SPOTLIGHT ON Charles D. Prater started a yearlong term as Chairman of the Georgia Automobile Dealers Association Board in July 2023. He has been an active and engaged member of GADA for years and has served in a number of board positions, including Committee Chair, Secretary, Treasurer and Chair-Elect. He is also the President and General Manager at Prater Ford in Calhoun, GA. Charles and his wife, Angie, have three children, Charlotte, David and James. James recently started working at Prater Ford and is a fourth-generation Prater in the business. GADA recently sat down with Charles and got to know more about his thoughts on the current state of the industry, what he’d like to accomplish as Chairman and his life. We would like to thank Charles for his time. The following are excerpts from our conversation. We hope you enjoy getting to know more about him as much as we did. What are the biggest issues facing the auto industry? Excessive federal mandates and the effect it has had on the industry is a big issue. It has raised the cost to the consumer. With the Corporate Average Fuel Economy (CAFE) requirements, motor companies have to get a certain average fuel economy for all vehicles they sell, and that’s pushing us down the road into electric vehicles, which is not a bad thing, but there are so many additional federal mandates. These mandates are good to a degree but are often pushed to the extreme. There needs to be a balance. Inflation and high-interest rates are a big challenge right now. They have caused the price of vehicles to go up so much, both new and used. Just a few years ago, interest rates were between 3-4%; now they’re 6-8%. This increase has impacted car prices along with dealers’ increased rates on floor plans. It’s a challenge. How do you think the industry will change in the next 3-5 years? Economists are predicting a recession over the next year or so. That will obviously be a big hurdle for the industry. But whenever the recession passes, I expect relative stability in the market. There is pent-up demand among consumers. Production is up, and customers will get used to paying the higher interest rates. Combining that with motor companies offering subvented rates, the market will settle over the next few years. EVs will be a big piece of the retail business; there’s a growing market for that. But internal combustion engine (ICE) vehicles will continue to make up a majority of sales for dealers for the time being Additionally, I expect to see more domestic production of vehicles and domestic production of parts in the future to hedge against production and supply chain issues. Why is the franchise system still the best way to sell cars? Some motor vehicle manufacturers have tried to open up dealerships themselves to sell directly to consumers. Manufacturers that have tried this have realized that the retailing and service end of the business is best handled by the franchise system. To me, it is the best way to go for consumers. 2023-2024 GADA Chairman CHARLES PRATER THE GENERATOR 4
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