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Hawaii new
car sales soared
10.8% in 1999

A 20.6% increase in import
purchases easily offset a 1.3%
drop in U.S.-made autos

By Rick Daysog
Star-Bulletin

Sales of new automobiles in Hawaii jumped 10.8 percent last year, the largest annual percentage gain of the past decade.

In a sign that the state's economy is on the mend, the number of cars and trucks sold at local dealerships rose to 45,054 in 1999, up from 40,673 in 1998, according to the Hawaii Automobile Dealers Association.

"We're basically coming out of a 10-year stagnation," said Eric Miyasaki, president and chief executive officer of Nissan Motor Corp. in Hawaii.

Sales of import car and truck models, which account for nearly 60 percent of all autos sold in Hawaii, were a big reason for the improvement. That sector increased 20.6 percent to 26,995 vehicles from 1998's 22,379. Meanwhile, U.S.-made autos dropped 1.3 percent to 18,059 in 1999 from the previous year's 18,294.

Fleet car and truck sales increased 12.3 percent to 37,874 from 1998's 33,735.

Fleet sales, which largely reflect new car registration by local daily rental companies, have benefited from the recent rebound in tourism arrivals in Hawaii.

Car dealers caution that 1999 results are well off the all-time high of 57,456 in 1989 and compare with a 10-year low of 40,673 car sales in 1998.

Still, 1999's total auto sales represents the industry's third-highest annual output since 1991 when the statewide economic slump started.

"Things are turning," added Curtis Lee, executive vice president of Servco Pacific Inc.'s automobile operations. Servco is the local distributor for Toyota, Lexus and Suzuki.

"It's not turning back to the good old days of the late '80s but I think it's turning gradually."

Lee said that Servco's 1999 sales were its highest in the last decade. While Lee declined to provide specifics, he said the company's increase was well above the industrywide 10 percent.

Along with an improving local economy, car dealers attribute their increased business to new products. For instance, Nissan's sales received a boost from last year's introduction of the Xterra sport utility vehicle, Miyasaki said.

Mike McKenna, owner of Mike McKenna's Windward Ford and Mike McKenna's Windward Volkswagen/Mazda, said Volkswagen sales at his Kailua dealership doubled after the German auto maker introduced new Jetta, Bug and Passat models last year.

"People are definitely coming back and are looking," said Miyasaki.