Description
Hyundai General Manager Opportunity — Turnaround Leadership Role
I am looking to hire a highly capable General Manager with the experience, leadership ability, and competitive drive necessary to turn around our Hyundai store.
The opportunity is significant. The average Hyundai store in our district is on pace to generate approximately $1,000,000 in net profit this year, while our store is currently pacing to lose well over $1,000,000. Fixed Operations is growing and moving in the right direction, but the challenges are concentrated in Variable Operations.
Our immediate objectives are clear:
Increase new vehicle sales volume by at least 25%.
Improve front-end gross profit per vehicle.
Improve back-end gross profit per vehicle.
Change the sales culture.
Create accountability, urgency, and consistency throughout Variable Operations.
Move the store from a significant loss position to sustained profitability.
Because of the size of the opportunity and the importance of finding the right leader, I am prepared to offer a highly competitive compensation and ownership path.
The compensation package would include a $15,000 monthly salary, plus 15% of the store’s net profit. For the first 90 days, I would provide a $20,000 monthly guarantee to give the right candidate time to evaluate the store, install their process, and begin executing the turnaround plan.
In addition, if the General Manager is able to turn the store around and produce profitability for six consecutive months, I would give them the opportunity to purchase 10% of the dealership stock and 10% of the extended warranty reinsurance business.
The total all-in value of the store, including blue sky and fixed assets, is expected to be just under $6,000,000. A 10% ownership position would therefore require approximately $600,000. I would be willing to finance the balance over seven years at the then-current prime rate, which is currently approximately 5.5% to 6%.
If the right candidate does not have the $600,000 available for the initial ownership buy-in, I would consider financing that amount as well. In other words, the right person could potentially come into this opportunity with no money down and have a clear path to owning 10% of the dealership through seller-financed ownership participation.
The candidate would also have the ability to increase their ownership position up to 20% of the dealership stock over time. After the initial 10% purchase, they would have the opportunity to purchase an additional 5% once the store has generated $1,500,000 in cumulative net profit from the time they started. They would then have the opportunity to purchase the final additional 5%, bringing their total ownership to 20%, once the store has generated an additional $1,500,000 in cumulative net profit.
We are also preparing to begin construction on the Hyundai facility in approximately six months. As a result, rent expense is expected to increase by approximately $50,000 per month. However, once the store becomes GDSI 2.0 image compliant, we expect to receive approximately $800 in additional benefit per new retail vehicle, which should materially improve the economics of the store as volume increases.
This is not a maintenance role. This is a true turnaround opportunity for a proven automotive retail operator who knows how to lead people, change culture, increase volume, improve gross, manage expenses, and create sustained profitability.
For the right individual, this is an opportunity to earn significant income and build real long-term ownership in the dealership and related reinsurance business.
