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. Despite the rise in employment, weekly compensation
for dealership employees has decreased. This trend reflects broader economic pressures and shifts within the automotive retail sector, as dealerships navigate challenges such as high production costs and changing consumer preferences.
Why It's Important?
The increase in employee count suggests that dealerships are expanding operations or maintaining staffing levels to meet demand. However, the decrease in weekly compensation indicates potential cost-cutting measures or economic pressures affecting employee earnings. This situation could impact employee morale and retention, influencing the overall performance and customer service quality at dealerships. The data highlights the complex dynamics within the automotive retail industry, as businesses balance growth with financial constraints.
