This week's guest: Rob Cavender, COO at the Cavender Auto Group
As we move into 2023, and we see a dramatically different economy shaping in front of our eyes, what are the one or two priorities you have your focus on to drive optimal production and net bottomline results for your organization?
One big priority for us at Cavender Auto Group is refining our processes and settling back into fostering experts at our stores. The last few years have been very simple for dealers and many automotive professionals have gotten stagnant. A combination of the increase in inventories, increase in interest rates, and a dramatically different economy will shock many people who stick to the “COVID gameplan”. It is imperative that we take the convenience aspects that COVID taught us (ie: digital retailing, pick up and delivery, etc.) and bring them back into a process where selling isn’t as easy a handing someone the keys.
What's one reason you see EVs as the dominant powertrain of the future for the industry and why?
- The obvious reason that EV is the dominant powertrain moving forward is that all the OEMs are heavily investing in EV as the future. The products are much more available to the general public as well. You can now get an affordable EV vehicle rather than it being a luxury item and charging ranges/stations are much more convenient.
- The second reason is that EV models are actually more convenient for 80%+ of drivers. People tend to only think about the 400 mile road trips and the inconvenience of charging on the road, but most people drive less than 50 miles a day. There is a massive advantage to plugging your vehicle in at your home every night and having a “full tank” every morning!
What's one flaw you can see with respect to the seemingly industry-wide plan to adopt product lineups predominantly EVs moving forward why?
- I think there will be an issue for the OEMs who adopt predominately EV line ups too quickly. It will take time for the market to buy-in on the biggest change in automotive since the internal combustion engine. They could be strategic by launching EV heavier in markets where the city infrastructure is more conducive to charging as well.
- I think there is certainly also a concern for your commercial users. Although charging capacity has gotten much better, there are still scenarios where the current technology would be inconvenient for people driving for a living.
The pandemic lockdowns had a vast array of responses that varied from state to state early on and throughout the first part of this year. When you look back on the last 2-plus years, what is one lesson learned that you would want to go back and tell your pre-pandemic self that you believe made you or your organization better for the long-term and why?
One lesson I learned during the pandemic is that customers are willing to pay for a great experience. It is very apparent now that there is no need to “race to the bottom” but provide a unique experience for the consumer that is enjoyable. If you can create an experience that is seamless from online research to the delivery of the vehicle, you will set yourself apart much quicker than a discount. Moving forward, we will continue to focus on convenience and transparency to further differentiate ourselves.
