CDK's purchase of Auto/Mate may create a major disruption in the dealer management system (DMS) industry. Here is our take. DOWNLOAD
Dealerships are closing daily. In my local market area over the last week eight stores have closed and a new group which owns three stores is teetering. This after the announcement of the Bill Heard fiasco. This has really affected a lot of people I know and the strong professionals have already repositioned prior to the notice of the closings. I personally worked for a dealer that folded in the early 90's and probably held on longer than what was prudent before finding a new home.
When I look at the closing that have taken place one thing really stands out, in my opinion, is that these dealerships closing was long over due. It was amplified by the current market conditions and poor management and consumer perception finally caught up. The groups that have shut their doors were constantly having problems even when business was good.
This has placed the dealerships that have sound business practices in a position to capture business that these stores were taking out of the market. Yep the strong will survive and these ones standing are in a position to increase their market share. It is capitalism at it's best. The opportunities abound..