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2020 Vision: Integrated Solutions in a Digital World

by Lindsay Lauck
on March 18, 2020

In this month’s Dealertrack DMS 2020 Vision Series—where leaders and experts share goals, aspirations, and predictions for the automotive industry—our Director of Business Development shares his thoughts on the emerging trends affecting dealers. In his role, Tyler Anderson has the opportunity to hear from focus groups, customer advisory boards, and technology leaders churning out the most innovative solutions for the automotive retail industry. This month, he shares his thoughts on the top issues for dealers like you and, specifically, which challenges you must master in order to achieve success in your field. Read more:

 

What are the key issues dealers are facing in 2020?

There are really six emerging trends that all dealerships are facing in 2020. They are: 1 - (Potential) Economic Downturn - We’re not in a recession now, however economists are predicting a downturn in the future. 2 - Competitive Dynamics - There are new entrants in the automotive market who weren’t there only a short time before. 3 - Dealer Consolidation - There continues to be a lot of consolidation of the retail network. 4 - Mobility Solutions - Ride-sharing and autonomous vehicles are on the horizon. 5 - Digital Transformation of the Buying Experience - There is a growing percentage of consumers wanting to do more of the transaction before they get to the dealership. 6 - Margin Compression - Maintaining profitability in a changing market.

In an era rife with disruption, interconnectedness, and fast-paced technology, the best solutions will become increasingly more integrated. Depending on what your dealership looks like—small to medium, luxury vehicle, used cars, affordable, etc.—different trends will be a bigger focus. Certain things, such as Margin Compression and dealer consolidation, are more deeply interconnected than others. The bottom line? 2020 is a complex year for dealers.

What is your 2020 Vision for the automotive industry?

Dealers are facing a lot. And I think that if you asked a typical dealership they would tell you the same thing. On top of all of these key issues, the rising cost of the average vehicle is also going to have an impact this year.

The automotive industry is seeing big changes and lots of disruption. And still, the impacts to the industry must account for the general changes to the economy and the effects of rising costs on consumers. The economy is strong, for now, and unemployment is low. But memories of the Great Recession are still fresh.

What is your 2020 Vision for Dealertrack DMS?

So much of what our dealers are hoping for, and what Dealertrack DMS can offer in 2020, are smarter, integrated solutions. The need for efficiency is ultimately driven by Margin Compression. With companies like Dealertrack and Cox Automotive, dealers want to have their data all in one, integrated place. We’ve made a lot of progress in this area and we have a plan for 2020.

Dealertrack DMS is taking real-time feedback from our users and rolling out big, big changes in 2020. Beginning in February at the National Automotive Dealers Association Show (NADA), dealers will get a first-hand look at our partnership with Hireology, the HR experts. This new end-to-end integration, powered by Netchex, offers a comprehensive payroll, compliance, and HR solution.

A 2020 Vision: Smarter, Safer Managed Network Services, powered by Proton

High-tech dealerships need more reliability, secure and safe infrastructure, and reliable support. With the introduction of Managed Network Services, powered by Proton, dealers will have top-of-the-line IT support at-the-ready.

 

What is your Vision for NADA 2020?

I’ve been to 22 NADA Shows in a row! It’s a chance to see what’s happening in the industry, where the exciting buzz is in terms of companies that are getting noticed for various announcements, and get a pulse of who’s leading and who’s following. I’ve been working in business development for automotive tech companies for years, and NADA is a big deal; everybody’s there. It’s a good opportunity to meet existing and potential strategic partners face-to-face and get relationships started, strengthened or re-booted. I look forward to it every year.

Tags: 2020 Vision, IT, Managed Network Services, Margin Compression

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