Issuu

Spring/Summer 2019

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

FROM THE PRESIDENT

the next century begins today I am simply in awe of what Iowa’s automobile dealers have built in the past 100 years. I am not talking just about their association or even their businesses but a very way of life. It was just 11 years after Henry Ford created the Model T that a group of Iowa auto retailers gathered in Des Moines and formed what would become the Iowa Automobile Dealers Association. It was a time when Iowa had few paved roads and in many places cars were considered a nuisance because they scared the horses. The venerable Polk County courthouse had been constructed just 13 years earlier and Iowans were building courthouses evenly distributed across Iowa’s other 98 counties so everyone would be within a day’s horse and buggy ride of government services. Make no mistake, the revolution that happened in transportation in the past century is in large part due to the efforts, foresight, and determination of the men and women who work in automobile dealerships. Automobile dealers were the

We must be just as daring, dedicated, and determined in the next century as those first retailers that founded our industry and the generations that followed.

original “disrupters,” changing a millenia of horse-drawn technology by delivering a modern and continuously improving world where personal mobility and the freedom it provides is within easy reach of every consumer. That achievement is worthy of celebration. It is also worthy of reflection, thought, planning, and, most especially, the application of that unique optimistic and driven initiative that automobile dealers bring to the showroom and service department every day. While this edition of Iowa Auto Dealer is largely devoted to the achievements, successes, and progress made since 1919, it is also a call to action to build on that progress in automotive retailing’s second century. As I read the stories in the pages that follow, I wondered about the column that the person who holds my job 100 years from now will write and the articles that will follow in the bicentennial edition of this magazine, which should hit automobile dealers’ desks in April of 2119. Maybe I should be more worried about my column than hers, but I know that thinking about automobile dealerships of the 22nd century and their owners, employees, and customers is the right thing to do. We must be just as daring, dedicated, and determined in the next century as those first retailers that founded our industry and the generations that followed. It is no small task. Those first dealers created the very concept of car owners. The next generation of dealers figured out a way to keep the business model afloat during the Great Depression and a world war during which manufacturers were not even building cars for retail. The sons and daughters of that generation weathered the existential threat of manufacturer bankruptcies and the financial crisis of a decade ago. Now it is your turn to be a driven, successful, entrepreneurial business phenomenon just like the dealers who went before you. It will take nothing less than that attitude for automobile dealers to accomplish in the industry’s next century the remarkable business success achieved in the first. I am confident that you will be just as vital to the success and vitality of Iowa’s next 100 years as you have been to the past 100. I am honored to work at the Iowa Automobile Dealers Association, the collective voice and coalition of Iowa’s dealer community, and I am excited to see what you all will accomplish and build in the century that begins today.

Bruce Anderson IADA President

SPRING/SUMMER 2019 1

in this issue

1111 Office Park Road West Des Moines, Iowa 50265 p: 800.869.1900 CHAIRMAN Jeff Haun VICE CHAIRMAN Mike Clemons PRESIDENT Bruce Anderson SECRETARY John Gookin TREASURER Jeff Finch IMMEDIATE PAST CHAIRMAN

Jim O’Halloran

DIRECTORS AT LARGE

Kris Kramer, Danny Wilson

HEAVY DUTY TRUCK DIRECTOR

departments

INDEPENDENT DIRECTOR

Jon McCoy Dale Finch

DISTRICT ONE DIRECTOR

Dave Wright

from the president It’s the start of a new century.

DISTRICT TWO DIRECTOR

Patrick Eads

DISTRICT THREE DIRECTOR

Matt Brown

DISTRICT FOUR DIRECTOR

Carey Kemna

q&a Why be part of IADA?

NADA DIRECTOR Jeff Weber

iad foundation Supporting automotive education in Iowa for more than 20 years.

five things Hear from memorable members of Iowa’s auto industry.

pro tip Get the most out of your auto auction experience.

the close Looking to the future.

2 IOWA AUTO DEALER

features

100 years of stories Looking back at some of the people who made the industry what it is today.

centuries of success These dealerships have had what it takes to succeed for more than 100 years.

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Q&A

return on investment

Three past chairmen discuss why the association matters.

Q: A:

Why is being part of IADA so important for dealers?

The Real Value of IADA: The things we take for granted. IADA does such a superb job looking of IADA? Who among us could monitor out for our best interest, we take many and lobby the legislature to advocate and of their functions and accomplishments explain our issues? Who would stand for granted. Where would we be up to our manufacturers when policies without the franchise laws passed by adversely affect our business? I sold my first car in 1959 on a part IADA? What about their monitoring and communication of EPA regulations, counter ticket. It was a different world. hour and wage laws, employment issues, We are here today in no small part because recordkeeping requirements, sales tax, and of IADA. licensing concerns? What would our legal bills be if we had to call our lawyer for an K. VINJE DAHL, JR. interpretation or explanation of some law Dahl Ford of Davenport or regulation if we didn't have the advice 1996 IADA Chairman

IADA’s mid-nineties leaders: 1995 Chairman Don Pierson (back left), 1996 Chairman Vinje Dahl (back right), 1994 Chairman Stew Hansen (center), former IADA President Gary Thomas (front left), and 1997 Chairman Dan Kruse (front right).

4 IOWA AUTO DEALER

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Q&A

This is a very easy yet complicated question to answer. Easy, because I am so appreciative of our membership and what it brings to us and complicated because the Iowa Automobile Dealers Association does so much. In all of my years being affiliated with IADA, I've always been able to pick up the phone and receive factual advice on whatever the question may be. If they don't know the answer to the question, an answer will be coming in a very short period of time. Every year new issues arise at the federal as well as state government level. If it were not for IADA, the membership for the most part would not know what's going on within those branches and therefore adverse legislation could pass without our knowledge. The Association is there front and center to protect the best interest of the Iowa automobile dealer. Currently, they are working diligently to allow each dealer to do electronic titling. The Association works closely with the Iowa Department of Transportation, again in the best interest of its members. There

are even times when the Association works along with the National Automobile Dealers Association to protect its members from overreach by our manufacturers. There are times when we may not understand how to interpret the laws within the state of Iowa. Several times we have asked Gary Thomas or Bruce Anderson to sit down with us and help us understand in detail how the rules governing our business are interpreted. For most people, the purchase of an automobile—either new or used—is the second most expensive purchase of their lives. The members of IADA work to protect that customer to assure them that they are dealing with a reputable dealer within the state. Quality service is also a major part of all automobile dealers. IADA works to assure the consumer those services are done properly and in a safe manner. This could pertain to the service department, parts department, and even the collision center. Finally, it's imperative that we as dealers make sure that the titling,

licensing, and recording of a title is done properly to protect the consumer. The Iowa Automobile Dealers Association works on that as well. RICH WILLIS Willis Automotive 2006 IADA Chairman

“For most people, the purchase of an automobile—either new or used—is the second most expensive purchase of their lives. The members of IADA work to protect that customer to assure them that they are dealing with a reputable dealer within the state.”

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2006 Chairman Rich Willis (right) and 2007 Chairman Phil Weber (left)

Q&A

“IADA is one place (and in my opinion, the premier place) franchised dealers in Iowa of all makes can work together to manage these many issues and their effect 2008 Chairman Bill Colwell (right) and 2003 Chairman Jack Scieszinski (left)

IADA stays at the forefront of issues that affect dealerships and their customers. We’re busy operating our businesses. We don’t have the time or expertise to keep informed on the many, many issues that affect our customers and our businesses. Nor would we have the time, resources, or ability to effectively do much about these issues. We’re generally not good at these sorts of things. Luckily, someone is. IADA assumes that role for us. The IADA mission is to protect, preserve, and increase the value of the motor vehicle franchise system. As dealers, we can find peace of mind because a qualified, reputable association is constantly watching our business environment. They monitor the legislative, legal, and regulatory climate. They watch customer trends and new technologies. They see our industry from 10,000 feet and at sea level. We sleep better because IADA is seeing our business from a view we cannot see daily. When something affects our customers and/or our business, IADA is there evaluating, deliberating, and, when necessary, taking action.

IADA is one place (and in my opinion, the premier place) franchised dealers in Iowa of all makes can work together to manage these many issues and their effect on our businesses. Our dealer-managed organization allows each of us to have a voice in the what, where, and when of our association’s missions and services. I have personally seen and been involved. I have seen these forces at play. Issues, discussion, vetting, collaboration, compromise, and decision-making. All in the interests of consumers and the motor vehicle franchise system. From guiding the original motor vehicle franchise legislation to services provided to manufacturers bankruptcies and a lot more, IADA is involved and looking out for what’s right for consumers and our interests. Our association is well established, financially stable, and well respected. In industry circles, IADA is recognized as a professional leader and pace-setter. The services I have received from IADA and my involvement in IADA over the last 45 years have had a huge hand in our business success today. Many, many

on our businesses.”

issues, situations, and pieces of advice, as well as products and services received have shaped our business. My business would not be what it is without IADA. BILL COLWELL Bill Colwell Ford 2008 IADA Chairman

SPRING/SUMMER 2019 7

IAD FOUNDATION

building a foundation

The Iowa Automobile Dealers Foundation for Education has been helping educate the next generation of dealership employees for nearly 25 years. George White had a vision. The Chevrolet dealer from Ames saw the trouble he and his fellow dealers were having finding service techs to work in their dealerships. He knew that they needed to do something to help attract good workers to the industry. So he came up with a solution: A foundation to provide scholarships and support future techs in their education. “My dad felt very strongly about giving back to the industry which had been so good to him and our family. He also felt that the Iowa auto dealer body as a whole was very fortunate and felt it was important to share those blessings and give back to the community and the industry as a whole,” said Paul White, George’s son and current president of the Iowa Automobile Dealers Foundation for Education. “He was also a very strong believer in getting a good education and in particular getting a formal education beyond high school. I think it was the merger of those two beliefs that sparked the idea to establish the Foundation.” George White of George White Chevrolet in Ames was instrumental in the establishment of the Iowa Automobile Dealers Foundation for Education.

8 IOWA AUTO DEALER

T h e Iowa Au t o m o b i l e D e a l e r s Foundation for Education was established in 1995, but it stalled for a couple years after George White unexpectedly passed away. Harry McMullen of McMullen Ford in Council Bluffs and Charlie Zook of Charlie Zook Motors in Sioux City were among the initial board members who convinced other dealers to contribute funds to the fledgling foundation. “I know my dad may have brought up the idea, but there were a lot of people that got the Foundation going with a lot of hard work and support,” said Paul White. “Without all of that support and hard work from IADA and other dealers the Foundation would have never got off the ground.” Starting with Scholarships In 1998, the Foundation presented seven scholarships to high school seniors. Since that time, the Foundation has awarded more than 200 scholarships to traditional and non-traditional students. “The more kids that get a scholarship

like that, the more techs we’re going to have,” said Stan Moffitt of Moffitt’s Ford Lincoln, who has served on the Foundation board of directors since 1999. “And every dealer needs them, boy, that’s for sure.” As the Foundation gained momentum in the late 1990s and early 2000s, several dealers stepped up their contributions to become major donors and create named scholarships. There are currently 10 named scholarships that can be awarded to students each year, many with specific criteria established by the donor. Awarding both named and general scholarships continues to be a top priority for the Foundation, with as many as 20 scholarships available for the 2019–2020 school year. “They’ve made a really positive impact on helping students get their education or providing financial assistance to students getting their education,” said Mary Cason, executive vice president of the Foundation.

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Two Hawkeye Community College students use the portable vacuum unit purchased with a grant from the Iowa Automobile Dealers Foundation for Education. PHOTO COURTESY OF HAWKEYE COMMUNITY COLLEGE

Community College Contributions After years of hearing from community college instructors about automotive programs’ need for financial assistance, the Foundation found a way to help. “I think the most exciting new program the Foundation has started is awarding grants to schools that have automotive programs,” White said. “By awarding these grants we are helping the schools provide a better experience for their students by giving them some additional resources for items and experiences that their budgets may not be able to provide.” Since the grants began, the Foundation has awarded a total of $67,320 in grant money to 11 community colleges. Grants

have been used to purchase tools from floor jacks to refrigerant recovery machines and to support an internship program and the establishment of a college-level auto tech program for high school students. “The need for financial assistance has increased. I think the structure of the automotive programs in community colleges—their budgets continue to decline,” said Cason. “That’s part of the reason why we do the grant program. Listening to them talk about not having enough money or not getting loaner or up-to-date vehicles that their students can work on... Automotive programs are the first to get slashed.”

Testing Skills Both the Foundation and IADA began sponsoring the annual statewide high school automotive skills contest held at Des Moines Area Community College in 2009. The sponsorship included providing prizes to the winning teams. In 2016, the boards of both the Foundation and Association decided to up the ante by sending the winning team to the National Automotive Technology Competition. It marked the first time in several years a team from Iowa participated in the national competition. And the Iowa teams have been extremely successful, placing 13th in 2016, 6th in 2017, and 2nd in 2018.

“The more kids that get a scholarship like that, the more techs we’re going to have. And every dealer needs them, boy, that’s for sure.” Stan Moffitt 10 IOWA AUTO DEALER

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IAD FOUNDATION

Get Involved

Want to make a difference in the automotive retail industry? Here’s how you can help.

Donate.

Individuals can support the Foundation through one-time or multi-year donations. The Foundation can also be included in estate plans.

Spread the word!

Help recruit the next generation of dealership employees by sharing information about the scholarships. Applications are available from December to March of each year.

Volunteer.

Interested in giving of your time? Contact the Foundation’s Executive Vice President Mary Cason at mcason@iada.com and let her know you’re interested in board service.

Cutting Class

One challenge facing the dealership industry is the lack of automotive education opportunities in high schools. A few years ago, Foundation board member Stan Moffitt went to Boone High School and was dismayed to find out that the school had gotten rid of all the automotive equipment. “I walked back through the school and said ‘Where’s the auto mechanics school?’ ‘Oh, we don’t have that any more. The guy retired.’” The school had replaced it with equipment for a pottery class. “And I said, ‘What the hell can you do with that when you get out of high school?’” Moffitt said. “They needed more money to keep going, so instead of doing that, they dropped it. I don’t know how many schools lack having that auto mechanic program in their school, but a lot of them don’t. They should have, but they don’t.”

12 IOWA AUTO DEALER

Nick Hanson (center left) receives a scholarship from John Gookin (left) of Gookin Ford Sales in 2005. PHOTO COURTESY OF GOOKIN FORD SALES

Continuing Instructor Education In addition to supporting students, the Foundation offers a continuing education opportunity for community college instructors every October. The one-day meeting features breakout sessions for automotive, collision, and diesel instructors, as well as the opportunity for representatives from each community college to speak with the Foundation board and share the challenges facing the programs. Cason credited former IADA President Gary Thomas, who began his career as a teacher, with seeing the need to support the educators. And although the event has changed from its inception, when it was two days complete with product giveaways, Cason said it continues to be well attended by instructors across the state.

Looking to the Future Although the Foundation has made a difference in its first 24 years, there is more to be done. “My goal for the Foundation is that it continues to grow in perpetuity from the appreciation of our current investments and additional donations, so we can continue to help promote our industry and support young people who want to be a part of our industry,” said White. “My hope is through continued growth of the Foundation we can broaden the scope of our support and the amount of resources we can provide.” Cason hopes that dealers will continue to support the Foundation and consider becoming major donors. “There’s still a need out there. The voluntary contribution on the dues statement, we get a substantial amount from that, but we don’t have big major

“My hope is through continued growth of the Foundation we can broaden the scope of our support and the amount of resources we can provide.” Paul White

IAD FOUNDATION

donors coming in anymore,” she said. “I would encourage dealers—it’s a great way to give back to the industry, community, and their employees who are maybe already currently enrolled and looking for financial assistance.” Cason also noted that the industry has changed since the Foundation’s inception, and, as a result, the Foundation has evolved. “The scholarship applicant has changed. There are a lot more nontraditional students than there ever were before. Almost half of our applicants are

not high school students—they’re in their second year or doing a career change,” Cason said. “The industry in Iowa has changed a little bit.” Moffitt hopes to see the number of scholarships awarded increase through dealer and manufacturer support. “All they have to do is give to the Foundation and let the Foundation get more kids to go to school,” he said. For Paul White, who has followed in his father’s footsteps as a leader of the Foundation for more than a dozen years, being involved with the Foundation is an

important way to continue to give back to the industry. “Being a part of the Foundation and getting involved through donating your time and/or resources is a great way to give back to the next generation of the auto industry,” he said. “It is a fun way to stay in touch with what is going on in our industry and it is very rewarding at the same time.”

Paul Thulin (right) of Randy Kuehl Honda in Cedar Rapids and Matt Rist (left) of American Honda Motor Co. present Trey Lantzky with the $2,000 Michael T. Clemons Scholarship in May 2018. Lantzky was enrolled in the automotive technician program at Kirkwood Community College. PHOTO COURTESY OF RANDY KUEHL HONDA

SPRING/SUMMER 2019 13

FIVE THINGS

five things from IADA luminaries

Five notable people from IADA’s history share their messages for Iowa dealers.

14 IOWA AUTO DEALER

FIVE THINGS

Grassroots Contacts Vital for Dealers’ Legislative Success Fifty years ago, the Iowa Constitution was amended to provide for the redistricting of Iowa Senate and House of Representatives districts. Each district was to be compact and contiguous and based on population. Comprehensive legislation was enacted to provide standards for the redistricting plan based on the U.S. Decennial Census. This redistricting plan has worked well, particularly considering the significant migration of rural Iowans to Iowa cities. When I started representing IADA in the fall of 1969, the population of Iowa was just under 3 million. Today it is estimated to have increased slightly to just over 3 million. While this change in Iowa demographics was taking place, the number of dealerships in Iowa fell from 1,011 in 1969 to 286 today. In 1969 there was at least one dealership in every county, but not anymore. Most importantly, IADA has revised its grassroots legislative program in response to these changes to keep it current and effective. There are three requirements for an effective association legislative program: good association leadership and staff, good legislative counsel lobbying at the statehouse for the association, and good grassroots contacts by members with legislators at home. IADA has had and continues to have all three. Its legislative program is effective. IADA leadership, IADA Executives Gary Thomas and Bruce Anderson, and IADA staff have done great work to keep the IADA grassroots program one of the best in Iowa. Legislative counsel/lobbyists from Nyemaster for the last 50 years (now Brad Epperly) have provided continuity. IADA members’ grassroots work is excellent. In 2021, the Iowa Senate and House will be redistricted again. If past trends continue, Iowa’s rural population will

decline, the population of Iowa’s cities and metropolitan areas will increase and its overall population will increase, but not by a lot. Just as IADA’s grassroots program has evolved during the last 50 years to accommodate redistricting and the declining rural population, increasing city population (particularly in the metros), and the declining number of Iowa dealerships, IADA’s grassroots program will have to change to meet the changing requirements. The Senate will still have 50 Senate districts and the House will still have 100 House districts. Each senator and representative will still represent substantially the same number of people, just some districts will be geographically larger and some geographically more compact. But the plus or minus 286 Iowa dealers will still be serving the 3 million plus Iowa population. IADA will work with its members to keep its top-notch grassroots program. Every dealership has a partner, one that has the power to revise, add to, or strike the present rules the dealers operate under: the Iowa Legislature. I cannot overstate the importance of grassroots at-home contacts by dealers with their legislators. Some dealers will have areas of responsibility with multiple legislative districts. Those situations will take more effort, but it’s vital! IADA’s grassroots program in the past has been critical to success on numerous legislative issues. It always will be. Redistricting and changes in Iowa’s demographics don’t change the principles of what’s required for a good successful legislative program. Keep up the good work. JAMES B. WEST IADA Legislative Counsel 1969–2011

James B. West of Nyemaster Goode PC was IADA legislative counsel from 1969 until 2011. He was instrumental in passing the Motor Vehicle Franchise Act in 1970. West was inducted into the IADA Hall of Fame in 2014.

1. SPRING/SUMMER 2019 15

FIVE THINGS

Words of Wisdom

John McEleney was IADA Chairman in 2001 and NADA Chairman in 2009. He was inducted into the IADA Hall of Fame in 2019.

Your employees are your greatest asset. People buy vehicles and vehicle service from people, not necessarily always from dealerships or manufacturers. Your employees are what separates you from your competition. The dealer fraternity is incredibly important. Some of your best lifelong friends are probably auto and truck dealers, many of them possibly competitors. I know many of mine are. We understand and appreciate each other. Support IADA. IADA has created an environment that has been incredibly beneficial to dealers for decades and continues to do so. IADA does remarkably well what dealers cannot do individually. The franchise legislation enacted more than 50 years ago benefits dealers every day.

Support NADA. NADA is one of the strongest, most effective trade groups in the country and has been for many years. Their representation of dealers with legislators, regulators, and manufacturers has tremendously enhanced dealer success and franchise value over time. Smell the roses. Whether your dealership is large or small, the businessrelated demands on a dealer’s time are massive. Make time for yourself and your family. Remember nobody ever said on their deathbed “I wish I had spent more time in the office.” JOHN MCELENEY 2001 IADA Chairman

Dealers are Prepared to Learn from Setbacks

For more than 100 years, Iowa dealers have understood entrepreneurship—the excitement and freedom of having a vision and making it a reality. I had the unique opportunity of observing some of Iowa’s most entrepreneurial individuals for more than three decades. During that time, they shared life lessons on a daily basis. I would like to share a few of my observations from a totally unscientific case study conducted during those three decades. Dealers were quick to tackle difficult conversations that most of us would rather avoid. They could figure out the smart way to divide responsibilities between partners. They throttled successes yet were comfortable when setbacks occurred and learned from them. They recognized their limitations when most of us would just keep pressing ahead. Through hard experience, dealers learned to avoid delays in bringing up the tough issues. The best would move quickly to identify and deal with any problem. They were always ready to react before hitting the wall. During my three decades with IADA, as it is today, the economy was always moving, either up or down. The

16 IOWA AUTO DEALER

Association went from nearly 1,000 members to about one-third of that during my tenure. Over the years, I saw dealers respond by downsizing their operations. They removed ineffective team members, they refinanced, they sold off real estate, they terminated family members, they merged with another dealer… All tough decisions. The one thing dealers understand is that change is constant. Bottom line: Today’s entrepreneur u n d e r st a n d s t h e exc i t e m e n t a n d appreciates the freedom, but today’s entrepreneur also understands that there will always be setbacks and they are better prepared to bounce back and learn from them. It’s my observation that today’s dealer is even better prepared, with more education, a determined resourcefulness, a willingness to listen, and a passion with plenty of business grit. Iowa’s economy will benefit, local communities will benefit, the Association will benefit… but, most importantly, dealer families will benefit. GARY THOMAS IADA President 1981–2011

Gary Thomas was IADA President from 1981 to 2011. He was inducted into the IADA Hall of Fame in 2011.

FIVE THINGS

Truck Dealers Bring Value to the Association In 1999, the IADA Board of Directors, under the leadership of Gary Thomas, made a decision to elect a truck dealer to its board. This change was done for several reasons. First, truck dealers are a natural brother of automobile dealers. They just sell a bigger and heavier product. They have the same inventory and floorplan issues. They have the same warranty collection issues, and they, too, suffer from a technician shortage today. They also suffer from the same legislative and franchise issues to name a few. We are very much alike. Second, I would suggest to you that industry change first occurs with truck dealers before migrating over to automobile dealers. The consolidation of dealerships is a good example. It started a good 10 plus years before surfacing with car dealers. Having a truck dealer to communicate to the board keeps the board abreast of trends that are occurring. Third, the issue of consolidation also raises the issue of fewer dealer principals. IADA used to have 975 dealers in 1972.

Today we have 286 dealers. With truck dealers filling the void, we now have a strong core of leaders to depend on for years to come. Bill McKenna blazed the trail. He was the first truck dealer elected to the board. Bill served six years (two terms) on the board. Since that time, we have elected three other truck dealers to the board. George Grask, Jim O’Halloran and Jon McCoy followed Bill McKenna and each has enjoyed and heavily participated in overseeing IADA. Two of these dealers, George Grask and Jim O’Halloran, have distinguished themselves enough to be elected chairman of IADA by their respective auto dealer board members. IADA needs the input and the leadership of both automobile and truck dealers. Together they can form a strong team able to lead dealers through the multitude of change that is coming down the road.

George Grask was IADA Chairman in 2010 and American Truck Dealers (ATD) chairman in 2006. He was the ATD Truck Dealer of the Year in 1999. Grask was a 2019 inductee into the IADA Hall of Fame.

GEORGE GRASK 2010 IADA Chairman

Communication is Key

Connie Lewis joined the IADA staff when she was just 18. She’s held many different jobs and worn many different hats over the years, most recently as office manager.

I grew up at IADA and throughout my career saw many changes both in the industry and at IADA. I’ve seen us move from pen and paper to keyboard and mouse. Many of the dealers I worked with in the beginning, the good ol’ boys, are no longer here. Many of their children are now owners of the dealerships, continuing a strong tradition of familyowned businesses. I’ve had three bosses at IADA: Al Kahl, Gary Thomas (my mentor), and Bruce Anderson. I still remember walking around Al Kahl’s desk, collating the important messages that we needed to get out to dealers right away. There were many nights we stayed late to make sure dealers heard about what was going on in the legislature. It was so different than it

is now, when computers make it easy to instantly share important updates with dealers. Over the course of my career, I’ve worked with dealership employees holding nearly every position—from dealer principal to runner. If I could share one piece of advice with dealers, it is to remember that communication with your staff is so important. The past years are forever in my heart. Many thanks to Iowa dealers and dealership employees for making my career so very memorable. CONNIE LEWIS IADA Employee 1970–Present

SPRING/SUMMER 2019 17

18 IOWA AUTO DEALER

years of stories SPRING/SUMMER 2019 19

100 YEARS OF STORIES

Thousands of people have been a part of IADA in our century of existence. Countless memories have been made as we worked together on behalf of all Iowa dealers. Here are just a few of the stories about the people who helped make Iowa’s automotive industry what it is today. John Rude

IADA’s first president (whom we now call the chairman) was John Rude of Rude Auto Co. in Marshalltown. He led the association, then called the Iowa Motor Trades Bureau, from 1919 to 1920. Rude guided the Iowa Motor Trades Bureau through a busy initial year, during which the dealers rented office space, hired a stenographer and a staff executive, and began a government relations program that included a continuous presence when the legislature was in session until the successful passage of the highway and motor vehicle bills.

“We should not organize for the sole object of influencing legislation or protecting us against some unjust taxation. We must organize not only with this purpose in view, but with a broader idea of putting our individual businesses on a business basis, which means that we should make money and operate our places in a way which will not invite criticism. If we do this, we need not fear but that we will receive just treatment from every source, as all will know that we are able to protect ourselves.” John Rude, 1919 IADA President

IADA TIMELINE 1931

1919

For the first time, IAMA has members in every county.

The Iowa Motor Trades Bureau (IMTB) is created during a meeting of dealers in Des Moines.

1922

The IMTB changes its name to Iowa Automotive Merchants Association (IAMA).

20 IOWA AUTO DEALER

1927

Iowa leads all states in number of cars per capita.

1937

Iowa’s Dealer License Law, which regulates people engaged in automotive retail, is enacted.

1936

IAMA rebrands itself as the Iowa Automobile Dealers Association.

1942

The War Department of Iowa asks IADA to assist with setting up a maintenance battalion.

100 YEARS OF STORIES

Hummel Brothers

The Hummel Brothers began their dealership in the Beaverdale neighborhood of Des Moines in 1928. Henry (pictured above in the dealership’s showroom in 1932) and his brothers Geb and Bud started the dealership, and three generations of Hummels have continued to grow the business. In its 90-year history, the dealership has had Plymouth, DeSoto, Datsun, and Nissan franchises. Today, Henry’s grandsons Kevin, Mark, and Perry continue to operate the dealership.

1943

IADA holds its first regional meeting. It is so successful, by the end of the decade IADA is holding 18 regional meetings per year and other state dealer associations adopt the concept.

1948

IADA first offers group insurance.

1953 1950

Al Kahl is hired to lead IADA.

1956

IADA Services Inc. is officially established.

IADA begins including associate members.

1956

1964 1958

IADA launches a workers’ comp program.

IADA members travel to Washington, D.C. to lobby on Capitol Hill for the first time.

1960

NADS of Iowa, a warranty service program, launches.

IADA launches the Guaranteed Warranty certificate program.

1967

IADA Services adds a credit life program.

1966

IADA Services adds electronic data processing.

SPRING/SUMMER 2019 21

100 YEARS OF STORIES

The McEleneys: Leo, Warren & John

Over the course of their 102 years in the automobile business, the McEleney family became prominent leaders in both the Iowa and national automotive retail industries. Leo McEleney and his brother, Emmett, founded McEleney Motors in 1914, when Leo was just 20 years old. The November 1921 Motor Trades Bulletin told the story of the dealership’s founding seven years prior. “When they were ready to open their doors, according to Mr. McEleney, about all they had was a lot of ground 50 by 100 feet, with a modern fireproof building on it, a lot of debts, and a lot of nerve. He says they had nerve, because neither of them had ever driven a car, the first one they drove being one they did some work on and took out to test.” By 1921, Leo was serving on the Iowa Motor Trades Bureau board of directors and in 1926 the first dealership expansion took place. In 1929, Emmett died, leaving Leo to operate the dealership alone until his three sons joined him in the business in 1947. In addition to being a leader in Iowa’s fledgling auto industry, Leo served four terms as an Iowa State Representative, holding the position from 1945 to 1953. Leo’s son Warren, took over the family business in 1951. Warren served as Iowa’s NADA director beginning in 1966 and quickly rose to a leadership position, becoming chairman of the national association in 1971. After Warren’s chairmanship concluded he continued to represent dealers nationally

1970

The Iowa Motor Vehicle Franchise Act is enacted.

and internationally, as he held the role of NADA delegate to the International Organization of Motor Traders and Repairers in The Hague, Netherlands from 1972 to 1975. Although he was an active IADA committee member he never led the association and was named the only honorary president in IADA’s history. Warren was Iowa’s first national TIME Dealer of the Year winner, and was included in the initial class of IADA Hall of Fame inductees in 2008. Warren’s son, John, followed in his father’s footsteps. In 1976, John was appointed dealer operator for the GM and Toyota franchises. John joined the IADA board of directors in 1992 and became IADA chairman in 2001. John was elected NADA director in 2003, and in 2009 John and Warren became the first father-son duo to lead NADA, with John serving as NADA chairman during arguably one of the worst periods for the auto industry. John joined his father in the IADA Hall of Fame in April 2019. The McEleney family sold their dealership in 2016, ending more than a century of service to their community and their industry. Although they are no longer dealers, their contributions to the industry will not be forgotten.

LEO

WARREN

JOHN 1989

1981

IADA changes its logo for the second time in a decade.

Gary Thomas becomes IADA executive vice president.

1989

1971

IADA moves to a new office in Des Moines’ East Village.

22 IOWA AUTO DEALER

1983

IADA adopts a new logo.

IADA moves to its current location in West Des Moines.

1994

The first IADA website goes live.

100 YEARS OF STORIES

Thomas B. Roberts

From 1934 until 1964 there was one man who served as IADA’s general counsel: Thomas B. Roberts. Roberts was a Harvard University Law School graduate and a partner in the law firm Brody, Parker, Roberts, Thoma and Harris. Roberts noted in the March 1959 issue of Iowa Auto Dealer that he began working with IADA originally because he needed clients. “I recall that when I was first a p p ro a c h e d a b o u t b e c o m i n g t h e association legal counsel I was told that the principal reason I was being offered the job was that ‘a young lawyer is all the Association can afford.’ Because clients were none too plentiful in those

“Let us make an depression days of the early ’30s I readily accepted the Association’s offer and soon found that this aspect of the job had not been misrepresented,” Roberts wrote. “My modest retainer fee, which was supposed to be paid on the first of each month, was seldom forthcoming on that date. ... I recall that in those early days when Walter Ferrell, who was then SecretaryManager, and I appeared before a group of dealers, Mr. Ferrell would introduce me as the Association’s new ‘general counsel.’ This high-sounding title made up to a considerable extent for the lack of regularity in my compensation.” After Roberts’ death from cancer in 1964, the IADA Executive Committee created a scholarship program in memory of his long service to the industry. The committee planned to award three scholarships each year to assist the sons of member employees who wished to be automotive technicians. Al Kahl, wrote in the July-August 1964 issue of Iowa Auto Dealer that “the scholarships have a triple purpose, that of honoring Mr. Roberts for long service to the IADA, the assisting of worthy young men to attain a technical education in the automotive trades, and the longterm improvement of the quality and capabilities of technical employees of the dealerships.”

association that will be in keeping with the importance of the industry and one that the real automotive men will take pride in belonging to and be glad to support. An organization properly financed that will perform a real and constant service. An organization with a soul.” A. J. Knapp, IADA Staff Leader 1919–1925, 1926–1927

1995

2011

The Iowa Automobile Dealers Foundation for Education is established.

2000

Iowa enacts a manufacturer-ownership law prohibiting manufacturers from obtaining dealer licenses.

2019

Bruce Anderson becomes IADA President.

2008

The IADA Hall of Fame is created with an inaugural class of five members.

2013

IADA celebrates its centennial.

2018

IADA adopts its current logo.

Renovations begin on IADA headquarters.

SPRING/SUMMER 2019 23

100 YEARS OF STORIES

Tour of Duty

Mel White was a Harlan Oldsmobile dealer who served in the Army during World War II. He spent three years in Europe while his wife kept the business going back home. According to the July 1946 Iowa Automobile Dealers Bulletin, “When the war was over, he says he asked permission to bring his jeep back to the United States and that General Eisenhower granted his request because he (Mel) had kept the same jeep through every campaign he was in. “The jeep was issued to him in England with seven miles on the speedometer. He drove it through England, Wales, Scotland, France, Luxembourg, Belgium, Holland, Germany, Denmark, Italy, and finally the United States. It is now doing duty in his business at Harlan, and has 54,000 miles on it. Mr. White says his jeep was in 12 battles, and has five campaign stars, one tire being shot away at St. Lo. Mr. White says he carried in his jeep both Ernie Pyle and Ernest Hemingway to the front for news and photographs.”

Teenage Teachers

Can you imagine sending your teenage daughter to live with customers for weeks at a time in order to teach them how to drive? The granddaughters of dealer Frank Emery shared their story in IADA’s 90-year history book. “F.L. Emery was a good mechanic and ran a garage when he became a Rambler dealer in What Cheer around 1908. According to Frank’s wife, he was the first auto dealer in Keokuk County. Emery’s daughter, Zella Emery (later Kitzman), was the first woman driver in Keokuk County. Once a car was purchased—typically by a wealthier family—teenage Zella stayed with the family for a week or two to teach them to drive.”

Post-War Business Boom

When Bill Cramblit (pictured above) returned from fighting in World War II, he joined his father-in-law, Lester Glover, in the family business. Business was booming and the biggest problem the dealership faced, according to Glover, was making sure they delivered the new cars they received in the correct order that the orders had been placed. “There was a terrific demand for new and used cars; also, we had five sub-dealers to whom we furnished cars. Many, many times we were offered hundreds of dollars on the side above the regular car prices for immediate delivery,” Glover wrote in Fifty Years in the Automobile Business. “We did not accept any of this at any time. This was pressure selling in reverse, and it took a lot of time to explain to a friend or customer why he would have to wait for his turn on the list in the delivery of a car, and then only at the regular price.”

During World War II, automobile production and sales were halted to support the war effort and dealers had to come up with creative ways to stay in business. McEleney Motors kept the business afloat by installing a six-lane bowling alley in what had been the showroom.

24 IOWA AUTO DEALER

100 YEARS OF STORIES Dealers have always been extraordinarily civic-minded, and several have run for or held elected office at the local and state levels. Several dealers have served their communities as mayors, state senators, and state representatives. One, William L. Mooty, was even Iowa’s lieutenant governor from 1961 to 1965.

Oldest Ford Dealer

In 1946, Ford officials recognized a 93-year-old Humeston dealer as the oldest active dealer in the United States. Joseph E. Doze founded his Ford dealership in 1909. According to the Journal of the House of the 54th General Assembly, Doze’s dealership was the oldest distributing agency for Ford automobiles in the Des Moines territory. In addition to being a dealer, Doze was a dedicated public servant, serving terms as Ringgold County Auditor, as Humeston councilman and mayor, and in both the Iowa House of Representatives and Iowa Senate. Doze passed away in 1950 at the age of 96, just a few years after being celebrated by Ford at a gathering of 250 Iowa Ford dealers.

Helping Dealers Survive the Tough Times

The early 1980s was a tough period for dealers. Between 1980 and 1988, IADA membership dropped by nearly 300 dealers, largely due to closures. IADA leaders at the beginning of the decade, including Eddie Elbert (left), Robert Schukei (center), and Willard Loots (right) tackled dealer survival and revival. IADA hosted Dealer Survival Kit seminars in June 1980 and the fall town meetings focused on turning business around in “Revival Workshops.”

Ryal Miller

Ryal Miller of Ryal Miller Chevrolet Co., a Sioux City dealership, was IADA president in 1931, just nine years after his dealership was founded. Miller partnered with Duane Kidder, uncle of Jim Knoepfler, who joined the business as a truck salesman in 1952. The dealership’s name changed to Kidder-Knoepfler in 1965 and in 1979 the dealership adopted its current name, Knoepfler Chevrolet. From Miller to the Knoepflers, the dealership has a strong history of service to the auto industry. Jim Knoepfler’s son Charlie spent nine years on the IADA board of directors, serving from 1991 to 1994 and 2009 to 2015.

SPRING/SUMMER 2019 25

centuries

CENTURIES OF SUCCESS

of success

Only an elite few dealerships have celebrated 100 years in business. 26 IOWA AUTO DEALER

CENTURIES OF SUCCESS

Pritchard Companies

Walter Pritchard was a farmer before he moved to Garner in 1912 and began working in the local auto dealership. The next year, he purchased Garner Auto Sales, which sold Ford vehicles. His five sons, Paul, John, Bud, Harry, and Bob, all worked in the dealership. The dealership flourished with Walter at the helm and Paul by his side. John earned an engineering degree in 1922 and spent a few years as an engineer before returning to Garner. Together, Walter, Paul, and John opened a Willys Overland and Hupmobile dealership in Klemme in 1924—the first expansion of what is today known as Pritchard Companies. In 1929, Paul and John bought the Ford dealership in Britt. The dealership struggled but survived through the Great Depression, with Paul leaving in 1933 to work for the Ford dealership in Mason City. He purchased that dealership in 1936. The business was booming in the 1950s, when Bill, John’s son, joined the family company full-time. Pritchard Companies continued to expand, with dealerships in Britt, Garner, and Mason City, and satellite locations in Kanawha, Sheffield, and Woden. In 1983, the fourth generation came on board, with Bill’s son, Joe, entering the business. Today, Joe’s children represent the fifth generation of the business and the sixth generation, a precocious preschooler named Will (whose first word was “Mustang ”), is already starring in promotional videos with his great-grandfather. One of the things that family members said helps having multiple generations working together is the requirement that they work outside the business for two years before they join the family company. “They don’t feel the pressure of coming back and they also experience jobs that LEFT Walter Pritchard (front right) and his sons launched an automotive empire. John (front left), Bud (back left), Harry (back left center), Bob (back right center), and Paul (back right) helped build the family business. PHOTO COURTESY OF PRITCHARD COMPANIES

Members of the Pritchard family celebrate 100 years in the auto industry at the IADA Spring Board Meeting in 2013.

are out there,” said current dealer Joe Pritchard. “The feeling and sense of entitlement is minimized within our company. ” Joe’s son, Ryan,is one of the fifth generation members who came back to the family business. “One of the big things in working outside of the company as part of the requirements to join is getting perspective,” he said. “It’s really easy to get caught up in the day-to-day and you’re reporting to—you know in my scenario, when I’m trying to report to my manager who also happens to be my dad, the lines get a little bit blurred. And so the beauty in getting outside of the company is you realize that conflict happens in any business, whether it’s your family business or not, and it needs to be handled professionally and appropriately, regardless of whether you’re dealing with your father or your manager or the CEO.” Another challenge facing a business with so many family members involved is keeping family time separate. “It’s very easy to do when a quick thought comes to head and then all of a sudden it leads to a next business question,” said Joe. “But balancing the personal time with the professional time is probably the biggest challenge we have right now.”

Today, Pritchard Companies has six dealership locations along with fleet and commercial, auto parts, and other autorelated divisions. “We’re going to have to adapt to our changing markets. We all know the internet has had a huge impact on our industry, however we believe that we sell relationships not vehicles,” said Joe. He believes that if the company diversifies and isn’t afraid to explore opportunities, it will continue to succeed. Representing the next generation, Ryan knows that the business model is going to be consistently changing, but he places stock in continuing to run the business by their core values. “Doing business the right way will create that foundation to allow us to continue into the next 100 years,” Ryan said. More than five years into its second century, the company employs more than 100 people across its locations. “When we hire our people, we consider them as family,” said Joe. “They know that they carry our reputation when they’re out and about, calling on customers. It’s not easy, for sure, but when you hire and fire and promote on the core values—which are loyalty, relationships first, do the right thing, passion, driven to improve—they carry that message. We pride ourselves on

SPRING/SUMMER 2019 27

CENTURIES OF SUCCESS

“We sell relationships, not vehicles.” Joe Pritchard

Ryan (left), Joe (left center), and Bill (right) Pritchard celebrate the company’s centennial in 2013.

thinking outside the box and taking care of all the relationships that we’ve established through the years and treat our employees like family.” The Pritchards have a long history of being industry and community leaders. Walter served as mayor of Garner, as an IADA director, and in the Iowa House of Representatives from 1941 until his

death in 1946. Paul served as an IADA director and led IADA as chairman in 1946. Joe has served as an IADA director and as a member of Ford’s National Dealer Advisory Board for Commercial Truck Sales. The leadership that has served the industry and their community has also helped the business flourish.

“In the history, if you look back amongst our forefathers, you have to have a visionary in place in what does our company look like for the future,” said Joe. “Obviously my great-grandfather had a vision in 1913 and I think every one of the grandsons and grandfathers and parents have the ability or the instinct to know when it’s time to pass the baton and get the next generation involved.” Passing the baton from generation to generation has provided continuity for consumers in northern Iowa. “We do business with lifelong customers because we’re not going anywhere,” said Ryan. As for the next 100 years, Joe isn’t about to predict exactly how the business will evolve. “All we can do is position the company for the next hundred years,” said Joe. “And that’s what our number one goal is for our employees, our community, and our family, and the rest will take care of itself.”

Gone But Not Forgotten

Several other Iowa dealerships reached 100 years in business before closing or being sold. They are:

ALLEN MOTOR CO. 28 IOWA AUTO DEALER

GROVERT MOTOR CO.

KEMMANN CHE

CENTURIES OF SUCCESS

Barry Motor Co.

When brothers Patrick and Mike Barry first went into business together in 1904, they operated a livery stable. Seven years later they changed their business model from horse-and-carriage to horseless carriage, signing a contract with Ford Motor Co. to sell their vehicles in 1911. In 1914, the Barry’s first load of cars arrived by train. One hundred years later, the dealership still operates in its original location. A fire in 1950 destroyed half of the original building. In the ensuing years, the Barrys have expanded, adding a shop and a second location across the street. But for the most part, the location where residents of Danbury and the surrounding communities come to buy a Ford has remained unchanged in a century. Brian Barry, the fourth generation to work in the family dealership, said technology is the biggest change his family has seen. “Back then, people were getting rid of horses and learning how to drive. I’ve got people coming in, we’ve sold them vehicles—my grandpa sold them vehicles back in the ’40s or ’50s—and now I’m teaching them how to use navigation and have the vehicle talk to them. I show them you can start your car on your smart phone

EVROLET

Members of the Barry family celebrate the dealership’s 100th anniversary in 2011.

and it just blows them away,” Barry said. Barry credits the dealership’s success with exemplary customer service. “One reason you stick around is how you treat your customers,” he said. “You treat them good, they’ll treat you good.” But as for the next 100 years, Barry doesn’t know what to expect. “I don’t even

MCELENEY MOTORS

know 20 years down the road with the way this business is going, what cars are going to be and what they’re not going to be,” he said. “There’s a lot of unknowns.”

SCHALLAU MOTOR CO. SPRING/SUMMER 2019 29

CENTURIES OF SUCCESS

Asher Motor Co.

For ten years before Blaine Asher founded Asher Motor Co., he worked as a salesman for an automotive and hardware supply company. In 1918, he went into business for himself, opening a Dodge dealership in Spencer. Asher quickly built a reputation for himself in the community. He was quoted in the September 1924 issue of American Garage & Auto Dealer, saying: “The continued success of any automobile dealer depends entirely upon the confidence of the public in the dealer. High-pressure sales methods may make for temporary business but, to gain steady customers and to maintain a steadily increasing volume, a dealer must have and keep the confidence of his customers.” And Asher Motor Co. has continued to keep the confidence of customers in northwest Iowa. “We’re most proud of our reputation, for the way we have dealt with and taken care of our customers,” said Clinton Jones, current dealer principal. “We also take pride in our used cars as being a dependable and affordable option. And last but not least, our employees, who we feel are the greatest asset to our company.” Asher Motor Co. has long placed value in the used car business, even before it was considered a vital dealership department. Blaine Asher in the 1920s held yearly used car auctions, described by American Garage & Auto Dealer: “The used cars are offered at auction, the highest bidder taking any particular car. The plan has been a success because Asher’s customers know that the auction is a real auction, that all of the cars are actually sold, and that the company does not ‘ bid in’ vehicles which do not bring full market price. To further the confidence of those attending the sale, Asher has a standing offer of $100 reward to anyone who can prove that the company interferes in any way with the bidding.” The dealership stayed in the Asher family for the first nearly 40 years of its existence, with Blaine and then his son, Robert, running the business. Tragedy struck in 1957 when Robert was killed in a car crash while returning from a dealer meeting in Mason City.

30 IOWA AUTO DEALER

Clinton Jones (center left) celebrates the 100th anniversary of Asher Motor Co. with members of his family.

“Confidence must be sold as well as maintained. A dealer must sell himself as well as his goods.” Blaine Asher in American Garage & Auto Dealer, September 1924 General manager Glen Kahley bought controlling interest in the dealership following Robert’s death, and he and his son, Ken, held controlling interest in the dealership until 2015. Current dealer Jones first began working at Asher Motor Co. in 1961 and by 1964 he had bought out Blaine Asher’s daughters. He and Ken Kahley were partners for more than 30 years, with the Jones family gaining total ownership of the dealership in 2015. Jones is confident that the dealership will continue its tradition of success. “Asher Motor Co. will succeed as it has for the last 100 years, as long as my family

wants it to.” And he’s already making plans for the third generation of Joneses to run the family business. “I have a 10-year-old grandson in Waverly who told me he is going to run Asher Motors someday.”

CENTURIES OF SUCCESS

LEFT Constructed in 1884, the dealership building originally housed a wagon and sleigh manufacturer. TOP The dealership continues to operate in the same building. PHOTOS COURTESY OF SPOERL AUTOMOTIVE

Spoerl Automotive

More than 30 years before Sherrill dealership Spoerl Automotive was founded, the building that has housed it for its entire 102-year existence was built. The long brick building, constructed in 1884, was originally home to a wagon and sleigh manufacturer. Years later, it became a blacksmith shop, and, eventually, the Paul Spoerl Garage. Paul Spoerl, grandfather of current dealer principal John Spoerl, worked for his brother-in-law in the blacksmith shop before eventually buying the building and opening his namesake garage. The dealership’s original franchises were Crow, Star, Dort, and Durant, and in 1928 they added Chevrolet. The dealership, now known as Spoerl Automotive, had a Chevrolet franchise until the bankruptcy in 2010. “It’s getting harder and harder for us small guys to be in business,” said John Spoerl. “One thing that helped us survive is our relationships with customers, and doing business with grandkids and greatgrandkids of people who my grandfather did business with through the years.” Throughout its entire existence, Spoerl Automotive has been a family affair. Paul’s son, David, followed in his footsteps, and

David’s son, John, became partners with his dad in 1981. Today John’s son, Tom, works in the family business with his dad. The Spoerls have seen the auto industry change significantly in their business’ history, but the biggest change has been watching dealerships like them close. “Other than the product itself, I guess

one of the biggest changes that my dad [David Spoerl] talked about and then me, too, is that dealers aren’t small and personal anymore,” said Spoerl. “They’ve gotten so big and large, and customers are just another person that walks in the door. It’s not such a personal, small-town business anymore.”

The Spoerl family, Tom (left), David (center left), John (center right), and Shirley (right) celebrates their dealership’s 100th anniversary at the IADA Spring Board Meeting in 2017.

SPRING/SUMMER 2019 31

CENTURIES OF SUCCESS

Olesen Auto Center

Five generations of Olesens have worked in the family business, housed in the same building in downtown Avoca since 1929. Dealership founder Andrew Olesen started his career as a blacksmith. In 1917, he founded Olesen Auto Center, and 12 years later, the dealership moved across the street, where it has been ever since. “We were growing and it was kind of bulging at the seams when we had the franchise,” said current dealer J Olesen. “But now that [the franchise] is gone, it actually fits pretty well.” The Olesen family, and their business, has seen the auto industry at its best, and at its worst. The dealership passed from Andrew to his son, Chris; from Chris to his son, Herbert; from Herbert to his son, JC; and from JC to his son, J. J isn’t expecting to pass the dealership to his son, who was 14 when the dealership lost its Chevrolet franchise during the manufacturer bankruptcies in 2008. “He loves the car business, loves cars, but honestly, when that whole thing went down with the bankruptcy, losing the franchise, he was really upset about that,” said Olesen. “I think he would love to be in it, but he also knows that its just tough, especially being in a town of 1,700 people.” Olesen said the biggest change—and challenge—to the family business was

32 IOWA AUTO DEALER

the bankruptcies. “Nobody ever saw that coming, that the franchise would go away.” Despite the setback, the dealership has continued to serve Avoca and the customers who make their way south of I-80 for repairs suddenly needed while traveling. “Every day you just wanted to up and walk away. It was kind of like starting a business all over again,” Olesen said. “I lost some good technicians because they wanted to work for a franchised dealer.” Olesen credits the dealership’s survival with following advice from his dad. “That’s what my dad always said, keep the money in the business. That’s one of the reasons we survived. We had banked some money to get us through those tough times. New is great, but we could have gone bankrupt, too, if we would have had a brand new building with brand new trucks and all new equipment. We’ve updated as we needed to and been able to keep up with the current technologies without overspending so to speak.” Olesen doesn’t know what to predict for the future of the business his family has spent a century building. “We’re just going to keep going for as long as we can, and keep up with the training and the technology that it takes to repair the vehicles and keep people on the road.”

CENTURIES OF SUCCESS

Klimesh Motor Sales

January 2, 1913 was a momentous day for the Klimesh family. It was the day, five years after patriarch Robert founded the family business, that they became Ford dealers. And they’ve been loyal to Ford ever since. “It’s kind of in your blood,” said current dealer Bob Klimesh with a laugh. “I think we have blue blood.” Bob is a third-generation dealer, following in the footsteps of his grandfather, father, and uncles. The dealership began in Spillville, in the Old World Inn. Parts and sales took place on the lower level and the family lived above. And it was truly a family business, with Robert’s sons helping run it and taking over the business after their father’s death in 1921. The dealership was destroyed by a fire in 1946 and the brothers made the decision to move the Ford franchise to Calmar. By 1955, Godfrey, Bob’s father, was the sole owner of the dealership, which he operated until 1985, when Bob became the dealer. Bob and his two brothers, Bill and Dave, run the dealership today. The family’s early success meant big things for their community. The Klimeshes were one of the first families in Spillville to have electric lights, powered by a gasoline generator. When it went well, Robert set up a similar generator for the town. “He helped get electricity for the whole town,” Klimesh said. Looking back on the history of his family’s dealership, Klimesh said that the biggest change came from technology, such as the internet and the advancing technology used in the vehicles themselves. “It used to be, if you wanted to buy a car you’d go to your local dealer, and they’d try to find you one if they didn’t have it,” Klimesh said. Now, customers go online and take a look at dealership’s inventories

TOP Bill, Bob, and Dave Klimesh pose with their 100th anniversary plaque. PHOTO COURTESY OF MID-AMERICA PUBLISHING

BOTTOM The dealership has been located in Calmar since 1946. PHOTO COURTESY OF GOOGLE

to find the vehicle they want. And beyond that, the technology in cars has significantly evolved, making vehicles more reliable. “In the ’40s and ’50s, if you were going to go on a 100-mile trip, it was a big deal,” Klimesh said. “You had to take extra parts, and tires, and make sure you had a few extra things to take along. Now, as dependable as cars are, you don’t even worry about checking the air in your tires. You fill the car with gas, get a cappuccino, and take off for Chicago.”

One thing that hasn’t changed, however, is the feeling of providing customers with a product and service they value. “It’s a really fun thing to deliver a new car and see how happy people are when they take off in that new car,” Klimesh said. “You can buy a used car, sure, a used truck, but there’s something about a new vehicle that’s satisfying, knowing they’re happy getting what they wanted.”

Opposite Page TOP The dealership has been in its current location since 1929. MIDDLE A banner in Avoca pays tribute to the dealership, which is the oldest retail business in the town. BOTTOM J Olesen and Tonya Starr-Olesen celebrate Olesen Auto Center’s 100th anniversary. TOP, MIDDLE PHOTOS COURTESY OF OLESEN AUTO CENTER

SPRING/SUMMER 2019 33

PRO TIP

on the block

Optimize your auto auction experience.

PHOTO COURTESY OF ADESA DES MOINES

Dealers have been purchasing and selling vehicles at auction for decades. And while auto auctions continue to provide the same basic services, the advent of new technology has given dealerships new tools to maximize their auction experiences. Follow these tips from leaders of two Iowa auctions to get the most out of your dealership’s experience. Be prepared. If you know what will be at the auction ahead of time, you can make better decisions. “Preview the sale lineup and condition reports before going to the

34 IOWA AUTO DEALER

auction,” said David LaFleur, general sales manager of ADESA Des Moines. Advanced preparation can help keep impulses at bay. “I would do my homework online before I got there so I wouldn’t walk up on a car and impulse buy it and possibly make a mistake,” said Steve Robinson, general manager of Manheim Iowa. Protect yourself. If possible, test drive units before bidding on them, do a post-sale inspection, and purchase optional additional protection on eligible vehicles, LaFleur advised.

Some auctions offer the opportunity to purchase an insurance product that minimizes the risk when buying a vehicle. This can be an especially helpful option for dealerships attending online auctions. “It gives dealers the confidence to bid in a digital world where they can’t touch it, feel it, see it themselves,” said Robinson. Get inventory to the auction as early as possible. For selling dealers, the sooner your inventory is taken to auction, the sooner condition reports are completed and the vehicles are listed online, giving buyers across the country time to view the

PRO TIP

available vehicles. “This opens up the buyer reach from just a couple hundred miles to a couple thousand miles,” LaFleur said. Shop multiple auctions. Look at auction inventories to decide whether it’s worth attending an auction in person or if it makes more sense to attend multiple auctions online. “In a tight used car market at times it makes sense to buy from multiple auctions on the same day because no one auction may have the inventory they need,” said LaFleur. Embrace technology. “There are a lot of tools that would help dealers save a lot of time, but there’s a reluctance sometimes to change and use those tools to be more efficient,” said Robinson. “They could embrace technology better so they could be more efficient with their time at auction.”

Use the data. One of the first things Robinson asks dealers when he visits them is “How do you know what you should be buying?” Robinson recommends that dealers use data to make their auction decisions. “They need to take advantage of more of the data to make smarter, more informed decisions,” Robinson said. Know a vehicle’s value. “Know what a vehicle is worth, and what you’re willing to pay for it,” Robinson said. The more educated a buyer is, the better decisions he or she can make. “Certain cars, it’s better to buy online than in lane. Certain times of year, it’s better to buy certain cars than other times of year,” said Robinson. “Use the data to make those purchasing decisions.” Build your brand as a seller. Sellers who frequently bring cars to auction develop a reputation among

buyers. Robinson pointed to a large, franchised dealer group that has built a brand on selling a vehicle for what it’s worth, not what the dealership has in it. “People buying in their lanes know they’re going to buy at a fair price,” Robinson said. He’s seen first-hand that if two identical vehicles are up for auction at the same time, the seller with the better brand equity will have a better result. Know the auction. “Make sure you understand the rules, the arbitration rules, very well when you’re purchasing vehicles,” Robinson said. He recommended dealers be familiar with what insurance products are available at that particular auction for that particular vehicle, so they can analyze the risk involved with purchasing each vehicle.

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SPRING/SUMMER 2019 35

THE CLOSE

“Used to be is gone. Our business is changing just like our cars are changing. Business conditions will improve and return but not as we once knew them. The form that our business will take is in its embryo state now. The exact form it will take is unknown by us, our manufacturer, or consumers.” – Robert Schukei, IADA chairman 1980-1981

36 IOWA AUTO DEALER

Your road to the future starts here. Supporting the dealership employees of tomorrow since 1995.

You’ve mastered the art of selling cars. What about selling your dealership? Our firm has completed over 87 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