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Salesperson Turnover at New-Vehicle Dealerships Declines

19 July 1999

Salesperson Turnover at New-Vehicle Dealerships Declines

    WASHINGTON, July 15 -- The salesperson turnover rate at the
nation's franchised new-vehicle dealerships dropped to 43 percent last year,
according to the National Automobile Dealers Association.
    Four years ago industry turnover rates ran as high as 61 percent, so this
reduction is a welcome change.  Citing the correlation between new-vehicle
sales and turnover rates, NADA chief economist Paul Taylor said, "As long as
new-vehicle sales remain strong, turnover rates will continue to decrease, and
dealership managers and consumers will continue to reap the benefits provided
by knowledgeable, experienced salespeople."
    A disparity in turnover rates occurs when comparing dealerships by brand.
Dealerships selling Asian-brand vehicles experienced a 61 percent turnover
rate, while dealerships selling European vehicles had a 23 percent turnover
rate.  Among domestic brands, General Motors experienced a 32 percent turnover
rate, Ford 38 percent and Chrysler 50 percent.
    Small dealerships -- those selling less than 150 new vehicles per year --
had a turnover rate of 38 percent.  In comparison, large dealerships -- those
selling 400-750 new units per year -- had a 51 percent average turnover rate.

    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.