AUTO SALES EXPECTED TO INCREASE AS U.S. CONSUMERS ARE REPLACING THEIR AGING VEHICLES

Sales of cars and trucks in the U.S. are expected to increase as much as 12 percent this year as consumers replace aging vehicles.

Sales could reach 16 million in 1994, surpassing the 14.2 million sold in 1993.

These figures were revealed recently during a meeting of economists for the Big Three -- General Motors Corp., Ford Motor Co., and Chrysler Corp. -- at the annual Society of Automotive Analysts Conference, held in Detroit.

The increase would mark the third consecutive annual gain in vehicles sales and could possibly surpass the record 16.3 million vehicles sold in 1986, the economists said.

Local dealers agree that 1994 could be another big year for automobile and truck dealerships.

"Last year, 1993, was the best year in the history of Ford Groves Motor Co.," said Bob Neff, general manager of the firm, 1501 N. Kingshighway, which has been in Cape Girardeau more than 80 years. "And, all projections indicate that 1994 will be just as good. We're looking for continued growth over the next two years."

"Sales have been on an upswing over the past year, and we expect to see a continuation of that through 1995," said Matt Margetta, general manager of Auffenberg Chrysler-Plymouth-Dodge, 611 S. Kingshighway.

"People have been driving cars 10 to 12 years old," added Margetta. "They feel the economy is right now and are beginning to purchase new cars."

"We're seeing more activity in auto sales," said Mark VanMatre, of VanMatre Buick, 511 S. Kingshighway. "People are in a better buying mood these days, and we feel that 1994 will be a big year."

All Cape Girardeau new-car dealers agree that now is a good time to buy.

"New cars are an outstanding value," said Stan Lowery, general sales manager for Coad Chevrolet, 606 S. Kingshighway. "With a good selection on the market, people have a wide selection."

The past year has been good, noted Lowery.

"One year we had an earthquake scare, another year we were involved in the Persian Gulf War and then we had the presidential election," said Lowery. "But, last year, we had a pretty good year, and it's continuing into 1994."

"We're looking toward a great year," said Jerry Wieser, of Wieser Honda/Mazda, 2611, Auto Park Drive, located off S. Kingshighway. "A lot of people are driving older cars and are ready to trade. We're seeing a lot of cars coming in here with 150,000 to 200,000 miles on them."

Wieser said sales started picking up in 1993, and were continuing this year.

"January was good, and February is even better," he said. "This (February) could be the best month we've had in a year. We're anticipating two to three good vehicle sales years."

Crown Cadillac Olds Nissan, which moved from Independence to 607 S. Kingshighway last year, reported a healthy increase in sales in 1993.

"We're projecting a sales increase of 18 to 20 percent this year," said David Butler, sales manager of the firm. "I think all of the new things that are being presented by the manufacturers this year will create new interest."

"We're expecting a big sales year for both cars and trucks," said Chris Adkisson of Cape GMC Pontiac, Inc., 755 S. Kingshighway. "We hit the bottom of a cycle a couple of years ago, and sales are bouncing back."

Adkisson added that following the good sales year of 1988, sales started tapering off.

"Sales started picking up two years ago, and we're expecting a good year for 1994."

Wade McDonough of Cape Toyota-Suzuki, 835 S. Kingshighway, also said sales have been good.

"There appears to be a definite upturn in vehicle sales," he said. "We had a good 1993, and sales have been good the first two months this year."

Big Three economists predict that sales will continue to rise this year as the economy continues to recover, consumers pay off debts and workers' salaries increase.

Ford's chief economist, Martin Zimmerman, told the Associated Press that sales of cars and trucks loaded with options and fewer sales of imported cars will help domestic volume.

"For the first time in a good number of years, people are starting to say that economic recovery is sustainable," said Zimmerman.

In addition, GM's chief economist, George Eads, pointed out passenger cars and trucks are on the average more than eight years old in the U.S., the oldest fleet in more than 40 years.

A record 44.6 million of the nation's cars are 12 years old or older, noted Eads, adding that "the market is being fueled by replacement demand."

Chrysler economist Don Hilty foresees 15.2 to 16 million sales in 1994, while Ford's Zimmerman predicts U.S. sales of 14.5 million. Eads of GM expects about 14.8 million units to be sold.

Hilty predicted that the Big Three's share of the U.S. market will stay at about 72 percent through 1999.

He said sales of U.S.-made Japanese and European cars will increase to 15 percent, from the current 13 percent now, trading with imports whose sales are expected to decline to 13 percent from the current 15 percent.

Imports haven't dented the truck market, a stronghold for the Big Three, which controls 86 percent of all U.S. truck sales.

Chrysler and GM said the U.S. truck market may be about to peak at 40 percent of overall U.S. sales, where it will remain throughout the decade.

However, a Ford spokesman said recently that truck sales could reach 50 percent of the market share after 1996.