Automotive News - June 2, 2008 - (Page 32)

32 • JUNE 2, 2008 THE DEALER SPEAKS Irma Elder: ‘This is one of the toughest times we have had’ hen her husband died in 1983, Irma Elder had to raise three children on her own — and run a Detroit Ford dealership. Over the past 25 years, Elder has built that single point into a retail empire. Today, Elder Automotive Group owns 11 dealerships in Michigan and Tampa, Fla. The company has 16 franchises, including Jaguar, Land Rover, Aston Martin, Ford, Lincoln, Mercury, Saab and Jeep. Elder discussed her business, her life and current industry conditions with Staff Reporter Arlena Sawyers. How’s business? It’s tough, but you have to make the best of the situation. We have had slowdowns before. In 1983, when interest rates were at 21, 22 percent, it was very difficult to put people in a car. The first oil crisis in 1973 really took us by surprise. Every time there was a strike at Ford Motor Co., we were without cars. But this is one of the toughest times we have had. So we have to work as lean as we can. What is your business philosophy? Our employees have been with us for many years. They work with us; they don’t work for us. We seldom fire employees unless something is very wrong. But we don’t hire new employees unless we really need them. We treat our customers and employees with respect. When it’s all said and done, what else is left except your integrity and your honesty? How did you get started in the business? My husband passed away in November 1983. I took over the dealership in January 1984. Every penny that we had was put into keeping the dealership alive. It was absolutely necessary that I take over. My father said, “You have to do it.” My mother said, “I’ll pray for you. It will be all right, because God takes care of widows.” Ford Motor Co. was wonderful. They did not give me money, but they gave me support and encouragement. From there we extended into other dealerships. We bought Jaguar in 1992. It has been wonderful. We also bought Saab and about six years ago we built a stand-alone Saab dealership. We built a stand-alone Aston Martin dealership just last fall. And the early part of last year, we built Jaguar and Land Rover (stores). At that time, we weren’t sure Jaguar and Land Rover would be sold. We thought Ford would be able to keep them, but obviously they found it necessary to sell. We understand. What is your impression of Tata Motors, the new owner of Jaguar and Land Rover? I’m very impressed. They are an honorable company. They have done a lot for India and their people, and they have a lot of integrity. I think they have the finances to build the right cars. Have you met Tata’s chairman, Ratan Tata? No. There is a possibility that Mr. W What has it been like for you as a woman in the auto industry? I agree there are certain things women cannot do. I don’t have the stamina to carry 50 pounds of whatever. But I have the brains to do other things. Women have the ability to do so much. Women are very smart and belong in the automotive industry, believe me. Tata might come to the country and meet with various dealers. I’m hoping we will be able to meet with him in the next two or three months. In the late 1990s and early 2000s, your dealership in suburban Detroit, Jaguar of Troy, was the highest-volume Jaguar dealership in the United States. Is that still true? With the economy so bad in Michigan — it started to be bad before the rest of the country and still hasn’t recuperated — we lost our status. But I don’t concentrate on being the biggest. I just want to be the best. Jaguar seemed to lose its way in recent years. Why did you buy another Jaguar store in metro Detroit last year? I believe in Jaguar; otherwise, I wouldn’t have bought it. (Former owner) Nate Conyers is a dear friend. When he told me he was going to sell and asked if I would be interested, I said yes, absolutely. I know things have been rough. But Jaguar is a beautiful car. It has a long history and is well known throughout the world. I believe there is a future for Jaguar. Why don’t you have any Asian-brand franchises? It isn’t that we don’t want them. We have attempted to add a couple of Asian dealerships, but we have not been able to. I know they have women dealers, so it’s not because I’m a woman. For some reason, it just hasn’t worked out. Which Asian brands would you like to have? I would love to have Toyota. I would love to have Honda. I would love to have Hyundai. Then you have plans to expand? I wouldn’t mind having something in the General Motors line. I’m absolutely devoted to Ford, because it gave me my beginning. We haven’t stopped expanding, but that doesn’t mean it’s going to happen tomorrow. Everything that has happened to me fell into place at the right time. I didn’t go searching; it just came. I was having lunch with Mary Falvey (the previous owner of Jaguar of Troy), and I said, “If you ever want to sell, contact me.” A few months later, she said, “Let’s go to dinner.” I have gone out looking for dealerships and have not been able to get them. But if it’s meant to be, I will seize the opportunity. The key is to never give up and never jeopardize your honesty and integrity. You use the words “honesty” and “integrity” a lot. Is that something your parents taught you? My father said that your name is worth everything and your integrity is worth everything. He taught us that when we were very, very young, growing up in Mexico. Our mother taught us love. My father had a dry goods store in Mexico. When we came to Miami, we didn’t speak English. He bought a small grocery store with my brother. When it came time for my father to retire, my brother took it over. Why did your family come to Miami? My father’s brothers were there. My father wanted his children to get to know their uncles. I was 14 or 15 when we moved. My sisters and I went to a small parochial school in Miami. The nuns taught us English. We all managed to do well, thank God. I have a sister who is a federal appellate court judge. What is your forecast for the auto industry? I believe in the automotive industry. I cannot conceive that it is going to go away or that the American companies are going to go away. Have you faced special obstacles as a female dealer and a minority dealer? There is a feeling that the automotive industry is a man’s business. I’m not saying everybody does it, but there is some patronizing if you are a woman. But that is a fact of life. I do not allow it to get to me. It is tough for everybody. We can’t cry and say, “I’m a woman” or “I’m a minority.” It’s not going to get us anyplace. We all fall down. I’ve fallen. The trick is to get up and start again. As a woman and a minority, you have to think to yourself, I’m not the only one having problems. It breaks your heart to see a business closing because you know it can happen to you. Not because you’re a woman dealer or a minority dealer but because things are tough. Sometimes it makes us work harder. We’re forever trying to prove ourselves. You’ve turned over much of the management of your company to your sons. Are you thinking of retiring? One of these days, but not right now. I’m still having fun. I want to be able to walk away knowing that my sons know what they’re doing. The way to do that is to allow them to make their mistakes and do their own thing. My son Tony is here in Michigan. My son Robert is in Florida. They do a better job than I do. They work together. My daughter, Stephanie, is in Grand Rapids (Mich.) She is a mama, gives them advice. How many grandchildren do you have? Five. When it’s all said and done, your family and friends are the most important things. c

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Automotive News - June 2, 2008 Gas prices fuel industry's new era Chrysler faces tricky dealer mergers Honda may crank out more Civics in N.A. Mercedes will move into Chrysler Pacifica studio Ford to offer hatchback version of Fiesta Prestige Automotive sells stores but keeps Black Enterprise top spot Dealership marketers take to text messaging Senate to hear personal pleas on roof crush rule Magazine: Chrysler, Fiat are talking Former Fla. dealer gets jail for bilking bank That guy Alfred had possibilities Ford will make next Mustang look smaller Pontiac subcompact may come to U.S. GM: Battery glitch cuts hybrid sales Porsche exec: CAFE 'will not change our nature' Japanese rivals race for lithium batteries Jatco boosts CVT capacity in Mexico for N.A. vehicles Mercury deserves a better chance Rising gas prices have changed the U.S. market Marketing and sales: Context and content Mexico's Nemak grows beyond North America Buyers didn't quit GM; GM quit on its buyers Brand perceptions change slowly Bloggers are journalists, too Nice HQ, Nissan, but where's Nobe? Chrysler's Chernoby: Growing up gearhead Picture this Mitsubishi hopes new gearbox widens Evo's appeal Openlane gets funds Obituaries Survey: Going green can get your auto ad noticed Inrix: Router can reduce traffic delays Mazda6 gets own platform for U.S. ... sort of Mazda6 set to take on mid-sized sedan heavyweights Troubled or not, the United States still beckons What's next? More transplant models headed this way Exports help as Mitsubishi sorts things out Irma Elder: 'This is one of the toughest times we have had' Fitzgerald: Dealers, consumers need alliance Can Bertone design a comeback? Family-owned business struggles for survival Some design houses fall on tough times Hughes: Not a subscriber? No problem American Axle lines up new non-U.S. business GM think tank works to boost service business Toyota offers gas card as tire incentive VW turns to common software to develop products Continental's Calif. office targets Asian carmakers ZF sees chassis, axle opportunities in N.A. Flex: A new Ford image ... or just over the top? Ford targeted Flex interior quiet, ride Ex-dealership managers say firings were over religion Dealers Genesis in Toledo: It's a long story Back woes sideline Nardelli GM: 19,000 take buyouts Panama to head Nissan Mexicana Wilhite jumps to Jumpstart Dauch sons move up, out Kozyra leaves Continental Ford to lay off salaried staff More small cars to arrive in 2009-10 Even on used market, big trucks go begging Auto advertisers adopt mpg mantra Industry to motorists: We're here to help Diesel prices hit suppliers' Mexico sites Can Camry catch F series? Leno's words of wisdom for automakers Nissan's carbon credits ease global warming guilt Automotive CEOs' pay pales next to peers' Year of the Small Car can't come too soon Foreign suppliers adding capacity in Southeast From cows to kimchi: Making Alabama sweet home for Koreans After light-truck push, cars are king again Mexican suppliers expect sales record in '08

Automotive News - June 2, 2008

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