Dealership count in '19 up slightly, census finds

After dropping in 2018 for the first time in six years, the number of U.S. dealerships rebounded with a slight increase to end 2019, led by a gain in import-brand standalone stores, Automotive News' annual dealership census found.

But as industry sales slowed last year, sales throughput per franchise fell by 1.1 percent.

The dealership count rose by 39 stores, a 0.2 percent gain, to 18,314 as of Jan. 1, while new-vehicle franchises dipped by 54 to 32,045.

Part of the franchise decline can be attributed General Motors. Its franchise count fell by 87, led by a decline of 35 Chevrolet franchises. GM also shed 52 dealerships last year. In a statement, GM said it has "no plans to reduce the number of franchises or rooftops" and that its figures fluctuate based on factors such as voluntary terminations or new market strategies.

Ford Motor Co. increased its count by 31 dealerships, all on the Ford-brand side. The number of Ford-brand standalone stores also jumped by 69. The rise in Ford exclusives came as some dual Ford-Lincoln stores dropped Lincoln, Ford said.

Lincoln, meanwhile, is encouraging more standalone showrooms that adhere to its Vitrine design theme. Thirteen Vitrine showrooms have opened, with more under construction or planned.

Lincoln's franchise count dropped by 38 in 2019, while standalone stores remained steady at 139. The brand added stores in key luxury markets but also "consolidated over 40 Lincoln dealers," including some who resigned franchises in smaller markets, Lincoln spokeswoman Angie Kozleski said.
Fiat Chrysler Automobiles' domestic store count fell by nine, while its franchise count dropped by 49, led by declines in Fiat and Alfa Romeo. The standalone Jeep store count rose by two to 14 and is expected to increase again in 2020. FCA spokesman Jeff Bennett said the company plans to eventually have about 50 to 60 standalone Jeep stores in the U.S.
Industrywide, exclusive outlets increased by 142 to 12,102. Import-only exclusives grew by 77.

Throughput, or the average new-vehicle sales per franchise, dropped by six vehicles to 527. That came as the overall franchise count slipped 0.2 percent and as industry sales, excluding Tesla and Smart, dipped 1.6 percent. Industry sales, including Tesla, fell 1.2 percent to 17.1 million last year.

The census ranks 41 brands for throughput, a key barometer measuring brand health. The Smart brand fell off the ranking after Mercedes-Benz discontinued Smart sales in the U.S. Eleven brands moved up the throughput ranking, 17 slipped and 13 were unchanged.

The top four brands — Toyota, Honda, Lexus and Nissan — saw throughput declines for the second straight year. Longtime throughput leader Toyota saw its average fall 2.2 percent to 1,681 sales per franchise. Nissan, after its U.S. sales tumbled 8.7 percent in 2019 and its franchise count dropped by eight, saw throughput tumble 8.1 percent to 1,138 sales per franchise.

Subaru, again ranked fifth, was the only brand in the top five to post a throughput increase, up 30 sales per franchise. Subaru gained one franchise last year, and its sales rose 2.9 percent.

Rounding out the top 10 were Mercedes-Benz, BMW, Hyundai, Kia and Ford. Kia, which posted a 5.2 percent gain, moved from 10th to ninth. Ford, the only domestic brand in the top 10, dropped a spot to 10th as throughput dipped 3.9 percent. Its sales were off 3.7 percent in 2019.

The biggest franchise gainer was Genesis, which added 174 franchises as it rebuilt its retail network. Jaguar added four franchises and Land Rover grew by three as the luxury brands continue to add new points. Honda increased franchises by four.

Among decliners, Smart lost its remaining 26 franchises. Nissan and Infiniti each lost franchises, as did Mazda. And Volvo's franchise count fell by 10 to 282 while sales jumped 10 percent in 2019.
Mitsubishi's franchise count slipped by 13. The brand, which has logged seven straight years of sales growth, last year added 36 dealerships but also had 49 dealership terminations, Mitsubishi spokesman Jeremy Barnes said.

In its annual automotive franchise report, retail consulting firm Urban Science, of Detroit, found U.S. new-vehicle dealerships fell by 99 stores to 18,195 at the beginning of 2020.

"I'm not seeing one brand increasing dramatically or decreasing dramatically," said Mitch Phillips, Urban Science's global director of data. "I'm seeing it spread like peanut butter. Some are up, some are down."