Bill Heard Enterprises is a company based in Columbus, Georgia. Founded in 1919, it operates a group of car dealers, mainly in the Southern United States. At its peak, the company operates dealerships in Georgia, Alabama, Florida, Texas, Arizona and Nevada. In 2008, Bill Heard Enterprises was the 11th largest car dealer in the United States (and as high as seventh in the early 21st century), the largest in the state of Georgia, and the largest dealer of Chevrolet cars.
It suddenly ceased operations on September 24, 2008, as a result of ongoing problems in the subprime lending market and slower car sales. At closing, there were 13 dealers in the Heard chain, plus one closed two weeks earlier. Four days after the closing of its dealer, Bill Heard Enterprises filed for Chapter 11 bankruptcy protection.
Video Bill Heard Enterprises
History
1919-1957: BeginningBill Heard Enterprises began in 1919 as William T. Heard Motor Company, where Bill Heard Sr. selling LaSalle, Essex, and Hudson cars from a showroom in downtown Columbus. Heard founded the company using the inheritance of the uncle. In 1932, he began his long relationship with Chevrolet when he bought a competing dealer.
1958-2005: Expansion
Bill Heard Jr. joined the business in 1958 after studying at Auburn University and serving in the United States Navy. The younger Heard took over the company in 1961 when his father died. Heard Jr. made a massive expansion outside of his home country in the 1980s. The expansion, built primarily on the premise of selling large numbers of cars with low profit margins, worked well in the boom years of the 1990s and the first decade of the new millennium. In an advertisement, Heard dubbed himself "Mr. Big Volume" because of the high sales volume of his stores.
In 2005, the chain reached its peak, and Heard was the main character in Columbus. A theater in the city's performing arts center was named for him, just like the road through which his flagship dealer. Her ads are heard or seen frequently in media outlets in the cities where her company's dealerships operate. General Motors gave BHE the highest award, "Dealer of the Year."
2000s: Controversy over business practices
However, the expansion of the company comes with a certain price. Most Heard businesses are built on customers whose financial situation means they will not qualify for loans from traditional lenders, such as banks, credit unions and GMAC (now Ally Financial). Heard dealers are accused of using deceptive practices to attract buyers to buy cars, or to qualify their purchases dishonestly about their financial qualifications or the car they are looking for. The chain is also accused of using GM's "fake emergency potential notification" to encourage buyers to buy new cars.
The company continues to have problems with the Governor's Office of Georgia Consumer Affairs, with enforcement actions being conducted 15 times. The state also filed a lawsuit over the recall-notice; the lawsuit is still contested when the company is closed. In 2006 and 2007, the state reported (following an investigation by Heard Jr. son) that BHE had 113 complaints filed against him by Georgian consumers, while the five biggest competitors had a combined total of ten.
2007-2008: Market issues
In 2007, the Heard chain represented $ 2.1 billion in revenue, mostly from the sale of new GM products. That year, however, dealers began posting significant monthly losses as the domestic car market faced a decline. In 2008, dealers posted monthly losses ranging from $ 2 to $ 5 million.
Companies are beginning to face problems when the market for subprime loans is drastically reduced, as a result of similar problems with subprime mortgage lenders. It cuts off both sources from many customer bases, but the additional revenue from fees paid to Hearing by subprime lenders, often 2% to 3% of the sale price. On August 21, 2008 there was also a problem with GM lending arm GMAC, in which Bill Heard lost GMAC GM's line with several stores regarding new inventory financing. Around the same time, the state of Georgia announced its plan for legal action against BHE regarding the promotion of fake recall notices. In August 2008, the company has seen a 26 percent decline in year-to-date sales since the previous year.
In September 2008, Bill Heard Enterprises was the 11th largest car dealer in the United States (and as high as seventh in the early 21st century), the largest in the state of Georgia, and the largest dealer of Chevrolet cars in the United States. Automotive News is also ranked 13th among car dealer groups in the United States.
2008: Close Dealer
With increasing pressure from lenders and regulators, the company first shut down Scottsdale, Arizona on September 12. Twelve days later, BHE announced the closure of the company's operations, and the company unexpectedly ceased operations on September 24, 2008, shutting down 14 of its Chevy dealers and making about 3,200 jobs out of work. Heard claims the closure affects approximately 2,700 employees. It has five dealerships in Georgia, and six in other countries including Alabama, Arizona, Florida, Nevada, Tennessee and Texas. Bill Heard Chevrolet at Sugar Land stay in business, as of Sept. 25, 2008. Guarantees in closed dealers remain valid at other Chevrolet dealers.
The company attributes the closure to rising fuel prices and overly focused inventories on large trucks and SUVs during the economic slowdown. The Wall Street Journal describes the closure of "after 89 years in business" as "monumental because of strategic interests [Heard] to GM."
2008-2009: Sale of bankruptcy and dealer
On September 28, the company filed for bankruptcy protection in Decatur, Alabama. Debtors include BMW, J.P. Morgan Chase and GMAC (now Ally Financial), for debts of approximately $ 229 million. The company recorded debts and assets of $ 500 million to $ 1 billion.
Following the filing, Judge Jack Caddell of the United States District Court for the Northern District of Alabama established a requirement for Hearing to find one or more buyers, to be approved by the court and General Motors. At that time filing for bankruptcy, the company has been in talks with various prospective buyers for each dealer. The owner of the NASCAR team and car dealership Rick Hendrick was mentioned as a potential buyer, as well as a dealer from San Diego, California. Heard dealers in Scottsdale, Arizona remain open while new owners are sought, while on Sept. 30, Sugar Land land, Texas dealerships have been taken over by new owners.
The flagship store in Columbus Georgia in 2009 operates under new ownership, as Legacy Automotive.
Maps Bill Heard Enterprises
See also
- List of companies Georgia (USA)
References
External links
- Archive.org Archive from billheard.com on July 10, 2007
Source of the article : Wikipedia
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