CBT Automotive Network Podcast

Listen to the top automotive headlines on today's CBT Automotive Newscast for September 16, 2020 Today's headlines include: - With the election only seven weeks away, both major party candidates have made their stop in the auto-centric state of Michigan. - Fiat Chrysler and PSA have agreed to amend their planned merger. - After spending nearly two years in Japanese custody, former Nissan executive, Greg Kelley, appeared in court - General Motors is playing the EV game, and CEO Mary Barra says they intend to win. - GM also announced the date for the big reveal of one its premier EVs Visit CBTNews.com to watch the full interview and to check out all of today's top stories. https://www.cbtnews.com/cbt-automotive-newscast-september-16-2020/ Please remember to share your thoughts, comments, or questions.

Listen to the top automotive headlines on today's CBT Automotive Newscast for September 15, 2020 Today's headlines include: - Sonic Automotive continues to grow despite industry setbacks – Jeff Dyke - Auto manufacturers continue to lag behind due to a labor shortage - Dealers are also struggling with a shortage of auto technicians for their service departments - General Motors is at odds with an Iowa dealership group - Ford Motor Company is hoping that the new Ford Ranger Tremor will help the company dominate Visit CBTNews.com to watch the full interview and to check out all of today's top stories. https://www.cbtnews.com/cbt-automotive-newscast-september-15-2020/ Please remember to share your thoughts, comments, or questions.

Listen to the top automotive headlines on today's CBT Automotive Newscast for September 14, 2020 Today's headlines include: - President Donald Trump caught the attention of many auto companies - Sonic Automotive continues its expansion - Following a major stock climb, Nikola stocks fell as much as 13% - Auto dealers across Oregon were forced to evacuate and temporarily close their doors Visit CBTNews.com to watch the full interview and to check out all of today's top stories. https://www.cbtnews.com/cbt-automotive-newscast-september-14-2020/ Please remember to share your thoughts, comments, or questions.

Listen to the top automotive headlines on today's CBT Automotive Newscast for September 11, 2020 Today's headlines include: - The competitor to the Tesla Model S has arrived - Mercedes-Benz and Microsoft are teaming up to redefine auto maintenance - New-vehicle inventory continues to fall, especially for luxury vehicles - Hundreds of thousands of Americans filed for unemployment insurance last week https://www.cbtnews.com/cbt-automotive-newscast-september-11-2020/ Please remember to share your thoughts, comments, or questions.

Listen to the top automotive headlines on today's CBT Automotive Newscast for September 10, 2020 Today's headlines include: - KAR Global has signed a definitive agreement to acquire BacklotCars, Inc - Nikola shares are skyrocketing after GM took an 11% stake in the electric truck maker - After suffering its worst single-day loss in the history of the company, Tesla made a solid rebound - The Labor Day weekend brought air-travel its highest numbers https://www.cbtnews.com/cbt-automotive-newscast-september-10-2020/ Please remember to share your thoughts, comments, or questions.

Listen to the top automotive headlines on today's CBT Automotive Newscast for September 9, 2020 Today's headlines include: - General Motors will take a $2 billion dollar stake in Nikola to manufacture the Nikola Badger - In a memo sent out on Friday, GM announced that white-collar workers won’t return to their workplaces until next year - Volkswagen believes it may be in a position to overtake Tesla in the near future - Ram is trying to grab the attention of consumers with new versions of the 1500 https://www.cbtnews.com/cbt-automotive-newscast-september-9-2020/ Please remember to share your thoughts, comments, or questions.

Listen to the top automotive headlines on today's CBT Automotive Newscast for September 8, 2020 https://www.cbtnews.com/cbt-automotive-newscast-september-8-2020/ Please remember to share your thoughts, comments, or questions.

Today's CBT News headlines include: - Ford continues to press into the fight against COVID-19 - Fleet sales took a step back in the month of August - Used-car sales ended the month on a high note - Stock experts say that Tesla could be the most dangerous stock on Wall Street Visit CBTNews.com to watch the full interview and to check out all of today's top stories. https://www.cbtnews.com/cbt-automotive-newscast-september-7-2020/ As always, please remember to share your thoughts, comments, or questions.

Listen to the top automotive headlines on today's CBT Automotive Newscast for September 4, 2020 Please remember to share your thoughts, comments, or questions. https://www.cbtnews.com/cbt-automotive-newscast-september-4-2020/

Don't miss the top automotive headlines on today's CBT Automotive Newscast for September 3, 2020 https://www.cbtnews.com/cbt-automotive-newscast-september-3-2020/ Please remember to share your thoughts, comments, or questions. — #dealerlife #autoretail #automotive #sellingcars #autoindustry #cardealership #cardealer #cars #auto #retailautomotive #carbusiness #carbusinesslife #carownership #carbuying #retailauto #automotive #retailauto #carbusiness #automotive #autoretail #AutoNation #LAautoshow #MaryBarra #Ford

Today's headlines include: - Labor Day weekend is quickly approaching, and many car shoppers are expected to be on the hunt for their next vehicle - Ford Motor Company has completed its production of ventilators - Tesla expects to see a record rise as shares soar Visit CBTNews.com to watch the full interview with Dale Pollak and to check out all of today's top stories. https://www.cbtnews.com/cbt-automotive-newscast-september-2-2020/ As always, please remember to share your thoughts, comments, or questions.

On this week’s episode of the CBT News Market Update, new car sales came out to a retail SAAR of 11.16, down 12.6% from 13.39 in 2019. The inventory of new vehicles sold took a 29.6% drop from this time last year. Used-car sales also dropped below 2019 numbers for the first time since April. Sales came in at 149,050, a 21.5% decrease from last year’s number of 189,766. New car inventory is still struggling, down 19.5% from last year, but we do see about a 1% improvement week over week. Used inventory is up slightly by 7.1%. Here to break down how these numbers reflect larger industry trends is Lance Shafer, General Manager of Product and Technology at LotLinx, and Bob Lanham, Head of Automotive Retail for Facebook. The pair tackle how dealers’ overall paid digital ad spend has increased to pre-COVID levels. https://www.cbtnews.com/cbt-news-market-update-bob-lanham-facebook-lance-schafer-lotlinx/

Retail automotive trends are constantly shifting so it’s important to stay up-to-date with the latest information and data so you don’t miss out on any opportunities. Joining us with the latest Cox Automotive COVID-19 Impact Study is David Foutz, Vice President of Sales at Xtime. We’re discussing the study’s data and its implications on dealership service departments. The glaring issue that was found in the impact study was the logistics surrounding service pickup and delivery demand. Not only are these services gaining traction with consumers during the COVID-19 pandemic, but customers are also willing to pay for the added convenience. This signals a new potential revenue stream for dealerships. On the flip-side, for dealers who don’t offer service pickup and delivery, this could be a missed opportunity. Cox Automotive data shows that 22% of vehicle owners have used service pickup and delivery since COVID-19, and about 90% of users were satisfied with their experience. In fact, 48% of vehicle owners are likely to pay upwards of $20 for this service. However, around 80% of dealers aren’t even charging for the service. In addition to added revenues, service pickup and delivery have shown to increase service customer retention. 69% of consumers are likely to choose a dealership over another based on the availability of these services. https://www.cbtnews.com/is-your-dealership-charging-for-service-pickup-and-delivery/

Many auto retail professionals are wondering how to successfully thrive and recover from the pandemic that we face. Several new and innovative changes have been made nationwide in dealerships and digital retailing seems to be the way of the future. Here to talk more about those changes and how to improve your profit is Pete MacInnis, Founder and CEO of eLEND Solutions. In this segment, Jim and Pete first discuss how the COVID-19 pandemic has forced the acceleration of process changes, like digital retailing, for automotive dealers. In Pete’s 40-year career, this has been unprecedented. However, he is not very surprised by it. Pete believes that crises like these are blessings in disguise. Dealers tend to become more efficient, more profitable, and provide consumers with better customer experiences. From Pete’s perspective, consumers are driving these process changes. The boost we are seeing digital retailing is a consequence of that. The heightened presence of digital retailing also signals to customers that long-term process changes are coming. At this stage of digital retailing maturity, Pete believes that it still has a long way to go. At the end of the day, consumers want a better car buying experience. Dealers then need to align their processes with consumers’ desires. While great strides have been made, certain areas are still falling short. Sales and finance have been working in tandem in store for decades. Digital retailing will never reach its full potential without the digital finance component. Pete MacInnis brings 40 years of experience in automotive finance and technology to the industry. He began his career with WFS Financial where he spent 14 years in various management positions. He then co-founded the auto finance company Onyx Acceptance in 1993. Onyx originated over $14 billion in auto loans, went public in 1996, and was acquired by Capital One in 2005. In 2003, Pete founded DealerCentric, known today as eLEND Solutions, one of the industry’s leading FinTech companies. https://www.cbtnews.com/elend-solutions-ceo-pete-macinnis-on-aligning-digital-retailing-with-consumer-demand/

In the midst of racial injustice and suffering throughout the United States, businesses are turning their focus toward diversity and inclusion. Several retail automotive groups are taking a stand and amplifying their voices to spark change. Jenell Ross, President of Bob Ross Auto Group joined us to talk about her unique position as the only African-American woman to own a Mercedes-Benz and Buick GMC dealership. In this segment, Jim and Jenell first discuss her career journey in the automotive industry. At the young age of 27, Jenell assumed her role as the leader of the Bob Ross Auto Group after her father passed unexpectedly. Carrying on his legacy has been a challenging but rewarding process. In light of the racial inequities that still happen on a daily basis in the United States, minority representation, especially African-American representation, is at the forefront of every industry, and automotive retail is no exception. In Jenell’s words, the lack of black-owned dealerships in this country is very unfortunate. However, in order to create more opportunities for African-Americans in the industry, Jenell believes that it begins with education. When it comes to the buying power of African-Americans, there needs to be more of a conscious effort to bring this population into the industry. Jenell has made it a point to go into the schools and start dialogues early with young people about the opportunities on the retail side of the business. Education for consumers is important as well. If consumers have a better understanding of who they are actually buying from, then their shopping choices might look very different. “There needs to be more of a concentrated effort to diversify on all levels within automotive. From the OEM perspective, from the suppliers’ perspective as well as the dealer body,” says Jenell. “We need to be made up of what American looks like, and it’s a very diverse country. And there is a lot of buying power from minorities buying vehicles.” Bob Ross Auto Group has been serving the greater Dayton, Ohio community for over 43 years. In 1974 Bob Ross Sr. was chosen to participate in General Motors’ first Minority Dealer Academy where he was the first graduate to be approved as an automobile dealer. Ultimately, Bob became the African-American Owned Mercedes-Benz dealer in the world. After his untimely passing in 1997, Jenell took over the dealer group and guided the dealerships into the future. Jenell is also a former chairwoman of the AIADA. https://www.cbtnews.com/oh-dealer-jenell-ross-on-creating-more-opportunities-for-african-americans-in-the-retail-auto-industry/

If your dealership is not using Facebook as part of its marketing strategy, then it should be. The social media platform has become more than just a place to catch up with old friends. It is now a powerhouse of advertising tools and resources. Paul Potratz, Owner of Potratz Partners Advertising joins us to discuss Facebook and how to best use it for your business. From Paul’s perspective, dealerships that have not seen the ROIs they expected from Facebook advertising are likely taking the wrong approach. Many businesses advertise on Facebook the same way they would advertise on radio or TV; by just making announcements. Facebook is designed to create conversations. By giving consumers to option to message your dealership directly through Facebook, you have opened a unique line of communication. To entice more consumers to start a dialogue through Facebook, the messaging behind the ad’s call to action has to be correct. Paul recommends avoiding the mention of a specific car or a specific price. Talk in general terms and paint a visual picture for the customer. Once the customer starts that dialogue, make sure to have the staff infrastructure in place to field and respond to those messages. Responses don’t necessarily need to be instantaneous, but once the conversation has begun, so has the sale. https://www.cbtnews.com/paul-potratz-on-creating-the-right-messaging-behind-your-facebook-ads/

According to Cox Automotive’s COVID-19 Consumer and Dealer Impact Study, there are fewer new-car shoppers currently in the market for a vehicle. Since the total available market is smaller than usual, dealers need to strategize smarter than ever for their share. To make matters more challenging, dealers are also facing rising prices and low inventory levels. However, they can still stand out from their competition and attract customers by delivering an experience that not only meets individual needs but also anticipates them. AI technology can help give dealers this extra edge. Here to discuss how AI can help dealer recovery efforts further, is Chase Abbott, Vice President of Sales at VinSolutions and Dealer.com (Cox Automotive). AI technology can process huge volumes of readily available customer data online to make accurate predictions instantly. AI allows dealers to pinpoint whether customers are ready to buy a new vehicle and even what make and model they are looking for. Having this information in seconds can help dealers better meet customer needs and drive more sales. The statistics speak for themselves. According to VinSolutions Automotive Intelligence Dashboard, consumers classified as ‘ready to buy’ are nearly 10.8 times more likely to make a purchase within 30 days, than consumers without data indicators. The brand, consumers ultimately select, is also correctly predicted for 84% of sales and the model is predicted correctly 46% of the time. Some other AI technology tools and insights dealers can take advantage of right now are the number of customers who repeatedly return to the dealership website and sentiment analysis. Sentiment analysis tracks how consumers respond to targeted messaging. These data points are crucial for dealers to speed up their sales recovery. https://www.cbtnews.com/how-ai-technology-can-help-dealers-boost-sales-recovery/

Joining us today to give a full recap on retail automotive trends and what dealers need to know is Steve Finlay, senior editor at WardsAuto. For a number of years, automotive digital retailing has been a topic of conversation, but the COVID-19 pandemic kicked it into high gear. Steve wonders if the surge of online transactions and home delivery will stick, or if many dealers will revert back to their usual practices. While many consumers would still rather do their shopping online, the flip-side for dealers is that building the infrastructure to facilitate online transactions can be expensive. Steve asks – Can smaller dealers really afford this? However, digital retailing allows consumers to do most of the heavy lifting, while dealers can spend less on marketing and other expenses. Inventory also continues to be a challenge for dealers nationwide. Domestic OEMs have considerably reduced the manufacturing of their sedan models. This is due to the high demand for trucks and SUVs among consumers. Brand loyalty is also not what it used to be according to Steve. Despite these challenges, Steve believes that the auto industry is resilient and pre-COVID sales levels are expected to return in 2022-2023. In addition to being the senior editor at WardsAuto, Steve Finlay is also the editor of WardsAuto Dealer Business Magazine. As such, he covers automobile dealers, OEMs, and retail practices. His career in journalism started 42 years ago as a crime reporter. For the last 23 years, he has followed the automotive retail industry, and continues to write informative and engaging stories. https://www.cbtnews.com/wardsauto-editor-steve-finlay-on-digital-retailing-inventory-struggles-and-more/

Since the start of the pandemic, many dealers have struggled to acquire used inventory. Is sourcing from private parties the way of the future? On today’s show, we’ve brought in Stephen Stearns, Used Car Manager at County Ford in North Carolina and we’re also joined by Nick Patterson, CEO and Co-Founder of VettX. In this segment, Nick and Stephen discuss why sourcing private party vehicles for the dealership is so important for the used car department. For Stephen, having the option and convenience of a partner like VettX allows him to not be completely reliant on auctions for his inventory. The time he saves allows him to spend more energy on running the used car department. The inventory sourced through VettX has also had a huge impact on used car sales performance. Like many dealers, Stephen believes that if you have the right amount of the right inventory, then you’re winning the game in today’s COVID-19 marketplace. With this new profitability, Stephen is also expanding the kinds of vehicles his deapertment offers. Nick and Stephen then tackle what it takes to be successful at buying private party vehicles and some of the challenges buying from the third-party market. There’s always a lot going on the dealership, however, Stephen says that VettX has helped them build the necessary infrasturcture to buy their third-party vehicles in an efficient and prdocutive way. Given the current market conditions that dealerships are facing, both Nick and Stephen think that everyone big or small should be putting their focus on this market. https://www.cbtnews.com/how-vettx-helps-dealerships-utilize-the-third-party-vehicle-market-to-its-full-potential/

Welcome to the Weekly Automotive Market Minute with Bridget Fitzpatrick: market updateThis week, new car sales came out to a retail SAAR of 11.16, down 12.6% from 13.39 in 2019. market updateThe inventory of new vehicles sold was 188,633 a 29.6% drop from this time last year when the inventory sold was 267,894. market updateUsed-car sales dropped below 2019 numbers for the first time since April. Sales came in at 149,050, a 21.5% drop from last year’s number of 189,766. market updateInventory stock levels among all new vehicles was down 19.5% from last year. Inventory stock levels for used car levels were up 7.1%. Average interest rates remain low at 3.14%, and the average cost of gas is $2.20 per gallon. https://www.cbtnews.com/the-weekly-automotive-market-minute-for-august-26-2020/

Many of our personal and professional lives have been altered since the start of Coronavirus, but that doesn’t mean optimism and positivity have to take a back seat. Sales and profit are still happening! Today we’re talking to Alex Goldfayn, CEO of the Evangelist Marketing Institute, about how optimism and positivity can actually boost sales, and about his book released this week titled 5-Minute Selling: The Proven, Simple System That Can Double Your Sales … Even When You Don’t Have Time. In this segment, we first find out more about Alex’s background as a revenue generating specialist, and the importance of staying positive through the pandemic business disruption. Jim and Alex then discuss the inspiration behind his latest book, 5-Minute Selling, where readers will learn the the power of picking up the phone and the importance of asking ‘did you know?’ questions. Next, the pair tackle techniques to motivate struggling salespeople, and how to push through fear and reach business goals. Digital retailing is also a topic of conversation and Alex dispenses his key piece of advice when it comes to selling online. Alex is considered one of the top-rated and most acclaimed sales speakers in the world. He specializes in motivating sales teams, managers, executives and owners to take simple actions which will grow their business. He is a Wall Street Journal best-selling author and has been featured in Forbes, Mashable, and Technologizer. https://www.cbtnews.com/ceo-alex-goldfayn-discusses-key-communication-strategies-to-generate-more-sales/

Many service directors are faced with the difficult task of eliminating positions as the pandemic continues, but one service director has been able to turn things around for some of his staff by promoting and reassigning them to other areas. Here to talk more about some of the best practices he has implemented in his service department during the pandemic is Daniel Korte, Service Director for Serra Traverse City in Michigan. While the state of Michigan allowed service departments to remain open as essential businesses, Daniel said that Serra Traverse City still felt the stings of COVID-19. In fact, Daniel said he had to reevaluate their objectives and decided to transfer the express service drive and redirect those customer to the what Daniel calls the transportation department. This way instead of eliminating auto tech positions, they were transitioned into new or different roles. Daniel also tries to run his department more like a partnership rather than an employer-employee relationship. That includes a tier system pay plan, and a positive department culture. Serra Traverse City has eight locations across the state of Michigan representing seven brands including Audi, Cadillac, Nissan, Subaru, Toyota, Volkswagen and Volvo. https://www.cbtnews.com/re-adjusting-service-department-goals-during-the-pandemic-daniel-korte-serra-traverse-city/

The retail automotive industry can sometimes be a rough business, from dealing with sales to management. How are you navigating? How do you keep not only yourself, but also a team energized and engaged? Here to talk about some things you can incorporate at your dealership is Mike Robbins, speaker, coach and author of five books, his latest titled We’re All in this Together: Creating a Team Culture of High Performance, Trust, and Belonging. In this segment, Mike tells us about his background and journey to becoming a sought after speaker. After playing college baseball at Standford University, Mike was drafted by the Kansas City Royals organization and unfortunately was injured before he could make his major league debut. Since then, Mike has dedicated his career to helping companies create high performing teams with great leadership. He then discusses how the Coronavirus had affected people personally as well as professionally, and the tips he has for poeple dealing with anxiety over the constant changes and disruptions in life. He also tackles the keys to a healthy and positive dealership culture, and the importance of staying motivated and organized. In addition to speaking and writing, Mike is the host of the We Are In This Together podcast. Through his platform he teaches important techniques that allow individuals and organizations to be more appreciative, authentic, and effective. His clients include Google, Wells Fargo, Microsoft, and Airbnb to name a few. https://www.cbtnews.com/author-and-former-mlb-player-mike-robbins-on-inspiring-your-team-to-win/

The mid-year numbers are out and there have been some interesting developments for new vehicle franchises, according to the latest Automotive Franchise Activity Report from Urban Science. Here to talk about the latest findings and projections is Mitch Phillips, Global Director of Data at Urban Science. Mitch explains that prior to 2010, dealerships declined on average of one to two percent year over year, but since then, the levels have remained flat, fluctuating on average only a half of one percent. This includes consolidation efforts. For example, when FCA, or Fiat Chrysler, brought the Jeep, Dodge, and Ram brands under one rooftop. The sales throughput has also been increasing over this time period of the last ten years. Since 2009, it has gone from an average of mid-600s per dealership up into the 900s that we see today. When it comes to COVID-19, franchise market sales decreased 20 to sometimes even 40 percent per month during March and April, however, since May, sales have been rebounding quickly. Mitch says that despite these poor numbers, very few dealerships have gone out of business. As Global Director of Data, Mitch is tasked with managing and advancing data for all solutions including network analysis, dealership operations and consumer engagement. He provides his expertise in support of strategic development, sales, marketing, methodology, training and application development. https://www.cbtnews.com/number-of-dealership-rooftops-remains-stable-mitch-phillips-urban-science/

On this week’s episode of the CBT News Market Update, new car sales came out to a retail SAAR of 11.74, down 9.4% from 13.42 in 2019. The inventory of new vehicles sold took a 7.3% drop year over year. However, used-car sales continue to stay ahead of 2019 with an 8.4% year over year increase. New car inventory is still struggling, down 20.3% from last August, but used inventory is up slightly by 5.4%. Here to break down how these numbers reflect larger industry trends is Sean Peoples, Chief Revenue Officer for LotLinx and Shawn Vaughn, Chief Operating Officer at VBM Auto Group out of Texas. https://www.cbtnews.com/cbt-news-market-update-shawn-vaughn-vbm-automotive-sean-peoples-lotlinx/

The mental aspect of sales can weigh heavily on sales teams in dealerships across the country. Dealers are always looking for ways to motivate their teams to push sales to the next level. Dave Anderson, leadership expert and president of LearntoLead joined us to talk about how to motivate a poor performer on your sales team and help them take that next step. Now, the best way to prevent poor performers in your dealership is to not hire them in the first place. If you continue to have a pattern of poor performers, then it might be time to look at your hiring strategy. To turn around a poor performer, Dave says that sales managers need to do four things. The first is establishing an objective with the poor performer. Provide them with the utmost clarity on what the expectation is. Then, establish a deadline to achieve that objective, and subsequently, a consequence if they don’t. Don’t forget to give them feedback during this process so they are guided in the right direction. If they are still not performing after all of that, then be sure to fulfill whatever consequence you established. To hear more valuable insight and information from Dave Anderson, be sure to watch our interview above. Known as ‘Mr. Accountability,’ Dave is an acclaimed international speaker and author of 14 books on personal and corporate performance improvement. After working in the car business for years, Dave began LearnToLead in 1999 with the goal to help individuals and organizations reach their personal and corporate potential. https://www.cbtnews.com/turning-around-the-poor-performer-dave-anderson-learntolead/

When the pandemic first hit the United States in early March, dealers began to revaluate their department budgets and overhead costs to offset the drop off in sales. Unfortunately, one of the first departments to have strong budget cuts was marketing. However, as sales continue to rebound, many dealers are back to their pre-COVID ad budgets according to John Fitzpatrick, co-founder and CEO of Force Marketing. In this segment, John breaks down automotive marketing strategies that are proving successful in today’s uncertain marketplace. At Force Marketing, John says that he’s seeing a smarter allocation of ad dollars in the areas that are most measurable. So, automotive retailers are really leaning into the idea that every dollar in marketing and advertising needs to have an ROI tied to it. Each ROI is a benchmark that needs to be improved and it needs to drive the right audience. At CBT, we’ve spoken to many dealers that have said that in May and June, they were selling more cars with marketing budgets cut by sometimes as much as 75%. However, John believes that this performance was a short-term scenario based off of pent-up demand. He reminds us that 82% of car shoppers spend 90 days online researching before they make a purchase, so sales in May could have come from marketing strategies in March. That means, that marketing strategies today can influence sales up into late October of this year. To hear more valuable insight and information from John Fitzpatrick, be sure to watch our interview above. Force Marketing has been on the leading edge of technology-enabled, data-driven multi-channel marketing services for automotive dealers and other retail automotive professionals since 2007. As CEO, John oversees more than 100 marketing professionals and works with clients including large dealer groups, Tier II and III ad associations, and OEMs. https://www.cbtnews.com/force-marketing-ceo-john-fitzpatrick-on-todays-auto-marketing-recovery-and-impact/

Dealership service departments around the nation are adjusting to the ‘new normal’ in a post COVID-19 world. But what exactly does this mean? We spoke with fixed-ops expert Manny Escalon about the current state of service departments, and the best practices to ensure a high rate of customer acquisition and retention. Manny is the service director for Beck & Masten Buick GMC South in Houston, Texas. In this segment, Manny and CBT anchor Jim Fitzpatrick discuss how his service department has fared throughout COVID-19, and the changes he and his team have adopted in light of the pandemic. They also tackle the issues facing the service department in terms of customer service and retention. Recruiting auto technicians and reducing turnover was also a topic of interest, as well as incorporating fixed operations into the dealership’s overall digital strategy. For over 10 years, Manny Escalon has been the service director for Beck & Masten Buick-GMC South, where his department averages 2,400 ROs per month. Family owned and operated in the Houston Area for over 30 years, Beck & Masten Buick-GMC South continues to be one of the top GMC dealers in the entire state of Texas. https://www.cbtnews.com/service-director-manny-escalon-on-customer-retention-during-the-pandemic/

Welcome to the Weekly Automotive Market Minute with Bridget Fitzpatrick: market updateThis week, new car sales came out to a retail SARR of 11.74, down 9.4% from 13.42 in 2019. market updateThe inventory of new vehicles sold was 221,758 a 7.3% drop from this time last year when the inventory sold was 239,092. Used-car sales continue to outpace 2019 numbers. The inventory of used-vehicles sold was up to 191,808, an 8.4% increase from last year’s number of 176,983. market updateInventory stock levels among all new vehicles were down 20.3% from 2019. Inventory stock levels for used-cars were up 5.4%. The Dow Jones was up 0.48% at opening bell this morning, and the S&P 500 is up 0.23%. Average interest rates remain low at 3.21%, and the average cost of gas is $2.18 per gallon. For more detailed information, check out the CBT News Market Center powered by LotLinx. https://www.cbtnews.com/the-weekly-automotive-market-minute-for-august-19-2020/

More women have emerged in the retail automotive industry in recent years and one woman in Nevada is truly making a name for herself as Findlay Automotive Group’s first female General Manager. We’re pleased to welcome Melisa Eichbauer, general manager at Findlay Volkswagen Henderson. By her own admission, Melisa sort of fell into the industry after taking a gap year from her college studies in criminal justice. She began on the sales floor as so many managers do, and after going through various levels of management, she became the general sales manager of a large Chevy store. Then, Melisa’s career came full-circle when she landed the general manager position at Findlay Volkswagen Henderson, the same store where she started in sales. She took the helm about three years ago and has been enjoying the job ever since. Even amidst the COVID-19 pandemic, Melisa has been hard at work eliminating inefficiencies and redundancies in the dealership, which she calls ‘pandemic productivity.’ They ramped up their home delivery, digital retailing, and concierge services, and had stronger July sales year-over-year while still keeping every single staff member employed. Melisa’s advice to women considering a career in automotive, “Don’t be afraid, don’t buy into the stereotype… find a mentor to help coach and guide you. Don’t let anyone treat you like you’re different, outwork everyone else, and keep seeking opportunities.” https://www.cbtnews.com/melisa-eichbauer-on-becoming-the-first-female-gm-for-findlay-automotive/

Across the entire industry, there is an evident lack of women in automotive. To engage young women joining the workforce and attract women currently working outside of the industry, it will take more than just a job posting. Hilary Haron, owner of Haron Motor Sales and Liza Borches, president and CEO of Carter Myers Automotive joined us to talk about new opportunities for women and how they are helping to grow the female presence in automotive retail. In this panel, Liza and Hilary discuss how they began their journeys in the automotive industry and where their careers have taken them thus far. They also share what their experiences have been in the industry specifically as women and the biggest obstacles they faced along the way. From their perspectives, we also find out what changes need to be made in order to attract and retain more women dealer principles. Liza Borches is a fourth-generation President and CEO at Carter Myers Automotive (CMA) which operates 15 dealerships and 17 franchises across the state of Virginia. Liza is also the recipient of the 2020 Barbara Cox Woman of the Year Award presented by Cox Automotive and a member of the Board Of Directors for the Virginia Auto Dealers Association. Haron Motor Sales was established in 1945 and represents three franchises: Jaguar, Land Rover, and Volvo. In addition to her job as owner, Hilary Haron is an Automotive News 40 Under 40 Honoree for 2020, and a member of the California New Car Dealers Association’s board of directors since January 2019. https://www.cbtnews.com/women-in-automotive-panel-with-dealers-hilary-haron-liza-borches/

The numbers are staggering, there are only 265 black-owned dealerships across the US. For decades, minorities wanting to get into the retail automotive industry have been met with many obstacles. In 1975 Winston Pittman, Sr. got his start in the auto industry as a car salesman and since then has become one of the largest Black dealers in the nation. He joins us today as President and CEO of Pittman Enterprises. Jim and Winston first discuss how business has been for Pittman Enterprises. Winston says that in order for his dealer group to become more manageable for himself and his son, he reduced his holdings in Ohio and Kentucky, to a few stores in South Carolina and Georgia all within 30 minutes of one another. The pair then tackle the impact that COVID-19 has had on the dealer group. According to Winston, the last time he saw this much volatility in the market, Jimmy Carter was president and interest rates were at 22%. However, Winston never had any intention of closing his doors or dismissing his staff. The conversation then shifts to African-American representation in the automotive retail industry. Going back to around 2005-2006, there were approximately 800 African-American dealers, however by 2009, that number dropped by 40%. Many years of Winston’s career have been spent trying to get that number back up. It is crucial for the dealer body to represent the consumer base, so he encourages African Americans in the industry to keep at it, and recognize how important their roles are to retail automotive as a whole. In addition to building his automotive empire, Winston Pittman Sr. formerly served as the president of the Toyota-Lexus Minority Dealers Association and as the chairman of the National Association of Minority Automotive Dealers, of which he is still a board member. He was also a member of the Lexus National Dealer Council, the Dodge National Dealer Council, and the DaimlerChrysler Minority Dealers Association. https://www.cbtnews.com/winston-pittman-sr-shares-his-advice-for-aspiring-minority-dealers/

Dealers across the nation have dealt with highs, lows, and various other changes in their daily operations since the start of the pandemic. It has left many wondering, what’s in store for the future of their dealerships. We caught up with Gary Barbera, President and Founder of Barbera Autoland to get his perspective. Now that the auto industry is about halfway into the third quarter, Gary Barbera says when it comes to strong summer sales, dealers need to ask themselves – is it market correction or pent up demand? Like many others, Barbera Autoland had great sales in May, June, and July. However, levels are starting to even out in August. Now, Gary says, performance comes down to who has been training, who has the right culture, and who has the right business model. At the height of the pandemic restrictions, Pennsylvania dealerships were only open for service. At this time, Gary decided to double down on supporting his community with charitable initiatives. From food banks, to toy drives, to local schools and hospitals, the Barbera family knew that members of the community were relying on them. Barbera Autoland is celebrating its 30th year of business and it continues to be Philadelphia’s premier Dodge, Ram, Chrysler, and Jeep provider. In addition to receiving accolades from FCA, Dodge, and J.D. Power, the Barbera family is also dedicated to charitable giving through the BarberaCares program. https://www.cbtnews.com/pa-dealer-gary-barbera-on-dealership-recovery-culture-philanthropy/

At CBT News, we’ve talked a lot about diversity and the evident lack of minority representation in the retail automotive industry. This subject alone has left many companies scrambling to solve the tough questions of why and what can be done. Today, we’ve brought in two special guests to go in-depth on these issues. At FCA, Eric Wong and Wadette Bradford are using their platform to grow diversity in the retail automotive sector. Eric serves as FCA’s senior manager of dealer market representation, diversity, and technology, and Wadette works as FCA’s manager of dealer network diversity and investments. The pair joined us to discuss FCA’s Dealer Diversity Program. Empowering minority-owned dealerships is a step in the right direction when it comes to growing diversity in the auto industry. OEMs must understand their role in creating successful opportunities for minority dealers. FCA’s philosophy is to have their dealer network represent the demographic in which they do business. Not only is that good for the representation of the brand, but it is good for business in general. In fact, FCA is now ranked number two in minority-owned stores for the U.S. automotive industry. According to Eric, that is good progress, but they are striving to achieve that number one spot. Currently, FCA has 244 minority dealers, 183 of which are majority owners. There are 300 women dealers who own some portion of the dealership with 100 of them at majority level ownership. 30 of these women dealers are exclusive owners. FCA’s minority dealers are the most profitable as well. https://www.cbtnews.com/fcas-dedication-to-building-a-more-diverse-and-inclusive-dealer-body/

When we last spoke to NJ CAR president Jim Appleton in April, New Jersey was in the midst of the COVID-19 shutdown. All vehicle sales were done remotely, all delivery was contactless, and there was an 80 percent drop in vehicle sales state-wide. As April came to a close, sales were down 50 percent but continued to steadily rise. Sales really started to pick back up in June and July as Coronavirus restrictions began to loosen. The pent up consumer demand started rushing back into the dealerships. While sales look strong as we settle into August, the industry now faces inventory challenges. The OEM supply change started breaking down as far back as late 2019 according to Jim. China, South Korea, and Japan were affected by the virus and couldn’t manufacture the parts that were then assembled in the U.S. As the pandemic started rolling through the U.S., those plants were forced to shut down as well. So, what the industry is seeing is a rolling disruption that Jim believes will go well into October of this year. “Dealers have become much more efficient. They’re working leaner in their sales and BDCs,” says Jim. “So, this combined with the fact that we’re back at record sales levels with fewer people and less overhead, and then you layer on top of that, the PPP money and dealers are looking at a pretty good quarter.” As president of the New Jersey Coalition of Automotive Retailers, Jim Appleton has represented New Jersey’s franchised new car and truck retailers for over 20 years. https://www.cbtnews.com/what-the-future-holds-for-new-jersey-dealers-jim-appleton-nj-car/

A year after the 2020 Drako GTE was officially announced, the 1,200-horsepower, electric, luxury sedan is still getting tons of attention and notoriety for its robust performance, and hefty price tag. After nearly 10 years of development, co-founders Dean Drako and Shiv Sikand made a splash in the EV market with an ultra-exclusive, limited production of just 25 cars. In today’s segment, we catch up with Dean Drako to discuss the future of Drako Motors and the electric vehicle market as a whole. Dean and Shiv embarked on this venture because they saw that electric vehicles were and are trending at such a speed that they will eventually take over and dominate the automotive industry. They also saw the EV market as a vessel to explore innovation in software and technology. EVs open up a new world of engineering possibilities. “I believe the cleanliness and the ease of use and ease of maintenance of electric cars will win out in the long run,” says Dean. “They’re just a lot simpler in their mechanical constructs, than gas-powered engines. Dean is a Silicon Valley tech entrepreneur who has started a number of successful companies like Barracuda Networks, Eagle Eye Networks, and IC Manage. https://www.cbtnews.com/drako-motors-founder-on-disrupting-the-ev-market-with-1-2m-supercar/

Up until the COVID-19 virus hit the state of California this past March, Ellena Woodhams’ job as the compliance and outreach director for Stevens Management Co., had been relatively straightforward. The company oversees Stevens Dealership Group, comprised of four dealerships including Mercedes-Benz of Modesto, Modesto Subaru, Fresno Acura, and Marin Acura. Once the pandemic hit, Ellena says it immediately changed the way all four of their dealerships did business. While the service and parts departments we deemed essential businesses, sales were not, and because each of the four dealerships was located in a different county, Ellena and her team had to contend with four times the amount of regulations. However, she developed a system of communication that allowed her to stay in contact with the dealerships and provide them with up to the hour changes. In fact, she worked with the CNCDA to lobby the California state government in favor of getting sales operations back up and running. The challenges didn’t stop there though. The group had to shut down two of their four dealerships due to a COVID-19 outbreak. They ended up doing a massive 48-hour long decontamination process. Ellena says has done all she can to maintain compliance as well as the health and safety of her customers and staff. It has paid off because May, June, and July were strong months for sales. In addition to her role as the compliance and outreach director, Ellena is an Automotive News 40 Under 40 honoree for 2020, and a NextGen Committee member for the California New Car Dealers Association. https://www.cbtnews.com/how-ellena-woodhams-stepped-up-the-covid-response-across-her-familys-4-dealerships/

On this week’s episode of the CBT News Market Update, new car sales came out to a retail SAAR of 11.03, down 10.6% from this time last year. The inventory of new vehicles sold took a 10.9% drop year over year. However, used-car sales continue to stay ahead of 2019 with a 5.7% year over year increase. New car inventory is still struggling, down 21.4% from last August, but used inventory is up slightly by 3.3%. Here to break down how these numbers reflect larger industry trends is Jonas Moskowitz, Senior Vice President of East Coast Sales for LotLinx, and Zo Rahim, Manager of Economics and Industry Insights at Cox Automotive. https://www.cbtnews.com/cbt-news-market-update-zo-rahim-cox-automotive-jonas-moskowitz-lotlinx/

When dealing with the COVID-19 pandemic, serial entrepreneur Tom Maoli says, “the barrier became the blessing.” Tom is the President and CEO of Celebrity Motor Cars, LLC, a New Jersey and New York-based auto group that includes several high-line dealerships. With major OEM plants shut down for weeks or months, depending on their location, new car inventory became tight. Tom believes that’s not necessarily a bad thing. “It’s supply and demand. It’s business 101,” says Tom. “Our margins are out of the roof because our inventories are low. Margins are up, and just to add to that, people don’t want to shop multiple stores because of COVID…[Customers] want to come in, they want to make the right deal, they trust us, and they’re out the door.” Tom also discusses President Trump’s crisis management plan saying that dealing with a crisis of this caliber will never be perfect. However, he praises the stimulus package and subsequent PPP money that saved many businesses, and he’s confident that Trump has a shot at winning his re-election later this year. As for Celebrity Motor Cars, their sales are up 10% year over year, only using 35% of their original marketing budget. Many dealers across the country are seeing similar results, and Tom says that dealers are resetting their overhead expenses and re-evaluating their staffing needs. In addition to Celebrity Motor Cars, LLC, Tom Maoli is the president and CEO of Real Estate Opportunity Investments, LLC, a residential and commercial real estate development and investment company, along with being founder and CEO of Joe Zone coffee company. He is also the host of the popular Go Big Or Go Home radio show. https://www.cbtnews.com/tom-maoli-asserts-covid-19-created-a-perfect-storm-for-auto-retail/

For many years, digital retailing in the auto industry has largely been on the periphery of the automotive sphere, but thanks to COVID-19, it’s now fully coming into focus. The reality is dealers are being forced to do more with less. In fact, according to a Cars.com poll from May, 54% of dealers are already using some form of digital retailing. However, COVID-19 has forced those dealers to use their tools efficiently, not just simply host them on their website. Here to discuss how dealers can fully realize their digital retailing strategy is Joe Chura, Co-founder and Chief Executive Officer of Dealer Inspire. According to Joe, he’s seeing dealers really start to comprehend the scalability of these tools. Digital retailing isn’t just about being able to do the paperwork to purchase a vehicle online. Dealers are realizing that they can desk 15 deals at once versus the one-to-one interaction in the store. With that, comes the need for high performing staff members who cannot only desk deals but who also understand the technology. Joe Chura began his career at the Ford Motor Company working first on the assembly line at 20 years old. Over the next decade, Joe held positions at many different levels in the industry including Ford marketing and sales, dealership general manager, and BDC manager. He co-founded Dealer Inspire in 2012 in order to provide dealers with innovative solutions. In a few short years, Dealer Inspire has 600 employees serving over 3,000 clients and 27 OEM brands. https://www.cbtnews.com/how-to-win-the-digital-retailing-game-joe-chura-dealer-inspire/

Earlier this week, industry heavyweight KAR Global announced that auto retail veteran Steve Jordan would join their ranks this September as their executive vice president of dealer sales. As the former National Independent Automobile Dealers Association president, Steve joins us to discuss his transition and how he will lead KAR’s U.S. and Canadian dealer sales organization. Working at the NIADA was one of the highlights of Steve’s career. He and his team brought together the fractured independent group under one single banner, and re-established the NIADA name and voice at the legislative level in Washington, D.C. This was a tall order considering that now the NIADA has 16,000 members across all 50 states and there are 44 state associations that work in tandem with the national association. Shaun Petersen has been named as the interim president for the time being. KAR Global is uniquely positioned in the market place to be on the leading edge of what the ‘new normal’ is going to look like for independent dealers, franchise dealers, and consignors. That is what attracted Steve to the position. This opportunity will allow Steve to serve the same dealer community he has been in for the last 20 years, in a whole new way. Prior to becoming KAR Global’s executive vice president of dealer sales, Steve Jordan served at the President of the National Independent Automobile Dealers Association for seven years. He was also the CEO and executive director of the Florida Independent Auto Dealers Association. Earlier in his career, he served as managing partner at Byrider and CNAC, and was a co-founder of this.com. https://www.cbtnews.com/steve-jordan-joins-kar-global-after-7-years-as-niada-president/

Prime Automotive Group was growing tremendously before the COVID-19 outbreak. CEO Todd Skelton was tasked with keeping the momentum up while also managing the impact of the pandemic. Todd joined us to talk about strategies for maintaining a strong business model during these uncertain times, as well as giving back through the Prime Cares community initiatives. In this segment, Todd and Jim discuss how COVID-19 has affected Prime Automotive Group’s business in the last 90 days, their digital retailing tools and strategies, as well as the pain points they have experienced with staffing changes. The pair also tackle new car inventory supply challenges, how automakers have responded to the pandemic, and whether or not it has made permanent changes to the industry as a whole. Todd was appointed CEO in January of this year and now leads more than 1,800 employees at dealerships across 8 states. https://www.cbtnews.com/prime-automotive-ceo-todd-skelton-on-how-business-has-changed-in-the-last-6-months/

DriveSure surveyed nearly 2,000 vehicle owners to find out what it takes to retain their service business at car dealerships and Bill Springer, President of DriveSure is here to discuss those findings. The majority of the car owners that were surveyed in the 2020 Dealership Service Retention Report have their vehicles serviced at new car dealerships. The purpose of this study was to find out why customers return to the dealership for service, what key indicators motivate customer retention, and what causes customers to defect to after-market competition. Price is important, as it always is in vehicle service, but it’s not as important as the quality of the work that is done, or the quality of the entire service experience. DriveSure also found that there is still a lot of opportunity when it comes to tire sales and maintenance. While dealerships may not make a lot of money off of tire maintenance, Bill believes that offering that service is crucial in the wider scope of customer experience and retention. In fact, 90% of customers that buy tires outside of the dealership, never again return for other maintenance. “Customers are pretty unforgiving if they have a bad experience,” says Bill. “it doesn’t take much for them to defect.” The quality of the experience and interaction with service personnel is critically important to ensure the retention of that customer. Amenities can make all of the difference as well. Consumers value online appointment scheduling tools, vehicle pick-up and delivery, and roadside assistance. https://www.cbtnews.com/bill-springer-on-what-consumers-value-most-in-the-service-department/

On today’s show, we welcome back Your Car Guy, Shawn Hays, General Manager at Carter Myers Colonial Chevrolet in Richmond, Virginia. This is Shawn’s first time in the role of general manager and he has been with CMA for eight months. He says coming aboard during the UAW strike last fall, and now dealing with the Coronavirus pandemic has been a test of resourcefulness. However, he recommends that any other first-time managers should keep these three things in mind: People: Make sure you have the right people in the right dealership role. Sit down with each employee and find out what their goals are. Find out what they would change if they had the opportunity. Process: Broken processes will not allow the dealership to perform as well as it potentially could. Tweak the processes that need help and implement new ones to fill in the gaps. Profits: Dealers can’t make a profit without the people and processes. CMA Chevrolet has seen its highest profits in over three years with Shawn at the helm. Shawn and Jim also discuss CMA Chevrolet’s sales volume during COVID-19, the digital retailing options they have in place, and the five pieces of advice Shawn has for aspiring dealership managers. In addition to his role as GM, Shawn Hays is the Co-founder of The Sales Hustlers and authored a book on personal branding called “Build Your Brand.” Shawn has also built a social following of tens of thousands and has more than half a million views on his daily sales strategies and morning motivation videos. https://www.cbtnews.com/3-items-a-first-time-general-manager-needs-to-focus-on-shawn-hays/

In almost every state across the U.S., dealership service departments were considered essential services and allowed to remain open throughout the COVDID-19 pandemic. With the majority of showrooms closed at some point between the months of March and June, service departments largely became the breadwinners for the dealership. This meant that fixed-ops managers and service advisors had to step up and perform at the highest level. To discuss this topic further, anchor Jim Fitzpatrick spoke via zoom with John Fairchild, retail automotive trainer, and President of Fairchild Automotive Solutions. In John’s recent article, The Power of 4DX in the Service Department!, he drew inspiration from The 4 Disciplines of Execution by Chris McChesney, Sean Covey, and Jim Huling. John took its base methodology and applied it to service department goals and objectives. The first discipline that John discusses is creating a cadence of accountability, and it involves measuring performance with lead metrics that tell the fixed-ops manager if they are likely to achieve their departments’ goals. These metrics include offering maintenance at write-up, time to inspect, and post-inspection ASR presentations. Other disciplines that John touches on are, creating and maintaining lucrative client relationships and keeping a compelling scoreboard. Since the age of 15, John Fairchild has held just about every position in the dealership. He has over 39 years of fixed operations management and consulting experience, and is a regular contributor to CBT News, Dealership News, and Driving Sales. https://www.cbtnews.com/4-disciplines-that-create-a-standard-of-accountability-in-the-service-drive/

Black representation in the automotive dealer body has been severely lacking for decades. In fact, there are only 265 African-American owned dealerships out a total of 18,200 in the country. Desmond Roberts, NADA vice-chairman of region III and president of Advantage Chevrolet joins Damon Lester, president of the National Association of Minority Automobile Dealers on the CBT show to discuss the importance of diversity in the automotive industry. In this segment, Desmond talks about his impact as the only black member of NADA’s 63 board of directors. The pair also discuss the lack of diversity in the auto industry, the biggest challenges minorities face when trying to become a franchise dealer, and what the industry can do to encourage more minority dealers, salespeople, technicians, and OEM executives. Minorities face obstacles in the automotive industry that their white counterparts do not, and both Desmond and Damon continue to try and level the dealer playing field. Desmond Roberts has been in the automotive industry for over 30 years after getting his start through General Motors’ dealer training program. In addition to his role at NADA and running his Illinois-based dealerships, Desmond is also the former chairman of the National Association of Minority Automobile Dealers. Damon Lester has served as the president of the National Association of Minority Automobile Dealers since 2007 and has provided key testimony to Congress on numerous occasions on behalf of dealers nationwide. He also serves on the Board of Directors for Americans Well-informed on Automobile Retailing Economics. https://www.cbtnews.com/nada-namad-officials-open-up-about-the-lack-of-diversity-in-automotive/

Welcome to the Weekly Automotive Market Minute with Bridget Fitzpatrick: market updateThis week, new car sales came out to a retail SAAR of 11.03, down 10.6% from 13.48 in 2019. market updateThe inventory of new vehicles sold was 202,089 a 10.9% drop from this time last year when the inventory sold was 226,749. Used-car sales continue to stay ahead of 2019 numbers. Inventory sold was up to 192,537, a 5.7% increase from last year’s number of 182,080. market updateInventory stock levels among all new vehicles were down 21.4% from 2019. Inventory stock levels for used-car were up 3.3%. The Dow Jones was up 0.65% at opening bell this morning, and the S&P 500 is up 0.99%. Average interest rates remain low at 3.08%, and the average cost of gas is $2.17 per gallon.

With 30 million people unemployed in the United States and thousands of auto industry workers furloughed, hiring strategies look different in today’s business landscape. As many adapt to the ‘new normal’ in a post-COVID world, dealers need to evaluate what their hiring needs and goals look like. Here to provide us with insight into the best recruiting practices for dealers is Steve Munyan, President at Hire the Winners. Change gives people the opportunity to step back and re-evaluate their situation. After suddenly losing his wife and his daughter, Steve re-evaluated what was important to him, and it was relationships. For dealers, the influx of financial and operational changes mean that they, in turn, need to re-evaluate their recruiting needs. Steve says that dealers must always be looking for great talent, and there are many potential recruits that work outside of the industry. Dealers also have to move quickly when recruiting, because top performers don’t stay available for very long. Hiring managers need effective compensation plans to incentivize these high performing individuals. While inexperienced recruits are less expensive, they must be trained effectively. Make consistent leadership training a priority at your dealership. Those crucial training efforts will reduce turnover rates, resulting in a fully-formed, productive team. Steve Munyan has over 40 years of experience in the automotive industry running dealerships and consulting automotive professionals. His recruiting firm, Hire the Winners, was founded in 2004 and has since helped all areas of the dealerships cultivate the right team. https://www.cbtnews.com/is-it-time-to-re-evaluate-your-dealerships-recruiting-strategy-steve-munyan/

Strategic partnerships can create great opportunities for success. For Jay Feldman, CEO of Feldman Automotive, a partnership with actor and auto enthusiast Mark Wahlberg has opened new doors for his business. Jay joined CBT to talk about the recent dealership he acquired alongside Wahlberg and how he has navigated the impact of the COVID-19 pandemic. Jay has been working in dealerships since he was 15 years old. He learned the trade mostly from his father who was also a Chevy dealer. In 1996, he built his first store which is now one of the largest Chevy stores in the entire country. His group continues to expand despite the COVID-19 pandemic. In fact, at the beginning of August, it was announced that Jay, along with business partner Mark Wahlberg, acquired Jack Maxton Chevrolet in Columbus, Ohio, and will name it Mark Wahlberg Chevrolet of Worthington. Jay met his enigmatic business partner 5 years ago through a mutual friend and decided to go into business together. Now, the pair jointly own 4 dealerships together including an airstream and RV store. While RV sales have been up during the pandemic, Jay says they now face inventory issues like many dealers nationwide. However, they are staying the course and investing in digital retailing options while maintaining the health and safety of their employees and customers. Feldman Automotive currently has 13 dealerships, 4 of which are co-owned with business partner and famous actor, Mark Walhberg. The group offers several brands including Chevrolet, Hyundai, and Kia throughout the states of Michigan and Ohio. https://www.cbtnews.com/midwest-dealer-jay-feldman-discusses-acquiring-4th-dealership-with-actor-mark-wahlberg/

In light of the COVID-19 pandemic, there are more digital opportunities for dealers and customers than ever before. Car buyers want to get as much of the shopping experience and transaction process done at home before they head to the dealership. In order to capitalize on these digital opportunities, Sean Gardner, instructor and trainer for the Joe Verde Group, says salespeople need to have the right skills and processes to sell the customer a car however they want to buy it. While Sean concedes that digital leads are hot right now, he believes that if dealers go to the trouble of putting those processes and systems in place, then they should also focus on the unsold customers as well. When it comes to training the salespeople on how to tackle these leads, dealers need to focus on how to properly and professionally handle price. Having the right attitude is crucial right now as well. Energy, excitement, and enthusiasm sell cars at the end of the day. “Can you deliver a car and never see the customer? Of course you can! But this isn’t about how you can sell a car,” says Sean. “This is about how to sell more cars, with higher grosses, with better CSI, than you’re selling now. And you’ll always sell more cars if we focus on building rapport.” https://www.cbtnews.com/sean-gardner-on-converting-both-digital-leads-and-unsold-customers/

With all of the digital tools at customers’ disposal, dealers are seeing an influx of leads as more consumers pursue online transactions. However, not all of those leads are high quality. Here today to discuss how dealers can best identify the quality leads that come in is Kevin LeSage, director of digital marketing of Autotrader. According to Kevin, right now dealers are seeing fewer ‘tire-kickers.’ Close ratios are increasing and overall, the shopper is more serious about buying a vehicle. If a consumer is willing to venture to a dealership, then chances are there is strong intent to buy. At Autotrader, consumer demand for digital retailing products is hitting record highs. However, the leads created from the digital retailing products are not created equal. In order to define lead quality for dealers, Cox Automotive, Autotrader, and VinSolutions measured almost 4 million leads from across 7,000 dealerships. What they were looking for was the level of engagement from each lead. Instead of measuring success by a large quantity of low-engagement leads, Kevin recommends focusing on the cost-per-lead that showed at the dealership or the cost-per-lead that closed. These metrics are better indicators of a good consumer experience rather than the lead volume. https://www.cbtnews.com/is-your-dealership-generating-enough-high-quality-leads-kevin-lesage/