A Slow Economy and Automakers in Trouble =

A Trend in Dealerships Shutting Their Doors

It?s a nationwide trend, from the west coast to the east coast ? car dealerships are being forced to close at an alarming rate.  In the current economy consumers are cutting back, spending less, and in many cases putting off buying a new car.   Right here in South Carolina, dealers are fighting to stay in business.  While some dealerships around the state are in a good place, others are making some tough decisions.

The numbers only prove the state of economy. New car sales are down nearly 50 percent nationally, and the number of state-issued dealer licenses has dropped by 488, or 13 percent, according to the Department of Motor Vehicles.   Furthermore, the state dealer?s association reports a drop in membership as some dealerships have been consolidated or closed.

The decline in dealerships may be small, but it could accelerate in the near future.  Until people have confidence in economy, car buying rates will likely stay down.  The automakers situation only worsens the reality; Chrysler has filed for bankruptcy and the GM restructuring plan includes the closure of about 25 percent of its dealerships by 2010.  In South Carolina two Chevrolet stores in Greenville County were closed in February. A Suzuki dealership in Charleston also closed in February. Mazda stores in Rock Hill and Mount Pleasant have also added to the list of casualties in SC.  Other dealers have stayed open only by cutting staff, pay and benefits, and even inventory.  With the dealerships of South Carolina who do survive, they are looking for a glimpse of an economic turn around. They know that once consumers gain a new confidence in the current state of the country people will start buying cars again.