Economic downturn hits Utah auto dealers

Utahns are increasingly losing jobs, forking over more money at the grocery store, struggling to pay mortgages — and buying new Nissans.

At a time when overall auto sales are down nationwide, Utah auto dealers have taken a hit, and they've had to make changes. Mark Miller of Mark Miller Auto Group in Salt Lake City says vehicle sales overall were down about 10 to 15 percent in August from a year ago. And dealers say Chrysler's and Ford's U.S. sales were down further because they make so many trucks and SUVs — vehicles some drivers traded for more fuel-efficient models when gasoline exceeded $4 a gallon earlier this summer.

"We're watching our expenses more closely than we have in the past, but business actually is not that bad," Miller said. "It could be way worse."

His stores sold 209 Toyotas last month. "That's a pretty good month for us," he said. Subaru sales also have been doing well, and General

Motors vehicle sales picked up as the company offered consumers its employee discount.

Nissan auto sales went up nationwide about 14 percent in August, and at Ken Garff Nissan in Salt Lake City, they were up 17 percent compared to August 2007, general sales manager Rob Messer said.

"We are looking to downgrade our car," said Heather Blackburn, who came into the dealership Friday to comparison-shop the fuel-efficient Versa. With the economic downturn looking like it might stay awhile, she and her husband want a different car, she said. "We want a lower monthly payment, better gas mileage."

Overall, U.S. auto sales last month were down 15.5 percent compared with August 2007, according to the American International Automobile Dealers Association. Sales are down more than 11 percent for the year to date.

Chrysler LLC's U.S. sales dropped more than 34 percent, Ford's by 26.5 percent, Toyota's by 9.4 percent and Honda's by 7.3 percent.

Chrysler and Ford blamed their declining U.S. sales on their truck and SUV-dominated lines.

Sales of the Mini Cooper, however, rose 35 percent in August, the automobile dealers' association said.

Messer said Nissan also saw a rush on its fuel-efficient Sentras and Versas: "They pretty much cleared out in a month."

Nevertheless, the Chevrolet Silverado pickup truck was the nation's No. 1 selling vehicle last month, the dealers' association said.