11 March 2022

Trendsetting Dealers Embrace Pandemic-Era Changes

Mobile and remote services, new technology adoption and OEM relationships are key focus areas for dealers through 2024

HOFFMAN ESTATES, Ill. – March 11, 2022 – Inventory shortages and staffing challenges continue to be primary areas of focus for the automotive industry. However, trendsetting dealers are also looking at mobile and remote services, new technology adoption and original equipment manufacturer (OEM) relationships as key opportunities to strengthen their businesses as they transition to a world beyond the pandemic, according to the 2022 Trendsetter’s Guide to Automotive Retail by CDK Global, Inc. (Nasdaq: CDK), a leading automotive retail technology company.

While inventory disruption (82%) and staffing shortages (46%) persisted over the last two years for the dealers surveyed—and are expected to continue in the near term— trendsetters implemented other critical changes out of necessity that they expect to make permanent over the next two years.

  • To support simplicity and convenience in dealership experiences, trendsetters plan to continue offering service pick-up and drop-off (73%) and contactless home delivery (71%).
  • As technology continues to evolve and provide benefits for dealership productivity and the consumer experience, trendsetters will invest more in technology training for their staffs (87%), while adding new retail technology (84%), photos and videos to their service experience (84%) and mobile repair orders (80%).
  • Trendsetters are also looking to forge stronger partnerships with their OEMs (76%) to provide a more seamless shopping experience that transitions easily from digital to physical.

CDK’s research also found that the recent entry of digital used marketplaces into the retail space and the threat of direct sales from OEMs ranked low on the list of concerns with only 22% and 26% of dealers surveyed seeing them as very or extremely impactful, respectively.

In addition, dealers are aware of the expansion of alternative powertrains like EVs; however, only 11% see it as a concern, rather than the opportunity it is expected to be. In fact, dealer confidence is well placed as research done by a leading global consulting firm shows franchise dealers will remain the dominant distribution channel for vehicles well into the future.

“The last two years were unprecedented for our industry, but we came together to weather the storm, and found better, more efficient ways to run our businesses and serve our customers,” said Joe Tautges, chief operating officer, CDK Global. “The findings of our recent research reinforce my belief that this is an extremely exciting time be part of the automotive industry. The next few years will see more seismic shifts in making car-buying and owning better for consumers, more efficient for dealers and more integrated with OEMs.”

CDK will continue its industry conversations with dealers and OEMs at NADA Show 2022 on March 11-13 in booths #2901W and #2701W and virtually at cdkglobal.com/nada2022.

Read more commentary from Joe Tautges, chief operating officer, CDK Global, in his recent blog posted on CDKGlobal.com.

About the 2022 Trendsetter’s Guide to Automotive Retail
The 2022 Trendsetter’s Guide to Automotive Retail survey was conducted by CDK in January 2022 in conjunction among a national sample of 472 dealership department heads and executives. The interviews were conducted online across a representative mix of dealership roles, location, departments and sales volume. To view the whitepaper, click here.

About CDK Global, Inc.
With approximately $2 billion in revenues, CDK Global (NASDAQ: CDK) is a leading provider of retail technology and software as a service (SaaS) solutions that help dealers and auto manufacturers run their businesses more efficiently, drive improved profitability and create frictionless purchasing and ownership experiences for consumers. Today, CDK serves over 15,000 retail locations in North America.

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