A slightly better story I wrote

The automotive sales and auto repairs shops in Tucson are doing very poorly in the current state of economic woes, but many privately owned used car dealers report stable sales due to programs targeting low-income buyers.

In times of economic despair, people are far less likely to buy new cars, and in 2008, car companies reported decreases in sales in all types of cars, from 14 per cent for smaller cars to 50 per cent for large SUV’s, according to the American Automobile Association. Strangely, auto repairs shops’ numbers are down as well, with many in the Craigin-Keeling area of Tucson reporting profits falling over 20 per cent from last year.

The auto-sales industry is doing extremely poor and Tucson is not unique to that fact. According to the U.S. Census Bureau, motor vehicles and parts dealers are reporting sales down over $20 billion from 2006.

Experts attribute the decline of the automobile industry as they do much of the fallen industries in the economy, to the rising unemployment and scarcity of jobs. Professor Cathleen A. Johnson of the University of Arizona economics department said, “This is an “economic winter”, countless jobs are being lost and the problem with that is that they can’t be replaced, the economy will come back at some point but the recovery could take five years.”

Johnson also believes that much of the automotive industry’s troubles stem from poor decision making in the executive offices accepting bailouts instead of trying to work out long time recovery plans. “I am tired of bad-thinking executives,” she said, “The more intervention (from the government) and the swing backs will be moderate and not real.”

In states of economic hardship, auto repair shops tend to do better than auto sales companies, and nationally this seems to be the case. According to the Auto Service Association, in times of recession people are more likely to hold onto old vehicles, and in 2008, 51 per cent of shop owners reported increases in profits. Yet, some of Tucson’s auto repair shops in the Keeling area are reporting falling profits.

Mike Stephens, who has owned Sports and Imports Auto Repairs on 30 E. Jacinto St., for 11 years, said that his profits have fallen 25 per cent from last year. “Those numbers aren’t unique,” he said, “All shop owners in the area are doing badly, people are holding onto their money.”

Stephens has even had to refuse people service unless they absolutely need it, having seen problems with people not being able to make payments on basic repairs.

Stephens said that he is keeping his shop alive through accepting alternative methods of pay, “We’ll start seeing more bartering and exchange of service,” he said, “If an eye doctor comes in here I’ll give him free service because I need an eye-check.”