Trends that influence retail auto industry
The retail automotive experience has been improved with the addition of several amenities.
My involvement with the Trillium Automobile Dealers Association (first as a board member and now as president) has allowed me to meet people who work in all aspects of the retail automobile industry.
One point of discussion that comes up frequently among my peers and colleagues is the profound changes taking place in our industry and the pace of those changes.
New ideas, processes, technologies and expectations are transforming the retail automobile industry.
Adapting to change can be challenging and time-consuming, but it is also what makes our industry so dynamic and exciting.
Based on my observations, here are some key developments that have affected the retail automobile industry during my 25-year career in the business.
Mobile
It is impossible to convey the extent to which smartphones have revolutionized the retail car industry. Historically, consumers began their search for vehicles on a PC, but today, more than half of automotive internet shoppers use a mobile device in their quest for information. That includes searching for makes, models and pricing, visiting review sites, watching videos, engaging in live chats and contacting dealerships to arrange appointments. These mini computers in our pockets have completely changed how dealerships operate and how consumers buy and service their cars.
Dealership facilities
From the architectural features and decorative elements to lighting and vehicles on display, today’s modern stateof-the-art dealerships are extensions of the brand. In addition to branding elements (for consistency of appearance), the retail automotive experience has also been improved with the addition of drive-thru service bays, comfortable customer lounges, shuttle availability, Wi-Fi service, free coffee and inhouse service clinics.
Diversity
New car dealerships are equal opportunity employers with ethnically diverse workforces and customer bases. Dealers employ men and women from all backgrounds and nationalities, and the retail automobile industry rewards talent, ambition and dedication, regardless of a person’s age, gender or background. More women are working (and filling senior positions) at dealerships than ever before and most dealerships have employees who are fluent in more than one language. The nearly 1,000 franchised, TADA-member new car dealers across Ontario employ more than 45,000 people and produce $12.15 billion in GDP each year to the province, according to a study by PwC Canada.
Skills & education
Most dealership careers today require some type of formal education and many positions require highly specialized training. Automotive tech, collision repairs, digital marketing, human resources and accounting are some of the positions that require extensive training, as well as ongoing skill upgrades and develop- ment. In fact, lifelong learning is now a requirement for anyone who aspires to be successful in the retail car business. For more information about automotive education and careers, visit carsandjobs.com.
Connected cars
The amount of technology built into vehicles these days is truly astonishing. Much of that technology is related to safety features, such as lane departure warning systems, driver alertness monitors, on-board sensors and backup cameras. Other in-car connectivity functions include GPS naviga- tion systems, infotainment systems (Bluetooth connectivity and music/audio features) and automobile diagnostics that alert drivers to required servicing and problems with their vehicle. With the advent of autonomous vehicles in the near future, in-car computing power and technology will increase even more.
Reputation management
Dealerships have always been aware of their reputations and have worked hard to maintain and nurture those reputations. In today’s digital age, reputations are amplified on social media and review/ratings sites for all the world to see. It has been reported that up to 70 per cent of car-buying decisions are influenced by online review and ratings websites, such as Yelp and Google. A dealership’s reputation remains a powerful influence for consumers in deciding where to buy a new or pre-owned vehicle and where to have their vehicle serviced. Real world experience says it all. This column represents the views and values of the TADA. Write to president@tada.ca or go to tada.ca. Susan Gubasta is president of the Trillium Automobile Dealers Association and is president/CEO of Mississauga Toyota.