Special Coverage
NADA Convention & Exposition
Advice to Domestic Auto Makers: ‘Study Toyota’
How was 2006 for Boch Automotive?
Excellent for the imports. Domestics were very difficult. Their sales are down. Ford’s product is horrible. GM is still so arrogant that they can’t get out of their own way, and Chrysler is still searching.
What would you like to tell your manufacturers?
If I could tell them anything, I would say: “Study Toyota.” As simple as that.
How do you feel about 2007?
I think the imports are going to be great. Toyota and Honda will be up 6%-7%. The domestics will continue to lose market share to the imports.
Right now the domestics are producing a pretty good quality car. I think it’s the message they’re giving the American public. The public is not buying it.
Name a home run for your group in 2006.
Capturing the title of No.1 Honda dealer on the planet. In 2005, we were second to Norm Reeves Honda Superstore, which has been No.1 for 12 years, and last January we made an effort to beat him.
What makes a good leader?
A good leader surrounds himself with good people. I want the best and the brightest working with me. If I am the sharpest guy, we’ve got a problem.
What was the last book you’ve read?
“The Tipping Point: How Little Things Can Make a Big Difference” by Malcolm Gladwell.
What magazines do you enjoy reading?
Rolling Stone, R&B, Automotive News, Ad Age, Pollstar and Architectural Digest.
All Things Considered, It Was Still a Pretty Good Year
How long have you been in the business?
I’m second generation. I’ve been in business probably 40 years.
What’s your secret to good leadership?
Being in business for as long as this company has – we’re going into our 49th year in business – I think we have a good (rapport) in the community. I am very active in our community with different organizations and boards I serve on. I believe in giving back to the community.
Was 2006 a strong year for your dealership?
All things considered, it was still a pretty good year. We’re in a pretty good area to live and raise a family. We have quite a few GM employees that buy vehicles year after year.
Did you try anything new last year that turned out to be a success?
We picked up the GMC truck franchise just over a year ago, and that certainly made a difference in our business.
How does 2007 look?
I would say it would probably be a repeat. Pretty much the same thing.
Which magazines do you like to read?
Just some of the trade magazines, yours being one of them. Anything to do with automobile business certainly.
What would you like to tell the manufacturers?
In our particular base, GM sets the pace and the selling rate, if you will. They control our market. We’re in a lease market. About 60% to 70% of our business is leasing and we’ve kind of gotten away from it. We certainly felt the lack of sales in that department.
Telling the Manufacturer a Thing or Two About Vehicle Styling
Have you been in business long?
I’ve been a dealer for 25 years. I’ve owned this store about four years.
Many dealers are reporting lower sales for 2006. How did you do?
It was just an average year. Actually, we sold a few more new than we did in 2005.
What do you expect for 2007?
We may be just a little bit better in new sales in 2007, at least for us in Lincoln Mercury, because we have some new products. We have the new SUV, the MKX and the Mariner SUV.
What does good leadership mean to you?
It’s your people skills; your ability to get along with your employees. They have to like you. They have to feel comfortable with you and feel like you’ve got their back even though you’ve got to make some tough decisions. People understand business. That’s what leadership is all about. For example, people know how (Ford Motor Co. President & CEO) Alan Mulally stands.
Any home runs in 2006?
Absolutely. We started targeting our advertising and business. We only advertise where you could account for it. If it didn’t count for a sale, we didn’t advertise there. And even though the floor-plan interest rate was higher, we controlled our inventory. Our general manager came up with a system, and we actually did cut out inventory cost, which was a huge bonus. We’ve got away from carrying 175 cars when you’re going to sell 40.
Have you read any good books lately?
I read a book about a very prominent attorney, living good, and he ran into this deal where he had to take a case for a very poor girl. It’s about his rise and fall.
What about magazines?
I read all the car stuff. And I’m a history freak. History shows whether somebody’s decision was good in the long term.
If you could tell your manufacturers anything, what would it be?
Build products that look good. When I bought my house, I drove by and I thought, Gee, I’ve got to see that. You can’t build cars with the idea that all we have is performance and the interior looks good. People stop to see something that looks good. When it looks dynamic and fresh, then they’ll look at the technology part of it. That’s what I’d tell them.
