November 27, 2022

Provide chain problems hit Orange County auto sellers exhausting on one metric—just about part of the native sellers reported drops in gross sales quantity during the last yr.

General new automobile gross sales fell 19% to 50,102 in June, whilst used automobile gross sales have been down 6% to 34,230, in step with the Industry Magazine’s newest Auto Sellers record.

The craze follows a countrywide decline in automobile gross sales. The U.S. automobile marketplace noticed an 18% drop in registrations from June ultimate yr to June this yr, whilst registrations in Orange County fell 15% all the way through the similar duration, in step with the Orange County Auto Sellers Affiliation (OCADA).

Native broker payrolls additionally took a slight hit this yr—overall salespeople at dealerships declined 2% to 646, whilst the whole selection of carrier body of workers stayed flat at 1,343.

Falling gross sales, then again, aren’t a trademark of falling client call for, in step with OCADA Government Director John Sackrison.

“Call for hasn’t softened,” Sackrison informed the Industry Magazine. “If anything else, it’s grown, as a large number of other people have put purchases off all the way through the pandemic.”

Regardless of falling quantity, the native auto broker business remains to be up with regards to income, with many sellers a long way surpassing their pre-pandemic ranges.

General gross sales quantity for the native auto broker business grew 5% to $5 billion this yr, thank you to better margins on automobile gross sales and repair paintings.

Provide Chain Uncertainties

Provide chain problems were plaguing the car business for the previous two years.

The shortages started with the pandemic and feature been exacerbated by way of more than a few world crises, such because the battle in Ukraine and lockdowns in China.

The common automobile incorporates round 30,000 portions, lots of which might be imported from far and wide the sector.

That’s why “[if] any nation has some type of disaster or factor, that may have an effect on car production around the globe,” Sackrison stated.

“You handiest want a few the ones portions to be in a scarcity, and that forestalls the manufacturing line.”

With manufacturing strains on dangle, auto sellers were suffering with low stock ranges as call for outpaces provide.

That explains the 13 native sellers who’ve noticed drops in gross sales quantity during the last yr.

Newport Lexus in Newport Seaside noticed the steepest drop in gross sales, an 18% lower to $167 million.

An in depth 2d is Hardin Honda in Anaheim, which noticed gross sales fall 17% to $71 million.

Weir Canyon Honda in Anaheim and Tuttle-Click on Tustin Inc. additionally noticed considerable gross sales dips, 14% to $64 million and 12% to $52 million, respectively.

It’s no longer transparent when sellers will see an finish to those shortages.

“I’m listening to that issues must recover by way of the top of this yr, however no person in point of fact is aware of needless to say,” Hyundai Motor The united states CEO Randy Parker informed the Industry Magazine in June.

Gross sales Standouts

Vital gross sales boosts by way of some native sellers made up for the gross sales dips confronted by way of others.

Fletcher Jones Motorized vehicles in Newport Seaside retained the highest spot at the record with $785.3 million in gross sales quantity, an estimated building up of nineteen% year-over-year.

AutoNation Infiniti Tustin reported the biggest share building up in gross sales, 68% to $91 million.

3 different native sellers—Elmore Toyota in Westminster, AutoNation Ford Tustin and Santa Margarita Ford in Rancho Santa Margarita—reported gross sales rose greater than 30% up to now yr.

OC Auto Dealers See Fewer Sales, Higher Margins