Automobile
dealerships throughout the Delta report surprisingly good
business despite an economy that began to decline during
the last half of the Clinton administration, took additional
blows in the aftermath of 9/11 and several huge business
scandals, and saw Delta farmers suffer through four years
of drought topped off by two hurricanes right at harvest
time.
With all these factors affecting both the national and
local economies, Delta dealers say that they are maintaining
good business. They all admit that they are working harder
for that business, but they all seem almost surprised
that they haven’t suffered more, all things considered.
Sonny Nabors, owner of Nabors GM and Toyota in Clarksdale,
says that while sales slowed down somewhat over the past
couple of years, he’s seeing a lot more traffic
now. “Sales were really good last month,”
he says. “We sold 42 new and 48 used vehicles. Of
course we had to do a lot of direct mail to do it, but
we had excellent response. The people who come in are
upbeat, but there just aren’t enough people back
on the playing field yet.
“We’re looking forward to fall, because the
second half of the year is usually better than the first,
and the economy is looking better.”
Nabors, like almost every dealer, reports that trucks,
SUVs, and the new sport utility wagon are his most popular
sellers. “They’re roomier, bigger, and higher
off the ground,” he explains. “Passenger sedans
are a small part of what we sell compared to eight or
ten years ago and it changes more each year.”
Nabors credits his service department for keeping his
customers satisfied from the point of sale until the next
purchase. Noting that his company has been in Clarksdale
since 1972, he says that a long history of good service
really helps during economic downturns.
Scott Kirk, owner and general manager of Kirk Auto Company
in Grenada, agrees that things could be a lot worse. “People
are buying, but they’re more cautious and price-conscious
than ever. Our sales have been on a steady scale for awhile,
but we’re working harder to do it.
“We had a brief period of decline at some stores,
mostly in late 1999 and 2000, but after 9/11 the manufacturers
made sure we didn’t suffer from the shock. When
they came out with the 0% loans and cash rebates, that
really kept us steady.
“It’s hard to tell if people believe the economy
is better. If I’m seeing them, their attitude is
good. There’s less floor traffic than some years,
but the people who come in are serious buyers.”
Kirk has three stores in Grenada and one in Greenwood
, at which he carries GM and Toyota lines. He also reports
the popularity of larger vehicles over family sedans.
Jerry Ivy, general manager of Kossman, Inc. in Cleveland,
is optimistic. “Our business has held up exceptionally
well throughout the downturn. We had one of our best years
in 2002. Right now, our business has been good through
the first half of the year. It got a little slower in
July, but picked up again this week.
“We well a lot outside Bolivar County. We’re
fairly regional in sales. A lot of that is because we’ve
been in business here so long and because we have one
of the best service departments in the state. GM calls
us to service cars bought from other dealers if there’s
a problem.
“In this day and age, you have to have well-trained
and bright people. There are no more ‘shade tree
mechanics.’ With all these electronics, people have
to be really intelligent. It’s like Star Wars. And
the quality has improved amazingly. Our quality doesn’t
take a back seat to anyone,” Ivy asserts.
Explaining that Kossman is a full-line GM dealership,
Ivy points out that in addition to good service, the Kossman
family has been in the business for four generations,
which creates a good reputation. “I do think,”
he adds, “that people are feeling better about the
economy. I see a more positive attitude overall. I think
the future for the car business in the Delta is good.
We may not be at peak level for awhile, but we’re
excited about the signs we’re seeing.”
James Ceranti, owner of James Ceranti Motors in Greenville,
agrees that people are more optimistic now. “They
seem to have this attitude about the economy being slow.
It’s like they’re saying, “I’m
tired of it. I’m not going to be part of it.’
This year has started off well for us. It’s actually
been very steady throughout - not real good and not real
bad.
“Did I notice it? Yeah! I’d be lying if I
said I didn’t. Is there one certain thing you can
blame it on? No! Economic cycles are a part of life. 9/11
made us aware that other things than prices and cycles
can affect the car business. For the first thirty days,
things just stopped! But then they picked back up.”
Ceranti carries Chrysler, Dodge and Jeep products as well
as the Crossfire (a Mercedes product) and agrees that
SUVs and trucks have been strong for several years. He
says he also sells a lot of intermediate sized cars for
second and third vehicles. He says the Greenville economy
is similar to the car business. “It’s a little
depressed still, but it has many bright spots and people
are feeling better.”
Perry England, President and general manager of England
Motor Company in Greenville, could perform a stand-up
comic routine with his take on the new millennium. “I’m
going to tell you, the turn of the century hasn’t
been what it was hyped up to be,” he laughingly
begins and launches into a very funny take on all the
disastrous things that have happened instead of all the
wonderful things that were hoped for.
More seriously, he describes surviving by a reversal of
business. “The body shop, parts and service have
been REAL good. In fact, they have carried us for the
last four years. Sales have been off 25% since the Millennium,
both in new and used cars. That’s a total reversal
from our normal business.
“We can be thankful for having such a great service
group. People are being very cautious and are maintaining
their vehicles longer. They’re also cautious when
they’re buying and we have to be very competitive.
We can also be thankful for a lot of loyal customers.
We’ve been here since 1926. I’m third generation
and I hope my son will come back and make it four.
“The pick-up truck is still our best seller. This
is farming country. SUVs are strong too, and people like
the Hondas (England sells Ford and Honda lines). The good
news is that the farmers tell me they have a good crop.
If we can avoid any hurricanes until after the harvest,
I believe things will pick up for us in the fall when
they get the crop in. Wheels will start turning again.”
Tom Wadler, owner of Tom Wadler Toyota Lincoln Mercury,
with separate Kia and Nissan stores, all in Greenville,
agrees that service departments are very important in
a slow economy. “Unlike in metropolitan areas, people
here buy cars out of necessity, not fashion. They are
sensible. Our service department is getting a lot of activity
because we have a good customer base.
“Sales have been good, very steady, not a lot of
peaks and valleys. New products create activity. Nissan
is producing five or six new products, and Toyota does
that constantly. Kia has some new products too. The domestic
companies have focused more on deals and rebates, but
people count on new products.
“I believe that reasonably-priced used cars, good
service and new products are the key to keeping things
going.”
Buddy Jones, owner of Buddy Jones Ford Chrysler in Greenwood,
carries Lincoln, Mercury, Dodge and Jeep products and
agrees that SUVs and trucks are the vehicles of the moment.
“Ladies used to buy sedans, but not anymore. Everyone
wants these large vehicles. We’re spoiled. Things
like gas mileage don’t matter. We follow fads. An
SUV is basically the old station wagon on a truck chassis.
“We still feel some of the slowdown, but last month
was one of the best we’ve had in a long time. Our
customers seem pretty optimistic. If they’re in
here, they’re buying. The economy looks pretty good.
We’ve added a lot of jobs. When the general economy
picks up, we will too. We won’t lag behind.
“Agriculture definitely affects us. The hurricanes
last year came at a bad time, but a good crop this years
would definitely impact us. It looks good so far.”
Michael Joe Cannon, owner of Cannon Chevrolet in Greenwood,
is planning two separate new facilities on Highway 82,
one for his Chevrolet/Cadillac lines and one for his Nissan
lines, each with its own sales, service and parts departments.
“We’re projected to start by the 15th of August
and should be open in October. We hate to leave downtown,
but we’re landlocked here. We’ll have space
and accessibility. The employees are excited and so is
the community.
“We’ve gone past expectations in the past
two years. We feel lucky. People have been receptive and
our sales have held their own. We hope they’ll continue
to pick up. We’re not satisfied by any means, but
we feel fortunate. We’re looking for it to take
off soon.
“We have good employees and we’re #2 in training
in the region for our service department. Service is service.
It is the ‘make you or break you’ aspect of
the business. We sell the first one, but the service department
sells the second, third and fourth.
Cannon says that the Ultima is his most popular Nissan
line, but with all the new products coming out of the
Canton plant, that may change. He mentions the Quest van,
the Titan truck and a full-sized SUV all being built in
Canton. “It’s exciting to know that we have
these quality products being built in Mississippi.”
He says the SUVs (Tahoe and Trailblazer) are his most
popular GM products.
Drew DePriest, owner of All Star Chevrolet in Greenville,
carries the full GM line along with Mazda and Mitsubishi.
He also says that GM full-sized trucks and utility vehicles
are the best sellers. “We’ve seen the biggest
increase in sedan sales in a long time, but they’re
still not in the numbers with the others.”
DePriest believes that automobile dealers haven’t
suffered as much as other sectors because interest rates
have helped a great deal. “We actually had a considerable
increase in sales when we went to 0% interest. Of course
those interest rates made used cars less valuable so you
can get fantastic deals on them. And banks are providing
low interest rates on used cars (3.9%). I think the housing
market has stayed strong for the same reason.
“Our business is as good as ever, if that’s
any indication of the overall economy. We have 68 employees
and everybody’s happy. Our service, parts, body
shop, used cars and new cars are all doing well.”
DePriest, who also has a dealership in Olive Branch, points
out that having two locations is an advantage in that
he can provide a large choice of inventory. If a customer
wants a vehicle, but in another color, or with different
options, or whatever, he’ll have it from the other
dealership that day. He says that size is an advantage
in the auto business. “I’m just tickled to
death to be in the Delta and to be able to maintain good
business,” he concludes.
While nobody is really hurting, everybody would like to
see a stronger economy, and in the Delta, that frequently
means a good crop. They’re all hoping and praying
that the good crops in the field in July will all be safely
harvested before any bad weather gets here. DBJ
