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01-19-2009, 09:14 AM | #1 |
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Headline - City bails out local car dealership
News reports indicate that the city of Victorville, CA has made a $200,000 loan to a local car dealership to keep it afloat.
The city justified the decision by citing the number of jobs and sales tax revenues that would be lost if the dealership were allowed to fail. Additionally, the report indicated that the loan is secured by a piece of property that's valued at $5.7 million. This is the second instance that I know of where a city has loaned a car dealership money to ensure that they didn't close down. I wonder if it's going to become a trend? While I'm certainly for any actions that will help keep a dealership open, it seems strange to me that they would be able to get a bank loan against the $5.7 Million property. Are the credit markets that tight? Additionally, I wonder how long $200,000 will last given the current environment? Here's a link to the news report: http://www.vvdailypress.com/news/vic...bails_car.html |
01-26-2009, 04:28 PM | #2 | |
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Quote:
While most of the information is the same as what was reported in the prior story, the WSJ noted that Victorville Motor's original request was for $1 Million. The city denied that request but agreed to $200,000 instead. That makes more sense. As before, I wonder how long $200,000 will last? |
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01-27-2009, 12:48 PM | #3 |
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I can't beleive there is local government w/ that kind of cash to lend! I also heard an interesting quote today from Detroit..."30 years ago we were car companies, that occasionally loaned money to assist in the sale of cars, now we have become banks that happen to also make cars..."
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02-01-2009, 10:45 AM | #4 |
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Dealership likely to ask for more money
The latest headline from Victorville probably isn't a surprise - "Dealership likely to ask for more money"
Although the city approved $200,000 for the dealership it appears the amount will not be sufficient to keep the business viable. The original request was for $1.5 Million. Here's a link to the latest news report: http://www.vvdailypress.com/news/say...ctorville.html |
02-04-2009, 03:42 PM | #5 |
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Headline - Council denies $800,000 loan to dealership
News reports indicate that the Victorville City Council has denied a request from a local dealership to extend an additional $800,000 line of credit.
The City of Victorville made headlines across the country last month when they agreed to loan a local dealership $200,000 - secured by real estate. Here's a link to the news report: http://www.vvdailypress.com/news/loa...e_council.html The report indicated that the Dealer felt confident the loan would be approved. |
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