Long after 'Clunckers,' dealers see sales uptick :: Beacon News :: Local News

December 4, 2009 - By DAVID SHAROS AND ROWENA VERGARA Sun-Times Media

Reports about home sales recently showed that the market was up, giving analysts the first glimpse of positive economic news in months.
Is the auto industry following suit?

The Associated Press reported this week that Ford sales were steady throughout November. According to the AP, buyers snapped up fuel-efficient cars and crossovers, a sign that the market for new vehicles remains on a path to recovery. Some local dealers have noticed just that. They say there is indeed an upswing in car sales.

Fox Valley Ford experienced a slight dip in sales after the Cash for Clunkers program ended, but by October sales were back up again, according to Fox Valley Ford Vice President Tom Collins. On Black Friday, a day dedicated to bargain hunters, Fox Valley Ford's showroom was buzzing with such deal-seekers. "We had a lot of traffic and sold a lot of cars," Collins said.

Customers seem to be raving over the Fusion, Taurus and Escape vehicles the most, Collins said. Turnover for the Taurus is about one week. On Thursday, the dealership had one Taurus in stock when it typically receives about seven to eight of the model weekly, Collins said.

However, July and December tend to be high-selling months for dealerships anyway. Collins says shoppers right now are purchasing cars as Christmas presents for children and grandchildren.
In other cases, it may just be time for a replacement car.

The average vehicle on the road is about 11 years old, Dan Schwebke of Ron Westphal Chevrolet said. And because of that, some customers are in the market for a new car, he said. But used-car sales aren't slowing either. Collins says half of his dealership's sales are in used vehicles.

Other than Ford, a GM dealership is seeing an uptick, too. Gjovik Auto Group, which includes Chevy, Buick, Pontiac and GMC vehicles, has seen popularity rise for the Equinox, Camaro, redesigned LaCrosse and the GMC Terrain, Nick Oeser, sales manager said.

At Ron Westphal Chevrolet, the Chevy Equinox is the hottest seller. "We've had well into the 100-plus number (of Equinox cars) so far, but the turnaround time is literally a day or two. They hit the lot and they're gone," Schwebke said.
Dealerships are optimistic about the new year as well. Ron Westphal Chevrolet expects a 10 percent increase in sales volume in 2010, Schwebke said, adding that the business may add one or two more service technicians and two to three sales associates.

Fox Valley Ford also expects success in the new year. It's looking at a 4 to 5 percent increase in sales, a trickle-down effect from the Detroit-based automaker. Ford Motor Company has grown its market share of the auto industry in 13 of the last 14 months, Collins said.

Naperville Jeep/Dodge General Manager Sam Guzzino says "credit markets are beginning to open up a bit" which he believes will continue to bring more customers into the showroom. "Our sales are about equal to what they were a year ago, which is good in that you never want to slide backwards," he said. "We had to replenish our inventory of '09 models after the 'clunkers' rush, and once we did, we've actually sold out of our '09 stock already for the year."