| ESCONDIDO: Auto dealers spending millions on renovations Auto dealers have spent an estimated $10 million to $15 million during the last two years on a diverse selection of expansion and renovation projects that aim to boost sales and make Escondido the region's premier place to buy a car, dealers and city officials said last week. Whitson said local dealers typically get some financial incentives from the automakers, but that more capital is needed. "The dealer typically still has to go to a bank on their own and get a loan," he said. 3 million last year and has continued that upward trend during 2012, city officials said. But it is going to keep the auto park looking modern. The renovations may also have played a role in the recent rebound of new car sales in Escondido, which supply the city millions in sales tax revenue that pays for firefighters, libraries and several other expenses. The city's annual sales tax revenue from new vehicle sales dropped from more than $6 million to just over $3. Abed said the City Council's pro-business policies, which have included reducing some fees and accelerating the approval process for projects last year, have also played a role in the dealerships deciding to expand and renovate. "I think the major businesses in Escondido are feeling encouraged and more confident in the city," said Abed, noting that Westfield North County recently announced plans to spend $55 million renovating the 83-acre regional mall it operates in south Escondido. "It's an overall investment of anywhere from $10 million to $15 million," said Brecht. He said dealerships owned by large corporations are typically less concerned because they have no trouble finding the capital needed for renovations. "It's the family that's had the local Chevy store for 70 years that's going to have a harder time," he said. Brecht said that's essentially what happened with Gladys Young. "Bigger showrooms equals more products," Brecht said. "We're always happy to see reinvestment in the dealerships," said Redlitz. The trend of factory-mandated dealership upgrades has gained momentum rapidly in recent years, according to a study by the National Automobile Dealers Association published in February. Whitson said the trend has created turmoil. "It's a very, very hot topic in the dealer world right now," he said "There's a lot of animosity. Barbara Redlitz, the city's planning chief, said city officials have been pleased to see so many dealerships getting enlarged and updated. The North County Cadillac-Buick-GMC project has been a priority for the city, because the dealership sits at the eastern entryway to the auto park. Turmoil among dealers David Whitson, an auto industry analyst for Morningstar Inc. In addition, Quality Chevrolet got approval from Escondido's Planning Commission last week for an extensive remodel that will include adding a 560-square-foot delivery area to the showroom building. In spite of why the dealers have expanded and renovated, local dealer Tim Brecht said Escondido residents ought to be pleased to see so much money being invested in the 29-year-old auto park and some of the dealerships outside the park. North County Cadillac-Buick-GMC completed a major renovation project this spring; Brecht Mini changed its look from gentle white to sleek black last month; Mossy Nissan rebuilt the dealership's facade in 2011; and Mercedes-Benz of Escondido underwent extensive renovations in 2010. |
Sunday, 3 June 2012
ESCONDIDO: Auto dealers spending millions on renovations
