The move runs counter to a trend among some big dealership groups that want to divest their Detroit Three dealerships as they continue to lose market share. The Cecil Van Tuyl organization, for example, closed Showcase Chevrolet at LBJ Freeway and the North Dallas Tollway two years ago, and the site is being redeveloped.
But AutoNation officials, encouraged by new Chevy vehicles such as the Malibu sedan, decided instead to invest more money in their dealership -- one of two Chevrolet dealerships that AutoNation owns in this area.
"We think they can be excellent franchises in the right locations," said Mike Maroone, president and chief operating officer of Florida-based AutoNation, the largest automobile retailer in the United States.
In an ironic example of the difficulties the domestic dealers face, the dealership -- known for years as Steakley Chevrolet after its original owner -- moved to a store west of LBJ Freeway and the tollway that used to belong to W.O. Bankston Lincoln Mercury.
AutoNation opted last year to close the struggling Lincoln Mercury dealership, which was founded by one of Dallas' early auto pioneers, and the space has been remodeled.
Bankston Chevrolet sold 870 new vehicles -- including fleet sales -- last year at its old location . The top Chevy dealership in Dallas County, Friendly Chevrolet, had 8,714 sales, according to The Freeman Auto Report.
"This [new site] is strategically located to allow us to sell more cars and provide better service in a much nicer facility," said Patrick Morrison, general manager of the dealership. "We really got two bangs for the buck."
The dealership is celebrating its grand opening this weekend.
Although domestic dealerships have fallen from favor with many of the large dealership groups, they can still be profitable, noted Paul Taylor, chief economist at the National Automobile Dealers Association.
"When you run a domestic now, you learn to sell used cars and keep your service operations at a high level," Mr. Taylor said. "If you've got a dealership that can do at least 1,500 cars a year, the brand is not that important."
Unlike some Chevrolet dealerships in other regions, most here in the South Central sector do reasonably well, said Dave Nottoli, regional sales and marketing manager for Chevrolet.
"Our Chevy dealers in South Central continue to be profitable and want to invest in their facilities," Mr. Nottoli said. "We really wanted to be back on 635 [LBJ Freeway] and are glad that AutoNation will give us some presence there."
Bankston Chevrolet's former site on Northwest Highway, which AutoNation leases, will be redeveloped, but probably not for something auto-related, Mr. Maroone said.
Though AutoNation has been critical of domestic automakers in the past, Mr. Maroone said the dealership group is impressed with GM's current direction.
"We are very close to the top leaders at GM and believe they have some of the best thinkers in the industry," he said.
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