Growing Auto Dealer Targets Local Sites for Expansion

The owner of a new auto dealership chain from Northern California has taken a big interest in the local market, opening three locations in the San Fernando and Santa Clarita valleys. Carlos Hidalgo started California Superstores in mid-November, building off of the Chrysler Jeep Dodge Ram dealership in Folsom that he had owned for years. Since November, the company has purchased several other dealerships and has made plans to open new franchises as the auto market recovers. The company recently acquired the former Power Chrysler Jeep Dodge in Santa Clarita and is in the process of setting up shop for a new Kia franchise in the city. The company is also expecting the purchase of a Van Nuys dealership to close this month. Other California Superstores dealerships include a Chrysler Jeep Dodge Ram location in San Leandro and two Fiat dealerships that are set to open in March in Sacramento and Fremont. The new Kia of Valencia, which is taking the place of a former Mitsubishi dealership on Creekside Road, is expected to open in early February. The Van Nuys Chrysler Jeep Dodge Ram dealership, located on Van Nuys Boulevard, will likely be operational in early March. Expanding line Hidalgo said Chrysler’s expanding product line was one of his motivators for starting and expanding the franchise. “They have 16 new products coming out, and the products are just starting to hit the show floors,” Hidalgo said. “So, we feel that having this new product with the new company will give us a lot more customers than before. The automotive business, it’s going to come back. … There’s a big demand for vehicles right now.” He added that Kia has seen success with its products and Fiat is a brand that is re-emerging in the U.S. market. Fiat owns 25 percent of Chrysler. Don Fleming, president of the Santa Clarita Valley Auto Dealers Association, said it is exciting to have the new dealerships move in, especially Santa Clarita’s first Kia dealership. “We love all the dealerships we can get there,” he said. “It gives customers a better opportunity to cross-shop. … These guys (California Superstores) have a great reputation, and I’m sure they’ll do a wonderful job in Santa Clarita.” He added that now is a good time to be moving into the Santa Clarita auto community. “It’s been very, very active,” Fleming said. “The Auto Row had a good year. Sales are up (about) 20 percent on the street over last year.” Appealing market Hidalgo said he chose his expansion locations by targeting three of the state’s top automotive markets – Sacramento, the San Francisco Bay area and the Los Angeles area. The San Fernando and Santa Clarita valley locations were appealing because of their proximity to each other and because of their customer bases. “The (Santa Clarita) community is very well established,” Hidalgo said. “It’s more of an upscale community… and we feel that the new product coming out would match up great with those communities.” Plans for remaining competitive include providing upfront online pricing and increasing inventory levels at previously owned dealerships in order to provide more selection. The company also plans to renovate the acquired dealerships, with about $3 million to $4 million expected to be used to improve the Van Nuys site. California Superstores is still in the process of hiring employees for the new and acquired dealerships. The company held a job fair in Santa Clarita recently and ended up hiring 11 people. Once all three of the local dealerships are open, they are expected to have a total of about 120 employees or more. Hidalgo said now is the time to expand, especially as drivers who have held on to their vehicles for longer in the downed economy are finding it is time for an upgrade. “We have cars with 110,000 to 120,000 miles average coming in,” he said, referring to cars that are being traded in. “At some point, people start not trusting their vehicles. … They’re tending to want more equipment this time around, with the power seats, the navigation system and leather and a sunroof. If they’re going to keep them longer, they want more stuff.” California Superstores HEADQUARTERS: Roseville, Calif. Number of Planned Area Locations: 3 Total Number of Locations: 7 Dealership Brands: Chrysler, Dodge, Jeep, Ram, Fiat, Kia