General News

June 9, 2008

Auto Dealers Facing Bumpy Ride Ahead

North Carolina Dealers Meet to Discuss Trends, Opportunities
RALEIGH, N.C.—North Carolina’s franchised automobile dealers are buckling up for a bumpy ride. In addition to rising gasoline prices and a weak economy, dealerships are also battling increasing overhead and talk in the North Carolina General Assembly of raising automobile taxes. Despite these trends, North Carolina auto dealers remain positive, preferring to see the glass (or gas tank) half full.

“Paying $4 a gallon for gas is nothing compared to the situation we faced in the 1970s, which was not having any gas at all,” recalls Bill Brown, chairman of North Carolina Automobile Dealers Association (NCADA) and president of Brown and Wood, Inc., in Greenville, N.C. “In times like these, it’s important for dealers to come together to discuss these important issues and their potential impact.”

NCADA has been conducting meetings across the state to educate dealers on these and other trends affecting dealerships. During these “Mega-Trends” meetings, NCADA President Robert Glaser is presenting a comprehensive study that identifies seven major trends impacting North Carolina’s automobile dealership industry. Those seven trends are:
• Dealership Consolidation
• Business Climate in N.C. General Assembly
• Vehicle Mix, Price of Gas
• Transportation Funding, Taxes
• Global Warming Issues
• Rising Cost of Overhead
• Customer Credit

During the meetings, Glaser is also outlining steps being taken by the industry and NCADA to protect the 700 new car, truck and RV dealerships in the state.

“North Carolina’s franchised automobile dealers employ over 33,000 North Carolinians and generate more than 23% of the state’s total retail sales,” shares Glaser. “It is critical that our local dealerships remain strong in light of the challenges they are facing.”

Representatives from more than 400 dealerships have participated in the Mega-Trends meetings to date. Many of the attendees recall the slowdown the industry experienced in the 1970s during the gas shortage crisis and again in the 1990s on the heels of a recession.

“I am confident that we will weather this storm just as we have done in the past,” adds Brown. “Automobile dealers have a resilient, entrepreneurial spirit which sees us through tough economic periods. Most dealers agree that although times are challenging, we have been through much worse.”

Founded in 1935, NCADA represents nearly 700 new car, truck and RV dealers in North Carolina. The association provides advocacy, education and support to promote a competitive automotive retail industry in the state.