Jackson Auto closing Nimitz dealership
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Jackson Auto Group has closed its N. Nimitz Highway dealership amid a continuing soft economy and slumping auto sales.
Its Lincoln-Mercury franchise is being assumed by Honolulu Ford in a buyout, pending approval from Detroit-based Ford Motor Co.
Most of Jackson's employees have transferred to the company's Volvo dealership or will be hired by Honolulu Ford.
Pennsylvania-based Auto Outlook Inc., which tracks local automotive market activity for the Hawaii Automobile Dealers Association, has projected that the local auto industry will not see recovery solidify until 2010.
ERIKA ENGLE
CINDY ELLEN RUSSELL / CRUSSELL@STARBULLETIN.COM
Jackson Auto Group has closed its doors on N. Nimitz Highway. Most of its nearly three dozen employees have been transferred to Jackson Volvo, or will be hired by Honolulu Ford.
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Jackson Auto Group has closed its airport-area auto dealership at 2945 N. Nimitz Highway.
Its phone number is disconnected and owner Clarence "Jack" Jackson did not respond to Star-Bulletin inquiries.
Jackson's Lincoln-Mercury franchise is being assumed by Honolulu Ford in a buyout, though according to the dealership, the arrangement must be approved by Ford Motor Co. in Detroit.
Any grand-opening announcement is pending that approval.
Jackson's Pontiac franchise reportedly was assumed by Honolulu-based Pflueger Auto Group, though officials of the latter also did not return Star-Bulletin calls.
Most of the nearly three dozen employees were transferred to Jackson Volvo on Ala Moana or will be hired by Honolulu Ford, according to reports.
Hawaii's automobile dealers have seen their bottom lines squeezed as they continue to log year-over-year declines in sales.
Pennsylvania-based Auto Outlook Inc. earlier this year projected sales declines to continue through this year with lasting recovery not rolling around until 2010. It tracks local market statistics for the Hawaii Automobile Dealers Association.
Interviewed by the Star-Bulletin earlier this year, University of Hawaii Associate Professor Peter Flachsbart cited a triple-whammy of events causing an upturn in consumer caution and downturn in their spending where possible.
In June he cited the mortgage crisis, airline closures and gas prices as some reasons people were reducing discretionary spending.
At that time, car dealers such as Nick Cutter, president of Cutter Family Auto Centers, cited the credit crunch for slowing sales as consumers found it more difficult to qualify for financing.
At the same time, Joe Nicolai, president of JN Group Inc., cited sweeping military deployments for softening sales at his "bread and butter" dealerships offering domestic vehicles.
Several businesses have since closed or announced layoffs, as Hawaii's economy continues to struggle.