Qore Conversations

The Death of Automotive SaaS: How AI is Taking Over

QoreAi Season 2025 Episode 8

Artificial Intelligence is no longer a concept to prepare for — it’s here, and it’s actively transforming every layer of automotive retail. In this episode, Todd Smith, CEO of QoreAI, breaks down how AI is rapidly replacing traditional SaaS systems by automating entire workflows that used to require human oversight.

From outdated CRMs to fragmented marketing tools, the legacy tech stack inside dealerships is being rendered obsolete by intelligent agents that can interpret data, make decisions, and execute tasks in real time. Todd explains how most dealers are still in the early stages of AI adoption — stuck at level zero — while the technology has already moved into stages where agents handle lead responses, prioritize workflows, and eliminate inefficiencies with precision.

He outlines why marketing and lead management are the first areas being disrupted, how AI can outperform BDCs with 24/7 consistency, and why clean, structured data is the foundational asset for any dealership aiming to stay competitive. He also speaks directly to vendors, urging them to confront the hard truth: adapt quickly, or risk becoming irrelevant.

Key Highlights: 

  • Why traditional SaaS tools in automotive are being hollowed out by AI
  • The role of AI agents in replacing repetitive dealership workflows
  • How lead response and BDC processes are the first to be disrupted
  • Why most dealerships are still at “level zero” in AI adoption
  • The crucial importance of clean, structured, and owned data
  • How AI enables real-time decision-making without dashboards or reports
  • The financial advantage of AI agents vs. high-turnover human roles
  • Why marketing tools are the first SaaS category being overtaken by AI
  • What vendors must do to survive in this rapidly evolving landscape
  • Why dealerships must stop evaluating AI like traditional software
  • How to begin building an AI-first operation today — and why timing matters
  • What dealers can do now to prepare their infrastructure for the next 24 months


This is not just a tech upgrade — it’s a complete re-architecture of how automotive retail operates. Whether you're a dealer or a vendor, this episode delivers essential insights on what’s next, what’s working, and what needs to change immediately.

For more information about QoreAI, visit our website: www.qoreai.com.

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Podcast Directed and Produced by Hired Guns Agency: https://www.hiredgunsagency.com

Speaker 1:

Welcome back to the Core Conversations podcast, where we always explore the future of technology and innovation in automotive retail. And, of course, as always, I'm joined by Todd Smith, ceo of Core AI, who's always ready to jump into the topics that are shaking up the industry, especially around automotive data and AI. Today, we have a barn burner about how AI is dismantling the traditional automotive SaaS ecosystem. Sorry, saas companies, I don't think I would want to be one right now, from all of the bloated dealer systems that really have barely evolved since the mid-2000s, to the rise of all these AI-powered agents that, unfortunately, dealers still are not paying close enough attention to. These aren't just assisting, but they're actually taking over these key workflows. Todd is the pinnacle of knowledge in this area. He's outlined a future where you, as the dealers, you no longer need to rely on these clunky software tools. Instead, ai is seamlessly helping integrate into operations, making these traditional SaaS problems sorry to say it, but obsolete. And yes, it might take a little time for that.

Speaker 1:

But what does this mean for dealers? That's what we're talking about today. What does it mean for vendors? What does it mean for the entire automotive retail landscape If SaaS is being this disrupted? I hate that word. But if it's really under such attack, what's replacing it? Let's get into this, todd one. How are you?

Speaker 2:

Doing great, thank you. It's awesome to be here, as always, always enjoy our time together at Core Conversations talking about the interesting things that are happening in our industry, and all I see today is a continued acceleration of what's going on not only in AI, but the data that's powering it.

Speaker 1:

Yeah, well, I'm going to start this by asking you you mentioned something. You post so much great content for people to understand what's going on in this realm of the industry. For people to understand what's going on in this realm of the industry. You describe SaaS as kind of being I think even as a quote hollowed out from within by AI. Walk us through that why traditional dealer systems have become so vulnerable to this?

Speaker 2:

Yeah, well, let's break it down Like what is a SaaS application, right In the most simplest way.

Speaker 2:

You have a database that stores customer data, inventory data and take or pick whatever you're storing at a data level, and then you have a UX and UI and the UX and UI is designed to help you navigate to get to the data in the database, to help you navigate to get to the data in the database.

Speaker 2:

And we are now entering a time when AI can do some of that lifting of what a traditional UX UI does. Hence, if we look at the UX UI of something, let's say, like ChatGPT or Claude or Grok, what is it? It's just a bar, almost like a search bar, where you go in and type what you're trying to do. It then goes and accesses the available data that supports that and brings it back to you. So think of it as a different evolution or complete disruption of where we're heading. So, instead of that heavy UX UI system on top, it's going to get eroded out to be thinner and thinner, and there's a point where even that becomes less valuable because of the future of a genetic agent which actually do the work for you. So I don't have to go do the research, it's actually doing it automatically.

Speaker 1:

So thinking of AI as a co-pilot, you know, kind of a question of like where are we now with this? Ai is mostly assisting dealers kind of, as some of the things you're mentioning here. Rather than replacing like full workflows. What would you say are some of the more immediate ways you see AI reshaping how the dealership operates, even because we're, you know, for most dealers they would very much say they're in early stage. The industry is still early stage with this.

Speaker 2:

Absolutely. Look, I think we're still nascent in where it is. So I wrote an article on LinkedIn that talked about the you know, five levels of AI in automotive, starting at zero to a level four. So think of the similar to autonomous driving. Right, we have four levels of autonomous drive. We're maybe in you know two, hyphen three today you know pushing you know with Google into four. Right, and most dealers are at zero, maybe starting in a one.

Speaker 2:

So when you think about, like co-pilots, the key thing to understand is not trying to replace people, just trying to help augment people and augment what they're already trying to do. So BJ Fogg, probably one of the premier Stanford psychologists, always said it very eloquently, which was help people do what they're already trying to do and make it simple. So when I look at AI today in our business and where the entry points have been are around marketing, because marketing is the largest budget in a dealership and it's the most easily disruptive, and what I mean by that, if you think about all the SaaS tools in automotive that are currently available, dealers swap the marketing tools at a pretty high velocity, so churn is super high. Sorry all vendors, but you know it. It's easily that they replace a chat solution, they replace an inventory management solution, they replace all these solutions around marketing, ad creation, postings. All that stuff to me is a very high-turn type tools. So I think the first thing that we're seeing with AI is that Copilotpilot is going to be in that area right, it's going to disrupt. So the things we see immediately, though. I've been around just how do we build a model to score our inbound opportunities? So, thinking from a marketing lens, dealers spending X dollars to attract people in to create a lead, and then dealers have been statistically pretty inefficient at lead management.

Speaker 2:

I think if we go in any store today, one of the biggest complaints is my salespeople don't follow up on our leads and they're leaving money on the table because things are being cherry picked, processes aren't consistently followed and there is no way well, until now there has been no way to instantly know okay, sean is a buyer, todd is a tire kicker. Every lead comes in. It's like all you see is a name, an email, maybe phone product they're interested in, or trade form or finance app. You have no intelligence behind that and I think solving that first is low-hanging fruit for AI. Ai could easily.

Speaker 2:

We already do this at core, where we understand this guy is in market or not, based on thousands of other signals. You don't need everything, but it's pretty quick to know where consumers are at in the process. So by understanding that, you know how to bucket and your focus. So these people have a higher propensity, they are scoring higher, so they're showing us signaling. Give them a workflow, these people they're signaling, but it's not those buy signals that we look for. They're like let's give them a different workflow. And these people they're very high funnel probably need to give them separate workflow. And I think AI solves this really quick and it's easy and it's not a big lift.

Speaker 1:

Very interesting. I want to get your thoughts on AI agents. I know there are a lot of dealers out there that I oftentimes relate new topics that dealers are not yet comfortable or even familiar with to the age of when SEO and SEM first became acronyms that were thrown around in the industry and no dealer in no 20 group ever wanted to stand up and tell the audience or their peers what the difference between the M and the O were. They're just like I don't know. It's like who knows and I say this a lot as it relates to these things that have been emerging relative to AI like agents. So I know that people that consume your content, including these podcasts, full episodes or clips some are familiar with AI agent, what that means. Some are very, very familiar, and then there are others who are like I have no idea what you're talking about. Like, are we talking about west world? Is that like, like?

Speaker 1:

So, with that in mind, um, ai agents are, and especially in many other industries, but very much so in automotive. It's like a little bit of a takeover, like it's the it's. It is out there, whether you know it or not, at your dealership. Um, it's a big deal, and so, from a what's next perspective as you look down the road even past 2025 into 26,. I know that you described the future where AI agents start to replace a lot of things that we see in SaaS. Curious to know your thoughts on, maybe, what some of the first things that will be impacted are from the dealership function perspective.

Speaker 2:

Sure, let me peel that back and say what an agent actually is is a workflow that has been automated. That has been automated so I can send a agent program out to go do something. So a good example I just built one as a demo, I think it'll get posted on LinkedIn tomorrow was hey, you as an agent, I want you to go and scrape these seven local Toyota dealership websites and I want you to bring me back how many new cars they have in stock, what are the makes and models and price. And then I have another agent that is built to analyze that data and then ultimately display it. So, if you think about it, as humans we naturally move between steps in a process and an agent is one of those steps. Like, I need you to go to X, like open my email and read it and prioritize the ones I need to respond. So anything that deals with legal employees or a bill, whatever, that is Okay. So the first thing is understanding we are entering what I call an agentic time, when systems are now going to be able to build these agents to replace all sorts of workflows Some very simple, as I just described, as an email, some that are very complicated, that you would be like an email Some they're very complicated that you would be like huh, we can really make a robot go do that and we're going to say yes. Case in point, openai recently released agentic agents that go from $2,000 to $20,000 a month, based on their level of skill and understanding, to $20,000 a month based on their level of skill and understanding. So if you need a basic agent which I would call college graduate level two grand you want someone who is a aka PhD researcher, so at the highest level, $20,000 a month. Now, normally that person could be 60 or $100,000 a month to hire. So the financial mechanisms are going to be there to build some efficiency. So the first thing I would say is that's what agents are. That's what they're here to do.

Speaker 2:

Now, if we look at auto, there's many things we do in our daily lives in the dealership that we hate to do and I look at for agents to take hold, it will be replacing things. As managers we struggle to get our team to do Because humans in general naturally lazy. We only want to do what we have to do at a level to keep our jobs, make money at a level, to keep our jobs, make money and et cetera. So when you boil that down and I look at lead response first we have argued, sean, for 25 years. We beat our salespeople.

Speaker 2:

The CRM is nothing more than an accountability tool. Did you call? Did you make your 60 calls today, sean? Sean, do you send those 57 emails? Did you do the text messages? Well, I don't see the notes, sean, and we use these as a whipping tool. Our productivity gains off it are almost nascent because we are still arguing the same things we did in 2000, in 2025, in a store. So we start looking at an agentic agent. Can we build agents that do some of that process? Absolutely so. Can we build an agent that replies to emails? Yes, text messages.

Speaker 1:

Yes.

Speaker 2:

Voice calls.

Speaker 1:

Yes.

Speaker 2:

Okay. So if you think about an evolutionary process and what it might look like, someone will build this and it's the same agent, but it's just crossing the channels right. So it's the same agent, on a phone call, as a text message, as an email. There's nuances, but it's really the same engine that's powering these and as long as it has access to all the data, that's where the value comes in. But if you think of for a dealer, the easy entry point was go to a dealer. Someone bills it and says give me your worst lead source where you have the lowest conversion. If I boost that conversion, give me your second worst lead source and it will only be a matter of time because the agent let's think about this it doesn't forget, it works 24-7. It learns and adapts Things we wish our employees did but do not. And because of that, there is a visual progression to go from where we're at today. There is a visual progression to go from where we're at today to start integrating these technologies. Now think about that from a.

Speaker 2:

Everyone constantly tells me it's a relationship business, it's all about relationships. Look, I've been in the business 30 plus years and relationships are absolutely important. But at the beginning of an experience. You don't care about relationship. What you care about is getting your information answered and feeling confident to take the next step. Right now in lead generation, dealers do a pretty poor job of that. So it's an easy place that I will see automation and what dealers have done currently is they couldn't get their salespeople to do it, so they put a BDC in the way and a BDC is like a super high cost application. So if you look, bdcs have an incredible high turnover, expensive people and they still struggle to follow the same processes day in, day out because it's monotonous and nobody wants to do monotonous work. Perfect for an agentic agent. So when I look at it, that's the easiest first spot to disrupt out.

Speaker 1:

Yeah, those are all really really great points, really good points. So I'm going to take you towards a question around like what do you think happens to vendors? You know, is it true, this is obviously a big transition as it plays out and your kind of prediction thoughts what do you think happens with some of these existing companies in this? I mean, my guess is that maybe some adapt and survive, but I think some of them it's maybe not survival. What do you think?

Speaker 2:

Yep, I actually have a quote for this. Let me find it. So I wrote this down and sorry, I'm looking through my notebook as we are talking here, as we are talking here and I wanted to make sure I say it exactly how I wrote it, because how I wrote it was very important to me and it's funny, I was reading a book about Chinese and the three dynasties. I know I'm going to totally nerd out on you for a second here buddy, but it's all good.

Speaker 1:

I think the audience likes to know these little behind the scenes with Todd Smith.

Speaker 2:

Obviously, I'm a voracious reader, right. I'm constantly reading, learning. Uh, what's next? Um, so I've known that about you for a long time right, so there's a book and and it's called the romance of three kingdoms. Okay, so it's a chinese book.

Speaker 2:

Yeah, I know, going a little crazy here but, in it and and and this dude, this hit home so hard to me and that's how I want to read it verbatim. It says empires long united must divide, long divided must unite. This has of SaaS, a complete unbundling of unique applications to handle certain aspects of workflow. We are entering a time when we're going to see the bundling, because of AI, of workflows all tied to data.

Speaker 1:

I have many explosions going off in my brain and little wheels going. I'm not even going to say the things that I'm thinking that. Help me contextualize that quote. But I get it and yes, I mean, that's profound actually when you contextualize it into the industry, in this specific topic that we talk about all the time. Yes, but oh my goodness, the broad application of that is.

Speaker 2:

That's wild it's crazy because I'm like like I read it and my, I was like this, my mind just blew. I was like I read it, reread it. Then I wrote it down because I was like I never want to forget this. This is a yes pivotal, pivotal understanding.

Speaker 2:

and this, this was written like a thousand years ago, and not the bundling on bundling. I added that right, because that that's what we're in this world. But the idea of kingdoms divide and unite, because that's the cyclical nature. Software is the same. So software in the beginning you just had one computer system. Then we had a proliferation of applications and now you'll see it come back because AI. So, and look, ai could not exist unless the internet existed. Like each of these are stepping stones, but they're also leading us to a faster, more progressive change environment, and I think that's the other thing that we always have to think about is you cannot sit in a dealership today and look at AI with the same lens that you would look at buying a SaaS application. If you do, your entire frame and understanding of what AI is is incorrect.

Speaker 1:

AI is a completely different animal.

Speaker 2:

In fact, there's been at least a half a dozen keynotes over the last six to eight months and, if you listen closely, by CEO of Google, ceo of Microsoft, they all say the same word they're defining AI as a species, and that should frighten everybody, because this is not. We built a tool, we've built an application. They are launching a species that can think, it can reason, it can process and it can do anything digitally right Now. It hasn't really ingrained our physical environments yet, right, except robotics. Boston Dynamics robot this week can break dance really ingrained our, our physical environments yet, right, except robotics. Boston dynamics robot this week can break dance. It's pretty wicked cool um but, I definitely see that.

Speaker 2:

You know. I saw a dealership has a robot that delivers parts to the technician yeah, saving technicians, right. You saw that, you know. So you see, these things we're seeing, look, we are seeing like glimpses of what's really coming and and. But you can't compare it to what has come before because it's a completely different thing. So it's not going to behave like sass, it's not going to work like sass, so you, it's hard to get your head around that part.

Speaker 2:

But once you get your head around that part, then like, listen, if a dealership does not have an AI task force set up, so they so they aren't disrupted, so they are understanding this technology they're going to get crushed and I believe it's going to happen faster than we can right now, like our linear brains, imagine, and I think we're still at the bottom of a hockey stick.

Speaker 1:

There's no doubt about that.

Speaker 2:

Yeah, I think we're at the bottom of a hockey stick, bottom of a hockey stick, and the change is so profound that it's not like oh, I have reports. Reports will be dead, dashboards will be dead. What's going to happen is dude, it's going to look through all the data, it's going to find the correlations. It's going to say, sean, you need to do these three things, and you're going to go, okay, and you're going to go to them, and it's going to go oh, we just saved the company 16% and you boosted X, because it's seeing the entire organization operationally in real time and understands it. We cannot do that and this is the tech.

Speaker 2:

But again, it all will be based on clean and knowledge graph vectored and ready, because I want to be like the big kahuna, right, I want to catch the wave. And if you're running a store today and you really want to be at the edge and be successful in the age of AI, you better get on the board and start paddling and to be able to catch the wave, because it's coming and we're seeing bits of it. I kind of look at it like I remember I love football and I was watching. This is years ago. Remember Donovan McNabb who played for the Philadelphia.

Speaker 1:

Eagles, of course.

Speaker 2:

Yeah, okay, yeah.

Speaker 1:

He played for you.

Speaker 2:

So McNabb used to have glasses. They were like this but they had like louvers on them, you know, like shutters, yeah, so he'd snap the ball, be blind. It would open for one second and it'd shut, and then he'd have to move and then it'd open again. So it would match for one second and shut, and then he'd have to move and then open again. So it would match his three reads. And I think that concept that you're seeing, like you're only seeing bits, you're seeing glimmers of of what's out there and you're not seeing the whole field and and I look at that and I remember I was like how they, how they trained quarterbacks using that type of lens.

Speaker 2:

I'm like dude. This is fascinating to me.

Speaker 1:

Well, I'm sure to many other people.

Speaker 2:

I love that you always bring it back to practical application in the industry, because I think there's a temptation for a lot of people will steven covey, begin yeah, yeah, yes, right, and yes, okay, yeah, I want to build amazing ai stuff. But you can't build ai stuff without foundation work. The foundation work for all ai is data. So, in first principle thinking, how will a car dealership or group be successful in leveraging AI and the future of Vigentic Agents and whatever else comes out, it will be doing the data work today and that's why we exist is to do that, because I think this is setting you up for success.

Speaker 1:

Yeah Well, you do this so well of always calibrating around the importance of, you know, data being that first step. But you also I don't know if you consciously are you know apply some restraint here to the doomsday-ish kind of thought process that people could get into in terms of mindset. And I say that because if you get too far down the rabbit hole of AI and what it is already doing, you will miss out on the fact that you need to jump in now. And you mentioned, like you referenced, the hockey stick beginning of a hockey stick For dealers or anybody in automotive, but especially the dealers like you and I have been in this industry for 30 plus years.

Speaker 1:

You know exactly how kind of the slow burn was of the internet's here and leads off of fax machines. And you were doing that before you even had a website. And then you got a website and that website didn't have anything to do with SEO because there was no Google when you all first had your first websites. And then Google comes along and then links actually matter and all of these things kind of evolved over time and you can go back and look at that historically and see the trajectory. But what's happening and what has happened with every new thing, since social media is probably the next best example. It exploded faster than the internet commercial internet itself. Ai is going to make all of those things look like child's play.

Speaker 1:

It already is's, it's, it's so amazing, but I appreciate that you don't. You don't dwell on any of this thing in any of this perspective from a kind of a doomsday thing that you are trying to be the, you know, the, the. I guess the, the shot caller of this is what's happening right now and why. The clean data thing is the beginning of this and you need to jump on it. You need to educate yourself. You need to have an ai team of people. You need to start building those people that you trust now, if you haven't already, because it's going to come so fast and, unfortunately, some will not be able to keep up with what it ends up doing from a. I hate the word disruption, but there's catastrophic disruption on the horizon and I feel like you're one of the only people who are truth telling out in advance of it, and we talk about this all the time. How important timing is? We're not talking about something that's five years off. No, everyone's very involved.

Speaker 1:

Yeah, you and I are very deeply involved in all kinds of different AI figuring things out, trying to be helpful in businesses and helping dealers, and we can barely keep up with how fast it's going Like it's. It's insane. Well, listen as I think about a couple of things as we get close to closing out this episode. Last thing I want to just maybe close on here is bigger picture Like and I think this is a good segue into thinking about dealerships being AI first every time something new has come around like you need to be mobile first, like things like that Well, now it's the time to be thinking, you know, what it is is right.

Speaker 2:

That is part of this is like we have been ringing the bell and now like, oh, nah, that ai will wait, it's no big deal, because we've, we've trained ourselves like, oh, it's not, that it's, it's going to be like everything else. And I think that's the only thing I've tried to instill in every auto group that I fly and go meet with and sit down with. You are not prepared, what is going to happen? Zero. But the real reality is you cannot predict the next two to five years off the previous that is gone. So we're going to enter this new kind of ether understanding of space and time that are completely different.

Speaker 2:

And again, I wrote this down because I wrote this in a meeting I had with the auto group, like two weeks ago. I was with them and I said, because you know, you look at groups, you have all these people work there, and the complaints were all across the board, like, hey, we send out reports to our managers, they don't do it. We have high turnover, we are having a hard time. Like you know, mistakes are being made because people don't know, they don't know the software. They don't know much and I wrote down. I said true, differentiation comes from codifying all your internal knowledge. This is what AI is absolutely built for. It is like the most perfect thing to codify your organization, and that, to me, is getting all the data, codifying it and making it available, using AI, to bring intelligence to life for your organization.

Speaker 2:

It's almost like birthing a AI dealership that it can do many things. And I've left every group with two books you have to educate yourself right now on. And one is Scary Smart by Mo Gadot, ex-google, ex-coo, amazingly brilliant guy. I met him in Chicago super nice, super thoughtful. I met him in Chicago Super nice, super thoughtful.

Speaker 2:

He wrote another book about happiness with the loss of his son who died in like freak operation, like total statistical anomaly that his son passed, but anyway, I think it's called Solving Happiness. I remember I read it a few years. But Mogadad's book, uh, scary smart. I would read that. He's a little bit on the doomsday side. You know like this could go. This can go very sideways quickly. The other one is, uh, mustafa Suleiman and he was one of the founders of DeepMind, so now he leads Google's AI and he wrote a book called the Coming Wave. Those two books all you probably have to read gives you a trajectory of what you should be thinking about as a leader running an automotive group today. That coupled with practical use of get a chat GPT account just so you just understand the depth.

Speaker 2:

Because one of the most interesting things 99% of all information on the internet has now been gobbled up by these LLMs, but only 1% of business information or personal information has been gobbled up, and I think for corporations auto specific to be highly successful, they need to now curate all their knowledge and data in a system that they own, and I think that is going to be the catapult to success in the next two years.

Speaker 1:

Love it. Great place to park the episode. Once again, Mr Smith, fascinating discussion about AI and its future in automotive. It's not even just the future, it's the now and the future. Yep, I think there's going to be lots of dismantling of these legacy SaaS systems. I think that dealers need to be thinking AI first, now, not later. So, dealerships, thank you always for listening and or watching. This opportunity is massive. Ai isn't just another tool, it is the shift in how business is done. You need to jump out in front of it. The data cleanliness and ownership and control is so critically important.

Speaker 1:

If you're not hearing Todd like literally he is the messenger for this Vendors. The question I don't know for you guys I don't know if you can keep up, Can you reinvent yourself fast enough is probably the question for a lot of you guys. I think in this episode, big takeaway it's not that change isn't coming, it's already here. We talk about this quite a bit in these episodes, Todd, and I know you're literally the guy on this topic. So thanks again for sharing the insights. For people that want to connect with you, LinkedIn's the best place, right.

Speaker 2:

Get out there and connect with you on LinkedIn. Come find me on LinkedIn, dm me. If you don't want to comment in public, that's fine. Everybody loves to DM me in the shadows, totally cool. No worries with that, or they can reach out to me direct at Todd T-O-D-D at coreaicom and easy way. Either way, you'll get a response. More than happy to just do as simple as answer a question, or just help them as a guide on their mission, or actually help them build the data infrastructure of the future for their group.

Speaker 1:

Yeah, todd can be a massive resource for you guys, even if you just kind of start on the kiddie end of the pool where you just start a relationship If you don't know him. He is absolutely an accessible person in the industry and it starts with the conversation, which doesn't cost you anything but your time, and it won't be time you waste. So that's a wrap for today's episode. If you found the conversation valuable, hey, subscribe to the content and the channel. If you're on YouTube, depending on where you are out there and consuming this content, we'd love it if you'd also share it with people in the industry, people within your dealership organization that need to hear messaging from people that are actually in front of this, that are trusted thought leaders. So we'll be back soon with more insights on how technology is shaping and how AI and data are so critical to automotive retail. Until then, keep innovating, and thanks for spending some time with us. Thank you.