A new report by Bloomberg Energy Finance and McKinsey & Co. says plunging battery costs and rapidly improving autonomous driving technology will change the auto industry more in the next two decades than it has changed in the last hundred years. I would add to that list the emergence of new business models to sell cars, including online and through giant vending machines.
No doubt about it, we live in interesting times. As the industry changes, so will the dealership concept, and dealership valuation. That will call for innovation not only among dealers who have to find new ways to make money, but also among professionals who determine the value of a dealership. Those in the market will also need to decide how much the changing business model adds or subtracts from a dealership’s value. Those who adapt should do well.
Meanwhile, the business of buying and selling dealerships continues, and we continue to provide information and insight into the process. This week, Erin Tenner returns with the last in her five-part series on Buy/Sell Basics. This week, she looks at the real estate component and the implications for the various ownership or leasing models.
In our Women in Automotive series, this week I profile Katherine Johnson Cannata, co-owner of Wyatt Johnson auto group in Tennessee. Cannata figures being a woman in this business is a benefit because it brings a new perspective to the board room. Wyatt Johnson is an interesting group – it has a thriving BHPH business and also owns a financing company, besides selling new and used vehicles.
Then of course we have this week’s Transaction News.
Enjoy!
