OEMs See Conditions Normalizing
More have moved away from agency model plans but see themselves taking more active role in customer relationships, Kerrigan Advisors poll finds.

Most automakers said the agency model likely won’t make U.S. inroads in the next five years.
Pexels/Erik McIean
Automakers have a largely positive outlook on the industry in the next 12 months, according to a just-completed survey of more than 110 brands.
The annual Kerrigan Advisors OEM poll found most automakers see retail profit normalizing and, not surprisingly, a more gradual electric-vehicle ramp-up to realistically match consumer demand. A significant number also expect sales to increase.
Most survey respondents, 54%, anticipate decreased dealership profits over the next 12 months, compared to 69% in last year’s poll. Those expecting flat profits increased from 24% to 41%.
A minority of brands, or 38%, see new-vehicle gross margins returning to levels experienced before the pandemic. Conversely, 62% expect them to settle at 50% to more than 150% past 2019 levels.
While nearly half, 48%, project that sales will be flat, 44% see them on the rise, and a mere 8% expect a sales slump, all despite affordability pressures on consumers. That’s at least in part because automakers expect inventories to continue their upswing, 70% of them anticipating days’ supply normalizing at 60 to 90 days, up sharply from 38% last year.
In good news for auto dealers, Kerrigan says automakers’ slower-than-expected EV sales have changed their views on the agency sales model. A majority, or 57%, said the agency model likely won’t make U.S. inroads in the next five years, compared to 34% last year. A smaller share, 18%, said they anticipate more facility requirements for dealers, down from 32% last year.
As for the customer relationship and data, the survey found most brands expect that OEMs and dealers will share it in the next five years, while 19% think the automakers will assume that exclusively, up by 16%.
Originally posted on Auto Dealer Today
More Industry

European EV Market Hits Record
Seven out of the top 10 electric vehicles sold so far in 2026 in Europe are by European brands, and automakers are seeing the power train fill up their order books.
Read More →
Used EVs Outpace New
While North American electric-vehicle sales remain down year-over-year, May sales saw a 3% increase from April’s numbers as used EVs led the market.
Read More →
Consumer Outlook on the Rise
Younger generations are feeling more positive about their financial futures and current affordability pressures than older generations, according to recent TransUnion data.
Read More →
AutoNation Acquires Top Toyota Store
The automotive group added Toyota of Newnan, a high-performing dealership in Georgia, to its roster of over 300 rooftops across the U.S.
Read More →
Reynolds Names Speakers for Amplify Event
The keynoters will explore challenges that are reshaping the industry, speaking on how dealerships can adapt, innovate and thrive in a rapidly changing atmosphere.
Read More →
Mitsubishi Sets Growth Strategy, Structural Transformation
The Japanese automaker aims to 'strengthen products and technologies that embody its brand identity,' focus on its strongest markets and expand value-chain businesses 'that leverage its unique strengths.'
Read More →
Why Your F&I PVR Is Misleading You
Here’s a handy checklist of the numbers to track in 2026 instead.
Read More →
Need for Speed: EV Apps Lack Consistency
Fifty-five percent of surveyed EV owners said their mobile applications had a major or moderate impact on their purchasing decisions, but connectivity issues remain a problem.
Read More →
Inventory of New Units Stable
Auto brands spent April clearing out most of their 2025 supply with incentives while holding firm on 2026 prices, striking a balance to meet demand and protect their bottom lines.
Read More →
Auto Trade Group Supports Emissions Delay
The Alliance for Automotive Innovation announced its support of a delayed timeline for federal emission standards for light- and medium-duty vehicles.
Read More →