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Colorado Car Dealers Slashing Jobs Amid Slump

Auto Industry Accounts For Nearly 30,000 Jobs In State

POSTED: 1:57 pm MST November 18, 2008
UPDATED: 6:38 pm MST November 18, 2008

Colorado car dealers say they're laying off workers because sales are plummeting, and they want Congress to step in to keep U.S. automakers afloat.

New-car sales in the state are expected to drop between 20 percent and 25 percent this year, said Tim Jackson of the Colorado Automobile Dealers Association.

Jackson said Monday that the state's dealers have slashed staff by about 10 percent this year, with many of those cuts coming between Friday and Monday.

He said he knows of some dealerships that cut at least 10 percent of their staffs on Monday alone. He declined to name them.

"It's unfortunate. It's sad. It's a sign of the times," he said.

Vince Armijo, general manager for Burt Chevrolet on Broadway said the decline has little to do consumers not wanting new cars.

"It's just the public’s buying confidence has dropped," said Armijo.

Amijo said staff members have remained upbeat during the down turn.

"You have tough times, but it's how you face those tough times; we're pushing through," Armijo said.

AutoNation's work force in the metro Denver region has declined to 1,200 from 1,400 in the past five months, said Steve Strader, president of the local market.

John Medved, who runs the Colorado company with the same name, said he has reduced his total staff to 285, from about 600 several years ago.

Jennifer Parks, from Highlands Ranch, told 7NEWS she hoped Congress will rescue automakers in trouble.

"I think it's in everyone's best interest, if one of the big three go under, it's really going to be an economic disaster I think," Parks said while browsing for a new sport utility vehicle Tuesday.

Car dealers say if the automakers go under, they would take more jobs and even some dealerships with them.

"I'd love to see market forces at play," Strader said. "But our country is not in a position to allow that to happen. Right now there is too much at stake."

The dealers said some consumers are reluctant to make a big purchase now with the economy in decline, while others who want to buy can't get a loan, or are afraid they'll be turned down if they apply for one.

"The credit foundation has been knocked out from under the economy," Strader said.

Another factor in the decline, the dealers say, is the fact that Detroit is building better cars that last longer and don't have to be replaced as soon as older models.

The dealers association said the automotive retail industry accounts for nearly 30,000 jobs in the state and generates more than $418 million in revenue for state and local governments.

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