Bad News for Lambo Dealers.
Nov 5, 2008 | 08:32 PM
#12
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Joined: Jan 2008
Posts: 2,691
This is not true. There was no "fronting" going on, go to Lotus BH website and look at whose name is in the top left corner. There was no deception or treachery behind who owns/owned the dealership.
Nov 5, 2008 | 08:42 PM
#13
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Joined: Jan 2008
Posts: 1,466
From: NY
Lambo OC used to own the Lambo BH dealer, after they sold it to the current owner they opened the Lotus dealership. Since there can only be one "official" Lambo dealer in the area, they sold used Lamborghinis at the Lotus dealership and if you walked in there and wanted to buy a new Lamborghini they would do it through Lambo OC. It was really a way for them to keep a store front in BH.
Nov 5, 2008 | 09:01 PM
#15
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Joined: Jan 2008
Posts: 3,668
From: NorCal
Lamborghini O.C., largest dealer of exotic cars, closes
Automaker blames poor management -- not economy -- for demise.
By JOHN GITTELSOHN
The Orange County Register
The world's largest Lamborghini dealer, Lamborghini Orange County, has closed and owners aren't saying why.
"I can't talk about anything," said Vik Keuylian, owner of the Santa Ana-based dealership.
Keuylian said he sold about 10 percent of all 2,400 Lamborghinis made in the world each year. Lamborghini plans to move its North American headquarters to Santa Monica, in part, to be close to its largest dealership.
Automobili Lamborghini America said the dealer closed because of its own mistakes, not the economy.
"The financial stress Lamborghini Orange County is experiencing is due to several unfortunate business decisions made by management at Lamborghini Orange County, independently of Automobili Lamborghini," said Pietro Frigerio, chief operating officer of Lamborghini America.
"Many companies have felt an impact by the current economic situation, but the economy is not the reason for Lamborghini Orange County's financial situation. Though, the economy has exacerbated the situation."
In an interview this spring, when other auto dealers were suffering from the economic downturn, Keuylian said he continued to prosper.
"This April was better than April ‘07,” Keuylian told the Register. “Other dealers are turning down cars and we’re picking them up and selling them at a profit.”
A spokeswoman for Volkswagen, which owns Lamborghini, would not answer a question about whether the company had pulled the line of credit Keuylian needed to keep cars on his showroom floor.
"While we don't comment about our business relationships with our dealerships, Volkswagen's credit business continues to remain strong," said Jill Bratina, a spokeswoman for Volkswagen Group of America.
At least nine Orange County auto dealers -- selling Chevrolets, Chryslers, Dodges, Nissans, Saturns and other brands -- have closed since January, brought down by sluggish sales and tight credit.
But Lamborghini Orange County is the most glamorous of the bunch. Customers included NBA stars Kobe Bryant and Dennis Rodman. The Keuylians threw promotional parties with celebrities such as Elton John and Sharon Stone. They helicoptered actors Eric Roberts and Luke Perry from Los Angeles to Orange County for a company party in April.
The Orange County dealership at 2441 S. Pullman St. in Santa Ana is now padlocked. The lot -- previously brimming with orange and lime 12-cylinder sports cars that sold for as much as $600,000 -- is vacant.
No sign explains the closure or tells customers where to go for repairs or how to pick up cars on order.
The answering machine on a phone at Lamborghini Calabasas, also owned by Keuylian, said it was not accepting messages. A recently opened Lamborghini showroom on West Coast Highway in Newport Beach also has closed. And Keuylian's plans for a lavish new showroom there never materialized.
Automaker blames poor management -- not economy -- for demise.
By JOHN GITTELSOHN
The Orange County Register
The world's largest Lamborghini dealer, Lamborghini Orange County, has closed and owners aren't saying why.
"I can't talk about anything," said Vik Keuylian, owner of the Santa Ana-based dealership.
Keuylian said he sold about 10 percent of all 2,400 Lamborghinis made in the world each year. Lamborghini plans to move its North American headquarters to Santa Monica, in part, to be close to its largest dealership.
Automobili Lamborghini America said the dealer closed because of its own mistakes, not the economy.
"The financial stress Lamborghini Orange County is experiencing is due to several unfortunate business decisions made by management at Lamborghini Orange County, independently of Automobili Lamborghini," said Pietro Frigerio, chief operating officer of Lamborghini America.
"Many companies have felt an impact by the current economic situation, but the economy is not the reason for Lamborghini Orange County's financial situation. Though, the economy has exacerbated the situation."
In an interview this spring, when other auto dealers were suffering from the economic downturn, Keuylian said he continued to prosper.
"This April was better than April ‘07,” Keuylian told the Register. “Other dealers are turning down cars and we’re picking them up and selling them at a profit.”
A spokeswoman for Volkswagen, which owns Lamborghini, would not answer a question about whether the company had pulled the line of credit Keuylian needed to keep cars on his showroom floor.
"While we don't comment about our business relationships with our dealerships, Volkswagen's credit business continues to remain strong," said Jill Bratina, a spokeswoman for Volkswagen Group of America.
At least nine Orange County auto dealers -- selling Chevrolets, Chryslers, Dodges, Nissans, Saturns and other brands -- have closed since January, brought down by sluggish sales and tight credit.
But Lamborghini Orange County is the most glamorous of the bunch. Customers included NBA stars Kobe Bryant and Dennis Rodman. The Keuylians threw promotional parties with celebrities such as Elton John and Sharon Stone. They helicoptered actors Eric Roberts and Luke Perry from Los Angeles to Orange County for a company party in April.
The Orange County dealership at 2441 S. Pullman St. in Santa Ana is now padlocked. The lot -- previously brimming with orange and lime 12-cylinder sports cars that sold for as much as $600,000 -- is vacant.
No sign explains the closure or tells customers where to go for repairs or how to pick up cars on order.
The answering machine on a phone at Lamborghini Calabasas, also owned by Keuylian, said it was not accepting messages. A recently opened Lamborghini showroom on West Coast Highway in Newport Beach also has closed. And Keuylian's plans for a lavish new showroom there never materialized.
Nov 6, 2008 | 02:38 AM
#19
Teamspeed Pro
Joined: Apr 2008
Posts: 23,875
From: Orange County
It looks like the business of excess caught up with Vik. I remember a story from the OC Register about a year ago talking about how they were targeting soccer-moms and taking trade-ins on Minivans and Range Rovers. Their credit offers were getting crazy. I heard rumors of credit terms that included doubling interest rates and 30-year terms. Their lease terms were insane. It was Vik's goal to put as many people in a Lambo as possible. I think he got a bit too relaxed with the way he extended credit. Sound familiar?
Nov 6, 2008 | 12:20 PM
#20
Teamspeed Pro
Joined: Jan 2008
Posts: 31,554
From: Zoo York
World's largest Lamborghini dealer turns out the lights From Autoblog
It looks like dealers of mainstream high volume autos aren't the only ones struggling with the current credit freeze. Plenty of car dealers across the country have turned out the lights this year as sales have dried up and costs for borrowing to stock cars have gone up. In spite of that, exotic car sales have apparently held up even in this down market. Evidently that wasn't enough to help Orange County Lamborghini. The Santa Ana, CA dealership reportedly accounted for 10 percent of all 2,400 Lamborghini sales world-wide. Pietro Frigerio, COO of Lamborghini America, told the Orange County Register that current economic conditions were not the reason for the closing. Instead he pointed at other business dealings by dealership owner Vik Keuylian. No details were provided, but it would not be surprising if Keuylian was involved in the Southern California real estate market that has gone bust this year. This could pose a significant issue for Lamborghini and Bull owners in the region. The company will have to line up new sales and service outlets quickly in the SoCal market.
It looks like dealers of mainstream high volume autos aren't the only ones struggling with the current credit freeze. Plenty of car dealers across the country have turned out the lights this year as sales have dried up and costs for borrowing to stock cars have gone up. In spite of that, exotic car sales have apparently held up even in this down market. Evidently that wasn't enough to help Orange County Lamborghini. The Santa Ana, CA dealership reportedly accounted for 10 percent of all 2,400 Lamborghini sales world-wide. Pietro Frigerio, COO of Lamborghini America, told the Orange County Register that current economic conditions were not the reason for the closing. Instead he pointed at other business dealings by dealership owner Vik Keuylian. No details were provided, but it would not be surprising if Keuylian was involved in the Southern California real estate market that has gone bust this year. This could pose a significant issue for Lamborghini and Bull owners in the region. The company will have to line up new sales and service outlets quickly in the SoCal market.