Heavy Regulations Create Stronger Dealers

Location: The Netherlands.

Purpose: Speak to OEMs and Dealers at the #DCDW Digital Car Dealer Workshop.

The last time I spoke to a European audience I got it all wrong. It was 9 years ago and I shared my thoughts about how to be the #1 dealership in the area. The feedback afterwards was encouraging but clear. “That’s not in our nature.” I vowed that if I would ever have the chance to speak again, that I would do more research into what dealers care about, and ensure that it mapped to topics with which they can relate.

This time around, much of the conversation revolved around the regulations of the market. Most dealers I spoke with referred to their legislation as it pertained to EV adoption, or human resources. It’s clear that they spend a lot of time considering how to continue growing their business without causing problems from a legislative percpective.

Despite the narrative around heavy regulations, there are an incredible number of successful dealerships. Massive dealer groups that operate in multiple European countries — some who are so large they act as the OEM in the country.

It got me thinking about how, in some ways, navigating a heavily regulated market makes an organization stronger. Much like the famous quote:

“Hard times create strong men, strong men create good times, good times create weak men, and weak men create hard times.”

- G. Michael Hopf

What is it about tough times that make us grow faster?

The simplicity of the equation is that tough times strongly position us to face our fears and take more risks. When ones back is forced up against the wall the choices become more clear. We either fight and push back, or we accept defeat and give up.

The auto industry doesn’t give up. At least not in my observation. If anything, the pandemic made way to a proving ground for the resilience of the dealer body despite facing literally the worst thing that can happen to us. Our industry was forced into a corner, and as a result we each had to face the one fear that the majority of life on earth fears: The unknown.

Now here we are looking back with a fresh perspective that, despite extreme hardship, we can rise victorious.

There are still challenges ahead, however this trip to Europe revitalized my belief that we can accomplish great things as an industry.