Fletcher Jones Motor Cars still rules. But the Newport Beach Mercedes-Benz dealer has a new challenger at its heels.
In the past year, Santa Ana-based Crevier BMW gained some ground on Fletcher, growing sales 7% to $302 million, according to this week’s Business Journal list.
Crevier BMW moved up to the No. 2 position on our list, pushing Mercedes-Benz of Laguna Niguel down to No. 3.
Fletcher probably isn’t worried just yet. The dealership, the largest Mercedes seller in the country, grew sales 7% last year to $569.2 million, nearly twice what Crevier BMW posted.
The gap was closer in the number of actual autos sold. Fletcher sold 8,513 new and used vehicles, while Crevier sold 5,509.
In all, the 25 dealers on the list sold some 91,000 new and used autos.
The list ranks Orange County’s 25 largest auto dealers by 2005 sales, including new and used auto sales and service revenue.
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This year’s list is expanded to include five more dealers than last year.
For the most part, the dealers reported sales figures. Those that the Business Journal estimated were: Lexus of Mission Viejo and Lexus of Westminster, both tied at No. 10, and No. 20 Norm Reeves Honda in Huntington Beach.
Combined, the top 25 dealers boosted sales 4% to $4.2 billion in 2005. They employed 948 people, about the same as a year earlier.
For 2004, the 20 dealers on our list reported a 3% sales increase to $3.8 billion.
Luxury auto dealers dominated the list.
Fletcher Jones appears to have gained business at the expense of other Mercedes dealers. Mercedes-Benz of Laguna Niguel, No. 4 House of Imports in Buena Park and No. 7 Caliber Motors Mercedes-Benz Anaheim Hills saw declines last year.
Mercedes-Benz of Laguna Niguel reported a 3% decrease in sales to $294 million. House of Imports had a 4% fall to $260.3 million. Caliber Motors was off 10% to $200 million.
‘Outperforming Crevier’
Caliber Motors is expanding, building a showroom on 5 acres off the Riverside (91) Freeway, about a mile away from its La Palma Avenue facility.
The goal is to outperform Crevier, he said.
Fletcher Jones and Crevier are spending big on expansions.
In the past year, Fletcher Jones spent roughly $20 million to expand its showroom and services. The dealer opened another showroom near its main hub on Jamboree Road and Newport Beach’s Back Bay.
This summer, Fletcher Jones plans to open an airport shuttle hub at Bristol and Birch streets.
The third piece of the expansion is a 121,500-square-foot service facility on Armstrong Avenue in Irvine, which can service up to 120 cars.
Crevier is in the process of a $33 million expansion at the Santa Ana Auto Mall, which will grow the dealership from 50,000 square feet to 200,000 square feet when all the work is done in 2008.
The new three-story showroom will include a main floor, a new auto display and an underground showroom for Mini Coopers.
Next month, a two-story used car facility and the six-level parking ramp is expected to be finished.
The last phase of the project is set to expand the service and parts departments.
Change is in the works for next year’s list.
A swanky $65 million Lexus dealership from David Wilson is set to open this year in Newport Beach, across from Fletcher Jones.
Wilson, who also runs No. 6 Toyota of Orange and No. 8 Tustin Lexus, said he expects the Newport Beach Lexus dealership to do about $250 million in sales in its first full year of operation. By 2010, he projects $500 million in yearly sales.
2005 was a strong year for luxury auto sales. No. 5 Irvine BMW, part of Irvine-based Shelly Automotive Group LLC, reported a 9% rise in sales to $242 million.
The company’s other BMW dealership, No. 12 Shelly BMW of Buena Park, boosted a 4% gain to $133.4 million.
Shelly BMW is undergoing a $20 million makeover, which includes an expanded showroom and service area.
No. 13, Newport Auto Center, which sells Bentley, Porsche and Audi, upped sales 12% to $131.5 million. Tustin Lexus, for now the county’s largest seller of the luxury brand from Toyota Motor Corp., reported a 10% increase in sales to $182.5 million.
Several Toyota dealers on the list,there are eight,saw higher sales last year.
Toyota of Huntington Beach, No. 15, reported 19% higher sales at $127.5 million. No. 16 South Coast Toyota in Costa Mesa, also owned by Wilson, reported an 18% rise in sales to $125.2 million.
Toyota of Orange, the county’s largest Toyota dealer, increased sales 10% to $224.1 million. No. 17 Toyota of Garden Grove, a newcomer to the list, was up 7% to $115.4 million.
Big Gain at Hardin
No. 22 Hardin Honda of Anaheim reported the biggest percentage rise in sales, growing 28% to $96.9 million.
The biggest decline came from No. 25 Tuttle-Click Inc., which sells Chrysler, Dodge and Jeep autos at the Irvine Auto Center.
The dealership said sales were down 20% to $77.2 million last year.
Tuttle-Click sold off a Hyundai dealership and returned a Mitsubishi dealership to Cypress-based Mitsubishi Motors North America Inc. in the past year or so, accounting for the decline, said Chris Cotter, president of Irvine-based Tuttle-Click Automotive Group.
Tuttle-Click is new to this year’s expanded list. Others include: Hardin Honda, Norm Reeves Honda Huntington Beach, No. 23 Power Toyota Buena Park and Allen Cadillac GMC in Laguna Niguel at No. 24.
Power Chevrolet Irvine, No. 10 on last year’s list, didn’t qualify this year after restructuring.