WAUKESHA — The COVID19 pandemic has disrupted the entire economy, but one sector that saw an almost immediate impact is the auto industry.
“From the moment they shut everything down, the manufacturers closed their plants, so that interrupted our supply line,” said Kip Rupple, sales manager at Griffin Ford in Waukesha. “We spend an awful lot of time swapping (vehicles) between dealers (and) it’s been very difficult to do that.”
One type of vehicle in particular has been hard for dealers to keep inventory on: full-size pickup trucks.
“Inventory on certain models by the end of this month is going to be scarce,” said Automobile Dealers Association of Mega Milwaukee (ADAMM) President Jim Tolkan. He said there’s multiple reasons for that, the first being “extraordinary incentives” for consumers to buy in March, like 0% financing for up to 84 months. With trucks selling strongly just before factory shutdowns, the disruption for that type of vehicle was particularly noticeable.
“Ford indicated they wouldn’t be up to full (production) capacity until the end of June,” Tolkan said.
Rupple said trucks and SUVs are “the name of the game” for the Ford brand.
But despite a dip in sales over recent months, auto dealer prospects are improving as production resumes in June. Tolkan said he anticipate a significant step up in July.
The stay-at-home order and general wariness over the pandemic has accelerated certain consumer trends that were already underway, Tolkan said. “There’s been a gradual shift of more and more consumers wanting to do more and more of their transactions online,” he said. With some consumers feeling reluctant to come into a dealership, many dealers are offering options to have new cars delivered to their homes with no in-person contact whatsoever; pickup and delivery servicing for vehicles is available too.
“You have to do what the marketplace wants,” Rupple said. “We have done transactions where the consumer has not set foot in the dealership ... I think we will see an uptick in that kind of sale to delivery.”
Some consumers are still skittish, though. Waukesha local Mike Schmidt told The Freeman on Facebook that “with a second child on the way, my wife and I gave some thought to trading in one of my sedans for a larger vehicle, possibly an SUV. However, based on how little the whole family will venture out together in the foreseeable future, we’re planning to stick with what we have for now. We’ll probably reevaluate our situation again this time next year.”
Alex Bell told The Freeman: “I was able to put off getting new brakes for 6 (plus) months now that I can work from home. Every day I think more and more about our family just having one vehicle if I can continue to work from home.”
Consumers warming to the concept of one-vehicle households is something Tolkan thinks will continue, especially with remote work becoming more common. But he anticipates it will be offset by another trend: urban dwellers opting out of public transportation. He said his daughter, who previously did not own a vehicle, just purchased one to get around New York City.
Tim Casey, president of the Waukesha-based Center for Growth, said wariness over flying for trips may boost the auto industry in the near future as well. He said he and his wife will be driving to Houston for an upcoming visit rather than flying.
Tolkan said despite the disruptions, the six-county area comprising southeastern Wisconsin fared comparatively well over recent months. New car registration has been down 21% here, but 31% nationally.
“Things are returning to normal,” Tolkan said. “It should still be a decent year for new car sales.”
"auto" - Google News
June 13, 2020 at 05:27PM
https://ift.tt/30GGyzg
Auto sales disrupted amid pandemic | Business | gmtoday.com - Greater Milwaukee Today
"auto" - Google News
https://ift.tt/2Xb9Q5a
https://ift.tt/2SvsFPt
Bagikan Berita Ini
0 Response to "Auto sales disrupted amid pandemic | Business | gmtoday.com - Greater Milwaukee Today"
Post a Comment