Del Grande Dealer Group (DGDG) CEO Jeremy Beaver says dealership operations remain resilient despite EV demand weakening in California, rising costs, and ongoing market volatility, with fixed operations, internal promotions, and disciplined growth positioning dealers for 2026.
On today’s episode of Inside Automotive, Beaver shares how the loss of the EV tax credits has slowed demand in Northern California, while fixed operations continue to deliver record performance. He also outlines DGDG’s recent acquisition strategy, workforce investments, and how technology and AI will shape dealership operations heading into the new year.
Before the credit changes, over 40% of DGDG’s new-vehicle sales were powered by alternative powertrains, including plug-in hybrids and fully electric models. Beaver expects EV penetration to decline further into early 2026 before stabilizing, while demand for hybrid and fuel-efficient vehicles is expected to increase. He also notes that OEMs cannot retool production, which means supply will take time to catch up with the current market shifts.
A year of volatility
Although Beaver described 2025 as a year of tariffs, inventory challenges, and rising costs, the company plans an aggressive growth strategy combining acquisitions and internal promotions. “2026 is going to be a very offensive year for us,’ Beaver confirmed. Notably, the group employs roughly 1,000 team members and aims to exceed last year’s 100 promotions.
According to Beaver, the company’s fixed operations department now accounts for more than half of DGDG’s workforce, with over 300 technicians and supporting staff. He credits investments in career development and employee experience as the driving force behind the group’s record-breaking performance. Notably, DGDG grew the team by 15% this year, despite a national technician shortage.
“A lot of our growth is going to become from buying stores, but also growing the team internally, which is just the core of who we are at DGDG.”
While direct-to-consumer models present further challenges, Beaver stresses that dealers should focus on controllable factors to ensure long-term sustainability. For instance, Beaver adds that integrating AI across multiple data sources provides predictive insights over the next 3-5 years.
Looking to 2026
Further, Beaver remains optimistic about the new year. He notes that dealerships that invest in people, technology, and operational engagement will continue to deliver robust performance. “I think all in all, the car dealers are still going to have another good year,” he says.
Nevertheless, Beaver credits disciplined leadership and strong teams for DGDG’s performance and expects these elements to propel the industry forward in 2026 and beyond.
