Economy claims Las Vegas auto dealership

By Steve Green

Published Friday, Feb. 27, 2009 | 4:16 p.m.

Updated Friday, Feb. 27, 2009 | 5:55 p.m.

A big auto dealership closed Friday in Las Vegas as struggling Chrysler LLC tries to reduce its dealership count nationwide.

AutoNation Inc. of Fort Lauderdale, Fla., said the dealership closing is at 4701 W. Sahara Ave. and operates as three brands: Desert Chrysler, Desert Dodge and Desert Jeep.

AutoNation said it has no plans to close other dealerships in the Las Vegas area. The Desert dealership with the Chrysler, Dodge and Jeep brands is part of Desert Automotive Group, which includes dealerships selling Audi, BMW, Buick, GMC, Honda, Lincoln, Mercury, MINI, Nissan, Pontiac, Scion, Toyota and Volkswagen vehicles.

"We have no plans to close any other dealerships in that market,’’ AutoNation spokesman Marc Cannon said. "We love the Las Vegas market.’’

He said the Chrysler, Dodge and Jeep dealership was closing solely because of Chrysler’s consolidation program and that there were no credit issues behind the closure, as has happened with some other U.S. auto dealers that closed.

Cannon said Chrysler had too many dealers in the Las Vegas area and will continue to sell its vehicles here through other companies. He said it’s important for dealership groups to step up and help struggling manufacturers with their dealership consolidation programs.

Cannon didn’t know how many people worked at the dealership, but said that as many as 75 people had worked there and that AutoNation would try to place some of the employees there in other dealerships.

He said the company would not disclose any plans for the dealership’s real estate.

Chrysler LLC officials couldn’t immediately be reached for comment. The company, like General Motors, is fighting for survival and is seeking additional aid from taxpayers to stay open. Chrysler, already the recipient of $4 billion in federal aid, is seeking another $5 billion as the U.S. recession continues to decimate auto sales.

Automotive analysis firm Edmunds.com of Santa Monica, Calif., this week estimated new vehicle sales this month nationwide are expected to be 685,000 units, a 41.4 percent decrease from February 2008 — with Chrysler especially hard hit.

The combined monthly U.S. market share for Chrysler, Ford and General Motors domestic nameplates is estimated to be 44.2 percent in February 2009, down from 52.2 percent in February 2008, Edmunds.com said.

Edmunds.com predicts Chrysler will sell 67,000 units this month, down 55 percent from February 2008 but up 9.1 percent from January 2009. This would result in a new car market share of 9.8 percent for Chrysler in February 2009, down from 12.8 percent in February 2008. Ford’s monthly decline was forecast at 49.6 percent and GM’s at 48.4 percent.

AutoNation has had its own issues associated with lack of demand for new cars, cutting orders from manufacturers 60 percent this quarter as it works to remain profitable. The nation’s largest chain of auto dealerships earned $67.1 million in the fourth quarter.

Steve Green can be reached at 990-7714 or [email protected].