and looked at their location, floor plan and what additional services it offers, Calton said. Sanborn Chevrolet has a full-service repair center and auto body workshop. Those assets helped Sanborn's case, Calton said.
The dealership should receive an official letter by the end of the week, and will be able to order cars to sell on the lot shortly after it completes the necessary paperwork, Calton said. Furthermore, the dealership is again able to conduct warranty work on GM vehicles.
A GM official didn't confirm or deny Sanborn's situation.
"We aren't planning on making who we send a letter to public," said Ryndee Carney, manager of GM's dealership communications.
GM won't make a public notice of the 600-plus dealerships that will remain open because they didn't publicly list the more than 2,000 dealerships they sent "wind-down" letters to, she said.
"It's very good news; not only for Sanborn and Chevy, but for GM owners around town," said Pat Patrick, president and CEO of the Lodi Chamber of Commerce.
Patrick said he always liked Sanborn's chances of fighting the closure but was aware of the complications the dealership faced with the company being owned by the taxpayers and the harsh economic climate.
A city council member who lobbied on Sanborn's behalf was breathing easier Monday as well.
"That's outstanding," said Larry Hansen, council member and former mayor, when he learned of the news. "We thought they had a pretty good shot. We are relieved but not shocked they are allowed to stay."
State and federal lawmakers fought for Sanborn as well.
"This is a bright spot in tough times for the local economy and for the local community that rallied together to keep jobs in Lodi," wrote Assemblywoman Alyson Huber in an e-mail.
Rep. Jerry McNerney, D-Pleasanton, also fought for the dealership and wrote a letter to the Department of the Treasury on its behalf. He argued Sanborn should remain operational because nearly 22,000 of Lodi's more than 60,000 residents have GM vehicles.
Calton said he wouldn't be surprised if that statistic played a role in Sanborn getting its dealership designation renewed.
"Keeping Sanborn buying, selling, and maintaining cars is good for Lodi and San Joaquin County. I was glad to work with the owner of Sanborn and Lodi's elected officials and community leaders to help save the dealership," McNerney said in an e-mail.
Calton was gracious and humbled by the outpouring of support from those in the community who fought for the dealership.
"I want to thank everyone for their support," he said. "There is a huge sense of relief."
One business next door to the dealership is particularly pleased it will remain open.
"A lot of the employees come in and dine or get to-go orders," said Deedee Carpenter, owner of DeeDee's Family Dining in a telephone interview. "We've been neighbors for a long time."
She roots for all local businesses and empty retail spots break her heart, "especially one right next door," she said.
The owner of the dealership said they are in the process of writing a brief letter thanking the community, and it will appear in an upcoming edition of the Lodi News-Sentinel. "Today is a nice day," said a smiling Richard Sanborn, president and owner of Sanborn Chevrolet.