SITUATION:
The way and how people are & will move about is changing rapidly.
As the COVID online surge of car buying increases, the process is changing.
People are wondering if they actually need & if they can afford a car anymore.
SIGNIFICANCE:
Two economic and cultural developments are occurring—.
- Consumers are buying cars online with home delivery—no dealership.
- The need, cost, & function of a car for work & home is under change.
SOLUTIONS:
Right now or in the Short Term:
Ride sharing, scooter, bikes, & subscription services gaining more usage. |
Dealer franchises to continue sale & merger of auto retailing channel.
Dealer laws, associations, & ownership need providing resistance to change.
In the Long Term or Next Five years:
1) Term “Used Vehicle” will be eliminated from automotive retailing & literature.
2) Vehicles will have a series of multiple “Users” not owners over time.
3) Power plants to determine longevity of a vehicle life -not new model intros.
4) 50 total transportation centers will manage 85% of all vehicles in service.
5) Fleet management companies will own & manage consumer& fleet vehicles.
6) The term “dealer” will changed to “Transportation Service Provider”
7) Auto franchises will become Total Transportation Management Centers .
8 ) Uber & Amazon to be leading logistics or delivery transport of goods.
9) Surviving dealers will offer every possible transportation mgt. service.
10) Vehicle ownership will continue to decline as service model grows.
SOURCES:
Digital Trends https://www.digitaltrends.com/cars/should-you-buy-a-car/
Prediction of the imminent death of the dealership model is overstated.
https://www.automotivebuysellreport.com/prediction-of-the-imminent-death-of-the-dealership-model-is-overstated/
Are Dealerships Dead? COVID-19 Will Forever Change How We Buy Cars” –https://www.hotcars.com/are-dealerships-dead-covid-19-change-how-we-buy-cars/
Are Auto Dealers & The Franchise Business Model Dead Meat?
https://www.newsbreak.com/news/2045299389477/are-auto-dealers-the-franchise-business-model-dead-meat-or-at-least-impossible-burgers
People Who Are Knowledgeable about Auto Industry:
Michael Pochan m_pochan@yahoo.com
Stanford University economist Tony Seba;
Editorial Team of AIN Media cparker@fixesandsolutions.com
Marc Spizzirri is Senior Managing Director for GlassRatner Advisory & Capital Group, LLC (link), 949.922.1006 or MSpizzirri@glassratner.com
