Unbeknownst to most car shoppers on Shreveport’s Rountree Ford Lincoln car lot, this summer there was more for sale than vehicles.
In a June 24 news release, Houston-based Group 1 Automotive Inc. announced the acquisition of Rountree as the latest addition to its 140 automotive dealerships, 180 franchises and 35 collision centers in the United States and abroad.
Pete DeLongchamps, V.P. manufacturer relations and public affairs for Group 1 Automotive, said Rountree was familiar to Group 1, and the purchase made a lot of sense for shareholders and employees. “This year we will be the third or fourth largest seller of cars in the United States,” DeLongchamps said. The company projected $80 million in estimated annual revenues for the dealership. “We have 139 dealerships in 15 states in the U.S. We have operations in Brazil and the United Kingdom. We have over 10,000 employees. Volume is important, but we believe that what we offer is scale advantages. But, we also think that for the employees of the dealership it provides additional opportunity for them to join a larger organization,” he said.
DeLongchamps said his company leaves the operation of the dealerships to local management. “What we do as an organization is we will take care of what we call the non-customer facing activities, transactional accounting, IT, those types of things,” he explained. “So it actually gives our general managers more time to focus on customer care. Ken Shapen has joined Group 1 and will remain as general manager of Rountree.
“We think an awful lot of [Ken Shapen]. We think it’s important for a local manager and operator to be part of the community,” DeLongchamps said.
Shapen said he’s been impressed with the technology and marketing acumen Group 1 brings to the market.
“It’s been amazing to see how [they operate], he said. “I guess we never realized that there was that kind of technology out there. It’s been interesting, a great learning experience, and we’re just beginning. I think it’s going to be a great relationship for us, for my employees.”
Shapen admitted that learning a new system of operation was a change for everyone, but he’s been pleased with the transition. “They’ve been incredible, so far, communication-wise. The great thing is the CEO is Earl Hesterberg, who ran Ford of Europe. Group 1 loves Ford dealerships. They’ve got a lot of others, Toyota, Mercedes, BMW, Volkswagen. But the domestic side of their business is Ford.”
Shapen said he thinks that’s good news for the Shreveport market. “I don’t think you’ll tell a whole lot of difference in the community. I think it’s going to be the same store that’s been here forever. Ninety-eight percent of my employees are still in place.” He added, “I think they’re going to invest in the community and the area. I think it’s a great fit.”
DeLongchamps was positive about the local market. “So far, we’re very pleased with what we found. Hopefully, we can continue and grow upon what the Rountree organization has put in place. We spent time in the marketplace, and we think Shreveport is a great town, and we think there is some upside opportunity for us to grow our business. We think with the economy improving that towns like Shreveport really are places where people want to live and they want to raise families. And that speaks to the Ford brand.”
Shapen praised Group 1’s attention to new marketing and service methods for getting and keeping customers. “People don’t just walk in the lot anymore. You’ve got to be really savvy in Internet communication. That’s the thing about Group 1. I’ve never seen so many resources, so much help and support. They have very professional people in every category. I’ve got a guy working with me on my Internet site.”
Group 1 is also assisting Rountree in making positive changes in its service department, according to Shapen.
“We’re already making changes to improve our service side. We’re looking at how we can train ‘em out of high school to become technicians.”
And in the meantime, Shapen wants to stay put. “I’m not going anywhere. I’m a Shreveport guy. I’ve been here 25, 26 years. This is where my family is.”
It’s also where Group 1 will sell Fords and Lincolns in the Auto Mall.