Bragging rights for Orange County’s top luxury auto brand could be up in play this year.
Based on the trend for most of 2006, Toyota Motor Corp.’s Lexus could tie or even surpass longtime king Mercedes-Benz here in 2007, according to numbers from the Costa Mesa-based Orange County Auto Dealers Association.
Through November, Mercedes held a 660 auto lead over Lexus in new registrations, a barometer of sales.
The momentum appears to be in Lexus’ favor: It saw sales rise 12% to 9,161 autos through November. Mercedes grew 5% to 9,820 autos during the period.
Nationally, Lexus already has surpassed Mercedes and BMW.
“That trend has come our direction a bit,” said Jack Nerad, market analyst for Kelley Blue Book in Irvine.
It’s not a given. Mercedes, part of DaimlerChrysler AG, is entrenched here, thanks to Fletcher Jones Motorcars in Newport Beach, the county’s largest dealership and the second largest nationally after El Monte’s Longo Toyota.
Fletcher sold 1,000 new and used autos in December alone, general manager Garth Blumenthal said.
This year, Fletcher forecasts a 10% sales gain.
The brand stands to get a boost in spring with the opening of Mercedes-Benz of Anaheim’s new 6-acre dealership along the Riverside (91) Freeway, which could draw buyers from Corona and elsewhere in western Riverside County.
Lexus also has some help. The summer’s opening of Newport Lexus across from Fletcher Jones has boosted sales here.
The dealership has taken a cue from Fletcher, stressing hotel luxuries and other pampering.
Newport Lexus isn’t taking all the credit.
“We are pleased with our progress in six months,” general manager Allen Moznett said. “But we haven’t exceeded our expectations.”
Two other dealerships played a part. Tustin Lexus, which, like Newport Lexus, is owned by Orange-based David Wilson’s Automotive Group, and Lexus of Westminster both date back to the debut of Toyota’s luxury line.
Dealership Expanding
Tustin Lexus has tripled in size since it opened in 1989 and is No. 8 in sales among Lexus dealerships nationally.
Lexus of Westminster, the brand’s top-ranked dealer for customer satisfaction in OC, is ready to open a new showroom.
John Oh, general manager for Lexus of Westminster, said it has sold more cars since Newport Lexus opened. December was one of its best months ever, he said.
The luxury horserace here used to be between Mercedes and BMW.
In 2005, BMW was in the No. 2 spot and seemed most likely to challenge Mercedes.
Since, local BMW sales have been slipping, despite record national sales in 2006.
The brand is strong here, though now it’s No. 3, about 1,500 autos behind Lexus through November.
BMW’s registrations were down 2.7% for the year through November to 7,666 autos.
Nationally, BMW is second to Lexus and ahead of Mercedes.
BMW’s 3-Series came out late last year and could boost sales this year.
Santa Ana-based Crevier BMW, one of the nation’s top BMW dealers, saw flat sales in 2006. Revenue was up with more used auto sales and service and parts, owner Don Crevier said.
Newport Lexus’ debut also may have had an impact, he said.
This year, Crevier said he expects higher sales than in 2005 or 2006.
“January is usually slow, but it started out strong,” Crevier said. “I think a lot of it is new product.”
Crevier BMW is in the process of a $33 million expansion at the Santa Ana Auto Mall, expected to be finished in 2008.
Buena Park’s Shelly BMW, the county’s third largest BMW dealer owned by Damon Shelly, also is remodeling and expanding.
Other dealers are upbeat about 2007.
Mercedes-Benz of Anaheim has been on a roll for the past four months, said Tom Cregg, director of marketing.
Sales last month at Lexus of Westminster hit a dealership record, according to Oh.
“It’s going to be a real tight race,” he said.
