Running a single dealership is one challenge, but scaling a multi-state network of over 1,000 employees requires an entirely different strategic lens. On today’s episode of Inside Automotive, we’re joined by Matt Bowers, Owner of Matt Bowers Auto Group, to discuss the state of retail automotive, the shift in dealer management mindsets, and why he is aggressively expanding his footprint even as consumer demand softens.
With 12 dealerships currently in operation, plus an RV store, and two additional Texas acquisitions under contract set to close within 60 to 90 days, Bowers shares a candid look at where the retail auto industry is heading and why counter-cyclical investing is his group’s core strategy.
What’s driving the disconnect
While public dealership groups hit record stock highs and economic headlines suggest broader strength, Bowers sees a different picture on the ground. For the average “Johnny Lunch Bucket” consumer, high vehicle prices, flat wages, and general cost-of-living increases have flattened retail demand.
"I read the news. I watch the stock market. And to me, there's a disconnect between that and what I see at a consumer level. ... I think it's more flat. Flat to down.”
This margin compression is particularly visible in used-vehicle operations, where Bowers warns that retailers have gotten caught up in chasing volume over profitability. He notes that accepting paper losses on pre-owned inventory under the premise of feeding service reconditioning, or disguising eroded margins under terms like “super grosses,” signals a broader shift in industry discipline.
The counter-cyclical M&A strategy
While large public consolidators focus on paying top-dollar multiples, often 10x or higher, for premier Toyota, Honda, or top-tier luxury stores, Bowers takes a very different approach to acquisition. He targets brands at the bottom of their cycle.
| Strategic attribute | Peak-valuation franchises | Counter-cyclical franchises |
| Target brands | Toyota, Honda, Top-Tier Luxury | Stellantis, Nissan, Regional Domestic |
| Valuation & multiples | Peak Valuations (10x+ multiples) | Undervalued / Counter-Cyclical Entry |
| Primary buyers | Publicly Traded Consolidation Groups | Strategic Private Operators |
| Upside catalyst | Steady market share retention | Product refresh cycles & operational recovery |
Instead of paying premium multiples at the peak of a brand’s popularity, Bowers actively pursues franchises that offer long-term operational upside. For example, with Stellantis, Bowers believes the franchise hit its absolute floor in 2024. As product returns to showrooms following recent executive shifts, he projects a steady recovery through 2028. Notably, his Stellantis dealership in Baton Rouge remains the most profitable store in his entire group.
With Nissan, citing domestic production strength as a major hedge against import tariffs, Bowers points out that Nissan will soon manufacture roughly 95% of its U.S volume in Smyrna, Tennessee, and Jackson, Mississippi. Combined with fresh core product launches like the new gas and hybrid Rogue lineups, he sees significant runway for growth in strong regional markets.
"So what I do typically is I buy brands that are kind of counter-cyclicals... So I try to find that value point."
His long-term portfolio strategy limits exposure to any single manufacturer, ensuring no single brand contributes more than 20% of the group’s net profits as he scales toward 15+ locations.
Supporting service revenue
Despite a minor Q1 flattening across the broader market, fixed operations remain a steady foundation for the group. Driven by the oldest average light-vehicle age in modern U.S. history (12.5+ years), repair order counts, hour-per-shop metrics, and overall service revenues have seen sustained year-over-year gains.
Bowers notes that as vehicle affordability pressures keep consumers in their current rides longer, service departments will continue to be the steadying financial engine for retail groups.
On the other hand, Bowers also offered sharp commentary on two of the industry’s most debated topics:
- Pre-owned EVs find their footing
While new EV adoption remains highly market-dependent and reliant on leasing incentives, pre-owned EVs are gaining meaningful traction. For price-conscious buyers, a pre-owned EV presents a lower barrier to entry without the steep initial depreciation curve. - The threat of Chinese imports
Bowers echoed strong opposition to opening U.S. borders to low-cost Chinese vehicle imports. While acknowledging consumers would buy a $17,000 car regardless of origin, he warned the ripple effects would devastate domestic automotive manufacturing plants and dealership networks across the country. “If Chinese manufacturers want to sell cars in North America, let them buy 850 acres in North Louisiana, invest $4 billion, and build a plant,” Bowers stated.
Addressing the “halftime”
Starting as a single-store operator 11 years ago, Bowers attributes his group’s rapid scaling to staying grounded in core business fundamentals, maintaining checks and balances, and surrounding himself with high-performing operational leaders.
Even with 14 stores on the immediate horizon, Bowers isn’t celebrating, stating that, “Nobody’s sizing rings at halftime.” He notes that every day dealers have to protect what they have and set higher goals since there is always someone out there working to take your spot.
