Dave Wilson’s Post

MotorPeople&more! ■ Michael Lucki, General Manager and Operating Partner of Riverhead Mazda! Mike Lucki has carved an impressive path in the automotive industry over his 27-year career. By Jaelyn Campbell CBT News ■ In November 2023, Lucki took on the challenge of transforming Riverhead Mazda from the ground up. “We purchased the franchise, parts, and new vehicles—but no building, staff, or used inventory,” he explained. Starting with a double-wide trailer and no heating, Lucki has led a remarkable year of growth. Under his leadership, the dealership has achieved a 400% increase in sales compared to the previous ownership, consistently delivering exceptional customer experiences. ■ Despite a rich family history in the automotive business, Lucki cites the past year at Riverhead Mazda as the highlight of his career. “This is the first time it’s truly been my operation to build,” he shared. The dealership has top Net Promoter Scores among Mazda service departments nationwide and receives glowing five-star customer reviews. ■ Looking ahead, Lucki envisions a bright future for Riverhead Mazda, with the construction of a state-of-the-art facility set to begin shortly. Over the next five years, he aims to further cement the dealership’s reputation for excellence while continuing to tackle challenges one step at a time. ■ Mike Lucki, General Manager and Operating Partner at Riverhead Mazda, has carved an impressive path in the automotive industry over his 27-year career. Starting as employee number one at the dealership, Lucki built his team from the ground up, achieving an extraordinary 350% year-over-year growth in new vehicle unit sales. His focus on creating “raving fans” has yielded over a 95% net promoter score and a perfect 5.0-star rating across sales, service, and parts on Google.  Lucki’s journey in automotive retail began early; he sold his first car at just 12 years old. Coming from a long line of dealers, he grew up working at his family’s dealerships, handling tasks from cleaning cars to dealer swaps. After earning a degree in Accounting and working as a CPA, he returned to automotive retail full-time in 2011. His deep industry roots and diversified experience across dealership roles have equipped him with the insight and resilience needed to lead a thriving business. One of Lucki’s proudest moments was the grand opening of Riverhead Mazda, where he brought together colleagues, former students, and community members, bridging the past and future of his dealership network. As he looks ahead, Mike plans to consolidate and expand his family’s four dealership franchises, emphasizing a people-centric culture that embodies core values. His time teaching at the NADA Academy, where he trained over 6,000 automotive leaders, underscores his commitment to industry excellence—a quality that continues to shape his vision for future growth. #Mazda #Automotive #Dealership https://lnkd.in/eqbr3vPE

USA, New England ■Carlsons Motor Sales is now part of DCD Automotive Holdings Nucar■ March 1, 2024, ARI_sk, Source: Concord Moitor ■Nucar is a part of DCD Automotive Holdings, founded in 2014 by Dan Dagesse, who started Berlin City Auto Group in Berlin, N.H. which was founded in 2014 by Dan Dagesse and his son, Christopher, who bought auto dealerships in Massachusetts even before the COVID shortages and price spikes threw the industry into turmoil. They prodded many independent dealers to sell out. Corporate Office is located in Norwood, MA, and dealerships are located in Delaware, Massachusetts, and New Hampshire; Now, they have 25 operations throughout New England plus one in Delaware, most under the Nucar name. That includes the former AutoServ group of dealerships in Tilton, which they bought in 2020.  Many of the Nucar operations are part of a branded franchise, but Concord’s will be a used-car “superstore,” Hanlon said. Nucar has long wanted to be in the Capital City. Carlson’s Motors, a family firm that in 1937 became one of the first car dealerships in Concord, has been bought by Nucar, a regional company with deep roots in New Hampshire, as part of a continuing trend of consolidation in the industry of auto sales and service. “Our role is to take the exceptional job the Carlsons did with their service business – they focused hard on mechanical service – and bring our sales footprint into it. They weren’t focused heavily on sales,” said Shawn Hanlon, president of the New Hampshire and Vermont operations for Nucar. “One of the biggest attractions was their loyal customer base. They have a very robust parts and service business, and people have been doing business there for a long time.” Source: Concord Moitor #automotive #retail #dealership

One thing that is for sure is that near every car dealership, and some even on the same frontage property, is an independent service facility. I challenge my dealers to review your appointment process and examine the customer's issues with getting service appointments at your store. Remember it isn’t the revenue you make but the revenue you don’t. CDK Global offers an all-in-one, end-to-end single solution for service departments, making transparency and ease of doing business the main focal point. Let’s talk. #fixedoperations #cardealers #carbusiness

USA, Florida Krause Auto Group bought three dealerships from Sutherlin Automotive Group! The deal involves the purchase of Sutherlin Nissan of Cape Coral, Sutherlin Nissan of Fort Myers and Fort Myers Genesis, all part of the Sutherlin Automotive Group. February 3, 2024 News-Press. LAURA LAYDEN Three dealerships in Lee County have changed hands in what has been described as a "landmark deal." The deal involves the purchase of Sutherlin Nissan of Cape Coral, Sutherlin Nissan of Fort Myers and Fort Myers Genesis, all part of the Sutherlin Automotive Group. Here's more to know about the announcement, made late Thursday afternoon: Who was the buyer? Krause Auto Group, founded in 1991 by Vernon Krause, who serves as its CEO. The company has a collection of family-owned dealerships in Florida, Georgia, North Carolina and South Carolina. It's headquartered in Alpharetta, Ga. What was the price tag? The transaction totaled more than $110 million. What changes are planned? The Sutherlin name has been dropped. In the near future, the Nissan dealership in Fort Myers will see a major renovation, including an expansion of the service department. Fort Myers Genesis, currently located on the same property off U.S. 41, will move to a new site – about one mile to the south. What drove the deal? In a news release, Krause said the purchase is about growing his enterprise and "returning to my roots." He grew up in the area and graduated from Bishop Verot High School in Fort Myers, before pursuing a degree from Stetson University in Deland, Fla. “Having the ability to contribute to the automotive industry in this particular thriving market is a full-circle moment for me," he said. What about management? Mike Spinazze will continue to serve as a general manager for the Nissan dealership in Fort Myers and serve in that role for the other acquired dealerships, becoming a 40% minority partner in both Nissan stores. “His continued involvement ensures a seamless transition and ongoing success,” Krause said. The dealerships are now known simply as Nissan of Cape Coral, Nissan of Fort Myers and Fort Myers Genesis (which hasn't changed). The trio of stores brings the Krause Auto Group's total number of dealerships to 23. Moving forward, the rebranding of each store will emphasize the new owner's "commitment to excellence, customer satisfaction and innovation." According to its website, Sutherlin Automotive still has four locations in three states: Florida, Alabama and Tennessee. Founded by George Sutherlin, a pioneer in the automotive industry, more than 50 years ago, the group is now operated by his son Brett. It has sold several other dealerships over the past year, including one in Athens, Georgia to Krause over the summer. #automotive #retail #m&a #mergers #acquistions #Sutherlin https://lnkd.in/eFKQmrmv

Family-owned dealerships have many strengths, but they must professionalize their operations to make the most of those advantages. My piece for Wards Auto. Thanks to Loyd "Champ" Rawls and Savannah Simms for their expert input. #dealerships #professionalization #retailauto #WardsAuto

■ NADA, association leaders respond to Scout’s direct sales strategy: A call to action for dealers! ■ “Buying a car is not like buying a tube of toothpaste on Amazon. You don’t trade in your toothpaste; you don’t finance your toothpaste. There are a lot of different aspects to this, and it’s... the franchise system is best positioned to take care of this, and that’s been proven time and time again.” — Mike Stanton. By Jaelyn Campbell, CBT News ■ In a critical discussion on Inside Automotive, Mike Stanton, CEO and President of NADA, and John Devlin, President of the Pennsylvania Automotive Association and the Automotive Trade Association Executives’ 2024 Chairman, address the implications of Volkswagen’s Scout Motors deciding to sell vehicles directly to consumers. This controversial move raises significant concerns for existing dealerships and the franchise model, prompting NADA and state associations to prepare for a robust response. ■ During the interview, Stanton emphasized that NADA is working closely with state and metro dealer associations to counter Volkswagen’s decision, which they view as a betrayal of the longstanding dealer-manufacturer relationship. He highlighted the importance of maintaining this partnership, stating, “There are over 600 VW dealers in this country… over 50,000 people in this country work for Audi, VW, and Porsche dealers.” This emphasizes the consequential economic impact these dealerships have on local communities and the automotive ecosystem as a whole. ■ Meanwhile, Devlin notes Volkswagen’s disappointing lack of communication, suggesting that their silence has led to this anticipated but disheartening decision. He pointed out that Volkswagen’s direct sales approach might hinder its existing U.S. dealer network, stating, “Trust is important in any relationship,” and indicated that the current environment threatens to shatter this trust.  ■ Both leaders expressed concerns that this move could damage the consumer experience, as many direct sellers have struggled with service levels. Nevertheless, these industry leaders also touched on the potential challenges Volkswagen might face in terms of regulatory compliance across various states. Devlin pointed out that “they can’t get licensed in most of the states, if not all the states around us,” stressing the complexity of navigating the franchise laws that protect dealerships. Source: https://lnkd.in/gbQyT8SV #ScoutMotors #Dealers #dealership #Cardealer #Nada

There are age-old debates about whether an “appraisal range”, or an “exact value” is a better strategy for car dealerships. Specifically when providing online or sight-unseen appraisals. But the reality is that it doesn’t matter what I think, or what David Long thinks, because we’re not the client. And we’re not buying anything from each other. The only thing that actually matters is what the client thinks. And THAT is what every car dealership should be obsessing about, rather than trying to reinforce confirmation biases. Do you think that Apple and Amazon begin designing their client journeys around what makes things more convenient for their associates? Or do they begin with the client experience, and work backwards? For dealers that want to source more inventory from consumers, and less vehicles from auctions, I HIGHLY recommend that you mystery shop selling a vehicle on your dealership’s website. If you would like our AI engine to perform a one time mystery-shop of your dealership’s online vehicle acquisition process (free of charge), please raise your hand in the comments below.👇 If you are interested in confirming if your dealership is missing trade-in opportunities, here is a simple math equation to determine how many opportunities you may be missing. Monthly unit sales volume X 2 = # of sales menu presentations Ex. (100 units X 2) = 200 sales menu presentations Next, take # of Sales menu presentations X 80% = target # of appraisals Ex. (200 sales menu presentations X 80%) = 160 appraisals Every franchise dealership should be conducting 1.6 appraisals per new vehicle retailed (100 new units x 1.6 = 160 appraisals). If the appraisal number is lower than a 1.6 ratio, either your clients, your Sales Staff, or your Sales Managers, have lost confidence in your appraisal process. In many cases, I see Sales Associates and Sales Managers recommending that their clients visit CarMax first, due to lack of confidence in their appraisal values. Or they visit Carvana's website first. Carvana currently has over 29k units in inventory, and 1/2 of those vehicles are between $15k & $25k, and only 7% of their inventory is over 60 days old. Do you think that they are sourcing those vehicles at auctions, or from consumers? This is one of the reasons that the average franchise dealer only has a trade-in attached to 43% of their New Vehicle transactions. If you would like our help to identify opportunities in your dealership’s online acquisition process, just type “I’m in” & your dealership's URL in the comments below…👇 Thank you David Spisak & Skye Haulman for the additional perspective on this topic...

New car distribution is control by franchise dealerships, here's why EVs are not their favorite car the sell.

The Ultimate Guide to Successfully Owning a Car Dealership Have you ever dreamed of owning a car dealership? This comprehensive guide will walk you through the key aspects of the car dealership business, providing you with essential information to successfully own and operate your own dealership. Understanding the Car Dealership Business Before diving into ownership, it's crucial to grasp the fundamentals of the industry. The car dealership business involves buying and selling vehicles, offering financing options, and providing after-sales services. As an owner, you'll need to stay updated on various vehicle brands, models, and the latest automotive trends. Customer service is paramount in this industry. Exceptional experiences not only build brand loyalty but also generate positive word-of-mouth referrals. Investing in well-trained, knowledgeable sales staff is essential for customer satisfaction. Preparing for Ownership Owning a car dealership requires a diverse skill set. Key abilities include: 1. Business acumen 2. Sales expertise 3. Leadership skills You'll also need to familiarize yourself with legal and regulatory requirements in your area. Financial considerations are crucial. Assess your capital requirements, explore financing options, and develop realistic financial projections. This ensures you have the necessary resources to start and sustain your dealership. Acquiring a Dealership When choosing a dealership, consider factors such as: - Location and market demand - Reputation and customer reviews - Financial performance and profitability The acquisition process involves thorough research, negotiations, due diligence, and finally, closing the deal. It's advisable to seek legal and financial advice throughout this process. Running a Successful Dealership Effective management is key to your dealership's success. Implement strategies such as: - Delegating tasks to qualified employees - Investing in ongoing training and development - Regularly evaluating employee performance Marketing plays a crucial role in attracting customers. Utilize digital marketing, local advertising, and implement a robust customer relationship management system to drive sales and revenue. Overcoming Challenges The car dealership business comes with its share of challenges. To stand out from the competition: - Provide exceptional customer service - Develop a unique selling proposition - Continuously improve and innovate Stay ahead of industry changes by conducting market research, investing in technology, and embracing sustainability trends. Owning a car dealership can be a rewarding and profitable venture. By understanding the industry, preparing yourself professionally and financially, and implementing effective management and marketing strategies, you can navigate the challenges and position yourself for long-term success in this dynamic business.