Sunday, March 29, 2009

The top 125 - say what?

Peterson Dealerships made the Automotive News list of the top 125 Dealer Groups (#125). They sold 1,105 new vehicles and 1,110 used. They also sold 1,266 fleet units. Revenue was just over one hundred million.

The new / used ratio is a healthy 1-1. Well done. The fleet sales must have a story attached to make it interesting. Fleet is a thin-margin pain in the ass business - unless you have something clever going on. I'm sure the Petersons are good operators and since they made this list, they deserve to be pleased. Again - well done.

However...

2,200 retail units and 100m in revenue might seem like a lot, it just isn't - not for one of the top 125 "groups". These are strong single point numbers, but for one of the top 125 groups, I'm not so sure. How can these numbers earn a spot on the list?

A.) The list is hurting for submissions to be included

B.) Boch is missing, Prime is missing... Other than the tippity top, the list is irrelevant

C.) Things are really bad


The seasonally adjusted retail rate is below ten million new units. So maybe the Peterson's adjusted back to an eighteen million selling rate would throw up 2,000 new units. Still... I don't get it.

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