Classic Cars Chevrolet

Bill Heard Enterprises, based out of Columbus, has filed for federal bankruptcy protection under the heading of Chapter 11 Protection.

Bill Heard Enterprises was one of the largest Chevrolet dealers in the United States and in the world. Heard’s dealerships sold more Chevy cars than anyone else. But it closed its 14 dealer outlets this month. The move put 2,700 people out of work, including more than 300 at the flagship Columbus dealership.

So what went wrong? How did the once powerful Bill Heard Enterprises end up the latest victim of economic strife in America?

Many analysts are pointing to Heard’s “Mr. Big Volume” philosophy as one of the key components to the collapse. By accepting all loans applications, regardless of credit history, Heard’s dealerships put many people in cars that wouldn’t normally be able to apply for them. Of course, with the good comes the bad and Heard often felt the crunch from these deals. His high volume, low profit sales organization was destined to fail from the outset, say many, and the events of this week are simply the inexorable results.

Responsible dealerships can thrive in any environment with smart business moves and proper credit researching. Loaning money and expecting payments from people who cannot properly make payments is not a solid foundation on which to build any business, least of all a car business.

Bill Heard’s collapse doubtlessly leaves many lessons behind, the most important of which is also the most obvious.