FI showroom red and grey logo
MenuMENU
SearchSEARCH

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.

July 30, 2024
OEMs See Conditions Normalizing

Most automakers said the agency model likely won’t make U.S. inroads in the next five years.

Credit:

Pexels/Erik McIean

2 min to read


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.

Ad Loading...

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%.

Ad Loading...

Originally posted on Auto Dealer Today

More Industry

back seat of an SUV, cream colored leather, text Safety Reigns Supreme, F&I and Showroom logo
Industryby Lauren LawrenceMarch 25, 2026

Crash Avoidance is Top Priority

The Insurance Institute for Highway Safety awarded 63 vehicles for safety, and SUVs lead the picks with more than half of the base and Pick+ awards.

Read More →
Photo of Toyota car parked in front of a Toyota dealership
Industryby Hannah MitchellMarch 23, 2026

2025 Dealership Buy-Sells a Record

The Kerrigan Index shows that despite a chaotic year of musical trade tariffs, high vehicle prices and more roadblocks, acquirers still flush with pandemic-era cash accelerated the consolidation pace.

Read More →
row of SUVS in background with red and white text saying inventory with a down arrow and sales pace with an up arrow
Industryby Lauren LawrenceMarch 23, 2026

Used-Vehicle Sales Jump in February

Softening prices, rising credit availability and higher tax refunds could be behind February’s sales pace rise and accompanying dip in inventory, according to Cox Automotive.

Read More →
Ad Loading...
Photo of Hyundai Elantra being driven on a road
Industryby Hannah MitchellMarch 18, 2026

Fewer Cars Disappeared Last Year

Reported thefts fell to their lowest level in decades, though the risk is still quite real, especially in large metro areas. Meanwhile, Hyundai and Kia nabbings, though still high, slowed.

Read More →
red and white car in front of a car dealership with text Days on Market Divide and logo for F&I and Showroom
Industryby Lauren LawrenceMarch 18, 2026

Used EVs Buck Days-on-Market Trend

ISeeCars data shows a significant gap between used and new days on market, used cars sitting 40% longer while new cars are down 15% year-over-year as of February.

Read More →
storefront for Team Gillman Chevrolet in Houston, Texas
Industryby Lauren LawrenceMarch 16, 2026

Texas Rooftop Gets New Owner and Name

Gilchrist Automotive has added Team Gillman Chevrolet to its auto group, which has over 20 locations across Texas and Oklahoma. The store will now operate as Gilchrist Chevrolet.

Read More →
Ad Loading...
Chris Walsh, president and acting CEO of Reynolds and Reynolds, promoting the company’s Amplify 2026 event for dealership professionals focused on technology and operations.
Industryby StaffMarch 13, 2026

Registration Open for Reynolds Amplify Retail Summit

Advancements with Reynolds' AI Agent, Rey, will take center stage this August at the Park Hyatt Aviara in Carlsbad, Calif., near San Diego.

Read More →
row of cars, used vehicle demand spikes, chart showing data spike, F&I and Showroom logo
Showroomby Lauren LawrenceMarch 11, 2026

Used Market Gains Speed

New-vehicle sales fell year-over-year for the fifth month in a row in February, making retail deliveries the slowest they’ve been since 2023, according to a CarGurus report.

Read More →
Graphic showing used-vehicle days to turn rate
Showroomby StaffMarch 10, 2026

Black Book: Weekly Market Update

Both vehicle values and conversion rates sped up last week as two segments outperformed in the pre-spring burst of buying.

Read More →
Ad Loading...
red Jeep Wrangler driving over rocky terrain
Industryby Lauren LawrenceMarch 9, 2026

Jeep Wrangler Safety Increases

Thanks to improvements made to the frame rail of Jeep Wranglers, all units built after October earn an acceptable IIHS rating for a combination of driver- and passenger-side tests.

Read More →