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Local Auto sales strong in May
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Vehicle sales throughout the Mahoning Valley increased significantly in May, continuing this year’s streak of gains and demonstrating strength in the overall economy.
Data from the Automobile Dealers Association of Eastern Ohio show double-digit gains at some dealerships in the region, as auto sales continue to be a bright spot after a restrained May jobs report when the U.S. Department of Labor said employers nationwide cautiously added 175,000 jobs.
In the Valley, the unemployment rate has remained relatively stable, falling by 0.7 percent in April, the latest month for which figures are available, to a seasonally unadjusted rate of 7.6 percent. Valley unemployment has hovered around 8 percent since the beginning of this year.
Still, nationwide, analysts expect vehicle sales to increase from about 14 million units last year to 15.5 million this year, as more consumers open their purse strings to meet pent-up demand, and a surge in new-home construction continues to lift certain segments of the market like pickup truck sales.
“Last month was a really, really solid month and we think it will continue,” said Greg Greenwood, owner of Greenwood Chevrolet, which topped last month’s list of the top-40 new and used dealerships in the Valley.
“What’s really driving the incremental increase in sales is the overall economy — it’s better. I think consumers are more optimistic and willing to make major purchases even if their cars aren’t broken.”
For all of northern Ohio, new-vehicle sales increased by double digits last month, according to the Greater Cleveland Automobile Dealers’ Association, with 20,478 vehicles sold in May, compared to the 18,286 that were sold a year earlier.
“The continued growth of new-vehicle sales is good news for franchised new- car dealers and the entire economy of Northern Ohio, which is so dependent on the auto industry for its vitality,” said Louis A. Vitantonio, Jr., president of the GCADA. “We expect strong sales to continue through the end of the year.”
In the Valley, the Chevrolet Cruze was No. 1 on the ADAEO’s top-40 new- models list. Cruze sales increased by 44 percent here last month, when 143 units were sold.
Nationwide, the Cruze had its best May sales month since it was introduced in 2010.
Overall, Chevrolet reported its best sales month since September 2008 across all its brands.
The Chevrolet Malibu was a close second in the Valley with 137 units sold in May, but still a drop from the 172 that sold in May 2011.
Sales of the Chevrolet Silverado 1500 pickup truck continued to shine in the Valley. In May, the model more than doubled its year-over-year sales here jumping from 52 Silverado’s sold last year to 110 sold last month. The Chevrolet Equinox and the Ford F-150 finished at four and five, respectively — both posted sales increases last month.
As usual, Chevrolet continued as the Valley’s top-selling brand after 657 models were sold in May. Ford was the area’s second leader in sales with 339 models sold and Toyota had a stellar month in the region, increasing overall sales of its models by 37 percent.
Mekael Teshome, an economist at PNC Bank, said consumers continue to be resilient this year, even as they’ve faced uncertain headwinds such as the fiscal cliff, the general election and health-care reform.
He added that rising home prices, improvements in the stock market and overdue purchases, especially new vehicles, are helping to grow wealth slowly and drive big ticket purchases.
Though it finished below Greenwood Chevrolet among the top new and used dealerships, the Stadium GM Superstore saw a 59 percent increase in its year-over-year sales last month, while the top three new dealerships all sold more than 200 vehicles each.