Our client, a heavy truck and vehicle dealer, wasn’t profitable even though they had invested heavily looking for improvement. Baeza & Asociados was hired to diagnose the company’s situation.
We concluded that the company couldn’t be profitable because its small critical mass didcould no’t cover absorb fixed costs, ; they had a weak executive team, and and the owners had little interest in the small vehicleautomobile business. Additionally, the possibility to increase market share with the two small vehicle brands was a risky avenue and had few chances to be successful.
The final decision was to close the small vehicleautomobile and parts operation, selling to sell the distributor rights, to give a better use to the assets and to merge the heavy truck business with one of the subsidiaries of the group.