Canadian auto dealer catches up with Maria Soklis, President, Cox Automotive Canada, to learn more about the company’s plans for Canada, her views on the industry, and what dealers can expect in the years ahead
Canadian auto dealer: As many dealers are aware, Cox Automotive has an increasing number of products and services that are used throughout Canadian dealerships. How did 2017 shape up for the company?
MARIA SOKLIS: 2017 was a really successful year for Cox Automotive Canada. We were one of the top performing subsidiaries for Cox Automotive globally. We are growing in a way that is sustainable. We have about 25 brands, but we don’t have all of them represented in Canada. We continue to look at different markets and expand our portfolio and footprint where and when it makes sense to better meet the needs of our customers. Anything we bring to Canada has to have a place in our evolving automotive ecosystem. If it doesn’t, we are not interested. We really want to be good partners to the dealers and the OEMs and the lenders to help them make good decisions that will help them run more efficiently, effectively, and more profitability to ensure they are sustainable into the future.
CAD: How is the integration going between the various Cox Automotive products?
Ms: Because we have grown through acquisition, the integration piece has been a challenge, but we are making good progress. There is a lot more integration today between our products than ever before. For example, vAuto, VinSolutions, Xtime and Dealertrack integrate really well. We will continue to build integration in directions that will help the dealers’ grow their business meaningfully. We have made significant strides and continue to work with Dealer and Commercial Advisory Boards to ensure we are addressing pain points and provide that seamlessness they are looking for.
CAD: Many dealers are trying to close the digital divide for their customer’s journey, and to create a more seamless online and in-store experience. How is Cox Automotive helping them on that journey?
Ms: It’s really important that dealers continue to embrace digitization. For us, and for our retail business, there are five components that make up a deal: how to get a real payment, the need to get approval, the F&I presentation, the need to get a trade in value and finally to execute a contract. The dealers realize this, but maybe customers don’t realize just how complex this is. Not all customers are the same. Some customers want to complete full transactions online, and other customers don’t. Others want to start something at home or at the dealership and leave it and go back to it when they feel like it. It’s going to be more important for dealers to offer flexibility and Cox Automotive is helping build a product and integration to support this change.
The good news is, we still have the opportunity to change, making it more difficult for the disruptors. Some will learn to co-exist, some will be purchased by larger companies, and others will continue to fight a losing battle if they don’t evolve.
CAD: How do you see the role of the dealership evolving? What changes will they have to make to thrive?
Ms: I’m often asked about what our perspective is about the future, and whether we feel dealers are going to become redundant. We all know we are in the midst of a transformation. Economies all around the world are changing quickly as a result of new technology and policy and consumer preferences. More specifically in our industry, we are seeing trends in mobility, connectivity and alternative drivetrains that are helping to forge a new path forward for the industry. I think there will be new business models and revenue streams deriving from all of this. Digitization is one very important component of this. Dealers are going to need to evolve their operations. They are going to need to address behavioural trends and consumer preferences. If they don’t, they are going to leave a really big piece of the pie for someone else to enjoy. I don’t think there’s a motivation from OEMs to eliminate their dealer network. But I do believe that dealers need to embrace change and be well capitalized. If not, their operation will not be sustainable. It’s going to be complex. If they are willing to evolve, companies like ours are poised to assist them.
CAD: What do you think of the emergence of third party “disruptors” that are building direct relations with a dealership’s customers?
Ms: I think that our industry has invited the threat. We have seen transformation in other industries and we have been slow to change. Naturally, if there are larger companies that identify a competitive edge or opportunity, they are going to sweep in and try to capitalize. So shame on us for not being better prepared and not evolving. The good news is, we still have the opportunity to change, making it more difficult for the disruptors. Some will learn to co-exist, some will be purchased by larger companies, and others will continue to fight a losing battle if they don’t evolve.
CAD: Dealerships sometimes struggle to staff their workforces with enough skilled people that fully reflect the composition of their communities. Is the industry improving in terms of gender and diversity?
Ms: I think as our industry goes through this transformation, dealerships are going to have no choice but to look for people with a very different mindset and skill set to help them move into the future. When you consider that close to 80 per cent of purchases are influenced strongly by women, it’s not very intuitive to treat them differently. I’d like to think that five years from now we are not going to still be talking about gender equality or having to discuss diversity in the workplace, that it will all be very natural.
