Despite the March rebound, 26.4 percent of dealers responding to an unscientific Automotive News survey last week still said their dealership posted a loss in the first quarter. Isuzu dealers reported the highest percentage of unprofitable stores, with 80 percent saying their franchise lost money during the first three months of the year.

Just 6 percent of Toyota and Honda brand franchise holders responding to the survey said they were unprofitable. That compares with 43 percent of Chrysler brand dealers, 39 percent of Chevrolet dealers and 36 percent of Ford brand retailers.

Except for March, "we've been consistently unprofitable here since October 1," said Doug Campbell, dealer principal of Campbell Ford-Lincoln-Mercury in Niles, Mich.

Foot traffic is off. And although volume isn't down much, the sales mix is shifting away from pickups and SUVs toward smaller, less profitable vehicles such as the Ford Fusion and Focus, Campbell said. It has made him tighten the belt by reducing overtime, cutting energy costs and trimming the ad budget.

"I'm just going to try to tread water until fall," Campbell said. "There's new product coming." He says he's optimistic about the 2007 Ford Edge crossover.

Import brand franchises are doing better.

"Thank God that I've got Toyota," said Jerre Penney, dealer principal of Bill Penney Toyota in Huntsville, Ala.

But even his Toyota store saw a profit decline in the first quarter, primarily because of aggressive discounting by other area Toyota dealers and rising floorplan costs.

His Mitsubishi store is in the red for the first quarter. "Last year we made a little money; this year is another story," Penney said.