Should OEMs Dictate Software Choices for Dealers?

In the automotive industry, the relationship between car manufacturers (OEMs) and their dealer franchisees has traditionally been simple: "You build 'em, and we sell 'em." As the digital age transforms vehicle shopping and purchasing, a pressing question arises: should OEMs dictate which dealer management systems (DMS), retailing software, and website platforms their franchisees use? Here, we explore both sides of this debate, with a focus on the dealer perspective.

The Case for Dealer Control

1. Dealer Independence

   • Tailored Solutions: Dealerships are independent businesses with unique needs. Allowing them to choose their software ensures they can select solutions that best fit their local market conditions and business strategies.
   • Innovation and Flexibility: Dealers can adopt the latest technologies and innovations that specifically address their challenges, rather than being confined to a one-size-fits-all approach mandated by the OEM.

2. Enhanced Market Adaptability

   • Local Expertise: Dealers have a deeper understanding of their specific market needs and can choose software that addresses these unique challenges more effectively than a standard solution from an OEM.
   • Competitive Edge: By selecting the best tools for their circumstances, dealers can differentiate themselves and provide superior customer experiences.

3. Operational Efficiency

   • Smooth Transitions: Dealers already using effective systems can avoid the costly and disruptive process of switching to new software. This minimizes downtime and maintains productivity.
   • Vendor Relationships: Many dealerships have established relationships with software vendors who provide tailored support and customization, enhancing operational efficiency.
   • Multi-Franchise Dealerships: Many dealers manage multiple franchises, with salespeople and staff working across different OEMs. Standardizing software across all locations simplifies operations and training, making it easier for staff to work efficiently and effectively.

The Case for OEM Control

1. Consistency and Brand Integrity

   • Unified Experience: Standardizing software ensures a consistent customer experience across all dealerships, which is crucial for maintaining brand integrity.
   • Brand Compliance: OEMs can better manage how their brand is represented online and in-store, ensuring accurate and up-to-date promotional materials and vehicle information.

2. Data Standardization and Integration

   • Centralized Data Management: Standardized software simplifies data collection and analysis, helping OEMs gather valuable insights on sales trends and dealership performance.
   • Seamless Integration: Unified systems make it easier to integrate new features and updates, reducing the risk of compatibility issues.

Striking a Balance

The debate over whether OEMs should dictate software choices is not clear-cut. A balanced approach that considers the interests of both parties might be the most effective solution:

• Guidelines and Recommendations: Instead of mandating specific software, OEMs could provide a list of approved vendors that meet certain standards, offering incentives for using these solutions.
• Customizable Solutions: OEMs could work with software providers to develop customizable solutions that allow dealers to maintain flexibility while ensuring consistency and integration.
• Open Communication: Regular dialogue between OEMs and dealers can help address concerns and ensure that the chosen software solutions genuinely benefit both parties.

How WebBuy Can Help 

WebBuy Omni Sales Platform offers an ideal solution for bridging the gap between OEMs’ desire for consistency and dealers’ need for flexibility. Here’s how WebBuy can help:

1. Customizable Integration

   • WebBuy integrates seamlessly with existing dealership management systems and websites, allowing dealers to maintain their preferred tools while benefiting from WebBuy’s advanced features.

2. Unified Customer Experience

   • WebBuy provides a consistent, high-quality digital retailing experience that aligns with OEM branding and compliance requirements.

3. Advanced Data Analytics

   • Both OEMs and dealers can access robust data analytics and reporting tools, helping OEMs gather insights across their network while allowing dealers to tailor strategies based on local market data.

4. Flexible Financing and Trade-In Solutions

   • WebBuy offers multiple financing options and transparent trade-in evaluations, catering to individual customer needs.

5. Comprehensive Support and Training

   • WebBuy provides extensive support and training, ensuring smooth implementation and operation, minimizing disruptions, and maximizing productivity.

By offering a solution that meets the needs of both OEMs and dealers, WebBuy enables a balanced approach to digital retailing. Dealers can enjoy the benefits of autonomy and flexibility, while OEMs can ensure brand consistency and data integration.