Orange Coast Chrysler Jeep Dodge, now in two spots on Harbor Boulevard in Costa Mesa, is consolidating to just one.
The move is part of an effort by automaker Chrysler LLC, which New York-based Cerberus Capital Management LP bought last year.
Chrysler, which struggled under former owner DaimlerChrysler AG, initiated the plan earlier this year to shrink the number of dealers by combining brands together.
The effort is known as project genesis.
Jon Gray, president of Orange Coast Chrysler Jeep Dodge, said he’s not sure what he’ll do with the other lot. He could use it for business, sell or develop it.
“Our first priority has been the merger,” he said.
The dealership’s main building will be remodeled and expanded. It will have a customer lounge and other amenities.
The service area will double.
With the consolidation, the number of workers will not necessarily be reduced, Gray said.
“We’re not planning on shrinking our business just because we’re shrinking our address,” he said.
The consolidation costs are on Orange Coast’s dime. The automaker offers incentives to make sure it succeeds, he said.
Eventually, the consolidation should save money on overhead costs.
So far, Gray is pleased with how Chrysler is improving its brand.
“It’s been wonderful,” he said. “They are certainly swinging for the fences as quickly as possible. They’ve cut a lot of the costs that have burdened us.”
One example: Chrysler dealers are no longer charged a fee to locate another color vehicle for a customer, he said.
In store for dealers are more small autos, Gray said.
Dealers got a peek at models to come.
“There is an onslaught of more fuel-efficient vehicles,” he said.
There always will be a need for sport-utility vehicles but they will be the smaller “crossover” variety, according to Gray. Families with two to three kids can’t fit into a small vehicle, he said.
And there’s never been a better time to buy a big auto, he said. Orange Coast has some large trucks for as much as $10,000 off.
Gray expects Chrysler, known for its snazzy designs,the PT Cruiser, Dodge Challenger, Chrysler 300 and the Wrangler,to do well making their small vehicles appealing.
“Design has never been the issue,” he said.
Dealers are hoping that a small car lineup will boost sales.
It’s tough for auto dealers right now. Gray expects to see a lot more dealers closing.
“That’s brutal,” he said. “An owner’s dream is over.”
But Orange Coast, founded by Gray’s father in 1981, won’t be among the fallout, he said.
Ticketmaster Malls
Block at Orange and Laguna Hills Mall are two of 50 Simon Property Group Inc. malls around the country that will be selling Ticketmaster tickets at its Simon’s Gift Services Booth.
The ticket sales won’t be available at Simon’s other Orange County malls,Westminster Mall, Shops at Mission Viejo and Brea Mall.
Steve & Barry’s BK
Steve & Barry’s LLC,heralded for its business model of keeping prices low and yielding small profits,has filed for bankruptcy protection.
The New York-based retailer has stores at the Block at Orange and Buena Park Downtown. The stores are among the most popular for the malls.
Steve & Barry’s hasn’t announced store closures yet. It has 270 stores in all.
The company sells most everything in its stores for less than $11 and it gets celebrities such as actress Sarah Jessica Parker and NBA star Stephon Marbury (Starbury shoes) to lend their names to designer lines.
The company has had all kinds of good publicity, including the well-covered launch of its Starbury shoes and the hawking of its clothing by celebrity designers.
Not too long ago, the company’s owners, Steve Shore and Barry Prevor, appeared on a “60 Minutes” segment. The company appeared mighty.
But it looks like the current tough retail market doesn’t lend itself to slim margins.
The company said the high cost of materials and gas spurred the filing, according to a story in Women’s Wear Daily. High fuel costs have been a double whammy,raising the cost of goods and keeping people away from stores.
The company saw high sales but they weren’t enough to keep it from defaulting on a loan: “The company has performed very well from a sales perspective, with total sales in the first five months of 2008 up 70%, average store sales up 25% and comparable store sales up 15%. In particular, its exclusive branded lines of merchandise created with high-profile entertainers and athletes have performed exceptionally well,” the company said.
