A familiar auto dealer, Dave Solon, has returned to the local market with the purchase of Kia of Chapel Hills.

Solon bought the dealership in the Chapel Hills Auto Mall on Jan. 1 from a Chicago investor, who acquired the business last year from Phil Long Dealerships.

Phil Long Dealerships sold the franchise because the auto group also owns a Kia store in Motor City, said Bob Fenton, chief operating officer and partner.

“We felt that two Kia stores in this market were too many for us to own,” Fenton said. “It didn’t fit into our long-term plans.”

Solon had been a managing partner with the Serra Automotive Group in Team dealerships in Colorado Springs for 15 years. He sold his share of the business, which included interest in Team Chevrolet, Team Honda and Team Volkswagen, in January 2005 to strike out on his own.

A three-year noncompete clause for the local market meant he had to look elsewhere to realize his dream. In the past three years, Solon has acquired Subaru and Nissan franchises in Pueblo, Kia stores in Grand Junction and Longmont, and a Mazda franchise in Denver.

The Kia of Chapel Hills store appealed to Solon because of its proximity to the interstate and the strength of the South Korean manufacturer’s products.

“I think Kia is well-positioned for what the marketplace will do. They’ve been in this country 10 years and are still having rapid growth, even though the general new car market last year was the worst in 10 years. So there’s unrealized opportunity with the mood of the marketplace — consumers are looking for affordability, drivability and fuel economy. Kia has all three,” Solon said.

Kia Motors America reported nine months of record high sales last year and its 14th consecutive year of record sales in 2007, selling 305,473 new vehicles, a 3.8 percent increase over 2006.

Solon employs 150 at his five locations, including 25 in Colorado Springs. Because he and his wife live in Colorado Springs, he will be a regular staff member at the local dealership, which consists of a 27,000-square foot building on 4.1 acres.

Solon plans to stabilize the Kia store, which opened 3½ years ago in its present location and has had personnel turnover and erratic sales. He said he expects to increase annual sales to 1,200 vehicles in the next year and 1,500 in five years. He’s also expanding on-site inventory to 200 vehicles.

Solon has a history with the Chapel Hills Auto Mall — he was the head of Team Chevrolet when it bought the land from Phil Long, now next to the Kia dealership, and built a store. Team is now known as Al Serra Chevrolet, Hummer, Volkswagen.

Phil Long’s Fenton said as a longtime fellow dealer, competitor and friend of Solon’s, he’s pleased to see another “quality dealer” become a local player.

“There are dealers that bring quality to the market and compete in a good way — Dave is one of those dealers,” Fenton said. “He treats his people and his customers well.”

Solon points to his relationships with employees and customers as one of his strengths. He said many people he worked with at Team now are on his payroll, including general managers at his dealerships in other cities.

“Even with predictions that the car market will shrink this year, there still will be about 56 million new and used vehicles sold. That’s a lot of cars,” he said. “The competition will be strong, and it’ll be important to gauge the market and inventory the type of cars people want based on the reality of higher gas prices. As Colorado Springs continues to grow, I think the opportunity we’re investing in is very good.”

Solon is the past president of the Colorado Springs Automobile Dealers Association and a current board member of the Better Business Bureau of Southern Colorado. Solon and his wife have six children, one of whom works at the local Kia dealership.

CONTACT THE WRITER: 636-0235 or debbie.kelley@gazette.com