Thursday, 05 August 2010 12:10
Exactly one year ago today, AIADA was launching everything we had in Washington, urging Congress and the president to extend the government's unexpectedly successful Cash for Clunkers program.
The program's rules had been finalized on Jul 24, 2009, and it was designed to last through the end of October. But no one in Washington had anticipated the enthusiastic response by consumers. Unless the program was extended, the money would run out at some point during the first week in August.
The success of the Clunkers program was a rare flash of light in an otherwise dark year, sales-wise. Dealer and manufacturer associations were hopeful that the program would be expanded for at least a few more weeks. The boost in sales might have been government-manufactured, but it was getting feet in dealerships, and moving metal.
Click here to read the request for more funding issued one year ago by former AIADA Chairman Russ Darrow.
Fortunately, our efforts made a difference and we got our wish. Two billion dollars were added to the program, which lasted nearly 'til the end of August. I still remember those frantic days in my New Jersey Subaru and Hyundai dealerships. We couldn't keep cars in stock. My sons and I practically moved into our two stores in an effort to keep up with demand. Scrap yards couldn't keep up with the removal of the decommissioned clunkers fast enough - and we didn't care. For once, we had something to celebrate.
A year has made a big difference to dealers. Panic over falling sales, jobs numbers, and consumer confidence has given way to a sense of calm. Things are better. Not great, but improving. Not fast, but steadily.
Like everyone else in America, dealers got a reality check in 2009. In reality, the days of 16-17 million in sales per year were behind us. In reality, fuel costs were going up. In reality, the trend of conspicuous consumption was giving way to purposeful purchasing.
In my stores, I see it every day. In 2010, families are looking for value, dependability, and safety. They are looking for cars to keep, and pass down through the family. International nameplate dealers are uniquely prepared to meet that demand.
And, more than ever, sales of our cars are supporting the American economy.
It was announced this week that Honda is the third largest automaker in the United States. It built 555,734 vehicles in the U.S. this year - more than it builds in Japan - coming in behind only Ford and GM. Honda employs more than 27,000 Americans in its 10 U.S. factories. Toyota employs 28,700. Hyundai's plants employ another 5,000 who build the Santa Fe and Sonata. Another 5,000 build the BMW X5 and X6 in Spartanburg, South Carolina. Nissan employs 8,150 at their three plants. And that's just the tip of the manufacturing iceberg here in the U.S.
Five of the ten most American-made cars are international nameplate brands. Number one on the list? The Toyota Camry. See the full list here.
That means that international nameplate brands are driving recovery in the U.S. Not just an industry recovery, but a national economic recovery. And we're doing it right: by building and selling products that people want to buy. By employing Americans and supporting local communities. By constantly improving upon our success.
Do I miss the days of Cash for Clunkers? Not really. It was a program we badly needed at the time. But since then, we as an industry have moved forward. We are laying the groundwork for a real recovery today, founded in solid values. And that feels good.
Rick DeSilva
AIADA Chairman
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