Digital Dealer - May 2019 - 21

LOCAL DEALER ASSOCIATIONS HAVE THE ABILITY
TO SEEK REMEDIES, VIA LEGISLATION OR LITIGATION,
TO ALLOW DEALERS ACCESS TO THEIR OWN
CUSTOMER DATA."

From the Ford-owned
retail network in Indianapolis in 1999, to the Volvo's
subscription sales program
today, the three-tiered distribution channel has been
tweaked, challenged, and
reshaped over the past
few decades.
Today's challenges to
the distribution channels
are slightly unique in that a
confluence of four evolving
factors may ultimately restructure the way that consumers purchase vehicles
and/or "transportation services." The factors that will
have the greatest impact
on the distribution channel,
and thus provide the state
dealer association with an
opportunity to proactively
educate dealers, are:
1) the increased use of
digital technology in purchasing "mobility services"
2) The advent and maturation of Chinese-made
vehicles in the US marketplace
3) Subscription services
or "vehicle" sharing by
consumers and
4) Internet-connected vehicles allowing immediate
access to the dealership or
the OEM
Each of these trends
has the ability to significantly impact the current
retail marketplace while,
at the same time, provide
incredible opportunities
to the local state dealer
association to be on the

cutting-edge of working with
dealers to better understand
these marketplace dynamics.

INCREASED
CONSUMER SCRUTINY

Consumer groups are
becoming increasingly more
assertive in their efforts
to oversee and impact
several aspects of the
vehicle sales transactions.
From dealer fees to vehicle
service contracts, and from
consumer disclosures to

guidance to mitigate dealership risk.
DATA OWNERSHIP,
MANAGEMENT AND MANIPULATION

One of the growing
issues in the automotive
industry involves the collection, ownership and ability
to manipulate a dealership's
consumer data. With a
possible duopoly in place
by the two leading DMS
providers, the ability of a
dealer to freely, or at a very

...A CONFLUENCE OF
FOUR EVOLVING FACTORS
MAY ULTIMATELY
RESTRUCTURE THE WAY
CONSUMERS PURCHASE
VEHICLES AND/OR
'TRANSPORTATION
SERVICES.'"
overall vehicle financing,
multiple aspects of the
sales transaction are facing
greater scrutiny both locally
in the states as well as in
the nation's capital.
Local and state dealer associations are generally well
structured to work with the
local dealers, as well as the
local regulators and or legislators, to proactively plan
for and educate dealers on
the best practices related
to consumer sales transactions. As greater scrutiny
increases, local dealers will
engage their state dealer
association for advice and

low cost, manipulate their
data is being challenged.
Local dealer associations
have the ability to seek
remedies, via legislation or
litigation, to allow dealers
access to their own customer data. Additionally, dealers
working collectively through
their state dealer association can seek to work
proactively with the DMS
providers on a solution that
benefits the dealers.
In summary, dealers are
facing unprecedented and
significant emerging trends
that could materially affect
their profitability as well as

D I G I TA L D E A L E R . C O M

significantly reshape the
franchised car and truck
marketplace. The impact
of these trends, combined
with today's economic uncertainty, presents both a
challenge and an opportunity for today's dealers.
By being actively engaged with the state and
local dealer association,
via any of the programs
and projects offered by
the association, the local
dealers will be better suited to make an informed,
timely managerial decision
to proactively address
the emerging trends. It is
critically important, at this
time, that franchised dealers, both large and small,
reach out to their state and
local association to make
a difference in the future
of their dealership as well
as the future of the entire
industry.

ROBERT GLASER is
president of the North Carolina
Automobile Dealers Association
representing North Carolina's
new car, truck, and RV dealers.
During his 24-year span at the
association, Glaser has initiated
and coordinated the efforts of
franchised dealers in programs
such as the North Carolina
Teacher of the Year program,
the Support our Troops program,
the World War II Flight of Honor
program - flying 821 World War
II vets to Washington DC - and
most recently, the North Carolina
Hometown Heroes program.
Glaser is a graduate of the
University of Dayton as well as
the University of Notre Dame's
US Chamber of Commerce
Institute for Organizational
Management program.

M AY 2 0 1 9

21
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