- The Washington Times - Tuesday, January 21, 2014

The automobile industry’s best and brightest new models will be on display beginning Thursday at the Washington Auto Show, but you would be hard-pressed to find a dealer that sells these cars within the city limits.

As many as 70 new-car dealerships once dotted downtown D.C. Georgia Avenue was home to the illustrious “auto row,” and Anacostia was a dealership destination. Today, the National Automobile Dealers Association claims just one member within D.C. boundaries, and even its future seems uncertain.

The experience is common to urban areas. Analysts say the decline of the city salesman began decades ago as dealers followed drivers to the suburbs where rent was cheaper and space more abundant.

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“Traditional retailing used to be downtown, in shopping districts,” said Elgie Bright, assistant professor and chairman of automotive marketing and management at the Michigan campus of Northwood University. “Now it’s out in malls. Dealers followed traditional demographics, the patterns of retailing. It’s especially seen in old Rust Belt cities like Detroit, Cleveland, places like that. People moved out to the suburbs. They may work in cities, but they jump in their cars and go back out.”

The District is a perfect example of that, said Gerard Murphy, president and CEO of the Washington Area New Automobile Dealers Association.

ON THE ROAD: "We're so Beltway-oriented with how people get around," says Gerard Murphy, who is overseeing his last Washington Auto Show. (Andrew Harnik/The Washington Times)
ON THE ROAD: “We’re so Beltway-oriented with how people get around,” says ... more >

“We’re so Beltway-oriented with how people get around,” Mr. Murphy said. “We’re somewhere between Los Angeles and New York.”

Martens Cars of Washington, the last of the city’s new auto dealers, dates back to the beginning of the 20th century with a history that includes selling mule-drawn carts, Model Ts and midlevel luxury sedans.

Recently, however, the roughly 1-acre property in Upper Northwest has undergone a transformation. The family sold off the Volvo half of its Volvo-Volkswagen dealership to Euro Motorcars.

Gil Hofheimer, general manager of Euro Motorcars Volvo, said he remembers when the dealerships were plentiful in the city.

“When I was growing up in Washington, there must have been 20 to 30 dealerships in the Washington area,” he said. “They were all in D.C. This goes back to the ‘60s. There was Pohanka Oldsmobile right down the street, a Lincoln Mercury store on Connecticut Avenue. What happened was property in the suburbs became much less expensive. Developers came in and offered tremendous amounts of money to buy up property dealerships sat on.”

Now the Volvo dealership is moving to Bethesda to make way for redevelopment of the Wisconsin Avenue property.

Asked what was in store for Martens Volkswagen, Harry Martens said, “We’re not planning on leaving the District right now.”

“We are here, and my office is here, my sister’s office is here. Right now, we’re staying here,” he said. “Plans are always subject to change, somebody could walk in here tomorrow and do something we’re not anticipating, but right at this moment we’re not moving.”

The most recent numbers provided by the National Automobile Dealers Association show that last year 17,635 new car dealerships operated in the United States, up from 17,540 in 2012 but lower than any year from 1991 to 2011.

The District has the Volvo-Volkswagen dealership, while Maryland has 303 new car dealerships and Virginia has 494 new car dealerships, according to the National Automobile Dealership Association. California has the most dealerships with 1,364. Alaska has the fewest among the states with 35 dealerships.

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