HADA TODAY Sponsored by: Effectv

CHAIRMAN'S LETTER

Process Optimization – I Repeat – Check your processes!

- Chris Gillman, HADA Chairman, Team Gillman

Hello Houston Auto Dealers!

As we drive into the second quarter, it's time to take a closer look under the hood of our business processes. It has been 'Groundhog Day' at our dealerships, where we've been encouraging our managers to scrutinize every aspect of our operations. Daily, we ask them if we have created a process just to compensate for someone else not doing their job or to benefit the customer. It's time to review our business practices and ensure they genuinely benefit our employees and customers.

We car folks often design processes for our own convenience rather than our customers'. However, the tide is turning, and our customers must come first. Remember how taxi companies faltered because Uber prioritized the customer experience? It's time to get uncomfortable with our processes and assess them from the customer's perspective. This shift towards customer-centric processes is crucial for our success. Each day offers a new opportunity to enhance the car-buying experience. If you were in the customer's shoes, how would you want the experience? Efficiency needs to be at the forefront of this experience.

To facilitate this, we must remember that investing in our employees is crucial. As I always say, 'Well-trained employees are not only more productive, they're also happier and more likely to stay. Don't risk losing them by skimping on training.' A good way to evaluate this is to check your turnover rates—if they're high, it's a signal that your training process needs improvement. Education at all levels in every department is vital. We need to invest in those employees who see the value in educational opportunities and continuous development.

Before I wrap up, I'd like to share a few reminders. We're thrilled to announce that our scholarship recipients have been notified, and we're incredibly proud of our 73 winners. Applications open again in November, so mark your calendars to inspire your employees to apply for this financial opportunity.

Last, if workforce development is something you need in the service department, consider participating in the student technician competition on November 15th at San Jacinto College in Pasadena. We're looking for 15 dealerships to train teams of three students. It's a fantastic opportunity to give back and help shape the future of our industry. Remember, your participation in these events and opportunities is crucial for our collective growth. You can contact RoShelle Salinas for more information.

And on a lighter note, if anyone's in the market for a shiny new Chevy, you know who to call! (Just kidding... or am I?)

Sincerely,

Chris Gillman

Chairman, Houston Auto Dealers Association

For the rest of 2024 - keep your eye on pick-up sales.

InfoNation's April 2024 Houston Auto Market News published the 2023 Top 25 Model List, which has revealed some intriguing trends in the automotive market. Compact SUVs and Electric Vehicles (EVs) have dominated this year's rankings, while passenger cars have made an unexpected resurgence.

Here's a breakdown of the top models:

• Pickups: 7 (down from 9 in 2022)
• SUVs: 12 (same as 2022)
• Cars: 6 (up from 4 in 2022)

Notably, Tesla's influence has brought two all-electric models into the Top 25 for the first time. Despite the enduring popularity of the Ford F-150 and Chevrolet Silverado, overall sales for pickups have seen a decline both regionally and nationally. The Ram 1500, in particular, has dropped significantly, replaced by the Toyota RAV4 and several smaller SUVs that have climbed higher on the list.

Looking ahead to the rest of 2024, expect a continued struggle for pickup sales due to higher MSRP prices and interest rates. Tesla models may lose favor, while smaller SUVs offering better value are poised to dominate the market both regionally and nationally. Keep an eye on these trends as they shape the future of the automotive landscape.

InfoNation provides this quarterly report to HADA members, however their capabilities surpass this report and can be customized to any information you need. Contact Ted or Dan to learn more about what InfoNation can provide you. Call 281-937-9187.

Review the full report here.