By Alysha Webb, Editor and Publisher
When Brian Kelly acquired Thomas Ford in Beverly, Mass., it was the fulfillment of a 30-year old wish, said Kelly, president of Kelly Auto Group. He wanted to add another domestic franchise to balance his heavily Asian mix, and the Ford store is only four miles from his office, he said.
Brian Kelly, President of Kelly Auto Group
Plus, “I like the truck business,” Kelly told Automotive Buy Sell Report.
That proximity is important. Online sales may be trending, but Kelly is a big believer in the importance of a hands-on approach to the dealership business. That helped make the acquisition of the Ford store a reality, and also informs the way he runs his other dealerships.
Kelly knew the original owner of Thomas Ford. In 2001, the store was sold to Steve Leary, who was the general manager at the time. “I called him and welcomed him to the neighborhood,” said Kelly.
He kept in touch with Leary, and in the last three years they started talking about a possible acquisition. That kind of long-term relationship was important in making the deal a success, said Kelly.
“People would rather do business with someone they like,” said Kelly, “especially if you are buying a single point [store]. Their concern is who is going to take care of my employees and customers. It gives you an advantage.”
It isn’t like Kelly wanted to push Leary out, however. The former owner is taking the summer off and helping his kids check out colleges, said Kelly. But when Leary is ready to start another job, “I would be thrilled if he would come and work for me,” said Kelly.
Kelly does plan to make some changes at the Ford dealership. Like most dealers, Kelly buys a store not because of what is it doing, but because of what he thinks he can do with it. Initially, he plans to apply the well-known Kelly process. “It is kind of a joke,” said Kelly, “I clean the windows and get someone who can answer the phone correctly and give you directions to the store.”
He acquired the franchise but not the real estate, so in two years Kelly will move the Ford franchise to a new location in Beverly, where he will convert an existing building to a Ford Image Program dealership.
Meanwhile, he is working on renovating the current location, including a new exterior paint job and upgraded showroom and service areas.
Kelly sees potential for a thriving commercial truck business at the Ford store. He deals with a lot of contractors and “about 80 percent of them drive Fords,” said Kelly.
He has already started advertising the Ford store’s new ownership. For the Kelly Group, that means a mix of digital and traditional ads. It does its own in-house ads, many featuring Brian Kelly. Media includes radio commercials, TV spots, print ads, and a bill board.
Kelly admits he is “maybe a little old school” where advertising is concerned, but the ads aim to get people on to the Group’s website for more information. “I am not growing traditional advertising, but I am not discounting it either,” said Kelly. “We try to drive everyone to our website. As long as I can drive them there, [traditional advertising] still has value.”
The personal touch pays off. Kelly enjoys going to his dealerships on weekends and “shaking hands and kissing babies.” Last weekend, he was in the Ford store and a customer asked for Kelly by name. He was a friend of one of Kelly’s vendors, who had recommended the dealership to him. “He bought a Ford truck,” said Kelly.
That same day, a woman came into the store who had heard the radio ad and thought it was cute, said Kelly. “Stuff like that happens all the time,” he said.
Family business
Kelly is a second-generation car dealer. His dad got into the business in 1965 with a used car lot and a “string of light bulbs,” said Kelly. More than a decade later, his dad bought a Datsun franchise that is now part of the group as a Nissan store.
The Kelly Group has eight brands. Besides Ford, it has Nissan, Infiniti, Honda, Volkswagen, Jeep, Fiat, and Maserati stores. Last year, the group sold 18,000 units, including just under 10,000 new. This year he expects sales to rise 10 to 15 percent, said Kelly.
It is a family business. Kelly has three kids; all are involved in the business, as is his son-in-law, who is director of operations. His sister is the group’s HR director, and his younger brother handles running cars to auction.
He wants to continue to grow in order to give his managers – family and otherwise – opportunities for promotion, said Kelly. He prefers a “slow steady pace” of an acquisition every year and a half, and likes the stores to be close by.
“We touch every store every day,” he said.
These days, Kelly, 63, is passing a lot of the day-to-day operations on to his son-in-law. “The next big growth phase will be with my kids,” he said.
But you can bet that Kelly will still be in the stores, shaking hands and kissing babies.
