Local Chevrolet dealers say they are prepared to fill the void for warranty and service work caused by the closure of two dealerships owned by Bill Heard Enterprises in Las Vegas.
Findlay Chevrolet General Manager Justin Findlay said his dealership is prepared to ramp up its service area to accommodate customer needs, a plan that could include hiring some of the technicians from the two closed Bill Heard dealerships.
"I think we are in a great position to help accommodate those customers," Findlay said. "We intentionally overbuilt this facility, and for the last year and a half we have been adding advisers."
Findlay Chevrolet has 55 service bays at its dealership on South Torrey Pines Drive.
Bill Heard Chevrolet on South Decatur Boulevard and Vista Chevrolet on Drexel Avenue in Las Vegas were among the 13 Bill Heard dealerships nationwide that closed.
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| A view of the Findlay Chevrolet dealership by Interstate 215 and South Rainbow Boulevard. The dealership will be able to service customers who bought vehicles at Bill Heard Chevrolet, which closed in September. |
| STEVE MARCUS / STAFF PHOTOGRAPHER |
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Susan Garontakos, a spokeswoman at General Motors corporate headquarters in Michigan, says the company would like to reopen both Las Vegas dealerships, but it is too early to say when that might happen.
"When a dealer decides to close its doors, a process is set in motion," Garontakos said.
"Our people in the region take a look at the market area and any changes in demographics to better understand the throughput of that dealer. When that process is competed, a decision is made whether to keep (the dealerships) open or to consolidate."
If General Motors decides the Las Vegas market can sustain five dealerships, the word goes out through the network of existing dealers that the sites are available. At that point, one or more existing dealers or a prospective dealer can express an interest in picking up the territory, and General Motors then decides who gets it. What happens to the inventory is largely determined by whether the dealership remains open.
Put in the simplest terms, the inventory at a dealership is purchased by GMAC, the financing arm of General Motors. Dealerships then essentially pay GMAC back as cars are purchased by customers.
This ability to sell cars through GMAC, known in the industry as flooring, is how most dealers operate. It has been widely reported that Bill Heard lost its flooring and that is what ultimately led to it closing its dealerships.
Neither Garontakos nor Findlay would confirm that, but both acknowledged it would be difficult for a dealer to stay in business without flooring, especially in this economy.
"We've heard they have had some internal issues," Findlay said.
A dealer uses more than one financing arm and in good economic times it's conceivable alternate financing could be arranged if flooring was lost. With the credit markets so tight, the loss of support from GMAC would be devastating.
Garontakos acknowledged General Motors has been streamlining its network of dealerships to offer more efficient service. Population shifts and other factors have left some markets oversaturated.
In 1998 there were 4,252 Chevrolet dealers and 8,439 dealers of the brands that make up General Motors. At the end of 2007 that number had dropped to 3,873 Chevrolet dealers and 6,776 dealers overall. By August, the numbers had dropped to 3,786 Chevrolet dealers and 6,550 dealers in overall.
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| A new Cobalt LT, purchased at Bill Heard Chevrolet, gets warranty work in a service bay at the Findlay Chevrolet dealership near Interstate 215 and South Rainbow Boulevard. Troubled auto dealer Bill Heard Enterprises, which included two Las Vegas dealerships, closed its dealerships nationwide. |
| STEVE MARCUS / STAFF PHOTOGRAPHER |
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During this period General Motors also phased out its Oldsmobile brand.
Despite the closings, the Las Vegas market seemed fairly stable, according to industry observers. Until Bill Heard closed its dealerships, five dealerships were handling a population of about 2 million in an area without public transportation options of some other large cities.
This appears to be more of a Bill Heard problem than a Chevrolet or auto industry problem. A few weeks before the Las Vegas closings, Bill Heard shut down its dealership in Scottsdale, Ariz., which is considered another stable automobile market.
Bill Heard is also involved in litigation here and elsewhere, and the subsequent closing of all of its dealerships suggests an internal impetus for the company's demise.
"I don't think this is a sign of things to come," Findlay said. "Most dealerships are still healthy and in a place like Las Vegas, where you have to drive to get around, you almost have to have a car."
Findlay said car dealers take different approaches to selling and although some, including Bill Heard, relied on big promotions, Findlay Chevrolet takes a more low-key approach, focusing on fair pricing and service after the sale.
The promotion that features the Frank Findlay bobblehead was designed to emphasize the company's frank and honest approach. For the record, there is no Frank Findlay. He was created by an outside marketing firm.
Findlay said several former Bill Heard employees have already applied for jobs at Findlay Chevrolet and although the company will be selective, it would likely hire some of those workers.
"They had some great people and a nice inventory," Findlay said. "I'm just speculating, but I think if it had been just a matter of how they served customers in Las Vegas, they'd still be in business."
In addition to Findlay Chevrolet, Fairway Chevrolet on East Sahara Avenue and Henderson Chevrolet in the Valley Auto Mall on North Gibson Road remain open.
Former Bill Heard customers looking for service or warranty information can call one of the local dealers or contact General Motors directly at (800) 222-1020 or visit www.chevrolet.com.
In another recent transaction regarding the local automobile industry, Chapman Automotive Group has purchased the 4.82-acre facility that Fletcher Jones Toyota will vacate at 3175 E. Sahara Ave.
The $10 million transaction was brokered by Lance Hamrick of Coldwell Banker Premier Realty.
Fletcher Jones Toyota will move across the street to 3275 E. Sahara Ave.