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PETROLEUM DIRECTORY: Alaska’s largest import automotive dealership puts quality first Continental Auto Group has established a position as an award-winning automotive dealership that prides itself on its customer service Alan Bailey PNA Contributing Writer
Well-trained staff, high-quality services and modern facilities all help Continental Auto Group maintain its reputation as a premier automotive dealership. The company has been in Alaska for more than 30 years and has grown from a single Volvo business to its present size of six franchises operating out of three stores.
Barrie Wiese, general manager of Continental Auto Group, told PNA that company owners acquired the Volvo franchise in 1970 and added Subaru in 1972. With the acquisition of the Suzuki, Mazda, Acura and Honda franchises in later years, the company expanded its operations to three locations clustered along the Old Seward Highway in Anchorage’s Midtown.
Construction of the Honda store, the most recent of the facilities, was completed in 1999. Two years ago the company also completely remodeled the Subaru store, enlarging the showroom, adding to the parts storage area and greatly improving the decor.
“It was totally upgraded — it looks like a new store,” Wiese said.
“Subaru is the number-one selling vehicle in Alaska — we work very hard to keep that up,” Wiese said. In fact, the Anchorage franchise is 12th in the nation for Subaru sales, he said.
Continental Auto Group employs some 160 people.
Trained staff Continental Auto Group places much emphasis on staff training; the Subaru store contains a fully equipped training center. Internal and external training ensures that all sales consultants maintain a thorough knowledge of the various vehicle models.
“(Sales people) also have to be certified by the franchises that they’re selling in,” Wiese said.
The company trains its sales consultants to pay careful attention to customer preferences. “We try to sell the way the customer would like to be sold,” Wiese said.
“When (our sales people) start at our dealership they’re put through intensive training and then they’re put on the floor with a mentor,” Wiese said. “Our sales people go to training once a day every day ... when they’re on duty.”
Financing As part of its sales services, Continental Auto Group can provide financing or arrange financing through banks and credit unions in Alaska. The company also sells insurance.
“Seventy to 75 percent of our customers use our (financing) services and we have very competitive interest rates,” Wiese said.
Although Continental Auto Group sells mostly to individuals, the company does some fleet work for businesses.
“We do some fleet (sales) — we sell to some of the rental companies in town,” Wiese said. “We will occasionally sell a small fleet to a large corporation.”
Continental Auto Group can also arrange vehicle leasing through the franchises.
Previously owned vehicles As well as selling new, franchise vehicles, the company carries previously owned vehicles of many makes and models. Many of these previously owned vehicles are trade-ins for new cars, but some come from the Lower 48.
“We also visit the auctions in the Lower 48 and ship cars up here,” Wiese said.
In the next couple of months Continental Auto Group is going to introduce its own certification program for previously owned cars, although Honda already certifies its used cars.
“If we have used cars that don’t have the franchise (certified) programs, they will have a 12 months, 12,000 miles warranty that’s honored internally by Continental,” Wiese said.
Vehicle maintenance In addition to selling cars, Continental Auto Group does vehicle maintenance at all three of its locations. Warranty work accounts for quite a lot of the maintenance activity. However, the maintenance shops can handle any vehicle make or model and the service departments take pride in doing quality work at competitive prices.
“We’re very competitive in our maintenance pricing ... with independents as well as dealers,” Wiese said.
A complete maintenance follow-up system alerts customers when lube changes and other types of servicing are due.
Maintenance technicians undergo rigorous training and require certification — critical to ensuring that everyone keeps up to date with the latest technology.
“(Our journeyman technicians) have to go through quite extensive training through the franchises,” Wiese said. “Sometimes we’ll have them out for a week or two weeks at a time.”
And occasionally the car manufacturers run special classes. In September this year, for example, experts from Subaru are going to use Continental Auto Group’s training center to train technicians from both Continental Auto Group and other automotive businesses in Alaska.
Parts inventory Continental Auto Group carries a large parts inventory both for its maintenance shops and for wholesale or retail sale throughout Alaska. The inventory includes bodywork parts, although the company does not itself do bodywork repairs. The company also carries an extensive accessory line.
Supplying parts to Hawaii also has become an innovative source of business.
“Our parts manager was fairly creative and he worked through the Internet,” Wiese said. “We contacted some dealers in Hawaii that had difficulty getting parts.” A deal with one of the air freight carriers ensures that parts reach Hawaii from Anchorage quickly and at acceptable cost.
Internet business Continental Auto Group enjoys quite a lot of business over the Internet through its Web site, www.buyatcontinental.com. Customers can buy cars, order parts or schedule maintenance appointments through this “fourth store.” The site includes a calculator to estimate financing costs and an application form for financing.
Buying through the Web site has proven particularly popular with rural customers — people from the Bush can find a vehicle or carry out a purchase without having to travel to Anchorage.
“They can go in ... look at our entire vehicle inventory,” Wiese said. “There are pictures of the used cars ... and there’s a price and a contact.” The customers can come in and pick the car up or occasionally we’ll ship the car to them, he said.
Challenges in Alaska Operating a car dealership in Alaska does pose some particular challenges.
“(Transportation) generally takes 10 to 14 days longer than if we had a dealership in the Lower 48,” Wiese said. As a result, the company has to maintain a relatively large vehicle inventory.
But the long winters tend to amplify the seasonal ups and downs in car sales, especially with the influx of people during the summer tourist season. The company needs to manage its inventories carefully, to accommodate the sales peaks and troughs.
Winter in Alaska also causes some unique problems.
“We have to deal with ... more lot damage because in the winter we’re taking snow off of our lot, de-icing our vehicles,” Wiese said. “We have to start them every day because it gets cold.”
Stellar Performer Award Despite the challenges of business in Alaska, Continental Auto Group recently earned Subaru’s prestigious Stellar Performer Award. This award recognizes the quality of the company’s complete operations.
“We were the 24th recipient in the nation to be awarded this coveted recognition,” Wiese said. “They looked at our facilities, they looked at our processes, they focused on customer treatment — it was an intensive, very complete process.” Customer satisfaction ratings also factored in the award. Quality service and customer satisfaction remain hallmarks of Alaska’s largest import automotive dealership. “We are basically here to fill transportation needs,” Wiese said.
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