Where Do Car Dealerships Go When They
As many as 700 new-car dealerships will close in
2008. Last year, 430 dealerships shut down. The
financial crisis is partly to blame, as new-car sales
have dropped to a 25-year low.
But there are other forces at work. The number of
car dealerships has been shrinking more or less
constantly since 1990. In fact, car dealerships have
been disappearing steadily since 1947, when their
numbers peaked at around 47,000 nationwide. By the
end of 2008, the National Automobile Dealers
Association estimates that just 20,000 will remain.
Consolidation is the real driving force. In 1947,
most car dealers carried just one brand - Packard or
Studebaker, for example. Now, the average dealership
carries two. So the number of car dealerships isn't
likely to rebound with the economy, as consolidation
continues in good times and bad.
Where do new-car dealerships go when they die?
About 17 percent of the 590 new-car dealerships
that closed so far this year have reopened as used-
That still leaves hundreds of abandoned
showrooms with flat-open lots, well served by utilities
and along major arterial streets (Think State Street
and Redwood Road).
Who can you think of a better use for them?
New Passenger Vehicle and Light Truck
Sales by Dealer - Third Quarter 2008
Units Sold Qtr.3.08|
CHRYSLER JEEP INC.||754|
|2||LARRY H. MILLER
CHRYSLER JEEP DODGE||541|
|4||LARRY H. MILLER TOYOTA
|7||KEN GARFF HONDA
|10||KEN GARFF WEST VALLEY
CHRYSLER JEEP DODGE||407|
|11||KEN GARFF OGDEN,
|12||STOCKTON TO MALONE
|14||DOUG SMITH AUTOPLEX,
|15||LARRY H. MILLER
|16||STEPHEN WADE AUTO
|18||TIM DAHLE NISSAN OF
|22||JERRY SEINER BUICK
Source: Utah State Tax Commission, December
Who are selling the fewest New Cars?
New Passenger Vehicle and Light Truck
Sales by Dealer - Third Quarter 2008 - 60 or Fewer
- 1ST CHOICE AUTO, INC.
- AUTO MART LLC
- BARBER BROTHERS FORD, INC.
- BARBER BROTHERS MITSUBISHI
- BLAINE JENSEN & SONS RV CENTER
- BOUNTIFUL LINCOLN MERCURY
- BRADSHAW CHEVROLET COMPANY, INC.
- BRENT BROWN FORD LINCOLN MERCURY, LLC
- BRYSON SALES AND SERVICE, INC.
- C&R MOTORS
- CLASSIC MOTORS INC.
- CLEARWATER LEASING
- CLIFFORD MOTORS
- CRANDALL FORD MERCURY
- CROSSROADS, INC.
- CRUMPS PONTIAC CADILLAC GMC
- CUTRUBUS SUZUKI OF LAYTON
- DAVE STRONG'S PORSCHE
- DAVIS AUTO CENTER
- DAVIS CHRYSLER DODGE, INC.
- DOLLAR RENT A CAR
- DOWNTOWN DODGE INC
- DROUBAY CHEVROLET GEO OLDS PONTIAC
- ELLIS-ROBINSON MOTORS LLC
- ENSIGN AUTO, LLC
- ENTERPRISE RENT A CAR COMPANY OF UTAH
- EXECUTIVE CAR SALES, INC.
- FINDLAY HYUNDAI
- FIRMAGE BMW OF PLEASANT GROVE
- FIRST CHOICE CARS
- FORSHEE AUTO SALES,INC.
- FREEDOM FORD MERCURY INC
- FREEWAY OLDSMOBILE CADILLAC MAZDA
- HARVEY AUTOMOTIVE,LLC
- HEINZ R.V.
- HIGH COUNTRY AUTO CENTER, INC.
- HIGHLAND GOLF
- INTERMOUNTAIN, INC.
- INTERNATION ARMORING CORP
- JORGENSEN CHEVROLET, PONTIAC, BUICK,
- JORGENSEN FORD MERCURY, INC.
- JORGENSEN'S INC
- K.S. AUTO WORKS, INC.
- KEN GARFF MITSUBISHI
- KEN GARFF VOLVO SOUTHTOWNE
- LABRUM CHEVROLET PONTIAC & BUICK, INC.
- LAKE CITY
- LAND ROVER AMERICAN FORK, INC.
- LAND ROVER CENTERVILLE, INC.
- LARRY H. MILLER LEXUS OF LINDON
- LARRY H. MILLER SUPER FORD
- LARRY H. MILLER USED CAR SUPERMARKET
- LAYTON HILLS DODGE
- LEGACY MITSUBISHI SUZUKI
- LEGACY SUBARU MITSUBISHI
- LESS STRESS AUTO, INC
- LEWIS TRANSPORTATION SALES
- LONESTAR AUTO SALES, LLC
- LUNT MOTOR COMPANY
- M.C. AUTOBODY & PAINT
- MARK MILLER PONTIAC, INC.
- MAW EQUIPMENT, INC.
- MCFARLAND FORD MERCURY
- MIKE HALE CHEVROLET, INC.
- MIKE RIDDLE MITSUBISHI
- MOAB CHEVROLET
- MOAB FORD
- MOBILITY SOLUTIONS, INC.
- MOTOR SPORTSLAND,INC
- MOUNTAIN WEST TRUCK CENTER
- MURDOCK CHEVROLET BUICK, LLC
- NATIONAL CAR RENTAL
- NORTHSTAR TRAILER
- PAINTER MOTOR COMPANY, INC
- PAINTER SALES & LEASING, INC.
- PAINTER'S SUN COUNTRY CHRYSLER
- PARK CITY CHRYSLER JEEP DODGE, LLC
- PARKWAY MOTORS
- PEOPLE'S CHOICE CARS
- PRICE AUTO GROUP, LLC
- PRICE AUTO SALES & SERVICE
- QUALITY CHEVROLET
- QUALITY DODGE
- QUALITY FORD
- RASMUSSEN EQUIPMENT CO.
- REDWOOD DISCOUNT AUTO OUTLET
- RENEGADE SPORTS
- ROBERT H. HINCKLEY, INC.
- ROCKY MOUNTAIN CHRYSLER PLYMOUTH
- RUSS CARRIGAN MOTORS, INC.
- S & M FINANCIAL, LLC
- SAHARA MOTORS, INC.
- SATURN OF OREM
- SATURN OF RIVERDALE
- SATURN OF ST. GEORGE
- SHOWALTER MOTOR COMPANY, INC.
- SMITH AUTO COMPANY
- SPENCER AUTO SALES
- STEADMAN'S RECREATION, INC.
- STEVE HARRIS IMPORTS, LTD.
- SUNLAND SALES & LEASING
- TAB'S TRUCKS
- TAYLOR AUTO SALES
- TEREX UTILITIES INC
- THE CAR PLACE INC.
- TISCHNER FORD SALES, INC.
- TRIPLE L AUTO SALES AND LEASING
- TRI-STATE MOTORS
- WARNER TRUCK CENTER
- WASATCH AUTO BROKERS
- WASATCH FRONT
- WASHBURN MOTORS AUTO SALES, INC.
- WEESE MOTORS
- WRIGHT FORD
Source: Utah State Tax Commission, December
Utah Auto Dealerships
Detroit talks about reducing brands and
Sales Taxes from New Car Dealers are a major
souce of most cities revenues.
- Who is Strong?
- Who is at Risk?
Utah Economic Snapshot
Global Landscape Forecast - 2010
|Utah Economic Snapshot
Utah Labor Market Indicators - October
- Employment Growth: -0.2%
- Employment Increase: 1,264.5
- Unemployment Rate:
- October 3.5%
- September 3.5%
- August 3.7%
- July 3.5%
- June 3.3%
- May 3.2%
- April 3.1%
- March 3.3%
- February 3.0%
- January 2008 3.0%
- December 2007 2.9%
- November2007 2.8%
Who are gaining jobs? October -
- Education and Health + 5,800 (+4.1%)
- Trade, Trans, & Utilities + 3,500 (+1.4%)
- Government + 3,300 (+1.5%)
- Leisure & Hospitality + 1,800 (+1.6%)
- Natural Resources + 900 (+7.7%)
- Prof & Business + 700 (+0.5%)
Who are losing jobs? - October
- Construction - 13,400 (-12.8%)
- Manufacturing - 1,800 (-1.4%)
- Financial Activities -1,200 (-1.6%)
- Information - 600 (-2.1%)
- Other Services - 300 (-0.9%)
Source: Utah Dept of Workforce Services,
|Global Landscape Forecast 2020
|Globalization largely irreversible, likely to
become less Westernized.||Whether
globalization will pull in lagging economies; degree to
which Asian countries set new "rules of the
|World economy substantially
larger.||Extent of gaps between "haves" and
"have-nots"; backsliding by fragile democracies;
managing or containing financial crises.|
number of global firms facilitate spread of new
technologies. ||Extent to which connectivity
|Rise of Asia and advent of possible new
economic middle-weights.||Whether rise of
China/India occurs smoothly.|
|Aging populations in established
powers.||Ability of EU and Japan to adapt
work forces, welfare systems, and integrate migrant
populations; whether EU becomes a
|Energy supplies "in the ground" sufficient
to meet global demand.||Political instability
in producer countries; supply disruptions.|
|Growing power of nonstate
actors.||Willingness and ability of states
and international institutions to accommodate these
|Political Islam remains a potent
force||Impact of religiosity on unity of states
and potential for conflict; growth of jihadist
|Improved WMD capabilities of some
states.||More or fewer nuclear powers;
ability of terrorists to acquire biological, chemical,
radiological, or nuclear weapons.|
|Arc of instability spanning Middle East,
Asia, Africa.||Precipitating events leading to
overthrow of regimes.|
|Great power conflict escalating into total
war unlikely.||Ability to manage flashpoints
and competition for resources.|
|Environmental and ethical issues even
more to the fore.||Extent to which new
technologies create or resolve ethical
|US will remain single most powerful actor
militarily.||Whether other countries will more
openly challenge Washington; whether US loses S&T
Source: Office of the Director of National
Intelligence · Washington DC, December 2008.
- International Business Confidence
- Global business confidence slumped again to a
new record low last week. Responses to questions
regarding sales strength, hiring, inventory and
equipment investment, and expectations regarding
the outlook six months hence have never been as
weak. Pessimism is pervasive across the entire
globe, with the only distinction being that Asian
businesses are somewhat less nervous than
elsewhere. The global economy is suffering a severe
recession according to the business confidence
- Productivity and Costs
- There was a small upward revision to productivity
in the third quarter and large downward revisions to
unit labor costs in both the second and third quarters.
Weaker unit labor costs can be traced to much weaker
growth in labor compensation than previously
reported. The results suggest that businesses have
been more proactive in their response to weakening
growth, cutting labor quickly in response to weaker
demand as they attempt to preserve profitability.
- Factory Orders (M3)
- Factory orders declined 5.1% in October, nearly
matching Moody's Economy.com expectations for a
5.2% drop. The decline followed a 3.1% drop in
September and was the third decline in a row. The
decline in durable goods orders was revised lower to
show a 6.9% decline and nondurables orders fell
3.4%. Shipments were down 3.2%, including another
downward revision to previously-published durable
goods shipments. Both unfilled orders and
inventories fell 0.6% over the month.
- Construction Spending (C30)
- Construction spending for October came in at
$1.073 billion, a 1.2% decline from the revised
September total of $1.086 billion, and down by 4.6%
compared with one year ago. The decline was in
private residential and nonresidential construction
spending and was not fully offset by a moderate
increase in public construction spending. The decline
is about the same as expectations and highlights the
continuing tightness in credit and the decline in
developers' confidence as the recession in the U.S.
- Semiconductor Billings
- Global semiconductor sales fell 2.1% in October
to $22.5 billion on a three-month moving average
basis. This growth is considerably weaker than typical
seasonal trends. Sales for the first ten months of
2008 were 2.6% higher than last year, with all gains
coming from sales to the Asia-Pacific region. If not for
falling memory chip prices, annual growth would be
- Major Job Cuts
- The number of announced job cuts surged in
November to 181,671, up from 112,884 in October.
Half of the announced cuts were in financial services.
Year to date, cuts exceed one million, of which
220,506 have been in the financial services.
- Jobless Claims
- Initial claims for unemployment insurance
benefits decreased by 21,000 to 509,000 for the week
ending November 29. This was well below
expectations, though the drop may be due to volatility
associated with the Thanksgiving holiday. That said,
claims remain very elevated and suggest a
weakening labor market.
- Monster Employment Index
- The Monster Employment Index shed 7 points in
November, extending last month's sharp contraction
in online recruitment advertising. The index fell 22%
from a year ago in November, accelerating slightly
from October's 20% year-ago rate of decline. The
decline was broad-based geographically and among
industries; only one of the 20 industries tracked
recorded an increase in job availability between
October and November. The more rapid decline in the
index foreshadows another poor employment report
- MBA Mortgage Applications Survey
- In the week ending November 28, the MBA
composite market index spiked, leaping 112.1% to
close the week at 857.7. The refinance index tripled
over last week. It rose to 3,802.8, up 203.3% for the
week. The purchase index 'only' increased 38% to
361.1. Both the market and refinance indices closed
above year-ago levels, propelled by a 50-basis point
fall in the FRM contract rate.
- Chain Store Sales
- Consumers cut back severely in November
despite decent Black Friday spending. Chain store
sales fell 2.7% for the month according to the ICSC,
worse than expected despite a strong performance by
Wal-Mart. Excluding Wal-Mart, sales tumbled 7.7%.
Gasoline prices became a drag on sales for the
month, undermining sales at warehouse clubs. The
few bright spots were discounters who sell food.
- Agricultural Prices
- The November preliminary all-farm products index
of prices received by farmers decreased 7.9% from
October. The crop index dropped 9.5% while livestock
prices declined 1.6% from last month. The overall
index is now slightly below its level of a year ago.
Certainly, seasonal harvest pressure contributed to
lower prices for grains and oilseeds. Soybeans, corn,
lettuce and hogs fetched lower prices while tomatoes,
potatoes, cucumbers and cantaloupe prices moved
higher. The food commodities index fell 6% in the
month and is now 5% lower than a year ago, an
indication that the steady decline in food commodities
at the farm gate will lead to reduced consumer food
price inflation in coming months. The index of prices
paid by farmers for the means of production fell 4%
over the month.
- Oil and Gas Inventories
- Crude oil inventories fell by 400,000 barrels during
the week ending November 28, according to the
Energy Information Administration, falling short of
expectations of a 1 million barrel build. Gasoline
inventories fell by 1.6 million barrels, more than an
expected 900,000 barrel decline. Distillate supplies
fell by 1.7 million barrels, surpassing expectations of
a 300,000 barrel decline. Refinery operating capacity
fell sharply to 84.3% from 86.2%. Total domestic
petroleum demand rose, building on last week's
increase. This report points to higher oil prices.
- Natural Gas Storage Report
- Working gas in underground storage decreased
by 64 billion cubic feet during the week ending
November 28. The consensus estimate was for a
draw of 69 billion cubic feet.
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