George
Glassman

/7

J

Dealerships adjust to
changing times.

Marty
Feldman

R.J. KING SPECIAL TO THE JEWISH NEWS

s auto dealerships rack up impressive sales due to an
improving economy and higher consumer confidence, they
are taking a long look at their future. While most dealers
reported strong earnings last year, showrooms didn't
produce profits like they used to.
Automakers, especially the Big Three — Chrysler,
Ford, General Motors — have introduced a sizeable
collection of impressive vehicles in recent years,
such as the Chrysler Neon and the upcoming Ford
Windstar minivan, but new models no longer generate
large profits within dealer showrooms.
Sales are on the rebound after a stifling recession, at
least for new cars, but dealers and manufacturers still find
they have to offer incentives to attract cash-conscious con-
sumers who are comfortable with bargaining prices and
sizing up rebates.
In fact, showrooms have long disappeared as profit cen-
ters. Based on industry figures, selling and leasing cars
accounts for 1 percent of the profits at an average deal-
ership, down from 78.5 percent in 1985.
Obviously, dealerships haven't stood still. The main
profit center now is in the parts and service department,
which generated 66.5 percent of a dealer's earnings in
1992, up from 14.5 percent in 1985. Used car sales jumped
to 32.5 percent of profits, from 7 percent, during the same
period.
"There's no question the parts and service department
has become more important. In the mid-'80s, we, and the
rest of General Motors, experienced foreign competition,"

said George Glassman, vice president of Glassman
Oldsmobile Saab Hyundai, Inc. in Southfield, which is cel-
ebrating its 25th anniversary. The dealership was found-
ed by Mr. Glassman's father, Daniel, who serves as
president.
"We're really seven or eight businesses in one," Mr.
Glassman said. "We have a new car showroom, parts and
service department, body shop, paint shop, leasing, used
cars and fleet sales. Each one is a profit center and we con-
centrate on everything. Our strength is in adapting to what
our customers want."
"I was just a kid when I started as an auto salesman in
Detroit in 1959. At the time, I was just 17 years old," said
Marty Feldman, owner and president of Marty Feldman
Chevrolet Geo Inc. in Novi. "I was 32 years old when I
bought my own dealership, and now my son, Jay, is
general sales manager for Jay Chevrolet Inc. in High-land.
My daughter, Marla, is our leasing and fleet manager.
"We've done very well over the years. The secret to our
success? That's easy. Good product, good service and good
location. We have a lot of customers whose children come
in to see us. That kind of loyalty does not come easily. You
always must treat the customer as a brother, and every-
thing else will fall into place."
According to the National Automobile Dealers Associa-
tion (NADA), the number of dealerships in the U.S. has de-
clined from 47,000 units in 1950 to 23,000 in 1992. The °trade
group does not track how many dealerships are owned by
Jewish proprietors, though most put the total at 5 percent.

