is most likely strained.
This combination may cause cashflow issues and the need to raise more private funds to weather this storm. With the controversy, new funding on a private equity level would be tougher or much more expensive causing initial investors to be diluted.
The key behavior to watch is whether dealers accept their new subscription model (or new hybrid yet to be disclosed) which is designed to appease State and Federal regulatory concerns.
If TrueCar can remove legal concerns, will dealers forgive and forget executive commentary that was hostile to dealers? Would dealers come back if data concerns are resolved?
If Scott Painter resigned, would that change the view of dealers if a new executive was placed in the head office?
Time will only tell if Larry's prediction that TrueCar is not going away will be the case or will the ill feelings generated by their executive team be their undoing.
re just about anyone that would use the serve is using the service.
Early adopters are not moving on, because there's no place for them to move on to. Facebook caused the decline of MySpace, and MySpace caused the decline of Friendster. Facebook has reached a dominance of the social networking space not unlike Microsoft's dominance of the PC operating system market that took hold in the early 90's. This makes Facebook very difficult to topple, even if a better solution comes along.
Smaller social networks like LinkedIn will continue to thrive because they serve a niche need. Networks like LinkedIn, however, are not mutually exclusive with Facebook, and people will maintain a presence on both.
Facebook's 2012 IPO will very likely be the biggest the markets have ever seen. It currently has a $60b valuation and is making money hand over fist. This contrasts them greatly with dot com IPOs from 12 years ago.
Facebook isn't going anywhere, and any dealer not utilizing it is seriously missing the boat.
More than 1.1 million cars are expected to be sold in October, a prediction that will mark the best October since 2004 if realized, J.D. Power noted.
This October is expected to be about 6% better than a year ago, which is great, KBB noted, considering that Labor Day deals in September and Black Friday deals in November typically keep consumers off dealer lots in October.
The driver, the vehicle information site said, are incentives. “One cause for concern is the rising levels of incentive spending in the industry,” said Alec Gutierrez, senior analyst for KBB. “Since inventory levels have remained consistent, this isn’t a red flag quite yet, but it does underline that the natural industry growth we’ve had in recent years is slowing.”
Both companies expect the industry SAAR for total light vehicle sales to hold at more than 16 .3 million units, with J.D. Power noting that growth in SUV sales has been a boost to the industry. “The market is clearly seeing a second wave of SUV popularity that will likely dominate market share for the foreseeable future,” said Jeff Schuster, senior vice president of forecasting at LMC Automotive.
KBB noted that Fiat Chrysler enjoyed another strong month, with growth approaching 20% mostly on sales of the Jeep Cherokee. Without the popular SUV, KBB predicted that the company’s growth would have been significantly lower.
The popularity of compact SUV’s in particular has made it the fastest growing segment in the market cutting into sales of compact and mid-sized cars, according KBB. The firm also found that the light pickup truck market was growing as well. “Big gains are expected from the Ram pickup and solid numbers should be reported for both the Chevrolet Silverado and GMC Sierra,” said Gutierrez.…
sful marketing efforts. Recent AutoTrader research shows that only about 22% of people shopping for a used car on-line submit an email lead, and that's up from about 20% seven years ago, so growth in email leads isn't keeping pace with the growth of on-line car shopping - by a huge margin. People just don't want to submit leads. Another AutoTrader.com study of customers actually on dealer lots showed that 81% of them had walked on to the lot without ever calling or emailing first. AutoTrader.com's CEO Chip Perry shared some insights recently at an auto forum in New York about the evolution of on-line auto marketing and how the focus on leads may be causing many dealers to mis-direct resources. You can read more about his thought here. http://autotrader.mediaroom.com/index.php?s=43&item=200 If you are an AutoTrader customer, reach out to your sales rep and ask them how you and ATC can work together to sell more cars. If you are not, reach out to your rep at which ever company you work with and ask the same questions. Internet marketing can be complex and while pushing your inventory to as many sites as possible - free and paid - is one strategy, is it the right one for you?…
w a great company that wasn't so great. I am not going to say who it was, but they were in the market for several years, and the growth was like watching paint dry in the extreme heat. They would sell the customer and then month or two later bye bye.
They got some money, took some very good advice and hired an entire support training team. A team that become of great need to the dealership cause they brought value in a consultive manner to the dealer. Not a person coming in to share reports, a person who came in and say I found a another way for you to make money, and it's not going to cost you anything. Bingo, this company currentley and still dominate the space, and will for a long time. They have made some real bad decisions, but still continue dominate because of support and a consultive support that dealers need.
Ruben If I can help you in any way, please feel free to contact me anytime.
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