Welcome to another edition of the Car Dealership Guy Podcast Recap newsletter—the key lessons from top operators, founders, and execs shaping the future of auto retail.
Today’s guest is John Bergstrom, Executive Chairman of Bergstrom Automotive.
We discuss his legendary 50-year career in the car business, the exponential growth curve his dealership empire is on, and why he has no plans for retirement.
Rejection becomes the foundation for entrepreneurial determination.
When General Motors initially denied Bergstrom's dealer application due to insufficient capital, the setback created lasting motivation rather than defeat.
"General Motors turned me down and said, you did a good job in college. We like the fact that you want to be a dealer for us, but you don't have enough money. And I could have told him that ahead of time, but reality is, that was that was one of those things that not only was difficult for me to accept, but it was also a motivator to try and figure out a way."
When traditional paths close, creative alternatives often prove more valuable than the original plan.
Customer relationships compound through genuine personal connection.
The hospitality principles learned from running a successful bar directly translated to automotive retail, creating sustainable competitive advantages through emotional loyalty.
"I had this thing in my mind that if I could get people, that really felt we cared about them, that they would come every day or frequently. And how we were going to do that is…with our team, you had to learn their name on the first visit and what they like to drink."
Remembering names and showing authentic care built stronger customer bonds than competing on price alone.
Systematic acquisition strategies create exponential growth opportunities.
Bergstrom wrote annual letters to target dealership owners for over a decade, building trust before deals were ever discussed.
"I started writing letters 10 years ago, maybe 12, to a group of dealership owners that I would like to buy if they would sell it. And I would write them in January each year…and say, if you ever want to sell this, if it would work for you, I would work real hard to make it easy for you to exit and we'd take care of your people."
Consistent outreach combined with a reputation for fair dealing transformed cold prospects into willing sellers seeking mutually beneficial transactions.
Decentralized leadership requires strong cultural foundations.
Bergstrom's leadership team sets performance targets for store managers but gives complete freedom on execution methods, trusting internally-trained leaders to deliver results.
"Three of us run the company day to day. My son Tim, who is very much in operations and very good at it. And John Hogarty, the young attorney that we hired, who keeps us within the lines on what's legal.”
This autonomy works because every manager learned the relationship-building approach from within the organization rather than being hired externally.
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Every month feels like a new game worth playing.
Bergstrom treats each month as a fresh challenge and opportunity, maintaining the same entrepreneurial energy he had decades ago rather than winding down toward retirement.
"I have no interest in retiring. I look at every month like a new game. And we're going to start from zero…I don't see any reason why we can't double our size again."
His energy comes from viewing business challenges as exciting puzzles to solve rather than burdens to escape through retirement.
Employee empowerment creates stronger customer outcomes.
Bergstrom gives his team authority to solve problems without seeking approval, even when it costs money.
"Your job is to make the guest happy…and if you do that, whatever decision you make, as long as your intention is to make them happy, we're going to stand behind you. And if it costs $200 or $10,000. We're with you."
Trusting employees to make customer-first decisions builds loyalty and eliminates bureaucratic delays.
Reinvested profits are fueling exponential dealership expansion.
Bergstrom Automotive nearly doubled from 30 to 58 locations between 2019 and 2025, using profits to fund systematic expansion.
"When we had enough money to have enough equity to go in and buy a store, I would work hard on doing that. And then simultaneously, as we put a plan together on how we ran the culture of what our stores are, that made a big difference, because we could then measure how we're doing against what our plan was."
Financial success creates expansion opportunities, but culture preservation ensures quality stays consistent during rapid growth.
Tariff fears are creating more opportunity than actual harm.
Bergstrom believes the market overreacted to tariff announcements, with customers accelerating purchases to avoid potential price increases that may be smaller than expected.
"Our business has been unusually good for the first seven months of this year. I think at least the last four have been good because of tariffs, where people are moving in advance and trying to purchase a car now and avoid the cost of the challenge."
The anticipation of tariffs boosted sales more than the actual tariffs will hurt them, creating unexpected business benefits for prepared dealers.
Chinese automakers pose an existential threat to American manufacturing.
The quality and cost advantages of Chinese-manufactured vehicles represent a fundamental threat to traditional automotive manufacturing economics.
"If I walk to a showroom in Beijing today, I can buy a very nice car for less than half than I can buy it in the U.S. And the quality is there. You could drive and slam the door, that whole thing."
American automotive industry must adapt to dramatic cost differentials while maintaining quality standards and employment levels.
The dealership business remains accessible to new entrepreneurs.
Despite industry consolidation, Bergstrom believes motivated individuals can still build successful automotive businesses from scratch.
You couldn't start with less than I started with... I think if I had a grandson today that walked in the office and said, I want to start in the car business, but grandpa, I want to do my own thing, I would wish him very well and he will do very well."
Hard work and determination still create pathways for new entrants willing to fully commit to the industry.
