Chrysler claims to have a buyer for Motor Village of Los Angeles

[XDCX]

Brad Wernle from Automotive News just released a story that Chrysler has lined up a buyer for their $30 Million Factory Owned Dealership - Motor Village of Los Angeles.

The report indicates that Mr. Dennis Lin, owner of the New Century Automotive Group, will purchase Motor Village of Los Angeles from Chrysler.

Chrysler appears hopeful that the announcement to sell-off Motor Village will eliminate any risk of disciplinary actions by the California New Motor Vehicle Board which is set to review the matter during a meeting scheduled for September 27th.

No financial details were released but it was noted that Mr. Lin only agreed to purchase the dealership, Chrysler will continue to own the real estate.

[gingersnap]

So what else is new the get under the RADAR again. Every dog has there day and someday it will happen to CHRYSLER.

[XDCX]

Originally Posted by gingersnap

So what else is new the get under the RADAR again. Every dog has there day and someday it will happen to CHRYSLER.

It would be interesting to see what would happen if Chrysler's deal with Mr. Lin were to fall apart.

I don't sense the California New Motor Vehicle Board has much of a sense of humor and I doubt there's a long line of private capital dealers who want a piece of Motor Village.

[gingersnap]

Originally Posted by XDCX

It would be interesting to see what would happen if Chrysler's deal with Mr. Lin were to fall apart.

I don't sense the California New Motor Vehicle Board has much of a sense of humor and I doubt there's a long line of private capital dealers who want a piece of Motor Village.

It would be real interesting considering California needs Money more than any other state in the union. These states are cracking down big time to generate money fines all over out there on anything and everything. I know of a dealer close to me that is in court now over a $325,000.00 fine for having1 unlicensed sales person. equals out to be $1000.00 per car while he was there.

[XDCX]

Originally Posted by gingersnap

It would be real interesting considering California needs Money more than any other state in the union. These states are cracking down big time to generate money fines all over out there on anything and everything. I know of a dealer close to me that is in court now over a $325,000.00 fine for having1 unlicensed sales person. equals out to be $1000.00 per car while he was there.

That's an excellent point - California needs cash and Auburn Hills would be an easy target given their history with the California New Motor Vehicle Board.

There was a fear, however, that if the situation were to get ugly the California New Motor Vehicle Board could threaten to close Chrysler down for a short time as a form of punishment - that action could hurt ALL of the Chrysler dealers in California.

Thankfully it appears Chrysler is steering away from that minefield and hopefully they'll divest of Motor Village of Los Angeles and be more mindful of dealer franchise laws in the future.

[birch3x]

Originally Posted by XDCX

Brad Wernle from Automotive News just released a story that Chrysler has lined up a buyer for their $30 Million Factory Owned Dealership - Motor Village of Los Angeles.

The report indicates that Mr. Dennis Lin, owner of the New Century Automotive Group, will purchase Motor Village of Los Angeles from Chrysler.

Chrysler appears hopeful that the announcement to sell-off Motor Village will eliminate any risk of disciplinary actions by the California New Motor Vehicle Board which is set to review the matter during a meeting scheduled for September 27th.

No financial details were released but it was noted that Mr. Lin only agreed to purchase the dealership, Chrysler will continue to own the real estate.

I wonder when that ROI comes around.

[XDCX]

Originally Posted by birch3x

I wonder when that ROI comes around.

It will be interesting to see what happens with Motor Village of Los Angeles.

In my opinion there's no way that location will be able to sell enough vehicles to cover the rent on a $30 Million facility. If Auburn Hills subvents the rent for Mr. Lin but they don't do it for all the other dealers in Southern California does that still maintain the appearance of a "Factory Store" in the eyes of the California New Motor Vehicle Board?

Time will tell.....

[XDCX]

Originally Posted by XDCX

In my opinion there's no way that location will be able to sell enough vehicles to cover the rent on a $30 Million facility. If Auburn Hills subvents the rent for Mr. Lin but they don't do it for all the other dealers in Southern California does that still maintain the appearance of a "Factory Store" in the eyes of the California New Motor Vehicle Board?

Time will tell.....

Automotive News is reporting that the possible sale of Motor Village of Los Angeles doesn't resolve Chrysler's legal issues. The California New Motor Vehicle Board is still scheduled to hear charges by the California DMV that Chrysler knowingly made false statements to the department or knowingly concealed information about Motor Village of Los Angeles.

It's also speculated that Chrysler's agreement to sell Motor Village will be carefully studied to determine if there is any rent subvention by Auburn Hills which would give the operator of Motor Village an unfair advantage over Chrysler's other dealers. A $30 Million facility in Southern California should command $200K+ in monthly rent.

The meeting for the California New Vehicle Motor Board is scheduled for September 27th - it's unclear how soon any decisions made at that meeting will be made public.

[steve_biegler]

Watch this deal fall out of bed very quickly.

[XDCX]

Originally Posted by steve_biegler

Watch this deal fall out of bed very quickly.

The part I thought was interesting is this is no longer just a complaint filed by the California New Car Dealers Association, now it's charges filed by the California Department of Motor Vehicles.

Chrysler will have to explain why they opened the store and why they continued to operate it for nine months when it appears they did so in violation to California's Dealer Franchise laws.

[crowe]

Originally Posted by XDCX

Chrysler will have to explain why they opened the store and why they continued to operate it for nine months when it appears they did so in violation to California's Dealer Franchise laws.

Yes your honor, however aren’t we protected from this court since Chrysler filed bankruptcy & the US government chose Fiat to save Chrysler, the UAW & America. Excuse me but how much is the fine per transaction? Can we settle this with stock options or a gifted dealership?

[XDCX]

Originally Posted by crowe

Yes your honor, however aren’t we protected from this court since Chrysler filed bankruptcy & the US government chose Fiat to save Chrysler, the UAW & America. Excuse me but how much is the fine per transaction? Can we settle this with stock options or a gifted dealership?

That reminds me of Jim Press' testimony before Congress when they were investigating the OLDCO terminations. He was willing to say anything just to deflect the heat and make it sound like Chrysler was interested in the welfare of the OLDCO dealers.

[Txflyer]

Originally Posted by crowe

Yes your honor, however aren’t we protected from this court since Chrysler filed bankruptcy & the US government chose Fiat to save Chrysler, the UAW & America. Excuse me but how much is the fine per transaction? Can we settle this with stock options or a gifted dealership?

Yep, that ought to be worth a cabinet position or Ambassador to Switzerland to sweep that one under the rug.

[ohiobuckeyes]

Originally Posted by crowe

Yes your honor, however aren’t we protected from this court since Chrysler filed bankruptcy & the US government chose Fiat to save Chrysler, the UAW & America. Excuse me but how much is the fine per transaction? Can we settle this with stock options or a gifted dealership?

Quote of Week!!!

[Needhelp]

I noticed this statement in that article:

Elsewhere in the state, Chrysler has teamed with a private equity firm, York Capital Management, to open Chrysler and Fiat stores in metro areas under the California Superstores banner. Several of the stores were former Chrysler dealerships that went bankrupt before the automaker's 2009 bankruptcy.

Read more: http://www.autonews.com/apps/pbcs.dl...#ixzz1Z9xrIitx

Someone needs to refresh my memory. Why were those stores closed in the first place?

Never mind, I just reread the statement: the stores went bankrupt, before Chryslers bankruptcy.