By on July 22, 2021

Years ago, waiting for a haircut, dental appointment, or psychological evaluation meant thumbing through a paperback filled with local listings of automobiles you had convinced yourself you might be in the market for. While primarily an exercise for wasting one’s time, there was always a chance you’d run to a payphone or whip our your Nextel to contact the seller so you could begin the delicate dance of commerce.

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By on May 18, 2021

While we’d like to get away from stories about everything becoming more expensive, everything actually is becoming more expensive and it looks like a healthy slice of the population is allegedly willing to go along with it. According to the latest data coming from Cox Automotive, roughly 40 percent of the U.S. population would purchase a vehicle at 12 percent above sticker. There’s always been a subset of shoppers who don’t know when they’re being taken but this represents a healthy share of the country.

It makes one wonder where these surveys were being conducted until Cox summarized the situation as the direct result of a populace beaten down by their environment. Apparently, people no longer expect to find good deals and have not yet reached the point where they’ll feel comfortable driving around in the same busted crate that’s seen them through the last decade as a way to save money.  (Read More…)

By on July 30, 2020

Cox Automotive eliminated around 1,600 jobs this month as it prepared to better embrace online commerce (and nobody having any money). The company axed nearly 300 employees in June after having furloughed over 12,000 people in response to the coronavirus pandemic this spring. A large number of those positions were related to its Manheim auction arm, which suffered the hardest due to stringent lockdown protocols that prohibited public gatherings.

Now it’s talking about improving some of the digital features it added to Autotrader this year and embracing the virtual landscape to future-proof itself while forecasting a 25-percent cut in annual profits, and letting people go  with the majority of the layoffs coming to furloughed Manheim employees. (Read More…)

By on September 19, 2019

Full disclosure time: For those who are new around here, I worked at Cox Automotive for a little over four years as a sales trainer in the Media Sales division. In that role, I was (very) peripherally aware of some of the company’s strategic decisions, as the Sales Strategy team was also part of my larger department, but I didn’t have any influence or advance knowledge of them. (This is a boilerplate statement for when my old friends at Cox decide I’m in violation of my employment termination agreement by writing this.)

When I first started at Cox (before they even called it “Cox Automotive,” it was just Autotrader.com then), the company was a fat cat, to say the least. I remember when one of our leadership team members declared that we had sold $1.2 billion of revenue in a year, and that over $700 million of it was pure profit. I remember when we drastically overpaid for Dealer.com and Dealertrack at a whopping $4 billion dollar pricetag, just because we had the cash laying around and we were going to get heavily taxed on it if we didn’t spend it on something.

Of course, everything has an expiration date, and the third-party automotive classified business was no exception. Around 2016 or so, consumers started using this new thing called “Google” to search for cars on the internet, dealers stopped writing five-figure checks for classified ads every month without even asking why, and sales reps learned that they aren’t actually worth $250,000 a year for just “checking in” on dealers. Their  strategy of diversification, with the purchases of companies like Kelley Blue Book, vAuto, and VinSolutions turned out to have been a smart move, as some of their competitors like Cars.com were stuck holding the note on a company that literally nobody wants. Ouch.

So when I read that Cox Automotive had invested $350 million into Rivian last week, my initial thoughts were, “Oh, there goes Cox burning some more cash,” and I mostly went about my day. However, a week later, I’m beginning to see that there are more wheels in motion than anybody on the outside realizes — and they will have a significant impact on the automotive marketplace in the years to come.

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By on January 25, 2019

Cox Automotive, in conjunction with Automotive News, just released its Retail Brand Scorecards Study for 2018. The survey is interesting in that it ranks the perceived value of automakers by assessing how desirable they are to dealerships via an A-through-F grading system. Though, as engaging as it might be to look at these traits from a highly specific viewpoint (how dealerships see you in relation to specific manufacturers), we’re not sure how useful the average consumer will find them. Dealers and industry geeks, however, may want to take notice.

“This study represents a comprehensive review of brands from a unique perspective — how well they support the success of dealers,” said Cox Automotive Chief Economist Jonathan Smoke. “As we assembled the data and began to see how the brands performed differently, we started looking at the results as grades in high school, where the most well-rounded and high-achieving students are those who perform well across a wide range of disciplines. With that scorecard framework, we found a clear set of brands that are honor-roll worthy, as they are in essence the hardest-working, most successful students.”  (Read More…)

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