Bay Area Loses Three Car Dealerships In One Week
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Bay Area Loses Three Car Dealerships In One Week
Bay Area Loses Three Car Dealerships In One Week
Reporting
Simon Perez ALAMEDA (CBS 5 / KCBS) ― Three Bay Area car dealerships went out of business this week, and the pile-up is probably not over.
Good Chevrolet in Alameda, another Chevrolet dealership in Los Gatos, and a GMC dealership in Colma all either closed, or announced they would be closed before Friday.
The general manager of Ellis Brooks Chevrolet, John Brooks, said business is off at his San Francisco dealership by 60 percent this year, the worst since his family started selling cars in 1939.
"The economy as bad as it is," he said, "people are holding onto their money more, which then makes the economy worse."
To stay afloat, they're getting rid of Buicks, Pontiacs, and GMCs to focus on their best sellers, the Chevrolets, Cadillacs and SAAB.
Foreign car sales make up about 80 percent of Bay Area car sales, he said, but the real problem is credit. Customers who want to buy that might have been able to get a loan four months ago look like poor financing risks now.
Fixing the engine also takes a back seat to filling the tank. Mortgages and gas prices, he said, are the most common reason people now cite for delaying car maintenance until it becomes absolutely necessary.
Reporting
Simon Perez ALAMEDA (CBS 5 / KCBS) ― Three Bay Area car dealerships went out of business this week, and the pile-up is probably not over.
Good Chevrolet in Alameda, another Chevrolet dealership in Los Gatos, and a GMC dealership in Colma all either closed, or announced they would be closed before Friday.
The general manager of Ellis Brooks Chevrolet, John Brooks, said business is off at his San Francisco dealership by 60 percent this year, the worst since his family started selling cars in 1939.
"The economy as bad as it is," he said, "people are holding onto their money more, which then makes the economy worse."
To stay afloat, they're getting rid of Buicks, Pontiacs, and GMCs to focus on their best sellers, the Chevrolets, Cadillacs and SAAB.
Foreign car sales make up about 80 percent of Bay Area car sales, he said, but the real problem is credit. Customers who want to buy that might have been able to get a loan four months ago look like poor financing risks now.
Fixing the engine also takes a back seat to filling the tank. Mortgages and gas prices, he said, are the most common reason people now cite for delaying car maintenance until it becomes absolutely necessary.
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I heard about this earlier today. Just a sign of the times. Without credit, people aren't going to be able to purchase new cars, and with cars sitting on lots for longer periods of time, especially at low-volume dealers, not everyone is going to survive. Unfortunately, things will probably worsen before a recovery phase sets in.
But it's interesting how all three are GM...
But it's interesting how all three are GM...
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haha i guess massive amounts of cash back offers and sales still couldnt get these off the lots...anyone want to start buying these cheap and sending them to countries where gas is $.50? they are in demand in places like that
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Sounds like someone knows how to make and run an automotive business than us Americans.
(Read this in todays paper)
