Do three months count as a trend? If so, then perhaps we’re seeing the
start of a rebound as our Dealer Panel has now reported three straight
months – May, June and July – of level tire and service sales.
Click here for August 2009 charts
While
those months have traditionally been strong ones for automotive sales,
coming off of the past 12 months it has been refreshing to see sales
rebounding to being even or nearly even with the same period last year.
Tire Review’s exclusive Dealer Panel reported tire unit sales reaching
last year’s levels in final June numbers. Preliminary numbers for July
show a slight softening in retail demand, with unit sales off just 1%
from July 2008. In the individual tire segments, all three product
areas surpassed last year in May and June. July was off just a bit.
Service Dollars
Final
results for June show both undercar and underhood service sales also
increased to reach last years’ levels. This is no small feat, since
monthly service sales in 2009 have been consistently running 4%-5%
below previous year levels. Preliminary July numbers also look
relatively strong, with undercar and underhood service trending at less
than 1% off of 2008 results.
Dealer Comments
Dealer Panel member comments continue to reflect concerns over the economy. Here is a sampling of what they had to say:
• I hope the economy picks up. We need the cash flow to improve.
• I don’t think we can continue to sell tires at the cheapest price.
• The past three months have been good. Things are looking up.
• They’d rather repair a tire than replace it, and if they have to replace it they buy the cheapest one.
• Regarding ‘cash for clunkers’ – we won’t have any cars to work on.
Become a Contributor
If you would like to participate as a regular contributor to this important study, contact Marketplace Insights at
john@mpinsights.com, or call 530-872-5568.