In today’s episode of Inside Automotive, we speak with George Karolis, President of the Presidio Group, about the 2024 Dealer Sentiment Survey, which underscores the major shifts in dealer attitudes. From the evolving performance of brands like Subaru to the future of the M&A market, the survey offers crucial insights for dealerships navigating a dynamic automotive landscape.
During the conversation, Karolis offers a detailed analysis of their latest 2024 Dealer Sentiment Survey, shedding light on significant changes in dealer perspectives.
The survey, which tracks the pulse of over 3,000 dealerships, discovered major market shifts. One noteworthy change is the rise of Subaru, which is now ranked as the third most preferred brand among dealers, up from sixth place in the previous survey. Karolis attributes this shift to Subaru’s expanding market presence, improved relationships with dealers, and strong brand reputation.
Meanwhile, traditional leaders such as Toyota and Lexus continue to hold the top positions in the rankings.
In contrast, brands like Nissan, Chrysler, and Infiniti are facing challenges, with many dealers expressing concerns about profitability and brand appeal. Interestingly, there has been a shift in sentiment regarding Nissan, as dealers are becoming more optimistic following potential mergers and recent enhancements in their vehicle offerings.
Additionally, the survey highlighted a shift in dealers’ economic outlooks, with nearly three-quarters of respondents expressing a positive view of the election’s impact on their businesses. This starkly contrasts with the mid-year survey, in which nearly half of dealers had been concerned about election-related uncertainties.
Furthermore, the M&A market is showing strong signs of activity, with Presidio reporting an even larger pipeline of clients and increasing interest in acquisitions. Approximately two-thirds of dealers indicated interest in buying, with confidence that profitability would remain stable or increase. This optimism is attributed to more normalized business conditions post-COVID and lessons learned around efficiency and profitability, particularly in fixed operations and finance. Karolis anticipates another active year in M&A, driven by an aging dealer body, succession challenges, and strong market activity.
"A majority, I think it's 80 plus percent of dealers, say that fixed operations is the... [key to profitability]" - George Karolis.
