A longtime automotive executive has launched a co-op to provide individual dealers with the bargaining power of a dealer group.

AutoTrust Dealer Alliance calls itself a first-of-its-kind, 100% dealer-owned cooperative, designed to give dealers “the scale and profitability of a large public group while preserving full independence and control.”

In a news release, AutoTrust said it aims to unite dealers nationwide and negotiate on their behalf directly with top-tier providers, “returning the savings and profits to the members who earn them.”

AutoTrust said it provides an alternative to the agent model for dealers who prefer the benefits of scale, and allows them to build “real equity” in the cooperative, with annual profit distributions tied to their contribution to collective revenues.

“We created AutoTrust to change the economics of automotive retail,” CEO David Mondragon said. “Our model rewards the dealers who generate the value, strengthens their competitive position and builds an ownership stake in a growing enterprise.”

Mondragon’s auto industry experience includes executive roles with Ford Motor Company and S&P Global Mobility. He was also founder and CEO of Triton Automotive Group, a dealer-owned provider of dealership services.

AutoTrust said its first phase, AutoTrust Protect, is designed to deliver immediate F&I margin recovery through direct-to-provider agreements, including a partnership with Allstate to offer a range of F&I products, allowing dealers to use the Allstate brand at the point of sale to boost customer confidence.

The cooperative’s vision is to extend into financial services, advertising, technology and general procurement, creating “profit-sharing opportunities in nearly every dealership cost center.”

AutoTrust said its advisors include former Costco chief financial officer Richard Galanti, former Home Depot executive vice president Jim Inglis, ex-Borders Group CEO Bob DiRomualdo, former iA American Warranty Group president Kristen Gruber, Bakken Energy CFO Scott Kaplan and private-equity investor Steve Lebow.

The cooperative said enrollment is open for dealers nationwide.