Car dealerships fall like flies
Car dealership failures have turned into a torrent since the resumption of business for 2009.
In Auckland alone, five car sales businesses have gone into liquidation or receivership or are close to it.
Used car dealership Falcon Motors of Otahuhu faces liquidation, with UDC Finance taking it to court on January 30 over debts. Falcon is trying to offload 51 cars on its website.
The Storey Motor Company of Mount Wellington hit the skids on January 21 when it was put into liquidation.
Website The Bob Dey Property Report, which monitors company failures, reports ritzy motor dealership Ian McCallion European of Manukau City is in receivership and Mr McCallion's Tower Motor Group Wholesale and Tower Motor Group Rotorua have also failed.
This has not yet been registered with the Companies Office website, and Mr McCallion’s very smart website is still up. The company dealt in luxury European imports.
It is not an uncommon sight to see car yards vacant in many parts of the country as dealers struggle with a downturn in consumer spending and the withdrawal of funders GE Money and General Motors Acceptance Corporation from this market.
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