One of Traverse City’s automotive institutions is changing hands. Otto Belovich -- who has been selling cars in Traverse City for fifty years as of this very week – has sold his dealerships to Serra Automotive.

The dealerships being sold include Traverse Motors (Toyota, NW, Nissan, Audi and Volvo) and Cherry Capital Cadillac/Subaru. Terms were not disclosed.

Of the sale, Belovich says simply, “You just get the feeling when it’s time to pass the baton.”

He says he has been approached by “seven or eight” prospective buyers in the last 30 months alone, but settled on Serra Automotive because “they’ll run it pretty much like I have, and it will be very good for my people here, too.”

With 46 automotive franchises and 31 dealership locations in seven states, Serra Automotive is headquartered in Grand Blanc. The company ranks among the ten largest privately-held auto groups in the nation.

Joe Serra, president of Serra Automotive and son of founder Al Serra, tells The Ticker he’s been having conversations with Belovich since 2008.

“The reputation Otto has…he’s done such a tremendous job,” he says. “He’s going to celebrate fifty years selling cars this month, and I told him my goal for his company — and it is his company that he’s giving me to sort of take care of -- for another fifty.”

Though acquisitions can often mean consolidation and job cuts, Serra says, “I told the employees that my mission is to retain each of them. Sadly I don’t have control over that; they can go where they want to. But we operate a very decentralized organization, and we don’t have a central office for all our stores like many dealer groups do,” he adds, noting that decision making is left to the local dealerships and staffs.

The one change to the team that will be made is the addition of Jerry Zezulka, who will relocate from a Serra dealership in Grandville to join the management team in Traverse City.

Because so many automotive manufacturer brands are involved in the sale, the transaction is not expected to be finalized for a few months. Shortly thereafter, Serra will incorporate his group’s brand name into the existing Traverse City dealership titles, signage, and advertising.

Serra adds that Traverse City was a market he has wanted to enter for some time.

“My father owned a home in the Traverse City area back when I was graduating from college. It’s a market I’ve watched grow. It’s very stable, and will continue to grow. And I know and have a good appreciation and respect for the other dealers in that market,” he says.

Belovich, meanwhile, has sold a lot of cars to northern Michigan families since his first day on the job August 16, 1965 at Waples auto dealership (where Nolan’s Tobacco Shop on Front Street sits now).

“Back then there were twice as many dealerships in town. Every brand had its own shingle,” Belovich reflects. “But [Bill] Marsh and I bought everything up!”

Eventually Belovich indeed became part owner of a Traverse Motors in 1974, and in 1994 would acquire what is now Cherry Capital from Chet Swanson.

What will Belovich do now?

“I have some other interests. And they’ll keep me around here for a while. I’m happy about this. They are a quality family, they’re community involved, and they keep local people on the ground. “