The three biggest Detroit-based auto manufacturers — Chrysler , Ford and GM — are continuing to decrease the number of dealerships and franchises across the country, mainly the result of consolidation plans. The Detroit 3′s stores account for two-thirds of all new vehicle dealerships even though their sales account for only half of new vehicle sales in the U.S. Since 2003, the attrition of Detroit 3 dealers has accelerated.
According to an Automotive News census, the big three had 621 more dealers on January 1, 2008 than the start of the year in 2007. Back in 2003, the three subtracted 256 dealers, and the moves are in an attempt to increase profits at remaining stores.
GM spokesperson Susan Garontakos explains at least part of GM’s 248 dealership and 227 franchise closures were due to dealership consolidations that will see Buick s, Pontiacs and GMC s sold under one roof and luxury brands Cadillac , Saab and Hummer under another. GM wants to sell 80 percent of new Buick, Pontiac and GMC cars from such dealerships by the end of 2008, an increase of 7 percent.
Ford ’s reduction of 214 dealerships represents a 5.3 percent decrease as of the beginning of 2008 on account of its reduced market share according to the automaker.
Chrysler ’s subtraction of 164 dealerships or 4.6 percent is a reflection of Project Genesis, a move to consolidate Chrysler, Dodge and Jeep franchises.
In the industry as a whole, 239 less new-vehicle dealerships existed on January 1, 2008, than the same date last year, representing a 1.1 percent drop.
