The car dealership as we know it may be an endangered species starting about 10 years from now.
Expeditors may want to take some steps to safeguard your future. (We’ll get to that in a minute).
Autonomous cars will mean less car ownership with the rise of robo “ubers” and ride sharing. That is all expected to start reaching a critical mass around 2025.
“It is at this timing that a major decline in traditional dealership operations will begin,” says James Carter of Vision Mobility, a former Toyota manager in sales forecasting. And he’s not alone.
Many speculate that car buyers of the future may reject the traditional car haggling experience at a dealer in favor of digital platforms (think TrueCar on stereoids). Or car makers may sell direct to consumers (think Tesla).
General Motors just issued buyout offers to 400 of its 925 dealers.
Morgan Stanley Research told investors to expect a big consolidation in car dealerships, reported the LA Times last year.
In fact, analysts have been predicting the eventual shrinking of the car dealer business for at least two years now.
Carter says you’ll start to see a transformation at the car dealer. The service department will have fewer car mechanics and more IT (Information Technology) professionals who are fixing software problems with cars.
Dealerships may want to take on the role of storing and charging electric fleets overnight. In fact, Carter recommends dealers start investing in their own fleet operations, like autonomous ride sharing fleets.
Car audio dealers too can start cultivating more business directly with fleets.
Fleets can include the local HVAC contractor with four trucks, or any business with vans such as plumbers, electricians and security companies.
Many of these fleets are in the market for driver safety, so the time to strike is now, says Steve Witt of American Road Products. See our fleet story here
Source: LinkedIn/Vision Mobility