Chicago Gains Another Luxury Vehicle Dealership

By Jay Kellwood

In fits and starts, the automotive sector has struggled to get back on its feet following the deepest recession since the Great Depression.

Home equity lines of credit used as personal cash machines helped fuel record car sales volumes over the last decade. Chicagoland is known as one of the auto industry's rare "super-metros," a metropolitan market that has unusually high vehicle sales volume and units-in-operation.

One of the retail groups servicing Chicagoland's upscale driver is McGrath Imports. While some manufacturers and dealer groups still have their finger on the pause button, McGrath is going full-speed ahead with the addition of a new Acura point in downtown Chicago.

The dealership is actually six years in the making, when the dealership was awarded the downtown Acura point in 2005. Acura owners will soon enjoy a downtown service and sales facility – the final automotive luxury brand to install a point inside the city limits.

Acura of Chicago will be the second Acura dealership in the Mike McGrath Automotive portfolio, their sixth dealership in total.

With two of the Midwest's largest Lexus locations, plus a West Side Honda and Hyundai dealership, McGrath positions themselves as retail experts in luxury automotive sales and customer service, with over twenty years of experience in luxury automotive.

When you ask Vice President Kevin McGrath if the March 11 earthquake and tsunami in Japan gave him second thoughts about launching a new Acura dealership, McGrath doesn't miss a beat.

"Not at all," says McGrath. "First and foremost, we are sympathetic towards the Japanese people during this tragedy. They have been absolutely great partners with us in our Lexus and Honda businesses, and our hearts go out to them. But the effects on our business will be very short-lived. We expect to have our inventories back up in maybe two months. This is a real testament to the Japanese people, how determined they are to get back up and running."

The new Acura facility will be a stand-alone 70,000 square foot facility, located at 1301 N. Elston, near McGrath Lexus of Chicago on West Division St. near the Chicago River. Acura of Chicago plans to offer 35 service bays and 40 loaner vehicles upon opening.

"It's important we have that stuff right when we open, instead of ramping up our loaner cars," says McGrath.

Knowing that vehicle wants and needs can differ between city and suburbs, McGrath is prepared for Acura buyers to opt for models different from what McGrath normally delivers at their Westmont location.

"I think we'll sell more fuel-efficient models like the TSX, maybe more TL sedans."

McGrath also looks forward to future entry-level vehicles, possibly sedans and crossovers that compete with Audi's A3 or BMW's 1-series. He sees technology sharing with parent brand Honda as a possibility, so customers have the option to drive hybrid technology in Acura models.

Acura of Chicago plans to open in the spring of 2012.