Car sales up, Janesville dealers say
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Salesman Tom Stemm, right, shows Dave and Jane Marshick of Janesville the back of the 2011 Honda Pilot at Rock County Honda.
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Salesman Tom Stemm shows Dave and Jane Marshick of Janesville a 2011 Honda CRV at the Rock County Honda dealership.
How is the local economy doing?
The answers are as varied as the individuals queried.
But there are certain indicators that provide a snapshot of Rock County’s economic health. Are we spending money? Are we buying and selling homes and cars? Are we working, and have we staved off creditors?
On a quarterly basis, the Gazette will look at those indicators and see what’s happening. Perhaps those indicators will show trends that indicate an improvement in the local economy. Perhaps they won’t.
In most cases, our “Economic Dashboard” of indicators will accompany a story highlighting the indicator that seems to carry the most significance for that quarter.
JANESVILLE — It shouldn’t come as a surprise that fewer new vehicles were registered in Rock County in last year’s fourth quarter than the quarter before.
It happens just about every year, when winter auto sales fall in comparison to those in the summer months.
But area car dealers are taking solace in knowing that fourth-quarter registrations were nearly 20 percent ahead of those for the same period in 2009. They’re also comforted by the fact that 2010 calendar year registrations were 5 percent ahead of 2009.
Those are trends they hope to carry into this year.
“We’re optimistic going forward,” said Dick Stockwell, president of Rock County Honda in Janesville. “I don’t think we’re coming out of things in a V-shaped recovery, but, so far in January, we’re already doing better than we did last January.”
Stockwell said his fourth-quarter Honda sales were up nearly 60 percent.
The folks across the street at Fagan Automotive have said the same thing: Sales improved in the latter part of 2010, and growing consumer confidence is pointing toward a better 2011.
Bob Clapper, Fagan’s vice president, said he’s seen an improvement in consumer attitudes.
Make no mistake, he said earlier this month, the area suffered from the closing of the local General Motors plant. But, he said, it’s starting to move on.
“They see that our community did not fail,” Clapper said. “There’s still a lot of room for improvement, but I think the worst is behind us.”
That appears to be showing—at least in a small way—in auto sales numbers.
Each year is different, said Stockwell, whose family has 70-plus years in the automobile business. In 2009, the government’s “Cash for Clunkers” program helped manufacturers and dealers.
“December 2010 was a very good month for us, and, I believe, for dealers around the state,” he said. “The manufacturers were marketing quite heavily, and people responded.”
American Honda Motor Co. ended the year with a 7.6 percent increase in sales in 2010.
General Motors led domestic automakers with a 21 percent gain in 2010. The automaker sold more cars with its four remaining brands than it did with eight brands the year before.
Ford’s sales jumped 19.5 percent in 2010, while Chrysler’s increased 16.5 percent.
Toyota, which struggled with a massive recall in early 2010, was the only major automaker to report a sales decline for the year—5.9 percent.
Stockwell said his dealership is seeing a different sort of buyer, and that is contributing to increasing sales.
“Automobiles are devices that slowly wear out,” he said. “Some of the bump is due to the relative age of vehicles. Things wear out and people have to replace, and we’ve seen those people.
“But what we didn’t see last year that we’re seeing now is people trading in just because they want to. They’re just more comfortable in their own financial situation.”
Jim Peck of Tom Peck Ford in Clinton said he thinks consumers are motivated by better financial circumstances, including an improving stock market.
Peck said his dealership’s 2010 sales volume mirrored that of 2009, but his profit was up 40 percent.
“I cut costs and basically expensed my way out of it,” Peck said, adding that he’s not convinced the nails are poised on the recession’s coffin.
“I don’t set yearly forecasts,” he said. “I take things day by day. I get up every day and do my best. What more can you do?”
Jan 25, 2011 at 12:52 a.m.
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Gotta love quantitative easing!
http://www.youtube.com/watch?v=PTUY16CkS...
Jan 24, 2011 at 11:26 a.m.
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The improving stock market is not based on increased earnings, but a gift of billions in free money from the Federal Reserve. The rich are getting richer, and the poor poorer. The middle class has been disappearing for decades because of a two party system of corporate plutocracy. Manufacturing is the foundation of economic growth, but manufacturing has been shipped overseas. Don't be misled by superficial headlines and stories designed to sell papers or ads. We are, unfortunately, just at the beginning of Great Depression II.
Jan 24, 2011 at 11:18 a.m.
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sirmixalot- you you waste money on rent because you cannot pay off a home in 5 years???
Sounds stupid to me.
I couldn't pay my first home off in 5 years but still chose to purchase/loan it. Sold in two years and made 20k. Sorry that WONT happen if you keep renting!
Made 30k on the second one was there for 6 years.
As for the car. That is your own opinion.
Jan 24, 2011 at 11:13 a.m.
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Dave is correct.
Lets say you sold one car in 2009.
Sold 2 in 2010. That is DOUBLE- WOW double on nothing is still NOTHING!
Jan 23, 2011 at 1:07 p.m.
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Never finance anything that will depreciate. Last time I looked autos are the worst for that. Buy used and pay cash. If you finance a home be prepared to pay it off in less then five years or better yet pay cash. IF you have to finance you recreation (Boat,snowmobile,ATV or ect) It is not time to play yet!!!! If you follow just a few of these rules you will thank me down the road. Please delay you gratification or prepare to live on the 95% side of the broke nation.
Jan 23, 2011 at 12:38 p.m.
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Go HONDA!!!!!!!!
Jan 23, 2011 at 12:16 p.m.
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Car sales up, the bankers are happy for awhile and there's more broke people.....Welcome to America!
Jan 23, 2011 at 9:55 a.m.
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the reason Obama gets blamed is because of the huge bailouts given to failing companies and then seeing those companies reward their executives, who by the way got them into a huge financial hole, with multi-million dollar bonuses from us, the taxpayers.
People can try to blame any administration they want, but in the end the person in charge that signs bills that hand out huge sums of money and increases our national debt to over 14 trillion dollars is the one I blame!
Oh and one more thing, funny how when small businesses start to fail they are told to fold up and go home, but when big companies fail, we give them more money as if more money will fix the problem. They already showed they can't handle what they had. Its like handing an alcoholic person a 12-pack, what do you think they are going to do with that?
Jan 23, 2011 at 8:24 a.m.
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How about we stop blaming ANY president, administration, or politician for the overall state of the economy and just deal with the reality of what is - now?
Going back and forth - it's Obama's fault - no, it's Bush's fault - NO, it's Obama's fault...is childish and non-productive, as is accusing anyone who has an opinion about anything of "whining" or "complaining" or being "negative" (the top three, all-time cliches used in the reader comments). How un-original and boring. Yuck.
Reality: Obama is our president. The economy stinks. Deal with it.
Jan 23, 2011 at 8:16 a.m.
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I cant believe how many people are blaming Obama for the economy. The last time I checked he was dealt a pretty crappy hand when he took over. Things were on the downhill slide in a very fast pace and thats something you cant change overnight! We are recovering from Bushs terrible ways and it only took two years to begin that because of Obamas aggressive tactics. Things could be alot worse and if you are finding yourself in a bad financial struggle, DO SOMETHING ABOUT IT YOURSELF AND QUIT WHINING AND FEELING SORRY FOR YOURSELF!!! THE HANDOUT SEASON SHOULD BE OVER NOW SO PEOPLE START FENDING FOR THEMSELVES AGAIN!!! Im glad dealerships are noticing the slow but nontheless recovering economy
Jan 23, 2011 at 7:51 a.m.
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tj would you prefer to sit on the bottom?? 6ft and RISING is the truth. you haters can see it however you want, but regardless of your negative outlook and your inability to see good in this administration....WE ARE recovering.
nice pics stemmy!!!
Jan 23, 2011 at 7:12 a.m.
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You have to accept that Obama is president. Forget the blame game, let's just deal with reality.
Good analogy about the ship, tj57. :)
Jan 23, 2011 at 6:27 a.m.
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"New Obama economy."
Is this the latest Fox News-ism I've missed?
Jan 23, 2011 at 1:15 a.m.
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Giggle away.
Jan 23, 2011 at 1:15 a.m.
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The point Dave is making is similar to your ship sinking to the bottom of the ocean. You don't cheer because it bounced up 6 feet once it hit the bottom.
Jan 22, 2011 at 11:06 p.m.
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Super Dave - So, Obama has been president for two years and the economy was "really bad" a year ago...I assume he was the reason why the economy was bad last year? And of course he has nothing to do with the fact many people believe things are turning for the better? You make me giggle.
Jan 22, 2011 at 10:45 p.m.
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It's like the news regarding the stock market, employment, you name it. Things were really bad a year ago, it doesn't take much to show a quarter-over-quarter improvement. That doesn't make us whole.
Don't get me wrong, it's still good news! It just has to be taken in the broader context of the new Obama economy.
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