If you were running Pinewood and had this Lithia relationship and were planning to enter the U.S. market, is there a particular segment or geography you would target? The U.S. market is tough. CDK has a huge share and is trying to hold on to everything, as is Reynolds and Reynolds. If someone is going to switch to something modern, Tekion probably has a better product than Pinewood.

The idea of a large dealer group investing in technology that might access their business strategy, operational metrics, or customer data is a major concern. It really worries them. The notion that Lithia is behind that technology could scare off about 90% of them. We have seen this pattern over the past few decades. If I were in their shoes, I would focus on the European market initially and then transition to the Canadian market.

Why do you think Canada is a better market for an upstart like Pinewood? Is it because it is more fragmented, or are dealers more free to make their own technology choices?

In Canada, you will see that with BMW and Mercedes-Benz. They operate more cordially and have fewer mandates on technology stacks. In the U.S., you don't have the freedom to choose your service lane or CRM provider. You must go through certification mandates tied to facility bonuses and core allocations, like CDJR. Stellantis required using their Mopar arm for servicing technology called wiADVISOR to get Wagoneer allocations. Dealers are desperate. You don't see such shenanigans in the Canadian market. I would target PBS as a strategic entry point in the U.S. market.