Despite the tough economy taking the toll on specialty-equipment sales this year, SEMA members are still investing their profits in marketing—just in different ways. When companies were asked in a recent survey how they invest their marketing dollars, the no. 1 avenue was car shows, giving credence to the value of one-to-one contact with their customers.
Consumers are turning their eyes towards new vehicles again. The findings from recent reports are showing upward, although minimal, gains in market confidence.
Detroit has long been regarded as the car production capital of the world. The historic metropolis is nicknamed “Motor City” for a reason. It's the place where Chrysler, Ford Motor Company and General Motors established an industrial epicenter and where they are still headquartered to this day. Recently, however, the news coming out of Detroit has been more a continual flow of doom and gloom.
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While retail vehicle sales are down roughly 33% from this time last year, stability could be on the horizon. Economists are embracing favorable views of the road ahead as sales slowly picked up in February and March.
While computers get smaller, phones become capable of sending email and iPods become personal entertainment centers, one aspect has remained relatively the same: the technology that fascinates us and simplifies our lives has been limited in its use within our vehicles.
Consumers remain hesitant to make new vehicle purchases. Recent economic instability has not only caused consumers to reconsider these substantial purchases, but has also led them to neglect maintenance.
It’s no secret that specialty-equipment sales declined in 2008 as a result of our economy taking a turn for the worse during the latter half of last year. Despite this market contraction, 37% of SEMA members recently surveyed noted that their company’s sales actually increased in 2008 over 2007.
In April, the SEMA Performance Parts and Accessories Demand Index (PADI) dropped to an all-time low, going from 30 in March to 26 this month.
General Motors deliveries are down 42.5%. Toyota posted a 37% sales decline. Ford reported a drop by 38.1%. Yet, executives remain optimistic.
With figures like these, it is hard to believe that manufacturers are finding optimism. GM had total deliveries of 155,380 in March, down 44.7% from a year ago, but cited a 23% increase in deliveries from February.