The California Dodge Chrysler Jeep dealership in Lompoc has closed, the second of the city’s major auto dealerships to shutter in less than a year.

Customers were turned away Wednesday morning from the dealership, 415 W. Central Ave. A moving truck was seen beside the sales office, and the dealership cars closed off customer parking on the lot.

Timothy and Shawna Costa, owners of the dealership, declined to comment.

Chrysler spokeswoman Curtrise Garner, in Michigan, confirmed the dealership closed effective Tuesday.

Garner said specific information about dealers, their financial situation and relationship with their corporate office were confidential. She said a dealership closure can occur for several reasons.

“Sometimes its a breach of contract — somebody can get in trouble with the law, or the sales or service departments can not be performing up to standards,” she said.

Lompoc Valley Chamber of Commerce head Denny Anderson said the loss of jobs and sales tax was a blow to the community.

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“They’ve been a valuable asset from the time they came to Lompoc, so obviously we’re sorry to see them go,” he said.

The California Dodge Chrysler Jeep dealership was built in 2003, and the Costas took ownership in 2006. At that time they reported having 200 cars in their inventory.

The dealership and service center closure means Lompoc residents will have to travel for dealership service, with the two closest sites being Iversen Motor Company in Santa Maria and Santa Barbara Chrysler Jeep Dodge.

“It’s always tough to see a local businessman have to close his doors,” Iversen CEO Alan Claycamp said Wednesday.

Ted Elswick, owner of Chrysler Product Repair in Lompoc, said he had traded referrals and did regular business with the dealership’s service department.

“I’m upset because I depended on him for parts,” Elswick said.

Both Anderson and Elswick said they had heard rumors the dealership was in financial trouble prior to the closure.

City Finance Director John Walk said that car dealerships provide the city with a substantial amount of sales tax revenue, even with the current downturn in the automotive industry.

“In the 2007 calendar year, they represented 14.1 percent of our sales tax,” Walk said.

The city lost its sole Ford dealership in September 2007, citing falling sales figures. Walk said that the missing revenue from both sites would at least temporarily decrease the amount sales tax revenue going into Lompoc’s general fund.

Walk said replacement businesses could eventually fill the void, as in the case of the Ford dealership site, where a Hilton Hotel is being developed.

“In all likelihood it’ll bring in more revenue than the Ford dealership,” he said.

Glenn Wallace can be reached at 737-1059 or gwallace@santamariatimes.com

August 7, 2008