Rally Cars: Dealership Stocks Rise as Firms Pivot from New Vehicles

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The U.S. car market could be facing a downturn. But you wouldn’t know it from the rally in stock prices for publicly traded dealership groups.

With showroom sales slowing, dealerships are pivoting to more reliable income generators, such as profits produced by their used-car operations and service departments, to offset declining margins in the new-car business, say analysts and dealers.

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US car makers are creating their own downward spiral. GM is completely lost, Ford is making a huge mistake with their sedan division and Chrysler isn’t American.

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