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From the outside looking in, auto is a curious industry.

Whether it's the dealership dialect of tech and service or that dealers bring home a variety of makes and models, retail auto is unique. And once you’re in and you’ve caught the bug, it stays with you. That’s the story of Jason Stein. He traces his journey from newspaperman to Automotive New Retail Forum to where he is today at Flat Six Media. And along the way, he shares insights about the reputation of the industry and the speed of change that it’s experiencing.

What we talk about in this episode:0:00 Intro with Michael Cirillo, Paul J Daly and Kyle Mountsier.

4:17 Jason worked as a sports writer in Fort Wayne, Indiana. He covered the Indianapolis Colts, Notre Dame and Indiana University. Eventually he started a car column because there was nothing about cars in the newspaper he worked for.

11:16 The last 2 years have been more impactful than the previous 20 years, according to Jason, in the way dealers have had to shift and grow.

“The last two years have shown that the changes can be even more remarkable than we imagined, not necessarily in a bad way. And actually, the value of the American car dealer is greater than ever. I would argue against the direct selling method, but they've learned to become just better direct sellers in general. And they've learned to connect with their communities in a better way and a deeper way. They've learned how to provide service in a way that maybe they didn't realize before. And you know, now they're more successful than ever.”

14:38 Car dealers have a similar reputation to dentists, for whatever reason. Jason talks about the strides dealers have made to change that reputation and what more they need to be doing.

20:03 The transition to EV is an opportunity for the car dealers to show their value to the consumer. Jason argues that most local shops will not be equipped to service EVs and it will be up to the dealers to be prepared and ready to service those vehicles.

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Connect with Jason Stein on LinkedIn

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When we asked Charlie Chesbrough about the key economic indicators he’s watching…

We expected a completely different answer. Charlie, Senior Economist with Cox Automotive, pointed us to consumer-facing indicators. It was a real reality check moment, and a reminder of what this podcast is all about. It’s about getting everyone, from OEMs, dealers, industry partners, to press in and work together for the consumer’s sake. Charlie also tells us about his journey to the automotive industry and what he has coined “the iPhone-ification of automotive.”

What we talk about in this episode:0:00 Intro with Michael Cirillo, Paul J Daly and Kyle Mountsier.

4:48 Charlie’s first job out of college was as a floor trader at the Chicago Board of Trade. He shares how it was everything you see in the movies, a phone headset on his head and a lot of yelling.

8:59 The iPhone-ification of automotive has become more and more prominent in the last few years, as manufacturers deliver over-the-air updates and changes to existing models to make them more appealing to customers.

13:42 The most important economic indicators are the ones that inform consumer sentiment. Charlie says to watch gas prices and interest rates. 

“We've seen consumer cost confidence has fallen dramatically over the last few months as people get really concerned about inflation. And one thing we know about the US economy is nothing makes people feel worse than seeing high prices at the gas pump that just kills the American consumer. They hate it. It's right in their face every day.”

23:40 Another key indicator that Charlie is watching is the percentage of leasing in retail activity. Before March of 2020, leases accounted for 30% of retail activity. In June of 2022, that number was down to 17%.

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You might not understand where Matt Jones starts in a conversation.

But you’ll definitely know when he lands his punchline. He is a thoughtful and deep communicator, with analogies and illustrations to help drive his points home. He’s all about looking elsewhere to learn and always expanding what is possible. He’s studied consumer behavior and what’s important to them, and the answers might surprise you.

What we talk about in this episode:0:00 Intro with Michael Cirillo, Paul J Daly and Kyle Mountsier.

4:10 Matt takes us into the deep end right from the start by talking about his football career and the importance of using every resource you can find. Of course, he relates it to back to cars.

11:58 Understanding what is possible is important to breaking your own barriers. Matt tells about the salesman in his store who sold 100 cars a month and how that was a barrier that he didn’t break until he got more perspective.

16:34 According to the data Matt sees, we need to meet customers where they are. That means adopting an “and” mindset. Letting digital retailing AND brick and mortar AND social media all work together rather than viewing them in competition with each other.

21:52 Is price the biggest thing that matters to consumers? Matt argues that it's important, but not as important as how the customer is treated in a store.

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Connect with Matt Jones on LinkedIn

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Here’s some numbers for you:

16 rooftops. 25,000 cars. $1 billion in sales. 15 photographers. 3 full-time web developers. 3 graphic designers. And another handful of people handling CRM, data analytics, social media, paid search and more. This is the team that Nathan Hollenbeck leads at Del Grande Dealer Group. He joins us on Auto Collabs to share his story and the things that are working at DGDG.

What we talk about in this episode:0:00 Intro with Michael Cirillo, Paul J Daly and Kyle Mountsier.

5:09 Nathan is a motorhead through and through. He talks about working on cars with his dad and what his favorite car of all-time is.

6:47 Nathan traces his journey in and out of auto in the midst of the 2008 financial crisis.

15:52 Moving from an agency to doing things internally can be hard, and Nathan talks about those challenges.

24:37 We close the interview by talking about some of the things that Nathan and DGDG are working on in the next 12 months.

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Connect with Nathan Hollenbeck on LinkedIn

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Mergers and acquisitions.

You’re seeing it more and more in the automotive industry. In 2021, there were over 750 of them. Alan Haig represents some of these dealers during their recent sales, and so has insights into the state of the industry. He sees the way that the public groups are building for the future and has thoughts on how the local dealers can respond and compete.

What we talk about in this episode:0:00 Intro with Michael Cirillo, Paul J Daly and Kyle Mountsier.

2:35 In 2021, public companies purchased 260 stores for $9 billion. Private dealers bought 491 stores, maybe spending more than the public companies.

5:09 Alan talks about the trend of the public groups acquiring more stores and the bricks and clicks strategy. He thinks that local groups should start planning now how they can grow to compete in 5 years.

11:34 OEMs historically have a lot of control over the location of their stores, and Alan talks about the breakdown of how it works.

18:03 Alan sees a bigger benefit in acquiring that simply cash flow. He sees the massive influx of talent that can happen when acquiring a store or a group.

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Connect with Alan Haig on LinkedIn

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A natural storyteller.

When your family has been in the automotive industry for decades, you’ve seen some things and have some story. Rick Ricart joins the guys to talk about his family’s legacy, how cars and driving are cool again, and NIL deals with Ohio State football. Plus he tells some great stories from his time in the automotive industry.

What we talk about in this episode:0:00 Intro with Michael Cirillo, Paul J Daly and Kyle Mountsier.

5:20 Ricart Automotive has always learned into troublemaking, from when Rick’s grandfather and founder of the company was called an instigator by Automotive New in 1961 to how Rick’s father would write jingles based off of popular songs in the ‘80s and run them as ads until they received a cease and desist letter.

6:46 Rick realized he wanted to be a car dealer when he worked for his dad selling cars one summer during college. That began his journey to where he is today.

12:35 Many people know Rick’s uncle, Rhett Ricart, who was chairman of NADA in 2020. Rick shares an Uncle Rhett story about borrowing one of his cars.

24:15 The NIL (name, image, likeness) rules for college athletes are something that Ricart Automotive takes part in. Rick talks about early adoption and how they saw marketing returns because of that.

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Connect with Rick Ricart on LinkedIn

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How do you respond to a bad customer experience?

Some of us would write a review, or vent about it to our friends and family. But not Slawek Potasz. He’d design a robot to fix the problem. And that’s exactly what he did when he created CarScanner, a photographic robot that replaces a photo booth. From Poland to Canada to Syracuse, NY, Slawek shares his outside perspective on America and the automotive industry.

What we talk about in this episode:0:00 Intro with Michael Cirillo, Paul J Daly and Kyle Mountsier.

4:50 Somewhat ironically, CarScanner and Slawek have a presence in Syracuse, NY, where ASOTU is headquartered. Syracuse hosts a Genius Accelerator for robotic tech companies, and CarScanner is a part of that accelerator.

6:40 The idea for CarScanner started because of a poor car rental experience in Tel Aviv where Slawek was accused of damages to his rental. And so he said, “Shouldn’t there be a better way to do car inspections than with a pen and paper?”

9:12 Slawek is from Poland and he compares the automotive industry between America and his home country.

19:53 CarScanner is a robot that’s deployable in 5 minutes that will do a 360 capture of any vehicle in two and a half minutes, with background removal. It removes the need for a dealership to have a photo booth or a trained employee.

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Connect with Slawek Potasz on LinkedInLearn about CarScanner

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Everything in the automotive industry is about providing a great customer experience.

And someone who really understands customer experience is John Clavadetscher of Outsell. He’s spent years studying consumer shopping trends and how retail is categorizing and marketing to the individual customer. There’s a lot packed into this interview, from helping to grow Cars.com to the “automotive itch.”

What we talk about in this episode:0:00 Intro with Michael Cirillo, Paul J Daly and Kyle Mountsier.

4:45 “The expectations you have outside of automotive frame your expectations within automotive.” John starts with a truth bomb that the guys have to stop and process.

6:23 John talks about the importance of a personalized experience between a retailer and a customer.

“One is, you know, 76% of customers really want to be engaged by the retailer in a one to one customized personalized way. Now, I'm sure that makes sense to this group and to the listeners, but was actually to me was even more fascinating is that close to 81%, or even greater number of people actually have a negative perception of the brand, when they get treated in a very one to many, or when they don't get treated in a personalized way.”

14:03 Auto can be incredibly addictive, and even after leaving the retail automotive industry, John found himself gravitating towards his auto friends. The itch never really left him, and so he came back to help the industry start learning how to have one to one conversations.

20:30 Outsell is a customer data and engagement platform that’s working to build unified customer IDs. It’s a system that has allowed the consumer packaged goods sector to shift over $100 billion dollars annually.

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Connect with John Clavadetscher on LinkedInLearn about Outsell

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Without Ryan Osten, there might not be an Automotive State of the Union.

That’s right. Paul and Kyle were introduced in a marketing room hosted by Gubagoo’s former marketing director, hired by none other than Ryan Osten. Ryan shares the unique ways that Gubagoo is solving problems, and reflects on how chance encounters really can change the trajectory.

What we talk about in this episode:0:00 Intro with Michael Cirillo, Paul J Daly and Kyle Mountsier.

4:56 Gubagoo is all about building inclusion and community. Ryan shares how in 2020, they created a virtual escape room for all of their customers where the goal was to escape the year 2020.

8:00 Seemingly chance events can have massive impacts on your life. Ryan tells the story of Gubagoo and how it started with his father at a shoeshine in the ‘70’s.

12:16 Ryan talks about the evolution of dealership website chat tools and the 3 big leaps he’s seen happen over time.

22:39 Some problems require solutions across the entire stack. Ryan and Gubagoo are trying to bring full solutions to those problems.

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Connect with Ryan Osten on LinkedInLearn about Gubagoo

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Connection matters.

And ActivEngage is all about making a connection, through their chat platform to their TikTok accounts. Carol Marshall, their COO, found her first dealership job as a GSM, coming right from retail. She joins us to talk about acronyms, conversation and what today’s customers are looking for when they shop.

What we talk about in this episode:0:00 Intro with Michael Cirillo, Paul J Daly and Kyle Mountsier.

3:09 Paul and Kyle both remember the first time they learned about ActivEngage’s TikTok account, and particularly a TikTok about the different kinds of people you encounter at automotive conferences.

8:13 Carol was hired right out of retail to be the General Sales Manager of a used car dealership. She talks about what she learned from that experience.

13:28 Listen. Acknowledge. Understand. Guide. Have fun.

24:35 ActivEngage is a product based around real human interactions. All of their chats happen with real human beings and they aren’t scripted. The goal is for the interactions to be as conversational as possible, but this wouldn’t happen without the human element.

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Connect with Carol Marshall on LinkedInLearn about Activengage

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