takes-trendsthe.blogspot.com
“We’ve never seen anythintg this bad,” the 20-year veteran of the auto industry “It’s just staggering.” That’s saying as this was the industry’s sixth straighr year of declining sales. After sellint 168,000 new vehicles in 2007, Minnesota auto dealers will be luck if theyreach 150,000 this year, Lamber said. Dealers used to sell 210,000 a The declining market forced 40Minnesota new-ca and truck dealerships to close in cutting the ranks to 416. In the state lost more dealers this year than in the past fouryearws combined.
Even Denny one of the state’s largest and most high-profile auto dealers, stumbled upon hard He closed six dealerships and sold threed others after Services America froze credirt to several ofhis dealerships, leaving them unabl e to buy new cars. “The decision to realign our dealershipsd came as we found ourselves in the midsy ofa ‘perfect storm’ of economicd bad news: a financial crisis on Wall chaos in the housinyg market, consumer confidence at an all-tim e low and the sight of the Big Thre on their knees in Washingtobn asking for a bailout Hecker said in a statement announcing the realignment in “We needed a new business model builtg around our dealerships with the most potentiao volume and value.
” Hecker is suing Chrysler Financial, alleging that the lender acted in bad faith and significantlyh damaged Hecker’s business when it “suddenly and withouft notice” placed a hold on his credit. Hecker’ s business filed for Chapter 11 bankruptcy protectionm in early December and closedaboutf two-thirds of its The company, which Hecker bough in 2006, is “exploring strategicf alternatives including reorganization of the business, a sale or merger,” the companyy said in a statement.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment