Southern Utah auto dealerships are expressing a shared sense of optimism

ST. GEORGE - While nationwide car and truck sales declined in May, representatives from a number of Southern Utah auto dealerships are expressing a shared sense of optimism as many continue to recover from the recession.

Stephen Wade, the owner of Stephen Wade Auto Centers, experienced impressive year-over-year gains of about 15 to 20 percent during the first quarter at his dealerships in St. George and California, but sales have since declined as a result of product shortages, continued unemployment and the lingering fear of economic instability felt by many consumers.

"It's lackluster right now," he said. "It's a challenge, to say the least, for everyone."

Nationwide auto sales dipped 2.9 percent in May, representing the largest decline since February of 2010, according to the Commerce Department.

Although the industry has struggled in recent months, Wade, who also serves as chairman of the National Automobile Dealers Association, a trade group representing dealers from across the country, said he expects sales and hiring activity at dealerships to improve this fall as the nation's supply of Japanese vehicles grows.

"I'm anticipating that the year is going to get stronger," he said. "With the earthquake in Japan, we have a lack of product when it comes to imports." The quake has stifled production of many imported vehicles and certain components used in domestic models. Wade said he expects dealers across the nation to struggle in June and July as many exhaust their supplies.

"The pipeline is drying up," he said, anticipating improved supply this fall.

Wade said he expects to see sales improved sales activity this fall, and throughout the coming years, as the country's economic wounds continue to heal and pent-up demand drives prospective buyers to their local car lots.

"I think we're coming out of this," he said. "I think this industry is turning around and coming back to its glory days, but we've got a ways to go."

While browsing the selection of vehicles available at Wade's Chrysler, Jeep and Dodge dealership in St. George Friday, John Harrison said he and his fiancé hope to purchase a vehicle to replace their aging cars.