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Sep. 25, 2008
Copyright © Las Vegas Review-Journal

Business shuts LV auto outlets

Two dealerships close in slumping economy

By HOWARD STUTZ
REVIEW-JOURNAL
PROBLEMS POSSIBLE

The closing of Bill Heard's local dealerships could cause some problems for local customers.

One issue might be consumers who had automobiles being serviced at Vista Chevrolet or Bill Heard Chevrolet and how the customers can pick up their vehicles. Michael Lafricain, a sales representative at Vista Chevrolet, said he saw between 20 and 30 vehicles in the service department when the dealership closed.

Bill Heard representatives assured the Nevada Department of Motor Vehicles on Wednesday that they will keep skeleton crews at the dealerships offices to handle unresolved matters, such as pending auto sales, DMV spokesman Kevin Malone said.

Under Nevada law, dealers have 15 days to find financing for car buyers and to provide the Dealer's Report of Sale so the buyer can get car license plates. If financing cannot be obtained, the dealer can rescind the sale and must return the buyer's down payment and trade-in vehicle, Malone said.

The buyer has 30 days to file papers with the DMV for a title.

"The first thing you do is to make sure you keep all your paperwork," Malone said. "Hopefully, they will complete all of these sales."

Dealerships are required to keep records on auto sales on file for three years. Buyers needing to obtain information should contact the DMV, he said.

The auto dealer has not surrendered its DMV business license, Malone said.

Any GM dealership will honor Chevrolet warranties.

The state Consumer Affairs Division had not received any complaints about the dealerships' closing Wednesday afternoon, spokeswoman Elisabeth Shurtleff said.

JOHN EDWARDS / REVIEW-JOURNAL


A security guard locks up an entrance Wednesday to Bill Heard Chevrolet on Decatur Boulevard in Las Vegas. Bill Heard Enterprises closed the dealership and another in Las Vegas, Vista Chevrolet on Drexel Road.
Photo by John Locher.

Two Las Vegas auto dealerships abruptly closed Wednesday, and company officials said the businesses were victims of a slumping national economy.

Georgia-based Bill Heard Enterprises closed 13 dealerships nationwide, including its two local outlets, Bill Heard Chevrolet on Decatur Boulevard and Vista Chevrolet on Drexel Road.

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    • How many local workers were affected by the shutdown was unclear. The company employed about 2,700 nationally. Phone calls to the dealerships went unanswered. Phone calls to the company's corporate offices were not returned.

    Michael Lafricain, a sales representative at Vista Chevrolet, said he and about 70 other workers were told Wednesday morning the dealership was closing. He said the manager told the workers, "I lost my job, too."

    Lafricain said the workers were told there would be "no compensation," but they would receive their final paychecks in two or three weeks.

    "I had sales appointments coming in today," said Lafricain, who had been employed at the dealership for about three weeks. "This was completely out of the blue."

    Bill Heard operated Chevrolet dealerships in Georgia, Florida, Alabama, Tennessee and Texas, as well as Las Vegas.

    According to The Associated Press, phone calls to several Bill Heard dealerships Wednesday went unanswered. One employee at a Bill Heard dealership in Memphis, Tenn., said, "We're closing, that's all I can tell you." At another Bill Heard dealership, commotion could be heard in the background as a worker said managers would not come to the phone.

    In a statement that was picked up by several media outlets, Bill Heard Enterprises blamed the economic climate for the closings.

    "Rising fuel prices, a product portfolio of mostly heavy trucks and sport utility vehicles, economic recession, unfavorable local market conditions for vehicle sales, the crisis in the banking and financing sectors, and other factors all combined to create a business environment in which the company simply did not have the resources needed to continue to operate,'' according to the statement.

    The difficult sales environment was made worse by the banking and financial crisis, the statement said. GMAC Financial Services last month discontinued credit for new inventory for some of the company's dealerships.

    According to several automotive industry Web sites, Bill Heard was the country's 11th largest dealership in 2007 with $2.13 billion in total revenue. The company had been the seventh-largest dealership six years ago.

    The company began in Columbus, Ga., in 1919, founded by W.T. Heard Sr. It developed into the country's biggest Chevrolet dealership and now is operated by his son, 74-year-old Bill Heard Jr. He was quoted earlier this year as saying he wanted to sell some of his dealerships.

    According to an Atlanta television station, a Georgia watchdog agency in August alleged Bill Heard Enterprises participated in deceptive and misleading business practices. The company denied the allegations, which were made by the Governor's Office of Consumer Affairs.

    According to the Orlando Sentinel, in November 2007, Florida slapped Bill Heard Chevrolet with nearly 30 compliance orders and $400,000 in fees and other costs to settle an investigation into allegations of deceptive trade practices. The inquiry was prompted by consumer allegations accusing Heard of misleading sales, finance and advertising tactics.

    Susan Garontakos, a spokeswoman for General Motors, which owns the Chevrolet brand, told Dow Jones News Service that Heard was "an independent businessman and has the right to go ahead" and close his dealerships. She said the operation was the single largest chain of Chevrolet dealerships in the country.

    She said General Motors determines whether an auto dealership is still a viable sales location. If it is, the automaker will work to keep it open by consolidating it into other stores or by finding a buyer.

    Three Chevrolet dealerships remain in Las Vegas: Findlay Automotive, Fairway Chevrolet and Henderson Chevrolet. Garontakos said GM will honor all Chevrolet warranties at other dealerships.

    Cliff Findlay, president of the Findlay Automotive Group, said the problems leading to the closure of the Bill Heard dealerships were with that company and not the Chevrolet or General Motors' products. He said the economy is hurting all businesses including car dealers.

    "People are not doing anything to their vehicles, and that's going to create bigger problems," Findlay said. "There is a fear factor right now, and people are holding back."

    Terry Hoisington, general manager of the Fairway dealerships, said there has been a slowdown in auto sales across the board, not just domestic vehicles. He said the closing of Bill Heard dealerships should not concern consumers interested in Chevrolet products.

    The Associated Press contributed to this report. Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871.

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    PissedoffBuyer wrote on October 07, 2008 05:11 PM: I recently went down and got a car from Findlay Honda. It was a used car, not a honda. Supposedly the loan was approved and I finalized the sale, gave them my trade-in, drove off the lot in the vehicle. 1 week later they called me stating that they were having issues with the loan and apr they signed me at. It hit the fan with me, immediately I contacted a lawyer and we currently are in negotiation with them. They claim that they rescinded the deal with a certified letter, but cannot prove it. The letter was never received. They also claim that financing is never pre-approved. I would never recommend anyone to deal with Findlay. They are definitely crooks with no remorse.


    HenderBender wrote on September 26, 2008 11:21 AM: After reading so many comments on this board, I thought I was the only one who felt this way about the local dealerships. Buying a car in the valley? I would rather have dentistry performed with no pain killers than buy a car locally. The unreal mark-ups on supposed "hot sellers"- that is always the biggest laugh! Installing overpriced "dealer options" that are aftermarket items is another one. Deals that drag on for hours upon hours in the show room. No more, no more for me!


    The beginning wrote on September 26, 2008 12:17 AM: It is the beginning of the Bush great depression. Welcome to the reality world of a neo-con economy.


    Paul wrote on September 25, 2008 08:32 PM: Half the problem with Vegas car dealers is that they are run by thieves instead of honest people, since business can be done any way it wants to be done out here. And I blame that on the state, and also on consumer affairs. I worked at a dealer for 25 years in N.J. beofre moving here, and would never buy a car in Nevada or southern California, because of shady business practices. Most of the things Vegass dealers do were outlawed in the northeast 15 years ago, and the delaers are scrutinized much more closely in the northeast then out here. This is the wild wild west, and anyone can set up shop here and do anything they want to anybody. General managers named Guido, or Chaze, ?? Come on, they would never have gotten past me in an interview. So they come to Vegas, live high, rip the customers off blindly and no one cares, since it goes on and on and on. No dealers in the northeast have gone out of business recently, and yes GMAC owns the cars. But if you don't pay for them or pay them off when sold, yes you lose your franchise. The Heard organization lost its business license in three other states by the way..Wonder why ?? Now if only Chopper would meet the same fate....


    House wrote on September 25, 2008 07:34 PM: People listen up. Yes, the employees of closing companies are out of jobs. The owners of these businesses abused the profits that they have recieved from doing business and payed very little to keep good help. I feel nothing for any bussiness that goes out of bussiness that the owner has lived on the high and not with in means. How does ones bank account goes empty, mismanagement, unlimited spending, stupidity. I know many who have lost their business and many was from high living, alcohol, drugs and keeping up with the new toys. To i feel no sorrow for them. I do feel sorrow for the ones who have tried and lived within means.


    iluv cars wrote on September 25, 2008 06:59 PM: CarGuy were you rejected by the Findlays?
    I know alot of people that have come from all dealerships in town and as far as I know The Findlays have to be one of the best organizations in town! They actually reward people that work!It's actually a process trying to work there. Try working for AutoNation or Sonic or the best The Towbinsthats trouble.I know a couple guys that work the Desk at Three Findlay stores and they are not anything close to slime! They all work hard! Have you worked bell to bell 6 days a week to close deals? Probably not! So Car Guy try crawling back in the hole you came from better yet apply for a porter position!


    Educated wrote on September 25, 2008 06:01 PM: CarGuy- get your facts straight- Heard didn't have a choice they lost their lending from GMAC they were having to pay cash for their deals and they ran dry. And if you don't think the economy had anything to do with it than "yes" you are JUST a car guy that knows nothing about anything else. Do you know how long the process, the money, and the politics it involves with opening a new store-because it sure as hell doesn't seem like it and there fore I would stop running your mouth. No one can predict what the economy is going to due that far down the road- and if one could than we wouldn't be here right now would we. Bring it on.


    Just Weird wrote on September 25, 2008 05:53 PM: I want to see John Barr and the schmuck from Towbin face off with the prisoners who make Big House choppers. Now there's a UFC match!


    J wrote on September 25, 2008 04:57 PM: Vegas car dealers & motorcycle dealers are all mostly thieves. I saved $4000 on two atv's by threatening to buy them in Utah. The dealer matched the Utah price without a fight.

    If you want to buy in Vegas, then use Costco's auto buying program. I have bought 2 vehicles that way and saved thousands each time, and it took only an hour. Shack Findlay Honda even honored the Costco price on a Pilot when they were backordered 4 months at the time. Other dealers were charging $4000 over MSRP.

    Dealers won't mess with you when you buy through Costco because they will be kicked out of the program. Costco buyers are usually serious and it is an easy sale for the dealer. And no, I don't work for Costco. I'll never buy another new car any other way.


    huh? wrote on September 25, 2008 04:37 PM: K2: Thanks for the tip on Mauna Loa...I should have known better.


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