Denver auto company to open in Springs

0 Comments | Gazette, The (Colorado Springs), Jul 8, 2005 | by DEBBIE KELLEY THE GAZETTE

Rapid growth along the Powers Boulevard corridor and the resulting business potential has lured the Burt Automotive Network to Colorado Springs.

In its first venture outside the Denver area, Burt Automotive, one of Denver's largest dealerships, has leased 23 acres in the Powers Auto Park from Nor'wood Development Group, said John "Hank" Held, senior vice president and corporate legal counsel for Burt Automotive.

"We're excited about the prospect of having dealerships in that area. It makes a lot of good business sense," he said.

Held said he cannot disclose which automotive franchises his company will bring to the Springs. Burt owns seven dealerships in Denver and two in Parker that sell new cars from Ford, Chevrolet, Buick, GMC, Honda, Mazda, Toyota and Subaru.

The company is building a 120-acre auto mall in Parker. In 2004, Burt Automotive reported $1.94 billion in sales, Held said, an 18 percent increase from the previous year.

Although a construction date has not been set, Held estimates that the project will bring 250 to 300 jobs to Colorado Springs when the 23-acre development is completed in three to five years. Burt Automotive employs 1,100 at its dealerships.

Powers Auto Park currently includes Carlin Dodge, which sits on 11 acres of land; The Faricy Boys Jeep Chrysler Jeep, with 6 acres; and Bob Penkhus Mazda, which just completed a $4 million new-car showroom and used-car lot on 5 acres. Burt Automotive's dealerships at the park will encompass more land than the three existing dealerships on site, combined.

Barry Keating, general sales manager at Bob Penkhus Mazda, said he will welcome his new neighbors. "The bigger this auto park gets, the more sales and traffic will be generated," he said. "Customers also will get a better selection, and we'll become a viable force for automotive purchases in the local market."

Before making the decision on where to locate new dealerships, Burt Automotive conducted major demographic studies, Held said. Results indicate that in the next decade, the Powers Boulevard area will be the center of economic activity in the city.

The local market analysis indicates Springs buyers are similar to those in Parker, Held said.

"They own a high number of vehicles per household, have a high education and a high income," he said.

The study also mentioned the supply of potential buyers in the area.

"People tend to go to the dealer that's within a five-mile radius of their homes," he said. "After that, the second-biggest propensity for customers is to buy from a dealership that's within five miles of their work."

Burt Automotive also expects to draw customers from farther north. Held said car buyers surveyed in Castle Rock indicated that they would consider traveling to a dealership in the Powers Auto Park instead of going to Denver.

Keating said that since his dealership moved into its new facility in the Powers Auto Park four months ago, business has been good.

"We ranked No. 2 in the state in Mazda sales for the last two months," he said.

Held said Burt Automotive also found the northeast area attractive because the location is easily accessible from Burt Automotive's state headquarters in Centennial.

"We haven't gone outside Colorado because we feel it's necessary to be close enough to our operations to manage them on a daily basis. With the traffic flow and proposed roads in the Powers Auto Park area, we should have good access," he said.

Lloyd Chavez Jr. owns Burt Automotive Network, which in 2004 ranked second in revenue on Hispanic Business magazine's 21st annual Top 500 list.