and we're talking about eBay prices........

[Ridge K.]

Today's news:


The credit crisis and record high gas prices have teamed up to drive the world's largest Chevrolet dealer out of business. Bill Heard Enterprises is closing all 13 of its stores today, the company told its local managers on Wednesday.
Insiders said the company notified the stores' general managers of the closing at 2 p.m. Wednesday, Automotive News reported. It closed a store in Arizona earlier this month.
The Bill Heard dealerships relied heavily on the sale of pickups, which has slumped drastically since gas prices hit historic highs over the last several months. A pullback in dealer financing by GMAC also influenced the decision, reports said.
"The company had worked to develop and implement a strategy and a course of action that would enable it to operate successfully; however, the conditions necessary to sustain the business through the current challenges were not present," a statement released by Atlanta publicist Alan Ulman said. The company began in Columbus, Ga., in 1919, founded by W.T. Heard Sr. It developed into the country's biggest Chevrolet dealer and ran dealerships in Georgia, Alabama, Florida, Tennessee, Texas and Nevada. At its height, the company said it sold "around $2.5 billion" a year and employed more than 3,500 workers.

[Dick W.]

Re: and we're talking about eBay prices........

And the "rest of the story" about Bill Heard will come out in the coming weeks

[Joe L.]

Re: and we're talking about eBay prices........

Today's news:


The credit crisis and record high gas prices have teamed up to drive the world's largest Chevrolet dealer out of business. Bill Heard Enterprises is closing all 13 of its stores today, the company told its local managers on Wednesday.
Insiders said the company notified the stores' general managers of the closing at 2 p.m. Wednesday, Automotive News reported. It closed a store in Arizona earlier this month.
The Bill Heard dealerships relied heavily on the sale of pickups, which has slumped drastically since gas prices hit historic highs over the last several months. A pullback in dealer financing by GMAC also influenced the decision, reports said.
"The company had worked to develop and implement a strategy and a course of action that would enable it to operate successfully; however, the conditions necessary to sustain the business through the current challenges were not present," a statement released by Atlanta publicist Alan Ulman said. The company began in Columbus, Ga., in 1919, founded by W.T. Heard Sr. It developed into the country's biggest Chevrolet dealer and ran dealerships in Georgia, Alabama, Florida, Tennessee, Texas and Nevada. At its height, the company said it sold "around $2.5 billion" a year and employed more than 3,500 workers.

Ridge-----


If Bill Heard can fall, ANY can fall. I think you're going to see this as a "continuing trend" for dealerships of the "Big 3". I think some more iconic (and, not-so-iconic) dealerships are going to go.

For example, several months ago Hayward Ford in my area closed. Hayward Ford used to be one of the largest Ford dealerships in the San Francisco Bay Area. They had an impressive and large showroom and very large lot for new and used cars, as well as a massive service facility. I remember going into the showroom back in the 60's when it was "littered" with Shelby Cobras and GT 350 Mustangs---by far the largest selection of these cars around at the time. Hayward Ford was the most prominent of all the dealers along Hayward's "Mission Blvd Auto Mall". Now, it's gone. Guess what? Demolition of the entire facility will start very soon and a brand new, state-of-the-art facility will replace it----Hayward Toyota.

[Bob J.]

Re: and we're talking about eBay prices........

I've done business with Heard and its my understanding that their problems were numerous.
In Fla, and Seminole Co. in particular, the better business bureau has a VERY LONG list of complaints , they were fined for their business practices by the state of Florida recently and the final coffin nail was GMAC ended the financing of their floorplan.
I think many of these problems were in all states that Heard did business.Bob

[John H.]

Re: and we're talking about eBay prices........

The entire Heard empire filed bankruptcy yesterday afternoon; on top of their "questionable" business practices which have attracted the attention of the Attorneys General in every state where they operate, the last straw was GMAC, J.P Morgan/Chase, BMW Financial, and International (truck) Financial pulling his floorplan financing. Heard did it to himself.

[Joe L.]

Re: and we're talking about eBay prices........

I've done business with Heard and its my understanding that their problems were numerous.
In Fla, and Seminole Co. in particular, the better business bureau has a VERY LONG list of complaints , they were fined for their business practices by the state of Florida recently and the final coffin nail was GMAC ended the financing of their floorplan.
I think many of these problems were in all states that Heard did business.Bob

Bob-----


The failure of any business is virtually always preceded by a whole host of things that drive a "downward spiral". Desperation has many manifestations. The fundamental problems drive the acts of desperation rather than vice-versa. The things you describe are symptoms exhibited by a business with fundamental problems on its fall to the "trash heap".

I don't think you would find the kind of problems you described at, for example, most Toyota dealerships. That's because their business fundamentals are strong, so they don't need to resort to acts of desperation.

The fact of the matter is that most of the "Big 3" dealerships are virtually worthless because of weak business fundamentals. In many cases, the value of the real estate they sit on is FAR greater than the value of the business. When you get to a situation like that, it's very hard to continue in business. Fortunately, the value of real estate may be taking a big "nose dive" in the not-too-distant future, so that may save some dealerships that are on the edge.

Obviously, I don't like what's happening to "Big 3" dealerships-----I don't like it, at all. However, what I like is not going to change realities. Realities are what they are and I don't ignore them or pretend it's some other way----it's the "River City Joe" in me.

[Michael M.]

Re: and we're talking about eBay prices........

I understand that certain individuals who traded in vehicles to Bill Heard to have them paid off in exchange for a new vehicle may be at risk because Bill Heard didn't pay off the note on the trade-in vehicle. Theoretically, those people will owe on two vehicles, the trade-in and the new one. Then they can go to bankruptcy court and fight to get the pay off amount out of Bill Heard so they can be made whole. Not a good siutation, if it's true (I hope not!).

[Dick W.]

Re: and we're talking about eBay prices........

And you are starting to read the "rest of the story. Forged signatures is another item on the list of charges.

GM has already said that all the locations will not reopen under new owners. GM has a goal of closing about 400 franchises this year. Consolidation is the key word. There are areas around here that in a 20 minute drive you can vist 4 to 5 Chevrolet stores. Way too many

Rick Hendricks is looking a several of the locations to add to his chain.

[Bill M.]

Re: and we're talking about eBay prices........

I understand that certain individuals who traded in vehicles to Bill Heard to have them paid off in exchange for a new vehicle may be at risk because Bill Heard didn't pay off the note on the trade-in vehicle. Theoretically, those people will owe on two vehicles, the trade-in and the new one. Then they can go to bankruptcy court and fight to get the pay off amount out of Bill Heard so they can be made whole. Not a good siutation, if it's true (I hope not!).

There is a dealer in Detroit doing the same thing..."allegedly".

[Ronald R.]

Re: and we're talking about eBay prices........

I tried to get one of there ZR1's and was told I was too late! Whew they wanted prepay
RDR

[Dick W.]

Re: Largest chevrolet dealer closes doors

The last few electronic payments that were made to GMAC for floorplan money have bounced. And you ain't "heard the rest of the story" yet. The legal system is just now getting started. From what I have read, someone will end up getting a little vacation at the expense of the taxpayers.

[Bill C.]

Re: Largest chevrolet dealer closes doors

Dickie:
Who are your referring to, "Largest Dealer" and where? ?
Thanks, Bill

[Dick W.]

Re: Largest chevrolet dealer closes doors

I dunno what happened to the rest of the post, but it is Bill Heard. He sold about $2.1 billion worth of cars, primarily Chevrolet, last year

[Kenneth B.]

Re: Largest chevrolet dealer closes doors

I dunno what happened to the rest of the post, but it is Bill Heard. He sold about $2.1 billion worth of cars, primarily Chevrolet, last year

Checked out his web sites. They all say the same thing. 3400 people out of a job & God knows what he owes GM. Just what they need. I am 64 & I have never seen all of our core economy in the tank at the same time ,Manufacturing,finance & energy. I am not political but the Clinton years sure look good now. His sex life be damed.
KEN

[Steven B.]

Re: Largest chevrolet dealer closes doors

Here is the link to the story

http://online.wsj.com/article/SB122272847811388021.html?mod=googlenews_wsj