The GM Giant Ranks in the Top 5 Dealers in the Baltimore Washington Sales Area

I have to say that the past several months have been the most stressful in my life. The beginning of the recession that the government just recently figured out was happening, started for our industry in September of 2007. Being in a market where truck sales lead all other segments, a slowing housing market took its toll early. Then gasoline prices rose and the truck and SUV sales slowed even more. This is when the talking heads on television started saying that GM didn’t build cars and trucks people really wanted. The truth is people wanted GM cars and trucks, but the cost of fuel and the lack of credit availability brought US auto sales just about to a halt. And if this wasn’t enough, used car sales slowed as did the number of people coming to dealership service departments, as consumers put off maintenance on cars and trucks. Just when we thought things couldn’t get worse, the executives of the big three domestic automakers flew to Washington in their Corporate jets and begged for money, admitting that without it they would fall into bankruptcy. While many in Congress said this would be good for the automakers, the auto executives told Congress that customers wouldn’t buy cars and trucks from a bankrupt manufacturer.

Well, from my experience this is certainly true. As soon as the dreaded B word was uttered, our show rooms and lots began to resemble a football stadium one hour after the game is over. There are cars in the parking lot, the employees are working but the customers are long gone. With the notion that GM, Ford and Chrysler could go out of business, customers made it clear they were afraid to buy our products.

In early December, Congress indicated that it would be passing legislation that would give US automakers the money they needed, only to have the bill killed in a partisan effort to punish the UAW for its support of the Democratic Party. Now you may not agree with this statement, but many independent analysts have come to this very conclusion. At any rate, the death sentence handed down by Congress may as well have been the beginning of an epitaph for the U.S. Auto Industry.

Within one day of the defeat of the Senate bill to help the ailing U.S. auto industry, President Bush announced that “to allow this industry to fail would be an irresponsible act”, and that he and the treasury department stood ready to help. Here is where the local story takes over, and I am pleased and humbled to tell it.

After Congress made their vote, I stayed up late writing to every Senator who had voted against the bridge loan bill. I stayed home the next day and tried to contemplate what could happen. Then I got a call from my sales manager, Phil Roath. He said, “Lee, you’re not going to believe this but we’ve sold 6 cars today and it’s only two o’clock.” That night I went to a large birthday party for a friend. One after another people came to me expressing support for our industry, for our company and for me. The next day brought more sales and a renewed spirit of hope for a good month of sales. At the end of the week the sales report from GM showed our dealership amazingly ranked number 2 out of 134 dealers in the Baltimore Washington Sales Area and solidly in first place on the shore.

I am overwhelmed by the support of our customers in this most uncertain time in our industry and in our economy. While it is true that the discounts offered on new GM cars and trucks are at an all time high, and late model used car and truck prices are at an all time low when adjusted for inflation, it still takes consumer confidence to pull the trigger and spend money. I am grateful to all who continue to have faith in our company and our products. I am happy to report that we remain in the top 5 dealers in the metro sales area. Have a happy holiday and a blessed new year. Drive safely.