Consolidation seen in the UK motor retail industry is being mirrored by franchised networks in the USA.

Figures from the National Automobile Dealers Association (NADA) in America show the number of franchised outlets is in decline.

In 2006 the USA had 21,200 dealerships, but that reduced to 20,770 in 2007 - a drop of 2%.

NADA also said that at the end of 2007 the average dealer was losing money on new car sales and F&I.

Used vehicle sales and aftersales remain the most profitable area of the business.