Buick Car Repair has been around for nearly 30 years, but this year, it’s finally closing its doors.
The Canadian-owned dealership says it has lost about $10 million since the company’s doors closed on Dec. 4, but that’s not the worst part.
The company is facing a $25 million capital deficit.
Buick says it will be paying its creditors $40 million, but it will only be able to pay them through January 2018.
“We don’t want to have to give out more money.
We don’t have the resources,” says Michael Goynes, vice-president of customer service and corporate affairs.
Buick says the dealership will also be closing a few more doors in 2018, as part of a restructuring that includes consolidating operations, moving sales offices and reducing the number of dealerships in the country.
“There’s a lot of different parts of the company that we need to focus on.
We have to look at our core business, our brand and our products and we have to make some investments,” says Goyles.
The dealership closed in February 2018, but Goyes says it had not been profitable for years.
In 2015, Buick said it was cutting more than 50 jobs as it restructured its operations.
In March 2018, it announced a plan to cut more than 90 jobs by the end of the year.
Buicks sales fell to $8.5 billion in 2019, according to the Canadian Association of Motor Dealers and Mercantile Machines.
The car repair giant says it also has had to shut down about 100 offices in Canada, while it is expanding its dealership network.
Buik’s parent company, Buicks Automotive Group Inc., is facing challenges in the U.S. and Europe, where consumers are increasingly concerned about the safety of their cars and vehicles.
Buicks says it is committed to ensuring the safety and security of its customers, but said in a statement that the company has had “many discussions with local authorities regarding possible regulatory actions.”
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