Publication1 2021 Issue 1

26 KENTUCKY AUTO DEALER At the same time, the business model won’t stay the same. “If BEVs represent the majority of our sales, we will be more reliant on gross profit on sale as opposed to negotiation because income from parts and service may decline. We may have to go to one nonnegotiable price where the only variable will be the trade-in value,” he said. “Direct-sale manufacturers like Tesla will have a hard time with that because they don’t do well on trade-ins, leasing or finance options.” Diversity Steve’s family is doing its part to increase industry diversity. Two of his daughters are in the business. “It’s a start,” he said. “They are so much smarter than I am, and they have found a work-life balance that I was never quite able to work out. They accomplish a lot more in a shorter day than I did and do.” Steve thinks dealership employees should look like the people they serve. That has been a difficult goal because it is tough to recruit women and people of color, especially in small communities. “That’s a real big challenge for me and our industry,” he said. “I will just keep working on it.” Technician Shortages Steve recognizes how hard it is to find and retain technicians. “Being a technician is a tough job,” said Steve. “The work is hard on the technician’s body. You have to stand on concrete and lift heavy tires quickly. I can barely do that slowly. Also, you have to master the electronic side. At the beginning of my career, everything was mechanical. Now the electronics almost require a Ph.D. It’s a very complicated profession, and the shortage is absolutely a concern.” The shortages aren’t limited to technicians. “We’ve pushed too hard for the white-collar jobs,” said Steve. “All the trades have the same issues: HVAC, plumbing and electrical. I understand it in theory, but in reality, what a mistake.” Manufacturers are working with dealers to find technicians, but the only successful way to solve technician shortages is through mentoring programs that recruit men and women. “Some dealers make the mistake of always looking for guys,” said Steve. “We hire people at a little higher pay scale than the Jiffy Lube around the corner and have them start by changing oil. If they do their job well, we take the responsibility to train them over time until they become a full-fledged master technician.” One key part of the mentoring program is buying the tools for dealership technicians. That helps; it’s no secret the tools are extraordinarily expensive, and not everyone can afford them. The Biden Administration Steve is still unsure about the direction the Biden administration will take, but he thinks it will reenergize the Consumer Finance CONTINUED FROM PAGE 25