MENU
SEARCH
U.S. auto sales per dealership may return to levels reached before the recession after General Motors Co. and Chrysler Group LLC closed locations.
Sales per dealer may rise to about 745 new vehicles this year, according to auto-dealership consultant Urban Science. The National Automotive Dealership Association forecasts total U.S. sales in 2011 may rise 11 percent to 12.9 million, which would be about 23 percent less than the annual average from 2000 to 2007, reported The Detroit News.
The number of U.S. auto dealerships fell 4.4 percent last year to 17,659, Detroit-based Urban Science said today in its annual Automotive Franchise Activity Report. The rate of closings slowed from 8 percent in 2009, according to the report.
"The domestic consolidations worked and have allowed the remaining dealers an opportunity see their numbers rebound faster," John Frith, vice president of Urban Science, said in a statement.
GM, the largest U.S. automaker, and Chrysler eliminated more than 2,200 dealers as part of their bankruptcy reorganizations in 2009. The shutting of about one-fourth of the companies' dealerships drew criticism by the special inspector general for the Troubled Asset Relief Program, which said in a report last year that the "dramatic and accelerated" closings may not have been necessary and added to unemployment.
Detroit-based GM reorganized with $49.5 billion in government aid, while Auburn Hills-based Chrysler got $12.5 billion in assistance for its reorganization that year from the government's TARP program, which also aided banks.
More dealerships may close in 2011 after Ford Motor Co. discontinued its Mercury brand at the end of last year, according to Urban Science.
Ford plans to reduce the number of dealerships selling its Lincoln luxury brand in the biggest U.S. metropolitan markets by 25 percent to 325 outlets, the Dearborn-based automaker told dealers and reporters this month at the NADA convention in San Francisco.
The industry averaged a 16.8 million annual rate from 2000 to 2007, according to Woodcliff Lake, New Jersey-based researcher Autodata Corp.
Dealers should aim to build a positive work environment, helping employees execute an efficient experience, from their online research to the final delivery of the vehicle.
Read More →
A cloudy April forecast was expected due to last April’s sales surge in anticipation of U.S. trade tariff-inflated prices. Meanwhile, automakers pumped up incentives to address today’s consumer wallet woes.
Read More →
A recent price spike due to several larger market forces, though it hasn’t dulled demand, is pushing more consumers to efficient models to squeeze in buys.
Read More →
A group out West picked up the major D.C.-area collection, putting it in the upper tiers of private automotive groups in the U.S.
Read More →
Lenders loosened access for subprime borrowers, and consumers with negative equity reached a record high, Cox Automotive reported.
Read More →
U.S. consumer interest in electric vehicles lags behind other countries despite the rising gas prices caused by the ongoing war in the Middle East.
Read More →
Research reveals the brands and models most likely to have higher recall rates over their lifetimes. While some brands rank high, addressing safety issues can be a selling point.
Read More →
Cox Automotive data shows Americans doubled down on big-is-better despite price increases. Slightly higher incentives helped fuel the demand.
Read More →
Cox Automotive research shows both the opportunities and the challenges in turning consumers’ growing affordability needs into increased fixed-operations revenue.
Read More →
The partner you choose for growth and expansion is key, because better is the ultimate goal instead of growth for growth’s sake.
Read More →