Morgan Automotive Group CEO on tariff planning: ‘Things are dicey right now’

In April, Brett Morgan's 73-store, Florida-based dealership group was riding a tariff-fueled sales bump. But by May, volume had collapsed—falling almost 20% in a matter of weeks.

Faced with a sudden sales drop and growing risk from import-heavy brands, Morgan is asking every single one of his stores a direct question: What's your plan if the impact of tariffs gets worse?

Why it matters: Morgan's experience mirrors what many dealers across the country are feeling right now.

• Tariff-induced panic led consumers to accelerate purchases, pulling roughly 150,000 units of demand forward in April.

• Now, as dealers prep for the second half of the year, they could see demand fall even further depending on production output and pricing elasticity.

• This whipsaw has forced Morgan to make quick pivots, and he warns that dealers without strong operational discipline or brand diversification might struggle to keep up.

Worth noting: The Florida factor makes things even trickier. Hurricane insurance spikes, and slowing migration from the Northeast are creating added pressure for dealers in the Sunshine State.

As a result, Morgan has flipped the script from offense to defense almost overnight. His management team, which spent the past few years chasing aggressive growth during the inventory-starved pandemic boom, is now working from a completely different playbook.

The answer? Some tough calls might be coming. Personnel costs would be first on the chopping block under Morgan's tiered expense strategy. Across 73 stores, even small staffing cuts could add up quickly.

Here's where it gets interesting, though... Morgan is deliberately keeping marketing budgets intact. He's taking a page from industry legend Jim Moran's playbook by getting "even more aggressive in times like this" (a move that helped Southeast Toyota navigate previous downturns while competitors pulled back).

Zooming in: While Morgan's team is building contingency plans, he's also finalizing acquisition of his ninth Honda store.

Why Honda? Simple—they build cars here.

Meanwhile, his German franchises are a different story. Despite just investing in a shiny new Porsche facility in Tampa, Morgan's worried about its near-term outlook. And his four Volkswagen stores in lease-heavy markets face even tougher challenges with margins that were already razor-thin before tariffs entered the chat.

Yes but, the most puzzling element in Morgan's view of the market right now is the persistent strength in dealership valuations despite clear operational stress signals.

Bottom line: Tariffs have fundamentally reshuffled the deck in auto retail, transforming manufacturing footprint into the defining competitive advantage virtually overnight. Morgan's surgical response (cutting where vulnerable, expanding where protected) is likely the strategy that will separate the winners from the losers in the industry's new climate.

Outsmart the Car Market in 5 Minutes a Week

No-BS insights, built for car dealers. Free, fast, and trusted by 95,000+ auto pros.

Subscribe now — it’s free. 

Dealerships that sell vehicles across state lines know out-of-state titling and registration can be a headache.

That’s why DLRdmv created DLR50 – The nation’s fastest-growing interstate titling platform.

DLRdmv understands the impact these deals can have on your business. With DLR50, your dealership now has 24/7 portal access to calculations, pre-filled forms, checklists, inquiries, plus white glove processing and specialist support, DLR50 is a game-changer.

You can even acquire duplicate titles in all 50 states directly through the DLR50 platform!

Out-of-state deals don’t have to be complicated! Let DLR50 simplify the entire process for you and your team.

Click here to show us how DLR50 can help your dealership today!

DLRdmv – “The Dealer’s DMV”