Inside Automotive
Why public dealership groups are returning to the mergers and acquisitions market
Publicly traded dealership groups are starting to return to the mergers and acquisitions market as the post-pandemic economy stabilizes and OEMs ramp up production. But what exactly are buyers looking for, and where are they hoping to purchase storefronts? On this episode of Inside Automotive, host Shyann Malone is joined by Alan Haig, president and founder of buy-sell advisory Haig Partners, and Mike Toth, the firm’s managing director, to give a quarterly update on the state of retail automotive M&A. Watch full segment here.
Top Stories
A new study claims that an electric vehicle lease is more affordable than purchasing or leasing a gas-powered car. Car prices have risen steadily since the COVID pandemic, as the automotive industry has grappled with supply shortages and production disruptions. The average cost of a new vehicle in July was $48,334, $200 higher than in 2022. Read More
The National Highway Traffic Safety Administration (NHTSA) has green lighted a Massachusetts law making car manufacturers share vehicle data with third-party service centers after initially opposing the bill when it passed in 2020. The right to repair law requires automakers to share vehicle data with independent repair shops, with the aim of giving technicians better access to crucial diagnostic data and expanding consumer repair options. Read More
Vietnamese automaker VinFast is in talks with U.S. partners to sell its electric vehicles through franchised dealerships rather than first-party storefronts. Direct sales have become an increasingly prominent topic of discussion in the retail automotive sector. Electric vehicle brands, such as Rivian and Tesla, have opted to forgo traditional franchise partnerships in favor of selling directly to the consumer, with the latter seeing massive success with this strategy. Read More
Tesla continues to create new paying accounts on Elon Musk’s X (formerly Twitter), to the point where paying to be on the social media platform currently costs close to $20,000. Tesla and other publicly traded firms are required to report any “related transaction” that might present a conflict of interest between its executives or board members and any other businesses in which they have interests. For example, Tesla frequently revealed interactions with SpaceX over the joint use of Musk’s plane or the latter’s purchase of Tesla components. Read More
For Dealers
The role of software in EVs: opportunities and challenges
The spotlight in the auto industry has transitioned to an unlikely subject: software. Electric vehicles (EVs), previously dismissed as a niche, are fast becoming mainstream. Central to this transformation is software, acting as the lifeblood and cognitive center of these vehicles. But how does this digital wave affect dealerships and the consumer? Read More
Selling cars despite the current economic uncertainty
Automotive retailers have seen a massive upheaval in recent years. Between the effects of the COVID-19 pandemic, inflationary concerns, higher borrowing costs, and general economic uncertainty, the landscape for dealers has profoundly shifted. Not only has buyer behavior changed, but so have consumer preferences and expectations. It’s all the result of an evolving economic climate. Read More
