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Champion Motors files Chapter 11

 
Old 05-12-2009, 12:17 PM
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Nizer
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Default Champion Motors files Chapter 11

http://www.bizjournals.com/southflor...4/daily70.html

Dealers stuffed with cars they can't sell. PAG buried in debt. A new high-priced front-engine model released. Reminds me of the 70's & 80's....
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Old 05-12-2009, 02:58 PM
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they still have that 2007 RS black with red? they wanted 148k for it.....
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Old 05-12-2009, 03:18 PM
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Somebody should write the editor...

The bankruptcy only affects the Porshe and Audi car dealership division of the company...
Ouch.
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Old 05-12-2009, 07:39 PM
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And I cant get anyone to sellme a turbo at a decent price and they go down the tubes
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Old 05-12-2009, 08:27 PM
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^ the reality is champion may not be in "bankruptcy". the legal term "bankruptcy" usually means you got lots of money, but just hidden from creditors.
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Old 05-12-2009, 09:52 PM
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Originally Posted by NoSubEDU View Post
Somebody should write the editor...



Ouch.
Actually I believe that is correct. They sold the 'c' to build up their cash reserves.
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Old 05-13-2009, 12:08 AM
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Originally Posted by tcsracing1 View Post
they still have that 2007 RS black with red? they wanted 148k for it.....
this one:


I have not seen it on ebay or cars.com in a while... I know it was a consignment car and when I was there less than a year ago, they quoted me $175K and then I watched the buy it now price go down and down to the high $140s and have not seen it since...
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Old 05-13-2009, 02:14 AM
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Though I'm not happy to read this, I am not surprised. I mean really people, it is 2009 and Champion's website SUCKED ash bats. Couldn't even view inventory pics and details.

Let this be a lesson for others... sucky website = bankruptcy.
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Old 05-13-2009, 10:35 AM
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Interestingly Champion is a Top performer for monthly Porsche vehicle sales #1 for 2008

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Old 05-13-2009, 10:40 AM
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OldGuy: Can't believe I'm actually saying this but you're living in the wrong part of the country. My dealer (Boston area) is offering $20k off list on Turbos.
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Old 05-13-2009, 04:54 PM
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Originally Posted by JohnnyBahamas View Post
Though I'm not happy to read this, I am not surprised. I mean really people, it is 2009 and Champion's website SUCKED ash bats. Couldn't even view inventory pics and details.

Let this be a lesson for others... sucky website = bankruptcy.
they are my local dealer and I check the website all the time. It's the standard PCNA site format and full details are always available for all new and used cars.
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Old 05-13-2009, 05:04 PM
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That's my dealer also, I hope they will be OK.
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Old 05-13-2009, 05:55 PM
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My guess is Champion's problem is related to financing and not being able to roll over loans. They might have a mortgage on the buildings which they can't refinance, or, they have been asked to pay down several million on the floor plan... I suppose details will come out.

One of the problems all car dealers face is much tightened credit for buyers/leasers. Porsche Finance is a lot fussier about credit scores, even in Canada where no banking crisis exists. Add to that much lower margins and perhaps excess inventory and you have a perfect storm brewing. I suspect this is what Chris was hinting at.
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Old 05-13-2009, 09:23 PM
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Originally Posted by MJones View Post
Interestingly Champion is a Top performer for monthly Porsche vehicle sales #1 for 2008

i bet their other "hedges" failed, margin calls on securities or RE....thus need to hide assets.
i think i am bankrupt. i need bail out from PAG. a garden variety, zero option RS in any color would do. i am not picky.
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Old 05-13-2009, 11:21 PM
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Originally Posted by Bob Rouleau View Post
My guess is Champion's problem is related to financing and not being able to roll over loans. They might have a mortgage on the buildings which they can't refinance, or, they have been asked to pay down several million on the floor plan... I suppose details will come out.

One of the problems all car dealers face is much tightened credit for buyers/leasers. Porsche Finance is a lot fussier about credit scores, even in Canada where no banking crisis exists. Add to that much lower margins and perhaps excess inventory and you have a perfect storm brewing. I suspect this is what Chris was hinting at.
I would second Bob's suspicions.

A big problem, hidden from consumers, is a lack of credit at the wholesale level. Banks and finance companies are being much stingier.

Anyone who has commercial mortgages coming due now is in for a shock. Traditional sources of capital just aren't there anymore and those that are are much more expensive and their terms stink.

Banks and wholesale (floorplan) companies want equity and they want cash. They are squeezing companies. Ask me how I know.
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