LIHU‘E — The purchase of Midpac Auto Center by Kuhio Auto Group is “a good defensive move” for Dan Mackey of Kuhio Motors, said one of his chief competitors.
Charlie King, owner and operator of King Auto Center, the Honda, Jeep, Chrysler and Dodge dealer in Lihu‘e, was assistant manager at Kuhio Motors under Mackey before buying the former Kaua‘i Auto Center from Wil Miyake.
“In my mind it’s a good defensive move” with the uncertainty of General Motors’ continued financial viability, King said.
“Dan does a good job of running a dealership. Dan’s a strong competitor,” said King.
Word spread earlier this year that James Hanley of Midpac Auto Center, the Ford and Mazda dealer on the island, was in talks with Mackey about a possible merger of the two dealerships.
Neither Mackey nor Hanley would officially confirm the potential merger or that talks were ongoing, though employees at both Lihu‘e dealerships less than a quarter a mile away from each along Rice Street were told of the talks.
Also earlier this year, the unofficial word was that the merger needed approval of Ford Motor Company.
There is a history in the islands of Ford and Chevrolet dealerships under one roof, both with the Cutter dealerships on O‘ahu and a Maui endeavor, King said.
What will probably happen is Mackey if he is the buyer of Midpac will come in and operate the Ford and Mazda dealership on a management agreement while the necessary approvals are being processed, as King did prior to taking formal ownership of Kaua‘i Auto Center, said King.
“I think it’s going to be business as usual” after the sale is finalized, he said. Mackey will likely operate at separate locations (it had already been announced to employees at both firms that no one would be fired as a result of the merger), and most Kauaians will remain loyal to their brand of choice no matter who owns the dealership, said King.
“Ownership does mean something” to some car-buyers, said King.
• Paul C. Curtis, staff writer, can be reached at 245-3681 (ext. 224) or pcurtis@kauaipubco.com.
