Lamborghini O.C., largest dealer of exotic cars, closes

Seth Brundle

Lamborghini O.C., largest dealer of exotic cars, closes

Automaker blames poor management, not economy, for demise.

By JOHN GITTELSOHN
The Orange County Register
The world's largest Lamborghini dealer, Lamborghini Orange County, has closed and owners aren't saying why.

"I can't talk about anything," said Vik Keuylian, owner of the Santa Ana-based dealership.

Keuylian previously said he sold about 10 percent of all 2,400 Lamborghinis made in the world each year. Lamborghini announced plans to move its North American headquarters to Santa Monica, in part, to be close to its largest dealership.

Automobili Lamborghini America said the dealer closed because of its own mistakes, not the economy.

"The financial stress Lamborghini Orange County is experiencing is due to several unfortunate business decisions made by management at Lamborghini Orange County, independently of Automobili Lamborghini," said Pietro Frigerio, chief operating officer of Lamborghini America.

"Many companies have felt an impact by the current economic situation, but the economy is not the reason for Lamborghini Orange County's financial situation. Though, the economy has exacerbated the situation."

In an interview this spring, when other auto dealers were suffering from the economic downturn, Keuylian said he continued to prosper.

"This April was better than April '07,” Keuylian told the Register. “Other dealers are turning down cars and we’re picking them up and selling them at a profit.”

A spokeswoman for Volkswagen, which owns Lamborghini, would not answer a question about whether the company had pulled the line of credit Keuylian needed to keep cars on his showroom floor.

"While we don't comment about our business relationships with our dealerships, Volkswagen's credit business continues to remain strong," said Jill Bratina, a spokeswoman for Volkswagen Group of America.

At least nine Orange County auto dealers – selling Chevrolets, Chryslers, Dodges, Nissans, Saturns and other brands – have closed since January, brought down by sluggish sales and tight credit.

But Lamborghini Orange County is the most glamorous of the bunch. Customers included NBA stars Kobe Bryant and Dennis Rodman. The Keuylians threw promotional parties with celebrities such as Elton John and Sharon Stone. They helicoptered actors Eric Roberts and Luke Perry from Los Angeles to Orange County for a company party in April.

The Orange County dealership at 2441 S. Pullman St. in Santa Ana is now padlocked. The lot previously brimming with orange and lime 12-cylinder, $600,000 Murcielagos and Gallardos customized by designer Versace – is vacant.

No sign explains the closure or tells customers where to go for repairs or how to pick up cars on order.

The answering machine on a phone at Lamborghini Calabasas, also owned by Keuylian, said it was not accepting messages. A recently opened Lamborghini showroom on West Coast Highway in Newport Beach also has closed. And Keuylian's plans for a lavish new showroom there never materialized.

source...

junkyard

It will be the first of many, even though they say it's bad management the truth is stuff isn't selling and those that are buying can't get finance as the lending companies are afraid to loan money.

cashmni1

junkyard wrote: »

It will be the first of many, even though they say it's bad management the truth is stuff isn't selling and those that are buying can't get finance as the lending companies are afraid to loan money.

+1
I think I read on here that BMW are closing down one of the factories in Germany or down to a few days a week or something on those lines.
Point being, turnover of new cars just isn't there any more. New cars, are not selling and the first most visable to take the hit are the exotic and expensive ones.
As you say, the first of many to come. Unfortunately, mind you !!

galwaytt

junkyard wrote: »

.....those that are buying can't get finance as the lending companies are afraid to loan money.

You can sing that. We have customers who've cancelled orders, not because they don't want, or need, the items, but simply because the banks have changed the rules.

****ing stupid - the Banks are the ones who caused this in the first place!!

pburns

galwaytt wrote: »

You can sing that. We have customers who've cancelled orders, not because they don't want, or need, the items, but simply because the banks have changed the rules.

****ing stupid - the Banks are the ones who caused this in the first place!!

Yeah the banks are to blame but so are the people who dug themselves a big hole of debt buoyed up by easy credit. Maybe I'm old-fashioned - blame the banks, blame the government by all means but there is also such a thing as individual responsibility. The concept of saving at least a large proportion of something you want rather than just whacking up a pile of loans seems totally lost to most of those who left school during the 'Celtic Tiger' years.

Sandwich

I wouldnt blame the banks at all. If anything they are the ones now getting their houses in order. The credit crunch h as forced them to acknowledge they cant keep lending money that doesnt really exist. The global pyramid scheme crashed guys.

smash

Damm.... no more lambo girls

Newcarneeded

The one on the left has had more work done than a 5 owner Starlet Turbo. She also has marathon runner arms and I've never seen airbags as big as hers on a marathon runner! The one on the right would of course make a great trophy wife. If only I was a premiership footballer.. but I don't think I'll be pulling any Lamborghini girls with my motor.

But I digress, to get back on topic I wouldn't be surprised if some dealers here are coming under serious pressure from the banks.

I think in the current environment those feeling it are those that "geared up" and borrowed during the boom years. All well and good and easy to service when cars are flying out the door at top prices but not so easy now when sales are down 55% in a year, the banks are frightened and trying to call in some of their loans to preserve their capital, or changing that interest only facility to interest plus capital.

And then your potential buyers are facing rigorous lending criteria from the banks resulting in some sales not closing because they can't get the credit.

Bill Cullen was quoted in the Sunday Times that there were "a lot of Taj Mahal's built." There has to be some of those feeling a serious pinch in the current environment.

Captain Slow IRL

Newcarneeded wrote: »

The one on the left has had more work done than a 5 owner Starlet Turbo.

So?!

Fozzie Bear

Captain Slow IRL wrote: »

So?!

So..... much like a 5 owner Starlet Turbo she probably has high milage, been driven hard, will fall to bits if you don't handle her gently, will have high maintenance cost, looks far better then it actually is, sounds awful and has had several pikey types inside her:D

traco

junkyard wrote: »

It will be the first of many, even though they say it's bad management the truth is stuff isn't selling and those that are buying can't get finance as the lending companies are afraid to loan money.

Typical order books are down by 30-50% in the automotive suppliers market, from electronics to metal and this is accross all brands including the big boys.

Captain Slow IRL

Fozzie Bear wrote: »

So..... much like a 5 owner Starlet Turbo she probably has high milage, been driven hard, will fall to bits if you don't handle her gently, will have high maintenance cost, looks far better then it actually is, sounds awful and has had several pikey types inside her:D

So, you're saying you wouldn't?!

peasant

Captain Slow IRL wrote: »

So, you're saying you wouldn't?!

no he wouldn't ...because the discussion of the female form ends here and now.

This is a motors forum.

vectra

Fozzie Bear wrote: »

So..... much like a 5 owner Starlet Turbo she probably has high milage, been driven hard, will fall to bits if you don't handle her gently, will have high maintenance cost, looks far better then it actually is, sounds awful and has had several pikey types inside her:D

That has to be the funniest reply I have read on here in years

{ Sorry Peasant }

Back on topic please guys
Keep it clean :P

tdc

vectra wrote: »

That has to be the funniest reply I have read on here in years

+1

Manic Moran

I'm not so sure about the disagreement with the bad management claim. People who can afford to throw a quarter-million on a Lambo probably will not have any huge difficulty getting a loan (if they even need one) even in today's economy. Super-luxury items tend to be fairly recession-proof.

NTM