As EV incentives shift and market conditions fluctuate, dealers are adjusting their strategies to stay competitive. In today’s episode of Inside Automotive, Kevin Pitts, general manager of BMW of Reading, part of the Tom Masano Auto Group, shares how his team is staying ahead of the curve.
In addition to Pitt’s BMW store, the Tom Masano Auto Group also owns a Mercedes-Benz and Ford location. June brought mixed results for BMW of Reading— fixed ops performed well, but used-vehicle sales proved challenging. New-vehicle sales volume, particularly at BMW, remained strong.
With the federal EV tax incentive set to expire at the end of September, manufacturers are ramping up offers to move electric inventory. Pitts commends both BMW and Mercedes-Benz for rolling out strong incentives to get EVs off the lot. Ford is also seeing strong traction, thanks in part to its “Zero, Zero, Zero” promotion: zero down, zero interest and zero payments for a limited time.
Historically, EV adoption in Pennsylvania has been slow. The region’s smaller size and limited infrastructure have made consumers hesitant to go electric. Despite some resistance, loyalty among EV buyers remains strong. Roughly 50% of EV buyers return for another electric vehicle, while the other half shifts to hybrid variants. Only a small portion, between 10% and 25%, of customers return to ICE vehicles.
"We can tackle everything as long as we put our heads to it."
Looking ahead, Pitts and his team are preparing for a broader shift from all-electric lineups and back toward ICE and hybrid models. BMW recently announced plans to reduce EV production by 25%, better aligning inventory with regional demand.
In addition, Pitts is prioritizing used-vehicle growth, identifying it the store’s most significant area of opportunity. Currently, BMW of Reading maintains a roughly 1.5:1 new-to-used vehicle sales. The dealership sources most of its used inventory through trade-ins, street purchases, service lane acquisitions and closed factory auctions. High-mileage vehicles are sent straight to auction; the store prefers to retail low-mileage, prime-condition vehicles under 75,000 miles.
To support these goals, BMW of Reading has restructured its marketing strategy. Last year, the team brought marketing in-house and, more recently, partnered with Reunion Marketing to boost their local SEO and digital visibility in the Redding area. The dealership has seen an uptick in phone leads, which, although not mirrored in showroom traffic, have converted at a high rate.
BMW of Reading is also enhancing its digital retailing capabilities. The dealership partnered with Cox Automotive on an omnichannel solution that delivers a seamless online-to-in-store experience that adapts to the customer’s preferred level of engagement.
Artificial intelligence is also playing a growing role in BMW of Reading’s daily operations. Pitts has integrated AI tools to streamline repetitive tasks such as writing vehicle descriptions, pricing updates and warranty research. By automating low-value work, the dealership is freeing up staff members to spend more time with customers.
Tariff concerns recently caused some hesitation among buyers, especially with BMW’s reputation for importing, but Pitts says consumer anxiety has settled.
