Via the AFR:
The massive stimulus and relief packages to help businesses hibernate during the coronavirus shutdown are doing little to protect the $55 billion car dealership industry, with many expected to collapse within months.
The car dealership sector is a behemoth. Until COVID-19 hit, it directly employed 55,000 workers including 4446 apprentices, paid $5 billion a year in wages, $2 billion in tax and collected $1.6 billion in duties.
But the economics of dealerships – high turnover but margins of less than 1 per cent – precludes most of them from the various state and federal government assistance packages even though they are in dire need of them.
Too bad. They aren’t special in any way and are entitled to existing support.
Besides, if they’re running on 1% margins then there are clearly too many of them.
Let ’em burn and consolidate to make for a more stable and profitable sector in the future.
