Recession or not, a Texas-based car dealership chain is moving ahead with plans to buy the closed Bill Heard Chevrolet in Plant City.
Classic Automotive Group of Grapevine, Texas, is buying the Bill Heard building, land and Chevy franchise for $15 million out of bankruptcy court. The Plant City dealership shut suddenly in September and its parent, Bill Heard Enterprises of Columbus, Ga., filed for bankruptcy protection.
Classic Automotive hopes to rename the business and reopen it as a Chevy dealership by early 2009, said Steve Hurley, a partner in the new ownership group. For now, the partners don't have a name for the dealership. Hurley admits it's a rough time for all car dealers, especially those selling General Motors brands.
But he insisted that the industry will rebound.
"You just don't have an opportunity to make a purchase like this in normal times," said Hurley, adding that the $15 million price was low historically. "It's our purchase not a real estate play by any means."
Classic Automotive Group is owned primarily by Tom Durant, a longtime car dealer from the Fort Worth area. His company owns six dealerships in Texas that sell primarily General Motors and Ford brands.
The new ownership runs into some severe headwinds. Art Spinella, a market researcher who studies the car industry for CNW Marketing Research of Oregon, said the retail car business was down 47 percent nationwide in October. Sales to governments and businesses have held up somewhat, he said.
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