Bad News for Lambo Dealers.
Nov 6, 2008 | 12:24 PM
#22
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Joined: Jan 2008
Posts: 1,145
From: People's Republic of Maryland
Lamborghini O.C closes
Money: O.C. Lamborghini dealership shuttered | - OCRegister.com
Lamborghini O.C., largest dealer of exotic cars, closes
Automaker blames poor management, not economy, for demise.
By JOHN GITTELSOHN
The Orange County Register
Comments 12 | Recommend 8
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 previously said he sold about 10 percent of all 2,400 Lamborghinis made in the world each year. Lamborghini announced 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, $600,000 Murcielagos and Gallardos customized by designer Versace – 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.
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Lamborghini O.C., largest dealer of exotic cars, closes
Automaker blames poor management, not economy, for demise.
By JOHN GITTELSOHN
The Orange County Register
Comments 12 | Recommend 8
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 previously said he sold about 10 percent of all 2,400 Lamborghinis made in the world each year. Lamborghini announced 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, $600,000 Murcielagos and Gallardos customized by designer Versace – 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.
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Nov 6, 2008 | 12:27 PM
#23
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Joined: Jan 2008
Posts: 8,839
From: London, formerly LA
I wonder what the actual reasons are other than the economy?
I know that the Santa Monica Lambo dealership that's opening must have posed a future threat to their business but nothing that should impact them right now.
I know that the Santa Monica Lambo dealership that's opening must have posed a future threat to their business but nothing that should impact them right now.
Nov 6, 2008 | 12:40 PM
#28
Teamspeed Pro
Joined: Jan 2008
Posts: 8,839
From: London, formerly LA
No worries mate, hopefully they'll all get merged.
I went into the Beverly Hills showroom when i was going to sell my Porsche and looked at a Lotus Exige 'S' about 6 months ago and they had 8 cars in the entire showroom, 4 of which were Lotus, 3 Lambo's and one Shelby.
I remember making a comment in a thread ages ago about this as i could tell something was up because 12-18 months ago they had 25 cars in there on average, mainly exotics.
I went into the Beverly Hills showroom when i was going to sell my Porsche and looked at a Lotus Exige 'S' about 6 months ago and they had 8 cars in the entire showroom, 4 of which were Lotus, 3 Lambo's and one Shelby.
I remember making a comment in a thread ages ago about this as i could tell something was up because 12-18 months ago they had 25 cars in there on average, mainly exotics.
