Claus Ettensberger’s luxury auto customizing business in Irvine counts Gov. Arnold Schwarzenegger, Sylvester Stallone, Tom Cruise and Denzel Washington as some of its customers.
But it’s Ettensberger’s non-celebrity clients that he’s seeing less of.
“They’re not spending now, or are less likely to spend,” Ettensberger said.
Irvine-based Claus Ettensberger Corp. outfits luxury autos, such as Mercedes-Benz, Bentley and Lexus, with fancy wheels including its own Claus Ettensberger line, which fits on any auto.
CEC also builds faster engines and adorns luxury autos with stylish interior and exterior accessories, such as suede leather headliners and carbon fiber steering wheels.
The company’s customization work ranges from putting on a set of wheels for $3,000, to installing an interior pedal kit to a full-blown Brabus conversion for Mercedes-Benz, which can cost as much as $80,000. Brabus, a well-known luxury tuner in Germany, has a line of custom wheels and other parts specifically for Mercedes-Benz vehicles.
“What we really sell is fashion,” Ettensberger said.
A Back Seat
But when economic downturns happen, fashion takes a back seat to practicalities. His business largely has been affected by the woes of the domestic automakers, which have trickled down to dealers, one of his biggest customers.
The tanking sport utility vehicle business in particular has helped push sales at CEC down by about 30% in 2008 compared to 2007.
“Our sales for the SUV wheels have slowed down tremendously,” said Ettensberger, who declined to disclose overall sales.
Ettensberger imports custom wheels and parts for Porsches, BMWs and Mercedes-Benzes from Europe, where the euro is stronger than the dollar. He’s had to raise prices to combat that, though he’s had some relief with the stronger dollar of late.
Ettensberger also cut advertising and laid off three of about 40 workers, who are in Beverly Hills and Irvine.
He got a cash boost from selling his 14,000-square-foot Newport Beach building to Newport European Motorcars. Ettensberger didn’t disclose the sales price, but said the offer was too good to pass up.
Ettensberger moved his shop to Irvine, where he’s leasing for a year to see how well his business does in that location. It’s the only location that he leases. He owns his other two buildings in Miami and Beverly Hills.
Ettensberger, who hails from Germany, caught the car bug early.
As a boy, he had Mercedes-Benz posters on his wall and a neighbor supplied him with Mercedes marketing goodies.
“I always customized everything I had from my bicycle to my mopeds to my motorcycles,” he said.
He began customizing luxury autos in Germany in 1983.
In 1987, when he was 23, a Mercedes-Benz importer asked him to set up the luxury tuner business in California.
“I only wanted to stay for two years, but as you can see I’m still here,” he said. “Once you get the California bug you can’t leave.”
Ettensberger opened the Orange County office in 2006, when he acquired Brabus USA LP. CEC is the holding company.
In addition to Brabus, CEC imports other lines including TechArt for Porsches, AC Schnitzer for BMWs and Mini Coopers and Novitec for Ferraris. CEC also sells Antera brand wheels from Italy.
TechArt is the biggest line, he said.
CEC customizes 30 to 50 autos a month in OC and triple that nationwide.
Fletcher Jones
Fletcher Jones Motorcars in Newport Beach is one of its largest customers. Last year, CEC did nearly $1 million in sales with Fletcher alone.
Fletcher Jones pays CEC to convert Mercedes-Benz cars into Brabus autos, which adds $30,000 to the cost of the auto, said Garth Blumenthal, general manager for Fletcher Jones. People who appreciate racing like the Brabus additions, which give it a wider and more muscular look, he said.
CEC also does indirect business with other dealers. It sells wheels to wheel and tire stores, which then sell to a number of dealers.
Ettensberger said this year he’ll have to fight for every customer.
“There’s business out there,” he said. “We have to entice the customer to come and buy. Everyone wants a deal.”
But Ettensberger sees an upside.
“It weeds out the weak competition,” he said. “In the long run, we hope that we are the surviving party and that we are coming out better and stronger than ever before.”
