Monday, May 21, 2007

There Are Too Many Big Three Dealers

Here's my latest piece up on Autosavant. Enjoy...

There Are Too Many Big Three Dealers

By Chris Haak


I’ve heard over the past several years that among the many problems the Big Three have, that their dealer count is too large. Basically, there are still nearly as many dealers today as there were years ago when the domestic manufacturers (GM, Ford, and Chrysler) had a stranglehold on the US market, with share above 75%.

The reality today is that amidst falling sales and even faster falling market share, the dealer count is not falling nearly as quickly. The problem then is that there is nearly the same number of dealers fighting for their piece of an ever smaller pie.

I’d known anecdotally that this was a problem, but this past week, I noticed in a supplement to industry publication Automotive News just how pronounced this problem is. The supplement had some data on both the number of franchises for each vehicle brand in the US – the number of Toyota, Chevy, Dodge, etc. dealers – as well as the average annual sales per store.


Anonymous said...

Problem for consumer is that I (personally) in the past found that the service I recieved on my car was BEST at single brand dealers.
Here now in NJ there is not a single stand-alone Pontiac dealer & only Buick stand alone dealer.
That stinks.

Anonymous said...

Meant to say only ONE stand alone Buick Dealer.....