The top 34 franchised car dealers in Orange County reported more than $4.3 billion in sales last year, an 11.7% increase that marked the third annual gain in the wake of the recession.
The increase was nearly double the prior year’s gain, and OC auto dealers appear poised to extend their streak this year, with a jump of 11% year-to-date through October.
Unit Sales
Unit sales of new cars and light trucks rose 17.5% for a year-end total of 74,364 vehicles, according to this week’s Business Journal list.
There were 33,343 used vehicles sold, a 5.3% increase over the prior year.
Twenty-five of the auto dealers had increases in revenue, while one decreased. Eight were Business Journal estimates.
Fletcher Jones Motorcars in Newport Beach continued to lead the pack, with $561.9 million in sales, a 7.9% increase from 2011. The Mercedes-Benz dealership also sold more new and used cars than any of its peers, 5,954 and 2,221, respectively.
Garth Blumenthal, the dealership’s general manager, drew an analogy to sports in recapping the strong year.
“What they do in sports, they break down every play, they look at everything in great detail, to see what they’re doing right and opportunities for improvement, so our business is run the same way,” Blumenthal said.
Marketing, Advertising
The dealership, which is on track to close 2013 as its “best year ever” according to Blumenthal, also invests in advertising and marketing.
Blumenthal said he meets weekly with two Newport Beach-based marketing agencies, Green Stripe Media Inc. and Lyon Studios, to discuss strategy and check on progress.
“We are incredibly disciplined; we don’t leave things to chance. Everything is by clear design, and as a company we focus relentlessly on process improvement, what we call incremental improvement,” Blumenthal said. “And that makes all the difference, because if you keep looking (at) how you’re going to get better, and you keep working on strengthening your team and making sure your processes are guest-friendly, and you make sure your guest is at the center of every single conversation, then I think you get better day by day—just as if I’d go out and hit golf balls every day, I’d probably get better at golf.”
Crevier BMW in Santa Ana remained in the second spot on the list, with $301.6 million in revenue, trailed by Irvine BMW, which had $233.9 million, an 11.8% increase.
Hardin Buick Pontiac GMC in Anaheim, which wasn’t on last year’s list, placed 32nd and reported the biggest percentage increase in sales—40.1%—for a total of $45.6 million.
Co-owner Jared Hardin attributes the upswing in sales to the dealership’s rough new beginnings in 2011.
General Motors Co., amidst the recession, closed the 66-year-old business in 2009, along with 1,350 other GMC dealers. The dealership re-emerged in 2011, “barely getting on its feet,” Hardin said, adding that he expects an even higher increase—50%—in sales volume for 2013.
Toyota Place in Garden Grove moved up eight spots to No. 15 with a 38.5% increase in sales.
Hardin’s Hyundai operations followed with a 36.5% uptick in revenue. The dealership also posted the biggest increase in used car sales—66%—for a total of 1,164 vehicles. It ranked No. 20.
Elmore Toyota sold 2,679 new cars and light trucks for a 61.7% increase, the biggest unit increase. The dealership ranked No. 17.
Orange County car dealerships—according to the Orange County Automobile Dealers Association, or OCADA—together employ one of the biggest worker bases in the county, with more than 11,000 employees and a payroll of $590 million.
The top 34 dealerships reported a 922-strong sales force, up from 869 a year ago. Service teams grew 6%, employing 1,898 as of October.
This year’s list tracks sales for the last full calendar year at OC’s top dealerships based on revenue.
OCADA Report
The economic impact of local dealers is much greater when taking into account all auto dealers in the county.
OCADA’s 2012 Economic Impact Report shows OC’s 118 franchised new-car dealers generated $9 billion in sales in 2012, up from $7.6 billion in 2011.
They sold 173,342 new vehicles and 76,700 used vehicles during the year, the report said.
