I know that the cover of this issue is a little moredramatic than usual, but I'm really excited about this cover story. It's a departure from our usual "Giant of the Industry" Q&A, but that's not why I'm excited. This cover story involves a new approach in the age of consolidation. Three dealers have chosen to go where no dealers have gone before. They will not sell their businesses. They will not sell a majority stake in their businesses. They will not sell their legacy to a factory-owned dealership "collection". They will join forces, combine their resources, experience, knowledge and expertise and create an entirely new form of dealer group.
By now, you've heard of the three Albuquerque Ford dealers who are consolidating their Ford stores to form their own dealership group - Zia Automobile Group. What excites me most is, here is an option in which dealers control and own the enterprise. I mean, the guys who were dealers before the consolidation are still dealers afterward. Nobody is giving up control, ownership, legacy, community involvement or anything else.
I know that this is not an option for dealers in every market, but now there is an opportunity for some dealers to take advantage of the current market beyond just swapping stores for cash and/or stock. It's about time.
I hope you enjoy reading this cover story as much as I enjoyed interviewing the dealers covered in it. But what I really hope for is that some of you will be inspired to the point of exploring this option yourselves. I'm not saying you should consolidate with same make dealers in your market. I'm not even saying you should look into it. All I'm saying is it is now an option. As you read the cover story interview, you'll be sure that the Albuquerque Ford Dealers absolutely did not do this as a defensive move. But when I think of the possibilities of, say Denver dealers consolidating to take on John Elway AutoNation, I begin to salivate (plus I've always wanted to get back at him for spurring the Baltimore Colts. I blame him personally for the Colts leaving my hometown).
In the words of legendary car man Lynn Hickey, "Whatever a man can conceive and believe, he can achieve." Well, the conceiving has been done and if three guys in Albuquerque can do it, you better believe you can do it too! The first step? Read my cover story and see how Zia was born. Then envision doing the same in your market. Is it likely you could? Maybe not. Is it possible? Maybe. One way to find out. Good luck!