Shoot us a Text.
We’re ready for the days to start getting longer as we’re coming in hot this Thursday. Join in as we discuss store profitability returning to a normal state, TomTom gets a foot in the door with future auto tech, and how retailers use music to keep you shopping longer this holiday season.
Show Notes with links:
- The first of a new quarterly report from a partnership between buy/sell firm The Presidio Group and NCM that reviews the data of 4400 franchised dealerships, reveals some stark changes in dealership profitability being dubbed “The Great Normalization”
- The data reveals a significant 19.5% drop in average dealership pretax profits through Q3 of 2023. A steep decline in gross profit per new vehicle, at 26%
- Dealership profitability is returning to more traditional patterns following unusually high profits during the COVID-19 pandemic, notes Presidio President George Karolis.
- George Karolis commented, “I think it gives a really good barometer and a different perspective to folks interested in following the industry.”
- NADA stopped releasing this data in 2021 its average dealership financial profile data, and this is the first time it has been available since
- Also notable, F&I income is down 8.1% to $1,587 / per unit
- You can get the report by going to the company’s site or clicking this link in the show notes
- GPS company TomTom is collaborating with Microsoft to introduce a sophisticated AI-powered conversational assistant in automobiles, enhancing voice interactions for navigation and vehicle control.
- The assistant is built on OpenAI's large language models and Microsoft's Azure Cosmos DB and Cognitive Services, promising high capabilities.
- This technology will be integrated into TomTom's Digital Cockpit and various automobile manufacturers' interfaces, with the auto companies maintaining their brand identity.
- TomTom has not yet disclosed specific partnerships with vehicle manufacturers, but the technology's versatility suggests widespread adoption potential
- As the holiday shopping season is reaching its peak, you probably have noticed the increase in music being played in retail stores. This isn’t new, but there is a lot to learn about how the strategic deployment of music in the shopping experience influences purchasing
- Specialists like Audiosocket and Jukeboxy emphasize the psychological impact of music on shopping behavior, suggesting that uplifting holiday music can encourage longer store visits and increased browsing.
- According to Magnus Rydén of Soundtrack Your Brand, creating a brand sound involves aligning music with the brand's identity, values, and customer demographics.
Join Paul J Daly and Kyle Mountsier every morning for the Automotive State of the Union podcast as they connect the dots across car dealerships, retail trends, emerging tech like AI, and cultural shifts—bringing clarity, speed, and people-first insight to automotive leaders navigating a rapidly changing industry.
Get the Daily Push Back email at https://www.asotu.com/
JOIN the conversation on LinkedIn at: https://www.linkedin.com/company/asotu/
