Record sales
August sales of 60,418 vehicles nationally marked the best-ever sales month in company history, breaking the previous record set in December 2015 of 56,274 vehicles, according to Subaru of America.
Kelly Subaru owner Tim Kelly says the auto dealership was the first business to settle in the rebranded Golden Gateway area of downtown Chattanooga in 1971.
On Thursday, he marked a nearly $2 million makeover of the car store, which is the newest investment in a part of downtown that's undergoing a vast transformation involving residential, commercial and public ventures.
"It's been a long wait for the neighborhood to come around," said Kelly at the dealership located at M.L. King Boulevard and Riverfront Parkway.
While the upgrades don't increase the store's footprint, the work included a variety of improvements with an emphasis on the environment, he said.
Kelly said a solar panel array was installed to conserve energy usage, in addition to the use of thicker glass windows, LED lights and other environmental enhancements.
"All of them save a ton of energy," he said. "It saves us a lot of money in utilities. It's a great fit with our customers."
Steve Marlin, the dealership's general manager, said that going green is "great for business," and he thinks the makeover has already helped the store to sell more cars.
"The other building was so dated," he said inside the dealership where the service and customer waiting areas were refurbished and a new body shop added.
Kelly said the dealership's sales are surging. It sold 95 new vehicles last month, nearly a 50 percent increase.
Subaru sales are higher nationally as well. Kelly said the brand has found "a sweet spot" in the American market. Reliability, all-wheel drive and appearance are helping to drive the increases, he said.
"They make a really great car," Kelly said.
Subaru of America reported earlier this month that sales hit 60,418 vehicles in August, a 14.7 percent increase over a year ago. The company also reported year-to-date sales of 391,969 vehicles, a 4.4 percent gain over the same period in 2015.
In addition to Kelly's investment, the area around the dealership is undergoing widespread changes bringing new residents and business to the area.
Cameron Harbor, a mix of apartments, condominiums and townhouses, is going up across Riverfront Parkway. Plans are to continue to put up more new housing on the Subaru side of the roadway in part of the former Newton Chevrolet lot.
Next door, Chattanooga Whiskey Co. has started work on its biggest-ever expansion where it wants to build and operate a distillery.
Last month, a new extension of the popular Riverwalk also opened along the Tennessee River, stretching the walking and bike trail to St. Elmo.
Kim White, who heads the nonprofit downtown redevelopment group River City Co., said Kelly fought to keep the dealership downtown when others were leaving.
"He was ahead of the curve," she said.
Hamilton County Mayor Jim Coppinger said the improvements at the dealership "fit with the economic growth in the area."
He especially cited the environmental enhancements in the building, noting that they put the Subaru store in a special category among dealerships in the Southeast.
While the area is attracting new investment, it also is losing one of its mainstays. GE Power, which acquired Alstom last year, announced earlier this year plans to close three former facilities and lay off most of the workforce, eliminating 235 jobs. About 50 Chattanooga employees in engineering, commercial and other functions will remain in the city, an official said.
Contact Mike Pare at mpare@timesfreepress.com or 423-757-6318.