Category:

Automotive

The Road Towards Electric Vehicles

by Don Forman September 1, 2022

written by Don Forman

Climate change is among the most serious issues we face today. The science is clear: the toll we have taken on our planet is approaching irreversibility, and its impacts will be notable. While these effects cannot be entirely eliminated –some of which are already happening– we still have the opportunity to mitigate them through appropriate action.

Our societal shifts to more earth-friendly practices will come at a cost, but it’s clear that the damages we risk through in-action are far greater. National governments have recognized this urgency, which is one of the reasons why there is a push for mass electric vehicle (EV) adoption.

In the U.S. alone, we have seen federal and state administrations prioritize the shift from gas to EV. For instance, President Biden has set the ambitious target of 50 percent of EV sale shares by 2030. States like California even plan to phase out new internal combustion engine vehicles entirely by 2035.

Despite these aspirations (and the rapidly approaching deadline), all-electric vehicles make up less than 1 percent of cars on the road. That leaves the automotive industry with the trillion-dollar question, “How can we move the needle?”

The road to mass EV adoption will not be easy. We’re seeing the “bumps in the road” debated as we speak: concerns over infrastructure, range anxiety, and whether electric vehicles are truly the answer to our climate problems.

I’m of the belief that knowledge is our path forward. If we are to reach mass adoption, the blockades need to be better understood – not only by the administrations who set these goals but also by the manufacturers who produce the cars and the consumers who ultimately decide whether they sell.

Environment

Electric vehicles’ environmental benefits are still heavily debated. After all, they use a finite material just like their fuel counterparts. It’s true that mining these rare earth metals has environmental impacts, along with the embodied emissions in creating batteries.

However, new research within the last year shows that EVs are unambiguously better for the environment, even accounting for the supply chains. Along with this, the biggest draw to EVs is the elimination of harmful tailpipes, which are responsible for killing thousands of people every year. Science has shown that a decrease in air pollution would result in reduced hospitalizations and an overall healthier population.

But whether EVs are better for the environment is only one hurdle. The overwhelming majority of car shoppers do not purchase vehicles based on these facts alone, and these facts don’t compensate for the next hurdle: infrastructure.

Infrastructure

Beyond its environmental impact, it must also be considered whether electric cars are both practical and safe as a long-term solution. Many experts are concerned that our current infrastructures are unable to handle mass EV adoption.

Last year, Texas saw the worst grid failure in the state’s history. This wasn’t just limited to Texas, either. According to Reuter’s examination of federal data, the number of power outages over the last six years has more than doubled those in the previous six years.

Some states have already experimented with rolling blackouts to conserve energy, too. If we were to increase the number of electric vehicles on the road, especially in as rapid of a timeline as 2030, it would add pressure to the nation’s grid in two ways. It would not only spark a surge in the power demand, but it would also increase our dependence on renewable energy, which could pose problems on days with less sun or wind.

A solution to this would be expanding and modernizing our nation’s grid system, but that too comes with its own set of challenges. Although the federal government is the driving force in pushing mass EV adoption, they lack the authority to expand the grid.

As Reuters reports, “Paying for major grid updates would require regulators to sign off on rate increases likely to spark strong opposition from consumers and local and state politicians, who are keen to keep utility bills low.”

Ultimately, the conflicting interests make it even more difficult to coordinate any meaningful plans to modernize the grid.

Consumers

Should these issues be resolved, it would still not be enough to drive people to purchase EVs. In fact, most car shoppers buy off familiarity: whether that’s with a particular brand and nameplate or through talking with a current owner of the car they’re considering.

Manufacturers can use this to their advantage by releasing EV models of a staple nameplate, as we’ve seen with models like the Ford F-150 Lighting.

The truth of that matter is that if we are to electrify our roads, we need to be addressing the concerns of the consumers. Many drivers do not consider emissions but will consider the amount of money they are spending. A lower monthly bill and little-to-no maintenance are attractive features to many shoppers.

A concern we hear at United Nissan from many drivers about EVs is range anxiety. They are worried that they will be stuck in a scenario with no charging stations in sight and a near-dying battery. In practice, this is not as large an issue, considering most commuters travel an average of 30 miles a day. This is a concern, however, when it comes to longer trips – which is a huge factor in buying decisions.

The automotive industry is slowly overcoming this through added charging stations and longer-range batteries. New models like the 2023 Nissan Ariya or Toyota bZ4x can go 300+ miles on one charge.

But the time investment remains a hurdle here. Normal charging stations can take 5 to 10 hours to fully recharge a long-range vehicle. If you’ve ever seen a Costco gas line, you know this is not an ideal scenario.

Within the last few years, we’ve seen attempts to reduce wait times through options like DC fast charging. These stations draw a higher voltage and fill up the battery much quicker. The Kia EV6, for instance, can gain 200 miles in less than 20 minutes with fast charging. Can it compete with the time it takes to refuel? No, but it allows the driver to grab a cup of coffee and come back to a near-fully charged vehicle.

For and against, the transition from combustion engine vehicles to electric vehicles appears inevitable either way. Whether we accelerate at the rate we have set out though, remains uncertain. At every level, whether that be in regard to infrastructure, manufacturing, or selling, there are bumps in the road that need addressing. If we are to reach our goals, it is the responsibility of all involved – dealers, government agencies, car shoppers, and manufacturers – to understand what is at stake as we drive towards a cleaner future. In general, leading with an open mind is bound to set us on the right path.

September 1, 2022 0 comment

Automotive

How the Pandemic is Shaping the Future of Automotive

by Don Forman February 2, 2022

written by Don Forman

The automotive industry, relative to other sectors like tech and healthcare, has not changed much since the 20th century. And like any great empire, it was due for a change.

When the “novel coronavirus” arrived in 2020, every aspect of the car business was disrupted. Showrooms, factories, and freeways went quiet. Sales departments were forced to temporarily shut down, manufacturers paused production sending thousands of employees home, and in places like Los Angeles and Salt Lake City, traffic plunged by more than 70 percent as the nation went into lockdown.

With the future uncertain, new cars were no longer a hot commodity, and car sales in the U.S. dropped over 40 percent in one month. Retail forecasts were grim with J.D. Powers predicting a decline as high as 80 percent. In anticipation, manufacturers canceled orders of semiconductor chips – a mistake that would prove detrimental in the coming months.

Forced to quarantine inside, Americans made the best out of a hard time and purchased laptops and smartphones at record rates. With nowhere to vacation, a significant drop in takeout dining, and an influx of government aid, many people, in a surprising turn of events, skyrocketed their personal savings accounts. Now with money to spend and temptations from historically low-interest rates, demand for cars bounced back quicker than anyone expected.

But when it came to browsing the lots, most consumers were met with skeleton fleets. Dealerships that used to host hundreds of cars at any given time dwindled down to 50 at most. Automotive giants inadvertently shot themselves in the foot when they canceled orders of semiconductor chips. Those chips, which take about 6 months to make, were bought in large by tech companies like Apple and Android who needed them for the increased demand for digital products. Automotives, now returning too little too late to the game, suffered.

To make the most of limited supplies, some manufacturers like General Motors temporarily removed features that require additional chips, such as heated seating and their Stop-Start system. Others opted for analog odometers rather than digital.

The pandemic gave wind to an already shifting industry. Before the coronavirus, factors like new emerging technologies, changing consumer preferences, and a push for sustainability policies were all leading automotives down a road of digitization – but the pandemic certainly floored the gas pedal.

Nearly two years since the start of the pandemic, a casual glimpse over the automotive industry suggests it has returned to normal. But under closer inspection, it’s clear that it is anything but. Though new car sales plummeted in the early months of 2020, the need for vehicles returned quicker than expected. Rental companies who offloaded their fleets due to travel restrictions had to buy back new inventories, drivers with money in the bank sought out upgraded models, and many were eager to get back on the road as restrictions were lifted. Factories slammed with chip shortages and COVID-19 guidelines that hindered production, struggled to meet demands.

The halt of vehicle production in 2020 created a pent-up demand for new cars in the millions. It’s estimated that there are 2.5 million fewer vehicles at dealerships compared to pre-pandemic years. Even with initiatives to pump out record-high production rates, it will still not make up for the deficit of cars. Eventually, the supply and demand will return to “normal,” but not anytime soon.

These unusual circumstances have been a catalyst for change in the car business. It’s given new ways to do business, altered consumer behaviors, and accelerated the biggest shift in the industry in over 100 years.

With demand so high, there has been an opportunity for manufacturers to limit incentives. Whereas incentive budgets used to be in the hundreds of millions, now they are down to nothing. The reality is that they do not need to incentivize drivers right now meaning they can eliminate some of the benefits or bonuses of buying a certain brand. At the same time, we’re also seeing shoppers prioritize less. While there was a much larger focus on price and technology a few years ago, drivers are now just happy to get a car that’s on the lot. For dealers, cars are being sold before they even hit the ground.

The pandemic has also boosted the popularity of emerging technologies. Consider car buying; most shoppers use their smartphone or laptop when purchasing a vehicle. Before the pandemic, there was a growth of price shopping online, virtual walkthroughs, and 360-degree views of the cars. When showrooms shut down, this technology proved invaluable. Today, shoppers have the option of getting a vehicle delivered to their home to test-drive or purchasing a car without stepping into a brick-and-mortar location.

Within the last decade, there’s also been a radical focus on sustainability. New research on climate change and efforts to reduce carbon emissions grew companies like Tesla to unforeseen heights. And despite all obstacles that might prove otherwise, the pandemic drove electric car sales to grow over 40 percent in 2020.

When it comes to the future of automotives, the biggest shift will be from gas to electric. We are already seeing this change in some regions. For instance, in California, Tesla’s all-electric Model 3 is the current second-best-selling car.

Without a doubt, the automotive industry is moving towards electrification. Stricter emission regulations, lower battery costs, and government initiatives are helping pave the way. Our current administration, for example, has goals of 50 percent of car sales being electric by 2030.

Some of the largest manufacturers have flagships that mirror this as well, such as Nissan’s Ambition 2030 and Toyota’s Beyond Zero. Others, like Audi and Infiniti, have taken it a step further and promised fully-electric lineups in the same time frame.

But unlike California’s infrastructure, which is suitable for EVs like the Model 3, the same cannot be said for rural areas where off-road-ready trucks dominate the dealerships and charging stations are few and far between. Going electric may sound like a straightforward path, but there will be a few roadblocks the automotive industry must overcome to have a truly sustainable, electrified future.

From a consumer perspective, the roadblocks are small. Many drivers worry about range or whether an electric vehicle can tackle challenging weather conditions and terrain. These shortcomings will be an easy fix compared to the large-scale issues at play.

The biggest obstacle facing electric vehicles is infrastructure. Currently, there are not many places to charge electric vehicles, and there’s even less with fast charging. If you’ve ever tried to get gas at 5 p.m. after a workday, you can see where this might cause issues for vehicles that need 15 plus minutes to get enough juice.

Similarly, if we are to expect widespread adoption of electric vehicles, we have to consider the infrastructure supporting these charging stations. Some power grids do not have the capacity to generate enough power to support a surplus of electric vehicles. Texas’s power crisis last year also highlights an achilles heel that must be considered if we are to expect an electric future. In the event of power shortages, we must have backup support to keep society functioning.

There’s also another problem obstructing the path: the batteries themselves. Lithium, the metal used to create clean technologies like EV batteries, is a finite resource. If we are to look at electric vehicles as a long-term solution for climate change, using a non-renewable resource raises the questions of energy security. According to many experts, current EV batteries are not designed to be recycled. Putting them in landfills defeats the purpose of green energy, and cutting the batteries to recycle poses the risk of combustion and the release of toxic fumes. Fortunately, millions of dollars are being spent on research to design recycling programs that are efficient and safe.

Besides electrification, the automotive industry is also driving towards autonomous vehicles. Our current advanced driver-assistance systems (ADAS) are preparing drivers for the future of self-operating cars. With the rate of development from companies like Tesla and Luminar, it would not be unreasonable to expect fully self-driving cars by 2030.

Current trends also point towards ride-sharing possibilities. Increasingly our society is moving towards goods and services being delivered rather than fetched – think Amazon, DoorDash, InstaCart, etc. If automotives follow a similar path, we can expect vehicles to be an on-demand service too. Rather than having a vehicle that sits in your driveway, you can order fully autonomous cars to pick you up and drop you off at your destinations. Enormous fleets would be available 24/7, charging themselves as needed and bringing themselves to shops for maintenance as required.

The future of automotives may also rely heavily on artificial intelligence. Interconnected vehicles will be able to communicate with each other, passing on intelligence, helping shape safer and more efficient roadways. This type of technology is already being worked on by mass-market brands like Nissan.

Ultimately, it’s impossible to be certain of the future, even with trend indicators. New ideas are continuously evolving that shape the fate of automotives and mobility. Even with a clear roadmap, the unpredictability of the world can alter our course of action to new, possibly better, ideas at any time. As the saying goes, “The only thing you can count on is change.”

February 2, 2022 0 comment

Automotive

What It’s Like Being a Toyota Dealer

by Don Forman November 30, 2021

written by Don Forman

For most of my career, my reputation has been intertwined with Nissan. But before I came to notoriety as a Nissan dealer, I was loyal to a different Japanese automaker – Toyota.

My entry into the car business began as a salesman at Toyota Bell Road in Phoenix, Arizona. At the time, I was already familiar with the brand’s automotive prowess, having owned a Toyota Tacoma SR5. What I really learned at the job, however, was the depths of Toyota’s quality, culture, and the values that determine how they operate on a daily basis.

When I started at Bell Road, Toyota had been on American soil for 30 years. Just a couple of years prior, in 1986, the brand became the first import automaker to sell more than one million vehicles in the U.S. in a single year. In other words, Toyota was selling like wildfire, and it was clear as a salesman that the brand had upped-the-ante on what consumers expected from their vehicles.

In the early stages of my career, I briefly moved brands as I climbed the ladder from being a salesman to General Manager. That was until I was offered a position in Las Vegas at Toyota West. In just a year’s time, the same company transferred me to take over their Nissan store, Nissan West, which later prepared me for running United Nissan.

Once I became a dealer, I immediately knew I wanted to join the Toyota franchise; it was a longtime dream of mine. When that happened earlier this year after I acquired 3 dealerships in Imperial Valley, it felt like a blessing.

Even though I am the new kid on the block, I feel like I’ve been with the brand forever. I learned very quickly another side to Toyota, which is their commitment to building relationships with their dealers. They treat our matters like it’s equally important to them.

The same philosophy I apply to build trust between my teams is the same that Toyota does for their dealers. They make sure to emphasize the importance of what we’re doing, and they make it a priority to support us in all areas. From people to performance and profitability, Toyota ensures they are doing the most to assist us. That’s why I think being a Toyota dealer is so inspiring; you really feel like you’re working with a partner who has your best interest at heart.

It’s clear having worked with Toyota as a salesman, Finance Director, and now as a dealer, that they truly embody their “Respect for People” and “Continuous Improvement” ethos. My testimonial is only one perspective, but you don’t have to just take my word for it. There’s a reason Toyota ranked No. 1 car company for the sixth consecutive year on Fortune Magazine’s “World’s Most Admired Companies” list.

Besides operating with integrity on an internal level, I also admire Toyota’s initiative to use its influence for positive change. Companies of their stature have world-changing influence, and Toyota’s “Beyond Zero” flagship is one example of how they plan to change the future. Most auto manufacturers have goals of reducing their carbon footprint to zero, but Toyota (like how they raised the bar with their vehicles) plans to go beyond that and into a net positive impact.

Today, the brand remains the world’s leading manufacturer of hybrid cars with more than 1.7 million hybrid vehicles on the road. And though they weren’t the first to release an all-electric mass-market vehicle (props to Nissan with the LEAF), they certainly aren’t late to the game.

The new bZ4X that was announced at the LA Auto Show marks the beginning of Toyota’s electrification era, and I believe this will be a turning point for the auto industry. I also anticipate incremental business growth from the upcoming, all-new 2022 Toyota Tundra. I was fortunate to see it at the National Dealer Show, and again at the Regional Dealer Show, and to say the least, it’s fantastic. It needed to be redone and the next generation will surely give competitors in the segment a run for their money. Overall, the next era for Toyota’s lineup seems promising and I’m eager to see what they have in store.

November 30, 2021 0 comment

Automotive Business

How Forman Automotive is Transforming the Car Salesman Stereotype

by Don Forman November 10, 2021

written by Don Forman

The job of a salesperson isn’t an easy one. Besides requiring expert-level product knowledge and handling rejection with grace, one of the most daunting aspects of the job is its inauspicious societal perception.

Before entering a store, a customer will likely already have a preconceived notion of its sales team. In fact, studies show that most people associate sales with words like “greedy,” “manipulative,” and “sleazy.”

The automotive industry, in particular, has the dubious reputation of being considered among the most unethical. In a 2018 Gallup poll, surveyors found that car salespeople were rated the least trusted professions, with only 8% of people viewing them as honest. This stigmatization has given them a reputation akin to telemarketers and Congress.

Historically, salespeople have been perceived as scam artists looking to take advantage of their customers. Unfortunately, this ideology has warped society’s perception, with many people failing to recognize the valuable services that salespeople provide. The truth is, salespeople fill a vital role in any industry.

Not only do they serve as the face of the company, but they are also responsible for assisting all customers of every experience level. Without them, it would put the effort of navigating the goods and services of a particular company onto the consumer.

So if their importance is indisputable, then where did this nearly unshakeable stigma come from?

The Business of the Old

For many, the words “car salesman” are enough to produce vivid imagery of a hyper-enthusiastic, crooked man in a cheap suit. And in the media, this cast prevails. Roles like Willy Loman in the Death of a Salesman, Professor Harold Hill in The Music Man, and Dr. Terminus in Pete’s Dragon all portray a similar image.

But, was it the media’s vilification or the wrongdoings of the industry that has allowed this stereotype to thrive?

Don Forman, who currently owns five dealerships across the southwest under Forman Automotive, argues the latter. “I think it’s a derivative of how people in the business of the old treated the car industry,” said Forman.

From the four-square method to playing a version of “good cop, bad cop,” there is a long list of selling tactics that were once used by, what Forman calls, the “salespeople of the old.”

“That whole culture was created inside the car business, and then viewed by the general public, and exposed even more so when the internet came about, and transparency was forced,” said Forman.

Before the internet, most consumers were not as informed as the merchants before making a purchase. This lack of knowledge allowed some sellers to take advantage of what was not readily known. Now, consumers can fact-check information within seconds. Along with this, they can read customer testimonials, research competitors, and learn all about new models from the comfort of their homes.

Outdated selling tactics no longer work in the day of the digital. And now, more than ever, a company’s reputation on and offline determines the success of its business. “Nowadays, it’s about transparency and respect,” said Forman. “Salespeople like that are going to be fazed out of the business.”

Setting a new standard

Though the tides are changing, the negative “car salesman stereotype” still affects workers. In The Journal of Selling & Major Account Management, evidence shows that car salespeople are aware of this stigma, which leads to decreased confidence, performance, and sales.

Forman, who started as a salesman in 1991, understands this well. Recognizing the need to set a new standard, he adopted an altruistic attitude from the start. “You want to treat people how you want to be treated,” he said.

“It’s about the customer and making sure we follow through with everything we promised. In the automobile industry, that’s some of the things people fear – that someone is going to say something and do another. That’s something I never participated in as a salesperson.”
Don Forman

This philosophy has been the bedrock to Forman’s success and what he aspires to teach his team. Forman Automotive acknowledges the need for strong mentors in the sales world, so much so that they even employ a Corporate Training Director to help motivate and guide the sales teams – which is a rarity for the automotive industry.

Along with this, Forman notes that one of the best ways to combat the negative stigma is through educating both his team and consumers. Because of the negative stereotype, many people are unaware of the benefits of going to a dealership, such as thoroughly vetted vehicles, warranty coverage, comprehensive service departments, and community support.

Today, there are a plethora of opportunities for consumers to purchase a vehicle. Whereas before many people resorted to driving to their nearest dealership, consumers can research different dealerships across town, connect with private sellers from another state, or even buy from third-party retailers online and have their car delivered.

Unfortunately, some consumers do not realize that many third-party retailers do not recondition their vehicles. Not only can this lead to needing major repairs down the road, but if that time does come, it’s harder to get it solved because the retailers do not have service departments.

At dealerships, all vehicles are thoroughly inspected for quality, and one’s that do not meet the standard are reconditioned. Along with this, the vehicle is likely covered under warranty and can easily be transported to the service team.

“In a lifetime of owning cars, you will have a car that has a problem. It’s going to happen,” said Forman. “If that’s the case, then you want a contact and a relationship with the dealer you did business with so they can address it.”

The future of the salesperson

While the internet has created fierce competition in the car industry, it’s also opened opportunities for more success.

“We’re educating our staff every day on customer service and what a customer expects. But what salespeople need to understand is that they create or destroy their reputation via the transparency that’s provided through the internet,” said Forman.

Nowadays, it is not unusual for employers, coworkers, family friends, and complete strangers to search someone’s social media. And when making a purchase as serious as a vehicle, it’s highly likely that customers search the social media of their salesperson.

Forman says the salesperson of the new is “tech-savvy, has a reputable social media presence, and has a customer service-first attitude.”

One of the ways he recommends new salespeople to succeed is by building relationships with people when you meet them, whether that be online, on the phone, or in-store. And most importantly, Forman advises treating all customers with respect.

“You cannot afford to not respect the consumer.”

November 10, 2021 0 comment

Automotive

How COVID-19 Changed the Automotive Industry

by Don Forman November 1, 2021

written by Don Forman

The pandemic altered many lines of work, and the automotive industry was no exception. Global lockdowns shut down every non-essential business, and among those were car manufacturing plants and dealerships. Since then, there have been long-term ripple effects that many experts anticipate lasting until late 2022 – and possibly later.

Don Forman, owner of Forman Automotive, knows the pressure of these challenges well. As a seasoned automotive executive of over 20 years, there isn’t much that he hasn’t seen. But even COVID-19 threw him and his team for a loop.

The Early Days

“Initially, probably like any other business owner, I was anxious to figure out answers,” Forman said. Though he’s navigated volatility in the past, such as during the 2008 recession, the obstacles from the pandemic were unmatched.

“Unlike [in 2008], where we still had the opportunity to sell and finance cars, when they shut the dealerships down – we couldn’t do business! That was a whole new dynamic,” he said.

Though the presence of COVID-19 was known by many in January 2020, it wasn’t until March that year when things took a turn for business owners. During this time, 46 states ordered all non-essential businesses to close with time frames ranging from 3 weeks to nearly 3 months.

Forman’s 5 dealerships across the southwest were among the thousands of businesses that had to shut down. Fortunately, all service departments were allowed to remain open. However, this faced its own set of challenges, such as many employees fearing the risk of exposure.

“I think we spent a lot of time in the beginning trying to understand what our next move was, how we were going to navigate that time, and the new challenges we were facing,” Forman said. “It was incredibly stressful. The first 3 or 4 weeks were mind-boggling.”

For Nissan dealers, the pandemic also came at an especially unfortunate time. Alongside the struggles of COVID-19 was another obstacle; the brand was undergoing a restructure as they envisioned its purpose and mission.

“We saw a downturn, a little bit of a change in business going into the beginning of 2020,” said Forman. “In some cases, Nissan’s issues exacerbated the effects of COVID.”

Taking Care of Family

All of Forman’s businesses are rooted in the ideology that team members are family and should be treated like such. Forman made it a point to maintain this ideology, despite the hurdles from COVID-19.

“The first thing we did was make sure everybody got paid,” he said. Forman also notes that the team tried their best to ensure everyone still had a job during the lockdown. Because of their efforts, the group was able to successfully maintain a majority of its team.

“When you have a business disaster, you have to take care of your people. And you have to make sure they’re made whole enough to survive alongside you. That was our goal through COVID.”
Don Forman

A Rapidly Changing Space

Over the past year and a half, the car industry has been turned on its head. From chip shortages to price surges and skeleton inventories, the space has been rapidly changing and forced to adapt to its environment.

A defining moment in this was during the global closures of manufacturers. Forman explains that this created a 60-day gap in production. Though it may not seem like much, a gap of that caliber can offset millions of vehicles.

For example, if a country sells approximately 18 million cars a year, it equates to about 1.3 to 1.5 million vehicles sold per month, depending on the season. For 60 days, that’s around 3 million cars taken out of inventory. If demand is still high, it creates a shortage.

“Even if all these manufacturers were producing 100% on a monthly basis, mathematically, it still means there will have to be some sort of a downturn in the market to get normalized again,” said Forman.

This gap in production, on top of the computer chip shortages from chip manufacturers shutting down, has caused the global new vehicle inventory to be significantly impacted.

So why don’t consumers just buy used cars in the meantime? Unfortunately, there’s also a shortage of pre-owned vehicles too.

Because of travel bans and restrictions, rental car agencies were experiencing all-time lows. This caused many of them to rapidly unload their existing fleets without purchasing replacement vehicles. Because the used market relies heavily on this, the supply was not being sufficiently replenished.

The second way used inventory is restocked is through consumers selling or trading them in. However, with record levels of unemployment, financial insecurity, and stay-at-home orders, most people chose to stay with their current models last year. As a result, fewer used cars entered the market, and the prices surged.

Finding Opportunities

While all may seem equally frustrating and discouraging for dealership owners, Forman notes he’s able to grow through the challenges by focusing on what can be fixed.

“You can’t control what the government says you can do. You can’t control if they say you can’t sell cars, and you can’t control if you have no cars to sell,” he said. “I learned you have to take those things and not dwell on them.”

He notes that the key is getting creative with solutions and being comfortable with change. “You have to manage your business based on the opportunities you’re given. There is the opportunity for dealers to make more money per transaction. We’re also seeing that a lot of customers are spending a lot more effort making sure that the cars they own are well serviced. We’re looking at better ways to put more emphasis on service and parts in our companies, so in the long run, that foundation is stronger.”

Because of this fresh approach, Forman’s dealerships have been able to take more market share and gain a larger customer base. While other dealerships have yet to change their messaging, Forman’s dealers have adopted a different approach geared more towards a younger audience, which has allowed them to significantly outsell their closest competitors.

Along with this, he’s currently working on bringing trends from outside industries to the automotive space. The car business, unfortunately, falls years behind other pop-culture-savvy industries such as tech, beauty, and wellness.

“I’ve learned that you have to adapt to the times,” he said.” As people adopt more of that stay-at-home [ideology], we’re adopting a service program where we can service customers at home. I think it will fit into this new wave that the younger generations want to do business.”

A Brighter Future

Though he recognizes that the pandemic is far from over, Forman is hopeful to return to a state of normality. Just like during the 2008 recession, Forman knows from experience that with time; things will always get better.

As for the automotive industry, Forman believes the industry has been headed towards online purchasing experiences for years now. “It’s a no-brainer,” he said. “When you look at just the dynamic and sheer size of how many [vehicle] delivery companies are out there – the answer is clear.”

Aside from the cars, he also notices that society as a whole has been completely changed. “I think it’s affected a lot of people’s enjoyment in life and how we interact on a daily basis. People are adopting new ways of life.”

With new ways of life comes new ways to do business, and it’s evident Don Forman will be at the forefront of these movements.

November 1, 2021 0 comment