Mike Maroone reveals how knowledge transfer and equity partnerships fuel dealership growth.

Executive Profile with Jim Fitzpatrick, Powered by CBT News

Mike Maroone's automotive journey spans generations, beginning with childhood memories of his father purchasing his first dealership in 1955 for $30,000. That foundation led to an illustrious career including 18 years at AutoNation before launching his current dealership group with locations in Florida and Colorado.
The COVID pandemic revealed two critical insights for dealers: the viability of remote sales and the incredible power of margin over volume. "If you look at the profits we've all enjoyed in the last three years, they came from margin, not volume," Maroone reflects. As inventory normalizes, the industry faces the challenge of retaining those margin lessons while returning to a more competitive environment.
Affordability stands as Maroone's greatest concern for the industry's future. With average new vehicle prices at $47,000+ and used vehicles at $35,000+, many consumers find themselves priced out of the market. "Our used car prices are about $5,000 a car too high," he notes, creating significant challenges when combined with rising interest rates. Yet he remains confident in the industry's creative approaches to financing and the increasing availability of more affordable vehicle options.
The electric vehicle transition presents another fascinating challenge. While Maroone supports the environmental benefits, he identifies three critical barriers: inadequate charging infrastructure, consumer confidence issues, and manufacturers struggling to achieve profitability. "No one has figured out yet how to make money at it," he observes, predicting these elements will take 2-3 years to align properly.
What truly sets Maroone's business approach apart is his talent strategy and operating model. "I look in the mirror and say you've failed if you've got to look outside your company to get talent," he shares. His "freedom frame" philosophy establishes clear boundaries while allowing operating partners (who receive equity ownership) to express their personalities and leadership styles within those parameters.
For those looking to thrive in today's automotive retail landscape, Marooney offers perspective gained from decades of experience: "Don't get too high when things are good and don't get too low when they're not. Just stay true to your principles and work really hard." Subscribe now to hear more wisdom from industry leaders who are navigating today's complex automotive marketplace.

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Fejezetek

1. Executive Profile Introduction (00:00:00)

2. Mike Marooney's Industry Journey (00:02:14)

3. Growth Strategy and COVID Impact (00:07:17)

4. EV Market Challenges and Opportunities (00:10:39)

5. Affordability Issues and Digital Retailing (00:14:45)

6. Talent Development and Partnership Model (00:19:23)

7. Looking Ahead to 2024 (00:26:14)

8. Giving Back and Personal Reflections (00:31:33)