- Car Dealership Guy News
- Posts
- How Subaru quietly took over the Northeast and lessons for dealers from a billionaire distributor
How Subaru quietly took over the Northeast and lessons for dealers from a billionaire distributor
Featuring Ernie Boch Jr., CEO of Subaru of New England
Welcome to another edition of the Car Dealership Guy Podcast Recap newsletter.
Today’s guest is Ernie Boch, Jr., CEO of Subaru of New England, breaks down what makes the distributor model unique, how his 65-store dealer network consistently outperforms competitors, and why operator-driven stores still win in a corporate world.
1. Distributors are a diamond in the rough in today’s market.
Subaru of New England is one of only four auto distributors left in the U.S.—two Toyota distributors and two Subaru distributors.
“The distribution model was started because the manufacturers didn't have inroads to the market. So, they pick one guy to build the market, sell the goods. The manufacturer sells the car to the guy. The guy builds the dealer network and sells it to the dealer. The dealer sells it to the customer.”
Over the years, the manufacturer has been gobbling up all the distribution.
2. Some paths in the business are easier to find.
Ernie was practically born into the business.
“My grandfather started fixing cars in his garage…in a small town south of Boston. Business became so good, he quit his job at Boston Cadillac and opened a gas station on Route 1 in Norwood. Massachusetts…Back then, there was a lot of hand-to-hand. So, manufacturers came to Route 1 and talked to my grandfather, talked to my father, and that's how they got the initial franchise of Nash.”
Nash turned to Rambler, Rambler turned to American Motors, American Motors turned to Chrysler, Chrysler turned to Stellantis.
3. The Boch family road to auto retail started in the ‘70s.
The Boch family journey as in auto sales really took off in 1971.
“We picked up the distribution for Subaru, Toyota dealership, and the Oldsmobile franchise, all in 1971…We took (Oldsmobile)…right to…(the) number one Oldsmobile dealer in New England.”
The distributor for Toyota—who was based in Rhode Island and a friend of Ernie’s father—gave the family the franchise, a new point for Toyota.
4. Toyota was a turning point for the Bochs in auto retail.
High gas prices in the early ‘70s not only helped drive the popularity of Toyota in the U.S.; it helped drive the success of the Bochs in the business.
“Before Toyota, the number one import in the United States was Volkswagen. And I remember, like it was yesterday, my father…pointed to Toyota, which was very low on the list. And he said, this is going to be the number one selling car in the United States. And I was like, ‘whoa.’”
The gas prices ignited Toyota and the Boch family’s car business—with them becoming the number one Toyota dealership in New England in 1980.
1. CDK Global - CDK SimplePay is the only payment solution that's built into CDK solutions for unrivaled reliability and financial efficiency. To learn more or schedule a demo visit CDK.com/simplepay
2. Kenect - The platform auto dealers are using to gather reviews, generate leads, and improve their online reputation, all powered by AI at kenect.ai.
3. Nomad Content Studio - Most dealerships still get social media wrong—ignoring it, posting boring inventory photos, or handing it off to someone without a plan. Meanwhile, the dealer down the street is pulling millions of views and closing real car deals. That’s where Nomad Content Studio comes in. They’re the team behind dealers like Paragon Honda, Benzs & Bowties, and EV Auto. Nomad trains your videographer, guides what to film, then edits and posts across every platform for you. Want your dealership to be next? Head to trynomad.co.
5. Come up with a sales motto that works and sticks.
During his sales days, Ernie’s strategy for motivating his sales team was “Lose by Less.”
“Every month let's say we lost by 600 cars…our goal was to lose less than 600. So that's how I kept it going.” And then my Honda store shot…right up to number one…number one Honda dealership on the planet.”
Sales goals are what you make of them.
6. Distributors—as few as there might be—still hold weight in the market.
Subaru of New England has a network of 65 Subaru dealerships in New England.
“Think of me as McDonald's. I provide the hamburgers. So, I provide the cars, the parts, the training, the certification, the programs, everything to my dealer network, which is in the six states of New England.”
The Subaru vehicles come two ways to Ernie—by super tankers from Japan, and by rail from Indiana.
7. The power of an owner operated business cannot be understated.
In many cases, owner-operated retail businesses will beat factory/public store—despite the massive reach of the later.
“If the guy's got the biggest area, he should be number one. If he's number one AOR (area of responsibility), he should be number one in sales. But it's not like that...For example, right now, the number one and number two guy that toggle back and forth in New England is the number 50 out of 65. This guy's got the 50th largest, which is…15 from the bottom. And he's number one.”
As a privately owned business, the buck stops with the owner.
8. Expanding your horizons in the business can go a long way.
Subaru of New England’s business process isn’t all nuts and bolts.
“In New England, in the six states of New England, the only region in the country, we do one message. We do all the commercials. We don't give the dealers co-op. They advertise what they advertise. We take care of them in many, many other ways, but we have one voice.”
Ernie has an in-house advertising agency called Consumer Creativity that does all commercials.
9. Don’t let perceived boundaries limit your opportunities.
Ernie has been traveling to Japan once a year since 1986—which has been a huge part of his success in the business.
“…in 2003, when my father died, because I used to go with my father, I called up Subaru of America because we would always wait to get invited to Japan because that was the polite thing to do. I told them…’hey, listen, I'm coming every year. Every year I'm coming. If you invite me into the building, that's fine. If not, I'll wave as I walk by.’”
Taking that initiative has allowed Ernie to establish a one-of-a-kind relationship with Subaru.
10. Continue to build on existing relationships.
Ernie attributes Subaru of New England’s success to his relationship with the company—which he continues to cultivate.
“I have a great relationship with Subaru of America, and I have great relationship with Japan. And it wasn't always that way. Anybody that has built anything to the highest possible level will tell you it's easy to hit the top of the mountain. It's extremely difficult to stay there.”
With its penetration in the six states and its relationship with Subaru of America and Subaru of Japan, Subaru of New England is in a great position.
Did you enjoy this edition of the Podcast Recap newsletter?Let us know your thoughts - |
Interested in advertising with Car Dealership Guy? Drop us a line here.
Want to be considered as a guest on the podcast? Add your name here.
Reply