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 Jeff Laethem, President of Ray Laethem Buick GMC.
We’re getting into why ego doesn't sell cars, how Jeff learned that lesson the hard way, why Buick might be on the brink of a major comeback, and what made him pull the plug on Stellantis stores in the heart of metro Detroit.
Business transitions test leadership fundamentals more than market knowledge.
Taking over during a family health crisis meant relying on institutional wisdom rather than personal expertise.
"He gave me some good advice and that was, to not be the kind of guy who was a know-it-all and to listen to his managers that he had in place. They knew he trusted them and that they were phenomenal people."
Experienced managers became the bridge between generational leadership styles, providing continuity when operational knowledge mattered most.
Dominating conversations destroys team intelligence and innovation.
Meeting dynamics reveal leadership effectiveness better than financial metrics.
"When I started seeing the silence in the meetings and waiting for everybody to look for my answer, that has now become my cue that I'm talking too much and not getting right down to the real reason behind what's happening because…I'm the one that's shutting everybody down because I've already got the idea figured out. And I was wrong so many times."
This behavioral shift poisoned decision-making quality and drove away talent who felt their contributions were meaningless.
Systematic processes free mental bandwidth for relationship building.
The most effective customer interactions happen when fundamentals become automatic.
"We look at every position and look at the 20% of things that you need to do on each customer interaction, or each process that you have, that allows you to not think about the basics."
These structured approaches eliminate the cognitive load of remembering basics, allowing personality and genuine connection to emerge during customer interactions.
Regional market dynamics override national used car strategies.
Understanding local lease penetration shapes inventory and pricing decisions more than industry trends.
"Sierra leases right now, with zero due at signing are $300 something a month, all taxes included. And you know, you're looking at a $60,000 or $58,000 truck crew cab. It's just hard to compete against that."
What works in other markets fails completely when new vehicle lease payments undercut used car values by hundreds of dollars monthly.
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Cultural fit matters more than financial performance in franchise decisions.
Strategic divestiture decisions often stem from operational philosophy differences rather than profit margins.
"From the standpoint of the Ray Laethem brand...the way that the brand felt about treating customers was radically different than the way that we treat customers."
When core values around customer experience don't align, even profitable partnerships can become unsustainable for maintaining brand consistency across the dealer group.
Structured meeting rhythms enable difficult conversations.
Regular accountability systems turn conflict into productive problem-solving.
"We have these weekly level 10 meetings in all departments...getting issues out in the table and being brutally honest with each other, getting that trust factor with the ability to trust that it's a safe space to be able to say, you're not doing something the right way."
This framework creates psychological safety where team members can challenge leadership decisions without fear of retaliation.
Custom technology development rarely justifies the investment.
Internal development projects consume resources better spent on proven solutions.
"I would never try to develop it myself ever again...with the nice thing about a lot of these new technologies and having short timeframes and not having to commit for years of something, it's nice to be able to experiment."
Modern software trials with monthly terms allow rapid testing and elimination of tools that damage customer experience or team morale.
Multi-generational family involvement strengthens operational oversight.
Bringing family members into specific operational roles creates dedicated accountability that external hires sometimes can't match.
"At some point I asked [my mom] to come here to help in the office and different things. And she loves actually packaging up some of these processes. She loves being a second set of eyes."
At 78 years old, his mother manages their 60-70 car courtesy transportation fleet with meticulous attention, a level of personal investment that reflects the unique advantages of family business operations.
Market positioning enables specialized financing strategies.
Unique geographic advantages create customer diversity that supports higher-risk lending models.
"We are the only Buick GMC dealer in the city of Detroit. We're on the far East side near gross point, which is a very wealthy community. So we've got it. We've got a real mix here of credit scores."
Operating between contrasting demographics creates the credit profile diversity needed to sustain 27% subprime penetration without compromising overall portfolio health.
Sustainable expansion prioritizes human development over location acquisition.
Building organizational capacity through leadership development creates lasting competitive advantages.
"The beauty of having more stores, it allows you to make more leaders who can make more leaders. And, you know, that's my ‘why’ at the end of the day...Leaders who can make leaders who can make leaders. And if we're doing that, everything else will fall into place."
This philosophy transforms acquisition decisions from real estate plays into talent development opportunities that compound over time.
