Monday, 15 March 2010 07:45
The winter of 2009-2010 was memorable for car dealers for all the wrong reasons. In my part of the country, northern New Jersey, we won't soon forget the multiple blizzards we faced, or the hours of shoveling that followed.
Outside of the mid-Atlantic, dealers saw similar unusually frigid temperatures and back-breaking labor. Between the snow, the salt, and the wind, keeping our inventory clean was a near-constant challenge.
As if that wasn't enough, the economy continued to disappoint, and car sales remained down. And then, just as the winter finally began to grind to a close, Toyota dealers were slammed by breathless media reports of runaway cars and three ugly congressional hearings.
The Toyota allegations left dealers reeling. While many questions related to the claims against Toyota remain unanswered, I am confident that the company will soon recover from this situation and regain the near-perfect brand reputation it once enjoyed. Even so, international brand dealers and manufacturers everywhere are concerned. Were we in Toyota's position, could we count on the media and government to treat us fairly? Or is there more fueling this circus than a simple design flaw and recall?
It's hard to say. And that's all the more reason to stay active in associations like AIADA that protect international brands from undue persecution.
So, as chairman of an association impacted by all of these events, why am I smiling? Well, like the Beatles said, "Here comes the sun."
Across the country, temperatures are beginning to rise. In some places (not necessarily New Jersey) trees and flowers are beginning to bloom. For the first time in months, Americans are tentatively leaving their couches and homes for non-snow clearing purposes.
At my two dealerships, business has been a steady flow 7 days a week. My friends in the business, even those selling Toyotas, are seeing the same thing. Even better, the shoppers are doing more than just looking. Sales are up. And if that won't put a smile on a dealers face, what will?
Slow but steady improvement seems to be what we can expect this spring. In February, overall sales, including domestic brands and unadjusted for business days, were up 13.3 percent from February 2009 and 12 percent from last month. The seasonally adjusted annual rate (SAAR) for light vehicles now stands at 10.38 million units, an improvement from 9.17 million units in February 2009. Predictions for March are even better.
No, those numbers don't approach the heydays of the 90s, but they are a sign of recovery. And after the winter we just saw, I'll take it.
Rick DeSilva
AIADA Chairman
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