A $700,000 Italian sports car that originally was brought into the United States in 2001 for maintenance was seized today in Orange County as part of a federal investigation into violations of environmental and transportation safety regulations.
Agents with the U.S. Immigration and Customs Enforcement found the 1994 Cizeta V16 sports car at the Family Classic Cars showroom in San Juan Capistrano, eight years after an agreement specified that the car would be sent back to where it came following repairs.
The car is one of fewer than a dozen such vehicles produced by automotive engineer Claudio Zampoli in a joint venture with music composer Giorgio Moroder, said Immigration and Customs Enforcement spokeswoman Virginia Kice.
The government alleges that Zampoli and his agent violated U.S. customs and environmental laws, Kice said They allegedly claimed the vehicle was worth $125,000, even though the car originally sold new for approximately $600,000.
In addition, Zampoli and his representative failed to export the vehicle within a reasonable period of time, according to the allegation.
“Make no mistake, the illegal importation of gray market vehicles like this is not just a technical violation,” said Miguel Unzueta, special agent in charge for the customs agency's Office of Investigations in Los Angeles. “Cars that don’t meet U.S. standards are outlawed for a reason. These vehicles can pose a real threat to public health and safety.”
The car was loaded onto a flatbed truck and taken to a secure government storage facility, Kice said.
The Cizeta will remain in storage while authorities seek to have it forfeited to the federal government. If the vehicle is forfeited, it will be offered for sale at a public auction. Since the vehicle does not meet U.S. environmental and safety standards, any domestic buyer would have to export the car following its purchase.
Source
Thursday, January 28, 2010
Friday, January 15, 2010
Car buyer alleges fraud in Kruse-run phone sale
A Virginia man has sued the Auburn Cord Duesenberg Museum and an embattled board member over the September sale of a multimillion-dollar 1930 Duesenberg automobile.
James Scott alleges in the federal lawsuit that museum board member Timothy S. Durham and others who had a financial interest in the sale of the car drove up the price during bidding and then split the profits of the sale. Scott, who filed the suit last week in U.S. District Court in Fort Wayne, won the car with a bid of $2.9 million
Durham is an Indianapolis financial adviser whose offices were raided by FBI agents two days before Thanksgiving.
Also named as defendants in the lawsuit are Missouri collector car dealer Mark Hyman; Donald D. Lyons, of Dowagiac, Mich.; Kruse International and the Auburn museum.
Before the Sept. 3 auction, Scott visited the museum and previewed the 1930 Duesenberg put up for consignment by a group of sellers: Durham, Hyman, Lyons and the Lyons Family Trust. Scott participated in the auction by telephone.
The auctioneer for the museum’s auction used Kruse’s license to conduct the auction, Scott’s attorney said.
An employee of the museum stayed on the telephone with Scott and transmitted bids to and from him.
Hyman opened the bidding with an offer of about $500,000, according to court documents.
As the auction moved past $850,000, the remaining bids were between Scott and Hyman. Scott alleges that Hyman conferred about bids often with Lyons, who was seated next to him.
Scott said no one disclosed that the group of sellers reserved the right to bid or that they were in fact offering bids on the car. That meant that the price of the car was artificially inflated by those who had a financial interest in getting more money for the car, according to court documents.
After Scott transferred more than $3.1 million to the museum’s bank account a few days later, the money was divided up and distributed to Hyman, Lyons and the museum, with Durham’s knowledge.
Scott has yet to receive the title for the vehicle, according to court documents.
In his civil lawsuit alleging violation of Indiana law, fraud, criminal conversion and negligence, Scott is seeking $3.1 million, interest and the right to retain the automobile, according to court documents.
Source
James Scott alleges in the federal lawsuit that museum board member Timothy S. Durham and others who had a financial interest in the sale of the car drove up the price during bidding and then split the profits of the sale. Scott, who filed the suit last week in U.S. District Court in Fort Wayne, won the car with a bid of $2.9 million
Durham is an Indianapolis financial adviser whose offices were raided by FBI agents two days before Thanksgiving.
Also named as defendants in the lawsuit are Missouri collector car dealer Mark Hyman; Donald D. Lyons, of Dowagiac, Mich.; Kruse International and the Auburn museum.
Before the Sept. 3 auction, Scott visited the museum and previewed the 1930 Duesenberg put up for consignment by a group of sellers: Durham, Hyman, Lyons and the Lyons Family Trust. Scott participated in the auction by telephone.
The auctioneer for the museum’s auction used Kruse’s license to conduct the auction, Scott’s attorney said.
An employee of the museum stayed on the telephone with Scott and transmitted bids to and from him.
Hyman opened the bidding with an offer of about $500,000, according to court documents.
As the auction moved past $850,000, the remaining bids were between Scott and Hyman. Scott alleges that Hyman conferred about bids often with Lyons, who was seated next to him.
Scott said no one disclosed that the group of sellers reserved the right to bid or that they were in fact offering bids on the car. That meant that the price of the car was artificially inflated by those who had a financial interest in getting more money for the car, according to court documents.
After Scott transferred more than $3.1 million to the museum’s bank account a few days later, the money was divided up and distributed to Hyman, Lyons and the museum, with Durham’s knowledge.
Scott has yet to receive the title for the vehicle, according to court documents.
In his civil lawsuit alleging violation of Indiana law, fraud, criminal conversion and negligence, Scott is seeking $3.1 million, interest and the right to retain the automobile, according to court documents.
Source
Monday, December 28, 2009
Auction raises scholarship money
The election in the Commonwealth is over. It seems that at least for another year the election process is over in the Virginia, or is it? Virginia, like the other 49 states, will choose her U.S. Congressional representatives next November in 2010. It seems that the off-year gubernatorial elections are a tremendous expense for the Commonwealth, but when held in an off year, the races may not necessarily reflect the national trends of the presidential elections. For some reason, that’s the way they like it.
Virginia could also call a primary election next May. If Tuesday’s race is any indication of a trend in the Commonwealth, things might change. Cap and trade, windmills, national health care, the wars, the economy, bail-out fallout, and other issues will weigh into the next election picture. McDowell Assessor Dennis Altizer reported that all is quiet in the political scene around the McDowell County Courthouse. “Not much going on right now, but the kids did have a good time on Halloween,” he said. Altizer noted that about 40 kids decked out in full costume knocked on his door at home last Saturday evening demanding, “trick or treat.”
Parents accompanied the youngsters on their mission to secure as many treats as possible. No damage was reported in the community and all the children seemed to have a great time, according to Altizer. There may have been a rocket boy or two in the crowd.
Virginia could also call a primary election next May. If Tuesday’s race is any indication of a trend in the Commonwealth, things might change. Cap and trade, windmills, national health care, the wars, the economy, bail-out fallout, and other issues will weigh into the next election picture. McDowell Assessor Dennis Altizer reported that all is quiet in the political scene around the McDowell County Courthouse. “Not much going on right now, but the kids did have a good time on Halloween,” he said. Altizer noted that about 40 kids decked out in full costume knocked on his door at home last Saturday evening demanding, “trick or treat.”
Parents accompanied the youngsters on their mission to secure as many treats as possible. No damage was reported in the community and all the children seemed to have a great time, according to Altizer. There may have been a rocket boy or two in the crowd.
Tuesday, December 15, 2009
Against the tide: Auctions popular way to liquidate
Tim Hash is a ringleader beneath a big, white tent. The auctioneer entertains the crowd with his voice while coaxing them to open their wallets.
Business doubled this year for Hash's company, Mountain City Realty & Auction LLC.
"Because of the recession, our seller clients have found that it's a good time to sell real estate at auction," said Hash, who doubles as an associate broker with MKB Realtors. "Once upon a time -- three years ago -- we as Realtors didn't always even get a sign in the yard before people would be wanting to buy it. But things have changed drastically."
Now, sellers are looking to get real estate off the market quickly and pocket the cash rather than wait out the recession. Live auctions provide the solution: sell a house and liquidate a lifetime's worth of assets in a few hours.
Residential real estate alone had $17.1 billion gross sales nationally last year, increasing every year since 2003, when gross sales were $11.5 billion, according to the National Auctioneers Association. Live auctions sold goods valued at $268.4 billion in 2008, a 37 percent increase from six years earlier, the association reported.
"Virginia is very auction-savvy and very auction-minded," said John Nicholls, president of Virginia Auctioneers Association and one of the rock stars of the auction world. He's won the International Auctioneers Championship and "cries" for Barrett-Jackson Auction Co., the king of collector car auctions. "People are accustomed to doing business this way and aren't scared of the process."
Rural areas and Southern states typically feel strong historical ties to auctions, making the counties around Roanoke ideal for Hash. Around here, the auctioneers sometimes call each other "Colonel," to mimic language used in Civil War auctions of captured spoils, Hash said.
Video: Auctioneer's business goes against the economic tide
Video by Jeanna Duerscherl | The Roanoke Times
Related
Interactive map
Check out the entire "Against the Tide" series
Previous stories
Roanoke Valley ad agencies: Surviving no spin
Hot niche market: Vinton fire apparatus company stays in the black
Rug man cleans up in tough economy
Despite the recession, Brambleton Auto on the upshift
Hash and his partner auctioneer, Gary Dogan, called for six hours, with no breaks, on Oct. 17 at the Lois Dowdy estate sale. A sale similar to Dowdy's, with more than 500 items across the block -- almost everything in the house except the house itself -- brings in about $25,000 in revenue. Hash declined to name sales numbers from this particular auction. Mountain City's profits come from an array of services offered, from marketing the sale to setting up and taking out the trash.
The company holds about 15 auctions a year, from spring to fall. One-third of those sell real estate. If a seller prefers not to auction his house, Hash will list it through MKB.
Beneath the tent in Dowdy's Mount Pleasant back yard, Ed Swedenborg, 68, a Hash auction regular, kept his No. 103 bid card in his shirt pocket. He planned to drop $200 to $300, his usual amount, on mostly tools and gifts for his grandchildren that morning.
Swedenborg's spoils one hour into the proceedings: an orange cooler ($10), a box of flashlights ($2) and some bedsheets. He had driven from his home in Buchanan with a Sears catalog in his car, so he could get an early idea of prices.
"They're pleasant people to work with," he said about why he follows Mountain City. "They move it quickly and don't draw it out."
About 85 bidders turned out for the Dowdy sale, many coming to bid on a 1996 Toyota Camry ($3,000), furniture or a collection of seven guns.
"They tend to go for more than they're worth," said Aaron Shutts, 36, of Troutville as his 5-year-old son, Brogan, peeked at the firearm-filled tabletop. "But auctions are exciting, period."
Carl Powers, 64, of Stewartsville coolly won two pistols with a flash of his bidder number from his back pocket. The .45-caliber Kimber ($750) and the .45-caliber Colt auto pistol ($710) were good buys, Powers said, that were worth more than $2,000 total.
Hash has learned Powers' and Swedenborg's buying habits, and he works to make his auctions fun for newcomers and regulars alike, he said.
Hash, 51, first attended auctions in Roanoke County with his grandfather, a farmer, to buy cattle. To hold close the memories, he went to Mendenhall School of Auctioneering in North Carolina 25 years ago.
Hash's speaking voice is warm, quiet and metered, distinct from the rat-a-tat phrasing of his professional call. He stumbled to name the words he uses to string together prices.
"Some of the things I don't know, so let me just sell something for you."
He picked up a cellphone, the only item sitting on the long conference table at the MKB office on Electric Road.
"Would you give a hundred dollars here?" he asked the imaginary crowd across the table. After 20 seconds of flipping his voice through the phrases, he settled the price at $65.
Source
Business doubled this year for Hash's company, Mountain City Realty & Auction LLC.
"Because of the recession, our seller clients have found that it's a good time to sell real estate at auction," said Hash, who doubles as an associate broker with MKB Realtors. "Once upon a time -- three years ago -- we as Realtors didn't always even get a sign in the yard before people would be wanting to buy it. But things have changed drastically."
Now, sellers are looking to get real estate off the market quickly and pocket the cash rather than wait out the recession. Live auctions provide the solution: sell a house and liquidate a lifetime's worth of assets in a few hours.
Residential real estate alone had $17.1 billion gross sales nationally last year, increasing every year since 2003, when gross sales were $11.5 billion, according to the National Auctioneers Association. Live auctions sold goods valued at $268.4 billion in 2008, a 37 percent increase from six years earlier, the association reported.
"Virginia is very auction-savvy and very auction-minded," said John Nicholls, president of Virginia Auctioneers Association and one of the rock stars of the auction world. He's won the International Auctioneers Championship and "cries" for Barrett-Jackson Auction Co., the king of collector car auctions. "People are accustomed to doing business this way and aren't scared of the process."
Rural areas and Southern states typically feel strong historical ties to auctions, making the counties around Roanoke ideal for Hash. Around here, the auctioneers sometimes call each other "Colonel," to mimic language used in Civil War auctions of captured spoils, Hash said.
Video: Auctioneer's business goes against the economic tide
Video by Jeanna Duerscherl | The Roanoke Times
Related
Interactive map
Check out the entire "Against the Tide" series
Previous stories
Roanoke Valley ad agencies: Surviving no spin
Hot niche market: Vinton fire apparatus company stays in the black
Rug man cleans up in tough economy
Despite the recession, Brambleton Auto on the upshift
Hash and his partner auctioneer, Gary Dogan, called for six hours, with no breaks, on Oct. 17 at the Lois Dowdy estate sale. A sale similar to Dowdy's, with more than 500 items across the block -- almost everything in the house except the house itself -- brings in about $25,000 in revenue. Hash declined to name sales numbers from this particular auction. Mountain City's profits come from an array of services offered, from marketing the sale to setting up and taking out the trash.
The company holds about 15 auctions a year, from spring to fall. One-third of those sell real estate. If a seller prefers not to auction his house, Hash will list it through MKB.
Beneath the tent in Dowdy's Mount Pleasant back yard, Ed Swedenborg, 68, a Hash auction regular, kept his No. 103 bid card in his shirt pocket. He planned to drop $200 to $300, his usual amount, on mostly tools and gifts for his grandchildren that morning.
Swedenborg's spoils one hour into the proceedings: an orange cooler ($10), a box of flashlights ($2) and some bedsheets. He had driven from his home in Buchanan with a Sears catalog in his car, so he could get an early idea of prices.
"They're pleasant people to work with," he said about why he follows Mountain City. "They move it quickly and don't draw it out."
About 85 bidders turned out for the Dowdy sale, many coming to bid on a 1996 Toyota Camry ($3,000), furniture or a collection of seven guns.
"They tend to go for more than they're worth," said Aaron Shutts, 36, of Troutville as his 5-year-old son, Brogan, peeked at the firearm-filled tabletop. "But auctions are exciting, period."
Carl Powers, 64, of Stewartsville coolly won two pistols with a flash of his bidder number from his back pocket. The .45-caliber Kimber ($750) and the .45-caliber Colt auto pistol ($710) were good buys, Powers said, that were worth more than $2,000 total.
Hash has learned Powers' and Swedenborg's buying habits, and he works to make his auctions fun for newcomers and regulars alike, he said.
Hash, 51, first attended auctions in Roanoke County with his grandfather, a farmer, to buy cattle. To hold close the memories, he went to Mendenhall School of Auctioneering in North Carolina 25 years ago.
Hash's speaking voice is warm, quiet and metered, distinct from the rat-a-tat phrasing of his professional call. He stumbled to name the words he uses to string together prices.
"Some of the things I don't know, so let me just sell something for you."
He picked up a cellphone, the only item sitting on the long conference table at the MKB office on Electric Road.
"Would you give a hundred dollars here?" he asked the imaginary crowd across the table. After 20 seconds of flipping his voice through the phrases, he settled the price at $65.
Source
Saturday, November 28, 2009
Trailing car deal crooks to court
CRIMINAL prosecutions are being prepared against 82 dodgy car salesmen who sold potential death traps to unsuspecting buyers - mostly in western Sydney.
In the past two years these alleged shonks offloaded 1240 dodgy vehicles. Many were "cut-and-shuts" - cars on which the faults were concealed with cosmetic repairs.
Some odometers had been turned back and others were stolen vehicles that had been "rebirthed". None had come with a warranty.
The prosecutions stem from a Department of Fair Trading blitz on eight car auction houses in western Sydney. Records were scrutinised in search of people who had bought a lot of vehicles.
Under the Motor Dealers Act, anyone who sells, or offers to sell, more than four vehicles in 12 months must have a licence.
But Fair Trading Minister Virginia Judge said: "Some of the unlicensed operators identified by Operation Winner had purchased up to 55 vehicles in a year and sold up to 52 over a two-year period."
Motor Traders Association of NSW chief James McCall said cars sold by unlicensed dealers were often "potential death traps".
He said many of the vehicles were previously "repairable write-offs" purchased at car auctions.
"The RWOs are then mended in a backyard in a way that is incredibly dangerous and they are going back on the road in droves," he said.
More than 13,000 RWOs are put forward for re-registration annually, according to the RTA.
Mr McCall pointed to German crash testing which compared "cut-and-shuts" to properly repaired vehicles. In the cut-and-shuts, crash-test dummies were garotted.
"It's the difference between being injured and killed," Mr McCall said.
He said RWOs should be banned. This was under consideration by the NSW Government as part of an RTA discussion paper.
Insurers oppose a ban - they receive the proceeds from the sale of RWOs. While the Insurance Council of Australia would not comment yesterday, it has said selling RWOs reduced insurance premiums and that a better solution would be more rigorous safety checks on RWOs.
"The RTA discussion paper is calling for public and industry comment on ways the Government can make it harder for criminal syndicates to reconstruct written-off wrecks with stolen parts and sell them on," Ms Judge said.
"This practice has serious repercussions for consumers who may be driving an unsafe vehicle."
More than $100,000 of fines have already been imposed on 21 people as a result of Operation Winner.
Source
In the past two years these alleged shonks offloaded 1240 dodgy vehicles. Many were "cut-and-shuts" - cars on which the faults were concealed with cosmetic repairs.
Some odometers had been turned back and others were stolen vehicles that had been "rebirthed". None had come with a warranty.
The prosecutions stem from a Department of Fair Trading blitz on eight car auction houses in western Sydney. Records were scrutinised in search of people who had bought a lot of vehicles.
Under the Motor Dealers Act, anyone who sells, or offers to sell, more than four vehicles in 12 months must have a licence.
But Fair Trading Minister Virginia Judge said: "Some of the unlicensed operators identified by Operation Winner had purchased up to 55 vehicles in a year and sold up to 52 over a two-year period."
Motor Traders Association of NSW chief James McCall said cars sold by unlicensed dealers were often "potential death traps".
He said many of the vehicles were previously "repairable write-offs" purchased at car auctions.
"The RWOs are then mended in a backyard in a way that is incredibly dangerous and they are going back on the road in droves," he said.
More than 13,000 RWOs are put forward for re-registration annually, according to the RTA.
Mr McCall pointed to German crash testing which compared "cut-and-shuts" to properly repaired vehicles. In the cut-and-shuts, crash-test dummies were garotted.
"It's the difference between being injured and killed," Mr McCall said.
He said RWOs should be banned. This was under consideration by the NSW Government as part of an RTA discussion paper.
Insurers oppose a ban - they receive the proceeds from the sale of RWOs. While the Insurance Council of Australia would not comment yesterday, it has said selling RWOs reduced insurance premiums and that a better solution would be more rigorous safety checks on RWOs.
"The RTA discussion paper is calling for public and industry comment on ways the Government can make it harder for criminal syndicates to reconstruct written-off wrecks with stolen parts and sell them on," Ms Judge said.
"This practice has serious repercussions for consumers who may be driving an unsafe vehicle."
More than $100,000 of fines have already been imposed on 21 people as a result of Operation Winner.
Source
Sunday, November 15, 2009
Treasuries Fall as Five-Year Notes Draw Higher Yield at Auction
Treasuries fell as the government’s record $40 billion sale of five-year notes drew weaker-than- forecast demand before the conclusion of the Federal Reserve’s two-day policy meeting.
The notes drew a yield of 2.47 percent, compared with a forecast of 2.4625 percent in a Bloomberg News survey of four of the Fed’s primary dealers. The bid-to-cover ratio, which gauges demand by comparing total bids with the amount of securities offered, was 2.40, compared with 2.51 at the previous sale in August and an average of 2.23 at the past 10 auctions.
“The auction was surprisingly weak given the performance of the two-year note and the price action heading in,” said Lawrence Dyer, an interest-rate strategist in New York at HSBC Securities USA Inc., one of the 18 primary dealers required to bid at Treasury auctions. “The market seemed to be saying, why should I pay a premium when there will be more to buy next month?”
The existing five-year note yield rose three basis points to 2.45 percent at 1:26 p.m. in New York, according to BGCantor Market Data. The 2.375 percent security maturing in August 2014 fell 1/8, or $1.25 per $1,000 face amount, to 22 21/32. The 10- year note yield rose three basis points to 3.49 percent.
Indirect bidders, a class of investors that includes foreign central banks, bought 44.8 percent of the notes, compared with 56.4 percent at the August auction. The average at the past 10 sales is 40.6 percent.
Fed Meeting
“Indirects will continue to be strong and sevens are in that mix for sure so I would expect people to show up for the auction tomorrow,” said William O’Donnell, U.S. government bond strategist at primary dealer RBS Securities Inc. in Stamford, Connecticut.
The amount of five-year notes offered by the Treasury has surged from $14 billion at the start of 2008 to $40 billion this month as President Barack Obama borrows unprecedented amounts to revive the economy and service record deficits.
The Treasury is scheduled to sell $29 billion of seven-year debt tomorrow. Over the past three months, returns totaled 0.9 percent for two-year notes, 2.2 percent for five-year debt and 2.8 percent for 10-year Treasuries, according to indexes compiled by Merrill Lynch & Co.
Fed officials may signal that the U.S. economy has started to recover while maintaining their pledge to keep the benchmark interest rate near a record low for an “extended period.”
Source
The notes drew a yield of 2.47 percent, compared with a forecast of 2.4625 percent in a Bloomberg News survey of four of the Fed’s primary dealers. The bid-to-cover ratio, which gauges demand by comparing total bids with the amount of securities offered, was 2.40, compared with 2.51 at the previous sale in August and an average of 2.23 at the past 10 auctions.
“The auction was surprisingly weak given the performance of the two-year note and the price action heading in,” said Lawrence Dyer, an interest-rate strategist in New York at HSBC Securities USA Inc., one of the 18 primary dealers required to bid at Treasury auctions. “The market seemed to be saying, why should I pay a premium when there will be more to buy next month?”
The existing five-year note yield rose three basis points to 2.45 percent at 1:26 p.m. in New York, according to BGCantor Market Data. The 2.375 percent security maturing in August 2014 fell 1/8, or $1.25 per $1,000 face amount, to 22 21/32. The 10- year note yield rose three basis points to 3.49 percent.
Indirect bidders, a class of investors that includes foreign central banks, bought 44.8 percent of the notes, compared with 56.4 percent at the August auction. The average at the past 10 sales is 40.6 percent.
Fed Meeting
“Indirects will continue to be strong and sevens are in that mix for sure so I would expect people to show up for the auction tomorrow,” said William O’Donnell, U.S. government bond strategist at primary dealer RBS Securities Inc. in Stamford, Connecticut.
The amount of five-year notes offered by the Treasury has surged from $14 billion at the start of 2008 to $40 billion this month as President Barack Obama borrows unprecedented amounts to revive the economy and service record deficits.
The Treasury is scheduled to sell $29 billion of seven-year debt tomorrow. Over the past three months, returns totaled 0.9 percent for two-year notes, 2.2 percent for five-year debt and 2.8 percent for 10-year Treasuries, according to indexes compiled by Merrill Lynch & Co.
Fed officials may signal that the U.S. economy has started to recover while maintaining their pledge to keep the benchmark interest rate near a record low for an “extended period.”
Source
Wednesday, October 28, 2009
End of the road for car dealership
After 75 years in business, the Lawrence family’s last remaining dealership has closed.
“To make a long story short, we made a business decision that we felt better closing the doors and selling the property,” said Skip Lawrence, who co-owned the dealership at 5400 S. Laburnum Ave. in Henrico with his brother Mark.
The dealership, along with 788 others across the country, received a letter in June that the bankrupt automaker was abruptly terminating their franchise agreement.
The Lawrences, who are third-generation operators of the company, quickly re-branded the Airport Chrysler Jeep dealership to be the Airport Motor Company and began selling used cars.
That experiment ended a couple of weeks ago.
“This facility was built to support a service and parts department, and it just wasn’t able to support enough sales to pay for the property,” said Skip Lawrence, adding that they were unable to generate enough revenue to cover taxes and overhead.
Now the property is up for sale for $5 million. Lawrence said they have had a number of interested parties come and look, including auto dealers and other users as well. The county has assessed the property at $3.7 million. It is at the corner of Laburnum and Eubank Road.
All of the vehicles and parts have been sold at auction.
The Lawrence family once operated another Dodge dealership on West Broad Street that was sold late last year, before the forced closures.
The company’s dealership near the airport was one of two in the area that were dropped by Chrysler. Dodge also ordered Pearson Dodge on Midlothian Turnpike to close. Pearson Dodge is selling used cars at that location under the name Automax. Pearson was allowed to retain its other Chrysler dealership on West Broad Street.
Lawrence said the automaker’s handling of the bankruptcy was a disaster.
A week before the letters were sent out, Lawrence said, he was on a conference call with Chrysler Vice Chairman Jim Press urging dealers to buy more cars.
“Of course we did, hoping we were going forward,” said Lawrence.
Mike Allen, director of public affairs for the Virginia Auto Dealers Association, said about half of the state dealers who were axed by Chrysler have given it a go in the used car business, with mixed success.
“It’s a tough time to be in the used car market,” said Allen, adding that people who typically buy used cars are fixing up their older cars and keeping them on the road longer.
A handful of used car lots along West Broad Street and Route 1 have closed within the past year and now sit vacant.
And a used car operation misses out on performing warranty service, sometimes the only profitable piece of a dealership.
“Most dealers over the past couple of years have netted a loss on vehicle sales. Once they pay the overhead that are related to a sale, they actually come out behind,” said Allen.
As for the Lawrence family, an era in the car business has come to an end. But that ending comes a chance to start something new.
“I’m going to catch my breath for a couple of weeks and decide what I am going to do going forward,” said Lawrence. “One thing I’m pretty sure of: It won’t involve the car business.”
Source
“To make a long story short, we made a business decision that we felt better closing the doors and selling the property,” said Skip Lawrence, who co-owned the dealership at 5400 S. Laburnum Ave. in Henrico with his brother Mark.
The dealership, along with 788 others across the country, received a letter in June that the bankrupt automaker was abruptly terminating their franchise agreement.
The Lawrences, who are third-generation operators of the company, quickly re-branded the Airport Chrysler Jeep dealership to be the Airport Motor Company and began selling used cars.
That experiment ended a couple of weeks ago.
“This facility was built to support a service and parts department, and it just wasn’t able to support enough sales to pay for the property,” said Skip Lawrence, adding that they were unable to generate enough revenue to cover taxes and overhead.
Now the property is up for sale for $5 million. Lawrence said they have had a number of interested parties come and look, including auto dealers and other users as well. The county has assessed the property at $3.7 million. It is at the corner of Laburnum and Eubank Road.
All of the vehicles and parts have been sold at auction.
The Lawrence family once operated another Dodge dealership on West Broad Street that was sold late last year, before the forced closures.
The company’s dealership near the airport was one of two in the area that were dropped by Chrysler. Dodge also ordered Pearson Dodge on Midlothian Turnpike to close. Pearson Dodge is selling used cars at that location under the name Automax. Pearson was allowed to retain its other Chrysler dealership on West Broad Street.
Lawrence said the automaker’s handling of the bankruptcy was a disaster.
A week before the letters were sent out, Lawrence said, he was on a conference call with Chrysler Vice Chairman Jim Press urging dealers to buy more cars.
“Of course we did, hoping we were going forward,” said Lawrence.
Mike Allen, director of public affairs for the Virginia Auto Dealers Association, said about half of the state dealers who were axed by Chrysler have given it a go in the used car business, with mixed success.
“It’s a tough time to be in the used car market,” said Allen, adding that people who typically buy used cars are fixing up their older cars and keeping them on the road longer.
A handful of used car lots along West Broad Street and Route 1 have closed within the past year and now sit vacant.
And a used car operation misses out on performing warranty service, sometimes the only profitable piece of a dealership.
“Most dealers over the past couple of years have netted a loss on vehicle sales. Once they pay the overhead that are related to a sale, they actually come out behind,” said Allen.
As for the Lawrence family, an era in the car business has come to an end. But that ending comes a chance to start something new.
“I’m going to catch my breath for a couple of weeks and decide what I am going to do going forward,” said Lawrence. “One thing I’m pretty sure of: It won’t involve the car business.”
Source
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