Chevron to cut ties in several states
Plan surprises W.Va. association presidentBy BRETT DUNLAP bdunlap@newsandsentinel.com
Article Photos
PARKERSBURG - Area Chevron stations will have until July to find a new brand to sell gasoline under as the company announced it will be cutting ties with many sellers in the eastern United States.
Officials with Chevron announced last Friday the withdrawal of the motor fuels operations for all Texaco or Chevron stations in Delaware, Indiana, Kentucky, North Carolina, New Jersey, Maryland, Ohio, Pennsylvania, South Carolina, Virginia, West Virginia, Washington, D.C., and parts of Tennessee, said Gus Santoyo, a spokesman for Chevron's corporate offices in San Ramon, Calif.
''This was a tough decision for us as we have been part of many of these markets and communities for a long time,'' he said. ''However, after careful study of the markets, it is apparent these markets don't fit well into our current manufacturing infrastructure.''
About 1,100 independently owned and operated retail stations will be debranded with the process expected to be completed by July 2010.
''The stations account for about eight percent of our total U.S. sales volumes,'' Santoyo said. ''The fuel markets in these states are well served and should not be affected by our withdrawal.
''We are working with marketers to assist them with costs associated in removing branding elements. We expect all of the stations to continue operating under other brands.''
For many, Chevron's announcement was a complete surprise, said Jan Vineyard, president of the West Virginia Oil Marketers & Grocers Association.
''Many were shocked by Chevron's decision to withdraw from retail fuel marketing in West Virginia,'' she said. ''Several of our members have been long-term Chevron dealers.''
Many distributors are looking at other companies to secure deals to supply gasoline for their stations.
''We believe the distributors will work hard to find the best option for going forward to meet the needs of their customers,'' Vineyard said. ''Many have been making calls all week to come up with a course of action.
''They will focus on finding an alternative supplier to meet demand.''
With a number of oil company consolidations, some brands of gasoline may not be readily available to West Virginia.
''Product might have to be brought in from farther away by truck,'' Vineyard said. ''However, many are working hard to make sure they will have product and it will be available to their customers.''
Randy Rapp, owner of the Chevron station in Mineral Wells, said he was not worried about the changeover as he has been through this before when Chevron took over Gulf when he had a Gulf station.
''It was a bottomline decision,'' Rapp said of the company's choices in doing business.
As for the stations affected by the decision, including his, they have until July to find another company to get their gasoline from.
''We will all be rebranded as something else,'' Rapp said. ''It is sad, because I think Chevron had the finest gasoline on the market.''
Customers with Chevron gasoline credit cards will have to get a new card under whatever company their stations end up going with.
''It is just change,'' Rapp said. ''Some people don't like it, but it happens.''
Officials with area Par-Mar stores, which also will be affected by Chevron's decision, did not return a phone message left at their Marietta office Tuesday.
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weefooze
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12-09-09 9:33 PM
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Are they cutting ties or simply cutting throats? I think more of the latter than of the former.Just another example of big oil putting profits before people.
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gooddawg
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12-09-09 1:17 PM
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Good Riddance!!
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