Chairman's Blog: Invested in America
Dealer Fly-In a Rousing Success
Chairman John Connelly is back with his third blog post. Wow — what an event! AIADA and their partners knocked it out of the ballpark at this year’s fly-in. Between the presentations by Erin Kerrigan and Jim VandeHei (both fascinating and incredibly compelling), the fly-in crowd was able to enjoy very personal and enjoyable talks from both former House Speaker John Boehner and West Virginia Senator Joe Manchin. To all the dealers, partners, manufacturer representatives, and state associations that joined together to bring the fight to Capitol Hill on behalf of all 9500+ international car dealerships — I can’t thank you enough. Thanks to your efforts last week, you are helping protect hundreds of thousands of jobs and billions of dollars of investments. At the first night of the AIADA fly-in, former Speaker John Boehner said it very well — car dealers simply need to “show up” to have continued success with their legislators. That means standing up for our businesses by meeting with our legislators both on Capitol Hill and in our home districts. Click here to read the rest of Chairman Connelly’s blog.
Interview with Hitchcock Automotive
Hitchcock Automotive sold its remaining three Toyota dealerships in February 2022 after the passing of its legendary founder, Frederick “Fritz” Hitchcock. Toyota of Santa Barbara and Northridge sold to Van Tuyl Companies and Puente Hills Toyota sold to Kaminsky Automotive. Kerrigan Advisors represented Hitchcock Automotive in the sale and had the opportunity to interview Ted Hitchcock, son of founder Fritz Hitchcock, and Howard Hakes, President of Hitchcock Automotive, after the sale and shared the interview with Automotive News. Why did you decide to sell Hitchcock Automotive? Howard Hakes: At the beginning of 2021, we had no intention of selling Hitchcock Automotive. Fritz, Ted, and I were enjoying the business and believed the next few years would be incredible for auto retail. But tragically Fritz passed away unexpectedly last August and that changed everything.Ted Hitchcock: This was a very difficult decision for me and my family. The passing of my father, a legend in the car business and the founder and patriarch of Hitchcock Automotive, was devastating. I was born and raised in the car business, working alongside my dad. Click here for the rest of the interview.
How to Stay Competitive with Online VSC Companies
Since the pandemic hit, dealers are finding that the landscape of online aftermarket providers has increased, and they are targeting consumers that want to order everything online, including their Vehicle Service Contract. With that increase in online-only options, a set of players in the VSC space are popping up at a rapid rate. Companies are taking their VC cash infusion and creating slick websites to compete with dealerships that sell VSCs. How do you, as the dealership expert, compete with the new online retailers? Can you compete? You absolutely can, but you have to be a bit more creative to win out with your customer. CBT News reports a consultative approach at the dealership is where your F&I department shines—being able to talk with someone who is an expert in those products and understands why they are essential. Having a staff that is skilled, professional, and able to handle any question with ease is always going to be better than ‘ordering’ a warranty online or talking to a chatbot to buy it. Click here for the full story.
Survey: EV Price, Range Anxiety, Infrastructure Keep Car Shoppers Away
A momentous shift in the auto industry away from fossil fuels and into electric, zero-emission vehicles is well underway. Although ownership of EVs is still minuscule in the U.S., automakers are very busy trying to figure out how, exactly, to get more people to purchase an electric vehicle. Swooping in with an assist for this mission are consumer surveys that try to understand people's reasons for buying an EV, and their reasons for waiting to make the switch. Car and Driver reports Autolist published the latest such report this week, and it reveals both pitfalls and promise for purveyors of electric vehicles. The good news? Range anxiety, once the bugbear of mainstream thought about EVs, is no longer the top concern for shoppers. The bad news? Range anxiety is now second, cited by 44 percent of the 1350 car shoppers Autolist surveyed in April and May, following the high price of EVs (48 percent) and questions about infrastructure (36 percent; each respondent was asked to list their top three concerns). Click here to learn more about the survey and its results.
Wyoming Dealership Group Offers Employees Housing at Below-Market Rates
For more than 20 years, Teton Motors, nestled in the scenic mountain city of Jackson, Wyo., has offered an unusual employee benefit that has become increasingly critical to retain and attract talent: housing. The dealership group, which operates Chevrolet and Subaru stores, first began offering on-site housing to employees in 1998 reports Automotive News. Today, Teton Motors owns 12 housing units that it rents to workers at below-market rates in the pricey tourist town — a perk that has attracted new employees and helped the dealerships keep existing staffers. "It definitely has helped with retention, because everybody knows what the market is like and they do appreciate what we offer them," said Dave Auge, Teton Motors president. "It's a win-win." Back in 1998, the group was leasing a plot of land in Jackson as a used-vehicle lot to complement its Chevrolet store, Auge recalled. When the land's owner died, Teton Motors bought the parcel and made plans to build an office for the used-vehicle operation. Even then, housing resources were at a premium, so the local government required those investing in commercial construction to include housing in their plans or pay a fee, Auge said. Click here for the full story.
Federated Insurance’s Claim of the Month — Could it happen to you?
They completed a dealership demonstrator form and gave a copy of their driver’s license, and were allowed to test drive the vehicle without a dealership salesperson riding along. This led to the customer driving the vehicle off of the lot and disabling the GPS. Local law enforcement was notified, and the vehicle was considered stolen.A customer came to a dealership and requested to test drive a used vehicle. The following week, the vehicle was recovered with enough damage for it to be considered a total loss. The identification provided by the purported customer was fake, and no recovery is anticipated. CLAIM AMOUNT: $35,000.00
Losses like this may be prevented by utilizing dealership theft prevention techniques, such as:
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Accompanying customers on test drives.
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Checking and verifying multiple forms of identification.
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Confirming customer’s insurance coverage
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Avoiding letting customers hold smart key fobs.
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Keeping keys stored in a secure place
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Investing in security cameras
Visit federatedinsurance.com or contact your local marketing representative for resources you can use to create or enhance your own risk management program.
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