General Motors announced plans earlier this year that it would close about 40% of its total 6,200 auto dealers by 2010. Similarly Chrysler has closed down about a third of the 3,200 dealerships that it had at the beginning of the year.
ADP, which is primarily known as a payroll processor, offers services for auto dealers. The ADP Dealer Management System (DMS) allows auto dealers to manage business activities such as communication between dealer sites, car financing, insurance, management of sales, accounting, and inventory management
The success of ADP’s dealer services business is highly correlated with vehicle sales and how well dealer sites are performing. Within ADP’s content on our platform, you can see how the company’s stock is impacted by a reduction in the number of US ADP Auto Dealer Sites.
