Progress at Southwest Volkswagen

Work continues at Acadiana's first Volkswagen dealership in two decades. Southwest Volkswagen is under construction on Johnston Street, just past Duhon Rd. (across from Giles). The dealership is owned by the same folks who own Southpoint Volkswagen in Baton Rouge.

If you're thinking this may be the worst time ever to open a new car dealership, you may be right. Many experts are assuming that Americans simply will not buy as many cars as we did just a few years ago. But, there are indicators that show Lafayette should be able to support this dealership. First off, we're doing better than almost every other part of the country. People are still buying cars here. Also, this New York Times story says European brands, like VW, are gaining market share as companies like GM and Chrysler meltdown.

From Daiquiris to Used Cars

For years, it was the little daiquiri shack on Johnston with the alligator on the sign. Soon, it will be the street's latest car dealership. The former Daiquiri Hut at Johnston and Antigua will soon become Southwest Autosport. Construction has begun on the small building, and I'm not sure how many cars you can squeeze onto that lot. Here's what the building used to look like... remember?


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GM Closures Out Today, List Still Secret

Today - GM will tell about 1,000 dealers they'll no longer be needed. This comes just a day after Chrysler cut more than 700 dealers (Frenzel in Abbeville, Jackie Edgar in Franklin and Shetler-Corley in Crowley). So far, the GM list is remaining secret. The company claims it's telling dealers the tough news, and getting the word out is up to the dealers.

Just like Chrysler - I'd suspect some of our small-town GM dealerships in Acadiana could close. Luckily, Lafayette only has one franchise per GM brand (Service Chevrolet, Courtesy GMC / Buick / Pontiac / Cadillac). This means it's very unlikely a Lafayette dealer will close. I'd say the same is probably true for Opelousas and New Iberia dealers. Dealers in smaller cities may be on the bubble. I'll be watching for the list - multiple news sites say they're trying to compile their own versions throughout the day. If you hear anything - let me know at onthegreaux@gmail.com.

UPDATE 5/18/09 It looks like all Acadiana dealerships have survived this round of GM cuts. I haven't even read about any Louisiana dealers being tapped for closure. From my research, it looks like most of the dealerships affected are in the Northeast and Midwest.

Abbeville, Franklin, Crowley Chrysler Dealers to Close

According to a list of Chrysler dealers set to close, Frenzel Motors in Abbeville, Shetler Corley in Crowley and Jackie Edgar Chrysler Supercenter in Franklin will shut down. The list is on the New York Times' website, and is cited as a record from bankruptcy court. Chrysler is shutting down nearly a quarter of the company's dealerships.

The dealerships on the list range from very small town stores, to one in Midtown Manhattan. So far, 16 Chrysler dealers in Louisiana are being asked to close - most are Chrysler / Dodge / Jeep dealers, some only sell one or two lines.

ACADIANA

• Frenzel Motors, Abbeville


• Jackie Edgar, Franklin


• Shetler Corley, Crowley

LOUISIANA

• Adams Motors, Logansport


• Barbera, Napoleonville


• Debeaux, Vivian


• Bill Hood, Amite


• Furey, Bogalusa


• Leglue, Alexandria


• McMickens, Alexandria


• Madere's Garage, Hahnville


• New Roads, New Roads


• Oakdale, Oakdale


• Orleans, New Orleans


• Smith, Winnfield


• Roundtree, Shreveport

These dealers will have the opportunity to appeal Chrysler's decision - but I'd say any reversal is unlikely. Chrysler is not making cars right now - they're giving dealers time to sell current models before production with more input from new partner Fiat begins. The bankruptcy status could mean many of these family-owned businesses end up with not much other than their physical buildings.

INTERESTING NOTES

• There may be some silver lining for Lafayette dealers. These cuts leave Lake Charles and Alexandria with NO Chrysler dealers. Jeeps, Dodge trucks and minivans are still popular. People will have to buy them somewhere.


• In places like Crowley and Abbeville, many will probably stop buying Chrysler products. That means they'll be buying cars from other local dealers who may be hurting right now.


• Even though the Acadiana dealers that are closing are in small towns - this will be another devastating blow to local ad sales. From TV and radio to local papers, these dealers have spent money getting their message out for years.

UPDATE - Even though Mark Dodge Chrysler Jeep in Lake Charles is on the list, KPLC reports the dealership will not close. Mark's owner says an Atlanta dealership he owns will close. Evidently both dealerships were listed as having the same Lake Charles address. Read the story here.

First Lafayette, Now New Orleans Without Saturn Dealer

The Times-Picayune reports all three Saturn dealerships in the New Orleans metro area (Slidell, Metairie and Harvey) will shut down Wednesday. GM has announced it will stop building Saturns at the end of 2009. Saturn's brand (still loved by many) and its dealer network are seen as valuable assets, and GM is open to selling the line. Penske (car parts chain) and an Oklahoma firm are both considering buying Saturn.

Saturn of Lafayette closed earlier this year. It had just been bought by the Courtesy Automotive group - owners told reporters they didn't see a future in the brand. The Mann family brought Saturn to Lafayette and ran the dealership for many years before selling to Courtesy.

The Bohn family owns all three New Orleans-area Saturn dealerships. In the T-P article, Van Bohn said the Slidell site will sell Kias, and an Audi dealership will open at the Metairie site. A Saturn executive is quoted saying the Metairie store was one of the company's top-selling markets before Hurricane Katrina

This week, GM is expected to cut 2,600 of its 6,000 dealers. Chrysler is also reportedly cutting 800 dealers soon. I'll keep my eyes open to see if any Acadiana dealers will be affected. So far, my sources say they haven't heard of any local dealerships shutting down.

Cajun Car Shuffle Continues - Suzuki to Sterling

POSTED 5/6/09

Driving on North University this afternoon, I noticed Sterling has taken over the local Suzuki franchise. A new Suzuki banner is hangs next to the Kia sign at the dealership's lot on University at Willow. Dealership employees tell me Sterling took control of Suzuki about two months ago from Acadiana Dodge. Suzuki is taking space vacated by Sterling's Hyundai dealership - which moved to Johnston Street.

This is just the latest shuffle on the local car scene, as many franchises have changed hands in the last year. Also complicating matters - the car companies themselves are in an unprecedented slump. In case you're confused about where to find your next car... here's a rundown of who has moved where.

NOTE - almost every car dealership moved this week. They're all trying to get you to buy new wheels at the car show at Cajun Field.

• Suzuki - now Sterling on N. University (formerly at Acadiana Dodge on the Evangeline Thruway)


• Sterling Hyundai - now on Johnston Street (at former Mazda lot, Hyundai used to be on N. University)


• Courtesy Mazda - now on Ambassador Caffery (at former Saturn lot, Mazda used to be on Johnston, before that at Lafayette Motors on Jefferson Blvd.)


• Acadiana Jeep / Chrysler - now on Evangeline Thruway (formerly at now-defunct Lafayette Motors on Jefferson Blvd.)


• Saturn - Closed. I did notice Saturn of Baton Rouge looks like it has a huge number of cars. Maybe some came from Lafayette?


• Giles Nissan - now on Duhon Rd. near Johnston (formerly further south on Johnston)


• Giles Subaru - new to Lafayette, at same Nissan / Volvo location


• Volkswagen - new dealership under construction across from Giles. Will be operated by owners of Southpoint VW in Baton Rouge.