I have recently read several pieces about how some dealership owners, concerned about future changes in the auto retail environment that would be caused by electric vehicles and autonomous vehicles, are choosing to sell now while their dealership values are still high.
To be sure, I have written many a column urging dealers to start preparing now for exactly those changes. When I read of AutoNation’s agreement with Waymo, I figured Mike Jackson was making a brilliant move.
But are dealers really choosing to sell now rather than try to adapt to the changes? Dealers have been through many changes and survived. You tell me. If you are a dealer, are you thinking of selling now because you are worried about the changes and challenges EV and self-driving cars will bring? Are you looking to sell now, but for entirely different reasons?
Are you already making changes to “roll with the punches” and continue to thrive in the future? Are you simply waiting to see what will happen? I would love to hear from, and talk to, dealers and buy sell professionals regarding how potential changes in the retail environment brought about by EVs and the like are impacting your thinking or your business.
There is still plenty of money looking for a good place to park itself in the dealership world. This week, I profile a group I’ve talked with before, Prime Motor Group. It just became majority-owned by a large investor with the resources to help it thrive in what he sees as a changing retail environment, Prime CEO David Rosenberg tells me. Read more in this issue.
Also this week we welcome a new contributor to our pages. George Taylor is an attorney at Burr & Forman. This week he writes about Letters of Intent and potential unintended consequences if such documents are not very carefully worded.
And don’t forget (as if you would) Transaction News.