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Performance and powertrain help Guaranty Chevrolet expand beyond its collision base
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Santa Ana, Calif. -- After more than 50 years, Guaranty Chevrolet was a long-established supplier of local collision repair shops when it sought to expand its presence in the mechanical repair segment about eight years ago, said Parts Manager Carl Lutes.


Aggressive marketing and professional service have allowed the dealership to quickly grow to be the fourth-largest GM powertrain dealer in the country, the third-largest performance parts dealer in the country, and the second-largest collision parts supplier in the West, Lutes said.


Lutes, parts manager at the dealership for the past seven years, said he started out washing cars at the dealership 25 years ago and gradually worked his way up.  The parts department now has 15 drivers, seven wholesale countermen, five inventory control personnel, four shipping and receiving clerks, two people who handle returns, and one person on receivables, he said.


The parts department has grown to include 10,000 square feet in the dealership's main building as well as 30,000 square feet in a warehouse just behind the dealership, holding around $3.5 million in inventory (at cost), Lutes said, adding that it has about 270 engines and transmissions in stock at any one time.


Parts Manager Carl Lutes says Guaranty Chevrolet typically has about 270 engines and transmissions in stock.The extra space allows careful storage of collision parts and allows the department to buy in truckloads, Lutes said, which help keep damage to a minimum.  "If we see damage to packaging, we immediately open it up and check the part," he said.  "It is a waste of time and resources to deliver a damaged part that we will just have to go back for later."


Collision repair remains the core of the dealership's wholesale parts efforts, Lutes said, noting that it accounts for about 85 percent of wholesale business.  So he said they stock many parts that other dealers won't, ranging all the way up to frames for GM's most popular SUVs and pickups.


Most of the growth in recent years has come from the department's push into engines, transmissions, and GM performance parts, Lutes said.


Lutes said he believes that the success of the powertrain and performance parts is due to the hard work he and his staff have put into marketing the lines and the knowledge they have gained from working with them day in and day out.  "Last year we attended 22 different events, including cars shows, cruises, NHRA events, the sand-sport show, and the Pomona swap meet," he said.

The wholesale parts staff at Guaranty Chevrolet includes, from l., Countermen John Carter, Rick Gallo, Randy Boswell, Andy Pena, Parts Manager Carl Lutes, and Countermen Leonel Solas, Jack Nish, Greg Mayfield, and Jim Debelak.
Guaranty  displays various performance parts and performance crate motors available through GM, Lutes said.  As an attention getter, several years ago he said he built a display with a 572 that could be started and revved through open headers.  "It really draws a crowd when we start it," he said. 


While the dealership has been using a trailer owned by GM, it is expecting to take delivery of its own trailer any day to allow it more flexibility to attend more events, Lutes said.  The trailer will also be available for wholesale customers who would like to have it set up at special events, such as car shows or open-house events, he said.


"I think the exposure is vital for that segment," he said.  "It's taken us a long way." 

 
Having a reputation for being a top supplier of GM performance parts led the dealership to be contacted four years ago by one of its regular customers, which was working with a new TV show, "Overhaulin'", which featured Chip Foose, Lutes said.  The dealership supplied parts, which were donated by GM, for 22 episodes over four seasons.  "That brought in a lot of customers and still does," he said.  "I think we got the call because we were into performance parts and knew what we were doing."

Representing about 85 percent of the wholesale volume at Guaranty Chevrolet, the collision repair inventory includes many parts that other dealers do not stock, including new frames.
The dealership's large fleet of delivery trucks and expansive inventory mean that it is able to offer fast service across the counties of Los Angeles, Orange, San Bernardino, and Riverside, Lutes said.  While most of the areas receive deliveries two to three times a day, he said, some close-in areas receive as many as five deliveries a day.


"We really take care of our wholesale customers," he said.  "We take pride in the good service that we offer.  I think the best shops are more interested in service than price because it improves cycle time and gets the car out a lot faster.  In addition, though, we offer competitive prices, hassle-free returns, and courteous, knowledgeable people."


The hassle-free return policy means that parts are credited back within 24 hours, Lutes said.


"I truly think that we have the best wholesale people in the business," he said.  They're all self-motivated and have their own clients.  It's almost as though they are running their own business within the dealership, so they provide very personal service."




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