D'ELLA Auto Group

QUEENSBURY -- The second time's the charm for D'ELLA Auto Group.

The company, headed by Michael Della Bella Sr., postponed plans to expand its Queensbury Honda facility two years ago, just as turmoil beset the auto industry and the national economy.

Now that the worst seems to be over, Della Bella says it's time to get back to investing in the business.

Construction is underway on a 9,000-square-foot, two-story addition behind the current building - larger than the 6,500 square feet of new space originally planned in 2008.

The expansion will provide more space for the service department, as well as administrative offices that will serve as the company's headquarters.

In addition, the service drop-off area to the right of the dealership will be pulled forward to make room for six vehicles instead of the four it's limited to now.

The facade is also changing, and the interior will be updated throughout with new flooring, furniture and a new layout with an information center and a children's play area.

The expansion may create four to six new jobs, ranging from customer service to mechanic positions.

Della Bella said the project cost is "substantial," but he refused to give a figure.

Construction is expected to wrap up by the holidays.

Della Bella said the auto group's diversity of franchises - it has two Honda locations, two GM locations, a Toyota and Suzuki location, and  a motorsports dealership - helped the company weather tough times for the industry.

Sales have not returned to their pre-recession levels, but they are improving, Della Bella said.

"We're better than where we were a year ago; we're better than where we were two years ago," he said.

That's not to say the auto group was unaffected by the downturn.

It watched General Motors enter and exit bankruptcy, dropping hundreds of franchises and a few of its brands along the way.

The end of Pontiac was particularly emotional, as it was the D'ELLA group's first dealership in the 1980s.

"It was traumatic, if I can use that word, that the brand we had for so long got phased out," he said.

The business rode the highs of the Cash for Clunkers wave and has dealt with Toyota recalls.

After an onslaught of terrible news for the industry, there have been some bright spots in recent months.

Across the U.S., 2010 sales of new cars and trucks through June were about 15 percent higher than at the same point last year, according to the National Auto Dealers Association. And recent reports indicate that it's getting easier for consumers with all types of credit to get car loans.

But auto industry information group Edmunds.com warned recently the pace of sales may not mean recovery just yet.

"July and August sales may suggest a rebound, but the underlying trends haven't changed," said Edmunds.com CEO Jeremy Anwyl. He added that the market today mostly consists of deal-seekers, and he expects the post-summer months of September, October and November to be soft for sales.

Della Bella said he doesn't have his head in the sand with regard to the national auto industry, but he focuses on what the local community wants and needs. Used car sales have increased, and fuel efficiency is a talking point for more customers these days.

He said the building upgrades at D'ELLA Honda are as much for the customer as they are for the morale of his staff and the need to keep growing the business for his family - his three sons and daughter are involved.

Other projects completed in recent years include an overhaul of a GM store and a relocation of the D'ELLA body shop to Bay Road.

"When you stop growing, someone is going to run past you at 100 mph," he said.