Dealership bullish on economy

The Don K car dealership broke ground last week on a 14,000 square foot expansion that community leaders are calling a beacon of an improving local economy.

“We’ve seen the economy change,” dealership owner Don Kaltschmidt told the state representatives, city council members and county commissioners gathered for the groundbreaking. “Whitefish is heating back up.”

Kaltschmidt says a handful of new employees will be added with the expansion. The dealership currently employs about 80 workers. He predicts the dealership could employ as many as 100 workers within five years if the economy stays on track.

“These are good-paying, long-term jobs,” he added.

Sen. Dee Brown, R-Coram, says the expansion is a strong signal that the valley’s economy is emerging from the depths of the recession.

“Don is bullish on the economy,” Brown told the Pilot. “He’s getting the snowball rolling and other businesses in the valley will benefit.”

She said Don K is like the light at the end of the tunnel that other businesses will follow.

Kaltschmidt said he’s seen a big turnaround in sales since the business hit bottom. He estimates they’ve gone from $17 million in sales in 2009, to about $66 million in 2012.

“I believe that will increase as we go forward,” he said.

The expansion will allow each of Don K’s franchise brands to have separate show rooms.

Subaru will be housed in a new building on the north end of the car lot along U.S. 93 South. Chevrolet will move into the current Subaru building, and Chrysler vehicles will be showcased in the building on the south end of the lot. Both of the current buildings will be remodeled.

Subaru has been a strong brand for the dealership since Don K acquired the franchise in 2011. Kaltschmidt estimates that 10 percent of motorists in the valley drive a Subaru, compared to just 2 percent nationally.

“Subaru has been very successful,” he said. “Whitefish is the epicenter for Subaru in the valley.”

Kaltschmidt calls the expanded dealership a “regional auto center” that distributes vehicles across the United States. A good portion of their “slightly used” sales are going to Canadians, he added.

Contracts for construction of the new showrooms were awarded to Montana companies. Swank Enterprises in the contractor, while Montana Creative completed architecture work.

Construction is scheduled to be completed by the end of December.

Architect Aaron Wallace says it was a bit of a challenge to design the Subaru showroom to fit within Whitefish’s architectural guidelines while still conforming to Subaru’s prototype.

In the end, he said the design benefits both parties.

“This dealership is in a special building in a special location,” he said.