Five Orange County auto dealer groups made Ward’s Dealer magazine’s MegaDealer 100 list.
The list compiles the nation’s top dealer groups by revenue from new and used auto sales, parts, service, finance, body shop work and wholesale business.
The locals on the list: No. 15 David Wilson Automotive Group of Orange, No.17 Fletcher Jones Automotive Group,which is based in Las Vegas but is closely tied to OC with Fletcher Jones Motorcars of Newport Beach,No. 47 Tuttle-Click Automotive Group of Irvine, No. 67 Piercey Auto Group of Westminster and No. 86 Noarus Auto Group of Garden Grove.
Wilson Automotive, with 16 dealerships, had $1.37 billion in 2008 revenue. Wilson had $899 million in new auto sales, selling 35,428 new vehicles. It had $190 million in used auto sales, with 10,986 used cars sold.
Fletcher Jones, with 14 dealerships, had $1.33 billion in revenue last year. It had $757 million in new auto sales, selling 16,098 vehicles. Mercedes-Benz dealership Fletcher Jones Motorcars accounted for the bulk of those sales. Companywide, Fletcher Jones had $233 million in used autos, selling 7,686 vehicles.
Tuttle-Click Automotive, with 13 dealerships, had $557 million in total sales, with $274 million in new autos, selling 10,546 autos. It sold 6,131 used autos for a total of $96 million.
Piercey Auto Group, with four dealerships including Westminster’s Honda World, had $430 million in sales for 2008. Piercey had $282 million in new auto sales, selling 11,831 vehicles. It sold $57 million in used autos, selling 3,823.
Noarus Auto had $286 million in total sales. It sold 6,718 new autos for $167 million and 2,933 used autos for $50 million.
The No. 1 dealer group on the list: Fort Lauderdale, Fla.-based AutoNation Inc., with $14 billion in 2008 sales. Penske Automotive Group Inc., based in Bloomfield Hills, Mich., was No. 2 at $11 billion in revenue. No. 3 Sonic Automotive, based in Charlotte, N.C., had $7 billion in sales.
Auto Observations
So how are dealers holding up in the industry’s epic downturn? Here are some observations from dealers and experts.
Garth Blumenthal, general manager of Fletcher Jones Motorcars: “People are getting tired of sitting on the sidelines.”
He said he’s seeing an uptick in high-end sales, such as for the Mercedes-Benz S-Class. Fletcher Jones also is scouting luxury dealerships to buy. The dealer hasn’t cut any of its charitable giving and has started a program for schools.
David Wilson, owner of Toyota of Orange, Newport Lexus and other dealerships, commented on the future of small cars: “The American public isn’t going to buy the itty bitty small cars.”
Wilson’s Puerto Vallarta, Mexico, dealership got hit hard with the outbreak of the H1N1 virus, better known as swine flu, he said.
Wilson’s upscale Newport Lexus dealership is doing well, he said. The profit year-to-date is three times what it was last year, according to Wilson.
Jack Nerad, analyst with Irvine-based auto market tracker Kelley Blue Book Co.: “Luxury will bounce back. In downturns, people don’t like to spend ostentatiously.”
Store Closings
2008 was a year of contraction for retailers.
Nationally, 6,707 stores closed while 5,662 opened, according to a report by real estate tracker CoStar Group Inc.
The trend could change this year, as CoStar predicts more store openings than closures.
In 2009, 3,968 stores are forecast to open nationwide with 3,591 closures.
Some of the stores that are opening this year: GameStop, Wal-Mart Supercenter, Target and Dollar Tree.
Retailers expected to close stores this year include Blockbuster Inc., Office Depot Inc., Rite Aid Corp. and Zale Corp.
Several clothing retailers are expected to reshuffle stores this year.
AnnTaylor Stores Corp. is expected to open 10 Ann Taylor stores, four outlets and close 29 Loft stores. Charming Shoppes Inc., which runs Lane Bryant and Fashion Bug stores, plans to open six stores and close 100. Jones Apparel Group Inc. is set to close 229 stores. Anthropologie Inc. is expected to open 15, as is Free People Clothing Boutique.
Pacific Sunwear of California Inc., an Anaheim-based operator of mall stores selling surf-inspired clothes, plans to open three stores and close 50 as part of its ongoing turnaround efforts.
New Kid on the Block
The Block at Orange has a new general manager, Blake Windal.
He replaces Steve Schwartz. Windal previously worked at Irvine Company, where he oversaw Irvine Spectrum Center operations. Prior to that, Windal worked at Universal CityWalk.
