New Milford Volkswagen to close after 65 years One of the oldest VW dealerships in the country

Ted Orr, the owner of New Milford Volkswagen, has confirmed that they are going out of business. He is photographed in front of vintage cars at the dealership on 469 Litchfield Rd. in New Milford, Conn., Tuesday, March 3, 2015. less Ted Orr, the owner of New Milford Volkswagen, has confirmed that they are going out of business. He is photographed in front of vintage cars at the dealership on 469 Litchfield Rd. in New Milford, Conn., ... more Photo: Carol Kaliff Buy photo Photo: Carol Kaliff Image 1 of / 8 Caption Close New Milford Volkswagen to close after 65 years 1 / 8 Back to Gallery

NEW MILFORD -- After serving their customers for more than six decades, the owners of New Milford Volkswagen, one of the oldest Volkswagen dealerships in the U.S., will close at the end of the month.

Ted Orr, the dealership's owner, said customers have been coming into the shop and calling all week after rumors of the closure began circulating through town.

"A lot of our customers, many of whom have bought cars from us for generations, have been very saddened by the news," Orr said.

He explained that while the dealership is still healthy financially with less than $20,000 in debt on its books, Volkswagen revoked Orr's line of credit on concerns the dealership could default on its payments after three years of failing to turn a profit.

"Because they've revoked our credit, we can't buy cars," he said. "If we can't buy cars, then we can't sell them."

Orr said Volkswagen sales have been suffering in recent years because its product mix and marketing haven't kept up with competing brands. He noted that sales in New England dropped nearly 30 percent last year, in part because of weak sales of the brand's all-wheel drive offerings including the Touareg and the Tiguan -- an important option in snowy climates.

Volkswagen's U.S. sales fell 5.2 in February, the company reported Tuesday, as gains for the redesigned Golf failed to offset declines of all other VW models.

Erick Swindell, a New Milford resident, said Tuesday that he was "devastated" by the news. He and his wife have purchased 10 vehicles at the dealership since 1997.

"New Milford Volkswagen has the best people and service that I've ever encountered," Swindell said. "They've always treated us like friends of the family. I can't believe that Volkswagen is allowing a dealership that does right by its customers to go away. Frankly, I am mad at Volkswagen."

The New Milford location first opened its doors in 1950, less than a year after Volkswagen started selling cars in the U.S. While Gensinger Volkswagen in New Jersey also opened in 1950 and claims to be the oldest dealership in the country, Orr notes that New Milford Volkswagen is still operating out of the original building that's been used for 65 years to sell the nameplate.

Of course, that didn't happen without a few arguments with Volkswagen about the design of the dealership, Orr noted.

On several occasions, he said, Volkswagen representatives wanted him to update the building to current brand standards. Representatives from the brand, he said, had also asked him to remove several historic vehicles in their showroom including a 1955 Volkswagen Beetle.

"He told me that's not what the company is anymore," Orr said. "I told him, `maybe that's the problem.' "

Orr said they will likely put the property on the market rather than explore their options as a used-car operation.

"A lot of people have tried to go that way in the past, but it never seems to work out," said Orr, who started working with the dealership in 1974 as a detailer. "I guess I'll have to figure out now what I'm going to do when I grow up. I've really enjoyed the past 40 years here."

The dealership is one of the last in New Milford to survive the Great Recession. More than six new dealerships have closed in town since 2008. Only Wetmore's Chrysler, Jeep, Dodge remains.

"It's unfortunate that New Milford's been negatively impacted in the past few years by the changes we've all seen in the auto industry," said Luigi Fulinello, New Milford's economic development director. "Dealerships offer a number of jobs with different skill levels and are very important to the community."

Officials with Volkswagen of America did not respond to requests for comments for this story.

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