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Sep 25, 2008 - Here Today, Gone Tomorrow

Bill Heard Chevrolet, advertised as "Mr. Big Volume", is based in Atlanta and has been operating for nearly 100 years. It was one of General Motors' largest automotive groups. Nationwide, some 3,500 employees are affected. The operative word is was.

Employees were told in a 2 p.m. meeting Wednesday that the dealer was facing grave financial problems due to credit troubles, gas prices and slow sales, and would shut down immediately. By 4:30 p.m., workers were packing up boxes and an employee shut a gate so no one could get on the lot.

Since gas prices and slow sales have not exactly been a secret, those "financial problems due to credit problems" sound a lot like making bad loans to bad credit risks coming back to bite Mr. Big Volume.

Read more at wftv.com

4:16 am | Categories: automotive news
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Comments
melville248 - Sep 30, 2008 4:59 pm
Rumor has it that many Heard stores concentrated too much on the subprime customer. When those lenders raised their loan requirements, many of those same customers could no longer qualify for a loan - hence fewer customers and much lower average per-vehicle grosses.
pf_flyer - Sep 25, 2008 5:18 pm
I wonder what percentage of his inventory is SUVs and pickups?
rearwheeldrive - Sep 25, 2008 2:11 pm
I never understand how you make money on volume if the sale is negative to begin with. You have a bigger negative when you sell a high volume of negatives.
pf_flyer - Sep 25, 2008 9:33 am
Maybe he "packaged" the loans into an attractive financial instrument!
steve_ - Sep 25, 2008 9:23 am
They lost money on every deal but made up for it on volume.
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