Daily Auto News Auto Dealerships Closing at Record Pace
Daily Auto News
More car dealerships closed their doors in 2008 than in any year before. If current auto sales projections hold, however, 2009′s numbers will easily pass the new record.
Reuters reports, “A record 881 U.S. auto dealerships closed in 2008, with Detroit’s three struggling automakers representing 80 percent of the decline. In the face of tight credit and a plunge in sales of cars and trucks, about 4.2 percent of the country’s 20,084 auto dealerships shut their doors, according to data firm Urban Science.” More than half of the closures occurred in the last three months of the year.
The numbers are likely to get worse. Autoblog notes that Americans bought 13.2 million vehicles in 2008, but “many analysts are expecting 2009 sales to plunge all the way down to 10 million units.”
In addition, the Big Three have undertaken efforts to trim their stable of dealerships. Reuters explains, “General Motors Corp, Ford Motor Co, Chrysler have also encouraged their dealerships to consolidate in a bid to streamline their retail operations and reduce competition that has hit margins.”
Autoblog points out, “Detroit automakers have less than 50% of the US retail market and closer to 75% of the overall dealerships.”
Each of those dealerships is now motivated to prove its ability to sell a large number of cars – meaning that great deals can be found almost anywhere. Research the best car deals with U.S. News’ car rankings and reviews.
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