I’ve read several stories this week about speeches three Tier One supplier executives gave at the Detroit Economic Club on Tuesday. They addressed two topics that should deeply concern dealerships – future mobility and the Trump administration’s policies towards imports.
The three executives – American Axle CEO David Dauch, Lear CEO Matt Simoncini, and Borg Warner CEO James Verrier – are looking for ways their companies can participate in and profit from the move towards more car sharing and connected and autonomous cars. Dealerships should be doing the same.
They also discussed the uncertainty around the new administration’s policies toward automotive imports. As I have said before in this column, that is an issue of as great a concern to suppliers as to the automakers themselves. And it should be a concern to dealers, as well. The executives want clarity and stability so they can plan for the future. Those plans will inevitably impact dealers as they will determine the price and even the type of vehicles that dealership will be selling.
Meanwhile, however, let’s look at the here and now i.e. this week’s issue. Sales growth is expected to moderate this year compared to 2016. That can represent some good acquisition opportunities. This week, Crowe Horwath says to look in your own neighborhood for good acquisition targets, among other tips.
Before you do make an offer, however, it pays to do a bit of due diligence into the person you are buying from. Does he or she have a history of dragging out negotiations or asking for last-minute changes? These are two of the various warning signs Joe Aboyoun has found in what turned out to be an undesirable buyer.
As always, we also have Transaction News.