Manhattan Ford ceases operations

by John Tawa

Sign on the window of the Manhattan Ford showroom.
Photo by John Tawa.

Manhattan Ford closed its doors last Tuesday after 17 years in Manhattan Beach.

The Ford Motor Company decided to eliminate the dealership rather than allow AutoNation Inc., which owned the dealership, to sell it to Orange County businessman Leo Boese.

In February, AutoNation had contracted to sell Manhattan Ford and Manhattan Toyota to Boese, who intended to keep both franchises in the city. However, Ford Motor Company had a right of first refusal on the deal, which it exercised, killing the transfer to Boese.

Escrow on the Toyota franchise should close sometime this week. Manhattan Toyota will take over the entire site. A remodel is in the works, with improved parking and perhaps a new building.

The loss of Manhattan Ford is significant for the city's tax base. It has long been one of the top five contributors to the city's $6.6 million in annual sales tax revenue.

It may not be the only top sales tax producer leaving Manhattan Beach. Champion Chevrolet, another AutoNation-owned dealership based in Manhattan Beach, is expected to move to Hawthorne as part of the Hawthorne Gateway Center project at Rosecrans Avenue and the 405 freeway. And Fry's, the top sales tax producer, is widely rumored to be on its way out of the city.

Sales taxes account for 22 percent of the city's General Fund revenues. In the past two years, the city has set aside reserves to compensate for any loss of sales tax revenues.

"This is precisely why we have reserves, for such unexpected losses of businesses," explained Finance Director Bruce Moe. "It's a good thing that we do it." ER