As the auto industry goes, so goes the economy in Northwest Ohio and, in particular, the economy in our Eastern Maumee Bay Communities. So, it’s good news that new vehicle sales for the seven car dealers in the Press distribution area is up 50.8 percent for the first quarter of 2011.

Local dealers sold 902 vehicles in the first quarter compared to 508 in 2010, according to AutoView Online, a data-marketing firm that compiles registration and sales information from the Ohio Bureau of Motor Vehicles.

That performance outstripped sales in Lucas County as well as the nation. Sales in Lucas County were up 17.6 percent, according to figures released by Bernie Quilter, Lucas County Clerk of Courts. Sales nationwide were up 20.2 percent, according to the Wall Street Journal.

So, what’s driving the increase?

Two local car dealers say pent-up demand, more confidence in the economy and the fear of the skyrocketing cost of gas.

“I think the media and all the things that have happened scared everybody and they pulled the covers over their heads for a little while and waited for things to settle down a little bit,” said Greg Dunn, general sales manager at Dunn Chevy Buick.

Dunn added consumers have spent the last two years paying down credit card debt and reining in spending. “They are on more solid ground this year than a year ago,” he said. 

Terry Paul, owner of Genoa Ford and Genoa Chevrolet, echoed that. “I think everyone is feeling a little more secure about their job and they feel more confident about the economy.”

Both said fuel efficiency plays a larger role in the decision making process than in previous years. This is something American car manufacturers took more seriously in the last two years.

“In the past, (gas mileage) wasn’t something very high on the scale at GM,” Dunn said. “And, now they’ve put it on the top one, two or three attributes of their vehicles. Now, we can talk about it and not get beat up by our competitors.”

The Ford Fusion is the hottest selling car in the Press distribution area, an area which comprises parts of four counties and is bounded by East Toledo on the west, Oregon to the north, Oak Harbor to the east and Gibsonburg to the south. The Fusion was introduced in 2006 and replaced the Ford Taurus as Ford’s family-size sedan. It gets a combined 26 mpg.

Three of the next four hottest sellers are fuel-efficient models: the Chevy Malibu, Ford Focus and Chevy Equinox.

Dunn said consumers are also drawn to Chevy’s newest models the Equinox, a small SUV; and the Chevy Cruze, a compact that gets a combined 30mpg.

Quality ratings from industry watchdogs such as Consumer Reports and J.D. Power and Associates have also helped. American auto manufacturers in recent years have closed the gap in customer satisfaction surveys. The 2010 Ford Focus, for instance, jumped from 11th to first in the compact car category in J. D. Power’s latest Initial Quality Study.

So, does this 50 percent increase in new car sales for the first quarter foretell another step in the recovery?

Terry Paul says he’s “cautiously optimistic.” After all, unemployment is still too high—18 percent in Ottawa County and 10.4 percent in Lucas County and home sales were down again, this time six percent in March. But, Dennis Recker, administrator for the City of Northwood, says income tax revenue for first quarter is up 28 percent. One quarter of this, however, is due to the relocation of Lake High School due to last year’s tornado.

The coming Norplas expansion, which will create 300 auto-related jobs, is the big news in the city. However, Recker is noticing that smaller firms are starting to add jobs. He also tempers his good news on the increase in tax revenue by saying city revenues are still eight percent lower than 2007 figures.

“We’re seeing signs of recovery in other areas…It’s good to be encouraged and I am, but we also need to be prudent. We’re not really back to 100 percent health yet.”
 

The seven dealers are: Dunn Chevy Buick and Mathews Ford in Oregon; Genoa Chevrolet and Genoa Ford in Genoa; Tri-Motor Sales in Oak Harbor, Keller Chevrolet in Gibsonburg and Rouen Chrysler-Jeep-Dodge in Woodville.
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