Despite a slumping U.S. auto market, Michael Dell, CEO of Dell Inc., thinks that there are plenty of opportunities within the auto industry, and not where you might think. Although it’s perfectly rational to assume the 43 year old CEO has his eye on incorporating Dell computers into future vehicles, Dell is actually planning to invest in auto dealerships.
Dell admits that he has discussed joint ventures with unnamed automakers, but his first foray into the industry will likely be through dealerships, particularly high-end luxury and import dealerships.
Because of the slumping market, Dell thinks this is the perfect time to get his foot in the door. “When people are panicking and don’t really know what to do, that’s probably the period of greatest opportunity from an investor’s standpoint to make changes and do good things,” Dell told the Detroit Economic Club. “Now you have to have receptivity to change, and you have to embrace change, but what other choice do you have?”
According to Automotive News, Dell’s new joint venture with former Sonic Automotive President Jeffrey Rachor — dubbed MSD Automotive Partners LLC — will invest as much as $500 million in high-end luxury and import dealerships.
