Two-Thirds Big Three Dealers Need To Close, Says Analyst and Ex-GM Adviser.

The number of auto dealers selling American cars is shrinking, but not nearly fast enough, a top industry analyst and former General Motors Corp. adviser said Friday.

About two-thirds of the more than 15,000 dealers who sell Detroit-made cars and trucks need to get out of the business in order to create a healthy dealer body that can compete with Toyota and Honda, said Stephen Girsky, speaking at an auto industry roundtable hosted by J.D. Power and Associates in conjunction with the National Automobile Dealers Association's annual convention.

The domestic dealer network is shrinking by about 3 to 4 percent a year. And while that's been painful for dealers, the market remains oversaturated.


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