Is Toyota headed in the right direction? The auto industry’s franchise dealers certainly think so based on a just-released survey by Kerrigan Advisors.
During this time of unprecedented upheaval in the automotive marketplace, do the industry’s dealers think Toyota is headed in the right direction? Based on the results of the 2021 Kerrigan Dealer Survey, the answer to that question is a resounding, “Yes!”
Toyota earned the highest marks in the survey, with 55% of its respondents — all franchise auto dealers — expecting the value of the brand’s dealerships to increase in value. Lexus, at 43%, was the top-ranked luxury franchise and 6th overall.
“As the industry enters a period of evolution over the next decade, dealers are confident in Toyota’s future franchise value due to its continued emphasis on a supportive partnership with its dealer network,” concluded Kerrigan Advisors.
The firm’s third annual dealer survey was designed to gauge dealer sentiment about the future value of their businesses, as well as their perspective on franchise valuations and acquisitions. The results of the survey found that dealers’ optimism increased significantly regarding valuation as compared to 2020. Of the 825 responses, an impressive 61% of dealers expect the value of their business to increase over the next 12 months, nearly double last year’s results, while only 6% of dealers expect a decline.
More on this survey can be found here.