All In Besties DESTROY Useless Auto CEO (and it’s amazing) | Summary and Q&A

TL;DR

Car dealerships are facing potential extinction as the rise of EVs, online retailing, and direct-to-consumer sales disrupt the industry.

Key Insights

• 🚙 Car dealerships currently thrive due to their ability to profit from vehicle sales and maintenance.
• 🤔 The NADA convention showcases the latest innovations and thinking in the auto industry, although the absence of Tesla raises questions.
• 😌 The traditional dealership model is being disrupted by compelling EVs and online auto retailers.
• ❓ EV sales are increasing rapidly, and they are expected to revolutionize the industry in the next few years.
• ✋ The high compensation of certain CEOs, such as Mary Barra of General Motors, raises concerns about their competency and the performance of their companies.
• 📦 CEO compensation packages often incentivize financial engineering over genuine company growth.
• 📦 The structure of CEO compensation packages can hinder the creation of vibrant, innovative companies.
• 🎮 Political connections and playing the game often determine CEO appointments and the direction of companies.

Transcript

well well well what do we have here Sam korus of AR invest on X posting this so I can come back in 5 years with a link to an article on Cox Automotive shout out to their 2010 website design hopefully their thinking is a little bit more up to date than their website in the car business quote the more things change the more they stay the same this we... Read More

Questions & Answers

Q: Why are car dealerships currently profitable businesses?

Car dealerships make substantial profits from vehicle sales, negotiation tactics, and maintenance services, taking advantage of customers' limited negotiation skills.

Q: What innovation is disrupting the traditional dealership model?

Online auto retailers like Carvana are challenging the need for physical dealerships, offering customers the convenience of ordering vehicles online and avoiding the negotiation process.

Q: How are electric vehicles (EVs) impacting the industry?

EV sales are increasing and reached new all-time highs in 2023, leading to the expectation that they will disrupt the internal combustion engine industry, potentially rendering car dealerships obsolete.

Q: What factors contribute to the potential extinction of car dealerships?

The rise of EVs, disciplined production strategies, and the convenience of online retailing and direct-to-consumer sales by automotive manufacturers are challenging the traditional dealership model.

Summary & Key Takeaways

• Car dealerships, currently some of the most profitable businesses in the US, make significant profits from vehicle sales and maintenance.

• The National Automobile Dealers Association (NADA) hosts an annual convention discussing the latest thinking and innovations in the auto industry.

• The traditional dealership model is being challenged by compelling electric vehicles, online retailers like Carvana, and the potential for direct-to-consumer sales by automotive manufacturers.