After 28 years in auto advertising, Jim Moran says this is the worst downturn he’s seen, but he’s looking to economic forecasts pointing to a third-quarter bounce.
To deal with the slower market, Moran—president of owner of the Moran Group—cut seven employees and started diversifying clientele last year. In the past three months, he opened an interactive digital division and hired two people to meet growing demand for Internet marketing. Moran currently employs 40 people. “Like any other business, we’re trying to make smart decisions and look at other revenue,” he says.
Auto advertising dollars generally parallel vehicle sales. “Most agree the monthly auto numbers have bottomed out and recent numbers indicate it could be happening,” Moran says, adding that pent-up buying demand, combined with 30-year pricing lows and possible federal tax credits to back vehicle warranties, could fuel market recovery later this year.
For nearly eight months, East Baton Rouge Parish auto sales have been down 20% to 50%. Domestic dealers, already struggling with import competition, have struggled more in the recession because they’ve been saddled with financially troubled manufacturers. Many dealers eased declines by focusing on used vehicle sales and expanded servicing. Of Moran’s clients in other areas, a Hyundai dealership in Charlotte, N.C., managed to level sales with its buyback incentives while a Chevrolet dealer there closed the doors. In Houston, Gulf Coast Toyota projects a 30% to 40% sales decline, but Moran says these are stable numbers compared to a 60% to 70% drop in harder-hit states like California and Florida.—Anna Thibodeaux
