“We were parking cars sideways for long stretches. We want the lot to look full,” McMann said. “The front was full, so I was driving through Wadsworth and I thought, ‘Hey, the front is full, there must be a car,’ and there was nothing in the second row.”
Phil Long Ford dealerships currently have about 700 new cars in stock, McMann said. He’s optimistic about the auto market because inventory is improving and the Denver area economy is strong.
Many others are more cautious.
Competition is fierce, with car companies that didn’t exist 10 to 20 years ago specializing in electric vehicles, while traditional companies like Ford and Toyota have been slower to do so. Battery electric vehicles are increasing their market share in Colorado, accounting for 11.2% of total vehicle sales in 2023, up from 7.8% a year ago.
Tesla has about a quarter of Colorado’s electric vehicle market, led by the Model Y, which accounts for 18% of the state’s electric and hybrid vehicle sales. The next closest electric or hybrid vehicle has a market share of 6.6%.
Electric truck maker Rivian has increased its market share in Colorado by more than 140 percent compared to 2022. Rivian is still very small and its economics are different from larger manufacturers.
Ford’s slow sales have caused delays at several battery assembly facilities in recent months, forcing automakers like Ford to scale back production of electric vehicles. It’s not clear why sales are declining, but some believe changes in federal incentives and higher auto loan interest rates are to blame.
“It’s certainly a difficult situation,” Ford President and CEO Jim Farley said on a conference call with investors last month. “The truth is that our business is not without its challenges, especially now with the evolution of the EV market, new global competitors in China, and technology disruption.”
But Farley was pleased to reach an agreement with the United Auto Workers, which had been on strike for a new collective bargaining agreement. Farley said the company will reopen three assembly plants and bring back more than 20,000 Ford employees.
Matthew Groves, president and CEO of the Colorado Automobile Dealers Association, said that before the strike and new labor agreement, new car prices were already very high, averaging $48,000. It is said that
“There’s some turmoil in the auto market,” Groves said. “Cars are selling very well, but prices are getting higher and higher due to interest rates.”
Interest rates range from 9 percent to 15 percent, adding hundreds of dollars each month to the purchase of a new car.
And Ford reported that the new labor agreement could increase the price of new vehicles by up to $900. The company said it will seek efficiencies to reduce costs wherever possible, many of which will be passed on to consumers.
But Phil Long Ford’s McMann remains optimistic.
He finally saw cars filling his lot. He said the new Mustang electric car is so cool that he leases it himself. Trade-in values are high, and some of the estimated $900 in new labor costs will be offset by rebates, incentives, and dealer discounts, including thousands of dollars in state and federal tax credits for electric vehicle purchases. .
“So you might feel it more strongly in some products than in others,” McMann said. “But for a high-volume product like the F-150, which is the best-selling truck in the world, we’re definitely going to sell those trucks. Dealers shouldn’t miss out on deals over $900. There is no.”