BY ROB SABO
Family-owned Bosch Motors in Winne-mucca was able to weather several economic downturns in its 28-year history, but not this one.
The company has filed a petition in U.S. Bankruptcy Court in Reno for Chapter 11 reorganization and dropped its franchise affiliation with General Motors.
Lee Bosch says the company founded by Herb Bosch, his grandfather, and Harky Bosch, his father, couldn't overcome a severely weakened credit market that drastically impacted the company's ability to finance potential customers.
Bosch says the dealership is just one of more than 400 nationwide to terminate franchises with GM due to an inability to get customers financed through GMAC, the lending arm of General Motors. GMAC pulled back from financing vehicle purchases and leases as the credit crunch tightened.
"It's the only choice I had," says the 46-year-old Bosch, who has worked at the dealership for 24 years. "We couldn't get anybody financed. We couldn't get deals bought or get anybody qualified. We were turning down three to four deals a day because GMAC wouldn't finance them."
Bosch says that in addition to credit restrictions that stifled sales of new cars the dealership was off 35 percent from the same period a year ago factory-sponsored discounts, such as employee pricing for everyone, led to a significant decline in profit margins.
"Trying to reduce cost by 35 percent on new inventory there are not many dealers who can cover that out of their pockets, and we are not getting any wiggle room," Bosch says. "We are a small, family-owned business, and the reductions they asked for were in the millions. We don't carry that kind of cash, and credit has tightened up everywhere."
Bosch laid off half of the company's 36-person workforce, keeping all his mechanics and tow truck drivers and other employees based on seniority. Because the family owns the Bosch Motors lot and building, it now will focus on used car sales it has about 150 vehicles as well as offering service, parts and accessories, towing and salvage. The lot also houses a quick lube and car wash.
"We are just trying to get lean and get through this recession," Bosch says. "I am pinched, and I am not alone. We are disappointed, but we have got to go with the times and do the best we can. We will fight it to the end."
Bosch says his fleet of 150 new vehicles will go to a holding yard until GM can place them with other dealers.
"Dealers who are not with GMAC are OK actually," Bosch says. "They have got banks that want to do business with them. I think we will see in the next year the demise of GMAC.
I can't speak for Ford, but GM has got to have government intervention to get some money."
