The US$8 billion automotive and media conglomerate, Cox Enterprises, has plans to enter the Australian market, currently dominated by auto classifieds giant Carsales.
Cox Automotive chief executive Sandy Schwartz said in an interview with The Australian, that the future of car sales, and their servicing will be done through websites that looked more like Apple or Amazon stores.
Further stating that the millennial generation is looking for more online activity, with much more being done away from the actual dealerships, including credit arrangements, rendering the process of buying a vehicle much more streamlined, and a 24/7 business.
Currently Cox Automotive generates approximately US$8 billion in revenue annually, of which US$1 billion comes from markets outside of the US. Australia has “nice moderate” growth potential, according to Schwartz.
In 2016, Cox Automotive merged its Australian assets, Manheim, Dealer Solutions and Sell My Car, with auto classifieds group CarsGuide after News Corp Australia sold its 50 per cent stake in the latter group. Currently Cox Automotive Australia is 30 per cent-owned by DealerMotive, some 60 dealer groups which represent approximately 600 dealerships around Australia.
In addition to auction giant Manheim, Cox’s global business owns Autotrader.com and Kelley Blue Book as well as vAuto, which offers software and technology to dealers in order to improve their used vehicle department sales.
The rivalry between Carsales and Carsguide in Australia has been a heated one over the years, in 2015 it even ended up in the courts. According to Schwartz, Cox is not aiming to “be what someone else is,’’ its goal is to instead focus more on what they can provide to the market. The key to the company’s success, according to Schwartz, is its data.
The above article was sourced and edited from The Australian, and can be read in its original form here.