Archive for the ‘Dealers’ Category

Fisker Santa Monica Opens: Good Karma

Posted: December 27, 2011 in Dealers, Fisker Automotive, Hybrids, Electrics and other "Green" Technology, Los Angeles Specific Issues
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Back in May, when I first noticed the construction of Fisker Santa Monica, I was hoping for Instant Karma.  Fisker Automotive’s debut car, an extended range electric vehicle (EVer) dubbed the Karma, was the freshest, sexiest sports sedan I’d seen in a long time. I knew that production had started in Finland (same company that built the Porsche Boxster and Cayman) and that sales were supposed to start soon, perhaps as soon as summer.2012 Fisker Karma

Well, the store didn’t pop up immediately, but even if it had opened early, there wouldn’t have been anything to put in the showroom as the cars didn’t start trickling into the US until the fall.   So the September/October soft opening was the first opportunity the community had to see and drive the fantastic new Karma and Fisker Santa Monica, one of the newest additions to Sullivan Automotive Group’s stable,  began showing it at Green car events around LA.

Michael Sullivan’s Sullivan Automotive Group does business under the LACarGuy.com banner. Many of you probably bought your car from one of his local dealerships, including Volkswagen Santa Monica, Lexus Santa Monica, Toyota Santa Monica and Toyota of Hollywood (Toyota’s first store in the US).

The banner lets you know that Fisker Santa Monica is open and ready for business.

The location at the corner of Santa Monica Boulevard and 25th Street in Santa Monica has its own good Karma.  In 1985, it was the site of Sullivan’s Hyundai dealership (no longer part of the group) and in 1989, Sullivan hit the jackpot with the opening of his Lexus franchise.  Sullivan rode the meteoric rise of the Lexus brand from the beginning, and now, Lexus Santa Monica, in its new digs at 1501 Santa Monica Blvd, is a classy monument to success.

The Fisker badge on the hood of a Karma

More recently, the site was used as the internet sales office for the neighboring Volkswagen Santa Monica dealership, itself a good luck talisman as it was the dealership that started the Sullivan family in the auto dealership business in 1964. In fact, if you go out the side door of the Fisker store you’re in the pre-owned VW parking lot.

Fisker Automotive has had quite a colorful rise, and it’s not without controversy.  Founded in 2007 and still privately held, Fisker accepted a federal Department of Energy loan of $528 million which it used to buy a defunct GM manufacturing plant in Delaware. Fisker is in the process of adapting the plant to manufacture the Project Nina, a more affordable, mass-market plug-in sedan around the size of a BMW 5-series. Fisker has signed an agreement with BMW to provide up to 100,000 2.0 liter 4-cylinder turbo gas engines, so no more GM units.  Pricing hasn’t been announced, but it should be less than half the price of the Karma.

Many question Fisker’s ability to repay the loan; however Fisker optimistically projects production (and hopefully sales) of between 75,000 and 100,000 units by 2014.  That’s only two years away, and we have yet to see any concept pictures.

The upcoming Karma variants, the Sunset, a convertible Karma and the Surf, a shooting brake (wagon) version of the Karma will be produced in Finland. Projected volume is 15,000 units a year.

Fisker Karma's EPA label

Over the Karma’s gestation period, the price has gone up (no surprise) and when the EPA rated it at 52 MPGe (a combined gasoline an electric driving range), some were disappointed.   On gas power alone, the car was rated at 20 mpg – ouch! But what do you expect for a 5,300 pound sports car?  The EPA estimates the Karma will travel 32 miles on electrons before switching to the gasoline hybrid mode, although Fisker thinks that number is closer to 50 miles. Only time will tell.

More recently, there has been an issue surrounding the Karma’s batteries.  A123 Systems says it has identified a possible safety problem with the cooling system on the batteries it supplies for the Karma.  Hose clamps on some of the cooling lines are not properly aligned, which could lead to a leak and an electrical short circuit.

Massachusetts-based A123 (also a recipient of a federal DOE loan of $249 million) says that the problem only affects around 50 Karmas.  A123 and Fisker are already implementing the “fix” and neither company believes it will affect sales of the Karma.

The front of the Fisker Karma screams unique and sporty. I love the Salvador Dali moustache grille.

Fisker is projecting 2012 sales of the plug-in Karma of 10,000 – 12,000 units, down from a more optimistic 15,000.  However A123 is projecting sales of 5,000 – 7,000 based on its own internal metrics.  For the sake of jobs and the economy, I hope Fisker’s estimates are closer to reality.

The Karma is similar to the Chevy Volt in that it’s a plug-in electric vehicle that uses a gasoline engine to power a generator to extend the total range. The Karma is powered by dual electric traction motors on the rear wheels, unlike the front-drive Chevy.  The gas engine never actually powers the wheels, just the electricity generator.  You can plug it into a standard 110 volt wall socket or use an industry standard 220 v charging port. The 20.1 kWh battery pack can fully charge in 6 hours with the 220 juice.

Fisker says the EV range is 50 miles with an additional 250 miles available (total range 300 miles) when using the 2.0L direct-inject turbo engine supplied by GM.  The electric traction motors produce around 400 hp and a marquis 959 lb-ft of torque. Zero to 60 is 6.1 seconds.  I am, at heart, a torque junky, so inject me with nearly 1,000 lb-ft of torque and I’m high as a kite.

The Fisker Karma's engine bay with a 2.0L direct-inject turbo GM engine.

You can drive the Karma in “Stealth” mode (which is using the battery alone) or in “Sport” mode which allows more electrons to flow to the motor and the gas engine kicks earlier and more frequently.  Expect your range to shrink if you drive in sport mode with a lead foot.

The interior is a splendid place to spend time. All the materials look and feel rich, the switchgear has a bespoke aura and nothing looks like a cheap parts bin collaboration. It’s filled with beautiful recycled materials, including the superb wood trim. You’d never know it was a sustainable interior at first impression; but it’s great bragging rights at the next Heal the Bay fundraiser.

Fisker Karma cockpit

You sit low, in true sports car fashion and the car oozes class while screaming “Look at Me, I’m Driving an Electric Car.”

The battery runs down the center spine of the car and when you sit inside, you definitely notice its prominence. In the back seat, you feel a bit claustrophobic between the sloping roof, relatively cramped space and the large battery hugging you from the center.

Hey, all you Hollywood celebrities and Industry power brokers, you can finally ditch the Prius, the car you drive only to burnish your Green Creds, and pull up to BOA Steakhouse or The Ivy in your Karma. You’ll get front and center placement by the valets. That alone is worth the $100k price of admission.

The Karma comes in 3 trim levels: EcoStandard, EcoSport and EcoChic.  Fisker doesn’t post prices on its website; but Edmunds.com lists the EcoStandard at $95,900, the EcoSport at $103,900 and the EcoChic at $108,900.  The ones I saw in the showroom were at least $107,000.  Just so you know, the EcoChic model is “animal free” – which I assume means no cows were sacrificed to upholster the interior.

Fisker Santa Monica showroom. Check out those recycled wood floors. Gorgeous.

Fisker Santa Monica's showroom has a few cars for you to see and touch.

Whatever the 2012 sales projections are for the Karma, I’m confident that Fisker Santa Monica will be Fisker’s sales champ. Comfortably situated in the People’s Republic of Santa Monica where hybrids are the norm, not a curiosity or anomaly, the Karma is the perfect green answer to a Maserati Quattroporte, a Porsche Panamera or a Mercedes SL.  The Karma is half the price of an Aston Martin Rapide and it may be more exclusive.

Fisker Karma, rear

According to the sales staff, all the cars in Fisker Santa Monica’s showroom were pre-sold; however, if you wanted to drive one, they have demos.   Much of the Karma’s first year production has already been reserved, but fear not, they are still taking orders – just bring your checkbook. And I’m sure they can accommodate Leonardo DiCaprio when his business manager calls looking for one.

Dodge Franchise Opens in West LA – It’s Been a Long Time!

Posted: October 4, 2011 in Chrysler, Dealers, Dodge, Jeep, Ram
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For many years now, the domestic auto manufacturers have had a hard time in Metro Los Angeles. That corridor from Santa Monica to Silver Lake, along Santa Monica, Sunset and Wilshire Boulevards, was particularly underserved by the domestic brands, mostly due to lack of demand but also due to the high cost of real estate.

There are some notable holdouts: Santa Monica Ford, Buerge Ford and Buerge Chrysler-Jeep survived on the West Side, Vermont Ford in East Hollywood.  Martin Cadillac GMC  is still standing at Olympic and Bundy, but it’s looking tired.  There is a Chevrolet (and Buick, but I don’t believe it) dealer in Santa Monica; however, it is the smallest Chevrolet dealer I’ve ever seen anywhere.  It occupies a tiny corner of a small lot that that used to be a Chevy dealer but is now flagged as an Infiniti dealership. [More on this pathetic location in a future post.]

Dealerships on the R.I.P. list:  Beverly Hills Ford,  Hillcrest Cadillac – Beverly Hills, Albertson Chevrolet – Culver City, La Brea Chevrolet – Los Angeles, La Brea Chrysler-Jeep – Los Angeles, Lou Ehler’s Cadillac – Mid-Wilshire,  Los Feliz Ford – East Hollywood-SilverLake-Los Feliz. There never was a Dodge dealer in the LA Metro Corridor (at least not in recent memory).

Chrysler Group Brands

When the Great Recession hit and domestics shrunk their dealer franchises, several dealerships in the San Fernando Valley closed, including Big Valley Dodge in Van Nuys.  I always thought Chrysler would keep at least ONE Dodge dealership west of Downtown LA, but when Big Valley closed, the closest dealer for most customers in Metro LA was Glendale Dodge (which now includes the Chrysler and Jeep brands).

At the beginning of this year, Chrysler opened a company-owned multi-brand [Chrysler, Dodge, Ram, Jeep and Fiat] flagship store called Motor Village LA. It was also the location of the first Fiat Studio in the United States.  I attended the Fiat Studio opening and was impressed with the beauty and coolness factor of the new digs.  It’s a great old historic brick and stucco multi-story building with a display tower visible from the 110 freeway.  Not so great was the location on Figueroa near USC.  If I don’t work downtown or go to USC, I don’t want to go to this dealer for sales or service.

Chrysler ran afoul of California’s dealer franchise laws by owning the store within 10 miles of other Chrysler brand franchises, and last month, it was announced that Motor Village was being sold to New Century Automotive Group, known for its BMW and MINI franchises in North Hollywood adjacent to Universal Studios and its VW dealership in Glendale.

Motor Village LA

Up until just recently, Motor Village LA was the only Dodge franchise in Metro LA.

Big Valley Dodge has been replaced by California Superstores Chrysler Dodge Ram Jeep in Van Nuys and Buerge Chrysler Jeep added Dodge and Ram at its West LA location. So we replaced one in the Valley and gained one west of the 405.

I’ve always wondered how Buerge Chrysler-Jeep (and now Dodge and Ram) survived. I’ve been there a couple times in the past year and both times business seemed very slow – as in non-existent. Now let’s be clear, I usually go to dealerships on slow days so that the sales staff has time to kill and won’t mind me checking out a car without buying it.   But I can generally wander around the lot without being noticed by a salesperson and the showroom is usually empty. I checked the service bays in back, and there is some service life, but the bays definitely aren’t filled.

One time, I went to look at the all-new 2011 Grand Cherokee.  It had just come out to great reviews and Buerge had several on the lot. I looked in windows, walked around and kicked some tires.  Finally, a salesperson from the Ford dealer trotted across the side street and asked if I had any questions.  I said I was there to see the new GC. We chatted a bit, but I wasn’t offered a test drive. He told that Chrysler didn’t have any lease deals, so they were going to be too expensive to buy or lease.  Fair enough. I guess I should just take my business to Mercedes or Lexus and shop for lease deals there. I know they have deals and Jeep doesn’t!

A few years ago, I went into the same dealer to check out the Chrysler Crossfire convertible. That time, I got a test drive; but the salesman was sort of laissez-faire about the car or selling it. It had so little tech (or quality) for so much money.  He thought it was a better deal for me to just buy the Crossfire’s sister, the Mercedes-Benz SLK.  At least on the first-generation SLK (Mercedes just introduced the third-generation SLK), you got a retractable hardtop (not a soft top) and decent, if not great, dash controls and mechanicals.  How did they stay in business?

Buerge Chrysler Jeep Dodge Ram. Time for new signage?

This week, I was interested in the addition of the Dodge franchise. The lot still looked the same: Jeep on one side, Chrysler on the other. The only difference was the banner sign that had been up on the building for a few weeks.   This was a Monday afternoon, so I expected sales to be slow. I walked through the lot and into the showroom. No one.   I then heard some movement in the back, but it wasn’t forward movement.  There was a 2011 Chrysler 300 in the showroom, so I hopped in that.  Nice place to kill time, but where is the 2012 model?

Eventually, a salesman wandered in and spoke to me.  He didn’t introduce himself. I told him I was interested in the 2012 Dodge Charger with the 8-speed automatic transmission. He said that they did have a couple dozen Dodge vehicles on the lot, but no 2012 Chargers.  He pointed to one Ram truck at the end of the Chrysler lot.  Wow.   Apparently, the dealer has ordered a bunch of 2012 Chargers and they should arrive in about 3 weeks, if I believe him. He also told me to go online and check the dealer’s inventory. It would show the vehicles in inventory even if they were only in transit. I did. It didn’t.

Since he never introduced himself, I didn’t bother to either. No communication = no contact information.  I volunteered that I’d come back in a few weeks when they had some inventory and I left.  I’m pretty sure he didn’t care if I came back or not.

Buerge signage from the west side. I see lots of Jeeps. Where are the Dodges?

I kept wondering if  it was just me that had an uneasy feeling about this dealer. I checked Yelp and found ten reviews. Most were negative with one star while a few were positive with five stars.  The average of the ten was two stars.  Not great, but with Yelp, it’s hard to really evaluate a business without more comments.  I did find one comment that echoed my experience.  On August 1, 2011, Dmitriy B. from Tarzana says:

Don’t waste any time shopping for a car here. Ken from the sales staff will just tell you to buy the car somewhere else.

I’m going to go back in a few weeks to Buerge Chrysler Jeep Dodge Ram, now the only Dodge dealer on the West Side, to see if there are any new Chargers. I wonder if I’ll find a responsive salesperson. I doubt it.

I have some free advice for auto dealerships:  Social media is important. If you don’t have a Facebook  or Twitter account, I suggest you do both and engage customers and potential customers in your area.  Reach out to the people who have posted negative reviews about your business and see if you can fix it. When I read Yelp, I want to see higher ratings and many more positive comments. Ask existing customers to rate you on Yelp and/or participate with you on Twitter or Facebook.

Open a YouTube channel and post videos about your business and its employees. Also post videos from Chrysler corporate and other channels (Car & Driver, Autoweek, etc.) that give great reviews to the products you sell. Personalize the experience for your customers. It’s what you should  do and its a good way to burnish your image.  Your competition is already doing it and you don’t want to be left behind sucking the tailpipe.

Also, when I go to your website (I’m talking to you Buerge), I’m looking for a neat, organized corporate look, but not the dreary obligatory storefront I see. You should also change you name to reflect the addition of Dodge and Ram. I want you invite me to follow you on Twitter or join your Facebook page.  Post a video.  Add some color. Use pictures from your dealership, not stock photos.  If you want customers, just existing in a good location is no longer enough. You have to constantly work on and polish your image. Right now, it’s on life support.

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