Domestic brands slump in '06 sales per franchise
Arlena Sawyers | Automotive News / April 16, 2007 - 1:00 am
PDF DOCUMENT: U.S. new-car and light-truck sales per franchise, 2006 vs. 2005
Eleven of the Detroit 3's 13 domestic brands sold fewer new vehicles per U.S. franchise last year than in 2005, an Automotive News analysis concludes.
By contrast, the three brands with the highest new-vehicle sales per franchise -- Toyota, Lexus and Honda -- all gained sales in 2006, the study says.
The average Toyota Division outlet sold 1,821 new cars and trucks last year, 208 more than in 2005 and nearly three times as many as the average Ford division outlet.
Vehicle sales per franchise measure a brand's relative value and suggest whether a brand has an appropriate number of sales outlets. Major import brands have fewer franchises than the Detroit 3 but tend to sell more vehicles per franchise.
The only two domestic brands to buck the downward trend last year were Hummer and Saturn. Hummer sold 79 more new vehicles per franchise in 2006 than in 2005. Saturn sold 32.
The biggest loser among brands was Infiniti, which lost 102 new-vehicle sales per franchise last year. Still, the average outlet for Nissan's luxury brand sold 675 new vehicles in 2006 -- eighth among all brands and more than any Detroit 3 brand. Infiniti added one franchise in 2006, while its U.S. sales dropped 11.2 percent.
Overall, the industry sold 761 vehicles per franchise in 2006, down eight units from 2005.
GM, Ford Motor Co. and the Chrysler group all are seeking to trim and consolidate their retail networks. The companies often encourage dealers to sell several brands under one roof.
Bill Perkins, co-owner of Jim Bradley Pontiac-Buick-GMC in Ann Arbor, Mich., says GM's efforts to offer the three brands together at more dealerships is the "right strategy." He says the so-called channel strategy lets him sell a broad range of products, including entry-level cars, SUVs and near-luxury vehicles.
Toyota Division, Lexus and Honda Division led the Automotive News tally of sales per franchise for the seventh straight year. Toyota Division's figures include sales by its youth-oriented Scion subbrand.
Half of the 44 brands in the survey sold more vehicles per franchise in 2006 than in 2005. Twenty-one brands sold fewer. Maybach was unchanged at two sales per outlet.
