In today’s insightful conversation on Inside Automotive, Jeff Rosen, president and CEO of Rosen Automotive Group and chairman of the Hyundai Dealer Advisory Board, discusses the current state of retail auto sales, the impact of new tariffs, and Hyundai’s expanding U.S. operations. He also weighs in on the relationship between dealers and tech giants like Amazon and how hybrid vehicles are playing a larger role in OEM strategies.
Rosen Automotive Group experiences a seasonal slowdown in the first two months of 2024, followed by a strong March performance that kicks off a promising spring selling season. This uptick aligns with broader Midwest trends where weather and daylight play significant roles in traffic patterns. The group’s strong vehicle supply going into March helps meet increased consumer demand, which Rosen attributes partly to consumer anxiety driven by tariffs.
Addressing the Trump administration’s new auto tariffs, Rosen says the impact on his operations is minimal so far due to strong inventory levels and an agile business model. However, he acknowledges that the long-term implications could strain supply chains. He emphasizes the importance of fair trade and believes that a reshoring of manufacturing could ultimately benefit U.S. dealers by boosting domestic employment and consumer confidence.
Rosen highlights fixed operations as a key revenue stream, citing a 74% return for labor in the service department and more than 35% margins in parts. Hyundai and other OEMs are shifting focus to U.S.-produced vehicles, a strategy that aligns well with current political and economic conditions. This domestic focus supports dealer profitability and long-term planning amid market uncertainty.
As chairman of the Hyundai Dealer Advisory Board, Rosen shares insight into Hyundai’s expanding U.S. presence, notably the 10-million-square-foot Meta Plant. Initially focused on electric vehicles, the facility is now pivoting toward hybrid production, a move Rosen sees as a practical bridge strategy. He also points to Hyundai’s significant recent investments, including a new steel plant in New Orleans, as signs of the brand’s strong commitment to U.S. growth.
Rosen’s group participates in Hyundai’s Amazon retail partnership. Originally launched as a pilot, the program has since expanded, now offering leasing and used cars. While the initiative shows promise in generating traffic, Rosen notes there are still “bumps in the road” as both industries adapt. A dedicated group within the advisory board is currently working with Amazon to resolve friction points and refine the customer experience.
Through it all, Rosen emphasizes the importance of dealer-OEM collaboration. Whether navigating new technologies or macroeconomic changes, he believes the key to sustained success is mutual alignment on profitability and customer satisfaction.
"It is a partnership and we can't do what only focuses for us. We've got to do what works for them and vice versa." – Jeff Rosen
