Crown Subaru is shifting its Chattanooga dealership from downtown to a high-profile Interstate 75 location, where it will grow its footprint as it plans to gear up sales.
Jim Myers, president of Crown Automotive Group, said in an interview Tuesday at the construction site of the planned new store at I-75 and Bonny Oaks Drive that the company is investing about $14 million.
"It has great accessibility for the whole region," he said about the 6.5-acre tract that's double the size of the parcel holding its current dealership at Riverfront Parkway and M.L. King Boulevard.
Myers said the St. Petersburg, Florida-based company is targeting monthly sales of 200 new and used vehicles at the 41,354-square-foot location that's expected to be ready in December.
Steve Marlin, who is retiring as the dealership's general manager, said in an interview that the Subaru store is seeing more inventory as the chip shortage that hit the auto industry eases and the supply chain improves.
"Business is good," he said. "We're getting inventory back."
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Currently, Crown Subaru is leasing space at the Riverfront Parkway business it purchased from now-Chattanooga Mayor Tim Kelly in 2020. Kelly's family had operated an auto dealership there for nearly a half century.
Kirsten Yates, the city's senior adviser for communications and digital strategy, said in an email that the property is in a blind trust. She directed questions to trustee Bart Rolen, who couldn't immediately be reached for comment.
The new Crown location will include a four-vehicle, 16,136-square-foot showroom, according to the company. The facility will offer an air-conditioned delivery area, a 21-bay garage and a three-lane service drive.
Myers said the Chattanooga location fits the Subaru brand, citing the outdoors focus of the region.
He said the new location is less than an hour from the Ocoee River, which was home to the 1996 Olympics whitewater event and potential site for the 2024 World Rally Championship motorsport competition, which local officials are trying to land.
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"Many of our buyers are kayakers, climbers, hikers and bike enthusiasts," Myers said. "We hope our new dealership will be a gathering place to launch adventures wherever the drive may take them."
Marlin said the dealership already offers the Solterra electric SUV, and Subaru is ramping up more EVs and hybrids.
The bigger Subaru location is expected to have more employees, rising from about 45 now to between 60 to 70, he said.
"We couldn't be more excited," Marlin said at a groundbreaking ceremony.
Locally based Dillard Construction is building the facility, and Miller McCoy is the civil engineer.
Myers said Crown is looking to grow in the Chattanooga-Cleveland, Tennessee, area, where it already has other dealerships. In addition to Subaru, Crown has the Chrysler, Dodge, Jeep, Ram store on Chapman Road. In Cleveland, it also operates a Chrysler, Dodge, Jeep, Ram dealership.
"We love Chattanooga and Cleveland and this part of Tennessee," Myers said. He said Crown has 22 dealerships in Florida, Ohio and Tennessee.
Myers said that while the economy is dealing with higher interest rates and inflation, he sees a move in a better direction entering the second half of this year.
"We see a good economic environment in 2024," he said.
Contact Mike Pare at mpare@timesfreepress.com or 423-757-6318.