U'S' Market Size

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U.S. Market Size Trends in the U.S. Automobile
Industry

• By Dr. Timothy G. Nash
• Provost and COO
• Northwood University
• Michigan Campus

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The World is Flat

• Global Economic freedom is at an all time high
• Global Competition has increased the demand for
  skilled human capital and natural resources (thus
  wages and costs are higher).
• Communication costs less and is better than ever
• Business barriers to entry of all kinds are
  declining in todays global economy
• It is more difficult to monitor the flow of
  people, goods and services, information, etc.
• Source The World is Flat by Thomas L. Friedman

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Key Economic Data
Source 2005 CIA World Fact Book
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Employment by Sector
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A More Educated America
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Education Pays Huge Lifetime Dividends
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Major expenses for the average dealership in 2005

• Payroll 2,400,000
• Advertising 360,225
• Rent and equivalent 318,000
• Source NADA Industry Analysis Division

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Average Dealership Profile
Source NADA Industry Analysis Division
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Expectations for Dealership Profits
Percent of dealers expecting profit to
Source NADA Industry Analysis Division
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New Car Dealerships As of January 1
Source NADA Industry Analysis Division
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New Vehicle Sales By Month
Source NADA Industry Analysis Division
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New Vehicle Sales and Market Share By Manufacturer
Source NADA Industry Analysis Division
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Dealerships total service and parts sales
In billions of dollars
Source NADA Industry Analysis Division
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Estimated number of new-car dealership employees
in 2005 Source NADA
Industry Analysis Division Total of all
Dealers Average number per Dealership Total
U.S. 1,138,000 53 Average Weekly
Earnings Per Dealership Employee 870
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2005 Annual Payroll of New Car Dealerships By
State Source NADA
Industry Analysis Division
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Vehicles in Operation - Scrappage by Year
Source The Polk Co.
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Comerica New Vehicle Affordability Index
Source Comerica Bank (compiled from Commerce
Department and Federal Reserve data With
Possible Rebates
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• Wired Dealerships in 2005
• 98 of all U.S. Automobile Dealerships have web
  pages and use the internet to influence
  dealership traffic and/or sales.
• Source Wards Automotive

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Motor Vehicle Sales in China
Source NADA Industry Analysis Division
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Details of U.S. Automotive Trade(All totals in
billions of dollars)
Source U.S. International Trade Commission