Report: U.S. Dealerships Shrinking in Number, Throughput Down for 2019

The annual Automotive Franchise Activity Report asserts that the number of new-car dealerships in the United States has shrunk for the first time since 2013. The difference is marginal when viewed from a national perspective, but could support prior theories that larger dealer networks are consolidating while smaller, less competitive shops are being forced out of the market. The report claims the total number of storefronts fell from 18,294 in 2018 to 18,195 at the start of 2020. Dealership throughput was similarly down, decreasing by eight units from 2018 to 940.

While not particularly alarming, the figures do seem to mirror national population trends when placed under a microscope. The states that lost the highest number of showrooms tended to be regions that had the most trouble preventing people from moving.

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  • THX1136 Agree with SCE, the cost alone puts me out of the equation. Would I like an EV Charger, sure but see previous sentence.
  • IBx1 The only thing that stops a bad guy with a [Milwaukee Sawzall for stealing catalytic converters] is a good guy with a [Hydrochloric Acid 37%].
  • SCE to AUX Well, this is one reason to go electric.
  • THX1136 According to carbrain.com the cost for catalytic converter 'repair' is between $945 and $2475. They claim the converter cost itself can be up to $2250. Figuring $880 a unit doesn't seem too far out of line if the carbrain info is accurate. Wonder if gas theft is still going strong on the west coast also?
  • KOKing I'm not sure what to make of the small commercial van market in the US. There are a fair number of Transit Connects and ProMasterCitys, but Nissan/Chevy dumped the NV200 even though they seemed to sell well (though I guess Nissan decided to get out of the commercial space entirely), and I don't think Stellrysler ever bothered C/V-ing the Pacifica.