2 more ford dealers in trouble

[DJB56]

Just been informed it appears another ford dealership in Brisbane has it back to the wall or should I say 2. Denmac ford (second time in 3 and ahalf years) and Bryan Byrt ford (The owners of Denmac) have gone into receivership. Why are these big companys struggling is it a ford thing or a sign of the times. Hope they trade their way out of it otherwise next step liquidators a place where Denmac has been before and not a good Christmas present for their workers as they would already have had their entitlements frozen . It would be be good if this info was wrong but it came from 2 different sources though.

[Itsme]

I would say most likely it sign of times as a lot of businesses are struggling at present, our economy is still on shaky grounds imo.

[Windsor220]

Sales have dried up and that means not as many cars going through the service department too. I'm predicting a few Holden dealers are going to feel it soon. The only way out is to go multi franchise.

[Smoke Pursuit]

Yes it's correct, receivers are trying to sell the group. It's not sales at fault. Bryan Byrt was the number 1 selling Ford dealer in Australia for October.

[DJB56]

Would hate to see either disappear I bought my first knew car from Bryan Byrt Ford in 1974 when I was !8 so like me they have been around for awhile

[Smoke Pursuit]

I don't think we will see the name go. Just a restructure really.

[timeout]

Look at vfacts for the month...

[Polyal]

I can fully understand why Denmac would be selling up...worst Ford dealer experience ever.

[mik]

Too be expected I suppose as we get closer to Henry shutting up shop, how many will hang on till stumps I wonder?

[bobthebilda]

Originally Posted by Smoke Pursuit

Yes it's correct, receivers are trying to sell the group. It's not sales at fault. Bryan Byrt was the number 1 selling Ford dealer in Australia for October.

General Motors used to be the largest seller of cars in the world. Enron used to be one of the biggest sellers of energy in the world. FAI was one of the biggest insurers in Australia, Alan Bond was once one of the largest media owners in Australia. Need I go on. Sometimes its how you get to the top, that is the reason you end up at the bottom.

[csv8]

Repost...discussed under Post Fact or Fiction

[EB#]

Bryan Byrt sells Volkswagen, Izuzu, Skoda, Renault as well as Ford over a number of yards.....
They must be running a pretty fat business as far as overheads go with debts on flashy
showrooms and all the rest of it, as well as experiencing a pinch in sales and service generally.
Perhaps the ship just got too heavy?

[blk6t]

I don't think Ford sell enough vehicles in Australia to warrant large dealerships anymore, they need to multi-franchise like so many other importers.

Windsor Holden in my area are now Nissan and Holden which I think will work better, particularly for the employees.

It will eventually become more mainstream, but I think dealerships will go even smaller if they utilise the potential of internet sales. I see no reason why you can't buy a brand new car online and have it delivered to your door. Only downside is next to no window for haggling, possibly, but instant messaging could resolve that issue.

[GasoLane]

Don't know about city dealers but out here in the bush most of the main dealers no longer deal in just one brand...........

Wagga Motors. (Originally only Holden) now handles Holden, Hyundai, Honda, Mercedes, Isuzu utes and Chrysler (Jeep, Dodge)

Hillis Group. (was Hillis Ford) Ford, BMW, SsangYong, Great Wall and Skoda.

Jason Motor Group. (was Jason Nissan) Nissan, Volvo, VW, Kia and Audi.

Jupiter Motors was solely a Subaru dealer now carries Mazda as well.


Seeing as there are only 60,000 people here it's probably the only way they can keep going.

[Franco Cozzo]

Here in Melbourne most of the dealers are just single manufacturer dealers, even out around the regional areas its just single manufacturers.

The only multi-franchise dealer I've seen is Melton Suzuki, which also sells new F-trucks.

[Smoke Pursuit]

Well Bryan Byrt were multifranchised. That is they sold and serviced 5 brands. Maybe they grew the business too quick? Or maybe theres no money in cars anymore. Its a very competitive market especially new cars sales and the overheads of running such businesses are huge. Just the marketing alone costs a small fortune, then you have leases on propertys that probably total 6 figures every month.

It seems the only dealers that are viable are national (AP Eagers, AHG etc) or own their premises with lower over heads.

[Smoke Pursuit]

Originally Posted by Big Damo

Here in Melbourne most of the dealers are just single manufacturer dealers, even out around the regional areas its just single manufacturers.

The only multi-franchise dealer I've seen is Melton Suzuki, which also sells new F-trucks.

They may look like they are stand alone but you dont know who owns them.

Many of these dealerships are owned by multinationals now.

My thoughts go out to the employees and suppliers who are in limbo now.

What I will say is that Ford seem to be at the forefront of dealership for closure or down sizing. Not sure if its Ford putting unreasonable stress on their franchisees or simply not doing enough to help them through the tough times.

[Polyal]

Like everything else I dont know why you can just look at stock online, haggle, test drive if you must then option by clicking boxes..boom and car is delivered to a small office that is basically a warehouse and drive away?

The sales side of it would be a bastard of a game to play.

[Smoke Pursuit]

Originally Posted by Polyal

Like everything else I dont know why you can just look at stock online, haggle, test drive if you must then option by clicking boxes..boom and car is delivered to a small office that is basically a warehouse and drive away?

The sales side of it would be a bastard of a game to play.

Too be honest I reckon this is what we will see in the future. Smaller satellite dealerships with less stock and more online trading.

Carsales has quietly killed new carsales margins by dealers price waring online and people searching for the cheapest car.

Holden have banned all dealerships from advertising new Commodores on carsales for this reason as it was costing them too much money through dealerships whinging about margins on Commodore, and Holden ultimately paying the shortfall themselves through bonus incentives. They still let them advertise HSV though for some unknown reason.

[b2tf]

Originally Posted by GasOLane

Don't know about city dealers but out here in the bush most of the main dealers no longer deal in just one brand...........

Wagga Motors. (Originally only Holden) now handles Holden, Hyundai, Honda, Mercedes, Isuzu utes and Chrysler (Jeep, Dodge)

Hillis Group. (was Hillis Ford) Ford, BMW, SsangYong, Great Wall and Skoda.

Jason Motor Group. (was Jason Nissan) Nissan, Volvo, VW, Kia and Audi.

Jupiter Motors was solely a Subaru dealer now carries Mazda as well.


Seeing as there are only 60,000 people here it's probably the only way they can keep going.

And 3 out of 4 mentioned above are owned by 2 people. Not much choice who you give your money to now, rather just the badge on the front.

[timeout]

Originally Posted by Smoke Pursuit

Too be honest I reckon this is what we will see in the future. Smaller satellite dealerships with less stock and more online trading.

Carsales has quietly killed new carsales margins by dealers price waring online and people searching for the cheapest car.

Holden have banned all dealerships from advertising new Commodores on carsales for this reason as it was costing them too much money through dealerships whinging about margins on Commodore, and Holden ultimately paying the shortfall themselves through bonus incentives. They still let them advertise HSV though for some unknown reason.

Ahh that would explain that one....

Pain through change I guess... Don't see Toyota or audi /vw dealers closing.

[Franco Cozzo]

Originally Posted by Smoke Pursuit

They may look like they are stand alone but you dont know who owns them.

Many of these dealerships are owned by multinationals now.

My thoughts go out to the employees and suppliers who are in limbo now.

What I will say is that Ford seem to be at the forefront of dealership for closure or down sizing. Not sure if its Ford putting unreasonable stress on their franchisees or simply not doing enough to help them through the tough times.

Yeah I know in Essendon that Essendon Honda, Mazda, Toyota and in South Melbourne City Mazda are all owned by the same group, I thought you guys were referring to selling more than one brand out the same premesis.

[Blue Roo]

Originally Posted by Polyal

I can fully understand why Denmac would be selling up...worst Ford dealer experience ever.

I'll never buy another car from Bryan Byrt Mt Gravatt.

[cheap]

So how is someone supposed to interpt Ford Australia's claim of "massive" interest in FGX, whilst dealers are closing up? Seems it is just more smoke blowing out of the proverbial...

Run out sale on FGX will follow soon.

[boac]

I worked for a country Ford dealer for 16 years that went into liquidation a few years ago. There was some bad management but Ford had their part to play in the whole thing. They kept jamming cars into us that very few wanted and our only option was to sell them at a loss. All the manufacture's care about is moving metal and the dealer has very little say in how many car they get. When the Fairlane was discontinued we averaged 2-3 a year, Ford sent us 6 as they wanted them off their books. You have to remember if you don't get your targets you dont get your bonus and a lot of dealers rely on that to pay the bills.

[olfella]

Originally Posted by GasOLane

Don't know about city dealers but out here in the bush most of the main dealers no longer deal in just one brand...........

Wagga Motors. (Originally only Holden) now handles Holden, Hyundai, Honda, Mercedes, Isuzu utes and Chrysler (Jeep, Dodge)

Hillis Group. (was Hillis Ford) Ford, BMW, SsangYong, Great Wall and Skoda.

Jason Motor Group. (was Jason Nissan) Nissan, Volvo, VW, Kia and Audi.

Jupiter Motors was solely a Subaru dealer now carries Mazda as well.


Seeing as there are only 60,000 people here it's probably the only way they can keep going.

I was chatting to one of the co-owners of Hillis a couple of weeks ago as I am thinking of ditching my current dealer and going with them. He said they employed 60 staff. Now to carry that many people you would have to diversify to stay alive one would think. I was very impressed any way and will make the move even if it does involve a bit of travel on my part.

[Smoke Pursuit]

Originally Posted by Big Damo

Yeah I know in Essendon that Essendon Honda, Mazda, Toyota and in South Melbourne City Mazda are all owned by the same group, I thought you guys were referring to selling more than one brand out the same premesis.

It's not necessarily the sales showrooms that are combined but in the case of Bryan Byrt their predelivery area did PD for all brands and 3 Ford dealerships. Back in the day it was Ford only servicing 1 dealership. So you can see how they have diversified when they can prepare and service 5 brands out of the one site.

[nautiqueken]

The idea of doing PD for all dealers out of Mansfield is just plain crazy. The dealers need to look at where they are wasting money & lean it up.
Take for example my Ranger (which I may or may not get next week through Denmac..) it's a Denmac stock vehicle. Now they truck it to Mansfield for PD, then truck it back to Darra for Rego & delivery.
That's probably $300 minimum wasted in transport costs alone - sell 1,000 cars a year, there goes $300,000, all while service staff are payed to scatch their bums..... The group only reported $1.3mil in profit a few years ago.

[browser351]

http://www.couriermail.com.au/busine...-1227122425124