Great stuff! We have seen Paradigm shifts in the auto industry for years now and the question remains, "How well do you embrace change (and technology)? Thanks for the great article.

Brilliant Mark. Great word picture for what is going on currently and where it should be heading. Thanks for the article.

One might say that the existing automotive distribution system or channel will have to change dramatically for Google or Disney to bother with buying dealerships. However, dealerships may not be dealerships in the next 5 years. Then their involvement could be significant. There is nothing innovative in automotive marketing for G or D at present in automotive distribution but we perhaps should watch what Tesla is doing and how technology and data from Google and other big data companies is changing and is going to change the franchise model and how it operates.

Now, THIS should scare a bunch of dealerships! (were it true) Love this!

I think if either Google or Disney got into the game it would be subscription base autonomous vehicles. Both businesses excel in selling services, not products. For Disney, they could also input a "glitch" where you are locked in the vehicle as it drives directly to the nearest theme park.

Okay, so it took 15 years, but now everyone knows what that dude meant when he kept saying, "The Future is an Amusement Park". Disney and Google, what a sensational combination...

I agree with Duckhouser's comment that customers are looking for a relationship when purchasing anything. What brings someone back is the relationship with the staff and the business and if you can instill this into the culture of the business you can create that environment that people look forward to visiting again and again. Nothing is more powerful than a positive referral

Many dealers completed their Disney course, as well as many folks from GM. They learned how to get rave reviews from people who paid a LOT of money to stand in line for hours surrounded by screaming kids. To my knowledge, NO ONE from Disney attended auto retail training where they could learn how to sell cars to consumers, few of whom have "fast track" credit, many who have negative equity in their trade ins, who have to sign upwards of 46 documents, disclosures, disclaimers, etc., many of which are mandated by lenders and regulators, to get the deal done, while still achieving a 90 percent plus CSI score. Funny how people with NO auto retail experience have a better idea how to run our business than the people doing it. Disney needs to send THEIR people to auto dealerships.

Customers used to be looking for a relationship when buying large ticket items. These days, Millennials in particular don't care. They are ruthless. When they move out of their parent's basement we'll take them more seriously.

http://www.adweek.com/news/advertising-branding/millennial-male-not-who-you-think-he-152929

Dave thanks for your insights; as usual you are very observant and make some great points. Yes, many people outside the industry think they can do it better. Most of the time they are wrong (eg. the original AutoNation superstore concept). Then an outsider and retail team from Circuit City came along and started CarMax using a non-confrontational selling process. Their net income last year was $434.3 million and their total revenue was $10.9 billion. Pretty good for non-car experts. As for Millenials not caring about relationships, I do not believe that is true in most cases. Remember they grew up in an age where government politicians, companies and many people in leadership roles proved they could not be trusted; so naturally they are reticent when it comes to relationships. Car sales people are certainly on the list of people not to trust, and that is the reason why my premise of a company like Disney entering auto retailing becomes that more real. As for Disney's skill in navigating what it takes to put a “car deal together” remember they run television networks, amusement parks, animation studios, and numerous cable companies while employing 144,000 employees (2009 figure). I certainly think they have the expertise and can figure out how to handle negative equity on an auto buying transaction. Dealers and third party vendors have trained younger consumers that a lowest price is the best deal. Dealers that continue to pay lead providers promoting low prices hundreds of dollars for closed sales are short sighted and compromising long term viability for short term gain. And in many cases dealers are devaluing everything they have built that is truly important like their reputation in the community and the reputation and professionalism of their salespeople and managers. They have made their product just a commodity. It would not take long for a customer focused, financially disciplined, well-managed company to quickly get up to speed on running a customer friendly dealership that would be incredibly profitable. Virtually every dealer has the ability to improve their operations, but in this environment (making big $$$) most don't have the will to change anything. I wrote this article hoping that some dealers and OEMs would see the value in really improving their way of doing business and rebuilding the good reputation of auto retailing. The reality is, if we don't initiate the change, someone else will!

As a Millennial myself (top end) and spending the majority of my life around other Millennials I concur that I, nor anyone I know, cares much at all about a relationship when purchasing a product. If the product can be purchased in an efficient manner, and the cost/value is correct that is all that matters. So, if something can be purchased online, delivered to my home, and returned just as easily if need be, then I am sold. I don't care if it is from a faceless machine, or from my buddy the Car Salesperson. Now, if things are supper efficient, and there is a relationship that is a plus. But efficiency and price/value are paramount. Just my two cents on Millennials.

I would buy a car from Disney simply to say I bought a car from Disney. That's just my Disney freak side making an appearance though. They already have an automatic debit on my checking account for stock purchases every month. I wonder if I could buy a house from them? hmmm.. (Oh, and yes, you can buy a house from them. Just saying.)

Makes sense... Look at Warren Buffet. He is going to combine the data he has from home buyers (Berkshire Hathaway Realty) and combine that with automotive. Powerful data, indeed! Berkshire Hathaway completes Van Tuyl acquisition http://www.autonews.com/article/20150310/RETAIL07/150319987/berkshire-hathaway-completes-van-tuyl-acquisition