Automotive Updates

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By Phil Villegas

Select dealer groups that grew aggressively over the last three years are facing potentially devastating challenges in the current economic crisis.

By Phil Villegas

The automotive retail landscape has become quite crowded.

Not long ago new franchises were available to anyone with a strong desire and a decent business plan, sometimes regardless of automotive experience or proven track record.

By Phil Villegas

It may be surprising, but the likely reasons some dealers may not survive are only tangentially related to the economic crisis.

Often, a dealer’s failure will have more to do with internal management than with external factors. The economy did not put Bill Heard dealership group out of business. Management did that.

By Phil Villegas

If you’re in the market to purchase a dealership and have been sitting on the sidelines waiting for the market to bottom out, the next 90 to 120 days may yield some of the best buying opportunities that we will see for a long time. The key to making a good acquisition in this market is to be emotionally and financially disciplined.

By Phil Villegas

Over the course of the last several months, there has been a great deal of debate about the nature and amount of any federal assistance for auto makers, with tense discussions focusing on sources of funding, terms of financial aid, and plans for restructuring and future success.

By Phil Villegas

As domestic auto makers and banks position for seats on the life boat, dealers don’t even have a lifeline.

American auto companies don’t believe their survival is through its current dealer network. Each of them thinks its long-term success is based on a greatly reduced domestic dealer body.

By Phil Villegas

An estimated 1,000 dealerships will close this year, primarily due to the economic crisis gripping our nation. That means roughly one of every 20 dealerships may close its doors. If you are a domestic dealer, your odds are even less favorable.

By Phil Villegas

With the sharp downturn in vehicle sales, dealers (both foreign and domestic) have watched the value of their stores decline.

So what does this trend mean if you’re looking to buy or sell in the near future?

By Phil Villegas

If you own a dealership selling one of the Detroit 3 brands, you might be thinking the franchise is worthless.

If you believe everything you hear, all you should expect to receive from the sale of your dealership is the value of the real estate and cost of your assets. The value of the “goodwill” or “blue sky” for domestic dealers seemingly is nil.

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