By: HUBBLE SMITH on November 23, 2006
Original Article: LAS VEGAS REVIEW-JOURNAL (NV)
Nov. 23–Southern Nevada automobile dealers could use a push. Maybe they’ll get it from the Motor Trend International Auto Show that runs Friday through Sunday at the Las Vegas Convention Center.
It gives consumers the opportunity to compare hundreds of new models from 30 manufacturers at one location without feeling the pressure to buy, show spokeswoman Lauren Holzman said.
Sales of new cars, trucks and vans depend on changing consumer tastes, popularity of the manufacturer’s vehicle models and the intensity of competition with other dealers.
At the auto show, prospective buyers can feel the performance and handling of new Ford models, such as the Ford Edge and Expedition EL, at the Ride and Drive sponsored by Southern Nevada Ford dealers. Ford is also bringing two concept vehicles — the F-250 Super Chief and Ford Mustang GT-R.
“This show is for people who are either in the market for a new car or they want to see the concepts and exotics. They’re really the crowd-pleasers,” Holzman said.
The exotic car collection, displayed by Lamborghini Las Vegas and valued at more than $1 million, features the $600,000 Saleen S-7, Lamborghini and Spyker.
Another popular component of Motor Trend International Auto Show is Aftermarket Alley, a mix of power, performance, parts and accessories vendors. On Saturday, a team of automotive specialists will spend six hours tricking out a 2007 Mustang GT convertible, transforming it from “stock to ‘Stang,” Holzman said.
“It’s cool because nobody is driving stock any more. There’s such a trend for cars really to say who you are,” she said.
Sales of new vehicles declined 2.4 percent in the 12-month period through June, the U.S. Census Bureau reported. Automobile manufacturing product shipment fell from $93.2 billion in 1997 to $85.8 billion in 2002, according to the latest bureau statistics.
Automobile sales are certainly affected by economic cycles, increasing when consumers feel financially secure and decreasing when the economy softens and buyers postpone purchases, said Keith Schwer, director of the Center for Business and Economic Research. Still, automobile production accounts for less than 4 percent of gross domestic product, he said.
Consumers are highly sensitive to prices, Schwer said. Automotive dealers are more likely to offer generous incentives, rebates and financing deals during slow periods to maintain high sales volumes and to reduce inventories.
“I heard a guy in Michigan talk about price concessions and excess capacity in the industry. You’ve got a problem between domestic and foreign (imports). And the labor market challenge … what percentage of that is to pick up health care costs? That’s part of the bigger issue,” Schwer said.
According to the National Automobile Dealers Association, new vehicle sales account for more than half of total sales revenue at franchised new vehicle dealers. These sales generate additional revenue in other departments of new car dealers. By putting new vehicles on the road, dealers can count on aftermarket additions, repair and service customers and future trade-ins of used vehicles.
Justin Findlay, general manager of Findlay Volkswagen, said he usually goes to the Motor Trend International Auto Show to check out the competition.
“We don’t see a ton of immediate sales from it, but we do see some,” Findlay said. “A lot of times, it gives people a chance to look at all of our models.”
Findlay will be moving to general manager of Findlay Automotive Group’s new Chevrolet dealership opening in December at Las Vegas Beltway and South Rainbow Boulevard, one of several new dealerships in Las Vegas. He said Las Vegas has always had fewer dealerships per capita than other major cities around the nation.
Automobile dealers provided about 1.3 million wage and salary jobs in 2004, according to the U.S. Bureau of Labor Statistics. Sales, installation, maintenance and repair workers accounted for 63 percent of wage and salary employment. Management, office and administrative support and transportation and material moving occupations made up another 35 percent.
Average weekly earnings of nonsupervisory workers in automobile dealers were $634 in 2004, substantially higher than the average for retail trade ($371), as well as that for all private industry ($529).
Earnings vary depending on occupation, experience and the dealer’s geographic location and size. Average wages range from $9 an hour for a cleaner of vehicles and equipment to $31 an hour for first-line supervisors and managers, according to the BLS.
Wage and salary jobs in automobile dealers are projected to increase 12 percent from 2004 to 2014, compared with projected growth of 14 percent for all industries combined.
Motor Trend International Auto Show hours are 9 a.m. to 7 p.m. Admission is $8 for adults, $5 for senior citizens, $4 for active and retired military and children ages 7-12.
