There's slow.
Then there's October slow.
For the first nine months, Trace Swisher, general manager and part owner of White's Mountain Motors in Casper, said sales were running slightly behind last year's levels.
But in October, he said, "It's like somebody fell off a cliff."
While the parts, service and body shop portions of the business didn't change much, vehicle sales slumped. The run rate for October and November is down as much as 60 percent to 80 percent.
Swisher blames general uncertainty about the economy, which has undermined consumer confidence.
Even in Wyoming, where the economy has fared relatively well, pessimism seems to be seeping in.
Last summer, the price of oil spike at around $150 a barrel. Now it's closer to $50. And in Wyoming, nothing inspires confidence like high energy prices.
Swisher said the drop has encompassed new and used car sales, both domestic and foreign. White's Mountain Motors sells both Chevrolet and Subaru vehicles. "It's all slow," he said.
Hummer sales have been a little bright spot, although the volume is not large. Under normal conditions, Swisher said the dealership sells five or six Hummers a month. That took a hit when gas prices reached $4 a gallon, but Hummer has since rebound. White's Mountain Motors had seven new Hummer H3Ts, which look like Hummers bred to mid-sized pickups. Four have been sold.
Swisher said his business has been forced to adjust. Salesmen haven't been replaced and expenses have been cut.
"It doesn't do any good to advertise if you can't get anybody to come in the store," he said.
Tighter credit standards have been another factor, including requirements for higher credit scores and larger downpayments.
Marsha Allen, executive vice president of the Wyoming Automobile Dealers Association, has heard similar stories from other dealers. October seems to be the point where sales dropped substantially, and November isn't looking much better.
Allen said the state dealers association sent a letter to Washington, D.C., urging congressional action to stabilize the domestic auto industry.
Congress has been wrestling with whether to approve a $25 billion "bridge loan" to help General Motors, Chrysler and Ford.
Uncertainty about the future of the "Big Three" adds a further complication: It's difficult to convince someone to buy a car if it's unclear whether the manufacturer will survive.
Allen said the economic impact of local dealerships shouldn't be overlooked.
Last year, the National Automobile Dealers Association said Wyoming new-vehicle dealerships recorded sales of $1.5 billion. Such sales accounted for 16.5 percent of total retail sales in the state. Wyoming has 70 new car and truck dealers.
Sam Magnuson, owner of Sam's Quality Motors in Casper, said auto dealers like to say business is great almost reflexively, but there's no denying today's tough marketplace.
"I've been in the car business 20 years, and I can tell you every presidential election year is bad," he said. But this year, the sliding economy has compounded the problem.
Just about everyone is reluctant to spend at the moment, he said, either because they lost money in the stock market or find themselves heavily in debt after years of easy credit.
Magnuson is not sympathetic to pleas by the Detroit automakers for federal assistance.
"I think they ought to look to themselves," he said. "They're a business just like any other business. And if they're in trouble, they should look to see where they can save money."
Swisher said taxpayers should not be called upon to prop up a failing business, but the current financial environment doesn't allow the U.S.automakers to borrow through normal channels. Under such circumstances, federal assistance is justified.
Not all auto-related firms are hurting. Jerry Rager, owner of Doyle Johnson Auto Repair in Casper, said his business is up 10 percent to 15 percent over last year as people try to keep their cars on the road.
"We're doing a lot more major repairs," he said.
Rager said components like engines and transmissions are covered by warranties comparable to those on some new cars.
Rager said he has heard that 40 years ago vehicles ended up in junk yards after being driven 80,000 or 90,000 miles. Today, that's apparently closer to 180,000.
His shop is looking at eight or 10 vehicles a week with over 200,000 miles that the owners want to keep on the road.
For people thinking about a new or used vehicle, Swisher said now is great time to buy. Car dealers want to move inventories and are in a mood to make deals.
Business Editor Tom Mast can be reached at tom.mast@trib.com, or call 307-266-0574.
Posted in Business on Sunday, November 23, 2008 12:00 am | Tags: Automakers, Business, Tom Mast, Auto Repair, Dealerships, Wyoming, Casper, November 23, 2008
© Copyright 2009, trib.com, Casper, WY | Terms of Service and Privacy Policy