Dealerships challenged by short supply and low inventory

IRONTON, Ohio (WSAZ) – Times are changing in the automotive industry where the pandemic has led to some distinct challenges.

“I think the times of having 125 to 150 cars are going to be a thing of the past,” said Joe Rozell of Glockner in Ironton.

As General Sales Manager, Rozell says he would normally have more than 100 new cars on the lot. Currently, there are 11. He says the main problem with new cars is a global micro-processing chip shortage.

“Think about the technology that’s in that little phone that you’re using. There’s a lot more in that car that’s taking you and your family to the beach,” Rozell said.

The shortage has caused production of vehicles to slow down. So when Rozell sells one, it takes a little longer to get another one back on the lot. When it comes to used cars, Rozell says they are dealing with different issues.

“We don’t want to be that dealership that is selling things for way more than it’s valued at,” Rozell said.

But the short supply of vehicles has caused prices to go up when dealerships go to buy used cars.

“If we’re buying it from the auction or whatever, we’ve got to pay way up. We’ve got to pay retail to get it and in order to pass the savings onto the customer. We just can’t get the used cars and be profitable,” Rozell said.

Despite this challenging time, Rozell believes it is temporary, and he hopes to see some easier times ahead.

“I think that we’re going to get to mid-next year to the end of 2022. I think that we’ll probably see anywhere from 50 to 75 cars on the ground again.”

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