GM Auto sales are ‘over the hump'
By Tim Trainor - 01/24/2009
 Walter Hinick / The Montana Standard Sales Manager Jeff Choate stands in the new car lot at Butte GM Auto Center. Dealership owner Wayne Sterns says he is optimistic about the company's prospects in the coming year. |
It was a rough finish to 2008 for GM Auto Center of Butte. Sales were down about 20 percent in the final quarter of last year.
But business has rebounded since Christmas, according to owner Wayne Sterns.
"People were in panic mode last quarter," Sterns said. "Things here have picked up a lot." He said he is "very optimistic" about his company's prospects in 2009, despite the dreary economic forecasts.
"I'm very happy we're here," he said, after looking at the sales reports from some of the major metro-politan areas where housing markets took such hard hits.
Sterns thinks the Butte market is "isolated" from much of the national woes.
He also said the restructuring of the national automobile industry bodes See GM, Page D3 well for local dealers.
"It's been needed for a lot of years," said Sterns. "I think there will be some changes as far as that goes." He said U.S. car companies sold about 17 million new vehicles in the U.S. in 2006 and 2007, but that number dipped to less than 11 million last year.
"Somewhere in between there is the real market," Sterns said. "If the market gets back up to 14 or 15 million (cars) a year, the industry as a whole will be fine." Sterns echoed other local dealers by noting the high gas prices did change customers buying habits.
"A lot of people wanted something smaller, more economical," he said. "But they were also not happy about needing to make that decision." With the price of gas plummeting again, SUVs, trucks and diesels that GM Auto Center "couldn't get rid of" last summer now "can't be kept in stock," Sterns said.
He also noted that customers were "a little more cautious" about their budget and "take a little more time to make the final decision." He also looked ahead to the banking industry as a large determinate in the future success of the car industry.
"The biggest factor going forward is the banking industry," Sterns said. "They've tightened up credit. Loans that six or eight months ago would have gone through aren't anymore." He said banks are requiring larger up-front investment including more money down and are looking at all aspects of the loan closer than before.
Sterns noted, however, that those with good credit and a stable income, rates are "very attractive" and other "incentives are very aggressive." "It's a pretty good time to buy a car, all told," he said.
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