Automotive retail is in the midst of colossal change. Some of the industry’s leading OEMs are shifting to online-only, direct-to-consumer agency models – citing larger margins, better price transparency for consumers and better contact with buyers as the driving forces.
Others, however, have remained faithful to bricks-and-mortar franchised dealerships, basing their strategy on two key philosophies. First, contracting out retail takes the stress of shifting metal away from OEMs. Second, dealerships can provide the top-drawer buying and aftersales experience that customers have come to expect over the past few decades.
