Nevada automobile dealerships are exhibiting what one business owner calls a “Can do – anyway” spirit, despite a slumping economy, and many dealers report customers are coming out to buy automobiles as a way of showing their support for America. Steve Katzman, general sales manager at Reno Toyota said, “There have been reports that say consumers are sitting on their money. You can’t believe everything you read. The fact is, consumers are continuing to make major purchases such as automobiles. It’s the American way.” This seems to be a prevailing sentiment at many Nevada automobile dealerships.
Bobby McCrary, general sales manager at Fletcher Jones Lexus in Las Vegas, one of Nevada’s largest luxury auto dealerships, said he is “fortunate to be a luxury car dealer at this time. Sales have remained stable and in some cases have increased” despite the attacks of Sept. 11. McCrary attributes a decline in sales growth to a lack in the supply side rather than the demand side. “In our situation, certain product allocations were cutback because of a slowdown in manufacturing and production. Who knows what we might have sold if we hadn’t had a loss of inventory? Our clientele are mostly luxury-car owners, and they have continued to buy luxury cars. There was a loss of sales in one product line directly related to an inventory shortage. We had ordered 150 of the new SC-430s – a luxury sports convertible – but were allocated only half the order. We had buyers ready to drive them off the lot as soon as they came in. So, you could say we lost some sales, not because people aren’t buying, but because the stock wasn’t available. Now our stock is back to its previous levels, and more people are coming in – especially because
they know it helps the economy.”
Larry West, general sales manager at Saturn of Henderson, said, “In a word, patriotism is the driving force that has spurred sales here. Business is excellent. Of course, there was a slowdown the weeks after the Sept. 11 tragedy. People were in mourning. But since then, we have recaptured a 25 percent share of sales revenues. Americans refuse to be intimidated by terrorists and there is a strong belief in our economic system. We have customers from all segments of Nevada, and they show their patriotism by purchasing new cars.”
Frank Kasunic, secretary treasurer of McCandless International and Izusu Trucks, said his company experienced a drop in sales in the last quarter of 2001. However, he attributes the losses to construction projects being put on hold. “We are a business-to-business operation, and our sales are affected more because of projects being rescheduled than because of consumer wariness. We’re now calling 2001 a recovery year. In fact, if not for Sept. 11, it would have been a banner year.” Katzman also reported positive sales increases. “We are recovering. Our sales have increased by more than 10 percent over the same period in 2001.”
Innovative marketing techniques, such as zero percent financing, lowered interest rates and dealer invoice offerings, have led to overall lower prices and easier access to financing, contributing to a steady improvement in the industry. Sydney Young, new vehicle sales manager at Cadillac of Las Vegas–West, said GM’s Group Vice President of Vehicle Sales and Service, Bill Lovejoy, met with President Bush just days after the attacks in September to discuss what might be done to bolster the economy. The consensus at the meeting was that, “If the auto industry goes, the economy goes,” because the industry affects hundreds of thousands of citizens, in manufacturing, transportation, distribution, sales and service. After the meeting, Lovejoy sent a memo to all GM dealers throughout the country initiating a zero percent financing campaign. Young said the program, which started September 20, helped to save the industry.
Young continued, “People were coming into the dealership telling us they had not planned to buy a car, but that since the president had given ‘marching orders,’ they were going to buy anyway. It really was patriotism that turned around what could have been an economic disaster.” Young said in October, “We posted the best sales month in a decade, maybe even longer. People were buying because they understood the necessity of supporting the economy. They would talk about their determination to shake their fists in the enemy’s face, and then they’d drive off the lot in a new Cadillac.”
There are indicators that the economy is stabilizing and in Nevada, Americans are doing their part to help with recovery by supporting their local auto dealerships.