THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Friday, September 16, 1994 TAG: 9409150575
SECTION: BUSINESS PAGE: D2 EDITION: FINAL
TYPE: Digest
SOURCE: (Staff)
LENGTH: Short : 26 lines
The conclusion of a special National Automobile Dealers Association task force said that profit opportunities in the new-vehicle department of the typical franchised new-car dealership have now narrowed to the point where they are in danger of doing irreparable harm to franchised new-car dealers everywhere. The report was based on a thorough review of profit margins available on the most popular models offered by the nation's six largest automobile manufacturers and importers. The task force found that franchised dealers cannot be faulted for failing to cut costs, noting that the average cost to sell a vehicle rose from $942 in 1982 to $1,458 in 1993. Measured in constant dollars, that means the average cost to retail a new vehicle today is only $47 more than in 1982. by CNB