NADA Declares End of American Dealer Shakeout

Sixty-six new auto dealerships opened in the U.S. during the first quarter of 2012, thus boosting the total to 17,600 stores, according to the National Automobile Dealers Assn.

NADA expects the tally to keep climbing as the auto business stabilizes after a massive shakeout that eliminated 2,470 U.S. dealerships in the past three years.

Some stores were casualties of the recession or the elimination of domestic brands such as Pontiac, Buick and Mercury. Other dealers were dumped when Chrysler and General Motors canceled franchise contracts during bankruptcy.

Dealer consolidation is now tapering off, the NADA opines. It says growth is coming from dealer expansion by thriving carmakers and new outlets to sell brands just arriving in the U.S., such as Fiat and Fisker. Last year revenue at new-vehicle dealerships climbed 12% year over year to $609 billion, and employment rose 5% to 933,500 workers.