Auto Dealership Deathwatch

no_vaseline_IHB

no_vaseline_IHB

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If you're Lambo, what's it like to lose 10% of your market overnight?



<a href="http://www.businessweek.com/ap/financialnews/D9497OEO0.htm">http://www.businessweek.com/ap/financialnews/D9497OEO0.htm</a>



<blockquote>The world's largest dealer of Lamborghini has shut down.



Lamborghini Orange County was renown for catering to the glamorous fans of the 12-cylinder, $600,000 sports cars. It's doors were padlocked Wednesday.



It sold about 10 percent of the 2,400 Lamborghinis made in the world each year. NBA stars Kobe Bryant and Dennis Rodman were among its customers.



The dealership flew in actors Eric Roberts and Luke Perry by helicopter from Los Angeles to attend a company event earlier this year. Other promotional parties have featured stars such as Elton John and Sharon Stone.



The owner of the Santa Ana-based dealership would not comment on the closure.



Lamborghini's separate sales company in the United States says the dealer closed because of its own mistakes, not the economy.</blockquote>


But wait -there's more:



<a href="http://www.ocbj.com/industry_article.asp?aID=18148615.1323008.1704781.49317502.7996927.434&aID2=131128">http://www.ocbj.com/industry_article.asp?aID=18148615.1323008.1704781.49317502.7996927.434&aID2=131128</a>



<blockquote>Italy's Automobili Lamborghini Holding SPA is trying to help reopen its largest U.S. dealership, Lamborghini Orange County, which abruptly closed this week.



?This is our first priority,? said Pietro Frigerio, chief operating officer for Automobili Lamborghini, a unit of Germany?s Volkswagen AG that is in the process or relocating its North American headquarters to Santa Monica.



The automaker declined to say how it was helping or provide any word on the status of Lamborghini Orange County.



The Santa Ana dealership, the nation's top seller of pricey Italian Lamborghinis, closed due to undisclosed financial issues that aren't related to the economy.



?We do not have all of the information and, therefore, cannot comment on the status of Lamborghini Orange County?s financial situation,? Frigerio said.



He said the management at Lamborghini Orange County made a few "unfortunate business decisions, independent of Automobili Lamborghini, which have caused the current issues that they are trying to resolve now.?



Siblings Vik, Nora, Sossi and Astrid Keuylian own and run Lamborghini Orange County.



Their 4,000 square-foot Calabasas Lamborghini dealership, which opened in 2007, also is closed.



Calls made to the family haven't been returned.



Earlier this week, the dealer?s receptionist said it was undergoing an ?ownership change? and would reopen in about 10 days.



Phones weren't being answered Thursday.



Representatives for the state attorney general's office and the Orange County district attorney?s office said they have no information about the dealership's closure.



Lamborghini owners for now will have to turn to Lamborghini Beverly Hills or Lamborghini San Diego for service.</blockquote>


If they were 10% of total worldwide sales out of that shitty building (240 cars, $600K a copy, $144,000,000 a year!) what does Beverly Hills do? "We keep a low overhead Santa Ana location and pass on the savings to you!" does not seem to be a viable marketing stragety, but maybe......
 
<blockquote> He said the management at Lamborghini Orange County made a few "unfortunate business decisions </blockquote>


You mean like <a href="http://community.livejournal.com/los_angeles/2890690.html">borrowing money from vicious, drug-dealing thugs?</a>
 
[quote author="Daedalus" date=1226072134]<blockquote> He said the management at Lamborghini Orange County made a few "unfortunate business decisions </blockquote>


You mean like <a href="http://community.livejournal.com/los_angeles/2890690.html">borrowing money from vicious, drug-dealing thugs?</a></blockquote>


I have a friend thats an auto dealer. Guess there is way more to this story.

At this point I wont spread the rumors I have heard. But its not pretty.

In a few days more will come out about what brought Lambo OC down.

His Calabassas dealership as well.
 
[quote author="Astute Observer" date=1226071930]Tustin Market Place ... there is one dealership completely empty. Can't remember which one, I *think* it was Ford?</blockquote>


It is Ford. I went there for service recently, and they said they were shut down.
 
<blockquote>All the investigations collapsed when witnesses refused to testify or left the country, and Waknine grew wealthier every year. He owned a 3,154-square-foot town house on the sand in Marina del Rey, a brand-new home in the Hollywood Hills, a vacation house on Acapulco Bay and <strong>investment properties around Southern California, Las Vegas and Miami.</strong></blockquote>


not a good time to owe money to drug dealers. my guess is they're not in such a good mood of late...
 
[quote author="no_vaseline" date=1226068493]If you're Lambo, what's it like to lose 10% of your market overnight?



<a href="http://www.businessweek.com/ap/financialnews/D9497OEO0.htm">http://www.businessweek.com/ap/financialnews/D9497OEO0.htm</a>



<blockquote>The world's largest dealer of Lamborghini has shut down.



Lamborghini Orange County was renown for catering to the glamorous fans of the 12-cylinder, $600,000 sports cars. It's doors were padlocked Wednesday.



It sold about 10 percent of the 2,400 Lamborghinis made in the world each year. NBA stars Kobe Bryant and Dennis Rodman were among its customers.



The dealership flew in actors Eric Roberts and Luke Perry by helicopter from Los Angeles to attend a company event earlier this year. Other promotional parties have featured stars such as Elton John and Sharon Stone.



The owner of the Santa Ana-based dealership would not comment on the closure.



Lamborghini's separate sales company in the United States says the dealer closed because of its own mistakes, not the economy.</blockquote>


But wait -there's more:



<a href="http://www.ocbj.com/industry_article.asp?aID=18148615.1323008.1704781.49317502.7996927.434&aID2=131128">http://www.ocbj.com/industry_article.asp?aID=18148615.1323008.1704781.49317502.7996927.434&aID2=131128</a>



<blockquote>Italy's Automobili Lamborghini Holding SPA is trying to help reopen its largest U.S. dealership, Lamborghini Orange County, which abruptly closed this week.



?This is our first priority,? said Pietro Frigerio, chief operating officer for Automobili Lamborghini, a unit of Germany?s Volkswagen AG that is in the process or relocating its North American headquarters to Santa Monica.



The automaker declined to say how it was helping or provide any word on the status of Lamborghini Orange County.



The Santa Ana dealership, the nation's top seller of pricey Italian Lamborghinis, closed due to undisclosed financial issues that aren't related to the economy.



?We do not have all of the information and, therefore, cannot comment on the status of Lamborghini Orange County?s financial situation,? Frigerio said.



He said the management at Lamborghini Orange County made a few "unfortunate business decisions, independent of Automobili Lamborghini, which have caused the current issues that they are trying to resolve now.?



Siblings Vik, Nora, Sossi and Astrid Keuylian own and run Lamborghini Orange County.



Their 4,000 square-foot Calabasas Lamborghini dealership, which opened in 2007, also is closed.



Calls made to the family haven't been returned.



Earlier this week, the dealer?s receptionist said it was undergoing an ?ownership change? and would reopen in about 10 days.



Phones weren't being answered Thursday.



Representatives for the state attorney general's office and the Orange County district attorney?s office said they have no information about the dealership's closure.



Lamborghini owners for now will have to turn to Lamborghini Beverly Hills or Lamborghini San Diego for service.</blockquote>


If they were 10% of total worldwide sales out of that shitty building (240 cars, $600K a copy, $144,000,000 a year!) what does Beverly Hills do? "We keep a low overhead Santa Ana location and pass on the savings to you!" does not seem to be a viable marketing stragety, but maybe......</blockquote>


Is that the dealer off to the right going north on the 55? They usually have a different Lambo every day parked right outside it's doors...
 
[quote author="IrvineRenter" date=1226103899][quote author="Astute Observer" date=1226071930]Tustin Market Place ... there is one dealership completely empty. Can't remember which one, I *think* it was Ford?</blockquote>


It is Ford. I went there for service recently, and they said they were shut down.</blockquote>


Power Ford in Tustin is gone?! Been servicing the wife's Explorer there for years...
 
[quote author="ipoplaya" date=1226115056][quote author="IrvineRenter" date=1226103899][quote author="Astute Observer" date=1226071930]Tustin Market Place ... there is one dealership completely empty. Can't remember which one, I *think* it was Ford?</blockquote>


It is Ford. I went there for service recently, and they said they were shut down.</blockquote>


Power Ford in Tustin is gone?! Been servicing the wife's Explorer there for years...</blockquote>


Its not a Ford Explorer its a Ford Exploder. My buddy at work is on his 4th Transmission

at 75K Miles. Ford deserves to go out of Business. After the Warranty period these cars just fall apart under normal use. Terrible build quality.
 
[quote author="bltserv" date=1226116491][quote author="ipoplaya" date=1226115056][quote author="IrvineRenter" date=1226103899][quote author="Astute Observer" date=1226071930]Tustin Market Place ... there is one dealership completely empty. Can't remember which one, I *think* it was Ford?</blockquote>


It is Ford. I went there for service recently, and they said they were shut down.</blockquote>


Power Ford in Tustin is gone?! Been servicing the wife's Explorer there for years...</blockquote>


Its not a Ford Explorer its a Ford Exploder. My buddy at work is on his 4th Transmission

at 75K Miles. Ford deserves to go out of Business. After the Warranty period these cars just fall apart under normal use. Terrible build quality.</blockquote>


Don't know about about you, but I owned Ford for 20 years and have been very satisfied with thier products. I owned 2 Ford Rangers and drove one 200k and one 169k. The only thing that broke down on both of them were a little $15 heater diverter valve. I do NOT drive nicely either.... The Focus has been pretty good, no issues with driving 25k miles a year for 2 years. I did wear out the brakes a little early, but that could have something to do with this!



<img src="http://i62.photobucket.com/albums/h111/bisquick06/junk/000_0289.jpg" alt="" />



<img src="http://i62.photobucket.com/albums/h111/bisquick06/junk/000_0287.jpg" alt="" />



<img src="http://i62.photobucket.com/albums/h111/bisquick06/junk/000_0294.jpg" alt="" />



<img src="http://i62.photobucket.com/albums/h111/bisquick06/junk/000_0295.jpg" alt="" />



So I don't treat my cars nicely, but I do maintain them....



As for driving a cheapie car, its all in what you want. My only broken down pony mustang gets no respect... Except when you pass those pesky supercars.



-bix
 
[quote author="24inIrvine" date=1226115445][quote author="CapitalismWorks" date=1226113488]IR, you own a FORD?!?</blockquote>


Haha I was thinking the same thing!</blockquote>


My wife insisted upon getting a Mercury Mountaineer against my advice. She now wishes she hadn't. It has been a good, reliable vehicle so far, but it drives and rides like the truck it is.
 
[quote author="bltserv" date=1226116491][quote author="ipoplaya" date=1226115056][quote author="IrvineRenter" date=1226103899][quote author="Astute Observer" date=1226071930]Tustin Market Place ... there is one dealership completely empty. Can't remember which one, I *think* it was Ford?</blockquote>


It is Ford. I went there for service recently, and they said they were shut down.</blockquote>


Power Ford in Tustin is gone?! Been servicing the wife's Explorer there for years...</blockquote>


Its not a Ford Explorer its a Ford Exploder. My buddy at work is on his 4th Transmission

at 75K Miles. Ford deserves to go out of Business. After the Warranty period these cars just fall apart under normal use. Terrible build quality.</blockquote>


My wife likes Explorers for some reason (I prefer Japanese brands myself) and has put 70K miles on hers over the past five years with no signifcant mechanical issues. She did break the parking brake mechanism somehow, which cost $350 to replace, but other than that, a very solid ride so far.
 
[quote author="no_vaseline" date=1226121731]Bix,



Is that El Toro? Do they still run there? Why the tape for an autocross?</blockquote>


From time to time. I did that so I didn't scratch the lenses, they are quite delicate and It was actually a Drifting thing... yes I know, drifting in a front wheel drive.... it can be done... but its not easy... hence the dead brakes.



You still do get alot of crap in autocross.. its not as clean as you think.



-bix
 
[quote author="Astute Observer" date=1226536493]Drove pass a dealership in Norwalk on my way to work, and noticed that it is completely empty.



I think we build cars that are too durable. How about a mandatory vehicle retirement program that make it illegal to operate any car newer than 1950 if they are more than 3 years old? That should give life to the auto industry very quickly.</blockquote>


Ford closed (bought out) 40% of it's dealerships in San Diego a year ago. They have too many. A smaller % in LA/OC have been wacked (Ford West, the dealer at the 405 in Carson, Beverly Hills Ford, the dealer in Norwalk). Chevy has closed Rancho off the 1-5.



In South County RSM, the Nissan dealership closed (Nissan pulled it from the Family Motors folks when the inventory audit came up short), the Foothill Ranch GMC dealership closed a year ago, and the Chrysler dealership closed six months ago.



I think all of the Family dealerhships are on deathwatch and the Chevy dealership in FR won't last much longer.



There is nothing the feds can do to save GM. Nothing. Just like housing prices correcting, they can slow it down, but they can't stop it. GM will be 25% of it's existing size at the back side of this (if it makes it at all) and all the UAW benifits they have come to believe as birthright will be gone.
 
I've been a lurker here for quite a while. Though real estate is an interest of mine, I follow the auto industry a little closer.



I find an interesting trend of a merging of thought processes of IR and Robert Farago from TTAC, perhaps with less profanity....



http://www.thetruthaboutcars.com/bailout-watch-169-david-cole-is-telling-porkies/



David Cole is the man whose industry and union-funded Center for Automotive Research carried-out a study of the economic implications of Detroit?s meltdown. The result has become the de facto standard for ?this is the serious shit that will happen if we don?t bailout Motown?s mismanagers with federal tax money? argument wielded by those who would let the D2.8 suckle Uncle Sam for its [short-term] survival. So much so that the MSM uses the figures without attribution. Which pisses me off no end. TTAC has exposed Cole?s blantant self-interest in this matter. Our Best and Brightest have examined CAR?s study and exposed its deep methodological flaws [see: comments below link above]. While there is no doubt that allowing GM and Ford to file for Chapter 11 protections, and Chrysler to file Chapter 7 liquidation, would create an economic catastrophe for tens of thousands of workers and hundreds of communities, exaggerating the impact of same for political gain is deeply immoral. And just plain wrong. Giving Cole an uncontested platform to promulgate his propaganda is, if anything, worse. And yet that?s exactly what The Detroit News has done?

The DetN is so happy to let Cole mislead the general public that the headline AND strapline say the same damn thing: ?Letting automaker fail costs more than price of loan automaker? is immediately followed by ?fail costs more than price of loan.? You know, just in case you can?t be bothered to read Cole?s dietribe [sic], which begins by blaming the same government he seeks to suckle.

?The popular complaint is that the domestic auto industry got itself into this mess, and it should suffer the consequences. But the reality is the Detroit Three wouldn?t have cash flow problems if the federal government hadn?t caused the financial crisis, in part, by ensuring that Americans who couldn?t afford a home suddenly could buy one. The resulting subprime mortgage crisis helped lead to the credit crunch, which has caused a dramatic decline in auto sales.?

The meme is clear: the financial crisis is the cause of Detroit?s disaster. The fact that all the other automakers doing business in the United States who aren?t HQ?ed in Motown are in no danger of going belly-up is, apparently, irrelevant. The inconvenient truth that GM?s former captive finance unit GMAC is up to its eyeballs in the subprime mess doesn?t get a look in. Or the American automakers? obvious willingness to lend money to car buyers whose credit scores look like a minor league baseball player?s batting average. But wait! There?s more! More federal complicity in Detroit?s dilemma!

?The federal government also contributed to the auto industry?s problems with its lack of a realistic energy policy. The price of this hit home this summer, when the price of gasoline spiked to $4 a gallon and caused a massive shift in the types of vehicles consumers would buy. Now that the price of gas is below $2 in some areas of the country, there will be far less demand in the short run for the fuel-efficient vehicles that the government wants the automakers to sell in greater quantities.?

How fucked-up can one argument be? Seriously, I?m sitting here at the keyboard, schnauzer at my side, lost in the maze of Cole?s insanity/inanity. Are the feds to blame not having an energy policy that kept gas prices low? Or for having one that did, then didn?t, then did? Were the federal Corporate Average Fuel Economy regs forcing automakers to make the fuel-efficient cars that would have saved their ass if they?d hadn?t gorged on SUV and pickup truck profits (assuming they could make competitive small cars if they really wanted to) a good idea then, but wrong now? Or wrong then AND now?

Cole?s willingness to blame CAFE regs for Motown?s misery shows where his sympathies lie? if such evidence were needed. It also shows that Motown?s propagandist-in-chief is no strategist. Criticizing the Dems? legislative darling child will not win Detroit any friends in Washington. No siree Bob.

?If GM, Ford and Chrysler had to shut their doors, according to our center?s calculations, the economy would lose nearly 3 million jobs in the first year. That is because the auto industry has the highest jobs spinoff of any manufacturing enterprise. For example, for every auto assembly factory job, there are another eight to 10 jobs outside of the plant.?

This rhetorical technique is called reductio ad absurdum. You make a claim, show how it leads to an absurd or ridiculous outcome, and then conclude that the original claim must have been wrong? as it led to an absurd or ridiculous result. If Detroit?s automakers file for Chapter 11, there is no way on God?s green earth that they will simply shutter their doors and be done with it; they will continue making and selling vehicles. It may be a fraction of previous production, but it will not be zero. To suggest so is the dictionary definition of disingenuous. Of course, Cole?s got that one covered.

?Critics have said it would be better to let the automakers file for bankruptcy and get their financial houses in order. The problem with this approach is that industry experts know that consumers won?t buy expensive products from a bankrupt company. That still leads to serious decline in sales and to 2 million lost jobs very quickly.?

Don?t you hate it when an industry expert quotes unnamed industry experts to prove that he, an industry expert, is right? Perhaps Mr. Cole should conduct a study on consumer attitudes towards buying from a bankrupt GM, Ford and or (yeah right) Chrysler, focusing on price. Because at some price, ANYTHING will sell. And he might want to ask ?If the your car warranty was backed by the federal government?? Nope. Checks cashed. Blinkers on. Two million jobs? Where?s the data? And define ?very quickly.? Fuzzy logic uber alles.

?In addition, the very low level of current sales and surprisingly low inventory of vehicles are creating a pent-up demand for new vehicles once the credit crunch subsides and the economy improves. The market promises to shift from the buyers? market of the past decade to a sellers? market where fewer financial incentives or discounts will be needed to sell a vehicle with the industry?s reduced manufacturing capacity.?

Baseless conjecture. Dataless drivel. Crap. In fact, you could say that the domestic automakers? build ?em fast, pile ?em high, sell ?em cheap strategy over the last ten years created an automotive ?bubble.? That burst. TTAC may not be a credible source of industry expertise in Mr. Cole?s eyes, but we called the sales meltdown (sub 12m units). And plenty of us hereabout don?t see a recovery until the tail end of 2010. And even then, vicious competition from the transplants guarantees that America will ALWAYS be a buyer?s market.

??the government needs to give the Detroit Three a bridge to this brighter future. A bridge loan now would be far less expensive than letting one or more of the domestic automakers fail.?

Or not. In fact, funding the automakers without letting them pass through Chapter 11would be a bridge to nowhere. And a complete waste of money. Our money.
 
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