2013 sales per US franchise fell for Volkswagen and Infiniti

Article by Anita Panait, on March 15, 2014

The sales per franchise in United States of Volkswagen and Infiniti dropped in 2013, no thanks to the addition of more franchises as well as a stumble in their brand sales in the country. The VW brand saw its sales drop 7 percent in 2013, resulting to 10-percent slide in sales per franchise. Infiniti, meanwhile, logged a 3-percent fall in sales last year, leading to a 5-percent slump in sales per franchise.

Both VW and Infiniti increased their franchise count by 4 percent. Overall new-vehicle sales in the US surged 8 percent in 2013, while the number of new-vehicle franchises gained less than 1 percent.

"When your throughput is higher, your profits are higher, your dealers are happier," Tom Libby, an auto analyst with IHS Automotive, said. "They're spending money on the facility and they're hiring people so your whole retail network is stronger." In 2013, some brands added a few franchises while others let attrition take its course, although changes in the franchise count generally were modest.

The overall number of new-vehicle dealerships and franchises was flat, according to the exclusive annual dealership census gathered by the Automotive News Data Center. As of Jan. 1, 2014, the number of new light-vehicle dealerships in the US rose 0.6 percent from a year ago to 17,875.  The number of franchises, meanwhile, rose just 0.3 percent to 31,464.

While a franchise refers to an agreement giving a dealer the right to sell a certain brand of new vehicles, a dealership is the building wherein the brand or brands are sold. Infiniti could replicate the move made by its Nissan brand sibling in the US. Nissan cut the number of its US franchises by 1 percent to 1,061 in 2013 while sales leaped 11 percent, boosting sales per franchise by 11 percent to 1,064. [source: automotive news - sub. required]

Topics: vw, infiniti, sales

If you liked the article, share on:

Comments

Recommended

It seems like a never-ending battle between the 2017 Honda Civic Type R and the VW Golf GTI Clubsport S when it comes to owning the Nürburging record. This story...
by - April 25, 2017
Another day, another record. Is the new Dodge Challenger SRT Demon the fastest car to date? According to some sources, the Dodge Challenger SRT Demon had just beaten the Tesla...
by - April 24, 2017
Following in the footsteps of the McLaren 570S, 540C and 570GT is the newest addition to the McLaren Sports Series -- the roofless 570S Spider. McLaren 570S was rolled out...
by - April 24, 2017
The British automaker Lotus is noted for releasing low production, limited editions of its sports car lineage. Now the Hethel-based automobile manufacturer is back at it again with its latest...
by - April 24, 2017
Earlier this week, the revamped 2018 Mercedes-Benz S-Class was revealed ahead of the 2017 Shanghai Auto Show. As expected, Mercedes Benz’s flagship model is now offered in several variants including...
by - April 24, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries