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Automotive News & Views Dude, where did all the dealerships go?
654 messages, Last post on Nov 23, 2009 at 7:56 PM
You are in the Automotive News & Views Forum. Your Hosts are steve_ & claires
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Looks like another one bites the dust. I received an email today, from the dealership group where I bought my Intrepid, Dad bought his used '03 Regal, and my uncle bought his '97 Silverado. And one of my friends bought his Xterra from Sheehy Nissan. Now that I think about it, my Mom bought her '86 Monte Carlo from this dealer too, although it was called something else back then. We Appreciated Your Business Over the Many Years Dear Valued Client, This email is to inform you that due to current business conditions, Sheehy Chevrolet will be closing it's doors February 2nd. In the meantime, Sheehy must clear it's lot of all remaining Chevrolets and have priced new vehicles up to 50% off the original MSRP! Sheehy will still provide you with the same quality of financing you've come to know over the years. All factory warranties will be honored at any other Chevrolet dealership. Please contact me if you have questions regarding warranties, financing, units for sale, or anything else regarding the store closing. Please contact me as soon as possible. Respectfully, Mike Nikolich General Manager This particular dealership sold Dodges, Chevies, and Isuzus back when I bought my Intrepid. Isuzu went away soon after. For some reason, it seemed like the Dodge side of the business kept expanding, while Chevy was shrinking. I wonder how much longer the Dodge showroom will be open?
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Replying to: andre1969 (Jan 28, 2009 8:06 am) Now, will there still BE a Dodge brand for them to sell in two years? If so, which I think is legitimately in doubt, it will probably be a VERY different lineup of vehicles (sourced from VERY different places!) than it is today. In my extremely informal straw poll, it seems to me that Chevy dealers are suffering the most, although Buick-Pontiac-GMC dealers are not far behind. I think that's because of the squeeze GMAC has been putting on them for a few months now.
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Replying to: nippononly (Jan 28, 2009 9:52 am)
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Replying to: andre1969 (Jan 28, 2009 10:02 am) |
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the head of NADA said yesterday that just under 1000 dealerships went out of business in the U.S. in 2008, costing around 50,000 people their jobs, and they expect close to 1200 dealerships to close in 2009. 
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Replying to: nippononly (Jan 28, 2009 9:21 pm) |
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the final number is 936 dealers out of business in 2008. It's a hard business to be in these days: Hard times have dealers crying: Cut! As vehicle sales and dealership profitability remain depressed, dealers say they are trimming every expense that doesn't directly generate income. From employee health insurance to showroom thermostat settings to season tickets to the local NFL team's games, they insist, nothing is off limits. I am of two minds here - some of the things mentioned being cut (like season sports tickets and company boxes) are pure luxuries, others like employee health insurance are not: Belt-tightening 101 These are some of the ways dealers say they are cutting costs. • Reducing or eliminating their own salaries and those of other top managers • Deferring maintenance and capital improvements • Shortening operating hours • Requiring employees to pay a larger share of health insurance costs • Eliminating the company match for employee 401(k) retirement plans • Reducing spending on employee training, uniforms, company cars and travel • Assigning employees to do work formerly done by outside contractors, such as janitorial and lawn care services • Suspending charitable contributions • Combining central office functions of several dealerships http://www.autonews.com/article/20090126/ANA06/901260373/1114 (registration link) It also mentions some dealers buying only quick-turning new models for their lots, rather than ones that might take longer. Of course, the manufacturers are taking widely varying stances with response to that type of system right now. While Ford and Chrysler are taking the attitude that they can be patient until things turn around, GM is pushing dealers out of business at an increased rate. It will now begin penalizing them more (via GMAC) for older new cars that have been on their lot for a long period of time. If I were thinking of opening a business today, this wouldn't be the type.
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Replying to: nippononly (Jan 30, 2009 8:03 am) |
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Another dealer group went "boom" today, and it appears to be one of the largest dealers in rural Maryland: Bob Smith Chevrolet-Cadillac-Pontiac-GMC-Buick, a.k.a. "GM Giant." Wow. Apparently NONE of the marques could save the dealer. Local news reports says that the dealer owed $12 million in loans to GMAC. 200 jobs were lost. At least the GMC service department in Federalsburg will operate, for now. Ref: "http://www.baltimoresun.com/news/local/easternshore/bal-dealerships0213,0,56043- 16.story". 330 vehicles were confiscated. Who's going to buy them?
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Replying to: carthell (Feb 16, 2009 7:52 pm) They will become part of the liquidation when GM finally files for bankruptcy. Buying a GM car now is sooooo risky. Unless you pay next to nothing and hope to be able to find parts in 5 years. If GM folds the only parts will be aftermarket. And they will be scarce. We have lost many jobs here at local dealerships. Most are like ghost towns when you go in. |
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