As dismal news continues to emerge nationally from a struggling U.S. auto industry, dealers here say that sales have been sluggish, but that theyre optimistic about the future.


Sagging auto sales and growing consumer preferences for fuel-efficient cars have hit domestic manufacturers harder overall than foreign auto makers, dealers say. The tough times have led to leaner sales forces, as well as more aggressive marketing efforts, they say.


The year has been a roller coaster ride, says Chud Wendle, president of Wendle Motors Inc., of Spokane. Were not at the pace we were a year ago.


Jay Griffiths, new-car sales manager at Spokane Chrysler, says that sales of new cars have been a little bit flat this year, but that overall sales rebounded considerably last month.


New cars across the nation have been facing some pretty big declines, Griffiths says.


DaimlerChrysler AGs Chrysler Group says that U.S. sales through August are down 10 percent from the year-earlier period, while Ford Motor Co.s domestic sales through August also have dropped nearly 10 percent. General Motors Corp. says its national sales through August are down 12 percent.


Meanwhile, Toyota Motor Co.s Web site says that companys U.S. sales through August have increased 11 percent from the year-earlier period. Toyota dealers here couldnt be reached for comment.


Sales of import vehicles at Wendle Motors, which sells Nissan, Infiniti, Suzuki, and Ford products, have been up so far this year compared with last year, but sales of its Ford vehicles, reflecting the national trend, have been down by about 10 percent compared with the year-earlier period, Wendle says. He attributes the success of the dealerships import vehicles to their reputation for quality and fuel efficiency, as well as foreign manufacturers efforts to continually bring new products onto the market.


Fords bread and butter has always been its trucks and SUVs, and I think Ford Motor Co. was really caught off guard with how the market responded to fuel economy, he says. Toyota primarily has been ahead of that curve for several years by building its image on quality and fuel economy.


Marlene Marti Hollenback, owner of Dishman Dodge, of Spokane Valley, agrees that a reputation for fuel economy has helped foreign makers such as Toyota. The Japanese auto maker has heavily marketed its gas-electric hybrid vehicles, while Dodge hasnt placed as much emphasis on its more fuel-efficient engines, which cut down on fuel consumption by switching down to four cylinders during highway driving, Hollenback says. Now, consumers who used to prefer the macho Ram trucks are buying cars instead, she says.


Hybrid is the big hype, but a lot of people dont realize we offer vehicles with engines that give you the same benefit, she says.


Dishman Dodges sales so far this year have improved slightly from last year, she says. In the several years prior to last year, sales had been growing annually by 15 percent, so the dealership was surprised when sales fell flat last year, she says. As a result of the sluggish growth, Dishman Dodge has allowed natural attrition to reduce its work force, and has watched its expenses more closely, she says. It also has started offering a wider range of used cars, which have been selling better than new cars this year.


Rumors have been circulating that Empire Ford Inc., of Spokane, is planning to close its dealership, located prominently on Third Avenue near Interstate 90 downtown. Nate Greene, president and owner of the Ford dealership, however, said last month that there are no plans currently to close, even though business has been crappy.


In response to mounting competition from foreign manufacturers such as Toyota and Honda, the Big Three U.S. auto makersFord, General Motors, and DaimlerChryslerare offering new buyer incentives and trying to roll new products onto the market faster, which dealers here say is an encouraging sign for the future.


Chrysler is offering zero percent financing for 72 months on nearly all 2006 model year vehicles, which should help boost Spokane Chryslers sales in the short term, Griffiths says. The manufacturer also has increased its rebates, which is expected to attract more buyers, he says. Griffiths expects that the introduction of a new SUV called the Aspen and the redesigned Sebring sedan this fall also will help boost new-car sales.


Says Wendle, Ford has some good products coming down the pipeline. Were very excited that (new Ford CEO Alan Mulally) will be driving the product cycle.


In the immediate future, however, Wendle says he expects a dip in new-car sales in the fourth quarter of this year, because Ford has said it will cut U.S. production during that quarter by 21 percent. Wendle expects that sales of used cars will continue to grow steadily.


In addition to auto makers efforts to bolster sales, dealers here are pursuing more aggressive marketing strategies. For instance, Wendle Motors recently launched a wave of TV commercials and other advertisements, which Wendle says is part of its focus on brand marketing to separate itself from competitors.


Mail advertisements have exploded in the last few years in the Spokane market, Griffiths says. While marketing is important to attracting new customers, though, repeat and referral business is even more vital to sales growth, he says.


Customer service is a lifeline, because when times get tougher, pulling customers in costs a tremendous amount of money, he says. Taking care of current customers makes tough times a little easier.


Hollenback, who also is the Washington state representative to the National Automobile Dealers Association, says business is picking up a bit in Eastern Washington and North Idaho, especially compared with dealers in the northeastern region of the U.S. who still are struggling significantly.


She expects that sales growth will continue at its current steady pace at Dishman Dodge the rest of this year.


I feel like were making a comeback in our area, she says. Nothing will happen really fast, but Im encouraged and feeling positive about business turning around.


Contact Emily Brandler at (509) 344-1265 or via e-mail at emilyb@spokanejournal.com.