Reliable Cars
Reliable Cars, Inc.
I. Summary of Facts A) Market – Used automobile industry 1) History of Reliable Cars, Inc. a) Honest Carl’s Cars – Established in 1945 by Carl and Mary Lou and within the next five years, became the highest volume, single location used car dealership in California. Mary Lou made a point of employing the disabled and providing a friendly work environment. b) Reliable Cars, Inc. – Honest Carl’s Cars changes their name to Reliable Cars, Inc. They target the moderate income, working-class segment of the market. Dealerships projected a clean, comfortable, friendly ambience with employees focusing on meeting customer expectations and Mary Lou’s long term repeat purchase and referral objectives. In 1979, Reliable Cars was able to start two new sister operations, Oxford Finance, Inc., and Honest Service Agreement Enterprises. Both operations improved profitability and improved customer satisfaction. c) Keen Investment, Inc. – Reliable Cars, Inc. was then sold in 2004 to Keen Investment, Inc., a New York based financial conglomerate. Mary Lou received half cash and the other half in Keen stock. Mary Lou was also elected to the board of Keen and named Chair Emeritus for the Reliable board. Martha Macedo of the Compton Group was named as CEO to replace Mary Lou. d) Consolidated sales of $502,646,400 in 2005 and “best in the industry” ranking in customer satisfaction survey results. Reliable Cars Inc. CFO projects 2006 same store sales will reach $543,000,000. 10% profit after taxes and revenues have increased at a real rate of at least 8% a year, continued revenue growth, valuable and a “cash cow” strategic business unit. B) Products – 1) Low mileage, formerly owned automobiles and pickup trucks priced between from $3,999 to $15,999. All vehicles sold come with a thirty day limited warranty and may be exchanged for credit towards another vehicle of equal or greater value during the first ten days
I. Summary of Facts A) Market – Used automobile industry 1) History of Reliable Cars, Inc. a) Honest Carl’s Cars – Established in 1945 by Carl and Mary Lou and within the next five years, became the highest volume, single location used car dealership in California. Mary Lou made a point of employing the disabled and providing a friendly work environment. b) Reliable Cars, Inc. – Honest Carl’s Cars changes their name to Reliable Cars, Inc. They target the moderate income, working-class segment of the market. Dealerships projected a clean, comfortable, friendly ambience with employees focusing on meeting customer expectations and Mary Lou’s long term repeat purchase and referral objectives. In 1979, Reliable Cars was able to start two new sister operations, Oxford Finance, Inc., and Honest Service Agreement Enterprises. Both operations improved profitability and improved customer satisfaction. c) Keen Investment, Inc. – Reliable Cars, Inc. was then sold in 2004 to Keen Investment, Inc., a New York based financial conglomerate. Mary Lou received half cash and the other half in Keen stock. Mary Lou was also elected to the board of Keen and named Chair Emeritus for the Reliable board. Martha Macedo of the Compton Group was named as CEO to replace Mary Lou. d) Consolidated sales of $502,646,400 in 2005 and “best in the industry” ranking in customer satisfaction survey results. Reliable Cars Inc. CFO projects 2006 same store sales will reach $543,000,000. 10% profit after taxes and revenues have increased at a real rate of at least 8% a year, continued revenue growth, valuable and a “cash cow” strategic business unit. B) Products – 1) Low mileage, formerly owned automobiles and pickup trucks priced between from $3,999 to $15,999. All vehicles sold come with a thirty day limited warranty and may be exchanged for credit towards another vehicle of equal or greater value during the first ten days