The automotive industry is changing fast. Covid shutdowns paired with tons of new technology are forcing an evolution -- one which many dealers are not equipped to handle.
There is no denying it. things are bad. It’s estimated that all automakers have lost almost 6.5 billion vehicles as a result of the chip shortage. Photos of parking lots full of mostly built vehicles are circulating around the internet. They are ready to go, except for the chips.
For what seems like forever, electric vehicles have been talked about as “the car of the future.” Technically this is still true, except the future is here, right in front of us.
Salespeople have been making sales outside of an “office” for decades. Travelling salesmen started making the rounds in Europe in the 1920s, proving you can make a sale anywhere. It doesn’t have to happen in your showroom. This could be true for car dealers,too.
We’ve all heard the phrase “get your head out of the clouds,” but, now, the cloud is where everything is! Most online infrastructure and the tech that consumers interact with on a daily basis involve the cloud.
Factory-direct sales may seem like a good shortcut for consumers but, in fact, they only benefit automakers. It is a strategy being used to hurt dealers in the long run and an attempt to wipe them out. Some even predicted dealerships would not exist by 2025… sounds crazy right?
The past year-and-a-half have created a major shift in the automotive industry and how cars are sold. Quite frankly, many processes changed for the better and dealerships have come out the other side much stronger and more efficient.
The microchip shortage is causing issues that are rippling across the automotive industry. As soon as we think we’re out of the woods with Covid-related problems, this happens.
Succession planning isn’t something anyone wants to talk about. It’s hard to face mortality and have uncomfortable conversations with family, but it’s important to have them in order to carry on the business and the family legacy.