?? Why the automotive industry needs to change NOW

When I read that Leonie Knipe won Telstra’s WA Business Woman of the Year as the Managing Director and Dealer Principal of Avon Valley Toyota, it sparked multiple emotions.

The biggest one was joy so I want to congratulate Leonie for her win as I know her success would not have come easy.

For those who are familiar with this world, being a Dealer Principal is like summiting Everest.

Still holding a great deal of affection for this industry, I started to question how far the automotive industry has come in the last 10 years, or even in the last 3 years since I left.

The honest answer is not far at all.

I started with AHG in 2008 when there were 0 female Dealer Principals in WA (within the group) and in 2019, nothing has changed.

DVG hasn’t done much better either.

In a somewhat hostile takeover, AP Eagers has made an offer to AHG shareholders they can’t refuse and even they, only have 1 female on their Board.

Essentially, Western Australia only has 2 female Dealer Principals in a billion-dollar industry.

This is not good enough.

Change needs to happen and it starts on a granular level.

I debated heavily over whether I should speak my voice, so I craft this article with a lot of respect and love for an industry which gave me so much, but I fear that if it does not change then I hold my concerns with how it will prepare itself for the next decade in the wake of changing consumer behaviour in the way we shop and the inevitable driverless cars.

?????? Firstly, 60 Hour Weeks destroy lives

These retail hours were set in stone way before I was born and certainly before people started to do 90% of their research online.

It might be the second most expensive purchase after the family home, but studies are confirming that 68% of consumers only visit 1.6 dealerships before buying.

This avoidance of physical dealerships is in stark contrast with how much online vehicle research is happening. People are visiting multiple online portals to make their decision before even contacting a physical dealership.

What this means is that instead of hiring more salespeople to service the “walk ins” and getting them to “man the shop” for such ridiculously long hours, it’s actually an opportunity in disguise.

If consumers are walking into your dealership after doing 90% of their research, what it means is they’re ready to buy when they walk in and they’re simply deciding if they want to buy from YOU.

Not sure if you got the memo, but I like to buy from nice people I connect with, not imposters who have been given the Road To A Sale handbook. 

Maybe it’s time to stop hiring so many salespeople and start employing “helpful nice people” who can close so they don’t cannibalise each other’s commission.

If the pie for commission gets bigger, then staff are also more likely to stay.

?????? Secondly, invest in human capital.

Let’s start with the inequitable ratio of women working in management and sales.

Women are GREAT salespeople and even more IMPRESSIVE leaders.

But why are there such dwindling numbers?

Inflexible working hours and a masculine culture are the biggest killers of dreams for women in this space.

Sure, we can make a lot of money and get remunerated fairly for performance but wake up industry – money does not buy happiness.

Flexibility and empathy are the strongest currency in staff retention, both which are free.

The problem with automotive is that the 99% of us who entered the industry never grew up thinking they would work in a car yard. Many fall into it by accident and among them, only a few will excel and prosper.

So often it attracts a transient workforce of misfits which then creates a culture where people are disposable.

We all know it’s easy to replace low calibre people with the same shit but let’s start raising the bar.

How can you soar with the eagles if you surround yourself with turkeys?

The industry’s unwillingness to change means they can’t attract and keep quality staff which is the only way culture can shift.

Contraction in car sale volume, restricted finance income and changing consumer sentiment have all contributed to a struggling industry.

Rather than investing in building bigger, shinier dealerships to attract more foot traffic, let’s focus on investing in human capital – one built on diversity, flexibility and innovation.