New Oakland Toyota/Scion megadealer closes after two months
Just two months after opening the doors to its brand-new, 200,000-square-foot dealership, Superior Toyota/Scion of Oakland is no more. The giant automotive retailer, with more than 40 service bays and as many as 1,200 cars on the lot at a time, closed last week after Nissan pointed at the economy and then pulled Superior's financing (although the dealer sold Toyota and Scion products, Nissan provided the loan for the new $36 million building). Without credit, the Superior Auto Group dealership was unable to do business. "I can't buy any more cars. Can't sell anything. The cars are still on the lot, but Nissan owns them now," said owner Michael Kahn. The megastore in Oakland wasn't the only one to go dark. All told, Superior Auto Group closed nearly a dozen sister dealerships throughout California last week. Thanks for the tip CPT!
[Source: Contra Costa Times]
Reader Comments (Page 1 of 4)
Robert K. 9:17AM (3/01/2009)
Wow, so you base your whole business on securing financing from one of your competitors, and then you're surprised when they pull the plug on you? Doh!
Reply
JTB 9:26AM (3/01/2009)
This isn't new, you know? Dealerships get loans from an automaker's financing arm to build the dealership, buy new cars, buy used cars, and hire technicians and salesmen. Think about it, how many dealerships do you really see with just one make?
Flashpoint 10:05AM (3/01/2009)
I love to see the stories of Japanese automakers FAILING.
Thank you Autoblog and "TTAC.com.
These idiot Republicans -who are thenkfully sidelined - did their best to make it appear that the Auto Makers were Failing because "they made cars no one wants" in an attempt to break the backs of the Unions.
So now. - as we watch the Japanese companies suffer - and forced to bailout their own automakers, perhaps that will change the tune of these "Toyota Republican" morons.
Rocketboy 10:11AM (3/01/2009)
Is that what you learned on the Daily Show and Daily Kos?
Grow up kid, it's not a Rep vs Dem thing.
Most of life isn't.
tekd 10:14AM (3/01/2009)
Yeah that was the first thought I had...Nissan doesn't exactly have a lot of reasons to keep giving financing to a Toyota/Scion dealership when they can't even sell their own cars....knocking out a huge competitor brand dealership by pulling their financing both saves them money and takes out a competitor dealership. Kinda ridiculous this guy went to Nissan to get financing though.
I smell a lawsuit brewing though, since if you can prove that they pulled it because it was a competitor dealership that's clearly anti-competitive practice.
@Flashpoint
Yeah because US dealerships going bankrupt helps the US economy. Are you mentally retarded? Losing a dealership of any brand doesn't hurt the parent company, this dealership didn't even exist before and other existing dealerships can barely sell their cars.
Go live in your own craptastic country then where you don't import or export anything and see what kind of great life you'll live. Have fun eating corn for the rest of your life moron.
tekd 10:16AM (3/01/2009)
And since Flashpoint forgot to mention it, he drives a Mercedes Benz S550. Maybe his Mercedes dealership will go bankrupt since Mercedes is one of those evil foreigner companies.
What a hypocrite troll.
Flashpoint 10:20AM (3/01/2009)
You don't need a dealership to buy a Benz.
Affluent people can usually simply order one and have it on their front lawn the next day - or a couple days later. I'll survive if a Benz dealerships went under - not that they would when the one I buy from is in ultra-rich Manhattan.
And as for the auto makers.... The only reason these companies are having problems is because of the credit crisis. If not for the crisis happening RIGHT NOW...The Big 3 would be relatively ok - except for maybe Chrysler.
Pat 10:33AM (3/01/2009)
@flashpoint
I can think of something else I'd like to delivered to your front door ...
tekd 10:52AM (3/01/2009)
@Flashpoint
With that legendary Mercedes Benz reliability what you'll have is an undrivable pile of German engineering if their dealerships closed. And since all their parts are oh so expensively imported from Germany have fun trying to get parts without dealerships around.
The part that makes it really obvious that you're just a troll though is your bullcrap comment about Manhattan. Businesses are closing left and right in Manhattan.
The Virgin Megastore in Times Square is closing, Fortunoff on 5th Ave is closing, obviously the Circuit City in union square closed since they all closed, and about a bazillion smaller businesses are already long gone.
You know what, I don't wish bankruptcy on any American business, but I hope they move your dealership out to Jersey so your troll ass will have to go to Jersey every time you want a $150 oil change.
SwingLineRed 12:29PM (3/01/2009)
@ JTB
"Think about it, how many dealerships do you really see with just one make?"
Uhhh most of the dealerships I see are just one make.... Unless you think Scion and Toyota are different makes.
Mike 12:35PM (3/01/2009)
tekd,
Nissan's finance arm is in business to make money, not to shut down Toyota dealers. Most likely, the company running this dealer isn't able to keep up with the payments and the credit is shut off. Why else would they want to be stuck with a lot full of Toyotas? They sure as hell aren't going to leave themselves opened up for a lawsuit.
As far as your comments about a country shutting off all importing/exporting, if the U.S. did so, we'd be fine. We have all the raw materials and food supplies we need (and not just corn), we have oil that has yet to be drilled for, we have the engineering and manufacturing capabilities to be just fine. The only thing we don't have is a sense of national pride that rejects substandard crap from China and takes pride in it's own products. If we didn't start buying all the junk that the Asian countries sent over in the past, our companies wouldn't have all gone out of business (most electronics manufacturers), moved overseas, or dumbed down the product (domestic cars) to compete at the same level of cost per unit that imports did.
Frank 11:08PM (3/01/2009)
@Flashpoint,
Hey, you can always take a HELOC to pay for that S550 you want delivered to your door, eh?
g00fba11 8:44AM (3/02/2009)
After all his diatribes, I am now convinced that flashpoint indeed owns an S550. I saw him this morning driving it through my Brooklyn Bridge, while I was putting a "For Sale" sign on the bridge. BTW, PM me if you are interested.
Tourian 9:56AM (3/02/2009)
@Flashpoint
Affluent people order cars from dealers. Mercedes does not sell direct to customers. I'm sure once delivered its going to need service. Good luck getting warranty claims down at Pep Boys or Express Oil Change.
Todd 9:26AM (3/01/2009)
Foreshadowing. Many, MANY more stories like this to come from dealerships. Really wondering what's gonna happen when the hammer comes down at Saturn dealers in a sudden, no notice, "you're SOL" event occurs.
And something is up at my local Infinity dealership. Normally lights are on at night, lot all lit up to show off the cars - now dark at 10:PM. Big commercial trucks parked next to entrance way of offices.
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ttvn 9:32PM (3/01/2009)
Infiniti, not Infinit"y".
Tyler 9:40PM (3/01/2009)
Todd,
Is this the Infiniti dealer in Wayzata? If not, the Infiniti dealer nearest me is doing the same thing. Each time I drive by it I wonder, "what's that hauler doing there?" Then I scheme to steal me one of those "whips." The cops might be on me for awhile, but I just have to drive safely for like 3 minutes then they don't care.
MajorGeek 9:40AM (3/01/2009)
Yeah, I was thinking about opening a car delaership last January. What a dumb move. Record dealerships closed the past year and time will tell what 09 holds.
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Frank 9:48AM (3/01/2009)
Open a hyundai or mini dealership. You prob wouldn't do too bad.
why not the LS2LS7? 12:38PM (3/01/2009)
The local MINI dealership has a lot of cars stacked up in a parking lot across the street, in addition to the rather large lot they have on site. MINI sales are way down. And this is a very MINI-friendly area.