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Dealership Total Declines Again, Reports Automotive News

23 March 1998

Dealership Total Declines Again, Reports Automotive News

    DETROIT, March 23 -- The number of dealerships selling new
cars and trucks has declined for the 10th consecutive year, according to an
article published in today's edition of Automotive News.
    The trade paper reports that 22,351 dealerships were doing business in the
United States as 1998 began, down 76 from the 22,427 counted a year earlier.
The Big 3 accounted for the latest dip.  They had 17,580 dealers on Jan. 1,
1998, down 292 from the beginning of 1997.  Dealerships handling only imported
vehicles actually increased 216.
    Most of the Big 3 losses were by intent, rather than by business failure.
The domestic manufacturers are engaged in programs to trim or consolidate
their dealer organizations by 2000.  Last year, General Motors bid farewell to
203 dealers, according to Automotive News.  Chrysler Corp. was down 60, and
Ford Motor Co. was off 44.
    That total of 307 was reduced to 292 by a change in the number of
intercorporate duals -- dealerships that handle the products of two or all of
the Big 3 companies in the same store.  On Jan. 1, 1998, the Big 3 had 17,580
dealers.
    Last year's gain by the imports was in the segment the imports like the
most -- exclusive dealerships, those that handle a single make of foreign-
badged cars and/or light trucks.
    The import stand-alone outlets rose 258 last year to total 3,809 on
Jan. 1.  Another 962 dealerships handle a combination of imported makes but no
Big 3 brand, the trade paper reports.
    The importers prefer single-line dealerships.  They account for the bulk
of each brand's volume.  They have a lock on showroom space, and they have the
undivided attention of the sales force.
    Chevrolet, with 4,350 outlets, has the nation's largest dealer
organization, and Ford is close behind with 4,189.  At the low end are
Lincoln, 1,609; Cadillac, 1,535, and Saturn, 385.  The other Big 3 brands have
2,000 to 3,000 franchises apiece.
    On the import side, the leaders are Toyota, 1,194; Nissan, 1,088; Honda,
996, and Mazda, 852.
    Automotive News is published each Monday in Detroit by Crain
Communications Inc., a privately held company that publishes 29 consumer,
business and trade publications.

SOURCE  Automotive News