Dale Pollak Moving On From Cox, F&I Gross Dips, OpenAI Browser

The Automotive Troublemaker w/ Paul J Daly and Kyle Mountsier

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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.

Hosts: Paul J Daly and Kyle Mountsier
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