Major companies like Stellantis and Nissan have been making headlines due to significant earnings declines. In today’s episode of Inside Automotive, Chris Saraceno, Vice President and Partner of Kelly Automotive Group and Author of The Theory of 5, discusses how these declines are affecting dealers
Key Takeaways
1. Chris Saraceno acknowledges that the automotive industry often faces uncertainties during election years, yet he emphasizes the need for dealers to focus on controllable factors rather than external political narratives. His experience over four decades helps him maintain a balanced perspective, urging others in the industry to adapt rather than react to economic pressures.
2. Additionally, Saraceno expresses concerns about Stellantis’ performance, citing a lack of focus and strategic pricing issues that have alienated their customer base. He compares the company’s current status to the “storming” phase of team development, indicating a need for clearer direction and support for dealers struggling to remain profitable amidst these challenges.
3. He stresses the need for Stellantis to improve its product offerings and incentives to help dealers thrive. Saraceno points out that introducing new electric vehicles (EVs) has not significantly boosted sales, especially outside crucial markets like California. This highlights the necessity for robust product lines to meet varying consumer demands across different regions.
4. Addressing workforce challenges, Saraceno notes the increasing difficulty of attracting and retaining technicians in the automotive sector. He emphasizes the rising costs of technician compensation, underscoring the need for dealerships to invest in training and outreach to local schools to secure a skilled workforce.
5. Nevertheless, Saraceno remains cautiously optimistic about the future of his dealerships, attributing success to strong leadership and teamwork. He believes having the right people in key roles can significantly influence a dealership’s performance. His focus on team dynamics and personal accountability reflects a broader understanding of how individual contributions can shape overall success.
"You just figure out a way to make things happen. Don’t let that person or that choice determine your success or failure." – Chris Saraceno.
