Spring/Summer 2020
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FROM THE PRESIDENT
dealers always find a way Just before each edition of this magazine goes to press, I get to read it cover to cover and add this page. I am usually so excited about the content and so anxious to get it into your hands that what I write for this column ends up just echoing the celebration of automotive retailing that Iowa Auto Dealer is designed to be. I feel that same sense of excitement and am prouder than ever of Iowa’s automobile dealers; however, there is some disconnect this time. That is because the articles, features, and photographs that follow have been in the works since we sent you the Fall/ Winter 2019 edition and pre-date the COVID-19 crisis. Although there may be more urgency behind other communications you are receiving that directly relate to the impact of COVID-19, we made the call at the Iowa Automobile Dealers Association to keep the publication of your Iowa Auto Dealer on schedule. That decision required extra effort and extra hours for an already over-extended association staff, but we did it for some of the very same reasons that you and the
Surviving and thriving in good times and bad is just what you do. It is not always easy. It is not always fun. But it is what automobile dealers always do. You always find a way. You will this time too.
people who work with you in Iowa’s automobile dealerships have been working so hard during this crisis. Of course, we need the urgent communications and essential information updates to deal with the rapidly changing emergency situation. But we also need the regular and normal flow of information to continue. We also need to be reminded that despite the disruption caused by COVID-19, Iowa’s automobile dealers will survive this. In fact, if history is a guide (and I am absolutely certain that it is) Iowa’s automobile dealers will be an integral part of dealing with the situation and will come out the other side of it stronger than before. Just think about the World War II experience. OEMs did not even make cars or trucks from 1942 through the end of the war in 1945 and yet Iowa’s automobile dealerships muscled through. Sure, it was not business as usual but dealers found a way. While the service departments became the primary revenue source, many dealerships became recycling centers for metal and scrap rubber and ventured into other product lines and services to keep the doors open and Iowa’s aging but essential fleet in good repair. I do not doubt for an instant that Iowa’s automobile dealerships and the smart, dedicated, and innovative people who staff them will respond the same way in this crisis. That is because automobile dealers are driven, successful, and entrepreneurial by their very nature. Surviving and thriving in good times and bad is just what you do. It is not always easy. It is not always fun. But you always find a way. You will this time, too. Together with the men and women I work with at IADA, I am determined and excited to be involved in the success of your businesses and this industry as we collectively keep Iowa and Iowans on the road. I hope you enjoy and benefit from reading this edition of Iowa Auto Dealer. Please let me know what you think of it, what you would like to see in it next time, and how IADA can serve you today and in the days and decades ahead.
Bruce Anderson IADA President
SPRING/SUMMER 2020 1
PHOTOS: COURTESY OF MIDWEST DIESEL ACADEMY (TOP LEFT); COURTESY OF O’HALLORAN INTERNATIONAL (TOP RIGHT); COURTESY OF THREE ON THE TREE COFFEE & CAFÉ (BOTTOM LEFT); COURTESY OF KARL CHEVROLET (BOTTOM RIGHT)
in this issue
1111 Office Park Road West Des Moines, Iowa 50265 p: 800.869.1900 CHAIRMAN Mike Clemons VICE CHAIRMAN John Gookin PRESIDENT Bruce Anderson SECRETARY Matt Brown TREASURER Jeff Finch IMMEDIATE PAST CHAIRMAN
Jeff Haun
DIRECTORS AT LARGE
Kris Kramer, Danny Wilson
HEAVY DUTY TRUCK DIRECTOR
departments
INDEPENDENT DIRECTOR
01
06
12
04
08
24
Jon McCoy Dale Finch
DISTRICT ONE DIRECTOR
Dave Wright
from the president Surviving—and thriving— is what dealers always do.
DISTRICT TWO DIRECTOR
Josh VanNess
DISTRICT THREE DIRECTOR
Jason Willis
DISTRICT FOUR DIRECTOR
Carey Kemna
NADA DIRECTOR Jeff Weber EDITOR Brittany Bungert Iowa Auto Dealer (ISSN 2472-2634) is a bi-annual magazine produced for members of the Iowa Automobile Dealers Association. © 2020 Iowa Automobile Dealers Association Cover Photo: Dealer Paul Glendenning has a passion for cars, both in the dealership and on the racetrack. COVER PHOTO BY LINDA FREEMAN
2 IOWA AUTO DEALER
show & tell Free vehicle inspections make the community safer.
five things Workforce Development Director Beth Townsend has a message for dealers.
q&a Discover your digital strategy.
pro tip Don’t miss out on a talented pool of employees.
odds & ends Former dealership buildings feature food and drinks.
features
14
top secret: dealership data Data security and customer privacy should be on every dealer’s mind.
18
a need for speed For these dealers, their love of cars extends beyond the showroom.
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SHOW & TELL
under inspection
From changing light bulbs to installing car seats, a free vehicle check-up keeps cars rolling and connects a community.
Volunteers from O’Halloran International, the Des Moines Police Department, Quality Services Corp., NAPA Auto Parts, and Des Moines Area Community College work together to provide free vehicle inspections. PHOTO COURTESY OF O’HALLORAN INTERNATIONAL
Once a year, volunteers from O’Halloran International, the Des Moines Police Department, and other community groups take over a parking lot at North High School in Des Moines. They fill the empty lot with volunteers and the equipment needed to perform safety inspections on hundreds of vehicles. Tires and fluid levels are checked, wiper blades and lights replaced—all at no cost to the vehicle owners who stop by. The annual Winter Pre-Check was inspired by news of a traffic stop gone wrong. When employees at O’Halloran International heard about the tragedy of an officer-involved shooting following a vehicle being pulled over for a faulty tail light, they were inspired to create an event that would make vehicles safer and bring together police officers and members of the community. O’Halloran International President Jim O’Halloran quickly
4 IOWA AUTO DEALER
connected with Des Moines Police Chief Dana Wingert and the event took on a life of its own. Additional community groups signed on, including Urban Dreams, Quality Services Corp., NAPA Auto Parts, Broadlawns Medical Center, and Des Moines Area Community College’s automotive and diesel programs. As the event has grown, they have been able to add car seat inspections to the list of services provided. “The Des Moines Police received a grant from Uber in 2017 to do this and the first year we had some folks on hand who were trained,” said O’Halloran. “Since that time, the Des Moines Police have trained two or three people and they perform the inspections.” Since the first Winter Pre-Check in 2016, nearly 1,000 cars have been inspected and more than 100 car seats replaced at no cost to families in need. Hundreds of light bulbs and wiper blades
SHOW & TELL
O’Halloran International President Jim O’Halloran (right) celebrates a successful Winter Pre-Check with Urban Dreams Executive Director Izaah Knox (left) and Des Moines Area Community College Director of Community and Global Engagement Ahmed Agyeman (center).
have been replaced, and countless gallons of oil and antifreeze have been added to cars of all makes and models. As O’Halloran International and its community partners prepare for the fifth annual Winter Pre-Check to be held in fall 2020, it’s safe to say the program has made a difference in the community. Des Moines resident Stephanie Renfro was just one of the hundreds helped during the 2019 event. She told local television station We Are Iowa, “I couldn’t believe all that was wrong with this car until I came here. I’m horrible with cars, so just knowing that the professionals are here, it just really—I’m so thankful. There’s no other words to really say.” For O’Halloran, the event has succeeded in helping make the community safer and in building connections between the public and police officers. “I can’t repeat enough about how involved the police department is in all of the activities,” said O’Halloran. “They roll up their sleeves and check/add fluids, change wiper blades, etc. and they are interacting with the community, laughing, shaking hands... It really is a neat event.”
PHOTO COURTESY OF O’HALLORAN INTERNATIONAL
SPRING/SUMMER 2020 5
FIVE THINGS
five things from iowa workforce development director beth townsend
The Iowa Workforce Development Director gets candid about what she would like dealers to know.
1.
We know the need for a skilled workforce, including the high-demand area of auto service and diesel mechanics, is at a critical stage in Iowa. Workforce is one of Governor Kim Reynolds’ top priorities and she led the way with the creation of Future Ready Iowa—a tool to help ensure 70% of Iowans have post-high school training or education by 2025. In addition to Future Ready Iowa, this year she has proposed several new and exciting ways to help employers develop their workforce while expanding opportunities for all Iowans to participate in our economic growth by creating programs addressing barriers that leave many out of the workforce. With sustained low unemployment, we know most employers are having a difficult time filling their skilled positions, including in the automobile industry. There are 1,500 annual openings for automobile and diesel mechanics or related occupations statewide. The starting hourly wage ranges from $12 to $15 depending on demand and location.
2.
Iowa made a big investment in creating a skilled workforce through Future Ready Iowa. This program was passed in 2018 and funded by the Iowa Legislature at $20 million in 2019, both unanimously. One of the key components of the Future Ready Iowa Act is the Last Dollar Scholarship program. This program pays the difference between non-repayable financial aid and the cost of tuition and fees at our 15 community colleges and several private colleges with two-year programs in high-demand occupations. And the program is working! In the fall semester of 2019, more than 6,000 Iowans received Last Dollar Scholarships, an investment of $6.8 million. Most important for your industry, 195 Last Dollar Scholarships were awarded to students in automotive service and technician programs, 136 scholarships were awarded in diesel equipment technology, and 46 scholarships were awarded in farm equipment and diesel technology. We expect to see similar numbers when the 2020 spring enrollment numbers are announced.
3.
The Future Ready Iowa Act also created the Employer Innovation Fund, a first of its kind program that matches public funds to private funds to address barriers to training beyond tuition and fees and help create training programs in high demand areas. A great example for your industry of an employer that leveraged the Employer Innovation Fund to help train its workforce is Midwest Diesel Tech Academy/Peterbilt of Sioux City. They received a $50,000 grant to support the development of a new training academy. Midwest Diesel Tech Academy leaders have identified three goals: “to train new technicians for Peterbilt dealerships, to train existing technicians in the latest in diesel technology, and, in the future, to train diesel technicians for other businesses.” This academy is an outstanding example of what automotive dealers could do separately or together to create a similar training academy.
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Beth Townsend was appointed director of Iowa Workforce Development by Governor Terry Branstad in 2015. She previously served as Director of the Iowa Civil Rights Commission and retired from the Air Force after 21 years of active and reserve duty.
FIVE THINGS
Midwest Diesel Tech Academy instructor Dennis Wallace works with students. PHOTO COURTESY OF MIDWEST DIESEL TECH ACADEMY
4.
Another successful option for training your workforce is registered apprenticeship programs. Many dealers are working with local partners, like their community colleges, to create registered apprenticeship programs. A few are working with local high schools to do the same. Your local high school is an untapped pipeline to create the skilled workforce you need. Registered apprenticeship programs in high schools are easy for employers to create when partnered with local school districts. They provide training and a career path for students as well as help you to meet your workforce needs, now and in the future. An employer currently participating in a registered apprenticeship program with his local high school said he wished he had started doing this years ago and the positive impact on his business’ productivity and morale was as unexpected as it was overwhelming.
5.
Iowa Workforce Development does so much more than administer the unemployment insurance program. We can help you identify and recruit your workforce. We have 15 local IowaWORKS offices and numerous satellite offices around the state, all of which work with employers every day to find skilled workers. We also have access to training programs and dollars that could help expand your potential pool of applicants, including working with the disabled and returning citizens. One other helpful program is Home Base Iowa (homebaseiowa.gov) where you can find and recruit veterans to your workforce. Not only is it the right thing to do, it’s a smart thing to do. Veterans are proven performers who know how to work, communicate, and get the job done. Iowa’s future is bright and we want to keep the momentum going by helping you. Visit our experts at your local office or head online to iowaworkforcedevelopment.gov and futurereadyiowa.gov. Together we can!
SPRING/SUMMER 2020 7
Q&A
next generation advertising Expert advice on establishing a digital strategy.
Q:
Advertising has changed so much with the advent of digital. How do we figure out our strategy?
A:
Car buyers are using digital media more and more to research purchases. Think about how your brand is meeting these potential buyers with ads and content that are targeted and relevant to them. Here are three tips to use as you plan your ad strategy: Be there. Your brand should be where customers are looking, specifically search engines, mobile websites, social media, and YouTube. Go through the process yourself, as if you were looking for a vehicle, and see how your brand shows up—or doesn’t. Each touchpoint is an opportunity to connect with your customers, and showing up gets your brand in the game to be chosen.
SEAN MURPHY Partner Gigantic Design Co. giganticdesign.com
8 IOWA AUTO DEALER
Be relevant. Know your customers. With digital marketing, you can target audiences and tailor content to resonate with your unique buyer personas’ specific needs, behaviors, and tastes. Potential customers want to identify with a product. Showing an ad with a sports car to a young mother is a wasted impression. A photo of an SUV in the mountains looks great, but can seem irrelevant if they live in Iowa. Be measurable. A huge benefit of digital ads is attribution and measurability that allow you to track the return on your ad investment. Create trackable conversion items as much as possible—number of page visits, forms filled out, or phone calls, for example. It’s okay to run “awareness” ads, too. For those, set goals for how many people you want to reach or how many impressions you want to get. The more you measure your ads against your goals and track analytics, the more informed your strategy will be and your ads will become more effective.
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Q&A
A: CHRISTOPHER WOOD Vice President of Client Strategy LOCALiQ Automotive localiqauto.com
JAMES MAURER Regional Director — Upper Midwest LOCALiQ Automotive localiqauto.com
10 IOWA AUTO DEALER
Auto insights and analytics have more in common with the modern-day game of baseball than you might think. In the movie Moneyball, Billy Beane flipped the baseball world upside down using data points to develop a method in identifying top prospects. As a result of taking the time to dig into data analytics, his teams made the most incredible runs for the post-season while spending much less than big-spending teams like the Yankees. We all know those big boys in our industry—sure, they sell a lot of cars, but when you look at their “cost per win” it often exceeds NADA averages by more than double—think $1,200 per car sold! Let’s start with how well you control your assigned market area. In most markets this means retaining between 50% and 65% of the customers buying your brand. Of all the buyers over the past two years in your market, how many of them actually bought from you and how many bought from your competitor? This is your “on base percentage” (OBP). Next, you should determine what your market potential is and how your current performance compares against this. Understanding how your dealership has performed historically can help you identify where you need to focus your resources. We hear all the time about live data, but that’s also like baseball: A guy who bats a career .220 could go four for five in a game, but that doesn’t make him an .800 hitter. He will always normalize to his trends. If your dealership has historically sold at 88% potential it is very likely it will maintain that into the future without making strategic changes. The more actual performance insights you have the more likely you are to stop wasting dealership marketing dollars and make real long term improvement. Monthly performance reports from your OEM or another supplier are great for looking at this week’s box score, but they seldom give you an idea of what your OBP is over the course of the season. If you’re not comfortable with data, find someone in your dealership who enjoys it. (Surprisingly, there’s a bunch of us out there). Or reach out to experts like us, who can provide a complete competitive and market analysis to identify where you should be winning but aren’t. Those insights fuel a marketing strategy custom designed for your dealership.
new. improved.
Welcome to the brand new iada.com.
PRO TIP
embracing inclusivity
Actively recruiting employees with disabilities just makes business sense.
When it comes to hiring new employees, there is a pool of talented job seekers that many dealerships are overlooking: people with disabilities. “Oftentimes it’s not necessarily ‘I want to avoid hiring someone with a disability’ it’s more of trying to help people understand that people with disabilities can do any job,” said Joseph Jones, executive director of The Harkin Institute for Public Policy & Citizen Engagement. And people with disabilities can do any job. A title clerk doesn’t need to be able to walk in order to efficiently process title and registration paperwork. Someone with a hearing impairment can be a dedicated accountant—and potentially serve as a back-up sign-language interpreter if a deaf customer wants to buy a car or have their vehicle serviced. Having a diverse workforce made up of employees with all different backgrounds and abilities can boost your dealership’s productivity and morale. “All of us do better when we have a diversity of thoughts and people and experiences in our workplace,” said Jones. “It gives us an opportunity to see things through a different lens but also
12 IOWA AUTO DEALER
to give voice to things that you may not have thought of, which is also really helpful.” On the Plus Side One of the perks of hiring people with disabilities is that they tend to be loyal employees. “We have data that suggests that people with disabilities have a much lower turnover rate,” Jones said. “That means you lower your cost in training and retraining. They’re very loyal to their work and they’re highly productive in terms of getting work done. I think because oftentimes there’s a lack of opportunity to have some of those jobs, once a person can find a great job that they love they will stick to it.” Another advantage in a diverse workforce is making all types of customers feel comfortable at your dealership. “People tend to gravitate toward places that reflect who they are,” Jones said. “So if a person with a disability, or in my case, a black person, works at your place, I might feel more comfortable going there. I might know that this is a place that’s open to me.”
PRO TIP
Making Accommodations Some people with disabilities do require accommodations in order to do the job, but most accommodations cost nothing to make. Those that do come with costs typically are $500 or less. “We’ve also seen that many companies have found that they were able to easily accommodate people, whether it be a physical disability or if they’re on the autism spectrum or anything in between, with just a little encouragement and understanding that they’re not going to hit the mark 100%. It’s a learning process,” Jones said. The key is not to make assumptions about what kind of accommodations a person might need. “As far as the individual jobs go and working with the individual employee with the disability, let them tell you what they need to do their job,” Jones said. “Because you might overthink it.” One change dealerships can make starts at the beginning of the hiring process. Take a look at your hiring process to see whether the traditional application, phone interview, then an in-person interview makes sense for every position, every time. “It’s being open to new ways of thinking about things, being open to new hiring practices,” said Jones. “It might not be as quick to do your HR practice, to do your typical ‘fill out an application, do a phone interview.’ Because there are people who might not do as well in those sort of structured environments, but it doesn’t mean they can’t do the job you’re asking them to do.”
Recruiting Workers A challenge dealerships might face is getting their job postings in front of a wider range of candidates. “It’s just a matter of making sure that those folks see those jobs, that your process is spreading a web to get applicants outside of your normal pool,” Jones said. That might mean reaching out to vocational rehabilitation programs or independent living centers, which can help connect your dealership with qualified job seekers. Making your dealership a place where someone with a disability wants to work means embracing inclusivity as a core value. “It starts with leadership, starts with the folks at the top setting those values by setting the culture around it,” Jones said. Taking those first steps to create a more inclusive and diverse workforce can be challenging, but the rewards of the results make it worth the extra effort. “It’s okay if you don’t know, or if you have not been exposed to or experience working with people with disabilities,” Jones said. “It’s taking the steps to move in the right direction that really matters. You might not have all the answers immediately, but the inspiration to do it is really how you get started.”
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SPRING/SUMMER 2020 13
top secret: dealership data The modern dealership is a data warehouse, with millions of data points of customer information stored digitally and in paper. Evolving technology and changing laws are putting increased pressure on businesses to properly protect customer information— and the consequences for failing to do so can be catastrophic. One advantage dealerships have in this evolving landscape is that protecting customer information is nothing new— dealers have been doing it for decades and have been regulated by Gramm-Leach-Bliley for more than 20 years. Lock It Up Just because dealerships have been protecting customer data doesn’t mean it’s the same task it was at the turn of the century. “Most dealers are currently doing all the right things with respect to data. What has changed over the last few years is a much broader scope and view of what needs to be protected by the Federal Trade Commission,” said Bradley Miller, legal and regulatory affairs director and digital affairs senior counsel at the National Automobile Dealers Association. Over the past several years, the FTC has been using its authority under Section 5 of the FTC Act, which prohibits “unfair or deceptive acts or practices in
14 IOWA AUTO DEALER
or affecting commerce” to bring enforcement actions against companies for privacy or data security breaches. “This big, broad FTC push has really pushed the boundaries of what’s covered,” Miller said. “What does this mean for a dealer? First, there’s a big misconception for dealers that the only thing they have to worry about is Social Security numbers and credit cards. That’s not the case.” Instead, dealerships should be protecting everything that could be used to identify a customer, from their physical address to their IP address and everything in between. “The bottom line is that if it could identify a customer or relates to a customer, they should take all the necessary steps to protect it,” Miller
said. “Dealers should really take any information that could in any way identify an individual and make sure they’re protecting it in the highest level.” States, led by California, have begun enacting privacy laws that are shifting business requirements related to data. While Iowa does not have such a state privacy law yet, the state does have a data breach law that obligates businesses to notify customers (and, when more than 500 Iowans are impacted, the attorney general’s office) when a breach occurs. “One of the common threads with all these state proposals is they want to give more power to consumers over their information,” Miller said. And even though dealerships
“The bottom line is that if it could identify a customer or relates to a customer, they should take all the necessary steps to protect it.” Bradley Miller
SPRING/SUMMER 2020 15
TOP SECRET: DEALERSHIP DATA
have been protecting data for decades, other now-regulated entities, including manufacturers, have not faced the same scrutiny previously. Iowa dealerships may start to see information policies from their manufacturers with respect to privacy and customer information that require the dealer to take certain actions. Ultimately, dealerships have significant motivation to get this right. “You don’t want to be the dealer with the headline of data breach or privacy issues,” said Miller. “It’s just not good for business.” Plan to Protect “The nature of data is that it is very ephemeral,” Miller said. “If someone accesses it you don’t necessarily always know. It’s not like a car on your lot— if it gets stolen you know. Data can be misappropriated or misused and the dealer may not know.” There are concrete steps dealers can take to help protect that data. A few years ago, NADA introduced a Service Provider Dealer Data Access Addendum for dealers to use with thirdparty service providers. That template, which is available at nada.org/dealerdata, can be used by dealerships and their
16 IOWA AUTO DEALER
“It only takes one unprotected system to infect and compromise the entire network.” Jacob Wittmayer lawyers to meet the dealership’s legal obligations to protect customer data. Dealerships also need to know where customer data lives, what system it is in, how to delete it, what third-parties they’ve shared it with, and who in the dealership can access it. An important partner for helping do this is their IT provider. “Dealerships should lean on their IT providers in the same way dealerships lean on insurance and finance companies,” said Jacob Wittmayer with ACES, an IT managed services provider specializing in dealerships. “Good IT providers will have a much better understanding of IT security and how to address common issues, in the same way that a good insurance company is going to know the best coverage options to protect the dealership’s building, inventory, and employees.” There are small things dealerships can do to reduce data breach risk, starting with passwords. “Everyone hates seeing the reminder to change their password pop up, but it
really is an integral piece of a dealership’s security. Ensure that all passwords and usernames are unique and changed periodically,” Wittmayer said. “Shared or generic passwords should not be used, especially for sensitive data. That means ‘Sales1’ and ‘passw0rd’ are not going to cut it.” Dealerships also need to be vigilant about removing access for former employees as part of the offboarding process. “Disable and delete previous employee accounts as soon as possible and do not reuse a previous employee account,” Wittmayer said. “We see so many dealerships that don’t disable access for employees that no longer work at the dealership. Those previous employees still have the same amount of access they had when they were employed if you don’t disable their account.” Other tips from Wittmayer include: • St a y c u r re n t w i t h u p d a t e s and patches for Windows and
TOP SECRET: DEALERSHIP DATA
“Dealers are used to protecting information. They just need to expand the universe of what they’re thinking about when they think about protecting data.” Bradley Miller third-party applications. Ensure that your dealership is protected by a next generation firewall. • Implement intrusion protection filters and rules on the firewall. • Utilize multi-factor authentication whenever possible. • Make sure uniform and consistent a n t i v i r u s a n d a n t i m a l wa re software is on every computer and server in the dealership’s network. “It only takes one unprotected system to infect and compromise the entire network,” Wittmayer said. •
Plan for the Future “Dealers are used to protecting information,” said Miller. “They just need to expand the universe of what they’re thinking about when they think about protecting data.” Customers increasingly expect to have personalized, data-driven experiences in every aspect of their lives. But in order to achieve that, dealerships need to begin the process now of tracking the storage and access of the data they collect and ensuring that it is protected. That way, when the next state—perhaps even Iowa— enacts a new law regulating data privacy, the dealer will be prepared to adapt what is already in place. Whatever the future brings, protecting a customer’s data is the ultimate customer service—something dealerships promise to deliver every day. “Dealers look their customer in their eye,” Miller said, “and shake their hand and collect this data with either an explicit or implicit promise that they are going to treat these customers right.”
Computers on Wheels Computers have been in cars since 1968, but only recently have cars become able to collect massive amounts of data about their drivers. Did you know new cars can collect: • Location information • Data about driving habits, including steering, acceleration, and braking • Biometric data about the driver • Information from phones paired with the vehicle, including lists of contacts, photos, and the phone’s unique identifier • Road data from obstacle detection cameras and sensors Studies have shown that vehicles can generate as much as 25 gigabytes of data per hour. And while not every car is collecting that much information, dealership service and pre-owned sales departments need to have a plan for what to do with the data they encounter.
The automotive data industry is estimated to be worth $450 billion to $750 billion worldwide by 2050.
SPRING/SUMMER 2020 17
18 IOWA AUTO DEALER
A NEED FOR SPEED
A N eed for Speed Iowa dealers use their love of cars and passion for people to dominate on the racetrack and at the dealership. BY ASHLEY FLAWS
Carl Moyer performs a burnout in his 1992 Corvette ZR1 Pro Modified at Eddyville Raceway in Oskaloosa in 1992. PHOTO COURTESY OF KARL CHEVROLET
SPRING/SUMMER 2020 19
A NEED FOR SPEED
Paul Glendenning (third from right) shares his late model feature win in Winston, Missouri, with his father (center), who began the family racing tradition decades ago. PHOTO COURTESY OF GLENDENNING MOTOR CO.
With his bedroom window wide open and his two brothers crammed next to him on the bed, Carl Moyer spent the summers of his youth listening to the roar of race cars, dreaming of the dirt track that was just out of sight, but never out of mind. A seed was planted all those summers ago, before being behind the wheel became real. Decades later, Moyer, owner of Ankeny’s Karl Chevrolet and 10 other automobile businesses, is well known at racetracks all around Iowa and around the country.
It was a career his younger self never could have imagined. Several world championships. Multiple track records. The ride of a lifetime. So, when he had to hang up his helmet four years ago to recover from a knee replacement and open heart surgery, his lifetime dream seemed to be in the rearview mirror for good. Until it wasn’t. At 78 years old, Moyer is planning his return to the speedway this year. “I just got the bug,” Moyer said. “I’m getting too old to even
“I’m getting too old to even be thinking about doing this, but I can’t get it out of my mind. I have to think about it every day. It’s just one of those things. If it’s in your blood, it’s in there. As long as I can, I’m going to be involved in it one way or another.” Carl Moyer
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A NEED FOR SPEED
be thinking about doing this, but I can’t get it out of my mind. I have to think about it every day. It’s just one of those things. If it’s in your blood, it’s in there. As long as I can, I’m going to be involved in it one way or another.” In Iowa, this racing “bug” isn’t uncommon. Moyer is just one of several Iowa automobile dealers who have found success from the dealership to the dirt track. Gearing Up Brad Deery of Deery Brothers Automotive Group grew up with a much more intimate connection to the racetrack. His family owned and operated a quarter-mile asphalt racetrack in Rockford, Illinois. While he’s never competed behind the wheel, he’s taken on just about every other responsibility associated with the track. From slinging hot dogs and hamburgers in the concession stand to waving the checkered flag, Deery became well acquainted with racing at an early age. “It was a great training ground to get in the automobile business because my dad used to say, in the racetrack business, you throw your watch away and look at your calendar,” Deery
“NASCAR had a phrase: ‘Win on Sunday, sell on Monday.’ And we parlayed that into our small dealerships in small Iowa towns.” Brad Deery said. “I think that was good premise for the car business because the car business is a lot of hours, so sometimes it’s just better to throw your watch away and look at the calendar. That was a great training ground, as both are hard work, but they’re both equally as fun, too.” When he left the racing business at age 24 to pursue a career as an automobile dealer with his uncle John Deery in Iowa, it wasn’t something either of them could entirely shake. In 1986, only one year after making the move to Iowa, Deery and his uncle formed a sponsorship package with the International Motor Contest Association (IMCA). The Deery Brothers Summer Series
Larry Clement purchased Jeff Gordon’s 1995 Monte Carlo in 1998 and sponsored driver Frank Kimmel’s run in the car until 2001. The car has since been restored to reflect Jeff Gordon’s original design. PHOTO COURTESY OF LARRY CLEMENT
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A NEED FOR SPEED
Bob Hill, driving #46 sponsored by Larry Clement, spins out on the last lap in a 1996 race at the Daytona International Speedway. The photo was published in multiple news outlets across the country the next day. PHOTO COURTESY OF LARRY CLEMENT
went on to become one of the longest running racing series in the country, concluding its run in 2019 after IMCA sold the series to an Omaha racer. While Deery is sad to see it go, he’s thankful for the connections it has created over the years. “Cars are adored by race fans because they like racing, so that was a segue into maybe selling a car to a race fan that saw a Camaro on the racetrack Saturday,” Deery said. “NASCAR had
a phrase: ‘Win on Sunday, sell on Monday.’ And we parlayed that into our small dealerships in small Iowa towns.” The common denominator, as Deery points out, is a love of cars. But that isn’t the only thing connecting the dealership and racing professions. Racing is a people pleasing sport, and automobile dealers know a lot about pleasing people.
“It’s not just the enjoyment we get from the racing. It’s the friends and memories that are created along the way. Those friends and race fans become customers, and that helps perpetuate the whole idea behind the promotion of the dealership. Paul Glendenning
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A NEED FOR SPEED
The Wheel Deal Iowa Racing Museum Hall-of-Famer Larry Clement, former dealer at Clement Motors in Fort Dodge, credits his love of people for his dual passions in both racing and selling automobiles. While Clement has many accolades under his belt, including the 2010 Great American Stockcar Championship as a driver and 75 wins in the Automobile Racing Club of America series as a sponsor, the memories he has made and the people he has met along the way stand out the most when he reflects back on his successful career. “Selling cars, running a dealership, it’s all about people,” Clement said. “You work hard and you treat people right, you’re going to be successful. It doesn’t matter what you’re doing… [It’s] a great way to entertain customers, taking them to the racetrack, getting them down to the garage area, meeting drivers, getting autographs.” Paul Glendenning of Glendenning Motor Co. in Mount Ayr shares this same sentiment after 34 years of racing in the late model division around the Midwest. “It’s not just the enjoyment we get from the racing,” Glendenning said. “It’s the friends and memories that are created along the way. Those friends and race fans become customers, and that helps perpetuate the whole idea behind the promotion of the dealership.” Whether it’s that new car smell or the exhilaration of a revved engine, dealers dually involved in racing have the unique opportunity to reach a loyal fan base who already share a love of cars. And, as many dealers know, this love is deep-seated, often shared across generations.
devote as much time to racing, but he looks forward to competing on a limited schedule in the upcoming season. Moyer is on the opposite side of that equation, having passed down his love of racing to his son Bret Moyer, who now manages Karl Chevrolet full time. It’s been several years since a Moyer started their engines and dominated on the track, but Moyer hopes that will change this year after his triumphant return to the speedway. Whether racing is a legacy passed from generation to generation, or an itch that just can’t be scratched—a bug that just can’t be cured—it’s clear that many Iowa dealers are passionate about what they do, both inside the dealership and in the community at large. The desire to win, a passion for people, the love of the automobile. As these Iowa dealers have proven, it’s a recipe for success. And Moyer, for his part, is hungry for more. The little boy at the window isn’t ready to stop listening to the roar of a race car quite yet.
Born to Ride For Glendenning, racing and selling automobiles have always gone hand in hand. His father established Glendenning Motor Co. 67 years ago and began his own racing career shortly after. When Glendenning started racing in college, his dad knew he had a hook to bring him back into the automobile business. A love of cars and a competitive spirit serve a dealer just as well as a racer. As far as Glendenning is concerned, racing is another business tied to his success as a dealer. “It’s a business that you strive to be successful at,” Glendenning said. “At the level we’re doing it, it’s too expensive to just kind of do it as a hobby… There’s a lot of time and a lot of effort, and everything changes at such a rapid pace anymore. It’s a very labor intensive pastime.” With his father residing in a nursing home, Glendenning has had to step up more at the dealership and hasn’t been able to Carl Moyer celebrates winning a 2012 Dirt Truck Racing Association race in victory lane at the Iowa State Fair Speedway. PHOTO COURTESY OF KARL CHEVROLET
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ODDS & ENDS
familiar facades
Gone but not forgotten, historic dealerships with decades-long runs have new things brewing in the 21st century. BY ASHLEY FLAWS
Uptown Garage Brewing Co. Ankeny The 20 th century home to Ankeny Motors Inc. and later Miller Repair and Auto Service, this modern taproom pays homage to its original hosts with vintage automobile decor. From the mural featuring the old Ford dealership to the numerous authentic auto, gas, and oil signs, dealers will feel right at home—especially on Sundays, when automotive industry employees are treated to happy hour specials. Choose from 36 beers on tap, and raise a glass to the good old days.
Peace Tree Brewing Co. Knoxville Peace Tree Brewing Co.’s signature Red Rambler American Red Ale has been a best-seller since 2010, when the brewery revitalized the old Nash Rambler dealership in downtown Knoxville and created the now beloved beer to honor its namesake. Tour the 40-barrel brewing facility and sample from 24 draft beers on tap, including the 4 Wide Wheat that is sold each year to promote the Knoxville Nationals racing event.
Three On the Tree Coffee & Café Mason City Fuel up on coffee and fresh-baked goods in the former home of Hart Motors-Dodge Plymouth. Now a cozy café, Three on the Tree stays true to its roots by maintaining the industrial atmosphere of the dealership. Large photographs of the 1930s dealership line the walls, and plants are nestled into hub caps next to antique gas cans. Ask for their signature scones or try a specialty gluten-friendly monster cookie alongside a gourmet cup of joe. Torrent Brewing Co. Ames Though much of the brewery’s space has been remodeled since the run of Mathison Ford Ltd. through the 1980s and Mathison Auto Body into the 21st century, the original L-beams and pulleys that once served as engine hoists remain prominently in the building’s structure. Get a team together for trivia night hosted a couple times each month and enjoy access to 18 tap offerings plus local wine options.
PHOTOS COURTESY OF UPTOWN GARAGE BREWING CO. (TOP LEFT), PEACE TREE BREWING CO. (BOTTOM LEFT), TORRENT BREWING CO. (BOTTOM RIGHT), THREE ON THE TREE COFFEE & CAFÉ (TOP RIGHT)
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Woodward & Associates, Inc.
1707 Clearwater Avenue ·P.O. Box 1584 ·Bloomington, IL 61702 (309) 662-8797 ·Fax (309) 662-9438 ·Email woodwardassoc@cpaauto.com ·http://www.cpaauto.com Providing service to Iowa dealerships and their related entities. We specialize in automobile dealers in the following areas:
Certified Public Accountants
Memberships in:
Dealership valuations Automobile dealer legal support Buy-Sells for dealerships LIFO inventory computations Financial statement analysis Corporation Income Tax returns Personal Income Tax returns CPA prepared financial statements Dealer estate planning Employee theft consulting Internal control studies and audits Profit consulting Training office managers/CFO’s 401K Audits
AUTOCPA Group The American Institute of Certified Public Accountants Licensed to practice in Iowa
Serving more than 250 Automobile Dealers throughout the United States
You’ve mastered the art of selling cars. What about selling your dealership? Our firm has completed over 100 dealership buy/sell transactions throughout the Midwest and beyond. When you consider the importance of these transactions, you want us on your side of the table. See how you can put our experience to work at Arenson Law Group, PC. Gold Sponsor of IADA and longtime member of NADC
www.arensonlaw.com info@arensonlaw.com | 319-363-8199 Left to Right: Michelle Arenson; James “Jim” Arenson; John Hofmeyer IV