The mood was decidedly upbeat at the National Automobile Dealers Association meeting in San Francisco last week. And why not? Sales, while slowing a bit compared to last year, are expected to remain strong in the near future. The economy is strong, supporting healthy consumer spending, NADA senior economist Patrick Manzi told a press briefing.
And while autonomous vehicles are lurking, full autonomy is a long way off, various attendees said. By one estimate autonomous vehicles won’t be the prevalent form of transportation until 2050. Of course, that doesn’t mean the retail model won’t change before then. Indeed, it is already changing. The move to digital – wholesale and retail – was a recurring theme.
This week’s issue is brought to you from San Francisco. I visited The Presidio Group and chatted with Brodie Cobb and his crew. Read their thoughts on the changes coming in the dealership model and challenges it poses for valuation in this issue.
Our second story is a fuller account of the forecasts I heard in San Francisco, and some headwinds dealerships will face in 2019.
Then there is Transaction News.