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Dealer Ray Mungenast: 'I'm just the voice'

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  1. Dave Duncan1:07
  2. new cars0:40, 3:50
  3. JD power4:32
  4. spending cuts6:03
  5. Lexus1:55, 3:31
  6. Acura1:50, 6:53
  7. fresh baked cookies2:13
  8. Honda5:17, 6:52
  9. market share2:33
  10. Saint Louis1:48, 4:25

Fri, 14 Dec 2012|

The Dealer Speaks With Ray Mungenast

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Automatically Generated Transcript (may not be 100% accurate)

Hello I'm Leslie Alan welcome to the dealer speaks. As chair of the American international automobile dealers association. -- look at ray Monday it asked of them boys for the import dealer. If the job his late father Dave among -- senior had in 1998. In fact the group's lifetime achievement award is named for Dei -- -- -- But rage and Brothers Dave junior and hurt aren't living in the shadows. They run at 327. Million dollar enterprise. Moving more than 5000 new cars a year. And Raymond and asked -- this part of the business with a simple philosophy. A superb -- -- and good service will keep them coming back. This is the among NASCAR multifamily history wrong and begins in 1934. With my father's birth. -- among get Matt hails from a family that a natural thing blew it needs no introduction. Hi I'm Dave Duncan missed his father started selling motorcycles in 1965. And -- entered the car business. Actually was late 1966. Early 67 we opened our first automobile dealership which was at Toyota story. Don't want -- automotive family now comprises five dealerships. A motor sports store. And collision sensors there's also -- motorcycle museum which honors the legacy of the company's founder. An avid biker who died in 2006. On the lack of the thing who have been 51 year old Graeme mound in -- domain. Stands at fourteen acres in west Saint Louis county. There's the Acura store. And next door a 78000. Square foot Lexus showroom which he opened in 2009. It's twice as big as this all -- -- a nearby. And mountain NASA has gone out of his way to give the place the comforts of home. A TV lounge. A children's lounge. A -- row with coffee and fresh baked cookies. There's also a business loans to keep customers connected. And a fireside lounge quiet free of distractions. All -- a country club feel. These amenities. Are not just for show. The main thing was customer retention and and growth of market share and and also on an equal level was our employee satisfaction. The response. Overwhelming. We opened this building in November of 2000. And kind and it was probably the worst economic time that you could have opened and taken on. Financial challenge like this for our customers responded immediately. Even those times were tough -- during their vehicles and for service and buying you were pre owned vehicle when they could. If it's helped us and we've we've been profitable since they want the story. Cuba -- once service customer who tells the store over free shuttle ride to the mall. She looked around since. Why -- why would I wanna leave this place. Reminded that it was a sign that he hit the mark he had found what customers want in a facility. One of the best ways to retain customers is to have a good service department and here the Lexus door there are no fewer than 32 service -- -- Work twice as many as deep as our prior facility. We do a very good business and our customers are very happy with the so they continue to bring their cars to us even. They have 607080000. Miles long. Would close the ninety new cars being sold each month. Your service -- just don't have the number of service -- that you need so that was probably the single most. Reason for building the new facility. Was a multi -- service drive to receive our clients. And then have the days to get the cars through so customers can bring their vehicles and for service when they want. He says customer service awful means communication. Don't try to sell them everything. Is it immediately just the constant communication about their vehicle. On the day of our visit it was unseasonably warm in Saint Louis we headed for where else the fireside lounge. On the mantle a JD power award a reminder of one of the stores and best practices. Customer follow lot. It's easy to think what we know holly wanna be treated but sometimes that changes. And changes ongoing me too so we followed constantly to make sure that we're achieving. Expensive training keeps employees on tests. A state of the -- training center offers a stunning view of the show room below. That becomes somewhat of a distraction what people are contributors and perhaps. And I can't tell the story of the Monday and asked automotive family or -- mug and ask for that matter. Without mentioning one thing. And that's motor sports. This is a photo of when I was the general manager of or Honda motors works agency he was 28. And like his father a bike enthusiast. He even spent time racing in Europe. And that drives to stay in the game could serve mound -- -- well in the coming years. He says the biggest obstacle facing hit stores in fact all dealerships. I think government regulations and it may get worse before it gets better it's a very competitive market the banks are just now starting -- money. It took to some of the perspective fires again so. That's getting a little bit better but that's been huge challenge to get people financed with a fiscal cliff with a fiscal put these two. And there's the uncertainty about whether automatic tax hikes and spending cuts will hit the US next month. Not a minor concern for a luxury dealer of customers often run their. Owned businesses. The danger of the fiscal cliff is that we are. We are in an economy that is just beginning to repair itself -- it's it's wounded but it's repairing itself. That's on the way back the fiscal cliff could could just knock it completely back down is deeper and deeper as it was in recession. You know just a couple years ago. In February 8 month and half half the gavel plus to AI AEA -- -- now drop. I'm just voice and and I appreciate the opportunity to have been that -- in 2012. And among their -- operation could be growing plants are in place for a new Honda store and an Acura expansion is being considered. Thanks for watching the -- speaks take care.

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And as we get that business went up quite a bit because they split in the as far as their knowledge of the cars. And we had experts on east eat each particular manufacture. Displaced face increased at both sites. Before we knew he had eaten for a aren't directly to bloom who is our customers come yeah. Probably out acts of the while. is that I don't know what it does. Is the easy online. Or. Courtesy addict Chrysler and the Dodge Ram locations years ago. Meantime in crystal lake the Buick GMC store was also renovated. It had been a Pontiac site it changed the Buick GMC just before the free days the dealership in began the overhaul. The payoff from all that work we went from. Years ago is that courtesy groups on eighty. 400 cars so everything is going going in the right direction. new sales are up 30% this year repeat and referral business are also. We have to attribute to the the remodeled the dealerships and they and they wanna come back we wanna be apart of the courtesy. And the big thing we've heard is that customers that we went. I played a reinvestment of the community they they can see it they can see the investment community. And the three days aren't confining themselves to the prairie state they built a national customer list thanks to Internet sales. A month ago one of the drivers drove all the way to. Phoenix to deliver call. David Perry is one of 100 private contractors that deliver pick up cards for courtesy. It's about trust. I've had I've I had customers to tell me. Bad. They would never deal. Would anyone else. But the three days some are old customers another free day. senior worked for Ford Motor Co. for nearly two decades before opening up Ford dealership in house legal Illinois in 1991. He kept it for nineteen years. But that didn't exactly pressure that hits the follow his example. Obviously last that education that he did that is the way to school. When when the talent and they said Africa you know you guys who have do but don't sell cars in the first thing we did with cutters. We could've taken away give bag I would be excited I don't think went by that. It was in we can wait to get back. Spent about ten years working for their father he now works them as a consultant. To strengthen their work family the free taste promote from within managers Chris bell tee and Jeff they only work both started in Internet. Fail. To see the potential almost of bringing other people in to develop us and have must rise up. Throughout the dealership. Community service is a priority for the business. As is maintaining a work atmosphere. That's a much work has more and there than you'd like to be right now is we do. If that's the good thing is my thought we'd have yet to count. We get to do we get it. And people get their cars going Alive though it is a great thing that we get to go to work. 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We've done it before we've never done it really to this magnitude. And of that at the peak work load time that's something I'm a little concerned about. But we've been talking to our suppliers have linked how we prepare we improve our processes. Young also talking about initiatives under way at Rio to promote risk management. This all the supply chain disruptions from the Japanese earthquake and tsunami three years ago. We can only mitigate risk of we understand where those points are. And so based on that were working with our suppliers. As best we can and try to visualize supply chain through the tears. we understand where our product is coming from and we can identify where risk areas are. Both tank and young agreed that the overall goal is to achieve profitable growth for both automakers and suppliers. And speaking of profits is Harvard study by planning perspectives a researcher John hanky. Concludes that a good working relationship with suppliers can boost and auto makers the bottom line. Thank you seeing close relations with suppliers lifted Toyota's profits by 2400 dollars per vehicle. Sold from 2008 2013. Ford gained almost 2000 per vehicle. Thanks for watching our special reports from the planner for on a motive resurgent management briefing seminars. To see all four go to auto news.com slash Trevor city take care.

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