Volkswagen franchise closed; dealer now Nissan nameplate: switch expected to make easier sales

San Fernando Valley Business Journal, Jan 22, 2007 by Chris Coates

The owners of Valencia Volkswagen have closed the dealership's Creekside Road showroom and converted the space to a Nissan nameplate.

Valencia Nissan General Manager Keith Seals said owner SCV Motors Inc. determined the seven-year-old dealership could better perform selling Nissan vehicles, a brand that has had stronger sales in recent years compared to Volkswagen cars. With auto sales down nationally, it made sense to capitalize on the nameplate with the better sales, he said.

"There's a much better upside to Nissan than with Volkswagen," he said.

The dealership, just off Magic Mountain Parkway near Valencia Town Center, will now house used Nissans and other cars, said Seals, who was also the general manager of the Volkswagen dealership.

It opened in 2000 and was the only Volkswagen dealership in the Santa Clarita Valley.

Seals said the company plans to keep the dealership under the Nissan nameplate for the near future. "It's now our Nissan used car department," he said.

Don Fleming, co-owner of Valencia Acura and vice president of the Santa Clarita Valley Auto Dealers Association, said Volkswagens have been a hard sell in recent years while Nissans have fared relatively well.

Sales figures for the two automakers from October, the most recent comparable time available, showed that Volkswagen finished the month with 15,942 units sold compared with Nissan sales of 75,095 units.

"Volkswagen didn't do that well," Fleming said. "Some do good. Others fall on their face."

He said changing to the better-performing Nissan nameplate makes sense.

"It'll be done the right way," Fleming said.

The change comes as increased attention is focused on Santa Clarita's nascent auto dealer market.

The city and Santa Clarita Valley Auto Dealers Association for the past few years have been working to build support for the Valencia Auto Mall. a collection of 16 dealerships along Creekside Road between Valencia Boulevard and McBean Parkway.

BY CHRIS COATES

Staff Writer