Despite the announcement of General Motors Corp. filing for bankruptcy, automakers and dealers got some hopeful news recently.
Registrations for autos, a barometer of sales, saw the smallest decline this year.
For April, automobile registrations were down 27.5% from a year ealier to 9,142 autos in Orange County, according to an Orange County Automobile Dealers Association report.
That’s a smaller decline than in March, which saw a 34% decrease in auto registrations to 7,957 from a year earlier. Registrations declined 46% to 4,446 autos in February and 32% to 8,670 autos in January from a year earlier.
For the year through April, sales were down 34%. High-end and low-end brands have gained market share in OC. European and South Korean brands picked up market share for the year through April, while domestic and Japanese brands lost market share.
Kia, Mini Cooper, Dodge, Suzuki, Subaru, Porsche and smart car all saw boosts in registrations. Kia’s registrations were up 49% compared to a year earlier to 127 autos.
Sales have spiked considerably for Kia this year, said K.C. Heidler, executive vice president of The Kia Depot, The Suzuki Depot and Tom’s Truck Center, based in Santa Ana. Market watchers have said that consumers are attracted to relatively inexpensive Kias.
Year-to-date through April, sales for Kia were up 408%.
The dealer is expected to sell 130 autos in May. The Kia Spectra, a compact, and the Sorento, a midsize SUV, are two of the best sellers, he said.
Mini Cooper saw a 31% increase in registrations to 119 autos. Subaru was up 51.5% to 103 autos and Suzuki was up 38.5% to 36 autos. Dodge ticked up nearly 2% to 246 autos.
The smart car,the super mini car that looks like a roller skate,was up 175% to 22 autos. Mercedes-Benz of Laguna Niguel is OC’s only smart car dealer.
On the luxury front, BMW saw the smallest percent decline and registered 34 more autos than Mercedes-Benz did in April. The last time BMW surpassed Mercedes in registrations was August 2008, but this was an anomaly.
BMW registrations were down 11% to 567 autos in April. Mercedes-Benz was down 51% to 533.
Lexus saw the largest drop, declining 51% to 335 autos.
Porsche gained 15% to 76 autos.
Mini E
Crevier BMW of Santa Ana and Irvine BMW are the two OC dealers leasing the Mini E, an all-electric, zero emission auto that BMW AG is testing for possible mass production.
BMW is leasing about 450 of the Mini Es for about $850 a month through June. Crevier will be leasing 23 of those to OC residents. Sterling BMW of Newport Beach doesn’t have a Mini franchise and isn’t leasing the Mini E.
Dealers in New York, New Jersey, Germany and England will be leasing the autos to drivers who signed up online to participate in the one-year field test.
The Mini E is part of BMW’s Project i, which is designing new autos to drive in cities. It’s designed to travel about 100 miles before needing a recharge. The autos use lithium-ion batteries.
Next year, the electric auto market could heat up as new electric-powered autos hit dealer showrooms.
General Motors, now going through an expedited bankruptcy, still plans to launch the Chevy Volt, an electric auto, in 2010. Cypress-based Mitsubishi Motors North America Inc. also plans to launch an electric vehicle. Additionally, Toyota, Honda and Volkswagen dealers are expected to have new electric autos or hybrids to sell in 2010.
Bits and Pieces
Seattle-based Nordstrom Inc. is slated to open at Fashion Island next April. French cosmetic brand Clarins opened its first skin spa store inside of Bloomingdale’s at Fashion Island. Stores that have closed or plan to close at Fashion Island this year include: Babystyle, Shabby Chic, Chip & Pepper, Pottery Barn and The Body Shop Another change set to affect local malls, including Irvine Spectrum Center and South Coast Plaza, is Toys “R” Us Inc.’s acquisition of New York-based FAO Schwarz Inc., which sells pricey toys. The deal will close the mini FAO Schwarz stores inside Macy’s stores Tiffany & Co. said in its fourth-quarter conference call in March that South Coast Plaza’s store is its largest branch store by sales volume. Its New York flagship store is tops in sales revenue. Tiffany & Co. called 2008 its worst year since it became a public company 21 years ago. Its New York store, which represents 10% of its sales, saw a 9% sales decline in 2008 A couple of businessmen have taken to selling prosperity online,in the form of a rock. The Original Prosperity Rock, sold online by Laguna Beach-based Denny Freidenrich and his business partner, Nevada dentist Jack Harrington, is similar to the Pet Rock, a novelty hit from the 1970s. For $7.35, Freidenrich says buyers get a packaged rock and access to a Web site that provides links to employment resources. Freidenrich also expects to make money through site advertising as it increases the number of visitors to the site.
