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Tim Jackson served as the CEO of the Colorado Auto Dealer Association for nearly two decades, overseeing a period of significant change and growth in the automotive sector. Having recently retired, Tim brings a wealth of experience and unique insights into the shifts and challenges facing dealerships, especially in the era of electrification.

What We Discuss In This Episode:

A Century of Change:

  • Tim reflects on the 100-year history of the Colorado Auto Dealer Association and the evolving role of dealer associations in the automotive industry.

The Legislative Landscape:

  • Tim provides a deep dive into the proactive and reactive sides of legislation, discussing recent examples from California, Florida, and Mississippi that impact franchise laws, electrification, and direct-to-consumer sales.

Amazon’s Entry into Automotive:

  • David and Tim analyze the Hyundai-Amazon partnership and its potential implications for dealerships, considering the shift from a mere marketing platform to broader involvement in the automotive industry.

OEM Relationships and Business Models:

  • The discussion explores the changing dynamics between OEMs and dealers, touching on the impact of EVs on franchise agreements, below-the-line incentives, and the evolving business models for dealerships.

Bridging the Urban-Rural EV Divide:

  • Tim and I explore the urban-rural EV divide. From the early days of EV tracking in 2011 to the present, we uncover the fascinating dynamics, the disparity in adoption rates, and the intricate dance between dealership demand and regional preferences

EVs and the Pricing Paradox:

  • Venturing into the realm of EV pricing, we discuss the unfulfilled promises of price parity. Tim unravels the evolving narrative from 2011’s predictions to the reality of today’s pricing paradox. We dissect the affordability puzzle and its impact on natural demand, drawing parallels between ICE cars and the iPhone phenomenon.

Margins, EVs, and the Business Conundrum:

  • Our journey takes a detour into the future, peeking into a dealer’s perspective in 2024. Tim sheds light on the multifaceted challenges awaiting dealers — from compliance to EVs, used cars, talent acquisition, and beyond. The focal point, however, remains on the critical question: Where will the margins be in 2024 compared to the bygone years?

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