From left: VACC Industry Policy Advisor, Michael McKenna with Tom Wood Automotive Director of Operations, Robert Kennedy-Edwards.
Continuing the Indiana leg of the FIMDA/VADA trip, Michael McKenna toured the major dealerships connected with the Tom Wood Automotive Group.
Arranged by Automobile Dealers Association of Indiana (ADAI)'s Marty Murphy, the tour was hosted by Tom Wood Automotive Director of Operations, Robert Kennedy-Edwards. Mr Kennedy-Edwards is the immediate past president of the Indianapolis Auto Traders Association (IATA) – a key arm of the ADAI. IATA has a charter for promoting the Indianapolis automobile industry, as well as organising and hosting the Indianapolis Auto Show.
The Tom Wood Automotive Group has traded since 1967 and spans three states, Indiana, Minnesota, and Kentucky. It runs a diverse operation that includes 11 new car franchises at 15 locations. These include Volvo, Ford, Toyota, Acura, Honda, Porsche, Audi, Subaru, Lexus, Nissan, Land Rover, Jaguar, and the largest VW Dealership in Northern America. In addition, the group owns the Indiana franchise rights to SIXT car rental, its own leasing firm, runs an aviation company, as well as an elaborate panel and collision business. Not to forget a burgeoning used car department!
Additionally, the group runs Honda and BMW motorcycle franchises and has just opened a start-of-the-art Honda and BMW showroom. A key to the success of these dealerships is in the relationships with the factory and ensuring stock availability and service capacity.
The group has an average annual turnover of approximately US$1 billion and employs over 1,100 people. The service call center takes over 98,000 calls per year and has a 92 per cent conversion rate. The Ford dealership alone has an incredible 48 hoists for cars and a further 16 bays for specialty truck servicing.
The commitment to great service is clear in every aspect of the business. The support of US service personnel is something that Australia could learn from. This is a key facet of most US businesses, and the Tom Wood Automotive Group promotes and practices it perfectly.
Mr Kennedy-Edwards puts the success of the group down to the fact that staff are happy at work and everyone is equal. Solid foundations and a commitment to community (that was laid down by founder, Tom Wood) have set the group up to deal with the transition – however slow in the mid-west – to an electric vehicle dominated market.
Mr Wood – who sadly passed away in 2010 – had a solid business philosophy: Success is not measured by the number of franchises or locations an organisation has, it is measured by the people associated with it.
VACC thanks Mr Kennedy-Edwards and Tom Wood Automotive Group staff for their enthusiasm and professionalism. It made for a positive and informative engagement.