Evelyn Sames moved away after college and said she’d never go into auto retailing.
But then her father called, asking her to join the Laredo, Texas-based family business, Sames Auto Group. That’s when she fell in love with it.
Today, Sames is a fifth-generation dealer and COO of a retailer that started selling Ford Model T’s in 1910. The company represents nine automotive brands at nine new-vehicle dealerships and operates another four used-vehicle stores. All are in Texas.
Sames is drawing on 111 years of family legacy to help propel the company through new challenges. Sames, 40, spoke with Jennifer Vuong of Automotive News TV about how she’s managing low inventory levels, the transition to electric vehicles, why online sales don’t work for everyone and the importance of succession planning. Here are edited excerpts.
Q: What is it like to be a fifth-generation dealer?
A: It’s been incredible to work alongside my father and learn from him. I know he felt the same working with his father. There’s just so much history. My father always reminded me that this company has survived great recessions, depressions, world wars, global events and we’re still standing and stronger than ever. That’s very reassuring. When something comes our way, we just have to face it head on and adapt and be up for the challenge.
Will sales be up from last year?
The demand is there. It’s really strong. People are out shopping. Obviously, the supply is not there. So we’ve had a shift [from] new to used where we’re seeing people consider buying a used car. Our used-vehicle sales are up. Our new-vehicle sales are still on pace to beat last year, surprisingly. My Ford store here, we have one F-150 on the lot, which is unbelievable. And we had three appointments on it yesterday. So I’m sure it’s gone by now. We’re selling [vehicles] off the truck. We are ordering vehicles for customers. We’re doing everything we can to satisfy that demand and to keep our customers happy. But it’s definitely been a challenge.
Only one F-150?
We have four Ford stores in the group, and, unfortunately, Ford’s been one of the manufacturers hit the hardest. So it’s been a major challenge. It’s interesting when you have one truck to sell and three customers looking at it. We’ve never experienced this. But that’s the really neat part about car dealers. We adapt, and we change as needed.
Visually, are your lots empty—
Completely empty. Funny enough, a couple of weeks ago, we were fixing one of the signs on the side of the building, so they pulled it down. Then I really got the phone calls. They were like, “Are you closing? There’s no cars, no sign. What’s going on?” In hindsight, I probably should have waited to fix that sign. We are reminding everybody that we’re still open for business.
What products are you pushing now?
Used cars. We are seeing a lot of interest, but, again, it’s been hard to purchase. We rely on trades, and when you’re not selling new, you’re not trading for anything. So you’re out in the market buying, and it’s tough. Used-car prices in the market have loosened up a little bit in the last couple of weeks, but it’s still definitely nowhere near what we would consider back to normal.
What’s the prospect for replenishing new-vehicle inventory?
We’re really not depending on new inventory right now because we haven’t been given any ETA. We hear it might be before the end of the year, late third quarter. We just don’t know. We are struggling on the used side as well because the demand is also exceeding supply, and we don’t want to get caught in a position where, when that market loosens up, we’re underwater because we bought a bunch of used vehicles too high. So we’re smart buying on the used side.
What’s your average days’ supply?
We try to run on a 60-day supply for new. Now we’re down in the teens. We’re getting close to zero, which is pretty unbelievable.
And on the used-vehicle side?
Typically we’re running a 60- to 90-day supply there. Right now we’re in the low 30s, so half of that.
Almost every automaker has new EVs coming the next few years. How are automakers helping dealers as the industry transforms?
There’s going to be a learning curve for everybody — the manufacturer, the dealers and the consumer. This is a big movement. Obviously, they’re educating us; they’re expecting us to get our dealerships prepared. But I still feel like there’s a lot to be worked out.
I don’t know that we’re all ready to just go all-electric. We know the markets that are kind of late adapters, and there’s not been a whole lot of interest around the new all-electric F-150 or the Mach-E. In some of my other markets, there’s definitely more buzz. We’re going to have to be sensitive to that.
We’ve got to hear the consumers as well. What do they want? What are they looking for? Because we’re here to meet their needs. And so there might be some markets where we’re slower to push this product, and there might be others where the market’s ready and the consumers are asking for it. So we’re going to be prepared, whatever that means.
Some dealers have decided to sell their businesses instead of face the rise of EVs. Is your group all-in for this transformation?
I always go back to what my father always reminds me of — how much this industry and this business has survived through. The manufacturers are putting a lot behind it. We’re their partner, and we are going to support this movement. The world is changing, and we have to change with it. We adapt. That’s what we do. Maybe this is going to happen as fast as they say. But maybe it’s not. It might take a little bit longer to roll out and be accepted.
One of my markets is 200 miles away from the next-largest metro city. We don’t have charging stations between here and there. It doesn’t work for everybody, especially in Texas. There’s been a lot of talk around the grid and can it support all of this. We just had a huge, statewide power outage. Are we ready for that? All of the pieces of the puzzle just aren’t quite there yet. And I think we all need to listen and be prepared. But I don’t think it’s a good reason to jump ship.
What are your thoughts on EV startups? Do you see them as a threat to the traditional dealership model?
We all know that the dealer relationship with the customer and the relationship with the community is vital and important. There’s a lot to be said about dealers, their connection to the communities that they serve and their commitment. Most of us are very generous. Even with the online selling, we still have a large portion of our customers that want to come in and touch and feel and smell and drive the car. COVID, I thought, was really going to push us away from that. And we have not seen that.
Are your stores doing more online sales?
They’re not. We’re still seeing people coming in. They have that rapport with their salesperson or their service adviser. They come in, they sit, they catch up. There’s a small portion of people that want to buy online, but maybe they’ll initiate the buying process on the Internet. From there, they’ll want to come in and see the vehicle and drive it.
Do you think Tesla having a bigger presence in Texas might help EVs in the state?
I probably shouldn’t say this out loud, but Tesla’s kind of the enemy, right? Texas has some very strong franchise laws. The Texas Automobile Dealers Association has done a lot for Texas dealers and fighting for those protections. We’re really proud of that. Definitely having Tesla in Texas is a big shock, and it might have some impact on the market, specifically Austin. They’re eager to adapt to some of that new technology. We’re in some smaller markets in Texas and South Texas [that] might not be ready for that. I’m definitely interested to see the demand on the all-electric F-150. That’s a big deal for Texas and EVs. That will be more telling for these markets. Tesla has their way of doing things, and it’s working for them, but I don’t necessarily think it’s the right fit for everybody.
Being a fifth-generation dealer is rare. How important is it to have a succession plan in place?
I definitely have big shoes to fill. My only goal is to pass this company on to the next generation. My dad laughs at me and says my succession plan isn’t the best because I decided my career was important and waited to have kids. I have a 21/2-year-old, and it’s going to be a while. Nothing would give me more joy than to see this company move to the sixth generation and be successful.