• Report
  • Aug 25th 2011 at 10:01AM
  • 4
For the first time in a decade, the number of new car dealerships in the United States has risen. Mind you, it wasn't a large increase, but the 66 additional dealerships represent a 0.4 percent increase that brings the U.S. total to 17,725. That's an encouraging economic sign considering we haven't seen any growth in ten years.

According to Detroit-based retail consulting firm Urban Science, that growth is occurring in and around metropolitan areas, which an 0.7 percent increase in the number of new car dealerships. Conversely, however, rural areas fell by 0.5 percent. Still, the overall picture is healthier for U.S. dealerships, with automakers reporting their dealers averaging more sales per lot compared to the year prior, and an increase in overall dealer profitability.

This growth, however minor it may appear, is a strong indicator that the industry is stabilizing after taking a beating the last few years. In 2008, the U.S. had 20,000 dealers, which may sound like a lot, but it's a far cry from the 47,000 dealers in the country at the end of World War II. We probably don't need to return to 47,000 and we probably don't even need to climb back to 20,000, but it's good to see growth in an industry that's faced a few years in decline.

I'm reporting this comment as:

Reported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.

    • 1 Second Ago
      • 4 Years Ago
      I hate to be a negative nelly but the number of U.S. car dealerships rise and the picture is of a Lambo Dealer? It couldn't be a GM or Ford Dealer in that picture. (granted those brands have been decreasing dealers but still)
        Jeff Glucker
        • 4 Years Ago
        Well, to be fair - that is a new dealership that opened this year ... so it counts.
        • 4 Years Ago
        The opening of a Lamborghini dealer could mean a rise in demand, which could mean that there are more folks making good money.
      • 4 Years Ago
      The only new dealership I've seen (coming soon) is the new Fisker & McLaren store in Palo Alto. Well, that and the new Tesla stores in Menlo Park and Santana Row. Hmm, I see a pattern...
    Share This Photo X