I read today of a partnership between BMW, Delphi, and Intel to create autonomous vehicles. There is an increasingly symbiotic relationship between automakers and tech firms, but this trio also includes a traditional supplier, Delphi. Integration into a vehicle’s existing electrical architecture is a crucial element of autonomy, and I am sure Delphi will bring its expertise to bear on that question.
So, there is a place for traditional suppliers in the evolving automotive production space. Is there a place for dealerships in the evolving automotive retail space? Of course there is, but dealers can’t wait to find out what the place is, they need to be thinking about it all the time.
That is just one of many other things on dealers’ minds. Another might be fraud. If that isn’t on your mind, it probably should be. This week DHG Dealerships points out some areas to look for fraud in your dealership and steps to help prevent fraud.
Dealers are generally optimists, so while vehicle sales growth may be slowing in the current market, a dealership owner will always figure sales will improve down the road. That will influence the value he or she places on their dealership. Meanwhile, a buyer is trying to anticipate all the things that can negatively impact a business, such as slowing sales.
Those differing viewpoints may scupper a deal at the last minute, but they don’t have to. This week, Crowe Horwath discusses including an earn-out option in the purchase agreement to help reconcile those two views.
And of course we have Transaction News.