By Alysha Webb, Editor and Publisher
When Michael Morais, president of Open Road Group, decided to buy an unprofitable Cadillac dealership in New Jersey, objectively that might seem a bad business decision. The brand is struggling, after all. But Morais is confident he can turn the store around. That confidence is based on some factors that seem subjective but might actually be objective, to a degree.
He likes the brand, which is subjective. But that feeling is based on the fact that he sees many of his BMW customers also own a Cadillac Escalade SUV. Morais figures he can make the dealership profitable by applying his tried-and-true management methods. That’s a both objective and subjective, I suppose. Open Road is a successful dealership group. But Morais’ belief that he can also make the Cadillac dealership successful is somewhat subjective, resting as it does on his self-confidence.
Many decisions to buy a dealership rest on similar subjectively objective beliefs. Attorney Erin Tenner doesn’t reject those beliefs in her piece this week. She does suggest, however, that taking a look at the actual data, as well as accurately assessing the potential of a brand in a specific location, are important considerations that may be overlooked or overruled by less objective considerations.
In the case of the Open Road Cadillac store, location and brand did play an important role, as you will read this week.
