Car Dealers Write Off Domestic Franchises

Two of the largest chains of car dealers report that their domestic auto franchises have become virtually worthless, the Wall Street Journal writes. The companies took a  a combined $51 million in writedowns for the third quarter, reflecting disappearing "franchise value"—the measure of potential profit—for dealerships that sell brands from GM, Ford, and Chrysler.

Sonic Automotive and Group 1 Automotive—the third- and fourth-largest chain of dealerships in the nation—said sales of domestic brands continue to lose ground to foreign competitors, providing just 17% and 18% of revenues, respectively, in the third quarter. Other dealership chains are expected to announce writedowns in coming weeks.
(More financial crisis stories.)