Raceway Automotive Group Invests $11mm into the Pee Dee Economy

Wednesday, July 25, 2007

The Raceway Automotive Group formally announces it is making another investment into the Pee Dee community.  This investment equates to about $11,000,000.00 as the Automotive leader assumes complete ownership of its inventory at its four locations. 

John Isgett, President of the Raceway Automotive Group, states “We made the decision to make this capital investment into the Pee Dee community to not only take advantage of the financial savings it creates for our business but also, and more importantly, to utilize the financial savings to create more jobs and expand on our business opportunities in the Pee Dee.” 

In essence, a majority of the automotive dealerships rely on outside lines of credit through captive financial sources, such as Ford Motor Credit for Ford dealers, to finance their dealership vehicle inventory.  On a monthly basis, interest is then paid to these captive financial sources/lenders based on the dealership’s car inventory balances on hand.

The Raceway Automotive Group has elected to leverage their strength, as the largest privately held automotive group in the Pee Dee, to eliminate these captive credit lines and finance their own inventories, which equates to about an $11mm investment.  The interest savings, generated by internally financing their own inventories, will allow the Raceway Automotive Group to expand into different market and product areas as it relates to the automotive industry, which can create new jobs in the Pee Dee and provide for a per vehicle reduction in expenses--equating to even more competitive vehicle pricing by the Raceway Automotive Group.

“The Raceway Automotive Group, which is comprised of about 100 Raceway associates over its 4 Raceway locations in the Pee Dee, is extremely excited about the opportunities this new investment can generate in the Pee Dee area” states Mr. Isgett.

•  $11mm financial investment into the economy of the Pee Dee
  
•  Creates an internal financial floor, with significant cost savings, which permits Raceway to redistribute its cost savings into the Pee Dee community.
  
•  Benefits to the Pee Dee area are additional jobs created through sales growth and additional locations, along with immediate customer price savings on a per vehicle basis.
  
•  The new investment is generated directly from the Raceway shareholders sincere dedication to the local Pee Dee economy in new business development and growth.
• The mission of the Raceway Automotive Group is to provide the most excellent value in the automotive market as it relates to automotive sales and service. 
• The Raceway Automotive Group goal is to be the best automotive provider in the Pee Dee through its local ownership and consistent investment into the Pee Dee community.
• The Raceway Automotive Group is owned and operated by John Ramsey and John Isgett of Darlington, SC.  John Isgett serves as the President and managing shareholder.