Adapting AI to Auto Dealership Operations Is a Work in Progress
Kyle Pisani, a partner in Drive Point Auto Group, is a believer in artificial intelligence. “We use it in every aspect of the business,” he told WardsAuto in a Zoom call. But while it has created efficiencies and even boosted profitability, AI doesn’t yet meet all of a dealership’s needs, he cautioned.Drive Point Auto Group has seven rooftops, all in Ohio, representing nine brands including Kia, Hyundai, Toyota, Chrysler, Dodge, Jeep, Ram, Chevrolet and GMC. The group “really dove in” to using AI in April of 2025, Pisani said. Some areas where Pisani sees AI making a real difference include:Leveraging data to maximize sales. Drive Point has AI produce sales reports that include a dealership’s sales history, incentives and inventory levels, all on one large sheet. Those reports go out to general managers and help sales teams find opportunities based on inventory levels and incentives.Gaining insights into dealership operations. For example, AI discovered Drive Point Auto was taking payment on repair orders before they were closed. That is “a question I wouldn’t ask,” Pisani said. He would never have caught the practice without AI, he said.Click here for the full story.
Erin Keating Breaks Down Dealer Sentiment as Q2 Confidence Rises but Uncertainty Builds
Dealer sentiment is improving, but dealers aren’t feeling great about what’s ahead. The Q2 2026 Cox Automotive Dealer Sentiment Index shows confidence rising for the second straight quarter. But expectations for the months ahead dropped sharply. Rising costs, tight inventory, and political uncertainty are all weighing on the market. On this episode of CBT News’ Inside Automotive, Erin Keating, Executive Analyst at Cox Automotive, breaks down what the data really means for dealers and what they should be watching in the months ahead. The economy is the dominant concern for dealers right now. Political climate moved up the list for franchise dealers, surpassing interest rates as a top worry. But when Keating looked at the open-ended responses in the report, one theme kept surfacing above everything else. “When you looked through all of the verbatims, the words that came up the most [were] fuel and energy costs,” said Keating. Fuel and energy costs are shaping how dealers view their own cost structure and how they think about what consumers can afford. Click here for the full interview.
Sonic Automotive’s Used-Vehicle EchoPark Expansion Rolls With 2 Stores, Ad Campaign
Sonic Automotive Inc.’s EchoPark used-vehicle business — with goals to reach 1 million in sales and become a household name — is again in expansion mode after paring back during the COVID-19 pandemic inventory crunch. Two EchoPark stores are under construction in Florida, with at least one planned to open by year end. Three to four more locations in high-population U.S. areas will open annually beginning in 2027, Sonic President Jeff Dyke told Automotive News.In addition to the Florida stores being built in Fort Myers and Orlando, Dyke said EchoPark’s near-term expansion will be in states with a large number of vehicle buyers, such as California, Texas and more Florida markets. The Jacksonville, Tampa and Pensacola areas are a focus in Florida, and Austin is a target in Texas, he said.“If it makes common sense, we’re probably opening a store there,” Dyke said. The rollout is part of the Charlotte, N.C., auto retailer’s effort to build the used-vehicle retailer into a 1 million-unit operation. It has a way to go. EchoPark stores sold 67,636 vehicles last year. Click here for the full story.
US-Iran Deal May Not Bring Quick Relief for Auto Shops
Tokyo auto shops and Detroit car dealerships have been running short of motor oil, paint and other products for months since the Middle East conflict snarled global supply chains. Now, while a potential deal between the U.S. and Iran may bring an end to the fighting, industry experts and executives say it is unlikely to deliver immediate relief to the smaller shops that have been squeezed by Tehran’s shutdown of the Strait of Hormuz. Closure of the strait has blocked almost a fifth of global oil flows and led to bottlenecks for some petroleum-derived products. President Trump said on Monday a preliminary agreement to end the war has been signed both countries although details remain unclear, and it may take some time for shipments through the strait to return to normal. Some automakers in the U.S. are already taking action in response to looming shortages. Nissan Motor started implementing oil-rationing measures “to help ensure consistent supply” across its dealerships, according to a memo sent to U.S. dealers on May 20. A Nissan spokesperson told Reuters the company is “working with supplier partners to identify additional sourcing.” Click here for the full story.
Toyota Dealer Logs Three Record Months Tied to Use of MPI Videos
Toyota of Montgomery in Alabama began utilizing MPI videos in its service lane earlier this year and the results have been hard to argue with. Service Director Joel Love says the store is on a streak of three record-breaking months.“We are looking forward to breaking another record this month,” Love told Sam D’Arc during Fixed Ops Friday on CDG’s Daily Dealer Live. The dealership began using the videos in January. The technicians bought into the effort even after some initial pushback. “I had one technician, he argued with me about doing them at first, and then he saw how many hours he produced after his first month,” Love said. Love added that he compared the MPI experience for customers to that of a trip to a doctor’s office and getting medical advice straight from the doctor. “That’s what I’ve instilled into my technicians. ‘Hey, you’re the doctor,’” Love said. “’They want to hear from you.’” On service orders, the dealership is at an 88.7 percent delivery rate with the MPIs, with customers opening the MPIs at a 63 percent clip. Click here for the full story.
Around the Web
Electric Vehicle Outlook Sinks After US Withdraws Policy Support [Bloomberg]
These Vehicles Are Dead for 2027 [Car and Driver]
Iowa’s 55 MPH Rural Highway Limit Is Finally Going Up [Autoblog]