It’s no secret that . . .
The Cost of Turnover in the Automotive Industry is Huge!
The labor turnover rate in the automotive industry is currently at an exceptionally high level, with recent data indicating a 46% annual turnover rate across the industry, with the estimated total cost of turnover in the automotive retail sector estimated to be $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 rates, with some reports showing a 67% to 126% annual turnover rate.
- 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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