Arizona Honda Goes South

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Arizona Honda, built to American Honda's "Tier 5 Powerhouse" dealership specifications, has fallen victim to the sour economy.

Owner David Phillips told the Arizona Star the 25,000-square foot dealership, opened in 2004, "didn't lose money, but didn't make much. Sales were good for two years, '04 to '06. And then when things went bad … we said, 'We can't support 25 people.' "

The Tucson dealership, one of Honda’s largest in the nation, had 60 employees at one time, but was forced to cut back over the last two years. The staff was down to 10 by December.

"In the market we're in today there are way too many dealers," Phillips told the newspaper. "There are eight dealers in Phoenix that sell Honda (motorcycles). And we've got two dealers here that are less than 10 miles away.”

The state-of-the-art dealership was under lease to the Phillips family. An American Honda spokesman says the company has already reclaimed the closed store's inventory.

Tucson now has two other authorized Honda motorcycle and ATV dealerships.

Posted by Holly Wagner