It’s tough enough to be an auto dealer in this economy.
It could be even tougher to be a Saab dealer. Saab Automobile AB’s parent, General Motors Corp., is on the weakest financial footing of all the major automakers and is looking to sell the Swedish brand.
But Steve Coleman, owner of Saab of Orange County, which includes Saab of Mission Viejo and Saab of Santa Ana, isn’t gloomy. He said he sees a possible separation from General Motors as a good thing.
A new owner could re-energize the brand, Coleman said.
“I’m somewhat hopeful and optimistic,” he said. “Frankly, GM never really did Saab any favors.”
GM, the largest U.S. automaker, has an uncertain future. Some want the company to carry on with government cash infusions. Others want it to restructure through bankruptcy. Still others would like to see it fold.
The automaker is said to have five prospective buyers for Saab.
The Swedish government said it is willing to invest in Saab, according to Coleman. But it wants a private investor first.
The Saab brand sells to a niche market and is more popular in colder climates. Saab is short for Svenska Aeroplan AB, or Swedish Aircraft Ltd. Saabs used to be made by Saab AB, an aerospace company that once made military jets.
The U.S. accounts for 25% of Saab sales, Coleman said.
If Saab gets a new owner, it has three models ready for production: the 9-3X, a redesigned small sedan; the 9-4X, a small sport utility vehicle; and the 9-5, a larger sedan.
Coleman has the Orange County market to himself. The county never has been a large Saab market, he said.
“We’re used to operating on small volumes,” he said.
Both of his dealerships are well financed, Coleman said.
“As long as Saab is around, we’ll be around,” he said.
Because the news about dealers tends to be bad, Coleman said he spends a lot of time reassuring his staff.
“Let’s not worry about things that are out of our control,” he said he tells them. “I haven’t had a single employee leave.”
Coleman has 50 workers, many of whom have worked at the dealer for several years. Between his two dealerships, he’s only had to let one person go.
“We all took pay concessions to make that happen,” he said.
Sales have been hit by the loss of buyers with average credit who now are unable to get financing. Worse, GM’s financing arm put an end to leasing.
“That hurt,” Coleman said.
Leasing used to be 75% of Coleman’s business, he said.
For now, buyers should consider saving for a down payment.
“The banks want to see more equity,” Coleman said.
Like others, Coleman said he’s selling more used autos.
“Most dealers these days are focused on used cars,” he said.
Bikini Move
Newport Beach-based Beach Bunny Swimwear has moved into the former Lam-borghini showroom in Newport Beach and is expected to open next month.
Beach Bunny Swimwear makes a racy line of swimwear.
Former model Angela Chittenden is the designer and owner of the company. Beach Bunny sells its line to other stores and recently opened its first store in Scottsdale. Diane’s Beachwear in Corona del Mar carries the Beach Bunny line.
Mall Art
Buena Park Downtown is set to feature the pop art work of Brazilian artist Romero Britto. The colorful, six-foot tall geometric sculptures will dot the mall through April 12. Some community events are tied to the public art show.
Correction
The March 2 column should have said that Y-3 is set to open at Fashion Island in April, selling sneakers and accessories for men and women. The store is a venture of German sportswear and shoe maker Adidas AG and Japanese fashion designer Yohji Yamamoto. The store is the first Y-3 on the West Coast.
