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Keeping Auto Manufacturers and Their Dealerships Secure from Third-Party Identity Risk

Automotive manufacturers depend on the franchise business model to sell their new vehicles. Generally, the automotive franchise model is no different than any other industry’s franchise arrangement. Aside from Tesla, the only manufacturer that sells its cars directly to consumers, dealership franchisees own, operate, and distribute 100 percent of new car sales in the United States.

The automotive manufacturer (franchisor) provides their dealership (franchisee) with streamlined management practices and processes that the dealership, its employees, and their partners follow to deliver a consistent experience for the consumer, protect the manufacturer’s brands’ reputations, and ensure financial success for everyone involved.

To operate smoothly, franchisors and their dealership franchisees rely heavily on a robust network of third-party workers, including the dealership’s employees, aftermarket part suppliers and service departments, vendors, contractors, and even contingent workers who manage car logistics.

While sensible and profitable, the automotive franchise model introduces additional complexities and costs when managing these third-party worker identities and the access they require to the manufacturer’s and dealership’s systems and networks. The employee turnover rate in the automotive industry (reported as high as 46%) compounds the problem.

Often a dealership’s employees and third-party workers require equal access to systems and data, including a Dealer Management System (DMS), which is designed to connect manufacturers, distributors, dealers, and customers to provide an exceptional customer experience, as well as their Customer Relationship Management (CRM) system, and more. Yet, managing these third-party identities and their access within a commercial Identity Access and Governance (IGA) system is rare due to the high costs associated with extending IGA licensing to such a large group, the complexity of supporting the business processes, and the cost of customization required to build and sustain their access to an IGA tool.

This excess expense and complexity results in identity and access shortcuts being taken, and traditional workflows are skewed. Unfortunately, risk-based due diligence is replaced by the necessity to speed up what has traditionally been a long process involving multiple stakeholders to get business moving along quickly. Further, the tools and processes set by the automotive franchisor to onboard a dealership’s employees and their access requests are often full of friction. This frustration leaves dealership owners and third-party vendors unhappy and often precipitates concerted efforts to shortcut or circumvent identity security processes, introducing yet another risky consequence.

Read more about these challenges that automotive manufacturers face and how SecZetta’s solution is helping tackle them directly and automate risk-based identity lifecycle management processes.

Automotive Industry - Use Case