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Coronavirus Dealer Relief - TrueCar just cut our rates by half for April. Who's next?

Dan Sayer

Refresher
Dec 4, 2009
130
110
43
Lincoln, NE
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Dan
@Alexander Lau are you implying that we have to take that deal? Of the roughly 60 relationships we have with vendors currently, none are in-contract. I would also argue that by continuing to stay on with a vendor, we are agreeing to the original terms of the contract so it is a gift for them to halve their revenue. Your meme is in poor taste and timing. My opinion.
 
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Jeff Kershner

Founder
May 1, 2005
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A message from Brian Krzanich - CDK Global Announces April Discounts to NA Retail Customers

To our customers and partners:

I don’t think any of us could have planned for the business environment we’re currently experiencing. At every level of CDK, we have spent time talking with you, discussing options, and understanding these unprecedented times.

I want to make sure you know that we’re all in this together. It looks like it may be difficult for a while. Your business and ours have to maintain balance and secure the future while managing through today’s uncertainty. For the CDK team, our North Star is truly the sustained health and success of our automotive dealer network. As such, today we are announcing some significant changes to our billing for the month of April that will help us all get through the COVID-19 crisis.

For April, we will reduce our subscription fees to the following:
  • All Layered Applications will be reduced by 100 percent! YES THAT MEANS FREE! This includes products like Elead CRM, all Service products, Connected Store and more. If you don’t currently use some of these products, but would like them installed, we can help. We are conducting limited installs, and we believe we can save you quite a bit of money. New solution purchases are not a requirement to receive this offer on the products you currently use.
  • All DMS and DMS-related products will be reduced by 25 percent! This includes required products like Document Management, Digital Contracting and more.
These benefits require no action on your part, though there are some basic qualifying terms listed below. Your April bill will automatically be adjusted.
Additionally, there are solutions you may not currently be using that can provide you with much needed support while remote working has increased and we’re all practicing social distancing. You may want to consider taking advantage of the following solutions at no cost for the first two months:
  • Connected Store
  • Service Department solutions
  • Call Center for inbound service-calls
  • Customer remote DMS access
We will continuously monitor the situation and talk with you, our partners as we look beyond April.

We know that you and your employees are being impacted by the COVID -19 crisis. I wanted to express my commitment to you, your employees, and just as importantly, to all CDK employees and stakeholders. Effective April 1, my salary and cash bonuses for 2020 will be reduced to $1. I want to do this as an expression of solidarity, and a commitment to this industry, as well as to the employees of our dealers and CDK. Together, we will get through this.

I don’t think any of us could have ever imagined that this is where we would be and what we would be doing, but what I am witnessing is remarkable. We are learning to think differently about how we support one another, our businesses, and our local communities. While these times may seem bleak, I know these clouds will lift, and together we will emerge stronger and better, having trusted each other and joined forces to overcome what we face today.
We are here for you now, tomorrow, and each day that follows.

Stay Well,
Brian Krzanich
President and Chief Executive Officer
CDK Global, Inc.
 
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Alexander Lau

Sr. Refresher
Feb 11, 2015
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@Alexander Lau are you implying that we have to take that deal? Of the roughly 60 relationships we have with vendors currently, none are in-contract. I would also argue that by continuing to stay on with a vendor, we are agreeing to the original terms of the contract so it is a gift for them to halve their revenue. Your meme is in poor taste and timing. My opinion.
I think you might be misinterpreting this meme. I should have included what I had put on the original LinkedIn post. Let's face it, the meme image format garners a lot more eyeballs than text every does.

It's a good thing that most #autodealers pay month-to-month for their 3rd party, digital #marketing services.

BTW, if you think I am happy that the tri-state (PA, OH and WV) non-essential shutdown effects dealerships, you'd be wrong. Out of the 13 rooftops that I support as a consultant / contractor, 12 of them shut down their sales floor and the 13th is coming any hour. 10 out of 13 have informed me that the retainer they've been paying cannot be paid until this is over (who the hell knows when that will be). That's close to a $10K loss for me coming soon. So....!?

Out of the 13, four of them are getting burned by long-term (actually, non-marketing based) contracts that are in place. That is the entire point of this.
 

joe.pistell

Uncle Joe
Apr 7, 2009
4,002
1,527
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New York
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Joe
CARS 3/23 update:
(1) Cars.com and DealerRater products will automatically be discounted 50% for April and 30% for May and June.
(2) New Tools to help you sell, Screen-To-Screen.
We’ve launched a collection of new, NO-COST virtual merchandising and digital retail solutions including badging for Home Delivery & Virtual Appointments, plus chat tools and video templates to drive traffic and conversions to you now.​

Visit the link below to get more details on the new no cost tools, and read the letter from Alex Vetter, CEO. Please reach out to your account executive to get your free tools dialed in.
https://growwithcars.com/cars-cares/
 
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Dan Sayer

Refresher
Dec 4, 2009
130
110
43
Lincoln, NE
First Name
Dan
I think you might be misinterpreting this meme. I should have included what I had put on the original LinkedIn post. Let's face it, the meme image format garners a lot more eyeballs than text every does.

It's a good thing that most hashtag#autodealers pay month-to-month for their 3rd party, digital hashtag#marketing services.

You're right @Alexander Lau, you should have included the original post. Otherwise it looks like a meme that offers nothing to the conversation other than negativity. Thanks for the context.
 
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Qvale Auto Group Study - Watch Video

Dan Sayer

Refresher
Dec 4, 2009
130
110
43
Lincoln, NE
First Name
Dan
Curious if anyone has heard from their OEM as to whether or not they will be given a price break during this time? Noticed COX's statement included a line, "As for our valued OEM partners, Cox Automotive will work with you to determine how to distribute the funds through respective programs." We have 10 DDC sites through Ford/Lincoln, Mazda, and CDJR. I've not seen communication from FordDirect, Mazda/Shift, or FCA/Internet Brands regarding if they'll pass through the site fee savings to the dealer. I realize that FD, Shift, and Internet Brands retain a portion of our fee to DDC so am curious what discount it'll come to. Every penny helps right now as our Sales departments in Missouri had to close last night.
 

Dan Sayer

Refresher
Dec 4, 2009
130
110
43
Lincoln, NE
First Name
Dan
From FordDirect "We are working with Cox to ensure this relief program is applied to all FordDirect Ford and Lincoln DDC website customers. It is our intent to pass on the direct discounts we receive from Cox Automotive. We are continuing to work with our other FordDirect partners to determine if similar opportunities exist on behalf of our Dealers. More details and defined communications will be forthcoming"
 

Alexander Lau

Sr. Refresher
Feb 11, 2015
2,279
672
113
Mars, PA
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Alex
Curious if anyone has heard from their OEM as to whether or not they will be given a price break during this time? Noticed COX's statement included a line, "As for our valued OEM partners, Cox Automotive will work with you to determine how to distribute the funds through respective programs." We have 10 DDC sites through Ford/Lincoln, Mazda, and CDJR. I've not seen communication from FordDirect, Mazda/Shift, or FCA/Internet Brands regarding if they'll pass through the site fee savings to the dealer. I realize that FD, Shift, and Internet Brands retain a portion of our fee to DDC so am curious what discount it'll come to. Every penny helps right now as our Sales departments in Missouri had to close last night.
Are you 100% positive those funds are still going to be there in the near future? I'd be asking myself and Cox that question right now. Obviously, impossible to predict, but still. I'd ping them pretty harshly if I'm a dealer group.
 
Qvale Auto Group Study - Watch Video

Dan Sayer

Refresher
Dec 4, 2009
130
110
43
Lincoln, NE
First Name
Dan
Are you 100% positive those funds are still going to be there in the near future? I'd be asking myself and Cox that question right now. Obviously, impossible to predict, but still. I'd ping them pretty harshly if I'm a dealer group.
@Alexander Lau when you say "near future" do you mean if this virus stretches into May (June invoice)?