Excessive Number Of American Car Dealerships Compared To Market Share Heart Of Dealership Problem

While some continue to draw in absurd political conspiracy tales about why some American car dealership numbers are being trimmed, obvious explanations continue to be ignored. The real fact of that matter is that Toyota with just 1,400 American dealerships sells nearly as many vehicles as GM does with as many 7,600 still open active dealerships. And Toyota easily outsells either Chrysler with 3,800 dealerships or Ford with 3,000 dealerships. Even the steadily climbing Hyundai sales are very strong despite just 695 active dealerships, far less than any American brand.

The fact of the matter is that all three major American auto brands all have dealer networks far in excess for their actual market share, only splitting a shrinking market to the point that many dealers can just barely make a profit and remain open, scavenging each other for sales in a declining market. This is the obvious fact here. Yet the politically absurd only continue to blame the Obama White House for axing dealers or for political favoritism somehow influencing which dealers remain open, for what is a marketing reality or a responsibility of the Federal bankruptcy court to decide.

Sometimes when an explanation is so obvious, some will yet still continue to look for an absurd explanation, especially when it matches their political ideology, rather than a genuine search for the truth or facts.

Way too many dealers compared to their actual market share is the obvious answer here why American auto brands GM and Chrysler are paring down their dealer networks. No other explanation really fits. And even small, but rising star Hyundai has proven two vital facts here, by great improvements in vehicle quality as well as a small but steadily rising number of dealers that are well in proportion to the company's actual market share, it is able to establish itself as a profitable corporation that is very well managed. Some American auto companies such as GM and Chrysler simply allowed some management issues to get far out of hand until it created a number of business crisis issues, bringing both firms to the point of bankruptcy.