I suspect this trend will continue for at least the next 2 quarters.
Record 881 US auto dealerships closed in 2008-data
Thu Feb 19, 2009 12:55pm EST
... DETROIT, Feb 19 (Reuters) - A record 881 U.S. auto dealerships closed in 2008, with Detroit's three struggling automakers representing 80 percent of the decline, according to data released on Thursday.
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.
The number of closures, the bulk of which occurred in the fourth quarter, represents the biggest decline since 1991 when the company started to collect data.
The lack of credit has made it difficult for dealers to finance their vehicle inventory and for customers to secure financing to buy vehicles.
General Motors Corp (GM.N), Ford Motor Co (F.N), Chrysler have also encouraged their dealerships to consolidate in a bid to streamline their retail operations and reduce competition that has hit margins.
"There has been a loss of franchises across all the manufacturers, but the Detroit Three have been hit the hardest," said John Frith, vice president at Urban Science.
"We'll see even more contraction in the next several years as the Detroit Three strategically rethink their retail counts and locations."
U.S. auto sales fell 18 percent in 2008 to 13.2 million units. Analysts and auto expects have forecast a further decline in sales to as low as 10 million units this year. (Reporting by Soyoung Kim; Editing by Andre Grenon)
The local Pontiac dealer I used to drive by almost daily closed down, but it seems like that must have been about a year ago, before it got really bad. The building and signs are still there, with a sorrowful sign on the door thanking past customers.
sadly, we need to lose another 1500
Quote from: YO on February 19, 2009, 12:32:19 PM
sadly, we need to lose another 1500
I think there are too many dealerships, but I also think there are too many models.
Same brand dealers canabalize gross and volume from each other. Sure you lose some to the competition, but most to the guy taking a shorter deal down the street....
car dealerships have turned into the 5 and dime stores... this is the second becuase purchase of a humans life and the experience should be that...
Quote from: HEMI666 on February 19, 2009, 12:36:12 PM
I think there are too many dealerships, but I also think there are too many models.
Second biggest purchase?
For most people it would be. Not for me.
That would be a Science damned Mac tool box.
One benefit is that the poorly run dealerships are being winnowed out. The only dealerships I've known to close recently have done so as much out of poor management and shady dealing as the economic situation. But it is still related--with the extra pinch on the pocketbook hopefully only the best run dealers will remain.
Quote from: Soup DeVille on February 19, 2009, 05:03:34 PM
For some people, maybe.
YO said "second because"
I agree with the rest of his post though. This will def. change the game from here forwrd