Car Dealership Guy’s Post

Dealership values are still 2.5x 2019 values but due to lower margins and higher Floorplan costs are dropping approximately 7%. With the exception of Al Hendrickson Toyota which achieved the highest price ever paid for a single dealership.

Six leading publicly traded new-car dealership groups have seen a significant surge in parts and service revenue. With a notable 5.3% increase in Q4 and a 7.7% rise throughout 2023, it’s clear that focusing on customer-pay, warranty, and internal works pays off. The key is not only in selling cars but also in nurturing ongoing relationships with your customers through excellent service. Extend those hours, make booking easy, and keep those mobile service trucks rolling. Don't forget to invest in your service techs - it brings real growth. Read more here: #AutoDealerships #PartsAndService  

The rise in new-vehicle sales, the growth of EV adoption, and the evolving market dynamics highlight the importance of efficient inventory management for car dealerships. It's a game-changer we can't ignore. #DealershipStrategy #InventoryManagement #DrivingResults https://hubs.la/Q01--1nN0

United States Fisker, the renowned electric vehicle manufacturer, is making significant strides in its shift towards a dealership model, marking a pivotal moment in its business strategy. The company recently announced the signing of four dealer partners across the United States: Mills Automotive Group, Ourisman Fisker, Classic Fisker, and Long Island Fisker. These newly established dealerships are set to commence the sales of Fisker’s electric Ocean SUV from seven locations spread across six states. Among the noteworthy partnerships, Mills Automotive Group stands out as the automaker’s first American dealer, having committed to opening Fisker dealerships in Charlotte, N.C., Raleigh, N.C., and Greenville, S.C., following their participation in the Jan. 31 dealer open house. The momentum continued during the recent National Automobile Dealers Association (NADA) Show in Las Vegas, where Ourisman Fisker in Rockville, Md., and Classic Fisker in Atlanta both pledged their support. Long Island Fisker, joining the ranks just last week, plans to establish locations in Long Island, N.Y., and New Jersey. Henrik Fisker, Chairman and CEO of Fisker, expressed his enthusiasm for the swift progress of the dealer partnership model, highlighting the shared commitment of the signed dealers to the future of electric vehicles and their respective communities. The transition towards the dealership model was announced by Fisker on Jan. 4, characterized as a "strategic shift" away from direct sales. Since then, the company has garnered interest from over 250 dealers and anticipates further expansion in the coming weeks. However, amidst these positive developments, Fisker recently received a notice from the New York Stock Exchange (NYSE) regarding its non-compliance with NYSE standards. The average closing price of Fisker's common stock fell below $1 per share over a consecutive 30 trading-day period, prompting the NYSE notice. Despite this development, Fisker reassured investors that the notice would not immediately impact its listing on the exchange. The company's common stock will continue to be listed and traded on the NYSE during a six-month cure period, during which Fisker intends to take necessary actions to regain compliance. Options under consideration include a reverse stock split, subject to stockholder approval, among other strategies. Fisker remains focused on navigating these challenges while concurrently driving forward its dealership model, underscoring its commitment to innovation and growth in the electric vehicle sector. #fisker #automotive #strategy #dealership #directsales #innovation https://lnkd.in/eFBRcehH

Asbury Automotive is acquiring the Jim Koons automotive dealership group for $1.2 billion. The transaction is expected to close late this year or in early 2024. The deal includes $740 million in goodwill (Blue Sky) and another $417 million for real estate. The total enterprise value of the deal will go up once the new and used inventory and fixed assets are added in at a price to be determined at the transaction's closing. We wrote about the pending deal earlier this week and had pegged the price to be between $1.1 billion and $1.5 billion accounting for a wide spread due to the uncertainty of the real estate. Asbury is buying all of the assets including new-car 20 dealerships located in in Maryland, Delaware, and Virginia selling Buick, GMC, Chevrolet, Chrysler, Dodge, Jeep, Ram, Ford, Hyundai, Kia, Toyota, Lexus, Mercedes Benz, and Volvo brands. Asbury is also getting six collision centers and one of the highest volume Toyota and Stellantis dealerships in the US. Koons ranks 23rd on the 2022 Automotive News Top 150 Dealer Groups list — which is based on total new car volume — and generated $3.2 billion in total revenue last year. Based on total revenue, Koons is the 12 largest group in the country. Asbury, which generated $15.4 billion last year, ranks fifth on the Automotive News list — both in new car sales and total revenue. Kerrigan Advisors represented Koons in the transaction.

The Drive for Innovation in Family-Owned Dealerships Traditional family-owned car dealerships are confronting an array of unprecedented challenges in the post-COVID era. Supply chain disruptions, the emergence of direct-to-consumer sales models by automakers, and the hefty investments required to transition to electric vehicle sales and services are among the primary concerns. The evolving landscape has seen a decline in single, family-owned businesses, with many opting to exit the market. Furthermore, the next generation is showing reluctance to step into the dealership realm, wary of the financial risks and shifting market dynamics. With the rise of electric vehicles and direct-to-consumer models, how might family-owned dealerships innovate to remain relevant and sustainable? #FamilyDealershipFuture #PostCovidAutoChallenges #AutoIndustryEvolution

Stair-steps have long been derided by dealers who say they're often counterproductive. Others say the strategy can work if implemented appropriately. In a bid to more quickly move outgoing F-150 pickups amid declining sales, Ford Motor Co. has revived a controversial practice that critics say can erode trust and sow confusion among customers: stair-step incentives.

According to Cox, Toyota and Lexus dealers accounted for 29% of all vehicle dealers total gross profits in February. They did this with 9% of the total dealers in US market. The article below is a well written Playbook on how to build an OEM that considers ALL STAKEHOLDERS WIN…..the CUSTOMER, the DEALER and the OEM. Sometimes we try to overthink the process and maybe take shortcuts. In this case, zero to one, is making sure stakeholders win. Good read to remind us to remember “There is no finish line”. As the article said, “Show me the Money”! #customer #quality #Value #profitability Brian Finkelmeyer

"New research released by Cox Automotive Inc. on the U.S. vehicle service industry shows that franchised dealerships continue to lose share to general repair shops." Wouldn't it be great to gain Insights on what's happening in the Automotive Aftermarket? Luckily, MOTOR Information Systems, a leading provider of Automotive Data, has you covered. If your company or its products/services service the Automotive Dealership space we should talk. Reach out to me and let's get the conversation started. https://lnkd.in/eH2RVq9e #franchisedealership #automotive #automotivenews #dealership #cardealership #cardealers #cardealerships #carindustry #automotiveindustry #MOTORExclusive #MOTOR

Implications of moving to just-in-time inventory for car dealerships: https://lnkd.in/g-UUH3g5 #strategy #dealerships #carsales