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Automobile industry

International Brands Fail to Rescue Dealerships in 2009 Crash

Strategic Insights

— 1 min read

As the automotive industry faced significant challenges in 2009, international brands were expected to provide a lifeline for struggling dealerships. However, according to recent reports, many of these brands, including Hyundai, Toyota, Volkswagen, and Audi, largely passed on the opportunity to add dealerships as GM, Chrysler, and Ford contracted. This led to a decline in international brand franchises, with a total of 10,589 franchises on January 1 of this year, down from 10,590 in 2008. Despite their growing market share, Japanese and Korean brands added only 10 new franchises, a significant drop from previous years.

Key Takeaways:

  • International brands, such as Hyundai, Toyota, Volkswagen, and Audi, failed to add dealerships in 2009, despite their growing market share.
  • The number of international brand franchises declined by 37 from January 1, 2009, to January 1, 2010.
  • Hyundai division dropped four franchises during 2009, despite increasing both sales and market share.
  • Kia, however, added 60 new franchises in 2009, more than any other brand.
  • Subaru and Scion added a combined 27 new franchises during the same period.
  • Three import brands - Suzuki, Saab, and Volvo - dropped a total of 59 franchises in 2009.
  • Bob Rohrman's dealership group, which includes 11 brands at 36 dealerships in Indiana and Illinois, sold 17,372 new retail units in 2009 and grossed $735.2 million.
  • The group was the only one in the top 20 to boost both new retail unit sales and revenue in 2009.
  • A panel of federal judges chose Southern California federal court to consolidate dozens of lawsuits filed against Toyota in the aftermath of the recall of millions of vehicles for sudden unexpected acceleration problems.

Statistics:

  • 10,589 international brand franchises on January 1, 2010, down from 10,590 in 2008.
  • 10 new franchises added by Japanese and Korean brands in 2009, a decline from previous years.
  • 4 franchises dropped by Hyundai division in 2009, despite increasing sales and market share.
  • 60 new franchises added by Kia in 2009, the highest among all brands.
  • 27 new franchises added by Subaru and Scion combined.
  • 59 franchises dropped by Suzuki, Saab, and Volvo in 2009.
  • 17,372 new retail units sold by Bob Rohrman's dealership group in 2009.
  • $735.2 million in revenue for Bob Rohrman's dealership group in 2009.

Sources:

  • American International Automobile Dealers Association (AIADA)
  • Automotive News
  • The New York Times
  • Car Design News
  • USA Today
  • Wall Street Journal

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