Joseph Kowitski Jr.’s Post

The automotive industry's consolidation trend: Bigger Dealerships, Bigger Questions Over the past decade, we've witnessed the automotive landscape shift with larger dealership groups acquiring smaller players. The stats are impressive - the top 10 dealership groups now own 8.9% of all dealerships, up from 5.3% in 2011, and their market share has risen by 31% since 2011. 2023 seems to be yet another year of growth in dealership acquisitions, led by industry giants like Lithia Motors. Lithia's aggressive expansion has propelled it to the top spot in sales, overtaking AutoNation. But what does this mean for car buyers and owners? Will they benefit from this consolidation, or could it exacerbate their challenges? On one hand, larger dealerships can streamline services and reduce costs, potentially leading to lower prices and more choices. However, with fewer independent dealerships, there's less competition, raising concerns about prices and customer experience. The data also suggests a correlation between dealership consolidation and new car price trends. While not directly causal, the two appear to develop at similar rates. In a market as unpredictable as the automotive industry, we'll have to wait and see how this trend impacts consumers. #AutomotiveIndustry #CarDealerships #DealerGenie