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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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my car was run into by someone from behind. i went to the dealer at which i have bought many cars to get an estimate from their body shop, which i have also used several times. it was shut down. 
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Replying to: explorerx4 (Mar 17, 2009 2:03 pm) |
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Replying to: explorerx4 (Mar 17, 2009 2:03 pm)
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The biggest of which is Asbury: Asbury Automotive reports 1st annual loss since going public Dealership group receives 'going concern' warning March 16, 2009 - 9:52 am ET UPDATED: 03/16/09 5:09 p.m. ET Asbury Automotive Group posted a loss in 2008 -- its first red ink for a full year since it became publicly traded -- and received a warning from auditors that it may not remain current in its debt covenants. The company said auditors from Deloitte & Touche LLP think the uncertainty over the debt covenents "raises substantial doubt about the company's ability to continue as a going concern." Auditors' "going concern" warnings typically occur for companies at risk of filing for bankruptcy protection. Asbury reported a $365.4 million net loss in the fourth quarter, down from $11 million in net income in the same period in 2007. That quarter dragged the dealership group to an annual net loss of $338 million, compared with a $51 million net gain in 2007. Rare losses The annual loss was Asbury's first since going public in 2002, and the quarterly loss was the second in that period, according to Bloomberg data. The dealership group's other fourth-quarter loss came in 2003. And they weren't the only ones: Two other auto companies said today that would get the warning: Supplier Visteon Corp. and dealer group Sonic Automotive Inc. General Motors and supplier American Axle & Manufacturing Holdings Inc. also have received such warnings this month. More suppliers are expected to join that group. http://www.autonews.com/apps/pbcs.dll/article?AID=/20090316/ANA05/903160282/1078- - /FRONTPAGE (registration link) And one that for me is much closer to home, as it is the owner of several dealerships in my area, Lithia. Didn't know that it has been ailing for some time though: Also today, publicly held Lithia Motors Inc. reported a $4.3 million net loss in the fourth quarter. That was an improvement from a $4.78 million net loss in the same period the previous year. The loss contributed to a $252.6 million net loss for 2008, down from a $21.5 million net gain in 2007. The Medford, Ore., dealership group saw revenue from same-store sales of new vehicles during the quarter fall 39.2 percent, while revenue from used-vehicle retail sales at its 93 stores fell 17.4 percent. Didn't know they were based in the Medford area. Seems like dealership groups reporting large losses are being hit harder in new car sales than they are in used. When these large groups fail, the fallout is fairly spectacular, with often a dozen or more dealerships all closing at once. To me it's pretty amazing that they can sustain an annual loss of $200 million or $300 million and continue to operate. I mean, these aren't gigantic corporations like the automakers or tier 1 suppliers. It seems like at some point we MUST reach an equilibrium of sorts, where this trend of dealership failures begins to weaken....
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Replying to: nippononly (Mar 17, 2009 7:38 pm) I wonder how Cal Worthington is doing. Spot may be going hungry if they are having to cut back on the dog food.
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Replying to: steve_ (Mar 17, 2009 7:48 pm) When I took my test drive in the BMW X5 diesel I mentioned that I was also going to test the ML320 CDI at the dealer down the street. His comment, Makes no difference they are all owned by Penske. So all the high end auto dealers on that one row of dealerships was under the Penske banner. Yet you do not see his name on any of them. I think there are about a dozen dealers on that street. Not sure how they are doing. I know it was not a busy day when I was in there. |
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In February, I had a momentary interest in testing a Volvo V50 T5R, so I trotted on down to Pleasanton Volvo. Surprise! They ain't no stinkin' Pleasanton Volvo no more! Actually, there hadn't been since September, but who notices a missing Volvo stand unless you own one. Wouldn't have mattered. A quick search of inventory turned up one in Orange County... The Pleasanton Auto Mall folks are using the space for something much hotter than any brick: used cars. |
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was barely a blip on the screen, apparently, I couldn't find any news article related to its demise. I did note, however, that it was a large multi-brand dealership where only Volvo was cut - Acura, Lexus, and Infiniti apparently continue on as strong as ever. But this one was kind of interesting from a Bay Area perspective: http://www.insidebayarea.com/crime/ci_11595167?source=rss In 2008, 128 new-car dealerships closed in California, compared with only 20 closures in 2007, according to the California New Car Dealers Association. Just this week, the association found that registrations of new cars and light trucks statewide declined 23 percent in 2008, compared with 2007. In Contra Costa County, new car vehicle registrations are down 25 percent from last year. Some of the hardest hit areas include East County, where registrations are down nearly 31 percent, and West County, down 27 percent. Alameda County registrations were down 24 percent in 2008 from the previous year. In dealer-heavy cities such as Concord, auto sales reports show sales are down nearly 25 percent from mid-2007 to mid-2008. In fiscal year 2006-07, Concord's auto and transportation sales tax revenue was $7.1 million; in 2007-08 that number dropped to $6.2 million. Already this year, all sales tax revenue is 16 percent lower than what city leaders predicted last summer. About 30 percent of Walnut Creek's $20 million total sales tax revenue comes from auto sales. So far, aside from a Pontiac dealership that went out of business — since replaced by a Smart Car dealer — Walnut Creek has not seen any of its 13 dealerships close, Pokorny said. He credits the city's location. So cities are being hit hard too. What's kind of interesting to me is that some places have chosen to give their dealerships bailouts: few cities in California, such as Victorville northeast of Los Angeles, have recently bailed out dealerships, loaning them money to get them through the tough times. Both Walnut Creek and Concord city managers said that isn't something either city is considering. It's too late for some dealers, like Peninsula Dodge Hyundai in Redwood City, which shut down abruptly before Thanksgiving. Likewise, Good Chevrolet in Alameda, Ford dealerships in Dublin and Oakland, a Volvo dealership in Pleasanton and a Dodge dealership in Brentwood also have closed. That also details a few more I wasn't aware had closed. Geez, the count is up to FIVE Ford dealers that have gone out of business in the last 6-8 months within 30 miles of my house. However, that still leaves what I would estimate to be a half dozen. Maybe the lesson from all of this is that there were just WAY too many domestic dealerships. |
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what Auto Nation is doing to try and spur sales and stay in business? AutoNation Layoff Guarantee AutoNation Inc., the largest U.S. vehicle dealership chain, plans to cover six months of car payments for buyers who become unemployed. Starting at 33 dealerships in Florida, AutoNation plans to roll out the policy to its 232 stores nationwide. The coverage will be free with any vehicle -- new or used, leased or financed. http://online.wsj.com/article/SB123741176818476591.html Looks like they are taking a page from the Hyundai playbook. The Assurance program has arguably helped Hyundai very little, depending on which source you read. Still , it looks like Auto Nation will not be going down without a fight... |
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Replying to: nippononly (Mar 17, 2009 2:54 pm) i threw out the paperwork after one my kids damaged the new front bumper. 
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Automotive News & Views Dude, where did all the dealerships go?
