P&A Providers & Administrators
MenuMENU
SearchSEARCH

New Car Dealerships Increase in U.S.

August 25, 2011
3 min to read


The number of new car dealers in the U.S. rose slightly in the first half of 2011, as the auto industry expanded in metropolitan areas, according to a report released Wednesday by Detroit-based Urban Science.


The increase — amounting to just 0.4 percent, with the addition of 66 dealers for a total of 17,725 across the U.S. — is the first reported uptick in a decade, the global retail consulting firm said. The increase represents the end of a series of precipitous declines in dealers in recent years after the bankruptcies of two U.S. automakers and the shedding of numerous brands, according to The Detroit News.

Ad Loading...


The firm said the number of metropolitan-area dealers increased by 0.7 percent, while dealerships in rural areas fell by 0.5 percent. About 13,500 of the dealers are in metropolitan or urban areas, with 4,200 in rural areas.


"The small but unusual bump in the number of dealerships can be attributed to market corrections as the automakers rearrange stores following a couple tumultuous years of network consolidation and dealership bankruptcies," said John Frith, vice president of retail channel solutions at Urban Science.


The dealer network in Metro Detroit was flat for the first half of 2011: 229 dealers, down one from Jan. 1.


The report, which covers Detroit's Big Three and all foreign automakers, also reported an increase in average sales per dealer, suggesting dealers are in financially stronger positions than they were at the close of 2010.


Average sales at dealerships have risen to 711 per dealership, an increase from 656 vehicle sales per dealership in December 2010.

Ad Loading...


Automakers have reported that a higher percentage of their dealers are profitable.


While the number of dealers went up, the number of franchises — the brands that a dealership carries — had decreased by 729 as of July 1, bringing that total to 29,360. Most dealers — 57 percent — have just one franchise at a dealership.


Urban Science said the decline in franchises is due largely to the wind-down of Ford Motor Co.'s Mercury brand at Lincoln dealerships.


This dip in franchises represents a major stabilization of the industry, following the closure of 4,897 franchises since 2009.


Paul Taylor, chief economist for the National Automobile Dealers Association, said dealers are seeing better financial performance — and noted new Fiat and Mahindra dealers will be selling cars soon.

Ad Loading...


"We will see a world in which there are more brands from a greater array of countries for sale in the United States," Taylor said. "New brands will be more important as they set up dealerships with new light vehicles from manufacturers in China, India, Italy and elsewhere who were not recent suppliers a year ago."


The U.S. had 20,000 dealers as of 2008, and has shed about 11 percent since then. Much of that reduction came as General Motors and Chrysler used their 2009 bankruptcy restructurings to shed hundreds of dealers.


Some automakers are trying to re-establish some dealerships in urban areas in places like California. High land prices and the shift of people to suburbs have resulted in some major metro areas having fewer dealers than automakers would like.


More Industry

Photo of white Ford F-10 pickup parked on a dirtl road next to a body of water and with a fishing boat hitched to it
Industryby Hannah MitchellJune 16, 2026

Texas vs. California

The state known for its pickups penchant threatens to overtake the traditional center of U.S. car culture as it grows sales of new vehicles and pays more for them.

Read More →
Toyota Sienna car driving down road.
Industryby Lauren LawrenceJune 16, 2026

Hybrids Record Highest Annual Mileage

A new study shows that conventional hybrids are the most heavily driven vehicles on the road, while plug-in hybrids are the least-driven power train.

Read More →
Graphic of used vehicle volume index
Industryby StaffJune 16, 2026

Black Book: Weekly Market Update

Last week's wholesale vehicle auction activity reflected seasonal patterns as buyers stayed choosy about selections, analysts reported.

Read More →
Ad Loading...
Photo of the back of an electric Mercedes
Industryby Hannah MitchellJune 10, 2026

Auto Prices Ride May Moderation

Flat ATPs and asking prices clocked in below long-term averages for the month, though some segments saw significant price gains, reported Cox Automotive.

Read More →
Photo of white Toyota car in front of dealership
Industryby Hannah MitchellJune 9, 2026

Auto Retail Families Get Out While the Getting’s Good

Kerrigan Advisors’ first-quarter Blue Sky Report shows a sharp uptick in buy-sell deals as more retailers take advantage of handsome values while seeking to escape market risk.

Read More →
daytime, front of car dealership Lexus of Vancouver
Industryby Lauren LawrenceJune 3, 2026

Holman Opens New Lexus Dealership

Located in the heart of Clark County, Lexus of Vancouver features a multi-level showroom, more than 30 service bays, an indoor drive for drop-off and pick-up and a fleet of courtesy vehicles.

Read More →
Ad Loading...
Subwoofer in trunk of car.
Industryby Lauren LawrenceMay 26, 2026

Ownership Priorities are Shifting

A new survey shows that in the U.S. vehicle quality for generation Z is largely defined by advanced safety features, intuitive technology and premium sound systems.

Read More →
Man's hand holding gas pump in fuel tank of white car
Industryby Hannah MitchellMay 26, 2026

Pump Price Jump Calculated

ISeeCars.com examined fuel costs for different power trains, finding which ones have experienced the biggest hits since the war in Iran commenced.

Read More →
Graphic showing previous week's truck and SUV segment prices
Industryby StaffMay 20, 2026

Black Book: Weekly Market Update

Wholesale values fell last week despite the spring season still being in the traditional full-gear mode, analysts said.

Read More →
Ad Loading...
Photo of dealership sign with Toyota logo
Industryby Lauren LawrenceMay 19, 2026

Arkansas Auto Group Acquires First Indiana Rooftop

Performance Brokerage Services represented both the buyer and seller in the sale of Carver Toyota of Columbus by Carlock Automotive Group.

Read More →