Cities Bailing Out Local Dealers
A pair of California cities are bailing out car dealerships in their municipalities, according to the Wall Street Journal.
A car dealership in Victorville, Calif., requested $1 million from the local government, and was awarded a $200,000 line of credit. The line of credit will hopefully keep people employed and tax revenues flowing in from the dealership.
Two dealerships have received funding from the city of Norco, Calif. One of the dealerships, Norco Mazda, lost its dealer and consumer financing from the carmaker last year and was told to “get it on their own,” the dealership’s owner told the Journal. The two dealerships each received $500,000 lines of credit.
A group of dealers have approached a third city, Redlands, Calif., for emergency funding. The city manager has recommended a one-year, interest-free loan which would cover the dealership’s licensing fees.
