What's Happening?
According to the National Automobile Dealers Association (NADA), the average number of employees at U.S. franchised new-vehicle dealerships increased to 65 by the end of June 2025, up from 64 in 2024 and 63 in 2023. Despite this increase in employee count,
weekly compensation for workers at these dealerships has fallen. This trend occurs amidst broader industry challenges, including high production costs and intense competition in the electric vehicle market.
Why It's Important?
The rise in employee count coupled with a decrease in weekly compensation at franchised dealerships highlights potential financial pressures within the automotive retail sector. As dealerships expand their workforce, they may be facing challenges in maintaining competitive wages, which could impact employee morale and retention. This situation is compounded by the broader economic pressures facing the automotive industry, such as the shift towards electric vehicles and the associated production costs. Dealerships may need to reassess their compensation strategies to attract and retain skilled workers in a competitive market.
