AEG’s consulting and research services provide an enhanced understanding of the automotive industry marketplace, illuminating opportunities to improve performance. We are one of the industry’s premier consulting companies, having worked with clients in all three tiers, including hundreds of automotive dealerships representing all major brands across the United States. From retail network and sales performance analyses to tax incentives and economic impact studies, our strategies will drive you forward.
Automotive Dealership Advisory Services
In addition to the comprehensive analytical services listed below, the automotive experts at AEG welcome every opportunity to work with the dealership community. Our tailored seminars and presentations for dealer groups and associations, meetings, and events are designed to provide deep insight into factors that impact the auto sales and service markets. Among many others, these topics include economic, industry, and regulatory trends; dealership market assessment tips; maximizing business value; warning signs and opportunities to watch for in the buy/sell process; the franchisor/franchisee relationship; and strategies for navigating the transition to electric vehicles.
Government mandates, manufacturer targets, and the speed (or lack thereof) of change in consumer preferences set the stage for perhaps the most complex transition that dealerships have ever faced.
AEG’s analyses consider your market territory, the demographics of your consumer base, and rigorous analysis of the infrastructure availability along with consumer preference towards EVs, allowing you to make informed decisions in navigating this critical transition.
EV Transition Strategies
Anderson Economic Group offers the industry’s most thorough, comprehensive knowledge of the electric vehicle market from every angle. Whether you’re concerned about public policy, strategic planning, implications for the energy grid, consumer sentiment, or economic impacts, AEG has the insight necessary to navigate your EV-related projects with precision and accuracy.
We provide dealerships with careful assessments of market areas to ensure that territory assignments that offer 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.
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. 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. These independent determinations ensure accurate measures of opportunity in the market.
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.
Manufacturers use specific, complex processes to allocate new vehicles to their dealers. These typically rely on a “turn and earn” principle: as dealers sell cars or “turn” their inventory, they receive (earn) more vehicles to sell.
These programs are often confusing and can be unreasonable, but there are numerous state laws requiring manufacturers to allocate vehicles through a fair and equitable process. We help dealerships large and small to determine if the allocation process applied to their dealership is reasonable, or if they may be entitled to additional inventory.
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 analysis, discounted cash flow models, and sophisticated techniques such as real options or simulation modeling.
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 market and financial analyses provide an unbiased view of the deal. What sets our work apart is a careful focus on market conditions and trends.
Our experts have provided expert testimony and reports for business entities 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.
Anderson Economic Group is proud to be part of the auto dealer family through our active membership in the National Association of Dealer Counsel (NADC), and through our very origins: Our company was founded by (and continues to be led by) a Detroit area auto dealer’s son.
Over the past 25 years, our company has assisted dealerships and their associations across the United States. Our dealership clients have represented top brands that include Acura, Alfa Romeo, Audi, Bentley, BMW, Buick, Cadillac, Chevrolet, Chrysler, Dodge, Ferrari, Ford, GMC, Genesis, 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. Our experts have also worked with Harley Davidson and Suzuki motorcycle dealerships and with commercial and heavy truck dealerships, along with an extensive list of other franchised businesses and brands.
Other Automotive Industry Services
Our industry analysis and 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.
Anderson Economic Group offers the industry’s most thorough, comprehensive knowledge of the electric vehicle market from every angle. Whether you’re concerned about good public policy, strategic planning, implications for the energy grid, consumer sentiment, or economic impacts, AEG has the insight necessary to take your EV-related projects to the next level.
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.
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.
Our automotive consulting experts
Expertise Reflected in Published Work
Anderson Economic Group experts have authored or co-authored several published works on methodology and practice relevant to our work. These include articles in publications such as The Wall Street Journal and The Detroit News, peer-reviewed journals such as Business Economics, and technical papers published by Anderson Economic Group. In addition, AEG experts have written books or book chapters including Economics of Business Valuation (Stanford University Press), Business Economics & Finance (CRC Press), Developments in Litigation Economics (Elsevier), and State Economic Handbook (Palgrave MacMillan).
Success in the marketplace comes from understanding the environment in which customers, businesses, economic conditions, and policies interact.
Our team provides thorough, customized analyses that objectively assess market supply and demand, project feasibility, regional economic conditions, business strategies, and economic conditions. Contact us today to learn how the experts at Anderson Economic Group can solve your most complex business problems.