Corpus Christi Caller Times Caller.com - Local dealership is counting on Suzuki comeback

Marketplace \| Services \| Contact Us \| Community \| Arts & Entertainment \| Local Guides

Tuesday, July 13, 1999

Local dealership is counting on Suzuki comeback
Firm plans to develop larger vehicles to capture the hearts of Americans

   It's likely that not many people noticed when Port City Automotive Group gave up its Suzuki franchise in 1997. Despite being Japan's No. 1 auto seller, American Suzuki Motor Corp. has struggled to move cars off lots in North America.
   Fog Automotive Inc. is counting on that to change - so much so that the company secured the local franchise last summer and opened a dealership here in April.
   "(Suzuki has) committed that they're going to get much more aggressive in the U.S. market," said Tim Faith, dealer-principal of Suzuki Auto Center at 4002 S.Padre Island Drive.
   Suzuki's push in the United States promises to be more than just an advertising blitz. The company - better known here for motorcycles and outboard motors than cars - has committed to developing autos for North American buyers, Faith said.
   The automaker has had some success in the United States. During the mid-1980s, its small four-wheel-drive Samurai was a good seller. But the company since has failed to win the hearts of American consumers.
   Faith said Suzuki has recognized its mistake. Now, Suzuki and Fog Automotive are betting on a comeback.
   "They're one of the highest-quality manufacturers around for their price range, but they've never developed vehicles big enough for Americans," Faith said. "They've always had fuel-efficient vehicles, but again that's in countries where gas is $4 a gallon. In 80-cent America, fuel efficiency just doesn't matter that much.
   "They actually have the No. 1-selling vehicle in Japan, but those are small and mini-vehicles. They don't translate well into the U.S."
   Things have already started to look up. In June, U.S. sales were up 91 percent from a year earlier. Year-to-date, the company's sales are up 12 percent compared with 1998.
   Fog Automotive came to South Texas in 1992 when it bought the Chrysler-Plymouth-Dodge dealership in Kingsville. It added a Jeep franchise and sold that dealership in 1994. Since then, the company has run a small used car lot in Corpus Christi.
   Faith sees parallels between the Chrysler of the early 1990s and today's Suzuki.
   "I was running a Nissan-Jeep dealership in Missouri and saw that Chrysler was truly getting ready to change," he said. "So we went out looking for a Chrysler store."
   Suzuki's lineup now includes the subcompact Esteem sedan and Esteem wagon that compete with cars such as the Chevrolet Cavalier, Geo Metro and Pontiac Sunfire. It also builds the Vitara and 6-cylinder Grand Vitara, small sport utility vehicles in a class with Subaru Forester, Kia Sportage, Honda CRV and Toyota RAV4.
   Faith said Suzuki is developing a pickup and larger SUV for the U.S. market. But, he adds, "It's not like a Suburban's coming any time in the near future."
   KFC closures
   South Texas KFC franchisee Restaurant Systems Group has consolidated its Southside operations by closing its restaurant at Everhart and Holly roads.
   Restaurant Systems Group opened a new KFC restaurant near South Staples Street and Saratoga Boulevard in January. After six months, sales were so strong at the new location that the company decided the Everhart store wasn't needed.
   "The Saratoga store can serve the needs of the majority of our customers in that area while we continue to evaluate needs for new, highly visible, easy-access KFC sites in Corpus Christi," said local market manager Homer Hunt.
   Based in Springfield, Mo., Restaurant Systems Group bought six KFC stores in Corpus Christi in 1997. The company now owns seven KFC stores in Corpus Christi among 58 KFC and Taco Bell restaurants in five states.
   Toys to learn by
   Corpus Christi's Robert and Tina Buchanan are opening Learning Express, an educational toy store, at 1420 Airline Road. The store will specialize in toys, games and puzzles for children of all ages that stress learning. The store will carry toys such as Brio wooden train sets, Rockenbok construction sets, yo-yos and Beanie Babies.
   Learning Express was founded in Groton, Mass., 12 years ago based on the founder's experiences shopping for high-quality educational toys for her two young children. There are now 130 Learning Express stores in 27 states. The Corpus Christi location will be the company's 15th Texas store.
   Learning Express will publish its own customer newsletter with updates of new products and store activities, and a holiday catalog. The store also will offer a frequent buyer discount card, free gift-wrapping and a children's gift registry.
   Computer help center opening
   Computer Nerdz, based in San Antonio, will open a service center at 5325 Saratoga Blvd. The business provides on-site support and service for computer users, including training, Internet and e-mail setup, computer upgrades, troubleshooting and repair.



On Retailing is published every other Tuesday in the Caller-Times business section. The column includes news of new, relocated and expanded businesses in the Coastal Bend, plus retailing trends and profiles. Ideas can be submitted to: On Retailing, Corpus Christi Caller-Times, P.O. Box 9136, Corpus Christi, Texas 78469; e-mail business editor Tom Whitehurst Jr. at whitehurstt@caller.com; fax items to (361) 886-3732 or call (361) 886-3619.