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Tag: testing ground

Stejskal: An Intriguing Tale of a GM Worker Who Got Busted Selling Test Cars from Proving Grounds

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Greg Stejskal served as an FBI agent for 31 years and retired as resident agent in charge of the Ann Arbor office.

By Greg Stejskal
ticklethewire.com

Jack Clingingsmith had what any car guy would consider a dream job. He was the executive in charge of testing for Buick at the General Motors proving grounds.

GM’s Milford, Michigan proving ground, when it opened in 1924, was the auto industry’s first dedicated testing facility. Today the sprawling 400 acre complex has over 100 buildings and about 132 miles (212 km) of roads. Those roads replicate all types of conditions found on streets and highways throughout North America – from dirt tracks to four lane interstate highways. There are also specialty surfaces to test traction, anti-skid and brake technology.

In 1984 despite Clingingsmith’s dream job, he had serious personal financial problems.

Part of Clingingsmith’s duties was to dispose of test cars after they were no longer of use. Some of these cars were one-of-a-kind prototypes and some had experimental parts using developing technology. For obvious reasons, these cars were not to be sold or driven by unauthorized people. Consequently, the cars were to be destroyed by having them crushed when they were no longer needed for testing.

A crushed car at that time was worth about $90 as scrap metal. However, if the cars were sold for parts, they could bring $1-2,000 each. Clingingsmith had an idea as to how to alleviate his financial problems. He would sell the cars for parts rather than having them crushed. GM wouldn’t know, and he would keep the difference.

In order to do this, he would need to obtain phony documentation to show the cars had been crushed. Part of the disposal process involved having the cars vehicle identification number (VIN) plates removed. Clingingsmith would turn in the VIN plates and advise GM and the Michigan Secretary of State that the cars were destroyed.

Greg Stejskal

Greg Stejskal

So that Clingingsmith didn’t have to deal with the scrap/auto parts dealer directly, he recruited an associate, Ingo Nicolay, to act as a middleman. Nicolay was the general manager of Johnson Motors, a Pontiac dealership in Holly, Michigan. Clingingsmith knew Nicolay because Johnson Motors had for years done body work on cars GM maintained for their executives.

Nicolay agreed to participate in the scam and in turn recruited Donald Holloway, the owner of Holloway Auto Parts in Flint, a city just north of Holly and once the home of Buick. Holloway was more than willing to buy low mileage, well maintained used cars to be used for auto parts. He was also willing to provide fake bills of sale showing the cars had been crushed.

Between November, 1984 and December, 1985, 14 test cars (13 Buicks and one Oldsmobile) were reported by Clingingsmith to have been destroyed. Actually they had been sold to Holloway for parts.

The conspiracy seemed to be going well, and all the conspirators were happy, but one of them was especially happy.

Even A Better Idea

Holloway upon taking delivery of these pristine used cars had an epiphany – why disassemble these cars to sell for parts when they could be sold whole. These cars hadn’t been reported stolen; in fact, there was no record they even existed. But it probably wouldn’t be wise to sell them locally.

Holloway had done business with a dealership, Fann’s Auto Sales, in Manchester, Tennessee. Holloway told the people at Fann’s that he had a source for “assembled” GM cars. Assembled cars were cars that were built from parts of two or more cars. (This was usually as a result of the cars having been extensively damaged in an accident.) For that reason the VIN plates had been removed. There was a provision under Tennessee law that allowed for assembled cars to be registered and assigned a new VIN.

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