Fred Beans fighting back against dealership closures
Author: admin11 Jun
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Below is a letter written by Richard Weitzman, Director of the Philadelphia Office of SRS Real Estate Partners (formerly known as Staubach Retail Services):
June 12, 2009
RE: GM Termination of Fred Beans Pontiac/Buick/GMC of Limerick PA
To Whom It May Concern:
My name is Richard Weitzman, and I am Director in the Philadelphia office of SRS Real Estate Partners formerly known as Staubach Retail Services.
Our Dallas Texas based firm is the largest national provider of real estate services to the retail automobile industry. The Staubach AutoGroup practice was established some 10 years ago. We transact land and dealership sales, which involve demographic study, market review, and trade area analysis. We provide development, construction, and financing services for the dealer and manufacturer sector as well.
It might be said that most everything we do begins and ends with dealership LOCATION. As a firm we have closed hundreds of automotive deals. As an individual broker—with a focus in the PA/NJ region—I have participated in dozens of such transactions.
Included is specific involvement in the Limerick, PA area and with what has become known as the Route 422 Auto-Mall:
- I represented the original project developer starting in the planning stages.
- I sold the current Pontiac/Buick/GMC dealership to Fred Beans.
- I sold some 50 acres of automotive-zoned land to the current dealer-developer.
- I sold the Nissan franchise to Fred Beans.
Mr. Beans was one of the original visionaries and risk-takers in Limerick. When he acquired the newly-built GM facility in 2001, it was the sole auto dealership along Route 422. However, like many of us, Fred believed that this community represented THE FUTURE. He has since added Saturn.
In the ensuing years, Toyota, Honda, Nissan and Hyundai have all moved in. The presence of these import franchises speaks volumes. Their growth contrasts with the decline of the Detroit Big Three. Part of the reason, I believe, is that the import brands—especially—seem to understand dealer placement and retail distribution.
Now there is no argument from me that there are many poorly located and badly run dealerships that should close. Terminations have traditionally occurred through buyouts, consolidations or natural attrition. I have participated in many. Now, of course, they have accelerated with bankruptcy, but when I learned of GM’s intended termination for this PARTICULAR store, I was quite frankly shocked. I cannot imagine what—if any—objective criteria were used.
I will not get into the merits and standing of Fred Beans in the industry and community. That is all a matter of record. What I will say is if this specific dealership—and investment—and dealer do not represent what should make up the “New GM,” then I do not know what would.
As a business associate and friend of Fred Beans, I am saddened. As an industry professional with some experience in these matters, I am dumbfounded. As a taxpayer and now (without my consent) an equity-holder of the New GM, I am deeply troubled.
Very truly yours,
RDW
3 Responses for "Fred Beans fighting back against dealership closures"
I respect that the Beans family is fighting to keep their Limerick GM franchise. However, it seems that perhaps the Beans family is part of the original problem that started the economic downturn…they have more debt than they can afford to pay.
Fred Beans has made statements that “he built” the GM dealership in Limerick. If I recall, that building was originally occupied by Phoenix Pontiac/Buick/GMC, owned by Joe Aquilante. Fred Beans took it over from Phoenix.
It has been several years since the dealership was renamed a Fred Beans dealership, and there is still a $3.5M mortgage on the building? Additionally, Mr Beans has built a new Nissan building and a new Saturn facility at the complex. More debt. Saturn is closing, and now Beans is changing the Saturn dealer to his first KIA franchise. More debt to acquire a KIA inventory.
He contends that closing the Limerick GM dealership could bankrupt his whole empire. It sounds to me like he grew too fast and didn’t account for a rainy day. If he truly wants to help the employees at Limerick, he will offer the 40 emloyees positions at any of his other dealerships (he has several.) He will still have the Nissan and KIA dealerships in Limerick. He could keep the Limerick building and use it as a used car sales and service supercenter. There is more profit in selling used cars and performing service/maintenance. That would allow him to pay down his $3.5M mortgage.
Mr. Beans needs to get creative, cope with the fact that GM does not want his Limerick location as part of the new GM, and perhaps start preparing for more rainy days by paying down his debt and building a large “cash on hand” surplus. Simple business.
i get it
after 18 years of working for fred beans,i get and know what he is doing. he is investing in the community and giving employees the freedom to make the best they can of themselves. i live in florida and operate a air conditioning company. i have and will always use the ethics and business operations i was taught by fred beans. his businees has grown because of tireless hours of commitment to his employees and the community he lives in. this man and his family fight for not only the car business, but years of dedication to people they have employed and served
I have to say that I also feel Mr.Beans and his incredible corporation(s) are correct for what they are doing here. Putting the mortgage aside, Fred Beans is investing thier ideas not only for the company but for the community it surrounds. Although I have not worked for Fred Beans for countless years, I previously was part of their internship in Doylestown two years back. The biggest thing that I learned not only just from being their but from all of his employee’s is that Fred Beans is a family owned business that cares for more then just the cars he sells. Fred Beans represent good business, and great moral values. I stand behind and always will stand behind Fred Beans.
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