The DMS automates core dealership functions and centralizes vast data flows. Gradually, however, data ownership dynamics changed.

OEMs and other industry players realized that dealership data provided massive strategic benefits. To gain control, OEMs began migrating dealership processes into their own proprietary applications, keeping dealers at arm’s length.

As a DMS Product Manager, I have been observing this trend for a long time. It started small, but under the banner of “Digitalization,” it has rapidly escalated into every area of dealership operations.

The 5 Phases of the OEM Data Takeover

Phase 1: Basis Electronic Data Exchange.

It began with simple interfaces for sharing parts and vehicle master data via file exchanges. This evolved into sending electronic orders, confirmations, and receiving status updates for warranty claims. At this stage, OEMs were entirely dependent on the DMS. Recognizing the rules of the game, OEMs began certifying DMS solutions, seeking the right candidates to become their “Global DMS Solution.”

• Examples: BMW ATLAS (Parts Master Data, Parts Return Status), BMW Order Entry (SA10), and BMW Warranty Claim (SA20–24). Also, VW Group’s ET2000 (parts master, parts order, parts receipt/invoice) and Porsche’s POLARIS (parts master, parts order).

Phase 2: The First OEM Aplication

OEMs opened the door to data exchange for their first external applications specifically designed for dealers. This included electronic parts catalogs (EPCs), where users visually selected parts, added work positions with OEM-standard time, and transferred them back to the DMS as a “shopping basket” for repair orders. As their appetite grew, OEMs expanded into vehicle sales, offering vehicle configurators and basic CRM tools, such as the Vehicle Sales Assistant.

• Examples: BMW ISPA (ISPA NEXT) and EPC/ETK. Mercedes-Benz XENTRY. VW Group’s ETKA (get order data and stock info), and DAF’s TOPEC vehicle configurator.

Phase 3: Process Flow Changes.

With their expansion into vehicle sales, the OEMs’ hunger for data grew further. The language shifted from “optional” to “recommended” for Dealer Applications. Their main aim was no longer just to gain access to data, but to implement their own processes and ways of thinking into daily dealership operations. The DMS became heavily dependent on OEM applications, and the first major dealership workflows moved outside the DMS. We saw the first signs of dealership resistance here, so OEMs countered by offering these applications at “no cost” and tying them to dealership bonuses. The trap was set.

• Examples: VW Group’s ElsaPro (Workshop orders), ElsaR, and SAGA/2 (warranty/claim processing). BMW’s Service Campaign (KTA1-KTA4). Stellantis’ Service Box v14 and Service Pad, and DAF’s Service Rapido and Technical Campaigns.

Phase 4: The OEM Application Ecosystem.

After taking over vehicle sales, the focus shifted to Aftersales. Repair orders were no longer opened inside the DMS; they were initiated in external applications where centralized vehicle history and service campaigns were already pre-loaded. By adding a simple “Transfer to DMS” button, the rules of the game changed forever. OEMs continuously added DMS functionalities — such as Workshop Planning, Electronic Vehicle Health Checks (eVHC), and automated customer notifications — creating an ecosystem of apps that only spoke to each other. They called them “Dealer Portals”. These applications were no longer recommended; they were mandatory. And with mandatory first-time provisions came the introduction of OEM software fees.

• Examples: Mercedes-Benz Online Appointment Booking / DSDbook. Porsche’s PCSS (Workshop orders, Vehicle data availability, Vehicle recall management, Contract management). Advanced middleware ecosystems such as the Toyota DPMM Message Queue and the Hyundai DSP Workshop Automation.

Phase 5: Total Control and the API Mandate.

Today, OEMs seek full visibility into the entire dealership operation, with heavy expansion into Reporting and Finance. They dictate what vehicles to order and what parts to keep in inventory, fundamentally changing data ownership. With the expansion of API-First integration technology, the OEM strategy has shifted from mandating a specific DMS to an “Any DMS, but mandatory OEM API-First” approach. If a dealer wants to process repair orders or sell vehicles, they must play by the OEM’s API rules.

• Examples: The BMW RIS API (Retail Integration Service layer) maps the entire sales and aftersales data flow. Mercedes-Benz MIAS One Invoice API, CoFiCo, and Stellantis Dealer Data Consolidation (DDC) and Free2Move.

The Current Reality: Dealership CRM and Inventory Takeover

OEMs have developed a massive appetite for CRM and parts inventory data — areas traditionally dominated by the DMS (with its ERP capabilities) or third-party tools like Salesforce. Dealership staff is slowly abandoning the DMS interface, spending their days feeding data into OEM applications that now lead the workflow.

Dealers are forced into this, incentivized by performance bonuses and the threat of losing access to crucial functionalities. They must share live inventory movements, open orders, and reserved parts.

What begins as an OEM offering “optional help” turns into a recommendation, then mandatory use. Now, parts ordering is often automated strictly by OEM algorithms. It’s common for dealers to find a truckload of parts they didn’t explicitly order, as seen with Mercedes-Benz DIMS (Dealer Inventory Management System) and DAF MDI (Managed Dealer Inventory) Ordering. A similar name is just a coincidence :-).

Given these dramatic changes, it is necessary to revisit the core question:

What happened to the DMS?

Despite the benefits of OEM integration, dealers are step-by-step losing ownership of the data they previously held securely in their own systems.

The DMS now focuses heavily on integration just to serve OEMs. It is increasingly relegated to operational tasks like printing orders, posting invoices, and basic accounting, while business management and customer intelligence shift entirely to the OEM’s domain.

What is the next step? Is it Game Over for DMS providers? The next logical target is an ambition to take over the core ERP itself. I can already see the first attempts at this takeover in the market. Let’s see where it ends up.

The Multi-Brand Nightmare

This shift is hitting multi-brand dealer groups the hardest. How do you manage a consolidated dealership company or dealer group if every single OEM forces you to play by their rules and use their specific walled-garden applications?

This challenge is apparent with a dealer group I currently advise on CRM & OEM integration. The solution becomes increasingly complex: if staff use an OEM’s external application for Brand A but remain within the DMS for Brand B, how can reporting and business operations be consolidated as OEM demands increase?

This is a highly challenging period for dealers and dealer groups — BUT not only for them.

For DMS providers, survival requires redefining their value with innovative, dealer-focused solutions. If they do not, OEMs will dominate and shape the dealership data ecosystem entirely.

Dr. Juraj Hanus, hanus@taxapa.com

Data Analytics & Automotive Applications Expert for Dealerships

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