U.S. positive factors extra auto dealerships after two years of decline, City Science says

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The variety of U.S. franchise dealerships ticked again as much as 18,230 rooftops in 2021 after two years of declines, in accordance with City Science’s annual Franchise Exercise Report.

The national dealership count fell in 2019 to 18,195, the primary discount since 2013, and dropped again slightly in 2020 to 18,157, in accordance with City Science. However the enhance to 18,230 dealerships in 2021 nonetheless represented a smaller inhabitants than 2018’s 18,294 rooftops.

City Science mentioned all of the states with notable adjustments final yr added dealerships, led by California with 28 new rooftops. The report additionally highlighted Texas, which grew by 12; New York (10); Florida (seven); and North Carolina and Virginia (5 every).

City Science calculated that 85 p.c of main and minor U.S. metro markets noticed no web change in dealership rely.

Whereas rooftops grew, the variety of franchises working nationwide fell 1 p.c in 2021 to 31,646.

“Because the chip scarcity resolves and extra stock ranges the taking part in subject for shoppers in buy negotiations, a right-sized dealership community — not a reliance on short-term, pandemic-driven client willingness to pay extra — will proceed to be the underpinning of sustainable success now and sooner or later,” Mitch Phillips, City Science world information director, mentioned in an announcement Thursday.

It is a matter of discovering a franchise rely which fits common market circumstances, not the outlier years, Phillips defined to Automotive Information on Wednesday. The thought is that an automaker “needs to be designing the community for the center.”

Total, each the variety of dealerships and the franchise rely have been secure for years, based mostly on City Science’s information.

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