The mid-year numbers are out and there have been some interesting developments for new vehicle franchises, according to the latest Automotive Franchise Activity Report from Urban Science. Here to talk about the latest findings and projections is Mitch Phillips, Global Director of Data at Urban Science.
Mitch explains that prior to 2010, dealerships declined on average of one to two percent year over year, but since then, the levels have remained flat, fluctuating on average only a half of one percent. This includes consolidation efforts. For example, when FCA, or Fiat Chrysler, brought the Jeep, Dodge, and Ram brands under one rooftop.
The sales throughput has also been increasing over this time period of the last ten years. Since 2009, it has gone from an average of mid-600s per dealership up into the 900s that we see today.
When it comes to COVID-19, franchise market sales decreased 20 to sometimes even 40 percent per month during March and April, however, since May, sales have been rebounding quickly. Mitch says that despite these poor numbers, very few dealerships have gone out of business.
As Global Director of Data, Mitch is tasked with managing and advancing data for all solutions including network analysis, dealership operations and consumer engagement. He provides his expertise in support of strategic development, sales, marketing, methodology, training and application development. For more great insight from Mitch Phillips, be sure to watch our entire interview above.
Did you enjoy this interview with Urban Science’s Mitch Phillips? Please share your thoughts, comments, or questions regarding this topic with host Jim Fitzpatrick at jfitzpatrick@cbtnews.com.
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