As dealerships close around the country we can see much of the same here in Oregon. Since 2001 there has been a decline in the number of dealerships, but this has to be the low point in years. When times were good the biggest dealers made the most money but with the slow economy today they have the most to lose. Due to the Chrysler bankruptcy there are about 789 Chrysler stores in America that plan to close out of the current 3200 today. In Oregon we have already seen a few Chrysler stores close and unfortunately there are many more to come. GM will more than likely follow along with additional franchised stores being forced to pull the plug here in Oregon as they downsize and consolidate.
The majority of the stores to close have been new car dealers. With the decline in new car sales it makes it really hard for new car dealers to compete in this environment.
There are a fair share of used auto dealers closing there doors too. This climate may not be good for the opening of new franchised stores, but there seems to be new used car dealers opening. For the last year we have had a negative loss of five dealers a month but today it has leveled off.
This article was written by José Pinomesa who is the President of the Oregon Independent Automobile Dealers Association in Salem and the owner of José Mesa Auto Wholesale, LLC in Portland.
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