Locally based automakers experienced a 14% increase in vehicle sales for the 12 months ended June 2024, according to a Business Journal survey.
As for their Orange County headcount, the nine manufacturers surveyed in this year’s list saw a 1.1% drop in employees to 4,330.
Rivian Automotive Inc. (Nasdaq: RIVN) remained the largest manufacturer by local employees but reported a 14% decline compared to last year. The EV startup currently counts 1,883 in OC.
Mazda North American Operations, headquartered in Irvine, also recorded a decrease in its OC headcount, down 9% to 337.
The company attributed the reduction of local employees to many relocating while continuing to work for Mazda remotely and normal attrition.
In Anaheim, Isuzu Commercial Truck of America Inc. reported a 22% jump to 220 employees as of September.
Isuzu started production on its first all-electric truck in the first half of 2024, which marks 40 years in the U.S.
“We had some growth in our overall business which in turn meant needing to hire more team members,” Brian Tabel (assistant VP, marketing) said.
“We added more in our service and parts area of the business as we are now building our class 5 NRR EV.”
Updated Guidance, First Revenues
Meanwhile, six companies reported increases in vehicle sales.
Rivian grew the most with over 57,000 units sold for the period ended June 2024, up 63% from the same period last year.
Citing production issues due to a shortage in supply, the EV manufacturer this month lowered its 2024 production guidance from an initial 57,000 vehicles to between 47,000 and 49,000 units.
Rivian also halted production of its commercial vans in August due to a similar shortage of parts.
Mazda and Toyota Motor North America Inc. both recorded increases of 14% in 12-month vehicle sales, to 382,057 and 2.1 million cars, respectively.
Mazda, OC’s fourth largest automaker by employees, reported that 2023 was the best year for unit sales in almost 30 years for its North American division. Chief Executive Tom Donnelly told the Business Journal in February that it would not be a “one-year blip.”
Isuzu’s vehicle sales grew 19% to 28,500. 2023 also marked a record year in wholesale and retail sales of its commercial trucks.
Mullen Automotive Inc. (Nasdaq: MULN), the eighth largest automaker with around 75 employees in Brea, is currently focused on reducing overall spending.
Aiming for a $5.5 million reduction in expenses, Mullen will be making cuts in facility consolidations, programs and operations. This includes a 20% reduction in the company’s headcount across operations.
Mullen, which recorded its first ever revenue of $366,000 for the fiscal year ended Sept. 30, 2023, expects revenue of $4.5 million for the recent fiscal quarter ended Sept. 30.
This year, the region’s automakers formed significant partnerships with fellow manufacturers to collaborate on the future of the automotive industry including Rivian, Hyundai Motor America and Karma Automotive LLC.
Sales Flat for Auto Dealers
As for Orange County’s largest auto dealers, sales volume was relatively flat year-over-year at $5 billion for the 12-months ended June 30. The number of total new cars sold in OC for the same 12-month period grew 5.4% while the number of used cars declined 2.7%.
10 of the top 28 dealerships reported decreases in overall sales including a handful of luxury car dealers.
Audi South Coast’s sales dropped 29% to $100.6 million. The dealer saw its used car sales decline by 47%.
The Santa Ana business fell from No. 12 to No. 19 in the Journal’s ranking this year.
Fletcher Jones Motorcars and Crevier BMW, the No. 1 and No. 2 auto dealers on the Journal’s list, saw a 3% and 10% drop, respectively, in new car sales.
It wasn’t a good year for Jeep sales, either.
Tuttle-Click Chrysler Jeep Dodge Ram Irvine experienced a 27% drop to $68.5 million in sales.
Many of the Toyota dealers on this year’s list recorded sales growth, which appears to be driven by increases in new cars sales.
AutoNation Toyota Buena Park, for example, saw the highest increase in volume, capturing a 57% jump to $204.7 million for the 12-month period. The Toyota location in Buena Park reported a 79% increase in new cars sales, as the brand continues to be a fan favorite in Orange County.
As of August, Toyota and Tesla are the top two brands driven in OC as of August, according to the Orange County Automotive Dealers Association.
Trading Dealerships to New Owners
Four dealers in OC were sold since last year, bringing new owners to the list for the first time.
David Wilson closed on his biggest sale ever in March when Wilson Automotive Group sold its two area Lexus dealers, Newport Lexus and Tustin Lexus, to Houston-based Group 1 Automotive.
Group 1 would not disclose financial figures for the dealers.
Elmore Toyota became Beach Cities Toyota Westminster in late 2023 when Judith Elmore sold the location to Pat Lustig’s Automotive in November. The new owner reported sales volume of $95 million for the 12-month period.
Honda World Westminster was bought by Gee Automotive Holdings from William Piercey and Chris Bruno in April.
