What, No Discussions on the Sonic Dismissals?

[Bubba Louie]

I am surprised that there have been no discussions posted in the category on Sonic Automotive and the wholesale dismissals of their regional staffs in the entire country. & by the way, their stock is not performing in a stellar manner either? LOL

[SHACOS]

Hmmm..I hadn't heard anything about them. Do you have any more details?

[Bubba Louie]

All of the regional staffs were relieved of their duties at the first of the month. The only folks left in place, at least from a field perspective was the RVP & Beancounters. Looks like Evans is going to take them to new highs by cutting costs again. Poor Sonic, you can only crap on so many good people so long and they WILL begin to erode, as they are now doing! Ford had all of Evans they could take but Sonic saw $$$$$$$$$........don't give a damn about the people. Ultimately, the only ones they care about are the GM's and RVP's....everyone else doesn't mean squat. What a mistake they are making. & I do have first hand experience with them and their 'stuff!

[XDCX]

Originally Posted by Bubba Louie

All of the regional staffs were relieved of their duties at the first of the month. The only folks left in place, at least from a field perspective was the RVP & Beancounters. Looks like Evans is going to take them to new highs by cutting costs again. Poor Sonic, you can only crap on so many good people so long and they WILL begin to erode, as they are now doing! Ford had all of Evans they could take but Sonic saw $$$$$$$$$........don't give a damn about the people. Ultimately, the only ones they care about are the GM's and RVP's....everyone else doesn't mean squat. What a mistake they are making. & I do have first hand experience with them and their 'stuff!

Wow, that's a surprise and I hadn't heard anything about it.

I remember listening to Sonic's Conference Call earlier this year and being very impressed with their response to the market. I just checked their stock price and it seems like they're getting hammered just like all of the other public companies in the retail car business.

At first it appeared that Sonic would dodge the bullet because they had more high-end dealerships. With this market it looks like everyone's getting hit.

[SHACOS]

Group 1 is the one that will ride it out with all there high end dealerships. I didn't think Sonic had that many?

[XDCX]

Originally Posted by SHACOS

Group 1 is the one that will ride it out with all there high end dealerships. I didn't think Sonic had that many?

I remember looking at Sonic's portfolio of dealerships earlier this year and I was impressed with their mix. They have a lot of Mercedes, Lexus and BMW stores. Additionally they have a nice mix of Honda and Toyota stores.

Here's a link to their Dealership List: http://www.sonicautomotive.com/group-location-list/

It's interesting that they're cutting back just like the other public companies - I think almost everyone in the auto business is struggling right now.

[CarGuy2008]

Originally Posted by Bubba Louie

All of the regional staffs were relieved of their duties at the first of the month. The only folks left in place, at least from a field perspective was the RVP & Beancounters. Looks like Evans is going to take them to new highs by cutting costs again. Poor Sonic, you can only crap on so many good people so long and they WILL begin to erode, as they are now doing! Ford had all of Evans they could take but Sonic saw $$$$$$$$$........don't give a damn about the people. Ultimately, the only ones they care about are the GM's and RVP's....everyone else doesn't mean squat. What a mistake they are making. & I do have first hand experience with them and their 'stuff!

I've got news for you Bubba, they don't care about G.M.'s either. You wouldn't believe how many good G.M.'s they have ridden out of town on a rail.

[SHACOS]

Seems like all public companies think the same way about their leadership.

[XDCX]

Originally Posted by SHACOS

Seems like all public companies think the same way about their leadership.

There's not a lot of love in the car business right now, that's for sure.

[XDCX]

There was a follow-up post on the Yahoo Finance Board for Sonic Automotive that indicated that most of the Regional Staff were probably just reassigned to local dealerships - perhaps this is why there was no media coverage?

[CarGuy2008]

Originally Posted by XDCX

There was a follow-up post on the Yahoo Finance Board for Sonic Automotive that indicated that most of the Regional Staff were probably just reassigned to local dealerships - perhaps this is why there was no media coverage?

I am an insider. It was a take it or leave it proposal for these guys. Having an opening at a car dealership in a management position is rare these days. Most have downsized (thanks to Sonic's orders) to the point where they can't add anyone. Those that were offered spots were at stores that were so desperate they'd take anyone - and at a drastically reduced income level. Some of these regionals had dealership experience, others were glorified trainers with no in-store experience. Most GM's viewed regionals as corporate spies (for good reason), so the chances of them being accepted at any store in their 'region' were slim to none. A few General Manager's did jump at the chance to make old Jimbo Evans happy; but these brown-nosed morons don't know that old Jimbo has them on the auction block already regardless! Bottom line is 75% of these regionals were pretty much thrown to the wolves. Either way, do you really think the media gives one ounce of care about this matter? Of course not. Sonic is falling apart at the seams and you can't blame that on the economy. The issue was/is that Scott Smith and his sorry staff of VP's have allowed incompetent DVP's & RVP's to make decisions that have destroyed the very fiber of what once was a proud company.

[SHACOS]

Nice. I'm not glad to see another public company struggling, but on the same hand it's nice to see another public dealer going through the same issues Lithia is going through right now.

This is the time when dedicated employees must step up and make a difference. It's a lot easier to complain than it is to make a difference.

[XDCX]

Originally Posted by CarGuy2008

I am an insider. It was a take it or leave it proposal for these guys. Having an opening at a car dealership in a management position is rare these days. Most have downsized (thanks to Sonic's orders) to the point where they can't add anyone. Those that were offered spots were at stores that were so desperate they'd take anyone - and at a drastically reduced income level. Some of these regionals had dealership experience, others were glorified trainers with no in-store experience. Most GM's viewed regionals as corporate spies (for good reason), so the chances of them being accepted at any store in their 'region' were slim to none. A few General Manager's did jump at the chance to make old Jimbo Evans happy; but these brown-nosed morons don't know that old Jimbo has them on the auction block already regardless! Bottom line is 75% of these regionals were pretty much thrown to the wolves. Either way, do you really think the media gives one ounce of care about this matter? Of course not. Sonic is falling apart at the seams and you can't blame that on the economy. The issue was/is that Scott Smith and his sorry staff of VP's have allowed incompetent DVP's & RVP's to make decisions that have destroyed the very fiber of what once was a proud company.

Thanks for the update - the post on the Yahoo Message Board made it appear that there were no lay-offs and it was simply a reassignment of personnel.

Concerning the Yahoo Message Board, you'll find that things are a little more laid back here. Our focus is more on what needs to be done to improve operations than to attack what has already been done.

If you were running Sonic Automotive, what changes would you make to impact sales and profitability?

[CarGuy2008]

Originally Posted by XDCX

Thanks for the update - the post on the Yahoo Message Board made it appear that there were no lay-offs and it was simply a reassignment of personnel.

Concerning the Yahoo Message Board, you'll find that things are a little more laid back here. Our focus is more on what needs to be done to improve operations than to attack what has already been done.

If you were running Sonic Automotive, what changes would you make to impact sales and profitability?

The first thing I would do is get rid of Evans & Dyke. They have shown what little they can do and have been very damaging to the overall company. This company needs fresh talent all the way through. When I think of the good employees in the last 5 years no longer with the company, I just cringe. I would go back and attempt to re-hire about 30-40 General Manager's that either quit or got shown the door by an uninformed and unbending Hitler like Evans. I would put them on a pay plan that would not cause them to hate getting up to go to work every day. Without regional interference, I would give them the autonomy to run their own gigs. They are the experts at a store, not some regional VP 2 states away. I honestly think that with a revamping of management, many of them would consider returning. Unfortunately, the company has imploded so badly that it might just be too late at this point. It took 6 years of glue to hold this 145+ group together, and the above mentioned individuals broke it apart in less than 3 years - under the apparently unwatchful eyes of Scott Smith and company. (Bear in mind that these problems are NOT because Rachor left. Remember, Rachor hired most if not all of these upper managers in the first place. He just got out while the gettin' was good, that's all. The company had a string of RVP & DVP flops under his tenure that set the tone for today). As a public company, wall street has never favored Sonic. Sonic stayed ahead of the fray only by buying more stores and using that projected income in their year over year numbers. Same store sales never kept up. The stock is at 10 now. Contrary to what another poster said, the Smith's do not own a majority of stock. Institutional investors do. If those guys back out, watch out - a wholesale sell off / BK would be very likely. I really think that of all the consolidators out there, Lithia and Sonic have a real chance of going under.

[XDCX]

Originally Posted by CarGuy2008

The first thing I would do is get rid of Evans & Dyke. They have shown what little they can do and have been very damaging to the overall company. This company needs fresh talent all the way through. When I think of the good employees in the last 5 years no longer with the company, I just cringe. I would go back and attempt to re-hire about 30-40 General Manager's that either quit or got shown the door by an uninformed and unbending Hitler like Evans. I would put them on a pay plan that would not cause them to hate getting up to go to work every day. Without regional interference, I would give them the autonomy to run their own gigs. They are the experts at a store, not some regional VP 2 states away. I honestly think that with a revamping of management, many of them would consider returning. Unfortunately, the company has imploded so badly that it might just be too late at this point. It took 6 years of glue to hold this 145+ group together, and the above mentioned individuals broke it apart in less than 3 years - under the apparently unwatchful eyes of Scott Smith and company. (Bear in mind that these problems are NOT because Rachor left. Remember, Rachor hired most if not all of these upper managers in the first place. He just got out while the gettin' was good, that's all. The company had a string of RVP & DVP flops under his tenure that set the tone for today). As a public company, wall street has never favored Sonic. Sonic stayed ahead of the fray only by buying more stores and using that projected income in their year over year numbers. Same store sales never kept up. The stock is at 10 now. Contrary to what another poster said, the Smith's do not own a majority of stock. Institutional investors do. If those guys back out, watch out - a wholesale sell off / BK would be very likely. I really think that of all the consolidators out there, Lithia and Sonic have a real chance of going under.

Thanks for the post - Great information.

It seems that many of the Public Auto Groups have a power struggle between the dealerships and the Home Office. It also seems that in almost every case the Home Office "wins" and talented General Managers and their staff leave the organization. I've heard this story with AutoNation, Carmax, Lithia and now Sonic.

At one time it appeared that the Public Groups would consolidate the industry and crush the private capital dealerships. In some ways the advantages that the Public Groups were supposed to have are now turning into liabilities.

I'll start a new thread on Monday and frame the debate - "Public -vs- Private" and see if we can get any input.