Saturday, August 25, 2007

Dealers vs. Manufacturers

As in most franchise businesses, the relationship between franchisor and franchisee is inherently contentious, cooperative at best, intensely conflicting at times. The current imperative to improve domestic auto manufacturing and marketing is remarkably strong. It may not be as strong as at the juncture of the Federal Government's Chrysler bailout, but rest assured, powerful forces are at play to drive change.

I've been wondering if the changes will affect the manufacturer-dealer relationship. More and more, I hear dealers are relying increasingly on manufacturers for new car leads. I also recall the ChannelNet approach to serving this industry with lease-end marketing programs. I wonder if this is a part of a larger trend of dealers and manufacturers working more effectively together to put consumers in their cars. Chrysler and BMW are using this platform I believe.

Do you think OEM's will better serve dealers going forward?

Will dealers share more data with OEM's?

Will service providers target OEM's increasingly (a la Cobalt and ChannelNet) to enable better vehicle marketing, slowing the growth of the thousands of businesses trying to help dealers directly?

What companies' business models or products tightly link OEM efforts with dealer marketing and sales?

1 comment:

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