Automotive News - November 6, 2017 - Supplement - S6

Bye, bye, F&I?
Dealers have a future in the era of mobility,
if they can just let go of the past

W

hen the auto industry discusses and imagines the future of
mobility, one question always hangs in the air: What about
the future of the traditional dealership?
That one question unlocks a host of others:
AS NEW PLAYERS such as Amazon and Carvana re-create the way
people buy cars, can dealership F&I departments find ways to compete?
AS VEHICLES MOVE to a high-tech, increasingly electric future, what
happens to service departments?
AS MORE CUSTOMERS consider options that let them get around
without owning a car, what role can dealerships play?
"There is a lot of discussion going on, a debate about what the role of
the dealer will be in 15 years," says Georg Bauer, a
former finance guru at BMW, Mercedes-Benz and
Tesla and co-founder and president of Fair, a car
financing startup.
"Our own thinking has been clear: There
definitely is a role for the dealer as a primary
Georg Bauer
interface with the customer."

WC

But Bauer says the future increasingly will be "digitally supported
and won't necessarily include dragging every customer into the F&I
office. Dealers need to find different ways of winning and serving
customers and not simply hang onto the current process."
Don Flow is one dealer already re-examining
how he does business.
"What we did in the past was to create value
for customers as a source of information on new
products and on trade-in markets. Now they can
access all that, independent of a dealer," says Flow,
Don Flow
chairman and CEO of Flow Automotive Cos. and
its 20 dealerships in North Carolina and Virginia. "I think we have to
develop a new business model, a new formula for how we create value."
Dealerships, he says, need to be "as efficient as Amazon and as
enjoyable as Apple" for customers, offering "a guest experience with
transparency and speed, ease, fun and choice. It means a radical
rethinking of our processes, and it's driving us toward the digitization of
everything in our business."

WORLD
CONGRESS
EXPERIENCE
TM

EXPERIENCE THE POTENTIAL
APRIL 10-12, 2018 * COBO CENTER * DETROIT, MICHIGAN

The industry's premier event returns in 2018. Invest three days at WCX
developing leads, strengthening relationships, and promoting your company's
position as a leader in mobility's exciting future. Capitalize on the opportunity.

PAGE 6

P17143955

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http://www.sae.org/wcx

Table of Contents for the Digital Edition of Automotive News - November 6, 2017 - Supplement

Automotive News - November 6, 2017 - Supplement - Intro
Automotive News - November 6, 2017 - Supplement - S1
Automotive News - November 6, 2017 - Supplement - S2
Automotive News - November 6, 2017 - Supplement - S3
Automotive News - November 6, 2017 - Supplement - S4
Automotive News - November 6, 2017 - Supplement - S5
Automotive News - November 6, 2017 - Supplement - S6
Automotive News - November 6, 2017 - Supplement - S7
Automotive News - November 6, 2017 - Supplement - S8
Automotive News - November 6, 2017 - Supplement - S9
Automotive News - November 6, 2017 - Supplement - S10
Automotive News - November 6, 2017 - Supplement - S11
Automotive News - November 6, 2017 - Supplement - S12
Automotive News - November 6, 2017 - Supplement - S13
Automotive News - November 6, 2017 - Supplement - S14
Automotive News - November 6, 2017 - Supplement - S15
Automotive News - November 6, 2017 - Supplement - S16
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