Findlay Volkswagen Flagstaff

The Nevada-based Findlay Automotive Group carefully researched Flagstaff before committing millions of dollars to open a new Volkswagen dealership here last month.

The news was good -- they learned that there were thousands of loyal VW owners already in Flagstaff and the brand was the top request from residents who wanted the city to bring new dealerships to the auto mall.

Robby Findlay, the general manager for Findlay Volkswagen, said spending millions to open a new car dealership in the midst of the deepest U.S. economic downturn in a generation might seem counterintuitive. But the research suggests there was an untapped market for the popular European brand.

"We've done the research and there is a lot of demand for Volkswagen," he said. "We came in with nothing guaranteed, but we know there are a lot of people loyal to Volkswagen who would love a facility here so they don't have to drive to Prescott or Phoenix."

Findlay Automotive Group also bought the Bob Sellers Toyota dealership prior to its move to the Flagstaff Auto Mall. It now operates under the name Findlay Toyota.

Findlay said the Volkswagen brand is a good fit for the community, noting the all-wheel drive vehicles and the gas-sipping diesel models are expected to make up a bulk of their sales.

While waiting for the VW dealership to be built, Findlay said he saw dozens of heavy commuters who were looking for new fuel-efficient cars at the Toyota dealership.

"We see it all the time, people driving 35,000 to 40,000 miles a year -- that is triple the normal driving," he said. "They are definitely attracted to the diesels -- traditionally the cars last longer, get great gas mileage and the new clean diesel engines are great for the environment."

A fully decked-out Volkswagen Touareg SUV can cost as much as $50,000, while the base price for a Golf sedan is under $20,000.

But Findlay's initial plans for the lot on Marketplace Drive didn't call for a Volkswagen dealership. As late as a year ago, a Saturn dealership had been planned for the site and work had begun.

The Findlay Automotive Group eventually decided to ramp up the timetable for the VW dealership as the future of the General Motors-owned Saturn line became bleak.

"We halted construction for a while to see what was going to happen, but it became pretty evident that it was a lot safer to push up (the opening of the Volkswagen dealership) than wait for the Saturn store to finally open," he said.

Changing from one brand to another wasn't as simple as ordering a new sign for the dealership -- each brand has very specific aesthetic details that had to be met before corporate offices would sign off.

"We had to make major changes," Findlay said. "We had to knock down three of the four walls to do the big glass front for the marketplace look for Volkswagen."

Having two dealerships in the same town does have some advantages, Findlay said.

While the sales teams are separate, the dealerships do share other staff members.

VW had a presence in Flagstaff until 2001, when the state Motor Vehicle Division served a "cease and desist" notice on the Joe Florek Volkswagen and Audi dealership.

At the time, the dealership had lost its bonding ability and was the focus of an FBI probe into allegations of bank and odometer fraud and selling damaged vehicles.

The U.S. District Court in Phoenix would later order 13 employees of the defunct dealership to pay more than $2.2 million in restitution to the victims identified in the case.

Findlay Volkswagen hired 16 employees for the new dealership, including one mechanic who used to work at the last Flagstaff VW dealership.

"Our lead technician was at the Joe Florek Volkswagen. When it closed, he went to Larry Miller Toyota down in the Valley, but once he heard we were coming he was one of the first people on my doorstep," Findlay said.