December 27, 2014 — Much of the auto industry’s discussion regarding cyber warfare focuses on the inherent vulnerabilities of the connected vehicle. But one area that receives little scrutiny is the retail side of the automotive industry. This will soon change as dealerships likely will become one of the central battlefields in the cyber wars that will be… Continue Reading
December 7, 2014 — The return of the midsize truck market is officially in play with two big announcements last week. Late last week, Toyota Senior Vice President of Operations Bob Carter announced during the automaker’s annual media Christmas luncheon in Detroit that it will show a newly revamped Toyota Tacoma at the 2015 North American… Continue Reading
The automotive retail space is within striking distance of 300 dealership acquisitions for all of 2014 following a monster October that saw 49 rooftops change hands. Meanwhile, prices for deals start to climb in wake of Buffett’s announcement. Fueled by Lithia Motors’ acquisition of the DCH Automotive Group, the 49 rooftops that changed owners in…
November 3, 2014 –The dealership buy-sell market remains hot through for the year with 200 acquisitions through the third quarter. While Warren Buffett’s announcement brought a renewed sense of energy to the market, it ultimately may dampen potential acquisitions for the next couple of quarters as buyers are content to wait out what is proving to…
October 29, 2014 — Dealers in the market for a Cadillac franchise may want to tread carefully. A month ago we wrote about what we believe will be a painful forecast for many of Cadillac’s 924 dealers. The brand has a new home in New York and as many as 10 new products coming in…
October 8, 2014 — A federal judge in New Jersey Monday approved the settlement of a class action lawsuit resulting from BMW’s long standing practice of forcing dealers to help inflate its monthly sales numbers in what is commonly known as “punching” sales. The lawsuit alleged BMW cheated customers by reducing the length of its four-year Ultimate…
October 2, 2014 – Warren Buffett’s announcement today that his Berkshire Hathaway Group is acquiring the Van Tuyl Group Group has the potential to change the market over the next year. Certainly, adding his iconic stature to an industry that already has business luminaries such as Roger Penske and MikeJackson only adds further validation that automotive retail is…
September 28, 2014 — The short term future for Cadillac dealers is not looking good. Sales predictions less than two years ago of 300,000 units a year in 2015 seem foolhardy today as the brand is on target to sell five percent less in 2014 than it did in 2013. While in Las Vegas last… Continue Reading
September 22, 2014 — A new type of investor in dealerships may provide the comfort level manufacturers require and the flexibility dealers need. Recently a new breed of investor has been drawn to the business of franchised retail auto dealerships. Included are hedge funds, private-equity funds and family offices. First, what attracts them to automotive…
September 15, 2014 — Automotive sales in August far exceeded everyone’s expectations leading to concern that automakers were again relying on aggressive incentives rather than true demand juice showroom traffic. The truth lies somewhere in the middle — but could have far reaching implications for the short term future of certain market segments, and even,…