The auto industry is on the verge of major change — and tariffs are accelerating the shift. In this episode, Kevin Bullis of The Presidio Group joins Loyd Rawls and Kendall Rawls of The Rawls Group to explore how rising costs, supply chain challenges, and shifting consumer expectations are reshaping the future of auto retail.

Whether you’re a dealer, executive, or advisor, this conversation will give you the insights you need to navigate uncertainty and position for long-term success.

Watch the video version here: https://bit.ly/42n6nCR

RELATED RESOURCES:

→ Learn more about succession planning and dealership strategies: https://seekingsuccession.com/

→ Take a free Growth & Succession Planning Assessment to see where your auto dealership stands: https://bit.ly/47f6YIi

HOW THE RAWLS GROUP HELPS AUTO DEALERS:

For over 50 years, The Rawls Group has helped auto dealers build resilient, high-performing businesses. From succession planning to strategic growth, leadership development, and navigating industry disruptions like tariffs, our experts partner with dealers to secure their legacy and drive success across generations. Give us a call, and in 30 minutes, we will help you find clarity on your next steps. 407.578.4455. https://seekingsuccession.com/

• (00:00:00) - How Tariffs Are Disrupting the Auto Industry
• (00:01:51) - Free Trade, Tariffs, and Global Competition
• (00:04:27) - Short-Term Pain, Long-Term Opportunity
• (00:08:35) - How Tariffs Affect Auto Manufacturers
• (00:12:15) - What Dealers Need to Know About Tariffs
• (00:18:32) - Dealer Strategies to Stay Profitable
• (00:24:46) - Inflation, Interest Rates, and Auto Sales
• (00:29:31) - Managing Teams and Customer Relationships
• (00:37:18) - Winning in a Tight Used Car Market
• (00:47:06) - Buying or Selling Dealerships in a Shifting Economy
• (00:57:15) - Future Growth Opportunities for Dealers

Seasonality, inflation, politics, people, and technology are a few headwinds impacting fuel dealers, wholesalers, and service contractors in the energy space. We are often asked, “How can we create predictable revenues in an industry influenced by so many outside “threats?”

In this episode, Doug Woosnam, a Consultant with Cetane Associates, Clayton Latiolais, a succession planner with The Rawls Group, Marty Kirshner, Partner with Gray, Gray & Gray, and our very own succession planner Champ Rawls discusses strategies to take control of the ebbs and flows of your business, which include:

Strategic Planning

The strategic planning process is a collaborative initiative allowing you, supporting family members, and key management to discuss and confirm the vision and mission of the organization, as well as the resources needed to achieve business goals.

The outcome of the strategic planning process is a detailed action plan that addresses short- and long-term goals, operating methodology, talent recruitment, effective business structuring, and effective communication. The strategic plan will then serve as the compass for future business and succession.

Champ Rawls shares that sitting down with your team and engaging in strategic planning will help you identify your strengths and opportunities. Once you know where you stand, you can then evaluate what potential outside business lines you could add within your existing footprint, whether that be HVAC, home energy audit, concrete, pest control, or landscaping. Assuming they fit within your business model, other services can help insulate against change. You can also discuss your weaknesses, develop strategies, and identify resources to address performance issues.”

Budgeting

Create an operational budget so you can measure what they are doing. Doug Woosnam shares that it is surprising to see how few businesses have a proper budget, something they can measure current performance against past performance and compare where they are versus what they need to be doing. Commonly, Doug sees dealers lacking in preparation. They are in their third week of the month, down 20% on degree days, but they are at a loss for how to address the deficit.

Doug continues to share that if a Dealer has a budget, they often miss key performance metrics. A standard metric missed is how many drivers are needed to support the business, and dealers often express they are unsure even how to determine that metric which is:

• What your delivery efficiency is how many gallons per hour per gallon per stop
• How many services calls in a day
• How many installations

In this business, manpower is the most significant expense next to the product cost. But unfortunately, there is not enough appreciation and understanding of what goes into developing a budget that will maximize opportunities.

Break Even Analysis

Stay on top of budgeting, using a tool such as a break-even analysis. Marty Kirshner shares that this tool will provide insight into how many gallons you need to sell to break even or at what margins you need to make.

Even though Dealers are making money, the future is unclear; for some, the unknown creates anxiety. As a result, we see business owners considering, more than ever, if it is an excellent time to cash out. Succession planning allows you to choose your best outcome – identifying your strategic objectives to fulfill your vision and provide for your family, not just business goals.

For example, suppose you are working to make the business the best it can be by department, person, or structure. In that case, you can’t go wrong if the outcome is passing the business on to your family or key manager or putting it on the market to sell and get the best possible price.

In this episode, Pete Theil with Haig Partners and The Rawls Group’s succession planner Champ Rawls discuss strategies to create more control over fulfilling the future you envision.

Resources

• Haig Report: Stay up to speed on the latest trends in auto retail, dealership values, and buy-sells.
• Automotive News Expert Q & A: Alan Haig answers questions in this Automotive News Buy-Sell Expert Q&A about how smaller automotive retail groups and independents can future-proof their dealerships.
• Buying or Selling Your Dealership: 5 Things You Must Consider
• Succession Readiness Survey: A 7-minute investment in time will put you in an informed position of opportunities many business owners overlook, impacting business value, growth, lifestyle, and ultimately achieving your vision.
• Contact Us: We can help you with insights and other resources and see if it makes sense to work together. At the very least, in 30 minutes, you may get some ideas you can apply to your business immediately.

For more insight:

Visit the “Future Proof Your Business” discussion page or select one of the additional episodes of the series below:

• Next Gen: Empire Builders Vs. Caretakers
• Delegating Day to Day & Remain in Control
• What Family Businesses Must Do to Compete Now & Into the Future
• How to Compete with National Brands & Consolidators
• Keep or Sell: Determining Your Best Strategy
• Avoid Common Business Pitfalls