Canadians; Vancouver Island's only Acura dealership is closing Monday
08-27-09, 06:45 PM
#1
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Canadians; Vancouver Island's only Acura dealership is closing Monday
http://www.timescolonist.com/Island+...535/story.html
Island loses only Acura dealership
Owners replace Honda product with hot-selling Kia automobiles
By Darron Kloster, Times ColonistAugust 27, 2009
Kia Victoria owner Bill Graham, left, with son and dealership general manager Ed.
Kia Victoria owner Bill Graham, left, with son and dealership general manager Ed.
Photograph by: Debra Brash, Times Colonist, Times Colonist
Vancouver Island's only Acura dealership is closing Monday and being replaced by the hot-selling Kia brand.
The Graham family, who own the Honda and Nissan dealerships in Victoria, said the shift away from Honda's premium brand was due to a deteriorating market for high-end automobiles and the parent company's new blueprint calling for expensive improvements to lots and showrooms.
Ed Graham said yesterday the family has acquired the rights to sell Kia from Reg Midgley, who is converting his lots on the Old Island Highway back to used vehicles.
Kia models were being delivered and Acura signs dismantled yesterday at the dealership at 2620 Government St., at Hillside and Gorge. About $300,000 in improvements will be pumped into the new dealership -- now called Kia Victoria -- and all 24 staff, including sales manager Rick Proctor and dealership manager Eli Pasquale, will be retained in the changeover, said Graham.
Graham said Acura owners can still have warranty and service work done at Campus Honda in Victoria, which has been certified to handle the work.
"Acura's new image program and the economy being what it is, didn't make any [financial] sense to us," said Graham, adding higher-end cars were not selling well during the recession.
"We had to look at the viability of the whole organization and things were beginning to get tough in a tough economy. When the economy was going good with Acura we did really well, but when the economy got tough, it got really tough around here. It was time to make a change."
Graham said consumers are shifting not only to fuel-efficient vehicles, but cars with a better price point.
Kia Motors Corp. is South Korea's second-biggest automaker behind Hyundai. Both are being buoyed by double-digit sales increases in Canada, while some luxury-model makers, Japanese brands and the Big Three in North America have suffered sales slides.
Last month, Kia sold 5,110 new cars in Canada, a 30 per cent increase from July 2008, according statistics compiled by Desrosiers Automotive Consultants.
Although Kia's total market share of new auto sales in Canada is slim -- about half a percentage point -- the company has sold 27,219 vehicles over the first seven months of the year, up more than 20 per cent from a year ago.
Hyundai, meanwhile, has doubled its market share to eight per cent this year compared to last, according to Desrosiers
Graham said a Kia Rio, a standard four-door sedan, sells for under $10,000 and comes with a five-year warranty. The range goes to a $40,000 sport utility vehicle with V8 motor and all the extras. The company also introduced the Forte brand, which is exceeding sales expectations across Canada.
Graham's bother **** Graham operates the Campus Honda and Campus Nissan dealerships in Victoria.
Their father, Bill Graham, founded the dealerships in Victoria after arriving from North Battleford, Sask., more than 30 years ago where he operated a Pontiac-Buick outlet.
The senior Graham bought a Toyota dealership at Fort and Foul Bay and moved into Datsun products a few years later. When Datsun became Nissan, Graham moved to the family's current location on Oak Street, where they also sell Nissan's high-end line, Infiniti.
Me thinks it has a lot to do with Acura telling dealerships to invest in making their showrooms Tier 1 but with them canceling RWD/V-8 and basically Tier 1 development, this dealer didn't think it made any sense to upgrade their dealership if they didn't get upgraded products.
Island loses only Acura dealership
Owners replace Honda product with hot-selling Kia automobiles
By Darron Kloster, Times ColonistAugust 27, 2009
Kia Victoria owner Bill Graham, left, with son and dealership general manager Ed.
Kia Victoria owner Bill Graham, left, with son and dealership general manager Ed.
Photograph by: Debra Brash, Times Colonist, Times Colonist
Vancouver Island's only Acura dealership is closing Monday and being replaced by the hot-selling Kia brand.
The Graham family, who own the Honda and Nissan dealerships in Victoria, said the shift away from Honda's premium brand was due to a deteriorating market for high-end automobiles and the parent company's new blueprint calling for expensive improvements to lots and showrooms.
Ed Graham said yesterday the family has acquired the rights to sell Kia from Reg Midgley, who is converting his lots on the Old Island Highway back to used vehicles.
Kia models were being delivered and Acura signs dismantled yesterday at the dealership at 2620 Government St., at Hillside and Gorge. About $300,000 in improvements will be pumped into the new dealership -- now called Kia Victoria -- and all 24 staff, including sales manager Rick Proctor and dealership manager Eli Pasquale, will be retained in the changeover, said Graham.
Graham said Acura owners can still have warranty and service work done at Campus Honda in Victoria, which has been certified to handle the work.
"Acura's new image program and the economy being what it is, didn't make any [financial] sense to us," said Graham, adding higher-end cars were not selling well during the recession.
"We had to look at the viability of the whole organization and things were beginning to get tough in a tough economy. When the economy was going good with Acura we did really well, but when the economy got tough, it got really tough around here. It was time to make a change."
Graham said consumers are shifting not only to fuel-efficient vehicles, but cars with a better price point.
Kia Motors Corp. is South Korea's second-biggest automaker behind Hyundai. Both are being buoyed by double-digit sales increases in Canada, while some luxury-model makers, Japanese brands and the Big Three in North America have suffered sales slides.
Last month, Kia sold 5,110 new cars in Canada, a 30 per cent increase from July 2008, according statistics compiled by Desrosiers Automotive Consultants.
Although Kia's total market share of new auto sales in Canada is slim -- about half a percentage point -- the company has sold 27,219 vehicles over the first seven months of the year, up more than 20 per cent from a year ago.
Hyundai, meanwhile, has doubled its market share to eight per cent this year compared to last, according to Desrosiers
Graham said a Kia Rio, a standard four-door sedan, sells for under $10,000 and comes with a five-year warranty. The range goes to a $40,000 sport utility vehicle with V8 motor and all the extras. The company also introduced the Forte brand, which is exceeding sales expectations across Canada.
Graham's bother **** Graham operates the Campus Honda and Campus Nissan dealerships in Victoria.
Their father, Bill Graham, founded the dealerships in Victoria after arriving from North Battleford, Sask., more than 30 years ago where he operated a Pontiac-Buick outlet.
The senior Graham bought a Toyota dealership at Fort and Foul Bay and moved into Datsun products a few years later. When Datsun became Nissan, Graham moved to the family's current location on Oak Street, where they also sell Nissan's high-end line, Infiniti.
Me thinks it has a lot to do with Acura telling dealerships to invest in making their showrooms Tier 1 but with them canceling RWD/V-8 and basically Tier 1 development, this dealer didn't think it made any sense to upgrade their dealership if they didn't get upgraded products.
08-27-09, 10:36 PM
#5
executive matchup
you see kia commercials on tv all the time here. acura commercials, not really a whole lot. maybe a TL or TSX commercial once in awhile, that's about it. this dealership bailing on acura is an indictment of honda's failure to address their problems.
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08-27-09, 11:57 PM
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08-28-09, 12:28 AM
#9
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it is sad but i think an average Kia looks better than the new TL
lol
and that monstrosity they call the ZDX
08-28-09, 07:33 PM
#10
Guess Acura really is pushing the "image" thing. Trying to look Tier 1. First the price hikes on Acura Canada vehicles in 2006 and now they want fancy showrooms? How about fancy products first?
Their current lineup is still pure Acura. IOW, affordable luxury (even with the ridiculous price hike). When people think Acura, they think luxury that they can actually afford vs. say Lexus or Infiniti where it's more of a "wow, you're rich". That might explain why not many RLs are being sold. Even though they're bigger than the competition, the same money can buy a nice GS/5/E/A6/M.
Their current lineup is still pure Acura. IOW, affordable luxury (even with the ridiculous price hike). When people think Acura, they think luxury that they can actually afford vs. say Lexus or Infiniti where it's more of a "wow, you're rich". That might explain why not many RLs are being sold. Even though they're bigger than the competition, the same money can buy a nice GS/5/E/A6/M.
08-28-09, 07:43 PM
#11
Lexus Champion
Interesting move by that dealer. Jumping ship is probably a good idea, but I would have gone with Hyundai.
I wonder if other dealers will follow if these guys do well.
I wonder if other dealers will follow if these guys do well.
08-28-09, 10:39 PM
#12
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08-29-09, 02:05 AM
#14
Lexus Champion
i don't know sales number between Acura and Infiniti, but I'm sure it's not a big difference. Until Infiniti builds a true flagship, they are in the same boat as Acura...