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Scion Dealers Have a Hit; Mercedes Feels BMW’s Tug

Scion dealers have cause to celebrate,sales in Orange County grew a whopping 279% for the year through October from the same period a year earlier, according to the Costa Mesa-based Orange County Auto Dealers Association.

“Scion has been a fantastic success for Toyota,a homerun,” said Robert Hill of Deloitte Consulting LLP’s Asia-Pacific automotive practice in Santa Ana.

Scion, which means “descendant of,” is Toyota Motor Corp.’s brand aimed at 20-somethings. The plan: get younger buyers into a Scion and later a Toyota or a Lexus, Hill said. The average age of a Scion buyer is 24, he said.

July was the first full month of nationwide sales for all three Scion vehicles: the xA subcompact, xB utility vehicle and the latest tC sports coupe. Toyota targeted Southern California first, followed by the Southeast and Northeast.

For September and October, Scion sales in OC were up 124%. Dealers sold 486 Scions, up from 217 for the same months a year earlier. The brand launched in early 2003.

What is it about the Scion that appeals to the younger buyer?

“It’s highly accessorized,” Hill said.

Scions have advanced stereos and hookups for digital music players. Buyers can pick the rims and choose from a variety of colors.

Following Scion is Suzuki, which had sales growth of 160% for the year through October. For September and October, OC Suzuki dealers sold 169 cars, up from 51 a year earlier, a 231% gain.

Japan’s Suzuki Motor Corp., which has its U.S. base in Brea, is on a marketing push. The company is remodeling dealerships for a more modern look.

Things aren’t so good for Mitsubishi Motors Corp., which has its U.S. base in Cypress. It saw the biggest decrease in sales for the year through October, falling 22%.

“They are struggling,” Hill said of Mitsubishi.

Finbarr O’Neill, who came on to run Cypress-based Mitsubishi Motors North America Inc. last year after growing Hyundai Motor America Inc., has made some headway on a turnaround. But he needs more time and money from Japan, according to Hill.

Sales for Mercedes-Benz dealers slowed in OC through October, posting a gain of less than 1%. In September and October, 1,506 Mercedes were sold, down 12%.

But the brand, part of DaimlerChrysler Corp., still is the No. 4 selling vehicle in OC in terms of the number of vehicles sold.

BMW dealers seem to be gaining at Mercedes’ expense. BMW sales grew 11% for the year through October, with 1,310 vehicles sold. Cadillac, Mazda, Nissan and Subaru dealers also saw gains through October.


Store Openings


Nathan Alan Jewelers opened at the South Coast Plaza a week ago. Up the road at The Market Place in Tustin, Linens ‘n Things has opened next to Best Buy, which moved into the old Ikea store this year. Ikea moved to Costa Mesa in 2003.


‘The O.C.’ Insider


The Business Journal’s Rick Reiff, who writes OC Insider on page 3, has some competition, if in name only.

Warner Bros. Entertainment Inc. has launched www.theocinsider.com in a bid to turn “The O.C.” into a marketable name for clothes, accessories and other items.

Visitors can pay $25 a month to access all of the site’s features and for a subscription to The O.C. Insider magazine, which features stories about music, makeup and other things seen on the show, as well as interviews with the show’s stars and fans.

While “The O.C.” actually is filmed in L.A., the magazine seeks to tie the show to the real OC. A section dubbed OC Boardwalk features beachgoers in Newport talking about themselves and the show.

“It’s not just about the show,” said Katie Sanseverino, spokeswoman for the Web site and magazine.

The O.C. Insider’s first issue has a story on local guy Joe Gerlach, inventor of the Carveboard, a more maneuverable skateboard on bigger wheels.

It also promotes Huntington Surf & Sport as the place to buy a Carveboard.

Another story talks about HomeAid, a local charity, and its whimsical playhouses that display in the fall at Fashion Island.


Seal Beach Sale


When Jeff Ramsey set out to make over a prime corner of Seal Beach, he thought he’d be running the new shops at Main Street Square for a while.

But then came LST Investments of Long Beach. It offered his Ramsey Real Estate Group $3.9 million for the newly built center. The deal was too good to pass up, said Ramsey, founder of La Jolla-based Ramsey Real Estate Group.

Ramsey bought the 8,550-square-foot building and a parking lot a year ago. He brought on tenants Javatinis Espresso, Zpizza, Razmataz Treasures and Verizon Wireless, among others.

The coveted property sits on a corner a block away from the beach.

The Main Street Square project, formerly Johns Food King Market, was the developer’s first in OC. Ramsey’s other projects include La Jolla’s Prospect Square. Ramsey said the company’s actively seeking other projects in OC.

“It’s a very competitive environment,” he said. Many of Ramsey’s rival bidders are paying more than they should for property, he said. “There’s just not a lot of value driven deals,” he said.

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