Editor’s Note: This article was originally published in the September/October edition of Dealer magazine
Rex Gingerich has more than 40 years of automotive experience and is the founder and CEO of Chariot Automotive Group. Rex started working at his family’s car dealership when he was a student in 1981 and worked his way up to his current position. He attended GM’s Dealership Management Development Program in 1991 and the NADA Dealer Candidate Academy in 1994. Chariot Automotive Group is a family-owned automotive dealership network headquartered in Indiana. With four dealerships located in Tipton, Kokomo, and Lafayette, Chariot Automotive Group serves the transportation needs of its communities with passion, commitment, and integrity.
In our interview, we talked about his beginning at his father’s dealership, how his career path was shaped from coming from an Amish family, helping his employees to grow both personally and professionally and how technology needs to be used in tandem with the showroom.
DEALER MAGAZINE: What was the first job you had in the industry? And what did it teach you?
Rex Gingerich: The first job I had was at our family dealership, McGonigal Buick GMC in Kokomo. As a student, I worked in all departments in 1981. Every summer, I had a job there — cleaning cars, parts department, selling—before I graduated from Purdue in 1987 with a degree in business management. It taught me the importance and value of a family-owned business, and how the automotive industry is ever changing. I saw firsthand the way my father, Ivan, embraced his role as leader of the business, which instilled in me a desire to follow in his footsteps someday.
DEALER MAGAZINE: Can you talk about a mentor who has been critical in your career? How do you mentor others?
Gingerich: My father was my very first mentor and remains one to this day at the age of 94. He and my uncle took over at the McGonigal dealership decades ago. After witnessing my father’s work ethic and his commitment to our family business, I knew from an early age that I wanted to be a part of his legacy. Now, as founder and CEO of Chariot Automotive Group, I mentor my staff by showing them the value of serving others, versus just telling them that it’s important. I want to continue to show staff that Chariot’s legacy will not be the number of cars we’ve sold, but rather the number of lives we’ve touched along the way.
DEALER MAGAZINE: What sets your dealership apart from others in your region?
Gingerich: Our commitment to providing hands-on educational programs for our staff of any age, and at any point in their career. For example, we offer an educational program called the Automotive Technician Education Pathway (ATEP), a part of our Chariot Automotive Institute, that’s benefiting high school students in Indiana by providing them access to a full-time career. They earn college credit while still in their teenage years, splitting time between the classroom and service bays. One of the key goals of having a program such as this is to address the automotive technician workforce gap that we continue to see nationwide.
Education Key to Success
DEALER MAGAZINE: What sets your dealership apart from others in your region? How does the dealership support the professional development of its employees?
Gingerich: It’s critical to support our next generation of workers in general, and I’m committed to helping fill the pipeline here in Indiana to support the growing automotive industry. Chariot Automotive Group has a program called the Automotive Technician Education Pathway (ATEP), a part of the Chariot Automotive Group, that offers high school juniors and seniors in central Indiana the opportunity to get hands-on training and college credit toward a degree from Ivy Tech Community College. ATEP prepares students to enter a Registered Department of Labor (DOL) Apprenticeship Program and is just one of a few automotive-focused DOL accredited programs in Indiana. The partnership with Ivy Tech Community College extends past benefiting just high school students; our staff of any age, which could be referred to as nontraditional students, are also able to pursue a degree while working full-time at the dealership. We also offer our non-technical associates the opportunity to earn a business certificate from Ivy Tech on their way to an associate’s degree. Basically, we encourage and support our employees to take the next step in their education.
DEALER MAGAZINE: Education and professional development is something you really stress to your employees.
Gingerich: Yes, definitely. My uncle and my father grew up Amish; very spiritual people, but they don’t really value education. Both have a 9th grade education—very intelligent, but just not a formal education. Education was not a big deal around our dealership, so I was thrust early on into the leadership roles which benefited me. My uncle retired right when I graduated from Purdue and my dad had a non-family member that was a partner.
That led to the opportunities at the NADA Academy and General Motors dealership management development programs. Once I finished the NADA program in ‘94, I had the confidence and my dad’s partner allowed me to buy him out. So I became a dealer at 31 years old.
My degree from Purdue was so helpful, along with the GM program and then the NADA school. That confidence that you have in that knowledge is so helpful. I’ve just always realized that’s part of what drives our group: education. And I realize that the training I have really opened my mind and allowed me to take advantage of opportunities.
Organic Growth
DEALER MAGAZINE: Could you explain your growth from the first dealership to the four you have today?
Gingerich: We’re growth minded and we want to attract people and continue to grow and provide opportunities. People always ask “what’s your goal?” And I say I want to do really well with what we have and we’re in a position to continue to acquire and get bigger.
I didn’t start out with one store and say, “well I want to have 10 or have 20. I just wanted to do really well, for my team to learn all we could, and then and sure enough, other opportunities came along. It just happened organically.
I partnered up with a dodge dealer in Kokomo and then in 2013 I partnered up with another young guy in Lafayette that needed some help. Fast forward to today, we now have an auto group with four new car dealerships, a used car dealership, a pretty big wholesale parts operation, and a collision center.
DEALER MAGAZINE: What are the current strategic priorities for your dealership and how have they evolved in the past few years?
Gingerich: Our dealership’s motto is to be “driven to serve,” and that remains a core value and brand pillar for me and the entire staff at Chariot Automotive Group. Be it with our employees, customers or community, we want the dealership to make a difference in the lives of others beyond servicing their vehicle.
The staff hired reflect a servant leadership mentality. I lead by example, and don’t ask people to do things that I’m not willing to do. On Saturday mornings, I am at the dealership working, putting in six days day work weeks. I’m proud of both the top-tier automotive services we offer, as well as the community spirit that’s exhibited throughout each of the four dealerships.
DEALER MAGAZINE: How do you split your time between the four dealerships?
Gingerich: Three of them are located where I can stop in every day, so I might be there for two or three hours or I might be there for half an hour just depending on what’s going on. I go to Lafayette one day a week, usually on Tuesdays, as needed.
Thoughts on Industry Trends
DEALER MAGAZINE: In terms of current and recent obstacles, how has your dealership navigated these challenges?
Gingerich: After 40 years in the automotive industry, I’ve come to find that there are always going to be obstacles, within the dealership and within the industry as a whole. We navigate through them individually, allowing space for open dialogue among leadership to ensure that a challenge turns into a learning opportunity.
The last 18 to 24 months we’ve experienced a little bit of a downward trend, mostly with the Stellantis dealerships, and our GM stuff has been pretty level. I would say from what I’m seeing within my dealer group, I think it’s been pretty level to maybe a tick down post-pandemic.
DEALER MAGAZINE: Could you share some recent operational challenges the group has faced and how you’ve managed to overcome them?
Gingerich: With four dealerships, that equates to four groups of management that all do a phenomenal job of serving clientele, staying on top of industry trends, and training the next generation of automotive workers. A challenge, though, is having streamlined processes for internal communications among all staff. We’re working to overcome said challenges by integrating a tighter cadence of sharing dealership successes, learnings, pain points, and overall updates. This comes in the form of our internal newsletter as well as successes shared on our social media platforms.
DEALER MAGAZINE: What trends do you think will have a significant impact on the automotive industry in the coming years?
Gingerich: I see the electronic vehicle (EV) market having a significant impact on the automotive industry in the coming years. It will take some time to be adapted by the majority of car owners, but I foresee the technology advancements, including increased safety features, as being a major selling point for the future of cars.
DEALER MAGAZINE: As the auto industry continues to transition towards electric vehicles (EV), what steps is your dealership taking to adapt to this change?
Gingerich: Our Chariot Automotive Group team is ensuring our current and future automotive technicians have access to high-tech education; especially education centered around the transition toward electric vehicles. We know that today’s cars are already more complicated than some of the rocket ships that NASA launched into space decades ago. As cars become more technologically advanced, it’s critical that our staff develop a deep understanding of automotive technology and mechanics, as well as a comprehensive perspective of how this new technology fits into today’s vehicles.
The EV market presents a unique opportunity for dealerships across the country to level up and adapt to a growing population of owners. I will say, though, that I don’t intend to turn my back on the part of our customer-base that prefers gas-powered vehicles. It’s not going to be an immediate switch for everyone—and some people may not want to make the switch at all—and that’s okay. My goal for Chariot Automotive Group is to meet our customers where they are, and to train our staff accordingly.
Personal Connection Key
DEALER MAGAZINE: Looking at the current trends, where do you see the biggest opportunities for growth in the automotive sector?
Gingerich: There’s an increasing number of car shoppers who rely primarily on online resources to gather information about cars, completely bypassing a thorough in-person search as their starting point for shopping. Because of this, we have been working to upgrade and build out our websites so that potential customers can get a better understanding of the cars we have available. By the time they show up onsite, they should be ready to take our cars for a test drive and sign on the dotted line – because they have already found all the background they need online.
But I sit back and tell our people, even with all the technology that’s so helpful and amazing, that it can’t beat the one-on-one relationship. I still love hanging out and talking to and helping customers, or helping a salesperson work with the customer. People want and need that.
Think about 25-30 years ago, if you needed information on a car you went to the dealership and picked up a brochure. They then told their loved one, “I met this really great guy and I’m going to go back and see him.” Well, all that information’s online today. I stress to our staff that people still value that relationship when they come to the showroom.
DEALER MAGAZINE: What are some of the technologies or innovations in automotive that excite you the most right now?
Gingerich: I look forward to the continued evolution of reaching our next generation of car buyers and automotive workers through a digital format. While I will always believe that in-person relationships will outweigh the benefits of virtual formats, I understand that in order to reach more people, a digital footprint must exist. In addition to that, I’m still excited to stick to what we know best – developing relationships with our customers when they come to buy or service a vehicle – which truly sets us apart from many others in the industry.
DEALER MAGAZINE: How do you see digital transformation impacting your business, especially in sales and customer service?
Gingerich: It is streaming sales and customer service in an already fast-paced environment. Two of our dealerships have started using AI to engage customer interest and answer initial customer questions automatically, no matter the time of day. We’re excited to see the positive impact this has on our current and future customers and are prepared to continue educating ourselves on how to further implement digital.
My dad taught the importance of transparency and being upfront and I feel that happened with all the information being online. I think it’s just really added legitimacy to what we’re doing. Thirty years ago, you’d pull out an invoice and show them what you’re doing—they thought we just made it up. Now customers know that information beforehand, so I think it’s been helpful.
DEALER MAGAZINE: As a leader, how do you foster an inclusive culture within such a large and diverse organization?
Gingerich: At Chariot Automotive Group, we are intentional about gathering everyone at our dealerships on a quarterly basis. We host training sessions and go through major updates that our employees need to know about, but this is more than just an opportunity for us to check a box. We want people to sit down and share a meal with people they may not work with directly on a day-to-day basis. It’s an opportunity to foster connection and inclusivity, which they can take back with them afterward.
If an employee or one of our managers has a need, we get involved and help as much as we can, be it helping them through family difficulties, giving them time off if their family is in need, or just being there for staff and leading by example.
DEALER MAGAZINE: Can you tell us how you stay connected to your employees?
Gingerich: We schedule a weekly lunch that we term “diagonal slice” that we started in spring 2023 and invite 8-10 associates from different stores and departments. This lunch is informal where we share a few updates, but primarily want them to know us on a deeper level and encourage them in their career development as well as getting to know me 1-to-1.
We normally have a PowerPoint that might have five or six slides with our mission statement and just a couple of tidbits—I always put my email and phone number up. They then introduce themselves, their position in the company and one challenge they have faced or something that could be approved.
An example of what can come out of that meeting is we had a member a little over a year ago who works in our parts warehouse. She said when they deliver parts, we’re the only place that doesn’t have a uniform. We fixed that and in two days, we supplied shirts and jackets as it absolutely made sense.
We also have a managerial advisory board, and through these meetings, we’ve identified a couple of people to start training them to take a bigger role.
Leadership and Service
DEALER MAGAZINE: Can you share your approach to leadership and decision-making in such a dynamic industry?
Gingerich: My father taught me two guiding principles to always live by: serve others and do the right thing. I do everything I can to reflect these principles in both my personal and professional life. Our associates know that I will always support them when they are doing the right thing for our customers.
DEALER MAGAZINE: What values and principles drive your organization, and how do you ensure they are reflected in the day-to-day operations and interactions within the company?
Gingerich: The company is “driven to serve.” I am fortunate to carry on the legacy of this family-owned business, and know we continue to have a positive impact on the communities we serve. Be it through blood drives, hosting events for families, or free car seat checks, it’s critical that we remain focused on what matters most, and that’s being there for others.
DEALER MAGAZINE: How do you prioritize community and philanthropic efforts?
Gingerich: Launched in 2023, our Chariot Serves program creates a framework in which all of our charitable, employee, community and customer service initiatives live. Serving others is a mindset and a part of our culture at Chariot Automotive Group. Through Chariot Serves, my employees are compensated for two full days per year to serve at a charity of their choice. Even though this program is still in its early years, we have built wonderful partnerships in our community and are working to build on those in the future.
And we had one of our program partners help us—Advantage Housing, a tremendous organization. We had a young guy, adopted from Guatemala years ago, that was living with his sister. He asked about Advantage Housing as he wanted to get a place on his own. I knew several people that were involved, and I think within less than 30 days he was in his own apartment.
DEALER MAGAZINE: What are the key qualities you look for when you hire leaders for your team?
Gingerich: I look for those that have extensive experience in the automotive industry in addition to having a steadfast commitment to being a servant leader. Also, I’m looking for a common desire for career development with younger associates. This can be a rare find, but I’ve found it’s the key to the company maintaining our core values and showcasing them to new, younger hires.
Advice for Next Generation
DEALER MAGAZINE: What is one thing you wish more people knew about the automotive industry today?
Gingerich: I wish more people knew about the many career opportunities that exist within the automotive industry, and how beginning as a technician can lead to so much knowledge that’ll benefit career paths in the future. It’s an industry that offers roles in business, marketing, mechanics, technology, etc. If you have a passion for cars, I can guarantee there’s a position that you can be passionate about – and that you can grow with for years to come.
DEALER MAGAZINE: What advice would you give those entering the business?
Gingerich: Find a mentor who can walk you through the many aspects of working in the automotive industry – and pay attention to what they say and do! Cars have changed tremendously in the past century, let alone the past decade. It’s an ever-evolving industry, so having someone to show you the ropes, and to be candid about the challenges they’ve experienced and conquered along the way, can be truly beneficial. As you listen to their experiences, you will be better prepared to take on the challenges and opportunities that may come your way as well. Additionally, I would encourage them to take advantage of training opportunities offered by their company or search out on their own. Build relationships with others in the industry, read books and listen to podcasts. Continue to learn, improve, and be the best version of yourself.
