Industry Expertise
Automotive Services

AEG’s consulting and research services provide those in the automotive industry an enhanced understanding of the marketplace, and opportunities to improve performance. We are one of the premier consulting companies in the automotive industry, and have worked with clients in all three tiers within the industry, including hundreds of automotive dealerships representing all major brands across the United States. From retail network and sales performance analyses, to tax incentive and economic impact studies, our strategies will drive you forward.

Automotive Dealership Advisory Services

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.

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.

Many factors can result in dealerships losing sales, including business interruptions or dealership network changes. We quantify past or potential lost sales for dealerships so that they can be armed with reasonable estimates to better make the difficult decisions they face during these times.

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.

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.

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.

Automotive manufacturers use numerous incentive programs that are focused on increasing their sales and exerting control over dealerships’ operations. These incentive programs are now responsible for keeping most dealerships profitable. We help dealerships determine the reasonableness of program requirements, and decide whether to participate in certain programs during certain time periods.

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.

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.

Location. Location. Location. It still matters. We assist in identifying the best location within a market for expansions and relocations. We determine geographic areas of advantage based on customer proximity, road networks, travel times, and buying patterns. These independent determinations ensure accurate measures of opportunity in the market.

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 Acura, Alfa Romeo, Audi, Bentley, BMW, Buick, Cadillac, Chevrolet, Chrysler, Dodge, Ferrari, Ford, GMC, Honda, Hyundai, Infiniti, Jaguar, Jeep, Kia, Lamborghini, Land Rover, Lexus, Lincoln, Lotus, Maserati, Mazda, Mercedes-Benz, MINI, Nissan, Porsche, Ram, Rolls Royce, Subaru, Toyota, Volkswagen, and Volvo. We have also worked with Harley Davidson and Suzuki motorcycle as well as heavy-truck dealerships, and are active members of the National Association of Dealer Counsel (NADC).

Other Automotive Industry Services

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.

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.

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.

Our automotive consulting experts

Cristina Benton

Director, Market & Industry Analysis

Sara Bowers

Senior Analyst

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.

Success in the marketplace comes from understanding the environment in which customers, businesses, economic conditions, and policies interact.

Our team provides thorough analyses—customized for each client’s unique requirements—that objectively assess market supply and demand, project feasibility, regional economic conditions, business strategies, and economic conditions. Contact us today and find out how we can solve your most complex business problems.

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