..."During the next two years, roughly 30 percent of the domestic car dealerships in the United States will fold, predicts Rikess, the California consultant.

"The retail auto industry is entering a period of depression," he said.

That fits with the findings of a study issued Wednesday by accounting firm Grant Thornton LLP, which predicted that nearly one in five dealerships could fail this fall and into 2009.

"An increasing number of dealers are simply closing their doors because sales have plummeted, credit has dried up, the overall retail environment is increasingly challenging, and potential investors are sitting on the sidelines," said Grant Thornton partner Paul Melville.

Ford, GM and Chrysler account for more than 85 percent of the decline, and their sales per dealer already were well below the industry average, Melville said.

"Significant consolidation is necessary," he said. "U.S. sales have already declined more than one million units this year."

The world's largest Chevrolet dealer, Bill Heard Enterprises, based in Columbus, Ga., closed all 15 of its dealerships in seven states last week -- including one in Plant City -- laying off 2,700."....