AEG's consulting and research services provide those in the automotive industry with enhanced understanding of the marketplace, and opportunities to improve performance. From retail network and sales performance analyses, to tax incentive and economic impact studies, our strategies will drive you forward.
Automotive Dealership Advisory Services
- Sales Performance Analyses
We help dealerships maximize their potential within assigned trade areas, and evaluate sales performance relative to factory-prescribed measures, such as the RSI or MSR. We consider sales penetration, sales-distance relationships, competitor locations, incentive offerings, and product allocation to properly measure market potential while identifying opportunities for additional sales. We also offer Market Snapshot Reports
for those seeking current and projected demographic data.
- Market Strategies and Network Analyses
Superior representation in the marketplace requires the strategic allocation of finite resources. We develop strategies that best leverage your limited product, personnel, equipment, and finances. Our Geographic Information System (GIS), combined with data on traffic, demographics, and customer addresses, allows us to pinpoint optimal locations for individual retail locations, or several locations covering a broad geographic area.
- Market Area Geographic Fairness Assessments
We provide careful assessments of market areas to ensure dealerships are assigned a territory in which they have a true sales and service advantage. This is done to ensure that dealership performance is appropriately measured. Market areas that are too large result in inflated sales performance targets, facility size requirements, planning volumes, and other metrics that dealerships are asked to meet. Our team carefully considers all market conditions to identify or verify the appropriateness of assigned territories.
- Acquisition Due Diligence
Our market and financial analyses are used during buy/sell transactions to provide an unbiased view of the deal. What sets our work apart is a careful focus on market conditions and trends. We realize that the transaction involves more than just a facility and inventory. The local market, and their future demand for the product, is the true source of value, and thus the primary focus of our analysis.
- Lost Profit and Damage Calculations
We specialize in estimating damages and lost profits resulting from business interruption, breach of contract, illegal competitive practices, and other such causes. Our methods include analysis of financial and operational records, industry and competitive analyses, discounted cash flow models, and sophisticated techniques such as real options or simulation modeling.
- Business Valuations
Determining a dealership’s value requires financial, market, and product expertise, all of which our team offers. Our valuations consider prior performance, expected market trends, brand performance, product appeal, and competitor positions. We have assisted a number of dealer-principals in buy/sell matters, and in determining values for estate, gift tax, succession planning, and other such purposes.
- Expert Testimony
Our experts have provided expert testimony and reports for dealerships across the country in matters involving terminations, add point contests, damages and lost profits, business valuations, market area disputes, breach of contract, and land use and zoning disputes.
- Site Selection
Location. Location. Location. It still matters. We determine geographic areas of advantage based on customer proximity, road networks, travel times, and buying patterns. These independent determinations ensure fair territory assignments and accurate measures of accountability. We also assist in identifying the best location within a market for expansions and relocations..
- 20 Group and Association Presentations
We welcome every opportunity to work with the dealership community, including presenting on a variety of topics at "20 Group" meetings, association events, and other such venues. Topics include the state of the economy, industry and regulatory trends, dealership market assessment tips, what dealers can do to maximize business value, and what to consider during the buy/sell process.
We have worked with dealerships and their associations across the United States, including those for Buick, Chevrolet, Cadillac, GMC, Ford, Lincoln, Chrysler, Jeep, Dodge, Toyota, Honda, Kia, Hyundai, Nissan, Volkswagen, Volvo, Subaru, Mercedes-Benz, and BMW. We have also worked with Harley Davidson and Suzuki motorcycle dealerships, and are active members of the National Association of Dealer Counsel (NADC).
Other Automotive Industry Services
- Industry Studies and Benchmarking
Our industry analyses or benchmarking studies help those in the automotive industry better understand their market position, strategic options, and hidden weaknesses. We can determine industry employment, occupational trends, average wages, growth and contraction trends, and strengths and weaknesses. We can also estimate economic and fiscal impacts for the industry as a whole, and for unique sectors within the industry.
- Policy Studies
AEG has worked with original equipment manufacturers and their associations on policy issues that affect the manufacturing and the sales side of the industry, including CAFÉ, environmental justice, taxes, and other factors. Please see our Public Policy
page for more information.
- Strategy Consulting and Investment Risk Analyses
Our strategic valuation methods recognize critical elements of investment opportunities that traditional models, like discounted cash flow, fail to consider. This provides our clients with significantly better results that account for real options, such as the option to shut-down a line, repurpose a facility, or switch suppliers. We model your ability to adjust to new conditions, and the costs and benefits of doing so. As a result, our strategies are shaped not only by data, but also by your options and likely actions.
Expertise Reflected in Published Work
A number of Anderson Economic Group experts have authored or co-authored published works on topics of relevance to the automotive industry, including articles in publications such as The Wall Street Journal and The Detroit News, as well as journals such as Business Economics, and working papers published by Anderson Economic Group. In addition, chapters in the book Business Economics & Finance (CRC Press) and portions of the chapter in the book Developments in Litigation Economics (Elsevier) describing valuation, damages, retail sales analysis, and other topics of interest to the automotive industry.