Denny Hecker Files Lawsuit
Denny Hecker, the owner of multiple car dealerships throughout the state of Minnesota, including one in Pine City, filed suit against business partner Chrysler Financial on Thursday.
According to the suit, Chrysler Financial froze Hecker’s credit line making it difficult for him to purchase new vehicles for his lots. Hecker employs 1,200 people at dealerships across the state.
Calls made to the Pine City Auto Mall were redirected to a spokesperson in the corporate office. He said they have no comment on the potential effects the suit could have on the Pine City site. However, Pine City is not one of the 13 dealerships named in the complaint.
From the complaint:
1. For almost two decades, Chrysler Financial provided fleet financing to Hecker’s vehicle leasing businesses, floorplan financing to Hecker’s auto dealerships, and, most recently, fleet financing for Hecker car rental business – Advantage Rent-a-Car. Until recently Chrysler Financial and Hecker had an amicable business relationship and course of dealings that extended beyond the four corners of their various contracts.
2. Chrysler Financial floorplan financing has been extended to Hecker and his many dealerships: Autocal, LLC; Forest Lake Imports, LLC; Inver Grove Hyundai LLC; Lake Country Auto Center, Inc.; Monticello Ford-Mercury, Inc.; Monticello Motors, LLC; Rosedale Dodge, Inc.; Rosedale Dodge, LLC; Denny Hecker’s Bargain Connection, LLC; Stillwater Ford; Lincoln-Mercury, Inc.; Jacob Motors of Shakopee LLC; Walden Fleet Group, Inc.; and Inver Grove Imports LLC.
3. A floorplan is a loan for dealership automobile inventory that is secured by the financed vehicles. Hecker’s companies borrow money from Chrysler Financial to buy new cars from the factory, to trade for new cars from other dealers and to purchase certain used vehicles. Until the vehicle is sold, interest is paid, and upon sale the loan proceeds associated with that automobile are remitted to Chrysler Financial. Without a floorplan, Hecker and his companies cannot secure new car inventory from the auto-manufacturers, cannot satisfy customer demands and expectations, and in turn, cannot operate the day-to-day business.
4. Chrysler Financial also provided financing services for Hecker’s fleet sales business. Through Hecker’s companies, national fleet customers like Hertz Rent a Car, Avis Rent a Car, Enterprise Rent a Car, the Mormon Church and others purchased new vehicles. These vehicles were financed by Chrysler Financial on the floorplan of the selling dealership. Without this credit line, Hecker cannot secure vehicles to supply the demands of national fleet customers.
5. This credit line also enabled Hecker to make monthly loan payments to Chrysler Financial. Specifically, the income from fleet sales transactions financed by this credit line generates the revenue that was needed to service the $500,000 monthly debt payment to Chrysler Financial.