Investing $9B in the next generation of automotive disruptors | Bill Cariss

Welcome to another edition of expert insights from the Car Dealership Guy Podcast, an episode recap that breaks down the key takeaways from the conversation.

In this episode, Bill Cariss, President and CEO of Holman Strategic Ventures, shares his insights into dealership technology and how auto retailers can use their investments to drive the industry forward.

You can stream the full episode now on YouTube, Spotify, or Apple.

1. From dealer to venture capitalist.

Bill started out on the fleet side of the business, working his way up from sales support to business development. Holman’s fleet management grew from 48,000 vehicles to over 2.2 million under his watch—an impressive feat that paved the way for Bill to move into retail, eventually becoming VP of Dealership Operations. Now, he’s leading Holman Strategic Ventures, where he’s focused on finding new technologies that will keep Holman a step ahead of the competition for years to come.

2. What Holman looks like today.

Holman Enterprises operates close to 60 dealerships, but fleet operations are still the core of the business. Retail continues to grow, but the company’s real momentum has come from its 11 truck plants, which have gained traction over the past few years. Manufacturing logistics has turned into a powerhouse, driving more growth than many of Holman’s other business ventures.

3. The advantage of strategic partnerships.

Holman didn’t expand beyond traditional retail by going it alone. For each new initiative, they carefully selected partners like Ford and FedEx when the timing and circumstances were right. Bill believes these partnerships helped Holman navigate new industries with less risk and greater returns—a strategy that other retailers would find hard to replicate without similar alliances.

4. Unpacking data and A.I.

Holman Enterprises wants to be known as a company that’s easy to work with. This makes investments in technology extremely important. Although conversational artificial intelligence has taken center stage in recent years, Bill believes that data is more important for auto retailers. While A.I. applications can potentially make things more efficient, strong data analysis is necessary for problem-solving across every department, including sales and service.

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5. The state of the auto tech market.

The high vehicle prices during the pandemic left many dealers with extra funds to invest, leading to a wave of spending on new technology. Bill points out that there’s a healthy supply of capital ready to be deployed, especially as valuations for Software as a Service (SaaS) companies have come back down to earth—from 15-20x earnings to a more reasonable 6-8x. Meanwhile, interest in A.I. and robotics is heating up as dealers look for innovative ways to optimize their operations.

6. Planning for the long-term.

Dealers are turning to venture capital not just for short-term gains but to position themselves for the future by looking beyond the IRR (internal rate of return). “Do they want to make money? Absolutely,” Bill says. “But does it matter if it’s a 20% IRR or 14% IRR? Not really.” Instead, they’re focused on strategic moves that will pay off over the long run, ensuring their businesses are prepared for whatever the industry throws their way.

7. What it takes to succeed as an autotech business.

With so much focus on dealership technology, standing out as a startup is no easy task. Bill advises startups to partner with established industry leaders early on to build credibility and generate interest. “Dealers have an insane amount of FOMO (fear of missing out),” he points out. Securing pilots with well-known dealers is a surefire way to get others to take notice.

8. Robots in the dealership?

Robotics is one of Bill’s emerging interests, and he sees a future where robots play a key role in dealerships. Imagine robots managing parts inventory, reducing labor costs, and minimizing workplace injuries. Some startups are already designing ways to integrate robots into Dealership Management Systems (DMS), and Bill believes it’s only a matter of time before robotics becomes a mainstay in dealership operations.

9. The pros and cons of consolidation.

Mergers and acquisitions are accelerating in the auto tech space, raising concerns about monopolistic tendencies. But Bill sees an upside: consolidation could lead to fewer fragmented solutions, making it easier for dealers to manage their tech stacks. And while the top players may consolidate, there’s still plenty of room for startups to bring fresh ideas to the table, as they can pivot faster and innovate more freely.

10. The biggest risks dealers face right now.

The agency model—where manufacturers handle the entire sales transaction—could pose a serious threat to the traditional dealership model. Under this structure, dealerships would shift from being retail hubs to more of a fulfillment role. On top of that, big players like Amazon are experimenting with auto sales, including a recent partnership with Hyundai. With affordability still a concern, Bill expects demand to soften in the months ahead but sees it as part of the usual cycle rather than a sign of a major recession.

You can stream the full episode now on YouTube, Spotify, or Apple.

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