Utah auto dealers launched a campaign Thursday to build local support for government aid to their troubled industry, emphasizing the demise of the Big Three automakers would have a "staggering" impact as it rippled through dealers, suppliers and consumers.
"The ramifications of doing nothing are grave for our economy," said John Garff, chief operating officer of Ken Garff Automotive Group and acting president of the Utah Automobile Dealers Association. "The automobile industry is the backbone of the U.S. manufacturing industry. Cripple that industry, as inaction [in Congress] will do, and the ripple effect will be devastating in quick fashion."
He and other leaders of Utah's $6 billion-a-year auto sales industry were making the rounds of Salt Lake news media outlets on the day Big Three executives were in Washington, D.C., pitching their request for $34 billion in federal assistance. Armed with synopses of information General Motors, Ford and Chrysler presented to Congress, the Utahns argued that myths about the causes of industry woes was diverting attention from the real issue -- the inability of consumers to get credit to buy vehicles.
No demand for American-made cars? Not true, said Garff, citing statistics that half of all cars sold are U.S. brands. Substandard quality? False again, he added, contending comparisons of warranty claims show that domestic and foreign brands have similar quality records.
"The problem is not about building green, fuel-efficient vehicles. The automakers are doing that," Garff said. "It's a short-term liquidity issue."
Kirk Schneider, owner of Nate Wade Subaru, said congressional failure to aid the American automakers will hurt international brands, such as his dealership's namesake, just as much as the Big Three. That's because the companies that supply bumpers to GM and Ford, for instance, also provide bumpers for Nissans and Subarus.
"The people who are going to suffer aren't those guys," Schneider said of the Big Three CEOs. "It's the guy who owns the tire store, the garage. If this deal goes down, wait until you see the public outcry for not helping."
Three million people could end up without jobs, Garff said, quickly turning a recession into a depression. Utah's 153 new vehicle dealerships, with nearly 10,000 employees and many more in support positions, will not be immune.
Even with a bailout, failures are likely. National Automobile Dealers Association Chairwoman Annette Sykora has said almost 700 dealerships have gone out of business already as auto sales plunged to a 15-year low.
The Utah auto dealers will be in Washington, D.C., early next week to lobby Utah's congressional delegation to support the rescue package.
mikeg@sltrib.com
National Automobile Dealers Association figures show the importance of Utah's 153 new-vehicle dealerships to the state's economy in 2007:
Total vehicle sales in Utah » $6 billion
Average sales per dealership » $39.3 million
Percentage of Utah's retail sales » 16.4 percent
Total number of employees: » 9,340
Average annual earnings/employee » $44,424
Annual payroll of dealerships » $413 million


