Brad Mugg on EVs and The Future of Dealerships
Transcript
Sean : All right, so this is the Nostradamus section of our webcasts where I want to ask you, Brad, to predict the future. And clearly, you’re doing a pretty good job of forecasting and adapting to the market situation. And you’re in California. So this will be an interesting part of the Convo for you, west coasters. So the EV initiative appears to be in full swing. I just saw some crazy news today where Ford actually had taken a pretty big bloodbath as a result of, you know, investing in an EV company that has been struggling to, I guess, produce yet, but a lot of people have challenges affording EVs I think there’s some infrastructure challenges around where can I get charging stations? And, you know, which dealers have those charging stations, things like that. So it seems as though like the powers that be are driving gas prices up. So there’s a lot of speculation around that. I’m not a conspiracy theorist, but, you know, to facilitate this changeover is this conspiracy or truth? And will the car dealerships as we see them now still be in play in five years?n
nBrad : Okay, so Yeah, we’ll definitely be here in five years, for sure. Yes, we’re definitely gonna do electrification, everybody is, you’re definitely right, infrastructure is not going to be there. So it’s going to be a big, big challenge, in my opinion. I think the next year and a half, like I said, You’re gonna have two years is gonna be very, very similar to what it is today. But I also think, you know, two years from now, and three years from now, we’re not going to have all of those trade-ins, because we the manufacturers didn’t build them. n
nSo rather than fewer vehicles for trade-ins, the inventories for us will stay tight, which will gradually gravitate those customers, if they can’t find that used car, they’re looking for a two, three year old Honda, for example. Where do they go, they gotta go to a new one, which is going to even push the new car volume more. So it’s going to be fun and interesting to see where we go here. But Honda’s you know, one of the last, last ones that jump on the all electric bandwagon. But you know, they’re definitely doing it. They’re just, you know, slower, slower to the party. But it’s definitely I can see, I can see that it will be all electric vehicles.n
nSean : In the next, what do you think? Seven, eight years?n
nBrad : I believe. So definitely within the decade for sure. Yeah, I agree. n
nSean : Will we have three classes of drivers, buyers, leasers, and subscribers?n
nBrad :nThat we will for sure. I believe so. n
nSean : Wow. It’ll be interesting that the subscription model. What can dealers and managers and both service and sales do now to prepare for impending change that may come our way and continue to succeed?n
nBrad : Well, I mean, you know, I’m gonna say this one last time, and that was a making sure you have a good culture and your dealership, right, making sure you’re taking care of all your customers very, very well over over the top, you know, the Ritz Carlton way, if you will. And just stay in close with your manufacturer. I think that’s important, you know, having a great relationship with them, and buying in on their direction and making sure you’re giving input to them. So they know what we expect, need and want, you know, get involved in the associations, any association be involved with. And really pushing, really pushing what’s important to us, you know, to them. n
nSean : Very cool guy. So culture, communication with your OEM and getting behind their cause and backing them. I think that’s great. I think you’re stronger together. Brad, words of wisdom, Brad, Mugg, managing partner at Honda of Downtown Los Angeles. It’s been a pleasure. I wish you continued success moving forward. And I really respect your leadership.
nSean, thank you so much. I really enjoyed today and it’s really nice talking to you. n
nBrad : I appreciate you having me on.n
nSean :nIt’s been an honor. I’m Sean Kelly for the automotive leaders winning cultures webcast. Thank you for joining us car motivators followern n
nBrad : Okay, so Yeah, we’ll definitely be here in five years, for sure. Yes, we’re definitely gonna do electrification, everybody is, you’re definitely right, infrastructure is not going to be there. So it’s going to be a big, big challenge, in my opinion. I think the next year and a half, like I said, You’re gonna have two years is gonna be very, very similar to what it is today. But I also think, you know, two years from now, and three years from now, we’re not going to have all of those trade-ins, because we the manufacturers didn’t build them. n
nSo rather than fewer vehicles for trade-ins, the inventories for us will stay tight, which will gradually gravitate those customers, if they can’t find that used car, they’re looking for a two, three year old Honda, for example. Where do they go, they gotta go to a new one, which is going to even push the new car volume more. So it’s going to be fun and interesting to see where we go here. But Honda’s you know, one of the last, last ones that jump on the all electric bandwagon. But you know, they’re definitely doing it. They’re just, you know, slower, slower to the party. But it’s definitely I can see, I can see that it will be all electric vehicles.n
nSean : In the next, what do you think? Seven, eight years?n
nBrad : I believe. So definitely within the decade for sure. Yeah, I agree. n
nSean : Will we have three classes of drivers, buyers, leasers, and subscribers?n
nBrad :nThat we will for sure. I believe so. n
nSean : Wow. It’ll be interesting that the subscription model. What can dealers and managers and both service and sales do now to prepare for impending change that may come our way and continue to succeed?n
nBrad : Well, I mean, you know, I’m gonna say this one last time, and that was a making sure you have a good culture and your dealership, right, making sure you’re taking care of all your customers very, very well over over the top, you know, the Ritz Carlton way, if you will. And just stay in close with your manufacturer. I think that’s important, you know, having a great relationship with them, and buying in on their direction and making sure you’re giving input to them. So they know what we expect, need and want, you know, get involved in the associations, any association be involved with. And really pushing, really pushing what’s important to us, you know, to them. n
nSean : Very cool guy. So culture, communication with your OEM and getting behind their cause and backing them. I think that’s great. I think you’re stronger together. Brad, words of wisdom, Brad, Mugg, managing partner at Honda of Downtown Los Angeles. It’s been a pleasure. I wish you continued success moving forward. And I really respect your leadership.
nSean, thank you so much. I really enjoyed today and it’s really nice talking to you. n
nBrad : I appreciate you having me on.n
nSean :nIt’s been an honor. I’m Sean Kelly for the automotive leaders winning cultures webcast. Thank you for joining us car motivators followern n