Government policy can influence everything from vehicle manufacturing and emissions requirements to the technologies automakers bring to market. Tom Maoli, President and CEO of Celebrity Motor Cars, joins us on today’s CBT Live segment to discuss the issues dealers should watch heading into the midterm elections, including affordability, EVs, connected-vehicle security and the growing role of AI in dealership operations.
To start today’s discussion, Maoli highlighted that business at Celebrity Motor Cars has improved considerably after a softer start to the year, with sales and service performing strongly. While limited inventory has supported gross margins, he warned that vehicle affordability remains a prominent challenge for the industry. Maoli notes that higher interest rates, rising insurance costs and vehicle prices are contributing to sticker shock, even among consumers who still want to purchase or lease a new vehicle. He also believes automakers and dealers may need to consider subsidizing monthly payments to help customers manage costs. He also supported keeping inventory levels disciplined, noting that carrying excess vehicles becomes expensive when floor plan interest and insurance costs are high.
Additionally, AI could become a more significant part of dealership operations as retailers move from exploring the technology to implementing it across their businesses. Maoli said Celebrity Motor Cars is already working to identify more effective applications, particularly those that could improve customer service and reduce operating expenses. He expects AI to eventually affect staffing needs, though he didn’t provide a timeline or quantify the potential impact. He also pointed to Amazon’s interest in automotive retail as a development worth watching, given the company’s consumer reach and buying power. For dealers, the takeaway is to assess how technology and new competitors could change customer expectations, retail processes and operating costs rather than treating AI as a standalone trend.
According to Maoli, dealers should also monitor policy decisions and international competition. He highlighted emissions requirements, EV policy, connected-vehicle security and efforts to bring more automotive manufacturing to the United States. Maoli expressed concern about Chinese vehicles entering the U.S. market, citing both competitive pressure and national security considerations, while also suggesting that affordability could influence how policymakers approach lower-cost imports. Although dealers can’t control geopolitical developments or election outcomes, they can follow policy proposals that may affect product availability, consumer demand and dealership operations.
Maoli’s comments reinforce the importance of staying informed while preparing for multiple possible market scenarios.
