Tuesday, 05 January 2010 19:00
Final sales numbers from 2009 are in, and the news is surprisingly upbeat. For all the challenges dealers faced over the past year - bankruptcies, credit freezes, dealership closings - sales ended the year on a high note.
Overall vehicles sales, including domestic brands and unadjusted for business days, were up just over 15 percent from December 2008, although they were down 21.2 percent for the year. As a group, international brands fared better. They were down just 16.2 percent for the year and up a whopping 23.4 percent from December 2008.
It appears that the healing has begun.
Last year was a watershed for international vehicles sales in the United States. During each month of 2009, international brands led domestic brands in market share by an average of 11.2 percent, with the highest lead of 18.4 percent in August during the federal Cash for Clunkers program. That has never happened before. Click here to see AIADA's MarketWatch graphs and share them with your colleagues.
The combination of rising fuel costs and a recession had car buyers focusing on value. In 2009, they found it on the lots of international nameplate dealers. However, there is no resting on your laurels in this industry.
In the current political and economic environment, our success makes us targets. Our competitors, and some legislators, would like to see international brands knocked down a peg or two. If they can't beat us on a level playing field, they'll do what they can to create a slope.
It is more important than ever that international nameplate dealers be engaged in the political process. Trade, in particular, will come under attack in 2010. The vehicles that we sell and Americans want to buy, many of which are built right here in the U.S., will be the target of protectionists in Washington, D.C.
Legislators, many of whom are unfamiliar with our industry, need to hear our voices. They need to know that more than half of the international nameplate vehicles sold here are built here. They need to know that international nameplate manufacturing facilities represent a more than $39.3 billion investment in the U.S. economy. To bring it a little closer to home, AIADA's 10,000 franchised dealer members provide jobs for more than 500,000 Americans across the country, with the average dealership employing 50 individuals, investing millions of dollars in real estate and facilities, and paying local, state, and federal taxes.
We dealers need to be active in the political process in 2010, or we could see the gains we made in 2009 chipped away. I recommend starting the year on the right foot by attending AIADA's 40th Annual Meeting & Luncheon in Orlando this February 15th, during the NADA convention. Click here for more information. The Annual Meeting is an opportunity for dealers to meet with manufacturers and lobbyists and strategize for the coming year. As I see it, your time spent at AIADA's meeting is a small investment to make for a year of success.
Russ Darrow
AIADA Chairman
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