Seaside’s Hyundai dealership suddenly closes, as the city faces slumping auto sales.

Some employees at Premier Hyundai of Seaside say they were only given a couple of days’ notice that they were losing their jobs since the dealership was closing its doors.

The dealership’s final day was Friday, Dec. 12, as employees drove the last vehicles out of the showroom that morning and workers removed signage from the building on Heitzinger Plaza.

The inventory headed to the nearest Hyundai dealership in Gilroy, where some workers also found a new job. Others were not sure of their next steps.

A longtime employee named Robert, who declined to give his last name, says it was a sad day for the staffers.

“It’s just unfortunate,” he says. “I love this dealership.”

Louisiana-based Premier Automotive purchased the Hyundai and Chevrolet/Cadillac dealerships in 2019 after they were shuttered by their previous Texas-based owner. The neighboring Chevrolet dealership moved to a new location in Seaside’s auto mall under new ownership earlier this year.

A representative from Premier Automotive did not respond to an inquiry on the reasoning behind the closure. Employees, though, said the dealership’s sales plummeted this year.

“We’ve seen the writing on the wall,” Robert says, noting a variety of factors may have played a role, from federal policies such as tariffs and eliminating the electric vehicle incentive to the fact that the dealership is located in an area that prefers luxury brands.

Seaside’s budget reports appear to back up this latter point. Of the top 25 sales tax generators in the city for 2023, the most recent data available, 12 are auto dealerships, and seven of those could be considered high-end brands such as Porsche and Jaguar. Premier Hyundai is not on the list.

Still, the closure of Premier Hyundai will “have a measurable impact on the City’s budget,” Seaside City Manager Greg McDanel says.

Auto sales make up 45 percent of Seaside’s sales tax revenue. Such revenue went down during the previous fiscal year, with city staff attributing it to declining auto sales.

“While we plan conservatively and do not rely on any single business, the loss of a major auto dealer is not insignificant and will require close monitoring of revenues in the coming fiscal year,” he says.

To offset declining sales taxes, Seaside’s 2025-26 budget report points to upcoming developments such as the Grand Hyatt hotel and Campus Town as a way to bring in new tax revenue.