U.S. New Car Dealers Face Tough 2006

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The auto business has changed over the past four years, will the US dealers recover.

The United States new car dealers have many issues to resolve in 2006. The factory has taken the margin out of the business by offering big incentives and employee deals. The number of dealers going out of business in 2006 will hit an all time high many analysts predict.

"Dealers must go on the offence," states Mark Fracalossi CEO of AMT Media LLC, a Denver based Consulting and Media Firm. "I have been involved with the auto business for almost 30 years and margins were better years ago than they are today," he added.

Fracalossi sites the Big Box Theory, "Dealers today will sell a $50,000 vehicle for a $100 Profit, at these margins volume must be increased ten times to recieve the average profit of only ten years ago, this is what the Big Box retailers do to each other and eventually take all the profit out of many of their products just to create a customer. The days of opening up the doors and making a profit are over, dealers must do many things right to achieve success."

The auto market in the USA is changing and the consumer will be the benefactor.

"We have been working with our dealers to go on the offence and become the leader in their market, we work hand and hand to make a plan that works in their world," Fracalossi said. "We always look for the advantage each individual dealer has and expand upon that and create both a short term plan and long term goals. Dealers must think and act like big business today and we just give them the tools to help succeed."

AMT Media LLC, is one of the world’s premier media consulting firms, with expertise in television and film production, event management, sales and management training, advertising, management consulting and public relations serving all types of business.

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Cliff Emerson
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