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Thursday, Mar 28, 2024

AUTOS—Galpin Ford Plans to Buy Volvo Dealer

The country’s largest automobile dealership is about to get bigger. Galpin Ford Inc. is expected to complete a deal to acquire Studio City Volvo in the next month, adding a sixth marquee to the dealer’s stable of brands. Bert F. Boeckmann II, owner of Galpin Ford, said the new dealership will join his other stores at Roscoe Boulevard and the San Diego (405) Freeway in North Hills when the transaction is completed. “We should increase our sales by 1,000 new vehicles a year,” Boeckmann said of the planned acquisition. Studio City Volvo, located on Ventura Boulevard, was acquired by Ford Motor Co. late last month when its owner of 43 years, Bill Hirsty, retired. Ford, which acquired Volvo Cars of North America in March 1999, bought the store with the intention of reselling it to another dealer. “It was an opportunity for Volvo to come in and give a dealer his wish and be in control of who got the franchise next,” said Mike Martino, dealer relations consultant for Volvo Cars of North America, who is managing the operation through the sale. “When you’re dealing with a 40-year retailer, you want to do what’s best for him and the Volvo community.” Galpin has expanded its business as Ford has acquired new brands. Last year, the dealership, which also includes Galpin Ford, Galpin Lincoln Mercury, Galpin Jaguar and Saturn of The Valley and Saturn of Santa Clarita, added a Mazda franchise following Ford’s acquisition of that brand. Volvo sold 114,397 cars as of November 2000, a 9.1 percent increase over 1999 sales through November, which totaled 104,530. Though far smaller than the Ford brand, Volvo adds cache to the Ford name. Ford Motor Co. has been steadily building its luxury business and recently set up a premier auto group to house Volvo, Jaguar, Lincoln and Aston Martin. In a recent annual report, Ford said that its luxury brands accounted for sales of only 200,000 units a few years ago, and the company projected that sales in the category would top one million next year. Galpin sold 20,000 car units excluding fleet sales last year. “This will bring us about a 5 percent increase so it’s a nice plus, but it’s not a huge one,” Boeckmann said. “It fits our wanting to carry the entire Ford line, so we’ve got a couple more to get.” In addition to Volvo, Ford last year acquired Land Rover from BMW Group. Boeckmann said the decision to move the Volvo dealership was based on the expansion underway at the North Hills location rather than the growing trend to cluster dealerships. “It would be desirable normally for a dealership to group, but if you had a strong franchise like Ford in a strong location, there would be no reason why they shouldn’t be successful,” Boeckmann said. Galpin is currently constructing a state-of-the-art facility where the new franchise will be housed along with several other of the dealership’s brands. The facility will offer rental services, laptop-ready work stations and a guest lounge complete with a coffee bar and play area.

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