Damon Shelly, head of Irvine-based Shelly Automotive Group LLC, has named a vice president of operations to oversee his five dealerships.
Shelly appointed Mi-chael Chadwick, general manager of his Irvine BMW dealership, to the newly created position.
Shelly said he could use the help. In the past four years, the group has gone from $250 million in sales and 240 people to about $500 million and 550 workers now.
Chadwick plans to start his new duties once he finds a replacement for himself at Irvine BMW.
Shelly recently opened Shelly Volvo in Buena Park next to its Shelly BMW dealership. Shelly BMW is getting a $20 million makeover, including an expanded showroom and bigger service area.
Shelly’s other dealerships are Irvine Mini, Long Beach Mercedes-Benz and Santa Monica Infiniti.
Auto Dealers: Fifth of Retail Sales
No wonder politicians love auto dealerships. They accounted for 20% of retail sales in California last year, according to the Sacramento-based California Motor Car Dealers Association.
The association has about 95% of the state’s dealers as members.
California’s 1,575 new-car dealers sold $96 billion in 2004 and employed nearly 150,000 people, according to the association.
Orange County has a good chunk of the state’s new-car dealers. About 8% of them are in OC. The top 10 dealers in OC pulled in $2.4 billion in sales for the 12 months ended June 30, according to the Business Journal’s most recent list of auto dealers here.
The combined payroll at the state’s dealerships was $9.4 billion last year, according to the association. Dealers sold an estimated 1 million vehicles in 2004, worth $62 billion. They sold slightly more trucks than cars at 51% to 49%.
In 2004, the average California dealership sold 1,227 vehicles. But the busiest dealerships here easily did twice that. Power Chevrolet in Irvine, for one, sold 3,055 vehicles for the 12 months ended in June. Elmore Toyota in Westminster sold 3,243 new autos during the same period.
Scion Icon
Toyota Motor Corp.’s Scion tops registrations of new vehicles for 2004. Scion grew 230% in 2004 vs. 2003, according to the Costa Mesa-based Orange County Automobile Dealers Association’s Auto Outlook report.
For the month of December, Scion’s sales were up nearly 86% in the county to 223 vehicles, the biggest percentage gain.
The next biggest jump in sales was Suzuki, which grew 160%. Porsche is making a comeback, growing 39.5% in the county. Rounding out the top 10: Nissan, 39%; Mazda, 39%; Chrysler, 34%; Acura, 33%; Cadillac, 26%; Land Rover, 22% and BMW, 20%.
The decliners: Mitsubishi, down 28%; Saturn, 25%; Hummer, 18%; Buick, 18%; Mercury, 14%; Ford, 13%; Isuzu, 13%; Hyundai, 11%; Jeep, 10% and Jaguar, 8%.
Retail Empire
When the numbers for 2004 come in, the Inland Empire of San Bernardino and Riverside counties is likely to top OC in taxable retail sales for the first time, according to Jack Kyser, chief economist for the Los Angeles County Economic Development Corp.
OC is projected to have $35.3 billion in retail sales, just a hair behind the Inland Empire’s $35.7 billion, Kyser said.
“It’s a landmark,” for the Inland Empire, Kyser said. “They feel quite proud of it.”
The Inland Empire wants some of what OC has,Nordstrom and other upscale shopping. In the Inland Empire there only are two Nordstoms, Kyser said. OC has four.
Known for warehouses, the Inland Empire has had difficulty attracting stores and is underserved for its population size, Kyser said. But the area’s residents, many who commute to work in OC, are demanding more. Many have fled OC for cheaper housing. In 2004, the Inland Empire had a population of 3.7 million to OC’s 3 million.
And the area has grown more diverse, Kyser said. The Coachella Valley has had success with Indian casinos and a new shopping center, Victoria Gardens. The mall includes J.C. Penney and Macy’s and is mixing civic activities and shopping, he said.
Coachella also is one of the few areas where Wal-Mart’s superstore has been allowed to open. Ontario International Airport also is growing.
Store Moves From Fashion Island
Here’s a switch. The Ultimate Invitation has moved from Newport Beach’s Fashion Island to the nearby Crystal Cove Promenade. The stationery store is one of those being relocated to make way for the expanded Barnes & Noble at Fashion Island. Usually, stores graduate from smaller centers such as Crystal Cove to Fashion Island.
