sales

Experts now predict that microchip supply issues will likely continue into 2024, which is no surprise here. When the microchip industry forecasted that microchip availability would be normalized by the end of 2022, we laughed. Impossible.

What we’ve all worried and debated about for essentially the last five years is definitely  being forced upon the dealers by the OEMs.

The past few years have brought a lot of surprises for the automotive industry. While many predicted 2022 would be the year of healing and finding “normal,” Q1 has proven otherwise, and we had been hoping for something that looks “normal” by the end of 2023. This is now looking more doubtful as we continue through 2022.

So what are the trends we’re seeing that are impacting sales?

Some things haven’t changed.

The way consumers shop has drastically changed over the past few years, especially through the pandemic. But what happens when rapid change becomes a potential burden? Dealers are pondering the future of OEM direct sales and what it means for their profits and their businesses.  

When we got to the end of 2020, we hoped things would be better, but 2021 gave us a lot of trouble too. The auto industry has been put through the ringer. So, what can we expect in 2022?

We now live in a world where up is down, and down is up. Dealerships have overcome some crazy obstacles over the past two years - Covid restrictions, low consumer confidence, chip shortages, inventory shortages, staffing shortages, and so much more.

There is no denying it. things are bad. It’s estimated that all automakers have lost almost 6.5 billion vehicles as a result of the chip shortage. Photos of parking lots full of mostly built vehicles are circulating around the internet. They are ready to go, except for the chips.

For what seems like forever, electric vehicles have been talked about as “the car of the future.” Technically this is still true, except the future is here, right in front of us.

Factory-direct sales may seem like a good shortcut for consumers but, in fact, they only benefit automakers. It is a strategy being used to hurt dealers in the long run and an attempt to wipe them out. Some even predicted dealerships would not exist by 2025… sounds crazy right? 

The past year-and-a-half have created a major shift in the automotive industry and how cars are sold. Quite frankly, many processes changed for the better and dealerships have come out the other side much stronger and more efficient.