Auto Sales Surge in Greater Cleveland, Dealers Struggle to Keep Up

Strategic Insights -

Pent-up demand and rebounding consumer confidence have driven auto sales in Greater Cleveland to surpass early 1993 figures by an average of 20% to 30%. Dealerships are struggling to meet the demand, resorting to calling other dealerships for vehicles that meet customer specifications and experiencing shortages of popular models. Despite these challenges, many dealers are optimistic about their sales, with some even reporting sales figures up roughly 30% from early 1993.

Key Takeaways:

  • Auto sales in Greater Cleveland have increased by an average of 20% to 30% compared to early 1993 figures, with many dealerships reporting sales above 1993 levels.
  • Dealers are struggling to meet the demand for certain models, with some experiencing shortages and having to wait weeks for new cars to be produced.
  • Automakers are producing more vehicles to meet the demand, with the total number of cars and light trucks manufactured domestically since Jan. 1 up 12% from 1993.
  • Leasing programs have been a key factor in driving sales, with many dealerships reporting a significant increase in leasing-related sales.
  • Local car dealers are concerned that the latest interest rate increase by the Federal Reserve will slow sales, but experts believe the momentum is sustainable through the end of the year.
  • Spitzer dealerships have experienced such high demand that they're selling cars "off the end of the delivery truck", said Alan Spitzer, spokesman for the Spitzer Management Group.
  • Jim Deacon, general manager of Deacon's Chrysler-Plymouth, has started swapping cars with other Chrysler dealers to meet customer demand.

Statistics:

  • Total number of cars and light trucks manufactured domestically since Jan. 1: 4.9 million, up 12% from 4.1 million during the comparable period in 1993 (Source: Automotive News).
  • Average sales gain at Cleveland-area dealerships: commensurate with the nationwide uptick (Source: Art Spinella, CNW Marketing/Research).
  • Sales increase at the Classic Automotive Group in Mentor: roughly 30% from early 1993 (Source: Jim Brown).
  • Sales increase at the Junction Auto Sales near Chardon: 20% over the first few months of 1993 (Source: Ed Babcock).
  • Leasing program participation at Leiken Oldsmobile-Mercedes Benz in Willoughby: approximately 50% of new car sales (Source: Don Sassano).
  • Projected sales growth through the end of the year: sustained by experts despite interest rate concerns (Source: Art Spinella, CNW Marketing/Research).

Sources:

  • Automotive News, a Detroit-based automotive trade publication.
  • Art Spinella, vice president and general manager of CNW Marketing/Research in Bandon, Ore.
  • Jim Brown, owner of the Classic Automotive Group in Mentor.
  • Ed Babcock, owner of Junction Auto Sales near Chardon.
  • Jim Deacon, general manager of Deacon's Chrysler-Plymouth in Mayfield Village.
  • Alan Spitzer, spokesman for the Spitzer Management Group in North Olmsted.
  • Don Sassano, general manager of Leiken Oldsmobile-Mercedes Benz in Willoughby.
  • Jeffrey Davis, owner of Davis Automotive Group.
  • Eric Eisenhart, general manager of Dave Walter BMW-Saab in Akron.