Dealership Consolidation in a Changing Market
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Authors
King, Elizabeth J.
Issue Date
2011
Type
Thesis
Language
en_US
Keywords
Alternative Title
Abstract
Dealership Consolidation has been occurring basically since 1927 when the
number of dealerships in the United States peaked at 53,125. This number has decreased
to 17,700 dealerships as of 2011. This does not imply however that the auto industry has
been decreasing over the last eighty-four years. On the contrary, more automakers have
entered the market and sales for the most part have increased. It is a common occurrence
that firms within a new industry grow quite rapidly. Once the industry reaches a certain·
level of maturity, the number of firms will than decrease to a more productively efficient
size. This is demonstrated through historical data of the automotive industry. This paper
examines this decline in the number of dealerships and why responding to the market is
·good for the players involved. The changes in the market will be examined, as well as
events that affected the automotive industry. There will be an emphasis on domestic
automakers (Chrysler, General Motors, and Ford) with an in-depth look at one of
Chrysler's projects. The consolidation of the general dealer network will be discussed, as
well as the consolidation of multiple lines into one dealership, and the consolidation of
many dealerships into large dealer groups. The automotive manufacturers, remaining
dealers and consumers all benefit from these consolidations.
Description
iv, 25 p.
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License
U.S. copyright laws protect this material. Commercial use or distribution of this material is not permitted without prior written permission of the copyright holder.