Are car dealerships on the verge of extinction?

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Already in competition with the Internet, where you can configure as you wish and buy a vehicle directly without going through a dealership, auto sales professionals now find themselves in difficulty by the crisis affecting the sector of activity.

What if there were no more dealerships to sell cars? Still unthinkable a few years ago, the crisis affecting the automotive world is not helping industry dealerships to sell cars, already in competition with the Internet. A reduction in the number of jobs could be effective from the start of 2022.

Since 2 years, car sales are falling. Affected first by the Covid-19 crisis then by a shortage of semiconductors. A drastic reduction in jobs could be decided in the concessions for the first quarter of the year 2022.

300,000 jobs are at risk in concessions

According to the National Automobile Professions Council (CNPA), on 500,000 people employed in the sector, 300,000 could be unemployed, or 60% of the workforce. More than one in two dealers could lose his job next year.

The CNPA asked for government help to improve support for partial unemployment. In France, only the electric car sector is recording more sales than before. A situation that is likely to continue next year.

Bonuses are only granted upon delivery of the vehicle

Another shortfall for concessions, sales bonuses. These are sometimes only assigned only upon delivery of a purchased vehicle. However, with the shortage of semiconductor parts, deliveries are increasingly behind schedule.

Some builders even deliver their models without certain equipment or with less functionality so as not to make the buyer wait. Otherwise, it happens that the delays can sometimes reach more than a year!

In this same perspective, the presentation dates new models have also been repulsed. For good reason, it is sometimes impossible to market them without certain key pieces.

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