06-24-2008, 10:19 AM | #1 |
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Lithia closes L2 Auto Dealership in Loveland, CO
Lithia recently closed their L2 Auto Dealership in Loveland, CO.
Here's a link to the news report: http://www.mailtribune.com/apps/pbcs.../BIZ/806210308 I was surprised by the announcement because the L2 Dealership had not even been open for a full year yet. This thread is not intended to be a "slam" against Lithia - the market is tough for everyone right now. The purpose of this thread is to seek some input from dealers that are in the Colorado marketplace.
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07-02-2008, 03:24 PM | #2 |
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L2 Store closes just six weeks shy of First Anniversary
The local newspaper just ran a story on the closure of the Lovelend L2 store.
Here's the link to the news report: http://www.reporterherald.com/news_story.asp?ID=17683 This is the first time that I've seen a picture of the facility - it looks fantastic. I'm still surprised that Lithia shut the store down - especially since they do not appear to have a buyer for the facility lined up. Even in tough times I would think they would have the ability to cover their variable and semi-fixed expenses. |
07-02-2008, 06:13 PM | #3 |
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I've been there and it is a great building. I was shocked by this closure as well. Some times things just don't work.
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07-04-2008, 11:24 AM | #4 | |
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Quote:
I've read reports that the economy in the Loveland area has retracted quite a bit over the past year. Maybe the L2 store was the right idea in the wrong location? If Lithia closed either of the Texas L2 stores it would be a different story. With record high oil prices I hear that cars/trucks are selling well in Texas. |
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08-11-2008, 02:45 PM | #5 |
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Business in the area appears to be strong
In answer to the original question, the failure of the L2 store in Loveland may be more of a reflection upon the business model than the local economy.
An article that appeared in the local newspaper cited two dealers that indicated that the car market in the Loveland area is still strong. In fact, the local Chrysler, Jeep, Dodge dealer that moved to the same auto-mall location shared by Lithia's L2 store reported a 20% increase in sales - not bad when Chrysler is down 20% across the country. Here's a link to the news report: http://www.ncbr.com/article.asp?id=94984 |
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