The labor turnover rate in the automotive industry is exceptionally high, with recent data indicating a 46% annual turnover rate across the industry, and the estimated total cost of turnover in the automotive retail sector is  $174 million to $348 million annually. 

Key Turnover Statistics in the Automotive Space (2025-2026):

• Dealerships (Sales & Service): The turnover rate for car dealership employees is high, frequently averaging over 46% annually. Sales consultants experience the highest turnover rates, with some reports showing  67% to 126% annually.
• Technicians: The automotive technician turnover rate is approximately 30% annually, with half of all entry-level technicians leaving their positions within two years.
• Manufacturing: Turnover in automotive components manufacturing is estimated at 18% to 26% annually.
• New Hire Turnover: A significant portion of turnover occurs early, with 50% to 58% of new employees quitting within their first 90 days or first year. 

Factors Driving High Automotive Turnover:

• Work-Life Balance: 40% of former dealership staff reported leaving due to work/life balance issues, such as long hours and weekend work.
• Career Growth: A lack of clear career pathing is cited as a top reason for turnover.
• Compensation: Competitive pay, or the lack thereof, remains a top driver for staff leaving, particularly for hourly workers.
• Lack of proper Training: Inadequate training or lack of a structured onboarding process contributes significantly to early turnover. 

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