Q4 2023 Disruption Outlook: Dealers weight future distribution channels

February 21, 2024 | The Presidio Group

How automakers distribute vehicles to the market is top of mind for car dealers as they look to their long-term futures.

And while dealers have quashed past efforts by legacy automakers to sell directly to consumers, the specter of such a model eventually becoming dominant in the industry is their greatest fear, according to The Presidio Group’s latest Dealer Direction Survey.

Nearly two-thirds of dealers responding to a survey question on the biggest long-term risk factors for traditional franchised dealerships selected a direct sales model — making it their central concern by a wide margin.