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Grady looking for best dealers to sell legendary brand
<p><strong>Grady looking for best dealers to sell legendary brand.</strong></p>

Maserati’s Grand Plans Go Into High Gear

The Italian automaker expands its dealership network as part of an effort to spur sales.

NEW YORK – Maserati enjoys a legendary reputation as a maker of fast and luxurious Italian cars.

But the luxury brand has ambitious plans to convert more of its admirers into buyers.

Worldwide sales hit 15,000 units last year, about half of them in the U.S., the largest market for the unit of Fiat Chrysler Automobiles.

By ultimately expanding the lineup from four to six and ambitiously increasing its dealer count, Maserati hopes to sell 75,000 units a year globally by 2018.

The automaker this year introduced the Ghibli, its first foray into the midsize sports sedan segment. The Ghibli goes up against the BMW 5-Series, Mercedes Benz E-Class and Audi A6.

On the horizon is a Maserati Levante CUV in another segment new to a brand that heretofore has centered on selling fullsize sedans with beefed-up engines.

Peter Grady, a 30-year veteran of Chrysler who has headed its dealer network development, last year became president and CEO of Maserati North America. He talks with WardsAuto about big plans for an auto company started by five brothers 100 years ago in Bologna.

WardsAuto: Maserati wants to grow. How?

Grady: We have some deep aspirations on attacking the market. The Ghibli sports sedan gets us into a large segment we’ve never been in before.

The segment is not just concentrated in the Northeast or Florida or California. It has decent opportunity throughout the country. So we know we need to increase our dealer network.

We started the year with 78 North American dealers. We hope to get up to 130 by the end of the year, 125 in the U.S. We’re well on our way towards that. We’ll probably be close to 100 at the end of June.

WardsAuto: You had a first-ever Super Bowl ad this year. What was the reaction to that?

Grady: It put us on the map. Afterwards, dealers called saying “Hey, I don’t know much about Maserati, but can I talk to you about it?”

WardsAuto: Was it the fact you had an ad or the ad itself that drew reactions like that?

Grady: It was that we had an ad, which shows we’re investing and serious about being in this market. We’re not playing around the edges any more. We’re going to be as mainstream as a luxury brand can get.

The other thing was the ad itself was completely different than anything Maserati had done before. The tagline, “The Absolute Opposite of Ordinary,” really resonated.

Super Bowl Ad Does Double Duty

WardsAuto: Was it serendipity that the ad drew dealers, because usually a Super Bowl ad is aimed at consumers, right?

Grady: It did a double duty for us.

WardsAuto: Was that the intent?

Grady: No. The intention was to put us on the map with the American public. But dealers are part of the American public.

WardsAuto: So you weren’t thinking of dealers when creating that ad?

Grady: The intent was to sell cars, not to attract dealers or investors. Since then, we’ve done a number of things to bring some pretty stout dealer groups our way, people who are very keen on investing.

WardsAuto: Is that investment coming from the new dealers, existing dealers or both?

Grady: Both, but primarily new dealers putting up new showrooms. Existing dealers are renovating their showrooms and setting up better processes than they had before.

We’re looking for best dealers in each of our markets. We’re starting with the customer satisfaction because that’s incredibly important for our brand.

We’re a luxury brand that is high-touch for the consumer. They have a visceral connection to a Maserati vehicle. We want to make sure that continues, and the dealership is the place where the relationship exists. So we’re finding the best guys who’ve demonstrated the ability to take care of the customers.     

WardsAuto: Is the selling of a super-luxury car like Maserati different than selling a mainstream car, or is the difference in how you treat the customer?

Grady: First of all, we’re not super-luxury, we’re luxury. One of the things we heard after the Super Bowl ad is, “You have a Ghibli starting at $66,900? I thought Maseratis were all $300,000 cars.” We don’t have a $300,000 car in our lineup.

WardsAuto: Possibly you could, if somebody really went to town configuring it.

Grady: We have this amazingly favorable brand impression. We need to do a better job in getting the awareness up on products we offer.

But as far as the sales process, the core of what a dealer does almost doesn’t matter whether you are selling a low-end or luxury. The difference is that as you progress up, it becomes less about the transaction and more about the relationship. That’s where the dealer expertise in nurturing relationships becomes critical for us.

WardsAuto: A study on sales effectiveness indicates some luxury salespeople do great in presenting the car, but not in asking for the sale. They worry that would come across as pushy. Does a luxury-car salesman need to ask for the sale?

Grady: Absolutely, because the customer is looking for a reason to engage in the relationship. I can’t think of a better way to show customers I really value their business than to ask for it.

We could have a nice cup of coffee and go our separate ways. But it’s flattering to tell a consumer: “I really want to enter into a relationship with you and would love it if you buy my car.”    

WardsAuto: But you don’t say, “What does it take to get you in this car today?”

Grady: That’s old-school stuff. That doesn’t work anywhere.

The Ideal Maserati Dealer

WardsAuto: Many Maserati stores are dualed with sister-brand Ferarri. What are the characteristics of the ideal Maserati dealer?

Grady: Someone who has a solid presence in the marketplace, a demonstrated level of performance of customer care and who knows how to market our brand and grow it with us. And someone with passion. We’re not just looking for retailers.

We’re not happy where we are, honestly. We think we have a higher ceiling on sales volumes. We’re pleased with how things have progressed but there’s more opportunity out there, more market share to grab. We want to seed ourselves in the American consciousness so people understand what our vehicles are and what they truly represent.

WardsAuto: What do they truly represent?

Grady: We’re a visceral brand that people love when they get into our cars. You should read the owner threads on the Maserati blogs. These people just love to fire up and drive their cars, whether it’s the Ghibli or the flagship Quattroporte GTS (with a 523-hp twin-turbo V-8 engine). Our owners are aspirational and performance-oriented and want to be connected to their cars.

WardsAuto: Demographically, who are your customers beyond people who want to own fast cars?

Grady: More than enthusiasts. The income level obviously is high.

WardsAuto: So you’re not doing a lot of subprime loans?

Grady: No, no, no, we’re not. But we’re launching Maserati Capital on June 1 so we’ll have our own private-label finance company.

WardsAuto: What do you think that will do for you?

Grady: That gets us more access to the capital. There are a lot of people, especially in the Ghibli segment, where financing and leasing are incredibly important. Right now, we’re leasing less than 20% for the Ghibli.

WardsAuto: That’s low for a luxury brand. Do you want that higher?

Grady: Yeah. Dealers do and we do to, because it gives you access to the market. But it’s not leasing in the traditional sense of the lowest possible payment. Leasing also provides stock for our certified pre-owned program, which we want to grow. It helps build the brand. We’re trying to grow this from a niche to a full-line brand. There are a lot of things we’re missing at the moment that we’re trying to fill in.

WardsAuto: Where in the U.S. is Maserati the strongest?

Grady: Right now New York, South Florida and Southern California.

WardsAuto: Where do you see growth opportunities and new dealer points?

Grady: Texas, Chicago, Dallas and Houston, Washington, D.C. We’re underserved in the energy-industry part of the country. We’re going to be opening a store in Oklahoma City.  

WardsAuto: In running an Italian brand, does it hurt that you have an Irish name?

Grady: We’ll find out. It’s not like we’re trying to rehabilitate the brand. We have a fantastic brand with a fantastic reputation. We’ve just got to tell the world about it a little better.     

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