5 dealership brands now announce unexpected closures this year, shuttering nearly 75 locations, sources report.
Multiple car dealerships across the United States are permanently closing down after the automotive industry was hit by a widespread hacking incident.
The dealerships are shutting their operations for various reasons, including suffering massive financial losses, allegations of mismanagement, as well as intentional decisions to reduce the company’s physical footprint.
Dealerships selling brands like Maserati, Fiat, Ford, and Lincoln cars closed in the past month, reports TheSun.
Buddenhagen’s Ford, a 90-year-old car dealership located in New York, permanently closed its doors in mid-July.
The dealership had previously sold Dodge vehicles until it switched to selling Ford cars in the mid-1970s.
However, the company had recently gone through a tragic event.
After the original owners sold the dealership to a pair of new co-owners, one of the new managers passed away following a leukemia diagnosis.
Hal Roeder, the latest owner of Buddenhagen’s Ford, told the local Sullivan County Democrat newspaper that while there is still work to be done internally, the dealership will officially be closed after Friday.
The Harley Davidson flagship dealership in San Francisco closed down in June after being in business for 114 years.
Former employees of the dealership spoke out against what they believed was mismanagement of the store’s product inventory and supplies.
A mechanic for the now-closed dealer said it barely sold products and was “run like a museum”.
He angrily said the managers were a driving force that ran the dealer “into the ground”.
AutoCanada, a dealership group operating in both the United States and Canada, stated that it is considering closing down its American dealerships after incurring million-dollar losses.
The American car brands experienced significant sales setbacks following the cyberattack on the CDK Global network, which targeted the sales operating systems used by dealerships.
AutoCanada reported losing $33.1 million in the US market during the hack, while it recorded a net income of $2.4 million in Canada.
When pressed about these losses on an earnings call, AutoCanada’s Executive Chair, Paul Antony, said that “spending time and energy to properly turn those stores… I don’t think makes sense given the current conditions,” suggesting the company may shutter its American dealerships.
Lincoln has confirmed to The U.S. Sun that the company is working to close down 50 of its dealership locations by December 2024.
In January, Lincoln announced a buyback program, aiming to purchase franchises from its dealers in order to gradually reduce its overall footprint.
Back in 2021, Lincoln had over 600 dealership lots, which was significantly more than its competitors in the luxury automotive market.
Initially, Lincoln had planned to reduce its dealer count down to 400, but a spokesperson told The U.S. Sun that the company has since reassessed its plans.
Now, Lincoln expects to have a total of 450 dealerships by the end of the current year.
Despite the planned closures, Lincoln is on track to see a rebound in sales in 2023, with the highest sales figures since 2020.
A Lincoln spokesperson stated that the company has made “significant progress” in shuttering locations in 2024 and will “continue to work together with our retailers to make sure we have the right representation in the top luxury markets.”
An automotive dealership located in Alabama that sells iconic Stellantis brands is also shutting down its operations permanently.
Benchmark Automotive, a franchise owner that sold Fiat, Maserati, and Alfa Romeo luxury vehicles, has sold its dealership for $40 million as of May.
Hallmark Group, a franchise owner of Subaru dealerships, purchased the 4.4-acre lot.
City officials said they’re sad to see the luxury cars leave but remain excited about Subaru’s outdoor-focused brand.
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Also Read: An Unexpected Retailer Is Now Closing All Stores in Illinois
Other Economy News Today
A beloved grocery chain now confirms unexpected closures across the Northeast taking place by the end of the year.
Grocery chain Stop & Shop has announced that a total of 32 underperforming locations will shutter in the U.S.
The company said the select stores across the Northeast will be closed before the end of the year.
Stores in New Jersey, Massachusetts, New York, Connecticut, and Rhode Island will close by November 2.
In May, the company announced the coming store closures.
“Stop & Shop has evaluated its overall store portfolio and made the difficult decision to close underperforming stores to create a healthy base for the future growth of our brand,” company president Gordon Reid said, per a July 12 press release.
The company’s president added that the closures were essential “to create a healthy base for the future growth of our brand.”
Fortunately, employees will be offered other positions within the company, according to a press release.
The grocery outlet first opened in 2014 and currently has around 400 stores and 60,000 employees, per Fox affiliate KRLD.
Stop & Shop is owned by Ahold Delhaize which also owns Food Lion, Giant Food, and Hannaford.
Which grocery stores are closing?
In New Jersey, 10 locations will close, while only seven will close in New York.
Rhode Island will see two closures and Massachusetts, the home of the first location, will be closing eight.
Five stores will also be closing in Connecticut.
As other chains such as Walmart and Amazon join the grocery business, it has pushed traditional grocery stores out of view, reports The-Sun.
Stop & Shop hopes the closure of underperforming stores will create “future growth” for the company.
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