Local car sales drop again in 2006, following national trends

The local automotive market has driven through a turbulent year, with a shuffling of dealerships, a big drop in overall sales and major changes in buying preferences.

If national market trends are followed in 2007, it will be another down year for domestic car sales and another up year for Japanese manufacturers.
But in the longer term, analysts say there will be a huge jump in the number of Americans reaching driving age in the next few years, and Global Insight forecasts that a growth market will return in 2008.

Sales of new and used cars in Columbia fell nearly 10 percent in 2006, according to a review of Missouri Department of Revenue statistics.

New car sales took the bigger hit, with a decline of just under 13 percent.
Nationally, GM’s sales dropped 9 percent in 2006 to 4.1 million vehicles, Ford’s sales fell 8 percent to 2.9 million and Toyota’s jumped 12.9 percent to 2.5 million. Toyota is expected to overtake Ford in the No. 2 spot for all of 2006. DaimlerChrysler’s sales dropped 5 percent to 2.4 million, although Mercedes Benz gained 11 percent, and Honda had another record year in U.S. sales.

Analysts say U.S. automotive companies were hindered by high gasoline prices, which turned buyers away from pickup trucks, sport utility vehicles and minivans.

The Big Three’s long-term focus on trucks and SUVs, representing about two-thirds of their 2006 sales, “is coming back to haunt them,” Dennis Virag, president of the Automotive Consulting Group, told Bloomberg.

As for the dealerships, some of the biggest developments this year were:

•?The Perry Automotive Group began construction on a new location for its Nissan dealership at the corner of Providence Road and Interstate 70 and a new repair center next door. Perry Chevrolet will take over the current Nissan facility.

•?Gary Drewing, owner of Joe Machens Ford and Joe Machens Toyota-BMW-Scion, took over the Lincoln-Mercury dealership purchased from Mike Kehoe, who closed his lot on Providence and Business Loop 70.

•?Drewing moved the BMW operation to the former location of Columbia Mitsubishi dealership on I-70 Drive SW. The dealership will also offer a wide range of used luxury autos.

•?A Suzuki dealership opened on Vandiver down the road from Legend Automotive Group, replacing Auto Link, while BeLiva Auto closed and Columbia Car Classics moved to the Business Loop.