Smolich sells its Hyundai store

Published 12:00 am Saturday, November 1, 2014

Smolich Motors Inc. has sold its Hyundai franchise in Bend to the Kiefer group of dealerships based in Eugene, the Smolich company announced Friday.

The transaction is official Monday, said Mike Smolich, company president. All the Smolich Hyundai employees, approximately 20, may stay on with the new ownership, said Gena Zerbin, spokeswoman for Smolich Motors.

“This was just one of those perfect timing things where we were in a position to strategically realign our model focus and Kiefer was looking to expand their model offerings in Central Oregon,” Smolich was quoted as saying in a news release.

Kiefer, doing business as JKC Automotive Inc., owns Kia and Mazda dealerships in Eugene and Nissan dealerships in Gresham and Corvallis. It also owns Team Kia of Bend through JKC Bend Automotive Inc., according to Oregon DMV records. Team Kia opened in October 2009 at 611 NE Purcell Blvd. Kiefer also registered a Hyundai dealership through JKC Bend Automotive, Oregon corporation records state.

Kiefer approached Smolich Motors about the sale a few months ago, Zerbin said Friday. “It was just kind of a short window,” she said.

Mike Smolich, citing a confidentiality agreement, declined to say how much Kiefer paid for the Hyundai dealership at 2250 NE U.S. Highway 20. Company President John Kiefer did not return a call Friday seeking further comment.

The sale represents the fourth Bend dealership acquired this year by new owners in Eugene. Kendall Auto Group in February purchased Carrera Motors, which sells Porsche, Audi, BMW and Volkswagen automobiles on SE Third Street. In July, Kendall bought two more Bend franchises from Todd Sprague: Mercedes Benz and Toyota/Scion, also on SE Third Street.

Smolich said selling the Hyundai franchise, which the company acquired from Thomas Sales and Service in 2007, allows him to focus on the company’s core brands: Nissan, Volvo and Chrysler. Smolich sells Nissan, Chrysler, Dodge and Jeep vehicles at its lots on U.S. Highway 20. Smolich Motors moved its Volvo dealership from U.S. Highway 20 to a new lot at Grandview Avenue and U.S. Highway 97 in December 2013, Smolich said.

“I think Hyundai was happy with us,” Smolich said. “It was a profitable dealership for us. There was no particular reason that I wanted to get out.”

He said selling one dealership simplifies his oversight of the remaining operation. He plans on adding another million dollars worth of used cars on company lots.

Smolich Motors opened Allstate Corp. insurance offices at its dealerships in September through a company created by his daughter Katie Smolich-Lobos and son-in-law Rudy Lobos, Mike Smolich said. The Allstate offices sell auto, home and other insurance coverage at the Chrysler and Nissan dealerships.

— Reporter: 541-617-7815,

jditzler@bendbulletin.com

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