Cars and Drivers
Car Companies Face Rapidly Deteriorating Dealer Financials (GM)(TM)(F)(HMC)
Published:
Last Updated:
For over a year, analysts have said that one of the largest problems car companies face is dealers who go bankrupt. It is actually a double-edged sword. If under-performing franchises fold, it can help other dealers in the network. If large dealers fold, a car company could be left without a sales and service outlet in a big city.
Dealer profits fell t0 $349 per employee last year, according to data from SageWorks.
In 2007, the profit per employee was $4,173. Total revenue per dealer in 2008 was $465,556 down from 2007 when it was $620,572. There is a fairly good chance that average profit per employee could be a negative number this year. And no one is bailing the dealers out.
Douglas A. McIntyre
Take This Retirement Quiz To Get Matched With An Advisor Now (Sponsored)
Are you ready for retirement? Planning for retirement can be overwhelming, that’s why it could be a good idea to speak to a fiduciary financial advisor about your goals today.
Start by taking this retirement quiz right here from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes. Smart Asset is now matching over 50,000 people a month.
Click here now to get started.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
