Cox Automotive will create a mobility division that positions the dealership software and services juggernaut for a future in which fewer consumers will buy or own vehicles.
The multibrand industry player, with more than $7 billion in revenue last year, expects the new mobility business to dwarf its cash-cow Manheim auction business within a decade, according to an internal memo obtained by Automotive News.
Cox will consolidate its growing portfolio of tech-related investments to create Mobility Solutions Group. The division will deliver software and services to car-sharing and ride-hailing companies, vehicle subscription programs and, eventually, robotaxi fleets.
“We have constantly, through generations and generations, been a disrupter and disrupted ourselves,” Cox Automotive President Sandy Schwartz told Automotive News. “There’s going to be a big change in transportation as a service, and we want to position ourselves to be a viable company in the future.”
