Building lasting automotive retail operations requires constant change, but the core foundation of success remains intact through the years of investing in people. On the recent episode of Training Camp, host Adam Marburger sat down with Industry Veteran, Best-Selling Author, and Kelly Automotive Group Vice President Chris Saraceno to discuss how the long-standing dealer group is positioning itself for future growth by leveraging artificial intelligence and building a culture rooted in internal talent.
While Kelly Automotive Group has served car buyers since 1929 and opened its first retail dealership in 1934, today, Saraceno and his partner, Greg Kelly, are executing an intentional succession and expansion strategy centered on equity ownership.
Currently, the group operates four stores with general manager partners. Over the next 18 to 24 months, Saraceno and Kelly plan to promote three General Sales Managers into GM positions, allowing them to buy into the stores after two years of proven success. Once those dealership partnerships are established, the executive team plans to pursue new acquisitions along the East Coast, focusing primarily on tier-one franchises like Toyota, Honda, and Lexus.
"When somebody starts looking at the business like we look at the business and they have the same pleasure and the same pain as far as when business goes up and down, it's just a little different when you have that positive pressure to perform and you're financially involved."
Growing talent from within
While acquiring new storefronts requires capital, Saraceno emphasizes that human capital remains a dealership’s most valuable asset. While modern facility upgrades satisfy manufacturer requirements, the culture inside the building ultimately drives vehicle sales and customer retention.
Rather than relying heavily on external hires who may struggle to adapt to the group’s core values, Kelly Automotive Group prioritizes developing talent from within. Saraceno himself began his career in sales before moving up through the ranks, a career path shared by nearly every manager across their rooftops.
To recruit and retain high performers who act like business owners, Saraceno advises dealers to set transparent expectations from day one:
- Detail the exact behaviors, inventory knowledge, and follow-up standards required for success in writing
- Screen candidates thoroughly during interviews to ensure they can handle high expectations without sugarcoating the effort required
- Shift sales consultants away from passive habits and teach them to manage their daily pipeline like an independent business within the dealership
Treating AI like a developing mind
As the industry becomes more aware of AI reshaping operations, Saraceno cautions against viewing AI tools as simple plug-and-play software. Instead, he compares integrating AI to raising a child because it requires active human oversight, continual training, and precise guidance to mature effectively.
"So I always look at AI and say, it's almost like your child, but it's just going to grow much faster than that."
Without team members monitoring outputs and refining prompts, AI tools will make mistakes and fail to adopt the store’s specific brand voice. However, when nurtured with detailed operational data, AI becomes a powerful assistant that accelerates daily workflows and customer communications. Additionally, addressing traditional showroom dynamics, Saraceno advocated for a merit-based “guest system” over an open-floor model.
Under an open-floor structure, sales reps often rush outside to catch foot traffic, sometimes burning through potential customers without turning them over or conducting proper discovery. Conversely, a merit-based system rewards top performers, such as reps with the highest appointment show rates or referral conversions, by giving them priority customer interactions.
This structured schedule gives sales consultants dedicated, uninterrupted time at their desks to execute critical proactive tasks, like:
- Following up with past buyers to check on additional household vehicles
- Outreaching to prospective leads via social media and phone calls
- Planning daily appointments rather than waiting anxiously on the lot
Despite decades of success and multiple published books, Saraceno remains fully engaged in daily operations, wearing a suit and tie every day and continually mentoring young professionals across the industry.
