Skip to main content
Sister Publication Links
  • Automotive News
  • Rubber News
  • European Rubber Journal
Subscribe
  • Login
  • Register
  • Subscribe
  • Current Issue
  • BEST PLACES TO WORK
  • News
    • MID YEAR REPORT
    • TIRE MAKERS
    • HUMANITARIAN
    • COMMERCIAL TIRE
    • GOVERNMENT & LAW
    • MERGERS & ACQUISITIONS
    • OBITUARIES
    • OPINION
    • SERVICE ZONE
  • ADAS
  • Data
    • DATA STORE
  • Custom
    • SPONSORED CONTENT
  • Events
    • ASK THE EXPERT
    • LIVESTREAMS
    • WEBINARS
    • SEMA LIVESTREAMS
    • RUBBER NEWS EVENTS
  • Resources
    • ADVERTISE
    • AWARDS
    • CLASSIFIEDS
    • DIRECTORY
    • SHOP FLOOR
    • Best Places to Work
    • BALANCING
    • DEMOUNTING
    • SAFETY
    • TIRE REPAIR
    • TPMS
    • TRAINING
    • VEHICLE LIFTING
    • WHEEL TORQUE
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. News
May 23, 2014 02:00 AM

Car dealer employment tops 1M

  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    By Amy Wilson, Crain News Service

    DETROIT (May 23, 2104) — Employment at U.S. new car dealerships topped 1 million in 2013, the first time the industry has exceeded that threshold since 2008, early in the recession, according to the National Automobile Dealers Association (NADA).

    NADA Chief Economist Steven Szakaly forecasts continued growth for the industry in 2014. “The economic recovery is continuing, and we expect a stronger housing market, improving job prospects and continued low interest rates for auto loans to boost sales this year,” Szakaly said.

    Employment of 1 million marked 3 percent gain over 2012, NADA reported in its NADA Data 2014 annual report on dealership sales and financial trends, released this week.

    The average dealership location employed 57 in 2013, up from 55 in 2012, and had an annual payroll of $3 million, up 3 percent. The payroll total for all dealerships was $53.7 billion last year.

    Mr. Szakaly is forecasting light-vehicle sales of 16.4 million in 2014, up from 15.6 million in 2013.

    Dealership profitability 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. NADA released the figure for 2013 in February. The metric is expected to remain unchanged at 2.2 percent this year, Mr. Szakaly said in the report.

    “Fierce price competition — whether from online research, a network of competing franchised dealers or compelling new vehicles — continues to dominate an industry with slim retailing margins,” the economist said.

    Through the first three months of the year, the average pretax profit stood at 2.4 percent.

    Though the total pretax profit margin was flat in 2013, dealerships did make more money on a dollar basis due to rising vehicle sales and higher overall revenues. The average dealership made $923,248 in pretax profit last year, up 10 percent from 2012.

    U.S. dealerships' collective revenue reached $730 billion in 2013, up 9 percent.

    New-vehicle unit sales rose 7 percent, but gross margins on new vehicles continued to decline in 2013, falling to 3.8 percent from 4.2 percent in 2012. Profit per new vehicle retailed fell to $69 last year from $111 in 2012.

    Still, the new-vehicle department made a net profit for the third year in a row, after five straight years of losses, after adding in profits from aftermarket products and finance and insurance that were attributable to new-vehicle sales.

    Used-vehicle unit sales rose 2 percent overall, though retail sales increased more sharply, by 6 percent. Wholesale unit sales fell 3 percent.

    Net profit in the used-vehicle department was positive for the fifth straight year. The profit per used vehicle retailed rose to $254 in 2013 from $194 the previous year.

    Total sales in service, parts and the body shop rose 5 percent. Total service and parts profits increased 7 percent.

    __________________________________________

    This report appeared on autonews.com, the website of Automotive News, a Detroit-based sister publication of Tire Business.

     

     

     

     

    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Tire Business would love to hear from you. Email your letter to Editor Don Detore at [email protected].

    Most Popular
    1
    Pirelli won't bid for WRC tire supply contract
    2
    Canada court rules for Michelin in tire trademark case
    3
    Grupo Tersa's Valle becomes first Mexican to earn Humanitarian award
    4
    Atlantic Tire & Service founder Blackman dies at 69
    5
    TIA elects 6 new board members
    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Newsletter Center

    Staying current is easy with Tire Business delivered straight to your inbox.

    SUBSCRIBE TODAY

    Subscribe to Tire Business

    SUBSCRIBE
    Connect with Us
    • Facebook
    • LinkedIn
    • Twitter
    • Instagram
    • RSS

    Our Mission

    Tire Business is an award-winning publication dedicated to providing the latest news, data and insights into the tire and automotive service industries.

    Reader Services
    • Staff
    • About Us
    • Site Map
    • Industry Sites
    • Order Reprints
    • Customer Service: 877-320-1716
    Partner Sites
    • Rubber News
    • European Rubber Journal
    • Automotive News
    • Plastics News
    • Urethanes Technology
    RESOURCES
    • Advertise
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Media Guide
    • Editorial Calendar
    • Classified Rates
    • Digital Edition
    • Careers
    • Ad Choices
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • BEST PLACES TO WORK
    • News
      • MID YEAR REPORT
      • TIRE MAKERS
      • HUMANITARIAN
      • COMMERCIAL TIRE
      • GOVERNMENT & LAW
      • MERGERS & ACQUISITIONS
      • OBITUARIES
      • OPINION
      • SERVICE ZONE
    • ADAS
    • Data
      • DATA STORE
    • Custom
      • SPONSORED CONTENT
    • Events
      • ASK THE EXPERT
      • LIVESTREAMS
      • WEBINARS
      • SEMA LIVESTREAMS
      • RUBBER NEWS EVENTS
    • Resources
      • ADVERTISE
      • AWARDS
        • Best Places to Work
      • CLASSIFIEDS
      • DIRECTORY
      • SHOP FLOOR
        • BALANCING
        • DEMOUNTING
        • SAFETY
        • TIRE REPAIR
        • TPMS
        • TRAINING
        • VEHICLE LIFTING
        • WHEEL TORQUE
    • DIGITAL EDITION