I am not in New York for the auto show. Indeed, I am leaving tomorrow for Shanghai to attend Auto Shanghai press days next week. While I may not be in New York, I am enjoying reading the news out of the NADA/J.D. 2017 Power Automotive Forum in New York that took place today.
As always, AutoNation CEO Mike Jackson has some interesting opinions. Like many of us, Jackson is mystified by the valuation for Tesla, which is now the most valuable automaker in the world based on stock price. Jackson thinks that status won’t last. Also of interest – despite a slowing market, J.D. Power is sticking with its forecast of 17.6 million new vehicle sales for 2017, says Thomas King, vice president of U.S. PIN OEM Operations at J.D. Power. He did add that “it is going to be a really challenging market to navigate,” reported Wards Auto.
You, my dealer readers, are going be the ones doing the navigation. If you are looking to sell your dealership, the market remains strong, according to my contacts. But, making sure your business is strong in all areas will be key if you want to get top dollar.
One thing I have heard again and again in the years I have been interviewing dealers who just acquired a franchise is that they saw weaknesses in the former owner’s business model. The new owners figured they had the know-how to fix those weak spots and make a lot more money. This week I profile just such a buyer. His changes are already boosting sales. Read about Rick Jones and Cardinal Buick GMC in this issue.
One key area of your dealership that needs to be top notch if you want to operate as efficiently as possible is your accounting department. Yet some dealerships rely on individuals who aren’t trained accountants to keep the books. The dealers may be pouring money down the drain, says Kevin Lay of CliftonLarsonAllen. In this issue, he details the three “sure-fire” ways you can know if you are neglecting your accounting department.
As always, we also have Transaction News.