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We’re closing out the week talking about how industry titan Dale Pollak will leave Cox Auto at the end of 2025. Plus, almost all of the public groups saw F&I gross profit dip in Q3 and apparently OpenAI is building its own web browser.

Show Notes with links:

• Cox Automotive announced Dale Pollak, founder of vAuto and a pioneer in inventory management, will leave the company at the end of 2025 after nearly 50 years of shaping the industry.
  • Pollak will spend 2024 transitioning key relationships and continuing his influential NADA teachings.
  • At January’s NADA Show, he’ll release Invested, his seventh book on vehicle investment strategy.
  • Since founding vAuto 20 years ago, Pollak has driven innovation and success for Cox Automotive, helping dealers optimize inventory.
  • Steve Rowley, Cox Automotive president, expressed deep gratitude: “Dale has poured himself into our company, our customers, and everything automotive for most of his life. We are very grateful for his unwavering commitment.”

• Five of the top six public dealership groups experienced slight declines in F&I gross profits per vehicle in Q3 2024. 
  • Group 1 Automotive was the exception, posting a modest 1% gain year over year, aided by stronger penetration rates for service contracts and new vehicle financing.
  • AutoNation saw the sharpest decline, with F&I profits falling 6% to $2,589 per vehicle.
  • Lithia Motors faced a 2.8% decline due to lower sales of service contracts. However, its captive finance unit Driveway Financial saw profitability rise, financing 12% of Lithia’s vehicle sales.
  • Asbury Automotive's same-store F&I profit per vehicle dropped 4.9% year-over-year in Q3, falling $108 to $2,111.
  • Sonic Automotive posted a 3% drop and Penske saw a 1.5% dip.
  • Jeff Lick of Stephens noted that F&I remained resilient, contrasting with the sharper spikes in new-vehicle gross profits seen during inventory shortages.

• OpenAI is reportedly exploring a ChatGPT-integrated browser and AI-driven search tools, challenging areas historically dominated by Google.
  • A potential OpenAI browser would integrate with ChatGPT, enhancing conversational search experiences.
  • OpenAI is also developing "NLWeb," a tool allowing conversational interactions on travel, retail, and real estate sites.
  • OpenAI has hired former Google Chrome developers, signaling serious exploration of this competitive space.
  • Google, holding 65% of the browser market and 82% of the search market, is ramping up AI in its search platform, starting with mobile changes.
  • Google's monopoly faces scrutiny, with the DOJ seeking to force a sale of Chrome to address antitrust concerns.

Join Paul J Daly and Kyle Mountsier every morning for the Automotive State of the Union podcast as they connect the dots across car dealerships, retail trends, emerging tech like AI, and cultural shifts—bringing clarity, speed, and people-first insight to automotive leaders navigating a rapidly changing industry.

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