Texas Closings

[possum]

There seems to be a lot of talk of Texas Dealerships in trouble, or closing. Are there any facts?

[XDCX]

There seems to be a lot of talk of Texas Dealerships in trouble, or closing. Are there any facts?

Are you referring to Chrysler Dealers, or all OEMs?

I've always thought that Texas would be the last area to get hit because the economy has been relatively strong. In fact, I was surprised to read about the closing of the Lawrence Marshall dealership.

[possum]

There is talk of several, mostly small, dealers in trouble. The Bloomberg news is also a little scary. I've done this a long time, but I still don't know what I'd expect in a bankruptcy!

[XDCX]

There is talk of several, mostly small, dealers in trouble. The Bloomberg news is also a little scary. I've done this a long time, but I still don't know what I'd expect in a bankruptcy!

To the extent that this involves all OEMs I'll move the thread to the Texas portion of our Regional Forums.

In answer to your question, I don't have any information concerning Texas but I have watched a number of dealers fail on the West Coast. Northern California seems to be the area that's been hit the hardest and it hasn't let-up yet.

Concerning Chapter 11 for Chrysler, we've concluded that it would be a dealer's worst nightmare. Cash flow issues would wipe out most dealers. :(

[XDCX]

Concerning your statement about what might happen if one of the OEMs were to file Chapter 11 Bankruptcy, here's a thread you might want to review.

http://www.dealershipforum.com/forums/showthread.php?t=643&highlight=chapter

I really hope that it doesn't come to this, but it is a legitimate worry. :(