Tesla Again Revamps Its Retail Strategy

March 11, 2019 — Tesla’s strategy of closing its retail network apparently is a work in progress. After shutting down 10% of its retail locations the last couple of weeks, Tesla announced on its blog last night that it has stopped the process and will evaluate another 20% of its sales locations in coming months.

Some of the locations in high-visible areas that have been closed will reopen with a smaller staff.

The automaker will also raise prices on its vehicles by 3% to accommodate the change to its retail strategy. The $35,000 version of the Model 3 will remain unchanged.

Tesla set off fireworks nearly two weeks ago when it announced it was closing most of its nearly 300 global retail locations as a cost-cutting move to enable it to reduce vehicle prices by 6% along with bringing the long-awaited $35,000 Model 3 to market.

As part of the shift in retail strategy, Tesla also announced it was moving to an online sales model. That part of the strategy doesn’t seem to be changing. According to last night’s blog, Tesla is keeping the online sales model, which means potential customers visiting a retail location will be shown how to purchase a Tesla online via their phone.

Last year, 78% of all Model 3 orders were placed online, rather than in a store, and 82% of customers bought their Model 3 without ever having taken a test drive.

The return policy of 1,000 miles or seven days will continue.

Cars.com Sale Likely Close, Here’s a Rundown of Possible Buyers

Cars.com Sale Likely Close, Here’s a Rundown of Possible Buyers

March 10, 2019 — An announcement regarding who Cars.com’s new owner will be could be made as early as this week. The company is an attractive play for numerous players — both from a strategic and an investment perspective. Cars announced in January the board had voted at the end of September to retain J.P.…

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Prime Motor Group Acquires Northeast Dealer Group

Prime Motor Group Acquires Northeast Dealer Group

February 20, 2019 — The Prime Automotive Group added six dealerships last week when it acquired the Marubeni America Corporation’s Auto Gallery in Norwood, MA. The fast-growing Prime, backed by GPB Capital, now has 68 dealerships with revenues approaching $3.5 billion. The transaction is the third large dealership buy-sell of the year and continues the… Continue Reading

Don’t Like GM’s Plant Closures? Blame the Threat of Activist Investors

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February 6, 2019 — This week, General Motors began the difficult task of laying off more than 4,000 salaried employees as part of a massive restructuring this year that includes the idling of five North American plants, eliminating vehicles and an overall workforce reduction of 14,700 employees. The moves are designed to save the automaker… Continue Reading

Flurry of M&A Deals in Auto Retail Tech Kicks Off 2019

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Three Acquisitions in 10 Months for Digital Air Strike

January 17, 2019 — Digital Air Strike will announce two acquisitions this week bringing its total to three in the last 10 months. The company is acquiring Target Media Partners Interactive (TMPi), a lead generation ad tech firm, and Libra Systems, a financing, and leasing software company. With the two additions, Digital Air Strike now… Continue Reading

Auto Retail’s Industry’s Next Disruptor?

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Launch of Pivet Solution Indicates Bigger Mobility Play by Cox

January 13, 2019 — As part of its transformation into becoming a leading player in automotive mobility, Cox Automotive’s Mobility Group launched its new Pivet brand Sunday at a media event in Detroit prior to today’s opening of the North American International Auto Show. Pivet aims to build a network of service and maintenance hubs…

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Fair to Go Global with SoftBank Investment

December 20, 2018 — Fueled by a $385 million Series B investment led by SoftBank, vehicle subscription platform Fair is going global. After officially launching in August 2017, Fair is now in 26 U.S. markets with nearly 52,000 vehicles from 3,200 dealerships available on its mobile app. More than 20,000 consumers have used the platform… Continue Reading

Vendor M&A at Record Levels

Vendor M&A at Record Levels

November 13, 2018 —  A flurry of 26 deals since the beginning of September has pushed the year’s total to 64, a record for investments and acquisitions in the automotive retail vendor space. The blistering pace continued into the first week of November with data analytics firm Marchex’s purchase of Telmetrics and Infomedia’s acquisition of…

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