Pittsburgh businessman David Scaife has expanded his car sales activities in the region, recently taking over operations of a Nissan dealership near Johnstown in Cambria County.
Scaife, the owner of Auto Palace Porche on Baum Boulevard in North Oakland, is operating the Nissan franchise on Scalp Avenue in Richland under the name Auto Palace Nissan. He purchased the franchise and started operations Sept. 1, said Aaron Comstock, general manager of his dealership operations.
"We saw this as a great opportunity," Comstock said. The previous franchisee for the Nissan dealership was Team Motors, a business that owns Chevrolet and Kia dealerships in the Johnstown area.
The franchise Internet site lists just under 100 vehicles for sale, including 2008 and 2009 models, ranging in price from $15,000-plus Nissan Versa sedans and hatchbacks to Nissan SUVs running at more than $40,000.
State records show the business is owned by DNS Nissan LLC, on Baum, with Scaife shown as manager. A purchase price was not disclosed.
Despite the economic downturn and its impact on domestic automakers Chrysler, General Motors and Ford, Scaife's team is optimistic about prospects for both the new venture and its existing business in Pittsburgh, Comstock said.
Japanese automakers are in far better financial state than their American counterparts, but they are getting battered in the shrinking market.
In November, when auto sales plunged 37 percent to their worst level in more than 26 years, Toyota's sank 34 percent, Nissan's were down 42 percent and Honda Motor Co.'s fell 32 percent.
In Western Pennsylvania, Nissan has been among the Japanese brands gaining market share -- with a 1.1 percent increase over the last nine months, according to figures from the Greater Pittsburgh Automobile Dealers Association, which includes some dealers in the Johnstown area.
The brand is projected to increase new car and light truck registrations by 7.1 percent this year, the association said in its 2008 third-quarter Pittsburgh Auto Outlook report.
"The economy is causing everyone concern, and there is a downturn in auto sales across the board," Comstock said. "But we're looking forward to making it through the downturn and moving forward."
Plans are to continue to operate the Richland Nissan dealership at its location under a lease agreement until sometime next year when Scaife hopes to have a brand new complex built at a nearby site.
Comstock did not disclose the location because the purchase of the property isn't completed and plans still are being developed.
"We want to build a state-of-the-art facility. We think it will be exciting and will create a lot of customer traffic in that area," he said.
While Scaife expanded his business in Johnstown, in November he finished renovation of his existing dealership on Baum Boulevard. Comstock declined to disclose the cost of the renovation, which was completed Thanksgiving week, but said the investment was "substantial."
"We completely gutted and remodeled the showroom, and added drive-in service, he said. "It was a complete renovation."
Scaife, who is the son of Tribune-Review owner Richard M. Scaife, has owned the Baum Boulevard site since 2000 and operated the Porche franchise since 2002, said Comstock. Based there is his Spyker of Pittsburgh, a business that sells hand-built luxury vehicles.
Also located there is Scaife's Race Car Museum, a private collection of about 15 classic cars, including such makes as Porsche, Jaguar and Ferrari, that is not open to the public.
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