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State new vehicle registrations tumbled in September [Milwaukee Journal Sentinel] [11/04/2009 ]

Nov. 3--Total new vehicle registrations in Wisconsin dropped by almost 10,000 in September from the previous month, according to an automotive market analysis firm.

The drop was expected, with the previous month including sales spurred by the federal government's "cash for clunkers" program, auto industry officials said.

"It's absolutely a 'cash for clunkers' hangover," Jim Tolkan, president of the Automobile Dealers Association of Mega Milwaukee Inc., said of the September numbers.

Statewide in September, there were 13,693 new vehicle registrations in Wisconsin, down 42% from 23,486 in August, according to Lexington, Ky.-based Cross-Sell.

In September 2008, new vehicle registrations in Wisconsin were 19,668, according to Cross-Sell.

National vehicle sales numbers for October are scheduled to be released on Tuesday.

Tolkan said those numbers are expected to show improvement in the market.

Area dealers said the September numbers also were down because inventories had been depleted by the clunkers program and further reduced by production slowdowns by automakers.

"Nobody had any inventory," said Jim Griffin, who operates auto dealerships in Waukesha as well as on Brown Deer Road and at a new location on S. 27th St. in Milwaukee.

Palmen Automotive Group in Racine and Kenosha also had very little inventory, President Andy Palmen said.

"Our inventory was gone" in September, he said. There were so few cars on the Kenosha lot, he decided to have it repaved, he said.

In Milwaukee, Waukesha, Washington and Ozaukee counties in September, a total of 3,295 new cars and light trucks were registered, Tolkan said. That's down 40% from 5,507 in September a year ago, he said.

"Everyone knew there was going to be a hit" to sales after the clunkers program, Tolkan said. "It dropped off quite a bit after 'cash for clunkers.' "

Tolkan and auto dealers said they expect the October numbers to be stronger than the September figures.

"There are signs of things getting better and better," Tolkan said.

To see more of the Milwaukee Journal Sentinel, or to subscribe to the newspaper, go to http://www.jsonline.com.

Copyright (c) 2009, Milwaukee Journal Sentinel

Distributed by McClatchy-Tribune Information Services.

For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

<< -- 11/04/2009>>

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