AAA Auto Club SouthTampa, FL, United States

Auto Dealership Closings Benefit Repair Shops - Nearly 20 percent of US car dealerships could close in 2009, according to Grant Thornton, LLP. In early 2008, the firm predicted that more than 2,700 dealerships would need to close to maintain sales-per-dealer at the 2007 level. Now, however, as increased operational costs and the credit crisis continue to take their toll, Grant Thornton estimates that 3,800 dealerships will close. As auto dealerships and their associated maintenance shops shutter, independent auto repair shops could benefit by serving their displaced customers.

California Proposes Taxing Auto Repair - California's governor has called a special session of the state legislature to hammer out a plan to correct the state's $11.2 billion budget deficit. Of particular concern to the vehicle repair industry is a proposal to begin charging sales tax on auto repairs, including for labor on collision repairs. The proposed measure would raise the state's sales tax across the board from 5 to 6.5 percent for all existing taxed items, and broaden the scope of the tax to include auto repair and other services like appliance and furniture repair and veterinary services.

Collision Repair Market Growing - Sales in the US collision repair industry grew 5 percent in 2007 from 2006 to total $41.5 billion, according to the Automotive Aftermarket Industry Association (AAIA). Factors contributing to the growth include more registered vehicles on the road and miles driven, and road congestion, plus the higher cost of collision repair per vehicle.