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Eternal Optimists: Why Car Dealers Thrive When Others Panic

• Jim Fitzpatrick • Season 1 • Episode 2

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The ability to maintain optimism during uncertainty separates thriving dealerships from those merely surviving. In this compelling conversation, Virginia Automobile Dealers Association President Don Hall delivers powerful insights on leadership during challenging market conditions.

"No matter what's going on in the economy, we're still selling cars and trucks," Hall reminds us with characteristic enthusiasm. While media narratives focus on tariffs, market fluctuations, and consumer hesitation, successful dealers recognize the fundamental resilience of automotive retail. The question isn't whether people are buying—over a million Americans purchased new vehicles last month alone—but whether your dealership is getting its fair share by adapting to evolving customer preferences.

Virginia's market provides a fascinating snapshot of current trends, with plug-in hybrid sales rising while Tesla experiences decline. Hall, who drives an EV himself, notes that hybrids particularly appeal to consumers by eliminating range anxiety while offering technological advancement. This diversity of powertrain preferences demonstrates why dealers must remain nimble and customer-focused. As Chinese manufacturers prepare to enter the market following recent trade developments, Hall emphasizes the proven value of the franchise system: "When the Chinese come here, they need to understand that the best way for well over 100 years is to sell through the franchise automobile dealer network."

Perhaps most valuable is Hall's perspective on the disconnect between OEMs and dealers. Having met with nine different automotive manufacturer CEOs throughout his career, he observes that many come from engineering backgrounds without fully understanding retail operations. This knowledge gap creates both challenges and opportunities for strengthening these crucial partnerships. As Hall powerfully concludes, echoing former Senator John Warner: "Your home is your castle, your automobile is your freedom." This fundamental truth about personal mobility explains why automotive retail continues to thrive regardless of temporary economic headwinds.

Have you considered how your leadership mindset impacts your team's performance during challenging times? Listen now and transform how you approach uncertainty in your dealership.

Jim Fitzpatrick:

You're watching Inside Automotive with Jim Fitzpatrick. Hey everyone, thanks for joining me for another episode of Inside Automotive right here at the CBT Automotive Network. How can you stay focused, adapt and keep your businesses thriving during uncertain times like we find ourselves in right now? Both dealers and consumers are concerned. So joining us now with his insights and recommendations is Don Hall, CEO and President of the Virginia Automobile Dealers Association, also known as VADA. So, Don, thank you so much for joining me here on the show. As you know, there's a lot of consternation out there, both on the part of dealers as well as consumers and I guess even OEMs. In this situation, with all that we see with tariffs, the ups, the down, the uncertainty I mean there's a lot going on out there. How do you keep your team focused and headed in the right direction for profitability?

Don Hall:

Well,J im, first of all, it's great to be with you today and I appreciate the opportunity to share my views and my beliefs, if you will, having been in this industry for a very long time. Look, every day when it comes to tariffs, we're hearing something different or new, and in some cases, something very enlightening or exciting as well. But I've always believed that, as leaders of dealerships and as senior managers in dealerships, we have always got to exude great enthusiasm and positiveness. Now some will say come on, don, we all have negative days. Sure, we do. We all have experiences that aren't great, and those experiences teach us the most in life. But at the same time, we've got to make sure that our staff understand. Yes, there are some challenges out there, but we're gonna rise above those challenges.

Don Hall:

One thing I've learned after many, many years of being at the VADA is that, no matter what's going on in the economy, we're still selling cars and trucks. The question is are you getting your fair share? Are you out working hard? Are you being more aggressive in terms of understanding the way that customers want to buy? You know? Are you going out of your way to contact? You know, someone else who's left the dealerships former customers? Are you working hard, even in spite of some of the negativity that goes on in the market News? People love to talk about how bad things are. The truth is, things are great and they're going to get even better and let's enjoy that and let's get people excited about buying cars and drugs.

Jim Fitzpatrick:

Well, not this news person, but I know what you're talking about.

Don Hall:

You know I thought that, Jim, but you're right.

Jim Fitzpatrick:

No, but you're exactly right in everything that you said. I completely agree. It is really. You know, it's a head game out there, and if your attitude is right and your head is, you know, pointing in the right direction, otherwise it's all noise and you are correct, the right direction. Otherwise it's all noise and you are correct. The media will just shove all of that negativity down your throat until you can't take it anymore. But there's just a time to turn it off and focus on the job at hand. And I agree with you Over a million people bought a new car last month and another couple of million bought used cars last month. So even in light of all of this, the industry just keeps rolling along. It's incredible how resilient dealers are and retail automotive in general right.

Don Hall:

Not only are they that, but it's part of the reason I've loved these car dealers for so many years, and that is that, no matter what happens, we learn to turn it into something positive. Right, and the truth is, as I've gotten older, as a young man I thought I could change the world, change everything. But there's some things in life one cannot change. But one can learn to work around that and through that and use that challenging opportunity as a way to grow as an organization, as an individual, as a manager and so forth. And again, I think we have to continue to lead by example. Exude enthusiasm, but legitimate enthusiasm, but teach people. It's about the customer. It's about the customer buying experience. This is a great business. People still want and love and need their vehicles. God bless them. Let's go out and sell cars.

Jim Fitzpatrick:

I agree. I agree, hey, changing gears a little bit. In Virginia, plug-in hybrid sales are up, Tesla sales are down and ICE sales continue to grow. Talk to us about that.

Don Hall:

Well, we find it exciting. The fact of the matter is we're no longer under the California Air Resource Board, carb as it's known at in Virginia, and we're grateful for that. But the truth of the matter is, to the credit of the various OEMs, toyota sort of led the way. As we all know, hybrids are really taking off in Virginia.

Don Hall:

I happen to drive a VW EV as well and I will tell you that. I tell folks all the time that EVs are fun to drive and hybrids are even better in terms of what they offer consumers, because it gives you choice and you can make that long trip and not have anxiety about being able to plug in and so forth. And so in Virginia the sales have picked up, but ICE are doing better than they were a year ago as well. So we have limited supply of ICE even in Virginia to some degree, but the reality is that people are excited about these really neat-looking cars. Tesla sales are down in the Commonwealth of Virginia and we think it's because hybrids are up and our regular OEMs who are partnering with us as dealers are excited and the dealerships are excited about selling them. And so overall, we're very enthusiastic about the industry and where we're going with technology, be it be it hybrids or other types of cars will come out in the future.

Jim Fitzpatrick:

Yeah, yeah for sure, and I think we're going to be seeing also the influx now of China vehicles, in light of the fact that the president was able to cut a deal with China, and I know that BYD and other manufacturers are just standing on the sidelines dying to get in to the US market with their products, right, and Jim, yes, they are, but there's a word of caution here.

Don Hall:

There's a word of caution to OEMs and to dealers as well, and that is that when the Chinese come here, they need to believe and understand that the best way for well over 100 years is to sell through the franchise automobile and truck dealer network if you will, nationwide, that the manufacturers will benefit from that. At the same time, we that work in the retail business and sell cars and trucks to our customers need to understand customers need to understand. Customers need to have a great experience so that manufacturers cannot say dealers don't do a good job. Therefore we should be able to sell direct, and I and I keep saying that message on over again. It's about the customer buying experience. Let's be long-term thinkers. We tend to be short-term, 30-day thinkers in this industry.

Jim Fitzpatrick:

Let's be long-term thinkers.

Don Hall:

We tend to be short-term, 30-day thinkers in this industry. Let's be long-term thinkers and make sure customers have a great buying experience. Therefore, manufacturers cannot use that argument against us and Chinese, hopefully, are smart enough to recognize the franchise system is the system that they should be using and we've got plenty of dealers nationwide ready and willing to partner with whomever to sell good quality products and give a great buying experience when they buy that product.

Jim Fitzpatrick:

That's right. That's right. No truer words have been spoken. So, speaking of OEMs, what's the one thing that you wish OEM leaders better understood about the dealer perspective in all of this?

Don Hall:

Jim, I appreciate the question. You know I was thinking. The other day I had an opportunity to meet with one of the CEOs from one of the OEMs. I'm not going to name this individual on air, but I spoke with him the other day and I've done so. I've met with about nine different heads of various OEMs in the course of my career here at the VADA. So nine individuals I don't mean at a cocktail party, I mean either in their office or in my office. So I've had real conversation by and large, including my most recent meeting.

Don Hall:

They're really outstanding human beings. They're good men and women, they're very good and they're sharp, but they typically come from an industrial, mechanical engineering background and their job is to produce vehicles. Their job is to deal with, unfortunately, labor issues and various federal and state issues as well, and they don't really understand dealers. They don't really know about it.

Don Hall:

It surprised me one of the first times I met with a head of one of the manufacturing divisions again CEO president of it he said you know, I don't really understand why you associations exist and I don't really understand what dealers you know, why they belong to the VAD and other groups and what you all do, because it doesn't get to their level. But they understand in my talk with them, that we're here as partners. We're here to facilitate a great selling buying experience. Facilitate a great selling buying experience, selling the vehicles to our dealers and then reselling those vehicles, if you will, the customers buying those vehicles. And so I think we have an obligation to really go out of our way to make sure that we understand. Manufacturers don't understand it and sometimes they only hear the bad news about our industry.

Don Hall:

They only hear the stories that aren't pleasant, even we all will say, oh my goodness, that's a horrible story. Why wasn't automotive news a terrible story? And they say, wow, that's what car dealers are doing, or wow, you know, I can't believe they're doing this or doing that. And so I think it's incumbent upon us, through our dealer councils, to go out of our way to really share the message about the value of the franchise system, the value of the men and women who work in these dealerships nationwide, and why we are an important part of the ingredient and the formula to make success of selling and repairing vehicles nationwide.

Jim Fitzpatrick:

Yep, yep, yeah, there's no question about it, and so you know. There's some good news out there that we've seen this week coming out of the Trump White House, and that is I referred to it earlier about the deal that he struck with China. Obviously, the stock market is way, way up. Everybody's feeling much better about their 401k accounts and such. You know here we are in the middle of the second quarter of 2025. How do you feel about business in general? What are you hearing from your dealer members out there? Are we going to be okay, and what does the rest of the year hold for us?

Don Hall:

Again, one of the reasons that I love this industry and that you love this industry we basically spent our adult lives, both of us, in this business is this Car dealers are eternal optimists, and that optimism needs to continue. It needs to be the way that we exude, the way we walk, the way we talk, the way we sell, the way we deal with our staff, the way we interact. When in doubt, take care of the customer, when in doubt, always take care of your staff. And so I think right now, dealers are incredibly optimistic. I made a comment to a former governor of Virginia, Terry McAuliffe, a few years back. I said, Terry, you missed your calling a life. He said what do you mean by that? He's again a governor and very involved in politics. I said, oh, you'd have been a heck of a car dealer for sure, Just with your attitude, your enthusiasm, your attitude of getting things done. It may be a negative day, but not in my world. It's a positive day and we're going to go out and sell cars today.

Jim Fitzpatrick:

Right.

Don Hall:

And I really believe that our president Trump would be a hell of a car dealer.

Jim Fitzpatrick:

Oh yeah, oh yeah.

Don Hall:

Because he's constantly trying to be positive and spin things and, whether you like him or you do not, I think his results ultimately will be very telling. Yeah, and right now, as an industry, I think our dealers in Virginia and, I believe, nationwide, are extraordinarily optimistic. But at the same time, it doesn't matter who the president is. We want to be optimistic. Yeah, we want to be helpful because as a nation we need to flourish and automobiles matter. I'm reminded, if I can can real quick, of Senator John Warner.

Don Hall:

John Warner was a longtime US Senator out of Virginia, very senior Senator who'd served in the United States Marine Corps as I did, though he was long before me in the Navy as well as a young man, and John one time met with a group of my car dealers and he said with great enthusiasm he said your home is your castle, your automobile is your freedom. God bless the dealers of Virginia and, ladies and gentlemen, that is still true. Automobiles and trucks are our freedom. God bless what you do. We need to go out and be positive and I think right now we have an opportunity to show that and to act that way, and that impacts our industry in a positive way when it exudes from you as the leader of your organization to others within your organization. Yes, we all have challenges, but from challenges we learn much and much makes us stronger and even better at what we do.

Jim Fitzpatrick:

And now you know why we call on Don Hall for his advice because he brings it. Don Hall, president and CEO of the VADA, thank you so much for joining me once again on CBT News. It is always a pleasure. Our viewers get so much out of your visits with us. So thanks so much and until next time, stay well.

Don Hall:

Thank you, take care.

Jim Fitzpatrick:

Thanks for watching Inside Automotive with Jim Fitzpatrick.