Tesla Sets Itself Up for Trouble — Again


In her latest post, Maryann Keller, principal of MK&A, explains that “Tesla’s production and liquidity woes need a believable strategy that establishes financial credibility. With the Model 3 order book apparently satisfied in the U.S., Tesla has no choice but to attack costs, especially those related to excessive production, which not only include high fixed costs but also lower labor productivity than is typical of other automakers.”


The post can be read at the link below:

Auto Auctions Likely to Change Faster in Next 5 Years Than Past 20

In her latest post, Maryann Keller, principal of MK&A, explains that wholesale vehicle auctions will undergo major change as the space faces disruption from digital startups. Maryann states “auction incumbents are being forced to adjust, and whether they change from within or acquire attractive remarketing companies, the industry is likely to change faster in the next five years than it has in the past 20.”

The post can be read at the link below:


Trade Disrupted (Multi-part Series): “Curb Purchase” Segment Increasing due to Technology and Industry Trends


In this white paper, MK&A explains that new C2B technologies and industry trends are contributing to the growth of the “curb purchase” segment.


  • Emerging C2B tools and services are creating new vehicle remarketing options for consumers.  Growing dependence on used cars by franchise dealers is supporting the growth of these offerings.
  • Franchise and independent dealers are acquiring more inventory directly from consumers and indirectly via third-party C2B services.
  • Increased curb purchases bring efficiencies and conveniences to wholesale and retail transactions.

Automakers Unlikely to Follow Tesla’s Online-Only Model

In his latest post, Jeremy Alicandri, managing director, explains why many industry pundits believe that other automakers will not follow Tesla’s move to online-only sales. He explains “While auto retail will continue to evolve over the next decade and longer, the disruptive changes will come from the mega-mobility trends, and not online sales.”

The article can be read at the link below:

*Photo credit: Patrick T. Fallon/Bloomberg.

Tesla’s Online Model Confuses Industry Experts

In his latest Forbes piece, Jeremy Alicandri, managing director, explains why Tesla’s move to online-only sales is baffling many industry experts from multiple vantage points. Jeremy states “Many industry experts feel that the online-only model is not yet viable for a mass-produced vehicle, and they also question if it will improve Tesla’s profitability.” Jeremy’s post can be read at the link below:


*Photo Credit: AP Photo/David Zalubowski.

As Supercars Become Mainstream, Residual Values Suffer

In this post, Maryann Keller explains that residual values of super luxury and exotic vehicles are weakening, as these once specialty brands become mainstream. Maryann cites data from MK&A’s partner, Stamford-based RVI Group, which publishes a monthly index tracking wholesale supercar prices.

The post can be read at the link below:

*Chart provided by RVI Group.

Share of digital ad spending increases


In this article, Jeremy Alicandri, managing director, was quoted regarding MK&A’s recent franchise dealer advertising study which was released at the NADA 2019 Convention & Expo. The article can be read at the link below:



*Photo credit: AutoNews.

Renault-Nissan’s Loveless Marriage Will Survive This Rough Patch


In this Bloomberg article, Maryann Keller, principal, was interviewed regarding the alliance between Nissan and Renault. Maryann provides historical insights on some of the alliance’s challenges.


The article can be read at the link below:

MK&A Franchise Dealer Advertising Study

MK&A has released the results of its six-month study on franchise dealer advertising. The research is based on 125-plus interviews with franchise dealers, automakers, and advertising executives, and represents over 400 dealerships. The study’s results will identify current and future advertising trends in auto retail, including digital retailing, third-party marketplace sites and traditional advertising mediums.

This study was undertaken to better understand digital advertising trends as well as the current and future role of digital and traditional advertising in the franchise dealership.

To conduct our study, we surveyed nearly 400 dealerships via e-mail, telephone, online, and/or in-person. Our study participants included franchise dealers, independent dealers, automaker executives, and advertising executives throughout the U.S. Over 80% of our survey respondents were auto dealers, including all franchises, rural and urban areas, and both private and publicly traded companies.

Tesla Might Solve Its Cash Woes with Franchise Dealers

In his second post as a Forbes contributor, Jeremy Alicandri, managing director, explains that some of Tesla’s cash woes can be solved if the automaker embraced the franchise dealer model. Jeremy states specific areas where cash can be saved, including inventory management and capital costs.

Jeremy’s post can be read at the link below:


*Photo credit: Getty images.