A recent study by Grant Thornton LLP asserts thatas many as 3,800
U.S. car dealerships may close in the coming year because of falling sales andtighter credit, Reuters reports.
U.S. light vehicle sales are predicted to fall to the 13.7-million-unit range in2009, with any recovery in demand not expected until 2010.
Some 18 percent of the total number of U.S. cardealerships would need to close to maintain sales per dealer at last year'slevel of about 750 units, the study says.
Thornton says other sources of revenue for dealers such as used car sales and financingprofits are also falling.
The Detroit 3 are being hit hardest. All three U.S.automakers are shrinking their U.S. dealer network. Analysts say this is necessary for the solvency of remainingstores, according to the Reuters report.