Two auto retail rivals recently used quarterly earnings calls to highlight their digital strategies. One was celebratory. The other was subdued.
Top dealership group Lithia Motors crowed about its digital progress, both now and in the context of future expectations. AutoNation — bumped this year to No. 2 on the annual Automotive News list — was much more circumspect, talking about digital and other investments with the promise of future results.
Lithia disclosed during its April 19 earnings call that its online channels — including its Driveway digital retail tool — attracted 11 million unique visitors during the first quarter. That's a nearly 96 percent jump over the same period a year ago, Lithia COO Chris Holzshu said during the call. He added that the results show "a continued demand by consumers to expand the shopping experience from home."
Lithia's growing online options complement its in-store options to give customers a strong omnichannel experience that will help it with future growth, CEO Bryan DeBoer said. Omnichannel refers to technology and processes aimed at providing a seamless buying experience for consumers whether they shop online, in-store or both.
AutoNation has touted its digital investments in the past. In December, for example, it announced its acquisition of a minority stake in TrueCar, an automotive digital marketplace. The company has also periodically publicized upgrades to AutoNation Express, its integrated digital retailing platform pitched as part of its own omnichannel experience.
During the company's first-quarter earnings call on April 20, however, AutoNation CEO Mike Manley referred to those efforts obliquely.
"We've taken a number of actions to extend the value creation of our core business by increasing the depth and breadth of our product and service offerings while providing a convenient, trusted and transparent customer experience," Manley said.
That includes digital efforts and the TrueCar investment along with the acquisition of finance company CIG to create its captive finance arm, AutoNation Finance. Construction of more AutoNation USA used-car stores is also on the horizon, and customers can use a robust website to shop.
Manley explained that the digital and other investments will not have a material impact on the company's near-term results. That means the investments seem to not be producing dividends just yet but hopefully will down the line.
"We have put in place critical pieces for our future," he said.
