Dealership Network - Existing Model Going Away?

[DrewAment]

A couple of articles here. Yes, they are in Europe. The manufactures are thinking longer term. Could this come to the U.S., and how might it affect us? I have made the statement before -- "If you are a family/generational and/or small dealership or group, might be time to rethink."

We have already seen some of the writing on the wall with EV and new model releases in the past 2-3 years, preorders on the OEM websites, etc. We are a resilient bunch of business owners, but what are we thinking longer term?

Stellantis undergoes 'unprecedented' shake-up of its European dealership network

The automaker wants to transition a network estimated to exceed 15,000 franchise points to a so-called "retailer model." The move gives Stellantis more control over how its vehicles are sold.

www.autonews.com

https://www.autoevolution.com/news/stellantis-will-adapt-dealership-network-to-work-as-if-it-offered-direct-sales-175421.html

 

[Alex Snyder]

I've been waiting for someone else to jump in here before posting. But I'm glad you struck this conversation up, Drew.

Ford tried to do this a long time ago. They underestimated how hard retail is. If every manufacturer went in on this together, I think they could pull it off. They'd have to shift the way cars are sold, and the consumer wouldn't like the transformation process.

The other tough part are the mega groups that are continuing to grow faster and faster. If the economy gets worse, they're going to buy more. Those groups are going to be tough to slice at the knees.

As for EVs, I still struggle to see how our current electrical grid is going to support them. I am so lost as to how we can finally achieve energy independence (giving us what could have been world peace) and throw all of it away in less than 1 year

 

[DrewAment]

Ya, hard to believe no one else is chiming in... The industry seems to think differently. Another Article link below. Yes, it is not US specific, but a good look at what the auto OEMs are thinking:

Source: https://www.autonews.com/sales/auto-industry-leaders-see-major-shift-selling-cars

In its annual Global Automotive Executive Survey released last week, KPMG found that 78 percent of the leaders who participated think most new-vehicle purchases will be conducted online by 2030.

Almost half of the executives (46 percent) think 60 percent or more of all new-vehicle sales worldwide will be by automakers directly to consumers in their home markets by 2030.

 

[Jeff Kershner]

How many times since has the OEM implemented a process for the dealership that made much sense, yet they are going to sell direct to the consumer?

 

[Jeff Kershner]

KPMG found that 78 percent of the leaders who participated think most new-vehicle purchases will be conducted online by 2030.

78% in 8/9 years? I don't see it happening.

 

[Jim K]

I've done a little research on this recently. Europe seems to be the testing ground for what might eventually work in North America. There are different legal and regulatory hurdles in NA and consumer behavior is a little different than in Europe. Here's a recent piece on what the selling model(s) look like in Europe: https://europe.autonews.com/guest-columnist/agency-model-coming-why-good-news-dealers