2026 OEM Survey Reveals the Future of Dealership Consolidation and Profitability
Dealership buy-sell activity, valuations, and the road ahead for auto retail have dominated headlines lately, and new survey data from Kerrigan Advisors adds fresh detail to the conversation. On today’s episode of CBT News’ Inside Automotive, we’re joined by Erin Kerrigan, Founding Partner and Managing Director at Kerrigan Advisors, to break down the firm’s 2026 OEM Survey and a recent multi-dealership transaction making waves in the Carolinas. Kerrigan reported that the survey received responses from 155 OEM executives, achieving the highest turnout in its three-year history. The results dismiss earlier concerns that automakers might completely bypass dealers. While OEM executives generally expect buy-sell activity to maintain its current record pace or even increase further, approximately one-third of respondents expect a higher volume of deals over the next 12 months than in the previous period, which itself reached an all-time high. Kerrigan Advisors’ first-quarter Blue Sky Report indicated a 21 percent increase in transactions compared to the same period in 2025, placing the industry on track for approximately 500 deals by the end of the year, Kerrigan said. Additionally, she notes that multi-dealership transactions rebounded by 36 percent quarter over quarter. Click here for the full interview.
Toyota’s Koji Sato, Japan’s New Car Czar, Wants Nation’s 7 Automakers to Compete Less, Collaborate More. Industrywide Parts Standardization Is First Step
Japan’s automakers face what executives call a “once-in-a-century” storm, and Toyota’s Koji Sato thinks he has at least one answer: stop competing over nuts and bolts, literally. Instead, the newly appointed national car czar says they should cooperate on standardizing commodity components. That will save time and money to channel into new technologies, advanced factories and better productivity.The envisioned list of newly minted “Japan standard” parts could expand to cover swaths of components made by suppliers at home and abroad, feeding Japanese carmakers worldwide, reports Automotive News.Standardization of wire harnesses alone could boost productivity tenfold, he estimated.The urgent efficiency drive, led by Sato as chairman of the Japan Automobile Manufacturers Association, is one of the most ambitious attempts yet to reshape a sprawling supply base spanning Toyota, Nissan, Honda, Mazda, Subaru, Mitsubishi and Suzuki. The goal: sharpen Japan Inc.’s edge amid an onslaught of costly new technologies and cutthroat new competitors. “Right now, the most important theme facing the Japanese auto industry is improving ‘international competitiveness,’” Sato said in an interview. “We aim to strategically create ‘areas of cooperation’ to improve efficiency, thereby accelerating coexistence in the essential ‘areas of competition.’” Click here for the full story.
Auto Industry Confidence Strengthens Across Sectors, But Tariffs, Affordability and China Top the List of Concerns
Auto industry executives are more optimistic about the road ahead than at any point in the Automotive News Auto Industry Confidence Index’s history — even as they flagged persistent concerns about pricing, affordability and tariffs. The overall industry index rose 2.9 points from the first quarter to 58.5, driven primarily by increased optimism about the remainder of the year from all four sectors measured, as well as continued strong sentiment toward how those sectors look currently.The index measures the sentiment of the auto industry from executives across the globe, both collectively and in four sectors: manufacturers, suppliers, franchised dealers and finance. The weighted overall index score reflects the current business performance of the respondents’ companies and the industry as a whole, as well as their expectations for those performance levels in the coming six months.Scores are on a 0-to-100 scale, with 50 representing a neutral sentiment. Higher numbers indicate a more positive sentiment. This is the fifth Confidence Index, which launched last summer. Results are published each quarter.For the first time in the quarterly survey, respondents from all four sectors of the industry showed optimism about the coming six months with scores above 50. Click here for the full story.
Hyundai Adds Connected Garage Tech to Vehicle Infotainment Screens
Hyundai Motor America is partnering with Chamberlain Group, a manufacturer of garage door openers and security systems, to bring its “myQ” connected garage technology to Hyundai vehicles, the automaker announced in a July 8 press release. This collaboration will allow drivers to monitor and open or close their garage doors remotely, directly from a vehicle’s touchscreen infotainment display. It will be available for select 2024-2026 Hyundai vehicles, depending on model and trim, reports WardsAuto.“This new integration with myQ’s Connected Garage reflects our focus on delivering intuitive, reliable technology that supports customers throughout their ownership journey,” said Manish Mehrotra, CIO at Hyundai Motor North America. “By integrating award-winning connected features into our vehicles, we’re creating a more seamless, convenient experience customers can depend on every day.” The Chamberlain Group is the parent company of LiftMaster, a leading manufacturer of power garage door openers and other security technology. The company developed its myQ smart home technology to remotely control garage doors from anywhere using a smartphone or from a vehicle’s infotainment system, per the release. The myQ connected garage tech is available in millions of vehicles from leading OEMs. Click here for the full story.
Audi Simplifies 2027 Lineup with New Trim Strategy to Streamline Vehicle Ordering
Audi is making one of its most significant product packaging changes in years, introducing streamlined trim structures across select 2027 models. The new strategy consolidates equipment into fewer, better-equipped trims, reducing the number of standalone options and configuration combinations buyers have traditionally navigated. The goal is a simpler ordering process that will, “more easily meet their needs, provide more access to options on entry models, and give customers more flexibility,” according to Audi’s press release. An Audi spokesperson told CDG News that while the company cannot comment on future product plans outside of that which were announced in last week’s model year release, “one could imagine this strategy may be applied to other models as their model lines are updated down the road.” “Audi is following in the footsteps of its German rivals, BMW and Mercedes, and focusing on a ‘package’ approach for these models. By removing some complexity around trim levels, it should be a better experience for shoppers,” said CDK’s David Thomas, adding that most of the luxury automakers still choose to go with the standard trim level approach. Click here for the full story.
Federated Insurance’s Claim of the Month – Taking Employee Complaints Seriously
A new employee came to the general manager of an auto dealership to make a complaint regarding the dealership’s office manager. They stated that the office manager had belittled them, threatened violence, and had created a toxic environment. Others came forward with similar statements, noting that the office manager had mocked employees. The general manager spoke to the two employees at the same time, advising that they didn’t have to like each other, but they did have to get along. Shortly after, the new employee resigned and filed a lawsuit, citing threats of violence and a hostile work environment.
CLAIM AMOUNT: $120,000
Risk Management Tips to Consider:
• Implement and Enforce a Fair Complaint Process: Give employees a clear way to report concerns without fear of retaliation. Investigate each complaint quickly, fairly, and the same way each time. Document each step and any action you take. In high-risk cases, involve HR or legal counsel.
• Train Managers and Employees: Teach harassment prevention, discrimination awareness, proper hiring and termination practices, and documentation standards on a regular basis.
• Enforce a Professional Environment: Communicate to employees that they should avoid sarcasm or gossip, limit personal topics, and use polite language. Remind supervisors that their behavior shapes workplace culture. Click here to learn more.
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