The retail automotive industry faces challenges on nearly every front. Electric vehicles, artificial intelligence (AI), tightening federal regulation, and a new-car affordability crisis are reshaping the business from the ground up. Meanwhile, the average American new-car dealer is more than 70 years old, and manufacturer consolidation continues to put pressure on independent, family-owned dealerships. The Missouri Automobile Dealers Association saw the leadership gap coming and built its NextGen program to close it.
On this episode of Inside Automotive, we’re joined by MADA President and CEO Doug Smith; Chairman Nick Anderson, who also serves as Chair of the NextGen Committee; and Committee Members Kyle Weymuth, Alex Thompson, and Megan Sinclair Rosso.
MADA’s NextGen Committee looks to the future
MADA represents 368 new-car dealerships across Missouri. Roughly 80% of those are multi-generational, family-owned operations. As average dealer age climbs, MADA president and CEO Doug Smith says the association wanted a structured way to bring younger dealers into the fold.
“Getting them to come to our events was pretty easy. It just simply took an invitation, a personal invite from us. And these guys have hit the ground running,” Smith said.
“We’re here to protect our industry for the future.” — Kyle Weymuth
The NextGen Committee is open to active dealership managers under 40. Smith said the committee looks for future board members, future advocates, and future leaders who understand the association’s work.
“They are the future of our leadership. They are the future of this industry. They speak the language. They know the technology. They’re ahead of the game when it comes to those things,” he said.
The challenges today’s auto leaders face
Stepping into leadership roles comes with its own challenges, something many of MADA’s members can relate to personally.
Megan Sinclair Rosso, Dealer Principal of Dave Sinclair Lincoln and Vice Chairwoman of MADA’s NextGen Committee, said the biggest learning curve for her was recognizing that each department functions as its own business, with its own culture and processes.
“Every department operates as its own business, its own culture, its own processes. And the only way to be successful is to get them all to come together and be one team,” Sinclair Rosso said.
Fellow Committee Member Alex Thompson of Thompson Sales Company said running a dealership means operating a business while keeping pace with manufacturer guidelines that never stop changing.
“The biggest surprise learning curve is learning how each department runs while still running a business, but then following our manufacturer’s guidelines while running that said business. And those are ever evolving,” Thompson said.
Kyle Weymuth, Dealer Principal of W-K Chevrolet, Buick, GMC, pointed to consolidation as the bigger threat.
“We’re all multi-generational community dealerships. Big groups are coming in and buying a lot of stores like us,” Weymuth said.
A changing mindset for the next generation
Nick Anderson, Chairman of MADA’s NextGen Committee, and General Manager of Chuck Anderson Ford, said future dealership leaders need two qualities above all others: flexibility and adaptability.
“I think it’s vital that we have to adapt or die.” — Doug Smith
Smith agreed, noting the next generation’s technology fluency is an advantage, but warned it is not enough on its own.
Thompson said accommodating employees’ family commitments is not a perk. It is a core management philosophy that matters to the next generation of workers.
“Making sure the people, our employees, can do stuff for their families, going to your kids’ events, going to your kids’ games, is very important to everybody,” Thompson said.
Sinclair Rosso pointed out that women remain underrepresented across dealership departments. She says the barrier is more about confidence than opportunity.
“Women are super valuable in this industry. We see so much more success from women in every single department. They just need to have the confidence to know that they can come in and do this job and they can do it really well,” Sinclair Rosso said.
Social media and the FTC’s pricing policy
Social media has reshaped how dealerships reach customers and compete. And now, the FTC’s crackdown on pricing transparency adds a complex layer to the way dealerships and salespeople present prices on those platforms.
“It’s amazing the reach you can get using social media. The guys that really stay after it are the guys that become successful.” — Alex Thompson
Anderson said the FTC’s evolving interpretation of online pricing guidelines now requires dealers to keep every digital touchpoint consistent.
“We do have to be way more on top and way more quick to make sure that all of our online presence is reading the same to everybody,” Anderson said.
To address the many issues surrounding the FTC’s pricing policy, CBT News is hosting the Auto Leadership Summit on Fair Pricing and Compliance in Washington, D.C., on June 16. The summit will give dealers and industry stakeholders a direct line to the people shaping that shift. Registration is now open at cbtnews.com/auto-leadership-summit.
Digital presence has also leveled the geographic playing field, Anderson said. Consumers no longer need to drive across town to comparison shop.
“Dealers that are outside the metro areas can sell into the metro areas pretty easy,” Anderson said. “The important thing is just to increase the ease of doing business with us and take the pressure off the consumer.”
AI’s role in reshaping the auto retail industry
Another technology that’s making big changes in the industry is artificial intelligence. From marketing to sales, hiring, fixed-ops, and more, AI is quickly being integrated into every facet of automotive retail. It’s also something the MADA members had plenty to say about.
“I think it will be used, at least for the foreseeable future, as an efficiency tool by individuals that are currently there,” Anderson said.
Thompson was more skeptical about AI’s role in customer interactions.
“I think a customer, when they have a problem, enjoys talking to another person. I know how frustrated I get when I call in and I get one of the robots that sounds like a human,” Thompson said.
Sinclair Rosso said Dave Sinclair Lincoln is already using AI to route inbound calls, one of the dealership’s most common customer complaints.
“We have AI helping us to prioritize those calls and get everybody helped as quickly as possible,” Sinclair Rosso said.
Smith said MADA is approaching AI cautiously, focused less on applications and more on legal exposure.
“I’m more concerned about the legal ramifications of what AI might do or the exposure it might create for a dealer,” Smith said. “We’re working with some attorneys on maybe some best practices.”
The biggest challenges ahead
When asked about the biggest challenges facing dealers over the next five to 10 years, the panel pointed to several issues.
Weymuth singled out technician recruitment.
“That workforce is growing older by the day. They’re aging out quicker than we can get them in,” Weymuth said.
To address that concern, Weymuth says W-K Chevrolet, Buick, GMC has partnered with a local community college to help fund a new technical center and grow technicians from within.
Weymuth also says he’s concerned about manufacturer consolidation as a threat to independent dealers.
“I think they want to reduce their dealer count. Ultimately, I don’t think that’s good for the consumer. I think it’s important for the consumer to have choices,” Weymuth said.
Thompson said vehicle affordability is what he worries about. The average new car now costs more than $50,000, with monthly payments for many buyers exceeding $800.
“I think about that a lot. They’re getting to a price point. They do have great technology. I just don’t have a good answer to that question,” Thompson said.
The panel also weighed in on Chinese vehicles entering the U.S. market. Thompson said he was not in favor of having Chinese-made cars in the U.S. Sinclair Rosso pointed to her family’s history as a domestic brand dealer for shaping her stance.
“I have a Lincoln dealership, and our Nautilus is straight from China. But I mean, Dave Sinclair was my grandpa … He liked domestic brands. He will always promote domestic brands … He was a wise man, so I’ll lean into his thoughts,” she said.
Anderson framed it as a data security issue.
“The major thing I see with China right now is they’re not necessarily a friendly country to the United States. Allowing them to sell vehicles in the United States that will send information back to China is not high on my priority list,” he said.
Experience makes the difference
Looking ahead, the panel agreed that competition in retail automotive will be won on experience, not price or product. Anderson said they are already seeing that shift.
“Competition is aimed at the experience, not so much the vehicles or the price. We all sell nice cars. We all sell them at competitive pricing. It’s about the experience and the treatment that the customer either gets or perceives that they get at a particular dealership,” Anderson said.
Sinclair Rosso said the data backs that up. Consumers are now choosing their salesperson before they choose their car.
“I actually see people more focused on picking the right salesperson now more than ever. They go to DealerRater and they find their salesperson first before they find the car,” Sinclair Rosso said.
Weymuth said community investment is part of the competitive strategy for independent dealers. Sponsoring local youth sports teams and staying visible in the community keeps those customers coming through the door, he says.
Smith wrapped up the conversation by pointing to the key principle he says dealers need to prioritize today and in the future.
“At the end of the day, this is a trust business. The car buyer has to trust not only the experience, but they have to trust the person they’re buying it from,” Smith said.
It’s clear that the automotive retail industry is quickly evolving. But with initiatives like MADA’s NextGen program cultivating the next wave of dealership leaders, the independent, family-owned stores that have defined the business for generations will be better equipped to navigate whatever the future brings.