You’ve seen how dealerships operate in Dubai and now in the U.S. Who do you think is more innovative and open in terms of the willingness to experiment with the latest trends and technologies?
It’s a tricky comparison because the markets are so different. Dealerships in smaller markets like Dubai or Denmark may have different operating models that result in different relationships with manufacturers, and potentially more control over the full customer experience. That makes it easier for them to experiment with new technologies or processes. The U.S. market is on a whole other scale. The market is massive and highly fragmented. Different states, local regulations, franchise laws, and consumer protection rules make experimenting riskier and more complex. Launching something new takes more effort, and the learning curve is steep. That said, the potential payoff is huge. While smaller markets may be “riper” for experimentation because changes can be implemented quickly and seen across the market, a successful innovation in the U.S. can scale massively.
What’s one outdated assumption U.S. dealers still make about the car-buying journey?
In the past, dealerships had complete control over the car buying process and critical information. They were the only source for pricing, financing models, and services, and their guidance was the main way to build trust. But that’s changing. Buyers now have easy access to this information and much more online. The idea that “the dealer knows best” is losing relevance. Dealerships still play an extremely important role. It’s not that people don’t want to see the car—they do—but the rest of the buying process has been overly complicated. Historically, that complexity pushed buyers to rely on dealers. In markets like Europe or Asia, the process is much simpler and more transparent. The pandemic accelerated this shift, with digital buying platforms and services like Carvana showing that buyers can handle much of the process themselves. Dealers who don’t adapt risk clinging to a model that no longer reflects how people shop for cars.
What’s something dealerships in the US think they’re doing well, but the rest of the world does better?
The U.S. could learn a lot from other regions when it comes to the buying experience. In many Asian markets, the process is smooth, clear, and enjoyable. Showrooms are part of the experience, but the purchase and post-purchase steps are well-organized and transparent. In the U.S., the buying journey can feel unnecessarily long and complicated. Buyers spend hours negotiating prices, financing, and add-ons for a car that already has a set MSRP. Other markets make it clear upfront what the cost will be and minimize the time buyers spend at the dealership.
What major trends from the past few years are still gaining momentum today?
Direct-to-consumer brands like Tesla and Lucid are changing customer expectations fast. People wonder why traditional brands like Toyota or Chevrolet can’t offer the same experience. The challenge often comes down to legacy systems, dealership networks, and franchise laws. Consumers are less tolerant of ambiguity and unnecessary complexity. In many industries, such as FMCG retail, travel and even banking, most interactions are online and intermediaries are less critical. Car buyers are starting to expect the same. AI is also shaking things up. Buyers can research cars, compare prices, and get trade-in valuations online without relying on a single source of truth. The knowledge buyers bring into the process is growing rapidly, and dealerships will need to keep up to meet these evolving expectations.
Do you think the fear of AI replacing jobs is louder in the U.S. than in other markets?
Not just in the US but the type of job is more relevant when discussing this. There are roles that are more likely to be affected by AI than others. Jobs involving repetitive tasks or that follow a strict manual, like running call centers or data processing, are already being augmented or replaced by AI, which can process information faster and more efficiently. But AI is still a tool. Humans are needed to make decisions, take responsibility, and manage the process. We’re at the beginning of the AI revolution. The real impact will likely be in efficiency gains rather than massive job loss. AI can give you the facts, but it can’t replace the depth that comes from people who live and breathe this industry.
If you could buy a dealership right now, what are some AI tools you would implement right away?
If I were running a dealership today, the first place I would implement AI is in areas where it can immediately boost efficiency. Tools like AI-powered call centers, website chat, and business development centers can handle high volumes of inquiries more effectively than humans alone. They can process information quickly, provide consistent answers, and free up staff to focus on more complex, personalized tasks. Humans are still essential for judgment, decision-making, and taking responsibility. The real gains come from making employees more efficient. For example, a used car procurement manager can now rely on AI to analyze auctions, compare market prices, and make recommendations quickly. AI can process data far faster than a human, allowing one person to achieve what used to require many. The key to success is good data. AI can only deliver strong results if the information it relies on is clean, accessible, and well-organized. Once that foundation is in place, the potential for efficiency, scalability, and smarter decision-making in dealerships is enormous.
Hot Takes
1. Could Trump’s new tariffs shake up the auto industry in ways we haven’t seen before? What are your thoughts?
Jad’s Take: I definitely think the tariffs are having an impact. The cost of goods is going up, which was part of the objective. He is trying to drive more local production. But there are some unexpected consequences. Some smaller businesses that source from outside the U.S. are being hurt, even though a lot of the intellectual property and design work is happening domestically. The U.S. is strong at creating ideas, but stopping some of that overseas production might not be the best move for the economy.
David’s Take: I agree that we’re just starting to see the effects. The immediate impact is on the cost of goods, though so far manufacturers have absorbed some of that cost, so it hasn’t fully hit retail yet. The bigger question is whether and how much of the manufacturing will shift back into the U.S. and how that will affect both the industry and customers. The tariffs are pushing U.S. businesses to reconsider how much they rely on other countries, and we’re still waiting to see the full impact.
2. Do you think the auto industry is keeping pace with how fast technology is evolving in other sectors?
Jad’s Take: I agree. This isn’t just a U.S. issue. The auto industry globally moves slower than other sectors. Vehicles are complex products with many parts and ongoing service requirements. Unlike simpler industries, like selling a t-shirt or even electronics, there is a lot more data to manage, often siloed across different systems. That complexity slows down the adoption of new technologies and keeps the industry from moving as fast as other sectors
David’s Take: Honestly, I don’t think the auto industry is keeping up. A big part of that is the complexity of the market. In the U.S., for example, there are 50 states and countless local regulations, which makes it really hard to create a tech solution that works everywhere. Unlike other retail platforms like Amazon, where you can roll out one product nationwide, tech vendors in the automotive space have to adapt market by market and brand by brand. That is why we see stagnation in innovation. The companies that are moving fast, like Tesla, Carvana, or Lucid, don’t have the legacy baggage. They have more control over the customer journey end to end, take full responsibility for the experience, and implement new tools quickly. Traditional automakers, with multiple brands and dealerships reporting back to OEMs, move slower because every change has to go through layers of decision-making.
3. With direct to consumer models gaining traction, is the traditional dealership franchise model still relevant in today’s automotive landscape?
Jad’s Take: I slightly disagree, but with a caveat. Franchise dealers have a lot of power because of their geographic reach and long-standing customer relationships. That is why some brands still rely on them. However, if OEMs don’t give these dealers more tools, support, and flexibility to adapt to the market, they will struggle to compete with direct-to-consumer models. Growth and relevance will depend on how well franchisees evolve with changing consumer expectations and technology.
David’s Take: Yes, there is still a place for the franchise model in the U.S. The market is big and complex, and legacy OEMs would struggle to handle everything—inventory, delivery, service, returns, and finance products—without dealerships. Newer manufacturers have more flexibility, but even some, like Grenadier, rely on existing dealerships for infrastructure. For now, the franchise model remains important.
David’s counter: Dealerships aren’t standing still. Many are cleaning up and unifying their data across DMS, ERP, and CRM systems to gain better control and efficiency. The industry is moving toward a more modern way of operating. The franchise model will still play a role, at least for now, and dealers are taking steps to future-proof themselves.
