U.S. Dealerships Employed More than 1,000,000 People Last Year
According to information provided by the National Association of Automobile Dealers (NADA), U.S. new car dealerships employed more than a million people in 2013. This is “the first time the industry has exceeded that threshold since 2008.”
NADA forecasts the upward trend will continue in 2014 thanks to stronger a housing market, economic recovery and lower interest auto loans.
The information, released in the NADA DATA 2014 report, shows that employment in car dealership was 3 percent higher in 2013 than it was in 2012. The report reveals some more useful information: the average U.S. car dealership employed 57 people in 2013 compared to 55 people in 2012. Annual payroll was $3 million, a 3-percent increase.
Dealership profitability, however, is “unlikely to rise in 2014 from the 2013 industry average net pretax profit margin of 2.2 percent, defined as pretax profit as a percentage of total revenues.” One of the main reason for this is competition, caused by “online research, a network of competing franchised dealers or compelling new vehicles.”
Read the full article in Tire Business.
Latest posts by Vic Lance (see all)
- SDDC Announces an Open Season for Military Freight Carriers - January 17, 2017
- Full Guide to Getting Your Tennessee Contractors License - January 13, 2017
- The Diversity of Entrepreneurs in the U.S. [Infographic] - January 12, 2017