Publication1 2021 Issue 1

23 KENTUCKY AUTO DEALER everything. He gave me a thirst for knowledge and a love of reading. You can’t have a better gift than that.” Although Bud’s dealership went out of business, he stayed in the industry and ultimately went to work for Bob. Bud died in 2015. Both men encouraged Steve to follow his passion and gave him the freedom to make his own decisions. “They supported me and gave me credit when the decision was good and counsel when I didn’t exactly do the right thing,” Steve said. “I think I just learned from example.” Association Benefits Steve credits KADA with teaching him the importance of working with the government. As Steve puts it, successfully operating a dealership takes more than great people and great cars. A dealership’s destiny is often in lawmakers’ hands, so dealers must be knowledgeable, conversant, and willing to talk to legislators and teach them something about the business. That reality is what first drove Steve to get involved with KADA and, later, AIADA. In 2009, Toyota was falsely accused of building cars with sticky pedals that caused people to accelerate unintentionally. As reported by MalcolmGladwell, the problemwasn’t the cars or their pedals. People thought they were pressing the brakes because they were unfamiliar with the cars they were driving or were confused. Instead, they were flooring the accelerator. “Toyota dealers didn’t have the relationship they needed with legislators to get support, locally or on the federal level,” said Steve. “That was sobering. Whether or not legislators would have agreed with our position, at least we could have talked. But I couldn’t reach out to anyone who would listen to me.” KADA has benefited Steve in other ways, too. “KADA offers a lot for its member dealers,” said Steve. “Its help is not limited to government outreach. They become a great partner. They offer classes, they have a fabulous legal staff, and they just really understand our business.” He sees associations like KADA as indispensable to the industry’s success. It is a full-time job to keep up with the legislature and regulations being implemented by commissions and different government branches. “KADA doesn’t just monitor; they also interpret what is happening, so we know how to react,” said Steve. The Pandemic The pandemic affected Steve personally. Starting Dec. 26, 2020, and through the end of January, Steve was sick and was hospitalized for 12 days. “I am an evangelist for social distancing, masks and the vaccine,” he said. “But I can’t get vaccinated yet. It would put me back in the hospital, and right now, I don’t even drive by the hospital because I don’t want to be in one.” On a professional level, Steve said he and other car dealers learned a lot. The first hurdle was doing business online and virtually. Dealerships went the extra mile on keeping facilities clean, had a heightened awareness of personal hygiene, and employees learned how important they were to each other as an organization. “Nobody knew early on what the chances of survival were for our industry,” said Steve. “We had to rely on one another more than ever before. As the pandemic subsides, we can’t forget the lessons we learned about taking care of one another.” As the pandemic ends, Steve is concerned about interruptions to the supply chain. For example, semiconductor shortages affect manufacturers who are building car computers, and petrochemical shortages mean there isn’t enough foam for new car seats. Inventory shortages inevitably result. In contrast, dealers are in a fabulous position to have a great year because of pent-up demand. “People have been saving money, interest rates are low and there is a lot of new technology in vehicles. The new technology makes them safer,” said Steve. “People are anxious to be able to buy new cars and to get out for personal interaction. We sold cars virtually during the height of the pandemic, and that will be a component of our business forever, but we’ve missed the social component in our lives. People say they want to ‘get tires,’ but they actually want to visit.” Before the pandemic, people were talking a lot about car sharing. That’s gone away, but the underlying reasons for it have not, such as reducing pollution and freeing up land in high-density cities. Steve thinks it will be a long time before car sharing becomes important again. “In smaller communities, people want personal transportation. It seems to have been more important in big cities with very dense populations,” said Steve. “I have three millennial daughters with young children, and I am pretty sure that after the pandemic, they will never consider car sharing. It doesn’t make sense to them.” The Auto Industry’s Future As Steve looks at the auto industry’s major upcoming changes during the next 5-10 years, he is concerned that some manufacturers CONTINUED ON PAGE 24 KADA HAS BENEFITED STEVE IN OTHER WAYS, TOO. “KADA OFFERS A LOT FOR ITS MEMBER DEALERS,” SAID STEVE. “ITS HELP IS NOT LIMITED TO GOVERNMENT OUTREACH. THEY BECOME A GREAT PARTNER. THEY OFFER CLASSES, THEY HAVE A FABULOUS LEGAL STAFF, AND THEY JUST REALLY UNDERSTAND OUR BUSINESS.”