Man, this news cycle is insane. Another Automotive News [sub] alert, this time telling us that the infamous Bill Heard dealership chain is toast. All 13 stores are about to close their doors. “The company notified the stores’ general managers at 2 p.m. today, the source said, who spoke anonymously because he was not authorized to speak.” The source offered a predictable litany of factors (aside from the fact that Bill Heard is one of the most reviled automotive chains in American history). “High fuel prices, cancelled floorplanning from GMAC Financial Services, a reliance on trucks and SUVs, a soft national economy and struggles in local markets had troubled the company, which on Sept. 12 closed its store in Scottsdale, Ariz.” The story behind the story will take some unearthing, but the damage to GM caused by the loss of “Mr. Volume” is calculable. “Bill Heard Enterprises, of Columbus, Ga., ranks No. 13 on the Automotive News list of the top 125 U.S. dealership groups, with 2007 group revenue of $2.13 billion.”
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Wow, just wow!
Good riddance to bad rubbish!
I say good riddance. They are and have been mired in legal battles for years. I’m sorry for the few honest people that worked there, but this dinosaur needed to be put down.
How bad were they? Did you have personal experience with one of these dealerships?
Haven’t been ripped off by them, but I do dislike their radio ads.
This article doesn’t give all the incidents, but paints a good picture.
http://www.ajc.com/search/content/business/stories/2008/08/27/bill_heard_lawsuit.html
I have good reason to hate them, so I’m glad this happened. Problem is, GM just lost one of their best metal movers.
Wow, I’ve known of these guys most of my life…one of the largest dealer groups in the country, especially for The General.
The fact that this chain was a seller of GM vehicles for such a long time says alot about GM, none of it positive. Go rot.
And please Sajeev, do tell.
The Memphis Business Journal has a short article on this as well if you don’t subscribe to Automotive News:
http://www.bizjournals.com/memphis/stories/2008/09/22/daily19.html
From that article: “According to its Web site, Bill Heard sells ‘around $2.5 billion’ worth of vehicles a year and employs more than 3,500.” That there is a lot of cars and a lot of employees. Most of those sales will likely simply happen at other dealerships in the areas Heard was in, but many of the employees are going to be out of luck.
Perhaps we are seeing a bit of Schumpeter’s Creative Destruction at work.
On the bright side – GM can subtract 13 stores from its bloated dealer network.
How many vehicles does this guy sell? 2 billion in revenue is what like 60,000 vehicles…. but revenue includes, parts&service, & pre owned sales vehicles amoung whatever else they do….
the loss to GM re: vehicles would be…?
Well, this is kind of good news for GM I guess; one down, ~1500 or so to go – then their dealer bloat will be “solved.” Maybe Red-Ink-Rick can give himself a tax-payer subsidized bonus somehow here.
Couldn’t have happened to a nicer group of assholes.
Today I just noticed that the asshole Buick/GMC dealer that sold my dad one ok and one horrible Buick, and a lot of horrible Buick service, went under (Joe Mitchell Buick-GMC).
The signs and building are still up, but the lot is completely empty.
This is the best news posted on this site in weeks. I can’t wait to go back home to see the folks over the holidays and not have to see their repulsive lightboard at their Sugar Land, Texas location!
I surprised anyone would buy a car from a company with such a gaudy-unprofessional website…looks like a cheap porn site.
http://www.billheard.com/
Takes the concept of ‘colour and movement’ to ridiculous extremes.
Funny how BH Chevrolet is blaming their downfall on everyone and everything other than themselves. They have swindled customers for years, false advertising, trying to put the blinders on, hoping no one would question the sale. They even have the insurance people on site which I truly believe is a conflict of interest. Geico does your estimate on site and of course encourages you, almost bullies you to have the bodywork done at that dealership because Its guaranteed for the life of the car. Then when you get it back, if you don’t have a keen eye, you miss something that wasnt fixed and by that time its too late.
Sales tactics were also predatory, malicious, and deceptive. I found my vehicle on the web and they tried to hand me a contract with the price $3000 over what it was listed for on the site. The guy tried to push it over by telling me just what my payments were and “Ok sign here.” No, he was messing with a semi smart chick. I asked him why the payments were so high and he then told me the sale price. I screwed him right back. The vehicle was listed on the site at 17500. So I told him I saw it for 17000 on the site and I would walk out if that was not the price I’d get. He said I don’t think we can do that. I told him maybe he better ask first. It took 10 seconds..he didnt ask anyone anything, and came back and said, “oh your in luck, we can do the 17K.” I said, “No you’re in luck because I didnt walk out.” They also post on their doors they offer free CarFax reports and told me I’d have to get my own. Little did I know they sold me a car that was “incomplete”.
So, Bill Heard its no longer about the bottom line cause now you’re at the bottom of the barrel.
Way to Go fireypeach!
Glad to hear that you did not take any crap and fold over when they tried to pull a fast one.
PS. I let my wife buy all my cars. She calls dealing with some sales and F & I guys “Sport”
Being a General Sales manager at a Delaership, the key words are GMAC cancelled their floorplan…. That tells you right there that a lot of funny numbers were running out of there…
I sent you the vins, I put them in the mail….
How bad were they? Did you have personal experience with one of these dealerships?
Yes. Horrible. A friend was given the old ‘switcheroo’, where she was called back in two days after the sale because ‘the credit rate was too low’, only to find they had already ‘sold’ her trade.
Secondly, they sold a new car to someone who was using a friend’s SS number with no legal documentation whatsoever. None. And plead complete ignorance, blaming said friend (who lived 150 miles away) on going on a drunk bender and forgetting her actions.
Here in Houston, only the truly desperate knowingly went to BH.
A biggie bites the dust. I hope every last sleezy dealer in the USA goes under. There are many many thievin’ dealers, managers and salesmen out there who deserve to go on the unemployment line.
I worked for the largest Chevy dealer in north NJ and they would actually say in the weekly sales meetings, “do anything, say anything, promise anything, lie if you have to, just get the people on paper, we’ll worry about the problems later”.
i’ll never forget in one of my first law jobs. A lady comes to us. She bought a new Mitsubishi car from one of the local dealers. They saw her coming with a telescope and took advantage in ways that are immoral.
At the time, the porsche 944 was my unattainable dream car. Her contract for a small Mitsu came to over the 24k the porsche would have cost, spread over five years.
We took the case out of sheer sympathy, and didn’t make any money. She took the car back to the dealer, with our letter, and after some attempts to get her to “make just one payment and we’ll work it out” (which locks her into the deal legally) we did end up stuffing the 14k car for 24k up the dealer’s nose.
Car dealers suck to sue. They know every game, and they don’t deal in “good faith”…ever. I sued Ramsey Automotive a few years back (you NJ folks, it is my personal opinion that you should take your money elsewhere, never Ramsey Auto Group) for bad transmission work, and they played every game-I did win a settlement, but it was not what they cost me and if I had not been a local attorney, the case could not have been pushed as it was.
I sued a local high end eurocar dealer. My clients bought a used volvo with a used car warranty. When the timing belt blew, the warranty company claimed it was not “an internally lubricated part” and disclaimed. They paid a part as a “good faith settlement”, which worked out to the policy less a third as legal fees. My clients sued in local small claims, and a good Judge held the dealer responsible for the remainder of the repair work.
This is why insurance companies always lobby against raising the Small Claims Court limits. It means they can’t play games.
With car dealers, get it done before you sign, or get it in writing….any “we’ll work it out” is a crock of poop…and that’s my legal opinion.
Oh yes, one last story. My mom, after a divorce, bought an MR2. She had it two days when the stealership called and said she had to come in to sign new papers because “her deal was wrong”. Mom was a recent divorcee, but is also a NY real estate shark. After speaking to attorney son she called back and said “come get the car”. Manager called, and threatened her. I called and laid the manager out. No further issues, but what sort of people call a stressed person and threaten to take her new toy and symbol of freedom away ? Bastards.
I see this as part of a theory I have been thinking about for some time. People are tired of the crap dealerships with high pressure salespeople. Eventually they have to start investing in customer service or they will loose business.
Also, in tough economic times less people are in the market, those that are left know they have more power, so they will put up with less. Too many dealers, not enough customers.
So long Bill Heard, time for the junkyard.
Hmmm… I hear Lundberg was keeping all the Swingline staplers in the GM’s desk. Guess I’ll get some gasoline for that disgruntled employee who hangs out in the closet.
NickR : my brother bought a C5 Z06 from them, after 1 hour (or more?) of fighting on the price. We walked out, and the only reason we came back in was because the car was optioned perfectly for his tastes. He ended up getting it for invoice, even though the internet manager tried his best (oops! I miscalculated) to add a few hundred to the deal.
After the selling price was done and he wanted to talk shop with “car guys” this guy told us that back in the day he worked at a Pontiac dealer where he took a red/red and a green/green 1985-ish Grand Prix and made a red/green and a green/red Grand Prix out of them. He then advertised a low, low price on two cars in stock. Obviously almost no one would buy such hideous cars, but it got people in the door.
Switching interiors to get foot traffic? No wonder Bill Heard gave him a job…and a promotion or two. And they do that still, I saw a blue Cavalier with a yellow Starsky and Hutch stripe on their lot. It works.
(Houstonians: you might see Cavaliers/Impalas with Starsky and Hutch-esque stripes around town, and Bill Heard badging on the back. I’ve seen two. Those are the advertised stinkers that mislead people to their showrooms)
Anyway…
We then went to the finance department, they gave my brother a mediocre finance rate (given his debt to equity ratio) and snuck in an extended warranty with it. Yes, that interest rate was only available if you got that warranty. But he wanted the car so he got it. Even after all that work, they broke us down. Not our finest hour as pistonheads. Nice car, terrible dealer.
speedlaw: I hate the Ramsey Auto Group. But living in Rockland County there are very few Mazda dealers, hence I leased a Mazda there. They are a staple of route 17 and treat people like crap.
Another article about Bill Heard. So glad to see a terrible business die.
Nashville Bill Heard
Couple of funny quotes from that article:
“Attorney Barry Weathers calls Bill Heard “a cancer on the community” and says the problems reflect the company’s corporate culture. ”
“She refused to hand over the keys. That’s when, she says, the salesmen surrounded her car while another used a truck to block her in all while her 1-year-old son sat strapped in his car seat…. Wilson finally called police from her car to get out of the dealership — with her car.
She is now suing Bill Heard for false imprisonment.”
SAUSAGE55: Being a General Sales manager at a Delaership, the key words are GMAC cancelled their floorplan…. That tells you right there that a lot of funny numbers were running out of there…
I sent you the vins, I put them in the mail….
Definitely a Fargo (the movie, not Robert Farago) moment. Nicely put.
I hate large dealer groups. I always find that the largest and nicest looking dealers are the ones that treat you poorly. I bought my Mazda at a large chain and the service I received there was terrible! Once I finally switched to a smaller family owned dealership, all of the problems I had that the larger dealer “couldn’t reproduce” were magically solved.
This may actually be good for Chevy. Not every sales channel that moves a lot of volume is actually adding to the bottom line in the long run (or even the short run).
I have seen plenty of businesses that just could not figure out that their star salesman or distributor was costing them money.
Most of the employees who escape prosecution will most likely seek employment at other dealerships. I would hope that when the HR manager sees “Bill Heard” on the resume, they won’t hire the job seeker. But the employee will almost certainly say they are one of the good guys who was unfortunate enough to work for a bad apple. So the deceptive, illegal practices will continue elsewhere. As always, car buyers should remain vigilant.
http://www.billheard.com
>shudder< that IS a bad website.
I agree that this will be good for GM in the medium to long run. They need to work as hard as they can to get rid of bad dealers; these guys did them a favor by imploding.
There is such a huge opportunity for a smart automaker to make dealer experience a high priority, and I know they’ve tried but not very effectively. They can build all the cappucino lounges they want, but the core experience of buying a car still blows chunks.
Landcrusher said:
“I have seen plenty of businesses that just could not figure out that their star salesman was costing them money”.
You nailed it. I might also add star sales managers. These dealerships are drunk with the numbers game. As long as you’re near the top of the “sales board” each month you’re the superstar and everyone else sucks. You can be the sleeziest, most thievin’, lyin’, immoral, dope smokin’ slug on the planet and as long as you have the numbers you’re gold. The decent upright and honest salespeople go by the wayside. This is the culture in many dealerships from coast to coast.
I made this very point in a letter to Bob Lund when I left my sales job at the local sleezy Chevy dealer…..I never got a reply.
Obviously good riddance, especially considering the customer stories and lawsuits mentioned in articles others have linked to in their comments.
I am curious to know whether this means that Bill Heard has surrendered his franchise back to GM. If not, it seems that he could re-open under a new business name. He’s undoubtedly got plenty of capital and would not miss out on the opportunity to make more money in the future. Any word on this?
Sounds like a great time to do a Bill Heard profile. Who is the guy? More BH stories would be entertaining.
As for the woman whose one year old was stuck in the SUV while the BH employees surrounded it. I’m a calm guy but I’d probably gone to jail that day.
Fine – you want to deny me access to my child and my vehicle? Watch this fellows…
Saw some of the same tactics at a few Honda dealers about nine years ago. That automatically disqualifies a dealer from getting my business and I make that clear. Negative news about the dealer spreads further and faster than positive news, ya know?
averagejoe: this link might help a little.
I drove by Landmark Chevrolet yesterday and the local CBS affiliate (KHOU) had their news van (ironically it was an Econoline) in the front lot. I missed the nightly local news, but I expect they had more info on the store closing…and I bet they didn’t mention losing GMAC floorplans.
Link to the local news coverage of BH.
Link to the Columbus, Georgia newspaper story: http://www.ledger-enquirer.com/news/story/450130.html
The last time I stepped foot in a BH dealership was late in 01 when we were shopping for our (last) GM car. Dealership in Sugarland, TX.
All of 12 minutes (yes I timed it as I walked out) with the 12 yr old salesdweedle told me all I needed to know.
Evidently not much has changed at the BH circus since then.
I heard the word on the curb is that the Courtsey Francise in Florida shut their doors today too.
It doesn’t hurt my feelings that BH shut down. After numerous fines you think that they would have learned their lesson.
It is dealers like that that give the rest of us a bad name.
It was surreal driving past there this morning with the big yellow gate across the entrance.