Greenfield Outlines Future of Automotive Retail For the third VADA Annual Convention in a row, industry analyst and investor Steve Greenfield, founder and CEO of Automotive Ventures and a respected voice in auto technology and investment, delivered a sweeping look at the current and future state of automotive retail. Greenfield drew on decades of experience and insights from both traditional and emerging markets, and walked dealers through major forces shaping their business, from EV adoption and Chinese competition to artificial intelligence (AI) innovation and evolving consumer preferences. His bottom line: The dealership model remains resilient and adaptable, but dealers must embrace innovation, stay vigilant against external threats, and never lose sight of the customer. Here are his takeaways: DEALER PROFITABILITY AND THE POST-COVID PLATEAU • Profitability remains well above pre-COVID levels, but margins are trending back toward historical norms (~2-3% net profit). “And I don’t see that changing,” he said. • The strength of the dealership model lies in its adaptability and diversification. Successful dealers manage up to eight interdependent profit centers. • Dealers’ ability to reallocate resources quickly across departments has helped maintain resilience through disruptions. 14 Virginia Auto Dealer
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