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CHAIRMAN'S LETTER

No Longer a Take-it or Leave-it Auto Sale

- Chris Gillman, HADA Chairman, Team Gillman

Dear Members of the Houston Auto Dealers Association,

Reflecting on the conclusion of 2023, it is incredible that we marked our region's 4th best year in new vehicle sales, with an impressive total of 356,437 vehicles sold. This accomplishment underscores the resilience of our automotive community, even in the face of unprecedented challenges.

The 41st Houston Auto Show concluded in January and was our third year partnering with the Houston Boat Show, which has proven successful. We pushed through Auto Show challenges and still welcomed more than 53,000 attendees to the event. The Houston Auto Dealers Association continues to significantly contribute to our community, thanks to the revenues from the Houston “AutoBoative” Show. Our commitment to initiatives like the scholarship program, which awards over 100 students funding for their education, the Motorist Assistance Program, and our unwavering advocacy for dealers highlight our mission to serve the automotive industry and greater Houston.

Looking ahead to 2024, we find ourselves at a pivotal moment. Accepting that the COVID-19 pandemic is over, we must return to what we know and embrace the opportunities and challenges ahead. We need to embrace the essence of the car business as we knew it - a company built on passion, expertise, and genuine customer service.

Undoubtedly, the past few years have positively and negatively impacted our industry. While Covid forced us to adapt and innovate, it also instilled detrimental habits and processes, particularly in sales. I’ve witnessed that many of us have lost touch with the fundamentals of selling cars. We've grown accustomed to static pricing and a diminished focus on customer engagement and product knowledge.

The scramble for pre-owned inventory has intensified, leading to rushed evaluations and a devaluation of trades. The absence of new car inventory has fostered a 'take it or leave it' sales approach, eroding the depth of our product knowledge and customer interactions. We've witnessed a decline in follow-up and complacency that has seeped into all levels of dealership operations.

However, amidst these challenges, there lies an opportunity for renewal and growth. As we transition into 2024, it's imperative that we reevaluate our company cultures, invest in employee development, and reignite our passion for the automotive industry. We must celebrate successes, learn from setbacks, and prioritize the joy of selling vehicles.

As demand for cars surges and OEMs push inventory in the coming year, we must embrace a renewed sense of purpose and dedication. It's time to return to the fundamentals, rekindle our passion for our products, and reaffirm our commitment to the Houston customer.

As we navigate the road ahead, let us remember the words of Ramsay Gillman: "Nothing happens until you sell a car." I am confident that we will rise to the occasion and continue to thrive in this automotive industry.

Sincerely,

Chris Gillman

Chairman, Houston Auto Dealers Association

2023 Total Sales Reached a New High

The Houston Region's automotive landscape witnessed notable shifts in the fourth quarter of 2023, reflecting both challenges and opportunities within the market. Despite an overall decrease in total sales from the preceding quarter, the region remained resilient and saw the 4th best year in new vehicle sales for the Houston Region at 356,437 vehicles sold.

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.