ORLANDO, Fla. ― Though the sweeping dealership closures of 2008 and 2009 are a thing of the past, front-line consolidation will be an issue for lenders to contend with for the next three to five years.
That was the message from a panel of industry execs at the Consumer Bankers Association conference here yesterday.
Dealership consolidation will likely take a few different forms. In some cases, dealerships that barely survived the credit crisis might be looking for an exit. In other situations, there may be franchise dealerships looking to expand the brands they offer.
I haven’t seen too much in the way of consolidation as yet, though some dealer groups have made public their intentions to increase M&A activity heading into 2012.
Just curious on your thoughts about the potential for consolidation, and what effects it might have on lending strategy.
