Santa Barbara Chrysler/Jeep/Dodge closes down

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News reports indicate that Santa Barbara Chrysler/Jeep/Dodge/Hyundai closed down suddenly this week. For the full report from the local TV station - click here (http://www.keyt.com/news/local/Car-Dealership-Closes-Overnight-99734044.html)

The dealership is one of four or five in Central California that were left hanging during the transition from Chrysler Financial to GMAC. The dealer principal indicates he has a new owner lined-up and hopes the dealership will re-open soon and re-hire the staff that was laid off.

As a side note, the dealership is located on property leased from the local airport and is in a designated flight path zone. The dealership has been grandfathered for the past 30 years but will lose that status if the dealership is closed. Without the exempt status the facilities would likely be torn down to comply with FAA mandates.

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The dealer principal indicates he has a new owner lined-up and hopes the dealership will re-open soon and re-hire the staff that was laid off.

News reports indicate a GM dealer, Leo Bunnin, from neighboring Ventura County has completed negations and is in the process of performing due diligence concerning the purchase of Santa Barbara CJD - Hyundai.

For the full report - click here (http://www.vcstar.com/news/2010/aug/10/bunnin-dealership-may-expand-in-goleta/)

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News reports indicate a GM dealer, Leo Bunnin, from neighboring Ventura County has completed negations and is in the process of performing due diligence concerning the purchase of Santa Barbara CJD - Hyundai.

For the full report - click here (http://www.vcstar.com/news/2010/aug/10/bunnin-dealership-may-expand-in-goleta/)

After almost three months of negotiations Leo Bunnin's plan to purchase Santa Barbara Chrysler, Jeep, Dodge, Hyundai from Jim Crook have fallen through. Jim Crook will close the dealership by the end of this month. For the full report - click here (http://www.vcstar.com/news/2010/nov/01/bunnins-s-barbara-deal-fails/)

Perhaps most interesting is the reason cited for the failed negotiations - misunderstanding about what tenant improvements would be covered by Chrysler. Here's an excerpt from the report: He said Monday that a deal collapsed over tenant improvements he thought Chrysler would cover. Bunnin said he was going to stay about 18 months in Goleta, then move into a mall on Hitchcock Way in Santa Barbara.
“There was a misunderstanding between what I thought the manufacturer would do and what they actually could do, and that kind of cleared the deal,” he said.

To the extent Bunnin is a successful GM dealer, I wonder if there are situations where GM would have helped with tenant improvements?