The car business

[morley01]

Trying to get a pulse on what is going on with the auto business in various parts of the country. I am in SE Michigan and we are off about 30% from last year, which was a mediocre year. My rep says the rest of the country is pretty upbeat. Drop me a line please.

[pjdevereaux2003]

Morley

Evidently your rep means the rest of the country except western PA. Things are a struggle and domestic dealers are really, really hurting.

[scotstrong]

I notice that your rep did not specify WHICH country.

[btk]

Nor Cal Honda,

Sales is up slighlty, service business is down slightly-last 6 months of last year were the start of a drop off-we seem to be coming out of it this month as far as service business is going to see growth this month. Drop has been mostly warranty repairs off by 30%

[GONEFISHIN]

I have been in automobile business for 25 yrs. I have never seen it this bad. The last two years have been horrible. Tell your rep he will wet the bed for lying.

[homesleym]

we too are about 30% off. Central Ohio.

"NEW DELHI: Czech car maker Skoda Auto on Tuesday reported a 54 per cent increase car sales in April at 984 units" Perhaps he was referring to India

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[This message has been edited by homesleym (edited 05-18-2006).]

[FJFXDOPS]

Morley01,
Las Vegas is one of the fastest growing markets in the country, why then is our business stagnant up front and down in the back end? The manufacturer is putting huge pressure on us to cut warranty expense (labor down 40% from same period last year) and at the same time, they are passing expense that they used to carry over to the retailer. We are a Mercedes dealer and are finding the business climate to be more competitive than ever before with grosses being squeezed more each year.

[turbo59]

gentlemen,

something is going on in this business, we are off in central mo.

i am kia only, i agree, never seen it this bad, 20 yrs and counting. i think this will be our toughest summer yet...

rep told me to purchase more parts to offset my return, i told him i can't sell the parts i have! he has a company gas card and expense account, most cp customers don't have that option...

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"the dumbest kid in the smartest row"

turbo59

[chevyguy]

Been in the business myself, for 28 years. Bought the family store 11 years ago, I'm the 4th generation to run the store.

Really nervous about this period we're going through now !

Small Chevy (only) store out in the cow pastures of Southeatern Pennsylvania. I don't run any big promotions, depend alot on repeat buyers. The old GM dependables are dieing off. (the ones with money and only buy American)

I see my younger customer's as being nervous too. Job security, high debt, the bad things they read about GM these days doesn't help either.

A lot of plant closeings here in this area, jobs being outsourced. Too much of our money going overseas ! I believe one thing I read and sticks in my mind "America is over retailed"....... Cell phone bills, internet fees, Satellite radio fees, Cable TV, gas prices......let alone car payments and morgages. I believe young families are really streched right now.

Never saw so many buyers upside-down in their trades ! (They don't even care?)

Not very stylish to own a domestic product right now !

Floor plan going through the roof !Thank goodness I own 95% of my inventory. Ask me about health care...........woooooooo.

Margins on new sinking, LMG and Co-op making more on the deal than me?

I have a 15 year old son,.........Probably won't be a fifth generation ?

[This message has been edited by chevyguy (edited 05-19-2006).]

[David Cates]

Sometimes it just depends on who you ask. I am all over the southeast, and I get different responses in different towns, mostly small to heartland dealers, even within the same franchise.

My experience has shown me that, regardless of external economic and other outside factors, dealers can still do well with the right people and processes in place