It’s been a few weeks since the election, and it seems like we are starting to get some additional information on what the next may hold. That seems like a good place to start. Here to weigh in on today’s episode of Inside Automotive is Ryan Kerrigan, Managing Director of Kerrigan Advisors.
Kerrigan begins by discussing how the election outcome could shape the industry, particularly in terms of tariffs, trade dynamics, and the transition to electric vehicles. He notes that due to the global nature of production and trade, there is no such thing as the “American Car,” which further underscores the complexities of the automotive supply chain.
While EV adoption has been a key topic, Kerrigan is cautious about its rapid growth. Despite the recent investments, EVs have only reached 7% of the market, far below the anticipated 60-80%. He predicts that although EV production will increase in the coming years, widespread adoption will remain elusive without further breakthroughs.
On the buy-sell market, Kerrigan highlights its unexpected resilience amid high interest rates, political uncertainty, and rising construction costs. The year’s first three quarters saw a record 330 buy-sell transactions, signaling a strong market performance. Wealth creation among sellers has led to a surge in exits, particularly as rising facility costs make new builds and renovations less viable. Buyers, once hesitant, are now more decisive, especially for dealerships with strong brands like Toyota and Lexus, willing to pay full premiums for well-positioned businesses.
Nevertheless, Kerrigan notes that the industry’s size and adaptability allow it to absorb new disruptors, such as Carvana, while still thriving in the evolving retail space.
"Despite all of these uncertainties, the buy-sell market has remained incredibly robust. In fact, through the first three quarters of this year, we've seen 330 buy-sell transactions—that's a new record for the industry." – Ryan Kerrigan
