Dealerships improve financially in 2010, report finds

June 22, 2011

June 22, 2011 — New-vehicle dealerships improved financially in 2010 despite a slow economic recovery, according to a recent National Automobile Dealers Association (NADA) report on the state of the auto industry.

Net profitability before taxes increased to 2.1 percent, compared to 1.5 percent in 2009, the report said. New and used sales per dealership on average increased about 19 percent and 21 percent respectively and annual payroll also grew.

“New-car dealerships improved their profitability in 2010 through strict cost control, such as reducing rent and real estate costs, cutting advertising expenses and maintaining lower floorplan costs,” said Paul Taylor, chief economist for NADA. “However, the difficult economic recovery and brands leaving the marketplace caused 760 dealerships to close in 2010.”

The report also found that sales of at medium and heavy-duty truck dealerships increased by 9 percent in 2010, as inventories of goods for transport increased throughout the U.S.

For the full report, click here.

NADA represents nearly 16,000 new-vehicle dealerships operating in roughly 32,500 domestic and international franchises.

Sponsored Recommendations

Best Body Shop and the 360-Degree-Concept

Spanesi ‘360-Degree-Concept’ Enables Kansas Body Shop to Complete High-Quality Repairs

How Fender Bender Operator of the Year, Morrow Collision Center, Achieves Their Spot-On Measurements

Learn how Fender Bender Operator of the Year, Morrison Collision Center, equipped their new collision facility with “sleek and modern” equipment and tools from Spanesi Americas...

ADAS Applications: What They Are & What They Do

Learn how ADAS utilizes sensors such as radar, sonar, lidar and cameras to perceive the world around the vehicle, and either provide critical information to the driver or take...

Banking on Bigger Profits with a Heavy-Duty Truck Paint Booth

The addition of a heavy-duty paint booth for oversized trucks & vehicles can open the door to new or expanded service opportunities.