Car lots compromise on city designs
Sunday, September 12, 2004

By JEANNIE CLAIRE
Register Business Editor

With revitalization plans taking place on Napa's Soscol Avenue auto row, local dealers are optimistic about business. But the current drive to update and remodel Napa auto dealerships is not necessarily a sign of an economic turnaround, according to William Kastner Jr., general manager of Kastner Pontiac GMC Honda. "I don't think that most people realize the auto industry has not taken a downturn," he said. "Napa as a whole is a good community (with) a stable economic base." Kastner said his company is the oldest single-family-owned dealership in Napa, established by the Kastner family in 1949. Kastner contends a little revitalization along Soscol Avenue doesn't hurt the auto business. "I think improving anything is a good idea," he said. He said he supports the city of Napa's plan to upgrade the corridor "as long as they're reasonable."

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Kastner said that, in the past, the city wanted his dealership to move its vehicles 50 to 70 feet away from Soscol Avenue, and plant more trees and grass. "That would have eliminated 80 percent of my parking. We ended up not doing the upgrade we wanted at the time," he said.

The city's current plan calls for auto dealers to construct new buildings closer to Soscol Avenue and have cars kept to the side or the rear of the buildings. However, auto dealerships need to have outside display cars parked closer to the road to help with sales, according to Kastner. "These are things the city needs to take into consideration," he said.

Kevin Massie, owner of Napa Ford Lincoln Mercury, also expressed concerns. "I think personally the city's vision is a good thing to make it look nicer on Soscol Avenue. The problem is the expense of it and coming into compliance with it."

Rich Bottarini, Napa community development director, contends the city is sensitive to the auto dealers. "We have some requirements. We (realize) we can't ask (auto dealers) to cover all of the costs completely," he said. "What we are trying to do is upgrade the image of the Soscol corridor. We are trying to find a compromise that works for everyone. Planning is not a science, it's an art."

Some dealers are opting to stick with the city's plan and ignore guidelines set by franchises. "Honda's, GMC's and the city's ideas are three different things," said Kastner. "When Kastner does remodel, it will go toward the city design, so we don't have to deal with the franchises."

Meanwhile, Scott Jenson, owner of Jenson Motor Center, said the dealerships in Napa support each other on improvements. "We like people in Napa to buy cars in Napa. There is no reason to got out of town. We can offer the same prices as dealers elsewhere," he said.

Overall, Napa dealers seem to be faring well. Napa Nissan Inc., for example, has experienced a 33 percent increase in business since last year, according to Vince Compagno, general manager of Napa Nissan. "The bad economy hasn't affected us, and Nissan has expanded its line of (vehicles) which has helped us."

Nationwide, the auto business hasn't been as strong.

U.S. sales of new cars and trucks fell to 16.7 million units in 2003, the lowest total since 1998. In terms of dollar value, new vehicle sales rose a slight 4.3 percent for the year from the 2002 total, according to U.S. Commerce Department estimates. But sales picked up near the end of the year, and analysts are looking for this year to be good for dealers.

"In 2003 the car business was down nationally, but Jenson Motor Center had a record year," Jenson said. "Industry experts predict four years of growth in the car business. This is enhancing optimism. Everyone is feeling optimistic about the car business."

Massie has seen an increase in commercial vehicle business.

Unlike many of its neighbors, Napa Ford Lincoln Mercury has no plans to remodel, according to Massie. The company has added new signage for Ford and Lincoln, he said.

Massie said the company is also planning to add about 10 full-time employees to its current staff of more than 40.

Jeff Mitchell, sales manager at Greenberg's Quality Motors, said the used car industry has been doing well. Greenberg's is a used auto dealership with two locations on Soscol Avenue.

"Everything has been positive so far," Mitchell concluded. "Beautification will be nice all the way around. That will be good for business."