Longo Toyota-Scion-Lexus: Born in East LA

Some say that Longo Toyota dealership founder Dominic Longo took a big risk when he invested in a Los Angeles Toyota franchise in 1967. Others hint that he had been turned down by Detroit.

Maybe he knew exactly what he was doing.

Toyota began exporting cars to the United States in 1958, offering the durable Land Cruiser and the "Japanese 1956 Plymouth" Toyopet.

The Toyopet name was transitioned to Toyota Corona starting in 1964.

Corona sold just 2k units that year, but did 6,400 in 1965, and continued to double each year. In 1968, when Dominic opened his store at 11509 Garvey Ave. in El Monte, the pace had increased to 71,000 units and Corona and was selling for $1,760.

By 1971 Toyota was exporting over 300,000 vehicles per year to the US, and a decade of OPEC oil price shocks lay ahead.

The 1973 oil crisis produced gas lines in LA and consumers stood in line to buy imported fuel saving cars. In the second round of oil embargo price hikes, dealers began marking up Datsuns, Hondas, and Toyotas for big profits while gas-guzzlers sat unloved.

Dominic became famous in the LA basin for radio commercials on the morning drive "Lohman and Barkley Show" on KFI Los Angeles.

Radio personality Al Lohman imitated Mr. Longo in the commercial spots.

When Dominic Longo died in 1985, Longo was already the nation's largest Toyota dealership, moving approximately 12,000 new vehicles annually.

Then legendary auto racer Roger Penske took over the dealership.

Mr. Penske is a giant in this business, using a team-building, employee-empowering style that has generated a string of successes in the transportation industry.

In typical Penske fashion, Roger retained the name "Longo Toyota," along with most of the staff.

Roger's son Gregory Penske now leads Longo, selling Toyotas, Scions, and Lexuses, with his father's traditional attention to detail.

Longo Toyota-Scion-Lexus, the World's Largest Toyota Store

Longo is the Disneyland of car dealerships, a model of the future when consolidation will reduce the excessive number of US dealers by 50%.

First there is the enormous size: 40 acres with 32 acres of cars plus a 5 story parking garage.

The largest seller of Toyotas in the US leads the 2007 Ward's Dealer Business 500 with 25,207 new cars and only 3,659 used vehicles sold. A typical mega-dealer moves about 4,000 new vehicles annually. Longo Toyota continues to focus on new-vehicle sales, while many dealers have moved to the used car side where margins are higher.

Longo's $566,923,000.00 new car revenue dwarfs its nearest competitor.

The 5,000 square mile Los Angeles Metro area is one tough car market.

Toyota has grown from 19.3 percent market share in 2001 to around 28% in this trend setter market. Toyota may be close to saturation in southern California where 75 Toyota dealerships compete for customers.

Yet Longo makes about 10% of all the sales in the region.

Customer Amenities

The property was originally a strip mall, with a Sears anchor store. The site was almost entirely vacant when Roger decided to relocate the dealership. Design of the present Longo facility is all Penske.

Longo has Starbucks and Subway on-site, a couple of kids' play areas, AAA Travel and Insurance Services, Enterprise Rent-a-car, a laptop room with free wi-fi internet, and numerous big-screen TVs.

The parts and accessory store features a full-scale Indianapolis 500 open-wheel race car suspended along the back wall.

Mr Penske's Flagship

Penske Motor Group (formerly Penske Automotive Group) is the 11th largest automotive group in the country.

It is a subsidiary of Roger's diversified transportation services company, Penske Corporation.

Penske Motor Group is a California only dealer chain, whose franchises include Toyota, Scion, Lexus, Honda, Mercedes-Benz, Maybach, and Audi.

Gregory W. Penske, now in his forties, is CEO of Penske Motor Group.

Of course, Greg Penske has been around cars and dealerships all his life.

While a student at Cornell University, Greg worked at a Chevrolet dealer and a Cadillac-Oldsmobile store.

He is a graduate of the general manager school at the old General Motors Institute.

When Greg took over a Cadillac dealership in Bakersfield, California, he was just 22.

Greg joined the Longo dealership in 1987.

The the Automotive Hall of Fame granted Greg the Young Leadership & Excellence award in 1997.

Tom Rudnai, President, oversees the day to day operations at Longo Toyota.

Community

One contributor to Longos success is the ability to adapt to demographic change.

Longo is located in the San Gabriel Valley, "East LA." 12 miles east of downtown Los Angeles, the city of El Monte, with a population of approximately 120,000, is the valley's center.

During the Great Depression, a government resettlement program, the Federal Subsistence Homestead Project, populated El Monte with blue collar Caucasians.

As the years passed, the city became increasingly Latino. A recent surge of immigrants has filled El Monte with diversity: China, Vietnam, Taiwan, the Philippines, Central and South America are represented.

There was initially a backlash against the immigrants, and many whites and the business they supported moved.

Where others saw danger, Greg Penske saw opportunity. He began to build up Longo's bilingual staff, and advertised in foreign languages: Spanish, Mandarin, Cantonese, Korean, and Farsi.

Today El Monte's population is 72 percent Hispanic, and 18 percent Asian, with few African-Americans or Caucasians. Longo's staff speaks more than 20 languages and dialects.

Longo evolved to serve its Toyota-buying clients, reflecting the community.

Following the Penske's long-time practice of promoting the best from within, 2/3 of Longo Toyota's managers are minorities selected on the basis of performance.

The dealership, with its meeting rooms, also serves as a critical mass point for community car clubs and ethnic interest groups.

Longo is also a magnet for controversial tuner groups meeting in the parking lot for street racing.

Longo Toyota-Scion-Lexus is a large charitable contributor to its community. One example is a donation of $100,000 to the City of El Monte to prevent cutbacks in programs serving the city’s children.

The dealership is a sponsor of events too numerous to detail;