Car Importers Feel Strike Most

Squeezed by dwindling supplies and strong sales, dealers selling many foreign car makes have become the first to feel a pinch from the nationwide strike by unionized car haulers, dealers and industry officials say.

A strike by 20,000 car haulers represented by the Teamsters began July 26, effectively halting delivery of all new cars to the nation’s car dealerships.

Domestic dealers had plentiful supplies of cars in stock as the strike began and therefore have not yet suffered significantly from the 11-day-old walkout.

But import dealers--particularly those selling Japanese cars--have been left in a more vulnerable position because most of their models were already in short supply when the walkout started.

In fact, when the strike began, the Japanese auto makers were still in the process of replenishing their supplies in the wake of the easing of import quotas in April.

Smaller Supply

According to the National Automobile Dealers Assn., the average domestic dealer had a 58-day supply of cars on hand before the strike began, while import dealers averaged only a 30-day supply. A 60-day supply is considered normal.

Although import sales were up in July, the strike began too late in the month for the sales totals to reflect its impact, analysts said. But they expect August import sales to drop if the strike continues.

“The effect of the strike is far more immediate on import dealers because they are operating with a smaller supply” said Bob McElwaine, vice president of the American Import Car Dealer Assn.

Rod Hawner, sales manager of Bill Krause Honda in Los Angeles, said the strike has affected his dealership since the first day. With no new cars in inventory, Hawner said, his dealership is emphasizing used-car sales and taking orders for new cars. But, he pointed out, “you do not make money off orders.”

While Honda dealers appear to be the hardest hit so far, other dealers selling imported cars are also suffering.

Toyota reports that its dealers are down to a five-day supply of cars nationally. Mazda said its dealers had a 20-day supply of cars when the strike began.

Selection Reduced

“The longer the strike continues, the less selection there is at the dealers,” a Mazda spokesman said.

A Nissan spokesman said that, although its dealers currently have a 24-day supply of cars, company officials are worried that, by the end of the week, “the dealers are going to be in trouble.”

Jody Piano, sales manager at Al Piano Nissan in Thousand Oaks, said the dealership currently has 50 cars in stock, compared to its normal inventory of 100 to 150.

“It’s starting to hurt us financially,” she said. “People are ordering a lot of cars (for future delivery) instead of buying them (directly off the lot).”