A FORD dealership has filed for bankruptcy protection after a recall forced the automaker to stop selling many vehicles.
Despite the bankruptcy, the dealership owner insisted that the shop would keep on pushing.
A Ford dealership in California has filed for bankruptcy[/caption]
After a Ford recall, the dealership was forced to stop selling several vehicles, which impacted sales[/caption]
The dealership, located in Napa, California, has filed for Chapter 11 bankruptcy, which allows the company to reorganize its finances and debt structure, thereby continuing to operate rather than liquidating its assets.
The application was filed on July 24, as reported by the Napa Valley Register.
The owner, Kevin Massie, and his representative, Steve Hayworth, told the Napa Valley Register that the decision was due to many different issues.
They said the filing was a result of “mild” political unrest in the country, lingering effects of the pandemic, supply chain problems, and recent tariff changes.
Despite this, Massie said “it’s business as usual,” at the dealership.
“It’s become necessary for us to reorganize the business and potentially look at a number of exit strategies, either to refinance the business or potentially sell the business,” Massie said.
“We’re looking at all options right now,” he added.
Massie purchased the dealership over 20 years ago, and it has grown to employ nearly 50 employees.
A recall issued by Ford Motor Co. about faulty rear backup cameras forced the dealership to take certain vehicles off the market.
Regardless of the setbacks, Massie is determined to drum up sales as soon as possible.
“As soon as we get politically and economically settled down a bit, the (auto) market is going to be very robust moving forward because of the pent-up demand,” he said.
One person, who was aware of the dealership’s bankruptcy, said they visited the dealership in the past and were not thrilled by the service.
“The service is God awful, they damaged my Bronco when I brought it in for warranty service and were nonchalant about it when I complained,” commented Eric Nilsson II.
“Then I had to jump through hoops for them to make it right which took weeks. I refuse to take my vehicle there and go out of my way to Fairfield to have my services done after my experience with Napa Ford. It’s no wonder they’re in bankruptcy protection, they’re incompetent.”
What to do if a dealership closes
If you recently bought a car or motorcycle from a dealership that suddently closed, you may feel anxious about how that affects you.
When you finance a new car or motorcycle or need warranty repairs done at an authorized dealership, a sudden closure can make some people think they’re out of options or worry their car will be repossessed.
If you’re in a situation that sounds like that, here are a few things you can do after receiving an official notice:
- Notify the bank hosting your loan of the closure to make them aware. If the financing is done through the dealership itself, it’s important to contact the dealership or your salesperson to ask how to keep up your payments. Many dealerships will send the lien (the title and registration that will only be released to the buyer after the debt is paid) to a financial institution to keep.
- If the dealership cannot be contacted through traditional means, most states allow drivers to apply for the title and registration through the DMV.
- If you leased a car from a dealership that went out of business, instructions should be sent as to which dealership to bring your vehicle to when the lease expires. If not, contact the dealership.
- A factory warranty through the manufacturer will be honored at any other authorized dealership. However, an extended warranty through the dealership may not be honored at other repair shops, so it’s important to seek that information from the dealership as soon as possible.
Source: Consumer Law Group
Another driver echoed the sentiment, saying the customer service at the dealership was subpar.
“Their general manager is the worst person I have ever met in my life,” wrote Shannon Keith.
Some social media users were speculating about what could replace the Ford dealership after it closes for good.
“Let me guess another hotel after that,” said one person.
“Nah, a Super Starbucks,” joked another.
Despite some negative feedback, Massie addressed his loyal customers in the area, asking them to continue showing their support.
“We appreciate all the folks in Napa” he said. “Please support your local Ford dealership. We’re still here.”
