change dramaticallyis home delivery going to stick aroundit depends on your dealer but for most dealers the time sales reps would spend dropping off and picking up cars to individual consumers houses for test drives or deliveries is not costeffectivemargins at most dealers are under 5 so youre on a razorthin margin anyway tynan says for used cars the margin is about 75 and the closing rate of driving a car to someones house for a test drive isnt much higher than not so how are you going to incur these additional delivery costson the other hand anspach says some postcovid19 dealers will be more willing than ever to service customers however they want to be servicedwhether its pickup and drop offfor a lot of dealers itll be the car will be here and running ill text you when we are on our way you dont have to even speak to me he sayshow will the auto industry recover from thisin a word trucksa big part of the recovery and we did see this in april is that from the manufacturer to the retail channel to the dealer the key is sellable productsand sellable products are trucks tynan says if youre going to dig out of this youre going to get your best shovel and its just simply trucksindeed according to bloomberg intelligence 75 of autos sold in april in the us were light trucks which includes suvs hyundai for one has taken advantage of the numbers by april hyundai had increased its truck mix by 11 percentage points over 2019 up to 54 trucks from 43 trucks and adding such models as the venue crossoverwhen you think about the revenue and the profit side of the business thats where you have to live says tynan you want to do more with less volume is going to be beat up for a while so you have to have the higher revenue contribution and the higher profit contribution thats just the way its going to be so at the retail level thats the mindset give me truckselsewhere automakers must simply move forward with projects already under waywhen people are working from home theres only so much you can do to help something move forwardbut theyre still moving forward says brinley the anticipation is that its fundamentally temporary its maybe just going to be longer than we expected etauto live panel discussion way forward for dealers in covid19 crisis bloomberg published on may 18 2020 at 0818 pm ist telegram facebook copy link be the first one to comment comment now comments comment now read comment 1 all comments post post find this comment offensive choose your reason below and click on the submit button this will alert our moderators to take actions reasons for reporting foul language defamatory inciting hatred against a certain community out of context spam others report join the community of 2m industry professionals subscribe to our newsletter to get latest insights analysis download etauto app