Buying Stores, Selling Software, Robotaxi Parking Tickets

Episode #1407: Dealership buy-sell activity surges even as profits normalize, GM proves subscriptions are becoming a serious profit center, and Waymo's robotaxis discover that finding a legal parking spot might be harder than driving themselves there. Show Notes with links: Buy-sell activity has picked up 23% year over year, showing dealers remain confident in the long-term value of retail automotive. Presidio's latest reports suggest operators are playing the long game—buying strategically, pruning portfolios, and betting on execution over peak earnings. 64% of dealers want to buy a store in the next year, while the share looking to sell climbed to a record 18%. Buyers are getting more selective, looking at brand strength, market position, facility costs, and long-term. Portfolio optimization, not exits, is driving many sales. Blue-sky multiples climbed for Lexus, BMW, Toyota, Chevrolet, and GMC, and Presidio removed valuation guidance for Volvo, Infiniti, and Volkswagen due to weak profitability. Profits remain below last year, but are stabilizing. Fixed ops grew 5.2%, F&I hit a record $1,769 per retail unit, and both new- and used-vehicle gross profits improved sequentially. "The M&A market remains robust, but buyers are much more selective about what they want to own," said Presidio President George Karolis. As vehicle profits normalize, GM says software and subscriptions like OnStar and Super Cruise are becoming major growth engines—bringing in recurring, high-margin revenue while keeping customers connected long after delivery. GM's software business keeps about 70 cents of every revenue dollar, far higher than the typical 4–10% margins earned on vehicle sales. OnStar generated $800 million in Q2 revenue with GM expecting nearly 13 million subscribers by the end of 2026. Super Cruise revenue jumped 70%, with more than 850,000 subscribers expected this year. Between 30% and 40% of eligible owners keep paying after the free three-year trial. "We do think we have tremendous levers, multiple levers of growth. We definitely think there's a lot of opportunity at GM to grow, improve margins, and become less cyclical." - Mary Barra, CEO, General Motors Robotaxis may be getting better at driving, but parking is still a work in progress. New records show Waymo's autonomous fleet has racked up dozens of parking citations in Austin, highlighting the real-world growing pains that come with scaling driverless transportation. Since launching in Austin in 2024, Waymo vehicles have received 83 parking citations totaling $9,325, including fines for tow-away zones, double parking, expired meters, and even a disabled parking space. The NHTSA recently urged autonomous vehicle developers to improve how vehicles respond to first responders, construction zones, and temporary traffic changes. Waymo says it pays parking tickets like any other driver and uses public parking or an Uber-managed depot between rides to reduce unnecessary traffic. "We do not expect different treatment [in regard] to ticketing." — Waymo spokesperson 0:00 Intro with Paul J Daly and Kyle Mountsier 3:04 Dealership Buy-Sell Is Up 23%; 64% of Dealers Want To Acquire Stores 5:50 GM Keeps 70 cents of Every Subscription Dollar 9:43 Waymo Racks Up Over $9000 In Austin Parking Tickets