New Car Dealers Release California Economic Impact Report

SACRAMENTO, Calif., Feb. 23, 2005 -- The California Motor Car Dealers Association (CMCDA) announced that California's franchised new car dealers were a major contributor to California's economy in 2004, generating 20% of all retail sales in the state, and will be an integral part of its economic success in the new millennium, according to the annual State Economic Impact Report.

"Franchised new car dealers have long played an important role in California's economic well being. People rely on California dealers for jobs, purchasing and selling of products and services and for assistance in the community and charitable causes. The new car dealers of California are important business and community leaders, and we are proud of our contributions in support of California's prosperity," said Ed Fitzpatrick, CMCDA's chairman.

Total revenue from goods and services sold at California franchised dealerships was almost $96 billion in 2004 and total full and part time employment stood at 149,523 people. Dealership payrolls were over $9.4 billion, and California dealers spent nearly $12 billion for goods and services from other businesses in the state. Franchised dealers in California paid or collected over $7 billion in federal, state, and local taxes on over $699 billion in taxable sales for 2004.

California franchised dealers sold an estimated 2,004,989 new cars in 2004 for a total dollar amount of $61.6 billion. Total new unit sales were composed of 982,445 (49%) new cars and 1,022,544 (51%) new trucks. In 2004, the average California dealership delivered 1,227 new units.

Note: The information presented in this report was compiled using government sources (both federal and state) and industry sources. In addition, a survey requesting full year 2004 financial, tax, and other information was sent to California dealers.

The above data was obtained in cooperation with the National Automobile Dealers Association (NADA), which produces the 2005 State Economic Impact Report. The NADA, founded in 1917 and based in McLean, VA, represents more than 20,000 franchised new car and truck dealers holding nearly 43,000 separate franchises, domestic and international.

About CMCDA

The California Motor Car Dealers Association (CMCDA) is a statewide trade association that represents the interests of more than 1,400 franchised new car dealer members. For more information, visit CMCDA's Web site: www.cmcda.com.