For every worker employed at new-car auto dealerships, there are another 1.2 spin-off jobs in the U.S. economy, according to a just released study from the Center for Automotive Research (CAR), a respected Ann Arbor-based organization. Among the key findings, auto dealerships directly provided and supported more than 2.2 million private-sector jobs in the United States totaling $144 billion in employee compensation in 2014.
The CAR study, Contribution of New-Car Dealerships to the Economies of All 50 States and the United States, highlights the economic impact of U.S. new-car dealership from employment data, taxes collected or generated by dealerships to taxes paid by employees at the state and national level.
“From the employment opportunities created to taxes paid and generated that support local governments, people do not realize how much new-car auto dealerships bring to their communities throughout the country,” said Debbie Menk, project lead, and the Assistant Director, Economic Development Strategies at CAR.
The report, which was prepared for the National Automobile Dealers Association, also includes a state-by state analysis of direct employment at new-car auto dealerships as well as spin-off jobs and taxes paid by dealerships and their employees to support state and federal budgets.