Florida Dealers to Gulf Coast Dealers: Business Could be Off the Charts After Ultimate Recovery

Washington DC September 6, 2005; The AIADA newsletter reported that auto dealers in the Gulf Coast states of Louisiana, Mississippi and Alabama, now face immense challenges amid Hurricane Katrina’s destruction.

Florida dealers can relate, having dealt with the aftermath of four hurricanes last year. In an Automotive News article today, Florida dealers cite challenges such as battling with insurers to reach settlements covering damaged inventory and facilities, the painfully slow pace and expensive cost of rebuilding the dealership because of shortages of raw materials and construction workers, and a shortage of experienced dealership employees with specific skills, such as service technicians and finance and insurance specialists.

Amid these challenges, auto analysts say the number of cars damaged could be anywhere from 250,000 to a half million in the Gulf states. But the Florida dealers offer a positive prospect. If the Gulf Coast’s ultimate recovery mirrors their experience, the dealers say, business could be off the charts.

Bret Helphenstine, dealer principle of Palm Automotive Group, says sales at his dealership started to recover about three months after Hurricane Charley hit. Since then, he adds, they have never been better.