Auto Retail Industry Strong, Resilient in 2001, NADA Data Shows

Annual Publication Provides Detailed Statistics on Franchised Auto Dealers

MCLEAN, Va., May 8 -- The nation's franchised new-car and -light truck dealers weathered a struggling economy and September's terrorist attacks to sell a near-record 17.12 million new vehicles in 2001, at a total dollar volume of $690 billion, according to NADA Data, a comprehensive annual analysis compiled by the National Automobile Dealers Association (NADA). The report was published in the May issue of NADA's AutoExec magazine and is available online at http://www.nada.org/nadadata .

The introduction of major incentive programs after September 11 paved the way for an unexpectedly strong fourth-quarter performance and a record level of October sales. The year's strong finish propelled sales to the second highest total in history and an unparalleled string of six straight years with annual sales of over 15 million vehicles.

"Considering the extraordinary challenges dealers faced in 2001, it was truly a remarkable year for our industry," said NADA Chief Economist Paul Taylor. "The momentum is carrying over to this year, which will likely see sales topping 16 million."

Highlights from NADA Data include:

* For the first time, light trucks outsold cars, rising to 50.8 percent (8.7 million units) of light vehicle sales.

* The average retail selling price of a new vehicle increased 3.6 percent in 2001 to $25,800.

* Dealers added 15,600 employees to their payrolls, bringing total dealership employment to approximately 1.13 million and the total payroll to $48 billion.

* The consolidation trend for franchised dealerships picked up pace in 2001, with the net dealership count dropping by 350 -- the largest decline since 1993.

* Franchised new car dealers sold 13.3 million used vehicles at an average price of $13,900.

* Auctions were the source for a record 35 percent of used vehicle inventory for dealers, as they matched used cars offered to customer needs.

The National Automobile Dealers Association represents more than 19,500 franchised new-car and -truck dealers holding nearly 40,000 separate franchises, domestic and import.