Anchorage Nissan/Jeep/Eagle: catering to the consumers.

• Author: Berger, Michael
• Position: The new 49ers - Company Profile

Hands-on management at Anchorage Nissan turned losses into profits and helped set new sales records.

Anchorage Nissan/Jeep/Eagle, located on one of the city's highest traffic intersections, Tudor Road and Old Seward Highway, knows what running a successful business means. The determination to become Alaska's biggest and best multi-faceted car dealership fuels its formula for success through good economic times or bad.

In 1984, Jim Johnson, a 24-year First National Bank of Anchorage veteran, and Rick Hagen, from Stepp Brothers Lincoln Mercury, purchased the Nissan dealership from Ivan Felton and quickly expanded, adding a used car lot and a Jeep agency in 1987. The pair created Affordable Car Rental in 1989, and in 1991 opened the new Jeep/Eagle facility on Old Seward.

To become an authorized new car dealership, a prospective dealer must receive approval from the manufacturer. After obtaining the necessary capital and physical location, the manufacturer expects a new dealer to have a strong background in auto sales before it grants franchise approval. For Anchorage Nissan, Hagen supplied the dealership expertise while Johnson, now company president, provided years of financial know-how. Johnson says the National Bank of Alaska was extremely helpful in getting the firm off the ground financially and is still very supportive of the business.

Keeping Consumer Confidence

Vice president Darcy Johnson, daughter of the president, says Anchorage Nissan is fortunate: Selling a line of cars with a reputation for quality and reliability, plus a top-notch team of managers, supports high sales levels. Even when manufacturer commitment to quality slips, like in the early 1990s, Anchorage Nissan was still able to gain consumer confidence.

Johnson says, "The key to success lies in people overall. A good team of managers and leaders to help carry out the mission is an essential factor, especially now during a new period of growth. There is so much going on that it is easy to lose touch with the internal workings of the operation."

A "hands-on" style of management turned a loss of nearly $5 million in gross sales for 1991 to a substantial $9 million revenue gain in 1992. Nissan sales are up 44 percent, surpassing Honda, the industry standard for the last decade, and Jeep/Eagle sales are also surpassing previous sales figures.

"When a customer comes to us for a car, we want them to understand all of their options," says Jim Johnson. "We explain that we stand...