Paul Conant holds two titles: president of the Orange County Automobile Dealers Association and general manager of Norm Reeves Honda Huntington Beach.
Conant got his start in the car dealership world in 1991 when he agreed to work in the parts department at a Cerritos dealership owned by his cousin, Dave Conant.
The Wisconsin native worked his way up at various Conant Auto Retail Group dealerships, including stints in nearly every available position.
He became the general manager of the Cerritos Infiniti dealership in 2003 and took on the same title at Norm Reeves Honda Huntington Beach in 2008.
The Corona del Mar resident oversees all departments, including sales, finance, service, parts and the business office.
He takes the helm of the dealers association on the heels of a strong year: OC saw sales of about 149,000 new vehicles last year, a 23.9% increase that’s nearly double the national increase.
Conant recently spoke with the Business Journal’s Heidi Kulicke about the Orange County marketplace, the auto industry, and his plans as president of Ocada.
What do you hope to accomplish this year as Ocada president?
We must continue to focus on creating a business and regulatory environment that allows dealers to meet the needs of their customers. This is how the association can provide the most value to our members, and where I plan to spend most of my time as president of Ocada. I also want to continue the growth of the Orange County International Auto Show.
What’s your forecast for 2013 sales?
We anticipate about an 8% increase in sales this year, driven by pent-up demand, increased consumer confidence, and low interest rates. I think we will also continue to see the sales of smaller and more fuel-efficient vehicles grow at a higher rate than the overall market.
What challenges do car dealerships face as the economy recovers?
The greatest challenge to dealers and the economic recovery comes from the uncertainty that arises from the actions or inactions of the state and federal government. Cost increases in both healthcare and worker compensation insurance are staggering, and since dealerships are very labor-reliant, the industry is hit harder than many other industries.
How does Ocada plan to help dealers achieve their sales goals?
One of Ocada’s primary goals is to help create a business and regulatory environment that serves the needs of our industry and consumers. By doing this we enable dealers to focus on selling and servicing vehicles.
The Orange County International Auto Show is a great way to get people excited about the latest products.
Auto shows have proven to have the most influential impact on a consumer’s decision to buy, with studies showing 43% of people who attend an auto show are likely to purchase a vehicle within 12 months. A strong auto show is definitely a big help to both dealers and manufacturers in reaching their sales goals.
What do consumers want in a vehicle and how are OC dealers meeting those demands?
Buying motivations vary by customer. Some want style and performance; others want dependability and gas mileage. It’s really up to the manufacturers to build the right vehicles. Fortunately the manufacturers are doing a great job of making well-rounded vehicles that suit many different buying motivations. The dealers’ job is to provide the consumer with all the information, and help the consumers choose the vehicle that best suits their needs and budget.
How do hybrid and all-electric vehicles factor into buying trends?
Hybrid and all-electric vehicles are becoming more affordable. In the past they have been quite expensive, so being “green” had to be important enough to the consumer to pay the premium. With the increased fuel-economy standards that are coming, hybrids and electric vehicles will be an important part of manufacturers’ overall fuel-economy strategies. As more of these vehicles are produced, prices will come down and more people will be able to afford them.
How do dealers attract younger customers? Are manufacturers doing enough to appeal to tech-savvy 20-somethings?
That’s a great question. Social media and online advertising are going to become a larger portion of dealers’ ad budgets. Luckily for us at Norm Reeves Honda Huntington Beach, Honda is very focused on the 20-somethings. Our new products have great technology like Bluetooth and Pandora Radio, which are standard. Honda’s 2013 Accord features HondaLink, which allows the consumer to connect easily with their fav-orite online content.
What other trends might we expect to play out this year?
I wish my crystal ball was working right now! I do think we will see manufacturers being very aggressive in their marketing. They believe the market is returning, and they all want to get their unfair share of it. Unfortunately, they can’t all increase market share. It’s going to be a battle, which is good news for consumers.
