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Dave Smith Motors

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Dave Smith Motors
Company typeCar Dealership
IndustryAutomobile
Founded1965
Headquarters
Kellogg, Idaho, United States
Area served
United States (especially the Inland Northwest)
Key people
Ken Smith (CEO)
ProductsAlfa Romeo, Buick, Cadillac, Chevrolet, Chrysler, Dodge, GMC Jeep, Maserati, Nissan, Ram, pre-owned vehicles
WebsiteDaveSmith.com

Dave Smith Motors is a car dealership in Kellogg, Idaho, that attracts customers from all over the country.[1] The dealership has a reputation for being the "World’s Largest Ram Dealer".[2]

History

Dave Smith Motors started in October 1965 in Wallace, Idaho. He purchased the small Chevrolet dealership from Mort Keane. At that time, the Chevrolets were sold mainly to miners, loggers, smelter workers and local businessmen in northern Idaho's Silver Valley. Five years later, he moved the dealership to Kellogg, Idaho. Today Dave Smith Motors carries Chrysler, General Motors, and Nissan products, according to the Dave Smith website,[citation needed](daveSmith.com).

Idaho's Silver Valley was founded in the 1800s silver boom and is one of the richest silver mining regions in the world. The community is located along Interstate 90 in northern Idaho's Shoshone County. The valley thrived for decades as one of the nation's greatest mining regions. Then, in 1981, the Bunker Hill mine in Kellogg closed.[3] Over 2,000 jobs left with the mine sending the area into an economic downturn.[4] The region also lost a lot of jobs in the timber industry.[5] The population of the valley plummeted and car dealerships were losing the battle to stay in business. Dave Smith nearly lost the dealership.

As other dealerships were going out of business in the valley Dave Smith bought up nine other new car dealerships and sold all the brands under one roof.[6] He also cut prices in an attempt to make up in volume what was lost in mark-ups.[6] At any given time the dealership has more new vehicles on lots in town than the population of Kellogg.[7]

Dave Smith Motors was one of the first car dealerships to take advantage of the Internet. In the late 1990s when many dealerships saw the Internet as a threat,[8] Dave Smith embraced the Internet and used it as a tool to increase sales. Since the beginning of the list, Dave Smith Motors has ranked high on Ward's Auto e-Dealer 100 list.[9] Dave Smith Motors uses the Internet to reach beyond the geographic confines of their remote location in Kellogg, Idaho.

The Internet changed the playing field for dealerships because Chrysler Corporation (now Fiat Chrysler Automobiles) allocates more cars to dealerships that sell more, a policy that rewards dealers who are able to boost their sales.[10] Despite the concerns of competing dealerships Chrysler continued to ship even more vehicles to Dave Smith Motors, and assured other dealers that they could increase sales by improved customer service and referrals.[8] The other dealerships were not pleased. In 1998 twenty-five Chrysler dealerships in five states threatened to boycott Chrysler Corporation if they did not reduce the number of cars they allocated to Dave Smith Motors.[11] The Federal Trade Commission considered their boycott illegal[12] and the group settled the charges before the boycott began.

In 2015, Dave Smith Motors was purchased by RFJ Auto Partners, a national dealership conglomerate. They sell on average 1,000 vehicles a month.[13]

Community contributions

Dave Smith Motors is one of the largest employers in Shoshone County,[14][15] and the largest private company in Kellogg.[16]

Ownership

In April 2015, Dave Smith Motors was acquired by RFJ Auto Partners Inc. of Plano, Texas.[17]

While on a family vacation in April 1994, Smith died in a snorkeling accident in the Caribbean Sea near Belize at age 58.[18]

See also

References

  1. ^ Jackson, Kathy (17 February 1997). "Dealership Salespeople Pushed Aside by Internet". Automotive News. Retrieved 19 June 2013.
  2. ^ Brixey, Marcia (28 December 2011). "Buying a New Car Painlessly". Forbes. Retrieved 19 June 2013.
  3. ^ Preusch, Matthew (January 2008). "A Mining Town With a Bleak Past Starts to Blossom". The New York Times. Retrieved 19 June 2013.
  4. ^ "Bunker Hill Mining Company Records, 1887-1984". The records of the Bunker Hill Mining Company were donated to the University of Idaho Library by the company in June 1991. They were processed by Judith Nielsen between October 1993 and October 1994. University of Idaho. Retrieved 19 June 2013.
  5. ^ Ritter Saunders, Emilie (February 12, 2012). "Car Sales Are Big Business in One Rural Idaho County". StateImpact. Retrieved 19 June 2013.
  6. ^ a b "Dave Smith leads world in Dodge, Chrysler, Jeep sales". The Spokesman Review. January 6, 2007. Retrieved 19 June 2013.
  7. ^ "www.spokesman.com/stories/2007/jan/06/dave-smith-leads-world-in-dodge-chrysler-jeep/". The Spokesman Review. 6 January 2007. Retrieved 19 June 2013.
  8. ^ a b Bradsher, Keith (30 January 1998). "A New Era Of Wheeling And Dealing; Rising Competition Squeezes Car Sellers". The New York Times. Retrieved 19 June 2013.
  9. ^ Gordon, Mac. "E-Dealer Pros Sharpen Their Game". WardsAuto. Retrieved 19 June 2013.
  10. ^ Wallace, Bob (3 September 1998). "Car dealers yield sales to Internet". CNN. Retrieved 19 June 2013.
  11. ^ Garner, Rochelle (June 1999). Sales and Marketing Management: 54–61 of 151. {{cite journal}}: Missing or empty |title= (help)
  12. ^ "Auto Dealers Settle Charges of Boycott". The New York Times. 6 August 1998. Retrieved 19 June 2013.
  13. ^ "Dave Smith Motors | Better Business Bureau® Profile". www.bbb.org. Retrieved 2021-04-02.
  14. ^ "Spotlight on the Silver Villey". State of Idaho Department of Commerce. Archived from the original on 20 November 2012. Retrieved 19 June 2013.
  15. ^ Pupovac, Jessica. "Private vs. Public: Who Writes More Paychecks in Your County?". Boise State Public Radio. Retrieved 19 June 2013.
  16. ^ "Dave Smith Motors building large Kellogg lot". The Spokesman Review. 1 July 2004. Retrieved 19 June 2013.
  17. ^ "RFJ buys Dave Smith Auto". Automotive News. Retrieved 5 July 2016.
  18. ^ Massey, Steve (April 26, 1994). "Kellogg auto dealer Dave Smith drowns while on vacation". Spokesman-Review. (Spokane, Washington). p. B4.
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