Orange County's Saab Dealer Has Market to Himself

Orange County Business Journal, Apr 16-Apr 22, 2007 by Cruz, Sherri

Bloomingdale's Names Head for South Coast Plaza Store; Opening, Charity Gala Next Month

MARKETPLACE

The car "born from jets" isn't as wellknown around these parts. But if you're in the market for a Saab in Orange County, Steve Coleman's dealerships are the only place to get one.

Several years ago, Saab followed Saturn's lead by taking a "market area" approach to auto sales. The Swedish automaker grants markets to a particular dealer.

In OC, Coleman, owner of Saab of Orange County, is the guy. He owns Saab of Mission Viejo and Saab of Santa Ana. (Rep. John Campbell, the Newport Beach Republican, previously owned the Saab dealerships.)

The idea is that if one dealer owns the market, then dealers won't compete against each other, as Mercedes-Benz and most of the others do in OC.

Coleman was an original Saturn dealer. General Motors Corp. owns both Saturn and Saab. Duluth, Ga.-based Lou Sobh Automotive owns OC's Saturn dealers.

Saab is an entry-level luxury brand, popular in the Northeast. Saab competes with BMW, Audi and Volvo, Ford Motor Co.'s Swedish designed car.

In 2006, Saab sold 36,349 autos in the U.S., its largest market worldwide. Volvo sold 115,807 vehicles here. Audi of America Inc. sold 90,116. BMW of North America sold more than all three combined at 300,000.

BMW is strong in OC. Audi and Volvo are similar to Saab in that they are popular in colder climates but are lesser known on the West Coast.

Saab is short for Svenska Aeroplan Aktiebolaget, or Swedish Aircraft Co. Saabs used to be made by Saab AB, an aerospace company that once made military jets. GM's Saab Automobile AB of Sweden makes the cars now.

Saabs are known for performance and gas sipping.

"The majority of them are four-cylinder turbos," Coleman said. A new one goes for about $34,000. One of its latest models is the 9-3 SportCombi wagon.

As the market dealer, Coleman said he can apply economies of scale and use the strength of his businesses to buy more of a particular model.

His dealerships share payroll and other administrative functions. Saturn started with a market business model when the brand started, he said. Saab, which had a smaller dealer network, was able to buy back dealerships and reassign them to a single dealer.

Bloomies Guy

Jim Murphy was named operating vice president and general manager for South Coast Plaza's 292,000-square-foot Bloomingdale's, set to open May 4.

Murphy has been with Bloomingdale's since 1985, when he started as a senior auditor in the finance division. He's held various positions, including director of administration, group manager and assistant manager.

In 2000, . Murphy came to OC as general manager of the Newport Beach store.

In 2004, he was promoted to operating vice president. He currently is operating vice president and general manager of the Century City store.

Bloomingdale's, part of Federated Department Stores Inc., runs some 40 stores along the East Coast, in the Midwest, Nevada and California.

Bloomingdale's private gala preview of the Costa Mesa store is set to benefit the Orange County Performing Arts Center's various education programs and charities. The arts center stands to get 100% of the proceeds of the charity event to be hosted by OC bigwigs William Lyon, Henry and Elizabeth Segerstrom and Sandy and John Daniels, among others.

Bloomingdale's has a bunch of events planned at the store for its opening weekend, including a St. John preview, Juicy Couture giveaways, a meet and greet with designers and performances by Orange County High School of the Arts students.

Orchard Hills

The Irvine Company's 125,000-square-foot Orchard Hills Village Center is set to open this summer. Retailers slated to open at the neighborhood shopping center include a new spot for Tustin eatery Zov's Cafe, Bakery & Bar, CVS, Pavilions, La Sirena Grill and Lilikoi women's boutique. Chico's also plans a store.

Active Ride

Action sports retailer Active Ride has opened on the Tustin side of The Market Place.

The store will be holding a RVCA skateboarding team demo on Saturday. Coming next month to the Irvine Co.'s Market Place is women's boutique White House Black Market, a unit of FAS Inc., which is part of Chico's. Coming soon to the Irvine Co.'s Fashion Island, Vilebrequin, a seller of upscale men's and boys' swim trunks.

MainPlace Art Show

Westfield MainPlace in Santa Ana is hosting its annual Very Special Arts Festival on Saturday. The mall has held the festival showcasing art by people with disabilities every year since it opened in 1987.

Fondu Opening

The Melting Pot opened its latest restaurant in San Clemente and is set to open another in Brea this summer. Mira Selbo, owner of the 25-year-old Florida chain, is expanding in OC on the strength of sales at her Irvine restaurant, her first in OC. They've grown from $1.3 million in 2003 to $4.24 million last year.