Stung by high gas prices, auto sales fell sharply in July from a year ago for the Big Three automakers, causing Maryland dealers to ponder if sales will improve in coming months, a state dealer group said.
The costs ? including real estate ? to run dealerships is high in Maryland, making monthly sales even more critical, said Peter Kitzmiller, president of the Annapolis-based Maryland Automobile Dealers Association.
"Most of my dealers have more than one franchise and a large number have couple domestic franchise and a couple Asian brands," Kitzmiller said.
"In Maryland, it is a very expensive proposition to operate a dealership," Kitzmiller said. "If you are a dealer and have five acres in Baltimore, it better be producing revenues."
In July, Asian automakers made huge sales gains with economy-minded U.S. buyers while Detroit automakers were hit hard, according to reports released this week. Buyers abandoned big sport utility vehicles in July and instead bought economy cars, mainly built by Asian automakers, according to auto sales reports.
July also marked a month that Japan-based Toyota outsold Ford Motor and Honda outsold Chrysler Group for the month, according to sales reports.
General Motors Corp. sales fell 19.5 percent, Ford sales slipped 34 percent and Chrysler sales dropped 37 percent, the companies reported in sales announcements. Truck sales ? including SUVs and pickup trucks ? fell 44 percent at Ford, the automaker reported.
Toyota?s passenger car sales jumped 25 percent, led by the compact Corolla, which helped overall Toyota sales leap 16 percents, the company said.
Sales for Japan-based HondaMotor Co. rose 10 percent, while sales for South Korea?s Hyundai Motor Co. improved 6 percent, the two manufactures reported.
eeldridge@baltimoreexaminer.com
