... i think they have 47? sites.this is bad bad news .
it is a topsy turvy world we live in.
one minute, main dealers are profiteering incompetent suits who don't deserve our custom nor sympathy.
another minute, it is bad news if they don't make a profit and go under.
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Well put.
- - - - - - - - - - - - - - - - - - - - -
What\'s for you won\'t pass you by
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i am a car dealer in this area , if theyre not getting the figures, how can i stand up and pay my taxes ?
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am a car dealer in this area ..
in reply to the original horse:
i have every sympathy for all traders and customers, who are operating honestly and freely in a free market to earn a good living.
i do not know if dmg have gone under due to overcharging, or undercharging, or bad customer-relations or service, or a downturn in the economy, or just plain bad business management, or incompetent beancounters, or whatever.
the fact remains that some people on this forum hate all main dealers and stereotype them as rip-off merchants; even when they go in to administration. (it is all clever accounting after all, isn't it; no-one ever really goes bankrupt, do they? ).
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With respect to Dixons, this is not a commment on them, rather a more general comment in response to Dalglish:
>>one minute, main dealers are profiteering incompetent suits who don't deserve our custom nor sympathy.
another minute, it is bad news if they don't make a profit and go under.>>
Perhaps it is because they are profiteering incompetent suits who don't deserve our custom that their customers have left them in droves.
Good service and competitive pricing is key to success in almost all businesses.
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"(it is all clever accounting after all, isn't it; no-one ever really goes bankrupt, do they? )."
Just for information:
Administration is a process whereby an insolvency practitioner tries to rescue a company (and prevent bankruptcy, or liquidation in the case of a company), and get it back 'on its feet' either by more effective management or by selling off parts of the business, or both.
Nothing can be guaranteed but we can hope that something viable can emerge - it will naturally depend on how insolvent the business is.
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>>(it is all clever accounting after all, isn't it; no-one ever really goes bankrupt, do they? ).>>
Yeah, sometimes a supplier or two do even the the company in administration is saved because they are at the back of the queue of creditors behind HMRC and most utilities and are offered 10p in the pound 6 months after the full debt was due.
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in reply to avant and cheddar:
:: hint:: irony
it passed you by as it wasn't for you.
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In a lot of areas there is only one dealer for any given make of car and those dealers seem to flourish. Perhaps Dixons were daft enough to have dealerships in areas where there were other dealers selling the same make of car. If I wanted a new car I would just go to the nearest dealer for my chosen make/model. It might be Dixons, but on the other hand there's a fair chances it wouldn't be.
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L\'escargot.
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:: hint:: irony it passed you by as it wasn't for you.
Irony and sarcasm, Jeez you have got it all D ;-)
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>>(it is all clever accounting after all, isn't it; no-one ever really goes bankrupt, do they? ).
:: hint:: irony
Actually that comment used sarcasm, not irony.
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Actually that comment used sarcasm, not irony
baskerville, it passed you by too. ( :: hint:: did i refer to that comment? )
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Still going. See half way down this item.
news.bbc.co.uk/1/hi/business/6917954.stm
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All that fancy glass and comfy showrooms looks nice but costs money.
Obviously has to be paid for somewhere or it has to go!
No sympathy from me! I do however feel sorry for the employees who have probably worked hard for their money and may well now be waiting for the money they are due. Another part of the faceless greed of such organisations imo.
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HJ - Surely the car is your readers property?
If he had paid in full for it, presumably it was identifiable by a chassis number, so had become ascertained goods, so your reader will be able to still collect the vehicles via the administrators???
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A person I know well runs an independent service/repair/MoT workshop for german cars. Often has half a dozen cars for sale in the back yard - usually MoT failures that he has repaired himself and put up for sale. He was commenting the other day when I called in how quiet business was. The cars for sale were just a bit of extra revenue but no one seems to be buying anything and the repair side of the business is quiet as well. He said the last time he could remember things so quiet was back in the early 1990s. I have used him before when I've had VW's, his rates are good and quality of work excellent so I don't believe he's doing anything wrong.
Signs of tougher times ahead, maybe.
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Bought my C-Max from Dixons, in fact I was in there yesterday to buy some coolant to top it up.
I had reasonable service from them, though they did muck me around with a recent warranty repair. I hope someone buys them out and keeps the sites going as Ford dealers, as there aren't any others near me.
A company I worked for went into administration, and we found out the hard way that administrators are very good at charging excessive amounts for every little thing they do, thus ensuring that there's no money left to pay staff or other creditors.
So I do have sympathy for the staff involved.
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Administrators are very good at charging excessive amounts for every little thing they dothus ensuring that there's no money left to pay staff or other creditors.
My son & DiL worked for Co that went belly up 4.5 yrs ago - it just paid out 29p in the £
Interestringly the Acountants (Large CA Firm) charged Accts out at £1200+ / day - admin clerks etc £500+ / day - It took 4.5 yrs and my DiL got £400 for wages of nearly £1200 - then it was taxed!!!
So the Accts made a lot of money &
Gordon B got his share out the employees misery + the Govt were paid in full prior to ordinary creditors.
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Struggling Dixon Motors sacks 800
Dixon Motors - one of the UK's biggest car dealerships - is to close more than half of its network of franchises with the loss of 800 jobs.
The Doncaster-based company went into administration last week, blaming a sharp fall in sales.
Administrator BDO Stoy Hayward has sold 19 of Dixon's 46 franchises to the UK's largest dealership owner, Pendragon.
The deal saves the jobs of 600 of the 1,400 staff in Yorkshire, Lincolnshire, Nottinghamshire and Lancashire.
DIXON DEALERSHIPS TO CLOSE
Head office, Doncaster
Citroen, Birstall
Citroen, Halifax
Citroen, Scunthorpe
Citroen, Wakefield
Ford, Sheffield (Sheaf Gardens)
Ford, Sheffield (Savile St)
Hyundai, Lincoln
Kia, York
Nissan, Birstall
Nissan, Barnsley
Nissan, Grimsby
Nissan, Halifax
Nissan, Huddersfield
Nissan, Lincoln
Nissan, Scunthorpe
Nissan, Sheffield
Nissan, Worksop
Peugeot, Grimsby
Peugeot, Scunthorpe
Renault, Barnsley
Renault, Grimsby
Renault, Huddersfield
Renault, Lincoln
Used Car Centre, Doncaster
Vauxhall, Menston
Vauxhall, Selby
However, 27 of the company's sites, including the head office in Doncaster, are to close with immediate effect.
Dixon's franchises include Citroen, Ford, Peugeot, Nissan, Renault and Vauxhall, selling and leasing cars.
Graham Newton, business restructuring partner at BDO Stoy Hayward, said: "Since our appointment, we have carried out a business review and held discussions with all of the car manufacturers to try to secure the future of all of the dealerships.
"The successful sale of 19 dealerships will protect the future of 600 jobs across the region.
"Regrettably, in the time available, we have been unable to conclude any sales of the remaining dealerships within the group and, as a result, have no alternative but to close 27 sites with immediate effect, resulting in 800 job losses."
The administrators have set up a free helpline to deal with customer inquiries on 0800 612 1340.
Above is the full extract from
news.bbc.co.uk/1/hi/england/south_yorkshire/692762...m
{edited words back in that were previously picked up by the swearfilter - DD}
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Didn't a similarly large Scottish chain fail a couple of years ag - ****** ******* - mostly FIAT I recall. Standing by for comment or correction!
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Their website says they're still around....
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Didn't a similarly large Scottish chain fail a couple of years ag - Arnold Clark - mostly FIAT I recall. Standing by for comment or correction!
AC is doing well and personally the owner is worth £700m +/- as it depends on a number of factors - makes about £40m / yr out of gargaes alone.
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What really annoys me about this is that for the past 10 years or so Dixons have been merrily taking over dealerships all around this area, many of which were previously family run businesses with reasonable customer service. Dixons came in, customer service often went out the window, and to cap it all they've now gone bust leaving some towns without a dealer for various marques, and a few hundred people without jobs.
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What really annoys me about this is that for the past 10 years or so Dixons have been merrily taking over dealerships all around this area many of which were previously family run businesses with reasonable customer service. Dixons came in customer service often went out the window and to cap it all they've now gone bust leaving some towns without a dealer for various marques and a few hundred people without jobs.
I think 3 or so years back RBS decided to have a dabble in the motor trade and took over and threw out the old Dixons board (who did know how to run dealerships and make money). They brought in a consultant to run the show initially (a chap with no motor trade experience - ex-Football Association I believe). A lot of staff had limited experience - very few seasoned motor trade people in the business. In typical British fashion a lot of guys at the top will have done very well out of this little adventure.
Dixons own little property, most of their sites were leased. Very surprised that 'big P' has taken on these sites, given its own current problems and moribund share price. 'Watch this space' I think.
British retail motor industry really is shambolic and is shamed by the performance of other retail sectors. Even by ripping customers left, right and centre they still manage to burn all the money on ridiculous overheads and sink the ship.
On a positive note, the manufacturers will still want representation in the areas with the closed sites, so expect them to roll-out dealer support programmes and new dealerships to appear - they will be looking for techs and other staff with appropriate experience so a lot of the people made redundant will get new jobs.
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I am not suprised by the ones in Huddersfield and Mirfield I would not have taken a Dinky toy to them.
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So did RBS still own DMG right up until administration. I only ask because they only made about 5 billion pounds profit for the first half of the year... Maybe they could have propped up the group a little longer whilst a buyer was found? I see Pendragon has bought some of the franchises already.
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It beggars belief that a decent size UK dealership can?t make money ? yet the UK has high car prices and noteably high servicing pricing.
I know as well as anyone how expensive it is to run a business in the UK, but it?s even worse in places like France & Germany ? are their dealers going bust left, right & centre?
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I know France in particular has a lot of red tape that makes running businesses harder, but I thought the higher land prices in the UK made running a business over here even harder. Those shiny glass showrooms with their pot plants and cups of coffee take up a lot of expensive land!
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The garages I have been into in France are less glamorous, the Renault one I use is basic - no chrome fittings, no silly plastic plants, no vile coffee machine. Just competent mechanics who know how to fix the cars and don't charge an arm and a leg for doing it.
When I called the salesman was on his two hour lunch. Silly me for thinking he might be there at 12:30 ;-)
Vive La France.
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I am told one of the people behind Smith Knight Fay sold out the business (or was it some of it like Lexus/Mazda franchises?) sometime ago. But he had started up a business that builds car showrooms sometime earlier. He's apparently doing rather well at that. He also kept the land on which some of the old dealerships (like the Mazda and Lexus dealers in Stockport) reside and charges quite high ground rent to the new owners RRG. Sounds like he's making money from car selling still without needing to shift any cars!
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In Germany they do shut down but there tends to be more smaller concerns the hourly wage costs are lower than the UK the cars are now dearer than the UK and people tend to have there cars serviced by the book at the main dealers.There is also not so many parts outlets although that is changing a bit and some good repair chains such as ATU are in every city and people just look after their cars much better than the UK.
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It beggars belief that a decent size UK dealership can?t make money ? yet the UK has high car prices and noteably high servicing pricing.
Any well run business will make money - DMG became too big too quickly and had too much captial invested in stock which wasn't moving (except between dealers).
All my dad's local Ford dealerships became Dixons so he had no choice when he needed warranty work. He is a driving instructor so needs his car, the previous franchisee knew this and would turn the car round quickly. Last time he went the dealer had rows of cars with problems waiting to be looked at, but too few staff to deal with them.
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I think 3 or so years back RBS decided to have a dabble in the motor trade and took over and threw out the old Dixons board (who did know how to run dealerships and make money). They brought in a consultant to run the show initially (a chap with no motor trade experience - ex-Football Association I believe).
re aprilia's comment above:
does he have anything to back this up?
as far as i know, rbs got rid of their controling interest in dixons under two years ago
Wednesday, September 14, 2005
RBS relinquishes control of Dixon Motors
www.autowired.co.uk/news/article.aspx?storyid=14662
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re aprilia's comment above: does he have anything to back this up? as far as i know rbs got rid of their controling interest in dixons under two years ago Wednesday September 14 2005 RBS relinquishes control of Dixon Motors www.autowired.co.uk/news/article.aspx?storyid=14662
My post doesn't read to mean that RBS still control Dixons, what I was trying to say is that the company's troubles started when RBS took over and threw out the old board to replace it with largely inexperienced people. They then sold off part of their holding. In the end it was being run by a chap who used to run Ford Finance and another guy who's name escapes me. Anyway, these two guys were basically running the show and made a lot of bad decisions which ran it into the rocks. There was a third director involved but I believe he bailed out at the end of last year.
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The original founder of DMG - Paul Dixon is a local man, If my memory serves me correctly he sold out several years ago. Cant remember who to. The company went belly up and he bought it back for a lot less money. Built up the buisness and took out most of the dealerships. Sold out again to RBS and made a handsome profit. Now there is a man with smart buisness sense and good timing!
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Fullchat
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Built up the buisness and took out most of the dealerships. Sold out again to RBS and made a handsome profit. Now there is a man with smart buisness sense and good timing!
I don't think that's quite the whole story. RBS were into the Co. for about £90m when Dixon family had it and I think when they looked at the books they decided they'd better take over - so Dixons went. Then RBS sold as many assets as possible (e.g. Just Car Clinic body repair chain) to get some money back. Then couple of years back RBS decided they didn't like the motor trade and sold majority to John Haines, which takes us to where we are now. I reckon RBS hold the freehold on some/most of the sites (leased to Dixons) so I guess RBS will come out of it alright. In fact all the senior boys will do OK - no one will walk away with less than £1m, that's the way the business works - you do a great job and perform really well, you're rewarded with lots and lots and lots of money. Do a lousy job and break the business, you're rewarded with just lots of money. This is why the consumer is paying £150 for an oil and filter change.
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I'll bow to your greater knowledge.
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Fullchat
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The original founder of DMG - Paul Dixon is a local man
Yes, he worked for my boss in Hull in the early 70's. Apparently he came into work one day and handed in his notice, saying that he was bored of working in an office and was "going to have a go at buying & selling cars" :-)
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Got you know Aprilla!! His brother Graham wrote the Haynes washing machine repair manual ;-)
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Fullchat
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I give up! Must go and count some peas.
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Fullchat
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I thought that the Dixon Motor Group rang a bell in my head in relation to business going into administration.
Was it not the Dixon Motor Group that owned and then drove the motorcycle chain formerly known as Carnells, then Motorcycle City and finally Riossi before it hit the deck?
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