Slower Economy Pushes Auto Dealers 2007 Sales Down

Orange County Business Journal, Mar 3-Mar 9, 2008 by Cruz, Sherri

Despite a 4% drop in sales, Fletcher Jones Motorcars again kept its top spot on the Business Journal's list of biggest automobile dealers in Orange County. Crevier BMW took back the No. 2 spot after a stint at No. 3 in 2006.

The list ranks OC's 25 largest auto dealers by 2007 sales including new and used auto sales and service revenue.

Newport Beach-based Fletcher Jones' sales volume dropped to $611 million in 2007. Fletcher sold 6,477 new autos, 6% fewer than in 2006, and 2,109 used autos, 2% fewer than the previous year.

Fletcher was not alone in registering a sales drop as the slowing economy made it tough for local dealers.

Overall, the 25 dealers on the list saw sales decline by 0.7% to $4.5 billion in sales. The dealers sold 82,629 new cars, down 3%. Used car sales were up 1% to 32,543. The number of sales people dropped 0.5% to 986 but dealers hired a few more service workers, up 1% to 1,840.

Most of the dealers on the list reported sales figures. Those that the Business Journal estimated were: Lexus of Westminster, Mercedes-Benz of Laguna Niguel, Toyota of Garden Grove, Miller Toyota of Anaheim and Norm Reeves Honda Huntington Beach.

Santa Ana-based Crevier BMW, which moved up from No. 3, was one of a few dealers last year that boosted sales.

Crevier's sales were up 7% to $312 million. The dealer sold 4,217 new autos, an increase of 2% and Crevier cranked up its used car sales, selling 24% more used autos in 2007, for a total of 1,328.

Crevier replaced Mercedes-Benz of Laguna Niguel, which moved into the No. 3 spot. It had an estimated $310 million in revenue.

No. 4 Irvine BMW had a 2% decrease in sales volume to $257 million. It sold 3,306 new autos, 4% fewer than 2006, and 1,458 used cars, which was 20% more than 2006.

Buena Park-based Shelly BMW, which moved up to No. 10 from No. 13, also sold more used cars. Its used auto sales were up 53% to 800.

Shelly's sales were up 15% to $171 million. The dealer also sold 2,281 new autos, up 9% from 2006.

Luxury auto dealers again dominated the list, while Toyota had the most dealers.

No. 9 Newport Lexus, which opened in 2006, had its first full year of sales in 2007. The dealer, with palatial digs in Newport Beach near Fletcher Jones Motorcars, moved up from No. 24. Its sales were up 87% to $178 million.

Newport Lexus sold 2,945 new autos, an increase of 77%, and 1,550 used cars, up 75%.

Newport Lexus's sister dealer, Tustin Lexus, kept its No. 8 spot on this year's list despite a 5% drop in sales to $181 million. It sold 3,288 new autos, 3% fewer than 2006. Used car sales were down 1% to 1,187.

David Wilson, of Orange-based Wilson Automotive Group, and his partners, own both dealerships as well as No. 6 Toyota of Orange, No. 17 South Coast Toyota and No. 15 Toyota of Huntington Beach, which recently held its grand opening of its new showroom.

Toyota of Orange sold the most used cars of the dealers on the list. It boosted its used car sales 5% to 3,557 autos. New car sales were down 13% to 6,501. Sales were $214 million, down 7%.

In OC, Mercedes-Benz sells the most of the luxury brands but three of the four Mercedes dealers on our list saw sales declines. Meanwhile, BMW sales seemed to pick up, with two of the dealers reporting revenue increases.

No. 3 Mercedes-Benz of Laguna Niguel had estimated sales of $310 million, down from an estimated $312 million in 2006.

No. 5 House of Imports, based in Buena Park, also saw a dip in sales. Its sales were down 10% to $253 million. House of Imports sold 2,943 new autos, 12% fewer than 2006, and 1,582 used autos, an increase of 9%.

No. 7 Mercedes-Benz of Anaheim, which opened a new showroom last year, had $206 million in sales, an 8% decrease.

No. 16 Park Place Lexus Mission Viejo, formerly Lexus of Mission Viejo, also has new owners, Dallas-based Park Place Dealerships. Park Place had $132 million in sales.

No. 18 Honda World Westminster had an 8% decrease in sales to $123 million.

Other decliners on the list included dealers that sold GMC and Ford, two automakers that have been struggling the past few years. No. 25 Villa Ford in Orange was down 13% to $91 million.

No. 24 Allen Cadillac GMC Hyundai in Laguna Niguel reported a 3% dip to $91.2 million in sales.

Toyota dealers nabbed seven spots on the list and most had sales declines. Only No. 14 Elmore Toyota of Westminster was up. Revenue increased 4% to $139 million.