Car Dealer Closings Are Creating a $7 Billion Parts and Service Sales Boom for the 2009 Independent (Non-Dealer) Aftermarket; This Is Part of the Greatest Restructuring of the Automotive Aftermarket Competitive Landscape Since World War II

"With at least 2,000 dealers closing in 2009, over $5 billion in dealer bay parts and service sales will be abandoned along with more than $2 billion in product sales through dealer parts departments and dealer redistribution of OE parts to independent service outlets," said Jim Lang, President of Lang Marketing. Lang Marketing estimates most of the more than $7 billion in 2009 parts and service sales abandoned by closing dealers (at user-price) will be captured by independent (non-dealer) service outlets and auto parts stores, as well as independent (non-OE) auto parts distributors.

32,000 Fewer Dealer Bays This Year

Car dealer closings in 2009 will shutter over 32,000 dealer service bays. Lang Marketing expects 2,040 car dealers will close in 2009. The dealer casualty count could climb much higher under severe circumstances. Up to 51,000 dealer bays could be closed if the dealer network suffers a traumatic shock, such as the bankruptcy or dramatic downsizing of a U.S. automaker. The exact number of dealer bays closing in 2009 will depend on how many new car dealers convert to used car outlets with service bays.

Dealers Will Abandon Over $5 Billion in Parts Sales and $2 Billion in Service Work

"Counting all dealer parts and service sales (bays, counter sales, and redistribution volume), 2,040 dealer closings in 2009 will potentially shift $5 billion in parts volume, primarily replacement parts, at user-price toward the independent aftermarket plus another $2 billion in service billings," said Lang. Replacement parts are parts necessary for vehicle operation, as opposed to accessories and other discretionary automotive product purchases.

Unprecedented Aftermarket Parts and Service Shift

The 2009 closing of at least 2,000 car dealers in the U.S., mostly domestic auto outlets, will provide the independent (non-dealer) automotive aftermarket with an unprecedented $7 billion annual growth opportunity in parts and service volume. "This is part of the greatest restructuring of the automotive aftermarket competitive landscape since World War II, which will extend over a number of years," said Lang.

The automotive aftermarket consists of all products and services used in the repair, maintenance, and modification of cars and light trucks after they leave the factory.