Sheena Leaman took the keys to her 2020 Chevy Equinox and breathed a sigh of relief.
“I was worried due to these trying times,” said Leaman, a 23-year-old machine operator from Clinton Township. “I went to multiple car dealerships and they were giving me crazy prices. The rebates are not as great as they were. And my lease was coming to an end.”
She is one of many car shoppers who has been uncertain about what to expect from the impact of newly relaxed stay-home restrictions related to the coronavirus and how it might affect her shopping choices. Meanwhile, car dealers say they’re overjoyed to see people, but they’re now coping with a rapidly shrinking supply of vehicles. The Detroit Three stopped car production from mid-March to mid-May because of the pandemic.
And now, well, pickings are slim.
“We have back orders on everything,” said Sam Pack, president and CEO of Pack Auto Group based in the Dallas-Fort Worth metro area. “The Ford Edge, Escape, Expedition, Explorer, F-150, Super Duty, Mustang, Ranger. But the Ranger is our shortest availability of all our vehicles. All four of our Ford dealerships have a total of 14 Rangers when we normally would have 100.”
He owns six Five Star dealerships; four Ford, one Chevrolet and one Subaru.
“We’re short of inventory in all vehicle lines. The Chevy inventory is more severe than Ford, particularly Silverado. We have 22 light duty (Silverado) pickups in stock. We will run out in June,” Pack said. “And we will run out of F-150s at the pace we’re running now if, in fact, production doesn’t keep pace. We usually sell about 300 a month.”
For pretty much everybody, the shortage “will be with us another 60 to 90 days,” he said.
And this is why Ford, General Motors, Fiat Chrysler and the overall auto industry are adding production shifts to ramp up their factories as quickly as possible. Dealers noted that the process hasn’t been without challenges, including disruption at Ford plants. Getting parts from Mexico has caused delay, too.
Chris Ferlito, 32, a lawyer from Grosse Pointe Farms, wanted to lease a 2020 Chevrolet Suburban as quickly as possible to accommodate the latest addition to his family of five.
“We knew exactly what we wanted and we were able to get it,” he said, grateful that he shopped in May with Brian Carroll Automotive rather than waiting. He received his keys on Thursday.
Jeep? Blazer? Good luck
“Dude, we’re rocking,” said Thad Szott, co-owner of Szott Auto Group in White Lake Charter Township. “The internet leads are coming in at a pace where we’re almost struggling to keep up. With Ram Truck and the Jeep Grand Cherokee Limited, we’re definitely concerned about having enough inventory versus demand.”
He said his customers so love the new delivery model, where everything is done at the buyer’s home, he isn’t sure if many folks will return to dealerships.
Brian Carroll of Brian Carroll Automotive Group in Macomb Township is seeing the same thing in his work as a car concierge who partners with different dealerships. “Chevy Silverado, Dodge Ram and Jeep Compass are very tough. The pickup situation, all of it, including GMCs. We’re also having a tough time with the Chevy Blazer.”
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