Van Horn Automotive Group: Company Profile

Background

Van Horn Automotive Group, established in 1966, is a family-born, employee-owned automotive dealership group headquartered in Plymouth, Wisconsin. The company operates 19 dealerships across Wisconsin and Iowa, offering a diverse range of new and pre-owned vehicles from brands such as Chevrolet, Ford, Kia, Hyundai, Honda, Chrysler, Dodge, Jeep, and RAM. In addition to vehicle sales, Van Horn provides financing services, operates a rental car division, and manages a wholesale financial products company. The company's mission is encapsulated in the phrase: "Empower People. Amaze Customers."

Key Strategic Focus

Van Horn Automotive Group emphasizes:

Employee Ownership: Transitioned to a 77% employee-owned structure through an Employee Stock Ownership Plan (ESOP), fostering a culture of empowerment and shared success.

Digital Transformation: Implemented comprehensive digital solutions, including tools from Cox Automotive, to enhance operational efficiency and customer experience.

Customer-Centric Approach: Launched CloudLot, an online used-car buying platform, allowing customers to complete the entire car-buying process online, including vehicle selection and home delivery.

Financials and Funding

As of October 2024, Van Horn Automotive Group reported an estimated annual revenue of $75 million. The company has experienced consistent growth, attributed to its employee ownership model and strategic investments in digital transformation.

Technological Platform and Innovation

Van Horn Automotive Group distinguishes itself through:

Digital Retailing: Adopted digital solutions from Cox Automotive, such as VIN solutions, Auto, DeoTrack, FNI, DMS, Accelerate Title, and the e-commerce platform Essential, to streamline operations and enhance customer convenience.

Online Car Buying Platform: Developed CloudLot, enabling customers to purchase vehicles entirely online, reflecting the company's commitment to innovation and customer satisfaction.

Leadership Team

Teresa Van Horn: Serving as the sole CEO since March 2022, Teresa has been instrumental in steering the company through its transition to an employee-owned model and emphasizing digital transformation.

Jeff Niesen: As President, Jeff focuses on operational excellence and strategic growth initiatives, including the expansion of digital services and customer engagement strategies.

Richard Strong: Transitioned from Chief Operating Officer to Chairperson of the Board of Directors in March 2022, providing strategic oversight and guidance.

Leadership Changes

In March 2022, the company underwent significant leadership changes:

Chuck Van Horn: Stepped down as co-CEO to focus on Van Horn Development, LLC, a real estate and property management company.

Teresa Van Horn: Assumed the role of sole CEO, leading the automotive group.

Richard Strong: Moved from Chief Operating Officer to Chairperson of the Board of Directors.

Competitor Profile

Market Insights and Dynamics

The automotive dealership industry is experiencing a shift towards digitalization, with increasing consumer preference for online vehicle purchasing and enhanced service experiences. Dealerships are investing in digital platforms and customer-centric services to remain competitive.

Competitor Analysis

Van Horn Automotive Group's competitors include:

Boucher Automotive Group: Operating in Wisconsin, offering a range of new and used vehicles, with an estimated revenue between $100 million and $1 billion.

Ewald Automotive Group: Another Wisconsin-based dealership group, with revenue estimates between $50 million and $100 million.

Heiser Automotive Group: Competing in the same regional market, with an estimated revenue of $10 million.

Strategic Collaborations and Partnerships

Van Horn Automotive Group has partnered with Cox Automotive to integrate digital solutions, enhancing operational efficiency and customer experience. This collaboration includes tools like VIN solutions, Auto, DeoTrack, FNI, DMS, Accelerate Title, and the e-commerce platform Essential.

Operational Insights

The company's employee ownership model fosters a culture of empowerment and shared success, leading to increased employee engagement and customer satisfaction. The integration of digital solutions streamlines operations and enhances the customer experience, positioning Van Horn competitively in the market.