After sales bottomed out, Windsor-Essex car sellers worry about lack of inventory - Action News
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Windsor

After sales bottomed out, Windsor-Essex car sellers worry about lack of inventory

Veteran car salespeoplesay this spring has beenthe worst period of their careers, by far. And a new problem may arise if auto manufacturers can't amp up production fast enough.

COVID-19 slowed the car business to a near halt. Now dealerships have a new issue

Windsor-Essex car dealers are offering great incentives to drive back business to their lots. But some fear there may not be enough supply after factories were shuttered from March to May due to COVID-19. (Daniel Acker/Bloomberg)

Veteran car salespeoplesay this spring has been theworst period of their careers, by far. And they worrythey won't see sales resume quickly if auto manufacturers can't amp up production.

Rick McKinney, senior sales consultant at Motor City Chrysler in Windsor, and Greg Gill,director of sales for the Rafih Auto Group, say now that people are able to come back to the dealershipsthey need vehicles to sell.

"My biggest fearand I think everybody will say the same thing is product.We haven't had a shipment in three months now," said Gill.

"I have lots of orders but I need them to get back to work and start building or we're going to have some problems."

Car manufacturers includingFCA Canada and Ford brought workers back to their factory assembly lines last week but itmay take some time before vehicles hit the dealerships.

The only problem we're going to have now is inventory because they've stopped making them,- Greg Gill, director of sales, Rafih Auto Group

Incentives offered to car buyers are excellent right nowsaidMcKinney, but he also worries about product.

"The Grand Caravan was supposed to come back in May, but could be another three months," he said.

'Worst' sales ever

Both of their dealerships have seen the slowest sales that either of them can remember, saidGill and McKinney.

For March, sales were down 45 per cent and sunk lower to 75 per cent in April, said McKinney.

"Are we going to gain that back immediately? Absolutely not. It's going to be a slow process," he said. "This is worse now [than the 2008 recession].Iwould double this numbers-wise. We just don't see those people. At least in 2008 there were people walking through the door but not now."

"When [COVID-19]first came out we got blasted but in the short term now we're up quite a bit," said Gill."The only problem we're going to have now is inventory because they've stopped making them."

All car dealerships across Ontario were limited to online sales only during the height of pandemic restrictions. As of May 5, dealerships were able to see customers again, by appointment only. As of May 19, under the provincial government's reopening framework, customers were allowed back in the showrooms. But numbers are limited, according to the square footage ofthe car showroom, to allow for 2-metre physical distancing.

"Once we did the sale online we'd place it in their driveway and we did all the paperwork online," said Gill."It was a challenge there's no doubt about it but we'll survive."

McKinney said that even though many people are back to work, he doesn't believe they'll see an "onslaught" of new customers.

Both salespeople say that the pandemic has completelychanged the way they sell cars

"You can't shake hands ...It's how you treat a customer as soon as they walk into the door," said McKinney. "We're all in the sameboat. Things are not going to be the same, they're just not going to be."

"It's just a whole different way to approach the customer with this distancing," said Gill.