Car dealers should try new sales formats in digital age

Automakers and dealers are beginning to experiment more with different ways and different places for consumers to interact with and experience new vehicles.

Shopping mall mini-locations and on-street experiential marketing campaigns present diverse touch points where consumers can familiarize themselves with the array of automotive technology advances from the last dozen years. If they give consumers a chance to see, drive and even arrange purchases, they are welcome — so long as they do not run afoul of state franchise laws.

Indeed, given the pandemic-accelerated changes that automotive retailing has undergone during the last three years and the vows by automakers and dealers to maintain inventory discipline, it may be time for a broader rethink of what it really takes to properly — and profitably — represent a manufacturer.

It was not that long ago that fights over factory-mandated facility requirements were common between automakers and their dealership networks, often causing huge rows over trivial matters such as tile size or paint colors.

Those troubling situations — in which far-removed automakers would attempt to dictate how a local dealer should present their business under the guise of “protecting the brand” — still occur, of course, but both their frequency and ferocity have thankfully moderated.

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