Automobile Dealer Industry

Most new cars and light trucks bought in the United States are sold through franchised dealers.  Automobile Dealers are independently owned.  In 2007, automobile dealers generated approximately $693 billion in revenues and employed over 1.1 million people.  The nation’s independent franchised new car dealerships comprise an industry that is fragmented and largely privately held, with private ownership accounting for 92% of the market.  The franchised dealership is a business independent of the auto manufacturer, is often self-financed, and serves as an extension of the manufacturer. 

Franchised auto dealers support the efforts of manufacturers by providing distribution channels that allow for efficient flow of the products of manufacturers’ products to the public.  Franchised auto dealers are the link in the chain between the auto assembly line and the consumer.  This allows automakers to spend their resources efficiently on manufacturing and automobile dealers to spend their capital efficiently on serving the consumer.

Murray Law represents auto manufacturers and dealers as well as other allied businesses in the auto industry.