RDO Equipment - Competitors

RDO Equipment Competition

Now Viewing RDO Equipment's competition in: Automobile Dealerships (primary)

Recent Developments

US Automakers Close More Dealerships - The three major US automakers closed more US dealerships in 2007 as part of their consolidation plans. The number of GM, Ford, and Chrysler dealerships declined about 6 percent compared to 2006, according to Automotive News. GM, Ford, and Chrysler had about 21,000 US dealerships in 1980, but that number fell to 14,199 by the end of 2007.

Truck, SUV Sales Declining - US truck and SUV sales fell 17.4 percent in April 2008 compared to April 2007; passenger auto sales rose 5.2 percent, according to Autodata. Many experts cite rising gas prices and falling consumer confidence as key causes of the decreasing popularity of large vehicles, which have outsold passenger autos in the US for several years. Many experts expect truck and SUV sales to continue declining if fuel prices continue rising in 2008.

Import Single-Line Dealerships More Prevalent - Foreign automakers have more single-line dealerships in the US than US automakers do, according to Automotive News. A record 6,530 US dealerships sold a single import brand as of January 1, 2008. GM, Ford, and Chrysler operated 6,133 brand-exclusive dealerships at the start of 2008, down 395 from January 1, 2007. More than two-thirds of US single import brand dealerships sell a Japanese brand.

Competitive Landscape

Demand for cars is heavily influenced by consumer income and interest rates, because most cars are bought on credit. A dealership's profitability depends largely on the volume of cars and services sold, because most costs are fixed. Large dealerships have advantages in a wider selection of cars and larger advertising budget. Annual revenue per employee ranges from $300,000 at small dealers to $600,000 at large dealers.

Full Industry Overview For Automobile Dealerships

Automobile Dealerships Industry Forecast

from Hoover's/D&B subsidiary First Research

US personal consumption expenditures of new and used autos and other motor vehicles are forecast to grow at an annual compounded rate of 4.1 percent between 2007 and 2012.

Consumer Spending Growth on Autos Steadies

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.