SOMBA K'E/YELLOWKNIFE - Yellowknife Chrysler posted strong sales last month, confirming to owner Greg Boucher that Yellowknife's car sale industry has more than weathered the recession.

Greg Boucher, owner of Yellowknife Chrysler on Old Airport Road, said his dealership experienced strong sales in June and he has no reason to suspect that trend won't continue throughout the rest of the year. Boucher stands inside the area of his dealership's lot that will be expanded in order to accommodate an additional 80 to 100 units. - Guy Quenneville/NNSL photo

"It was a record June for the last 10 years," said Boucher, who added that the Dodge Ram truck - the Automobile Journalists Association of Canada Car of the Year - led sales at the Yellowknife lot.

"It's not just June," he said. "The whole second quarter of the year has just been excellent. We're on track for record pace."

That news comes as preliminary data from Statistics Canada shows new motor vehicle sales fell about one per cent last month.

"It's a combination of things," said Boucher. "The mines in particular have managed things very well. (They're) experiencing shutdowns, but they've juggled their people in such a fashion that it hasn't created a lot of lost jobs.

"Secondly, there's great incentives from the manufacturers now and I think Western Canada is still, relatively speaking, in great shape."

Not that his lot didn't have its troubles in the past six months.

"I think the biggest drawback we experienced was the availability of retail credit through all the banks and car-lending institutions, but that's also begun to correct and there's more retail credit out there for consumers and at better rates.

"The only challenge we're going to have is a lack of inventory as our sales rate was higher than anticipated," he said.

The lot normally has between 120 to 150 new vehicles on the lot. Boucher said that number currently stands at 30.

"We're scrambling to grab product. We're sourcing product from new places."

It will take about two to three months for the situation to correct itself, he added.

"In a factory order situation, it means a person is going to wait about six to eight weeks to get their new vehicle ... if they choose something that we don't have here on the lot."

Mayor Gord Van Tighem was heartened to hear news of strong sales at Yellowknife Chrysler.

"All of the car dealers, when Stats Canada came out with their (report that) sales have dropped in the NWT, they say, 'where's that coming from?'" he said.

He said steady car sales is another sign Yellowknife's core industry outside of the diamond and exploration sector is still healthy.

"As far as the core industries, travel has recorded a bear up ... the low fares have generated a significant volume of air travellers. Highway travellers are here," he said.

Yellowknife Chrysler is currently expanding its lot to accommodate an additional 80 to 100 units.

Boucher said the new area should be ready within 60 to 90 days.