Dealers hoping for short strike Ongoing talks offer cause for optimism

A strike of two or three weeks will begin to hurt dealers, a consultant said.

By DON SHILLING

VINDICATOR BUSINESS EDITOR

Area General Motors dealers say their inventories are fine for now and are hoping for a short strike.

“A short-term strike shouldn’t hurt us,” said Greg Greenwood, who has 400 new cars at Greenwood Chevrolet and Hummer in Austintown and Hubbard Chevrolet.

Chris Sammartino, general manager of Sweeney Buick Pontiac GMC and Sweeney Chevrolet, said 800 new cars are on the lots at the Boardman dealerships. He’s optimistic that the strike will end soon because the United Auto Workers and GM were back at the bargaining table Tuesday, the second day of the strike.

“If it lasts longer than 45 to 60 days, that could cause us concern, but we’re hoping it will be a matter of days or weeks,” he said.

Barry Gonis, general manager of Spitzer Chevrolet in North Jackson, said he has a 60-day inventory on normal sales volumes, but business appears to be slow, so he can probably go longer.

Duration

CSM Worldwide, a Detroit consultant that makes auto industry forecasts, said Tuesday that it expects the strike to last less than one week.

Dealers won’t feel much of an impact unless the strike lasts two or three weeks, the firm said.

Gonis said he’s expecting a sales slowdown because nearly 90 percent of Spitzer’s sales are to GM employees or their families. Even with the strike, however, he said some GM workers may be out buying cars because GM has a one-week sales promotion going on.

Greenwood said GM will finance vehicle purchases for strikers based on their past income and expected future income. He also thought some strikers may decide to buy a vehicle because they have the time to shop.

Still, with 60 percent of his sales to GM workers and their families, Greenwood expects sales to slow during the strike.

The service end of dealerships also will be affected because parts plants are shut down, Gonis said. He said the Spitzer group has five dealerships that can share parts, but that arrangement will last only so long.

Model supply

Automotive News, a trade publication, said GM had a 67-day supply of vehicles on Sept. 1, but noted that some models were much lower. Those with tight inventories included the new Buick Enclave, 26 days, and Chevrolet Impala, 35 days.

Sammartino said the Enclave is in shorter supply than others because it was just launched earlier this year.

The Impala has been Chevrolet’s best-selling car. The Impala is assembled in Canada by members of the Canadian Autoworkers Union, but CSM Worldwide said those operations are expected to be shut down within days because of parts shortages.

Chevrolet dealers are looking forward to the redesigned 2008 Chevrolet Malibu, but the launch of that vehicle would be delayed by a long strike. Production was to begin in October, Greenwood said.

shilling@vindy.com