3 auto industry developments that will challenge dealers moving forward — Steve Greenfield

Interesting developments have been strategically provoking the way that dealership operations are carried across the entire automotive industry. In order to understand dealers’ anxious concerns and how to better address them, CBT News anchor Jim Fitzpatrick spoke with Steve Greenfield, CEO of Automotive Ventures and host of the CBT’s Future of Automotive, during this year’s NADA Show.

Key takeaways:

1. Greenfield observes that dealers have serious reservations, particularly in the areas of agency models, electrification, and connected cars.

2. Dealers wonder how rapidly OEMs are transitioning away from the agency model and toward a direct channel. What functions will dealers perform, and will the partnership between dealerships and OEMs change?

3. Dealers are uncertain about the timing and location of these infrastructural and facility upgrades because electrification is hanging over the industry.

4. Overall, there are still many unanswered issues about over-the-air upgrades, linked cars, whether customers will return to dealerships, and whether OEMs will share revenue from subscription services with dealers.

5. Greenfield believes that OEMs will not move closer to the agency model. There will be a flood of oversupply on the market because consumers seek instant gratification, thus there will be more EVs than demand. 

“The way we invest today is how we move tomorrow.” —Steve Greenfield

Notable background:

— Automotive Ventures is committed to assisting investors, businesses, and entrepreneurs in the automotive industry. They carry out their work in order to benefit the automotive technology sector, advance the industry, promote investment, and catalyze the next wave of technological advancement.

Click here for more 2023 NADA Show coverage on CBT News.

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