New car sales industry in Utah shows growth between 2010 and 2011

Salt Lake City—The New Car Dealers of Utah is reporting that in 2011, the state’s estimated 141 new-vehicle dealers had total sales of $5.3 billion, or an average of $37.4 million per dealership. In 2010, Utah’s new-vehicle dealers had total sales of $4.5 billion, or an average of $31.6 million per dealership.

Figures were compiled by the National Automobile Dealers Association (NADA) in Washington, D.C. The report also indicated that the $5.3 billion amounted to 13.9 percent of Utah’s total retail sales. In 2010, the $4.5 billion amounted to 13.4 percent of Utah’s total retail sales.

Craig Bickmore, executive director of the New Car Dealers of Utah, said, “New car dealerships play a key role in driving our state’s economy. According to information compiled by NADA, 8,153 people (an average of 58 employees per dealership) were employed by new vehicle dealerships in Utah in 2011 with an average salary of $46,080. In addition, the total annual payroll of new-vehicle dealerships amounted to $374 million, an average of $2.65 million per dealership. Put another way, these dealerships’ payroll amounted to 9.4 percent of the state’s total retail payroll.”  Bickmore noted that the automotive sector demonstrated growth between 2010 and 2011. In 2010, 7,121 people (an average of 51 employees per dealership) were employed by new vehicle dealerships with an average salary of $44,533. This meant that in 2010, the total annual payroll of new–vehicle dealerships amounted to $317 million, an average of $2.25 million per dealership. Dealerships’ payroll in 2010 amounted to 9 percent of the state’s total retail payroll.

Bickmore added that new car dealers generate hundreds of millions of dollars of tax revenue for state and local government through sales, tax revenue, corporate tax revenue and payroll tax revenue.

The New Car Dealers of Utah is a statewide membership-based organization formed in 1923 to promote, protect and advance the general welfare of the new car and truck franchises throughout Utah.

NEWS RELEASE

FOR IMMEDIATE RELEASE: Sept. 18, 2012

FOR INFORMATION: Paige Porter, paigep@uada.com, office (801)484-8845, cell (801)891-7288