Imports get their business on the coasts
The Need for More Dealers – Not Less
The myth of “too many dealers” has gone on so long that people believe it’s true, without ever examining the facts. Most dealers would rather have less competition, it’s only natural. Simple math and an examination of the facts prove there are too few dealers, not too many.
Above is a U.S. map from R.L. Polk showing Domestic and Import VIO (vehicles in operation) at 237 Million. This information proves the need for more (not less) GM and Chrysler dealers throughout the country because 150M cars on the road are Domestic Vehicles, nearly 2 out of every 3, but only 87M are imports. Yet with the proposed cutbacks, there will be 9.500 Domestic dealers and 9.900 Import dealers. Obviously Domestics will have almost twice as many cars to serve as Import dealers. In addition to the simple math, the geography is significant too because Domestic sales are throughout the country, heavily concentrated in states with large geographical areas, while Imports get the largest share of their business in 9 dark blue states, 6 on the East Coast and 3 on the West Coast.
Note: In most of the 9 dark blue states there were already 200 more Import dealers than Domestics to start with, and after the cuts, it’s Imports with 2,018 to Domestics 1,348. In addition, the Domestics will be abandoning their dominant position in the dark red states where they get most of their volume. This will create an opportunity for Imports to expand into the empty facilities. Kiplinger says 900 over the next two years. Can GM & Chrysler survive?
