Sponsored by Energy Trust

Car dealers collapse as sales drive off a cliff

| Print |  Email
Archives - December 2008
Monday, December 01, 2008

CarDealers Hundreds of car dealerships across Oregon are closing their doors because of slumping demand.

STATEWIDE At first glance, the car lot in outer Southeast Portland looks like all the others nearby, plentifully stocked with “Dealer’s Specials” and “Fresh Start Financing” deals. But while the merchandise is still on display, the business is history, or at least in hibernation.

Thirteen car lots within two miles of this shuttered business have canceled their licenses in 2008, according to Department of Motor Vehicle records. Across Oregon, 270 dealerships have gone under or on hiatus over the past year.

Sky-high gas prices followed by a severe slump in consumer confidence have sent new car sales to their lowest level since World War II. While it is harder to track used car sales in the “EZ Financing” side of town, the same fundamentals apply, and the blight is spreading. Just down the street, another lonely herd of oversized SUVs lies out of reach behind a padlocked chain-link gate.

Used-car lots aren’t the only ones taking a hit. Oregon’s largest auto dealer and third-largest public company, Medford-based Lithia Motors, is losing money and attempting to trim 29 stores from its 13-state empire. Its stock has sunk 75% over the past year.

Major new-car dealerships from Brookings Harbor Ford on the southern coast to Dick Hannah Ford near the Rose Garden in Portland have closed, and more are expected to follow as the recession deepens. One of the state’s oldest dealerships, Gibson Motor Company, which sold Model T Fords when it opened in 1921, closed in November in Junction City. Motor vehicle employment in Oregon is down 14.5%, or 4,000 jobs, from a year ago.

Greg Remensperger, executive vice president of the Oregon Auto Dealers Association, says sales are down 30%. “People who have been in the business for 30, 40 years are saying they’ve never seen anything like this,” he says.

The dealers association has been running ads arguing that it is a great time to buy because financing is available and prices have dropped. The Kelly Blue Book, the benchmark standard for auto pricing has devalued suggested prices an unprecedented six times over the past four months.

“The minute we see one or two rays of sunshine there will be a pent-up bunch of people ready to go out and buy a car,” Remensperger says. Until then dealerships will be “hunkering down to make it through.”                                                         

BEN JACKLET


Have an opinion? E-mail This e-mail address is being protected from spambots. You need JavaScript enabled to view it

 

 

 

More Articles

See How They Run

January-Powerbook 2015
Friday, December 12, 2014
BY LINDA BAKER

Studying ground-running birds, a group that ranks among nature's speediest and most agile bipedal runners, to build a faster robot.


Read more...

Election Season

November/December 2014
Wednesday, October 22, 2014

We didn’t intend this issue to have an election season theme. But politics has a way of seeping into the cracks and fissures.


Read more...

Three problems with Obama's immigration order

News
Wednesday, November 26, 2014

BY NISHANT BHAJARIA | OP-ED CONTRIBUTOR112614-immigration-thumb

By now, anyone who knows about it has a position on President Obama’s executive order on immigration. The executive order is the outcome of failed attempts at getting a bill through the normal legislative process. Both Obama and his predecessor came close, but not close enough since the process broke down multiple times.


Read more...

I Know How You Feel

November/December 2014
Wednesday, October 22, 2014
BY JESSICA RIDGWAY

Most smartphones come equipped with speech recognition systems like Siri or Cortana that are capable of understanding the human voice and putting words into actions. But what if smartphones could do more? What if smartphones could register feeling?


Read more...

Corner Office: Timothy Mitchell

January-Powerbook 2015
Saturday, December 13, 2014

A look-in on the life of Norris & Stevens' president.


Read more...

Reimagining education to solve Oregon's student debt and underemployment problems

News
Thursday, November 13, 2014
carsonstudentdept-thumbBY RYAN CARSON | OP-ED CONTRIBUTOR

How do we skill up our future technology workforce in a smart way to take advantage of these high-paying jobs? The answer shouldn’t focus only on helping people get a bachelor’s degree.


Read more...

Political Clout

November/December 2014
Wednesday, October 22, 2014
BY KIM MOORE

Businesses spend billions of dollars each year trying to influence political decision makers by piling money into campaigns.


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS