Strong employee engagement and strategic customer focus can drive both retention and profitability in today’s automotive market. On Inside Automotive, Alex Casebeer, GM and dealer, and Phillip Cianni, COO at Capitol Auto Group, share strategies for strengthening dealership culture, retaining employees, and maintaining profitability amid shifting market dynamics.
Capitol Auto Group, operating multiple franchises across Oregon, reports a mixed but stable business climate. New and used car volumes fluctuate by brand, with Toyota performing strongly while Subaru lags, and Cadillac achieving high sales. Overall net profit in 2025 remained roughly flat compared with 2024, though the leadership team anticipates modest improvement in 2026, emphasizing profitability over volume.
“We’re all blessed to work in the automotive industry. We know there are some challenges and opportunities ahead of us, but we are working away and trying to, on a daily basis, provide a truly exceptional guest experience.” — Phillip Cianni
The group prioritizes customer experience as a cornerstone of its business strategy. Cianni emphasizes a culture of transparency, efficiency, and enjoyment, ensuring customers receive the information necessary to make informed purchasing decisions. Employee engagement underpins this approach, with a 40-acre campus supporting nearly 450 staff. Initiatives include structured communication, consistent training, and active listening, fostering a workplace that balances productivity with work-life considerations.
“We tell our employees from the day we hire them, and at our new employee orientation, that our number one priority in this business is our employees.” — Alex Casebeer
Employee retention is central to Capitol Auto Group’s operational strategy. Casebeer notes that new hires are told from day one that employees are the top priority. The dealership empowers staff through programs such as “Elevate the Moment,” which allow employees to take immediate action to enhance customer experiences without managerial approval. Examples include offering complimentary services, sending gifts, or arranging special experiences for customers. This autonomy encourages engagement, reinforces service standards, and contributes to strong staff loyalty.
Fixed operations play a critical role in sustaining profitability. The dealership leverages service drive interactions to identify upgrade opportunities and trade-in prospects. Dedicated “upgrade specialists” coordinate between service and sales departments, providing appraisals and presenting offers to customers. This approach drives incremental business, with recent data showing that trade-ins sourced from service appointments contributed to a significant portion of sales on specific days.
Addressing workforce challenges, Capitol Auto Group cultivates technical talent internally and through external partnerships with schools, colleges, and community programs. Cianni and Casebeer emphasize starting new employees in entry-level positions, offering pathways to service technician roles through structured training and clear career progression. This model mitigates industry-wide technician shortages and ensures a pipeline of skilled personnel.
The group also explores technology integration to improve operational efficiency. AI systems support service advisors by managing appointment scheduling, reducing phone call burdens, and enabling advisors to focus on sales and service quality. Video MPIs provide transparent vehicle assessments, improving customer trust and engagement. Mobile service capabilities remain under consideration, reflecting a cautious approach to evolving service delivery trends.
Capitol Auto Group remains optimistic about emerging vehicle categories, including EVs, despite a decline in consumer engagement following the expiration of federal incentives. Charging infrastructure is available at all rooftops, and EVs remain integrated into community outreach and showroom displays. The group balances these efforts with inventory management strategies for high-cost models, such as the Cadillac IQ, which require targeted regional sales approaches.
Affordability and customer retention drive daily decision-making. Pricing strategies, service offerings, and promotions are continuously reviewed to align with consumer budgets and preferences. Casebeer and Cianni highlight the importance of expense control and cash management, particularly in a market with flat volume and tighter margins on new vehicles.
Looking forward, Capitol Auto Group remains open to acquisitions within its geographic region but prioritizes employee well-being, operational efficiency, and customer satisfaction. The dealership combines a strong culture, empowered staff, innovative customer engagement strategies, and measured adoption of technology to sustain growth, drive retention, and maintain profitability in a complex automotive market.
