An automotive retail development company.
Convergent Alliance, Automotive retail development company, dealership remodel, dealership assembly, dealership profits, dealership software, automotive industry, dealership construction
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  |   Business

Focus is shifting!

As the automotive retail industry begins moving towards new concepts of mobility, focus is also shifting from moving large masses of metal to mobility experience. Auto manufacturers and technology companies have been working together first to develop the perfect autonomous vehicle, then offer efficient ride sharing concepts to maximize the average use of vehicles on the roads to help traffic congestion, free up space, improve commute and productive time.


Along the way, and in the next five years, auto retailers will have to find their space in this new environment and start transforming their perception and business culture or simply exit the arena.


Time is now to take action!


Either way, time is now to take action. We at Convergent Alliance have shifted our focus in the services that we provide to develop strategies custom designed to each one of our client’s specifics.


For those of you who think that this is the end of the rainbow and it is time to cash out, there is a great sense of urgency. Considering the cyclical changes of the automotive industry, it is quite safe to say that after a seven year run, sales have peaked in 2016 and 2017 will be the year of decline. The difference this time though, looking forward 5 years, with autonomous driving and ride sharing concepts, light vehicle sales in the U.S. will further decline to perhaps below 10MM units by 2022. Consequently the number of retailers will also drop down to about 9000 total from 18,000 as of the end of 2016. Given the fact that the transaction prices are determined as a multiplier of net earnings; as the anticipated return on investment, your businesses will probably be worth the most in 2017 while gradually declining thereafter. Our services to those clients are purely based on short term strategies and focused on ROS and therefore maximized return on their investments while there is still time. Improving your financial statements is going to be the most important task and it is of course our specialty.


A completely different task at hand!


If you decide to take part in the transformation of the vehicle distribution concept, you have a completely different task on hand. You have to start immediately developing an organizational culture that will serve up to this purpose. Today, most retailers find themselves spending outrageous amounts of money in training. Training industry has become the most crippling drug for those who are scrambling to find answers for their sales and profit deficiencies. The problem is all of that sounds great on paper and in theory but most of them fail in application. Every specialist will tell you that the magic to growth is in their field of expertise whether it is the BDC, the sales training, web-site development, digital marketing, F&I training and products, inventory management, service drive processes; the list goes on and on. Human beings behave in accordance with the truth as they believe it. This belief system that we all have is a product of our self-image engraved in our sub-conscious minds through our life experiences. Organizations like individuals also have a self-image created by its leaders and employees. Organizational behavior will not and cannot change to that of desired vision or aspiration if its self image does not support the change and individuals will go back to their belief level and behave exactly as they have behaved before. So all that time, money and energy to improve becomes futile almost all the time.


Becoming customer centric!


Going forward, specifically with the millennial era, focus is now entirely on customer experience no matter what products or services you provide. In the future of mobility and if you can see yourself to become a large fleet operator instead of selling or leasing cars, your entire concept and culture in your business must shift to becoming completely customer centric. In order to institute a wide spread change of this magnitude there are several steps that you will have to take.


First, as the leadership of your organization you and your team members must conduct a self-assessment to find out if you possess the attributes to lead and transition your organization to the new world of mobility. It may be eminent that you and your leadership team first may need the culture development required to influence the rest of your employees. Only then, you will be able to communicate this vision and induce buy in. Your team members with a systematic approach then will first improve their own self-concept, define their own vision, connect their personal life and purpose to that of business and together you will develop that vision for your organization which will become a product of the group to implement. In addition to all of this, your initial hiring process, productive pay plans and employee benefits, each and every process development and implementation will play a significant role in taking your place in this new evolution of transportation.


Whichever direction you choose to go, we provide solutions to create winning results. From a perspective of efficiency and maximizing returns we provide the best tools that have never been practiced in the automotive retail industry. On the flip side, it is our utmost passion to help people improve the quality of their lives. Our culture development curriculum is specifically designed to help auto retailers. It is one of a kind since it addresses all of the shortfalls and characteristics of this industry.


Call us or e-mail us for a no obligation consultation.




Arlan Tarhan