Hyundai Motor America Inc.’s assurance program, which allows buyers to return a vehicle within a year if they can demonstrate certain economic hardships, has helped dealers.
“It’s turned into extra sales,” said Jared Hardin, general manager of Hardin Hyundai in Anaheim.
Fountain Valley-based Hyundai, part of South Korea’s Hyundai Motor Co., saw sales rise 14% in January, the first month of the program, versus a year earlier. Sales were down 1% in February.
The sales gain in January reversed months of decline during one of the worst slumps in the auto industry in recent memory. In December, Hyundai saw U.S. sales drop 48%.
Hyundai’s January and February were much better than those of many other automakers.
Irvine-based Mazda North American Operations saw sales decline 27% to 15,420 vehicles sold in January compared to a year earlier. It was down 29% in February.
Cypress-based Mitsubishi Motors North America Inc. was down 34% from a year earlier with 4,730 vehicles sold in January. The automaker slumped 51% in February.
Hyundai customers often have a lot of questions about the assurance program because its advertising doesn’t offer a lot of detail, Hardin said. Sales people are armed with information, he said.
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Christian Louboutin Marie Antoinette shoes: South Coast Plaza sold all three of its $6,295 pairs |
What’s pressing dealers now is uncertainty about how new state taxes might affect auto sales. California sales tax will go up from 7.25% to 8.25%, a 14% increase, in April. Vehicle license fees will almost double from 0.65% to 1.15% in May.
“That’s the next battle that we have,” he said. “We’re kind of in a little bit of a spiral.”
Before the state taxes go up, Hardin expects the dealership may get a few extra customers trying to take advantage of lower prices.
Hardin doesn’t think that the stimulus package’s sales tax deduction on new autos will do much to offset the rise in California fees and taxes.
“People are more concerned about what it’s going to cost me today,” he said.
A Small Upswing
Lula Halfacre, owner of Traditional Jewelers at Fashion Island, sees an upside to being a small business during a recession.
Small businesses don’t have to meet the demands of always besting quarterly results, she said. They also can be more flexible and get more creative in downturns than many big companies can.
Her company, which she opened with her late husband in 1979, also has its established customer base to lean on.
She recently teamed with her neighbor, who owns Placentia-based Sierra Madre Vineyard, to hold a wine tasting and charity event at Traditional Jewelers that helped bring in customers.
Halfacre also holds VIP dinners for longtime customers and continues to push special occasions such as Valen-tine’s Day.
“We had a fairly good Feb-ruary,” she said.
Still, the economy is the most challenging she’s ever seen.
“Newport Beach and Orange County are generally protected from some of this,” she said. “But this recession has touched us more than in the past.”
Traditional Jewelers hasn’t laid off workers. But it has cut back employee hours.
It’s also mixing up the products it carries.
The jewelry seller is freshening up some of its pieces by redesigning or resetting them, according to Halfacre.
“It’s kind of like cleaning out your closet,” she said.
Diamond prices have come down a bit, but Traditional Jewelers doesn’t think of its jewelry as a commodity, so it hasn’t lowered its prices. Taking design into consideration, it prices every piece like it would art.
It might have a few sales, but don’t look for any blowouts, Halfacre said.
Block Updates
Block at Orange still has a couple of big holes to fill.
No replacements have been named for Hilo Hattie and Steve & Barry’s, which both closed in January.
But construction has begun on Neiman Marcus’ Last Call store, which replaces Ron Jon Surf Shop. It is slated to open in the fall.
Last Call sells reduced women’s, men’s and children’s clothing, shoes and accessories from Neiman Marcus stores and Neiman Marcus Direct
Colorado-based Crocs Inc. is scheduled to open a store this month. L.A. Italian Kitchen is scheduled to open in early spring.
What Recession?
Christian Louboutin at South Coast Plaza recently sold all three pairs of its frilly Marie Antoinette shoes,at $6,295 a pair.
The Los Angeles Times quoted a fan as saying, “Take away my spa, my driver, but not my Louboutins.”
Designer Christian Louboutin visited the store to promote the new line of shoes. Only 36 pairs were made. The South Coast Plaza store says the New York store still has a few available.
