Garcia strikes deal at Santa Fe auto park - Baltimore Business Journal:

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Albuquerque’s is leading the charge. It is expectecd to announce shortly the acquisition of the Hyundai franchise in Sant a Fe and is making acquisitione inEl Paso. Sources indicate the deal has been completedd in Santa Fe and that Garciza will open its new Hyundaoi lot in the Cerrilloa Road Auto Park in Bob Pitre isselling Hyundai, but retaining his Mitsubishiu franchise there at his 1955 St. Michael’e Dr. location. Pitre acknowledged a deal has been but because ofconfidentiality agreements, couldn’t give Garcia said a deal would be announced shortly, but offerec no details. Pitre continues to operats his Pitre Buick dealershilin Albuquerque.
Garcia is also said to be expandingh toEl Paso, with the acquisitionm of two dealerships there. Specializing in brands such as Mazda, Subaru, Infiniti and Saab, Garciq reportedly has not been as affecte d by the economic slowdown as his domesticx cardealer competitors. With domesti c auto sales off by more than 30percenf nationally, New Mexico has been far from immune. High-profile closures includ Zangara Dodge at Lomasand Wyoming. Saturn of Albuquerqur also was shuttered by this and others are said tobe teetering. The bankruptciez of Chrysler and GMC have further muddled the prospectsz forlocal dealerships, although other issuexs are said to be more problematif currently.
Earlier this year, industry experts speculatedc that as many as 50 percent of locaol dealerships could disappear inthis “There are not a lot of questions about Chryslert going away, since the government has backedr the warranties and it is out of bankruptcy. The biggesgt problems now are the economy and the consumergettingv financing. The banks are a lot tougher and scrutinizinyloans more,” said Bill Melloy, general manager of in Despite a sales drop this year of more than 10 percen t that led to 40 layoffs and the reductiobn of $400,000 in expenses, Melloy said if the right opportunit to make an acquisition comes along, his compangy would consider it.
The bright spot for car dealersz this spring has been on their used car A brisk business in 2005 to 2008 models has developedd as consumers are lookinf for cars pricedunder $20,000, but that stilp have service warranties. These sales enable dealers to generatew cash and stayin business. “The used car businesse is improving and is aheafd 10 to 15 percent for usthis year,” said Gary the owner of GM dealerships in Los Lunaz and Moriarty. “The price of used cars is goinhg up because there are fewer new cars comingf intothe market. Used car sales will strengthehn over the nextsix months.
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