The traditional relationship between OEMs and dealers is being rewritten in real time. For decades, the structure was simple: manufacturers produced vehicles and dealers sold and serviced them locally. In both the US and EU markets, franchised dealers became the backbone of automotive retail. However, connected vehicles, digital platforms, and subscription-based features have introduced new layers of complexity.
Today’s vehicles are rolling software platforms that generate continuous streams of data. That data powers remote diagnostics, over-the-air updates, in-car subscriptions, and personalized services. As revenue shifts from one-time vehicle sales to recurring digital income, tensions naturally emerge. The big question now is not just who sells the car, but who owns the customer relationship and the long-term revenue attached to it.
Data Access: The New Currency of Automotive Power
Vehicle data has become one of the most valuable assets in the automotive ecosystem. Connected cars collect telemetry on performance, driving behavior, maintenance needs, and software usage. OEMs argue that this data is part of their proprietary ecosystem, essential for improving vehicle performance and rolling out future innovations. Dealers, however, see data access as critical for delivering better service and maintaining strong customer relationships.
In the United States, many dealers are pushing for broader access to connected vehicle data so they can proactively engage customers for service reminders, upgrades, and maintenance alerts. In the European Union, GDPR regulations add another layer of complexity, requiring clear consent and transparency in how data is shared. As contracts evolve, both sides must balance innovation with privacy compliance. The new OEM–dealer agreement will likely define clearer data-sharing frameworks that protect customers while enabling business growth.
Subscription Models Are Reshaping Revenue Streams
Automakers are increasingly turning to subscription services to generate recurring revenue. Features like advanced driver assistance systems, heated seats, premium infotainment packages, and enhanced navigation can now be activated through software. This shift transforms vehicles into ongoing revenue platforms rather than one-time sales products. For OEMs, subscription income offers predictable cash flow and stronger long-term engagement with customers.
Dealers, however, often feel sidelined in this process. If customers subscribe directly through manufacturer apps, dealerships may lose out on commissions and upselling opportunities. In both US and EU markets, dealer associations are advocating for revenue-sharing models that reflect their role in customer acquisition and service support. Without proper alignment, subscription models risk creating friction rather than strengthening partnerships.
Revenue Sharing: Finding a Fair Middle Ground
Revenue sharing is quickly becoming the most debated topic in OEM–dealer negotiations. Dealers invest heavily in facilities, staffing, marketing, and customer support. When subscription or digital revenue bypasses them entirely, incentive alignment breaks down. Dealers may become less motivated to promote OEM-driven digital services if they do not see meaningful financial participation.
Forward-thinking OEMs are experimenting with hybrid models. These include upfront commissions for activating subscription features, ongoing percentage-based revenue shares, or performance bonuses tied to customer retention. Such approaches encourage collaboration instead of competition. In Europe, where regulatory scrutiny over fairness in commercial relationships is strong, balanced agreements are particularly important. The future contract must reward both innovation from OEMs and local relationship-building by dealers.
Direct Sales Models and Dealer Concerns
The rise of direct-to-consumer sales strategies has further intensified tensions. Some OEMs in Europe have introduced agency models where the manufacturer sets pricing and dealers act more like delivery and service partners. In the US, franchise laws still protect dealer networks in many states, but digital retailing tools allow OEMs to engage customers more directly than ever before.
Dealers worry that this shift reduces their control over pricing and customer relationships. If OEMs dominate digital touchpoints, dealerships risk becoming operational centers rather than sales hubs. At the same time, many customers still value local support, test drives, and face-to-face consultations. A sustainable contract model must blend digital convenience with dealership expertise, ensuring that both channels complement rather than compete with each other.
Customer Experience as the Ultimate Decider
Amid all this tension, the customer remains at the center of the ecosystem. Buyers in the US and EU expect seamless experiences across online and offline channels. They want consistent pricing, transparent subscription options, and reliable after-sales support. If OEMs and dealers fail to align their strategies, customers may experience confusion, delays, or inconsistent messaging.
Strong OEM–dealer contracts should prioritize unified communication and shared goals around customer satisfaction. Data-sharing agreements, subscription frameworks, and revenue models must ultimately enhance the buyer journey. When dealerships have the tools and incentives to support digital services, customers benefit from smoother onboarding and ongoing assistance. Collaboration, not competition, is what builds long-term loyalty.
Legal and Regulatory Pressures in the US and EU
Regulation plays a major role in shaping the new contract landscape. In the European Union, GDPR governs how customer and vehicle data can be collected and processed. Additionally, competition laws influence how agency sales models are structured. In the United States, franchise protections vary by state, limiting how far OEMs can push direct sales strategies.
These legal frameworks mean that OEM–dealer contracts cannot simply follow a global template. They must be adapted to local regulatory realities. Both sides must ensure compliance while still pursuing innovation. Contracts that respect legal boundaries while enabling digital transformation will stand the test of time.
A Partnership for the Next Decade
The future of automotive retail depends on cooperation between OEMs and dealers. Connected cars, software updates, and subscription services are not temporary trends; they represent a structural transformation of the industry. As vehicles become smarter and more digital, contracts must reflect shared responsibilities and shared rewards.
The most successful partnerships in 2026 and beyond will be those that treat data as a shared resource, subscriptions as joint opportunities, and revenue as something to be distributed fairly. In competitive US and EU markets, collaboration will be the ultimate growth strategy. The new OEM–dealer contract is not about who wins more control, but about building a balanced ecosystem that benefits manufacturers, dealerships, and customers alike.
