DEALERS ADJUST TO THE PANDEMIC ERA
Rise of novel coronavirus precautions cuts local car sales, Dale Edward Johnson says.
Car dealerships in Regina are feeling the impact of the novel coronavirus pandemic, as people stay home instead of going car shopping.
Hours have been reduced at several dealerships, some staff members are staying home and there have been some layoffs.
All the dealerships I contacted reported a drop in showroom traffic, but they’re open for business, as leases need to be renewed, cars need servicing and some people are still buying cars. New procedures and precautions are in place to help keep customers and staff safe.
“We have noticed a change. Everything is pretty slow, down by more than half,” says Devin Morrissette, new car manager at Regina Honda.
“We have seen a drop in floor traffic. We are still selling cars. Are we selling at the pace we would in a typical March? No,” says Chad Taylor, owner of the Taylor Automotive Group, which includes Taylor Audi, Taylor Volkswagen, Taylor Toyota and Taylor Lexus in Regina and Moose Jaw Toyota.
At Regina Nissan, new car manager Cory Unser says the drop in business means shorter hours.
“We’re no longer open late, only until 6 p.m., and our service department is no longer open on weekends.”
Other dealerships in Regina have also reduced their hours of operation in recent weeks.
At Regina Nissan, Unser says there are taped-off areas so people don’t get too close to the receptionists or service advisers.
“We have special chemicals that get sprayed in vehicles that go on test drives, and then are wiped down,” Unser says.
Janitors are spending more time wiping and cleaning the showroom and the cars.
And it’s not a matter of just fewer customers in the showroom; staff numbers are also down.
“We’re supportive of anyone who needs to be on a 14-day quarantine, or is the least bit sick. One person has an elderly mother who has health issues,” Unser says.
At other dealerships, some staff members have asked to stay home for various reasons: to share childcare duties, for self-quarantining, or to look after older relatives. Some dealerships have offered leaves of absence as sales slow.
At the Taylor dealers, there have been changes in marketing approaches.
“We’re offering test drives from a customer’s driveway, instead of coming into the dealership,” says Taylor.
And he says car deals no longer mean whispering prices in someone’s ear, or shaking hands when a deal is finalized.
“We’re all about making the experience for someone buying a car very special — but in these times, we’re trying to do it differently,” Taylor says.
“We sometimes see two or three people take part in the purchase agreement, and now we’re asking for just the one person making the decision to come by themselves,” he says.
Car dealerships are more than places to buy cars; they are also where cars are repaired, and dealers are reporting less business in the service area as well, in some cases by more than half.
“If people aren’t driving as much, they don’t need to get them serviced,” says Morrissette.
That’s why some dealerships have had to lay off service staff.
People may be able to delay buying a new vehicle, but when a car breaks down, it needs to be repaired. That’s especially true these days for doctors, nurses and others in essential services.
If there are government orders to shut down all but essential services, that could mean car showrooms would have to be closed. But even if that happens, it’s possible the service departments of dealerships could be allowed to stay open.
“The Canadian Automobile Dealership Association is lobbying for us to be considered an essential service, so that would mean our parts and service departments would remain open,” Taylor says. “Our sales areas might not be considered that. We’re hoping it doesn’t go there, and we can manage it by appointments only. That would reduce traffic and make sure we’re not filling the showroom with people.”
For businesses that only fix vehicles, but don’t sell them, being an essential business means the doors will likely stay open during the COVID-19 pandemic.
Trent Collins, owner of Gerry’s Automatic Transmission, has seen a decline in business, but he expects he would be able to stay open as an essential service. Some automobile repair facilities will need to stay open during the pandemic, so other essential services can continue to operate.
“I have two Canada Post vans, and I’m often fixing ambulances,” Collins says.
With the COVID -19 crisis changing daily, it’s impossible to predict how severely the retail car industry will be affected, but it’s certainly already feeling the impact.