Weekly Circles Briefing · Dec 19–26, 2025
Based on 1,000+ dealer-only conversations across franchise and independent rooftops in CDG Circles.
Big picture: Operations slowed for the holidays, but the dealer community is intensely focused on three areas: navigating a spike in cybersecurity threats (Ransomware, 700 Credit), re-evaluating "velocity" pricing models that are hurting front-end gross, and implementing AI for training and voice. Stellantis dealers are facing significant headwinds with volume down 30–40% YoY, while fixed ops departments are pivoting to membership models to secure loyalty.
1) AI & Cybersecurity: Adoption vs. Risk
Cybersecurity Crisis: Recent ransomware attacks (Wiadvisor) and the 700 Credit data breach have made updating IT protocols and cyber insurance a critical priority.
AI Voice Tools: Alpha Drive AI and Pam AI are gaining traction for service calls, though some dealers still find the dialogue "choppy" or "glitchy".
Training & CRM:
Dealers are using Tenex, Vjal AI, and RockED for role-specific AI training (sales, techs).
DriveCentric’s AIM/Genius tools are showing promise for automated outreach despite complex setups.
Space Auto is challenging legacy vendors with a customizable, all-in-one ecosystem.
Funding (Canadian Dealers): The Canada-Ontario Job Grant offers up to $10,000 to offset costs for custom AI solution development.
2) Fixed Ops: Compensation & Efficiency
Pay Plan Shift: A strong push to revise Service Advisor pay. Models are moving toward weekly salary plus commission/spiffs, or team flat rates, rather than just monthly gross percentages.
Warranty Automation: Warrcloud is being evaluated for efficiency but faces criticism for being more expensive than internal clerks and failing to prevent audit debits.
Appraisal Tools: Vintel (lower cost, no contract) and BlueDriver (simple, inexpensive) are the top picks for OBD scanning, favored for their vAuto integration.
Retention: Loaner fleets and rideshare credits (including Uber Eats for long waits) remain essential for managing customer expectations.
3) Inventory & Financial Strategy
Stellantis Struggles: Volume is trending 15–20% below forecast and 30–40% year-over-year. The ROS program is shifting to Ram-only post-New Year, impacting Jeep profitability.
Pricing Models: The "Velocity" pricing model is under scrutiny. Dealers report it is eroding front-end gross without proportionally increasing turn rates compared to age-based bucket models.
EV Profitability:
Public charging stations are generating $2,000–$3,000 monthly profit.
Home charger installations add $400–$500 per unit to a vehicle sale.
Reconditioning: Minor cosmetic fixes (rim painting, hubcaps) on aged inventory are proving effective at reducing time to sale.
4) Marketing & Loyalty
Memberships: Annual membership programs (priced at $199) are successfully driving recurring revenue and retention via exclusive discounts and priority scheduling.
Recruiting: Using ChatGPT to craft job descriptions is resulting in higher-quality candidates.
Google Reviews: The removal process remains broken. The only effective strategy is reporting reviews specifically for impersonation or naming employees using multiple personal accounts.
Top Actions for Next Week
Audit Cyber Security: Immediately review insurance and protocols in light of the 700 Credit breach and recent ransomware attacks.
Review Advisor Pay: Evaluate moving advisors to weekly payout models to boost motivation.
Test Cosmetic Recon: Pilot rim painting/hubcap updates on aged used units to speed up turn.
Investigate Grants: Check eligibility for the $10k Canada-Ontario Job Grant for AI projects.
Launch Membership: Consider a $199/year customer loyalty program to lock in service retention.
— CDG