Celebrating one’s
silver anniversary is definitely an achievement, but doing so in this market environment
is an achievement in of itself. F&I
magazine goes one-on-one with Bill Speaks, CEO of NAC, to talk about the
company’s milestone, current market challenges, and the road ahead for F&I.
F&I:
Not only are you celebrating your 25th anniversary, but you’re also doing
so with the same management team in place since the company’s founding. Can you
talk a little bit about this milestone, as well as how NAC has been able to
keep the same management team pointed in the same direction for that long?
Bill: NAC is proud to be celebrating its 25th anniversary this year, and the management
team and I believe that the credit goes to the NAC employees and agents for
doing their jobs with enthusiasm and excellence. Every NAC employee is brought
in from day one with an understanding that in order for success it needs to be
a win-win-win situation for all parties involved.
It’s the innovation in the marketplace and the customer service that
NAC prides itself on that are the keys to being around 25 years later. It’s
playing from the same page in the playbook when it comes to beliefs and ethics
in doing business.
F&I:
When you started out, the country was just coming out of the 1982-‘83 recession
that many experts say mirrors the one we’re in now. What’s your take?
Bill: I believe that the previous recession was not as bad as the
current economic situation. Back then, manufacturers were cutting programs to
allow for on-going purchases of vehicles. Unemployment rates weren’t as high
and people weren’t as scared to spend.
In good times, companies tend to not pay as much detail to the
day-to-day details as they do in times like now. Companies that survive will be
stronger because they’ve gone back to their beliefs. The strongest companies
are the ones who remained debt-free, and I’m proud to say that NAC is debt-free
and getting stronger because we’ve stuck to the mission we put forth 25 years
ago.
F&I: What
do you see as the biggest threat to this side of the business?
Bill: The credit market is the biggest problem. Like auto dealers, the
companies that provide F&I products are reliant on credit markets. Our
products, in many cases, are financed through the credit market, too. It’s
important to have innovative products to offer as a standalone service beyond
what finance packages are available. It’s about bundled services that save auto
dealers money, thus providing dealers with great value. When they see the
value, they save the money. NAC has been providing this innovative idea of
bundled services for many years — it’s where the industry needs to go, it’s
where we’ve been going since 1984.
F&I:
Technology has certainly made its presence felt on this side of the business —
particularly on the vehicle service contract business. And NAC has certainly
kept up with the trends. So what’s the next step for technology in this
segment?
Bill: The
next step is offering Internet-based systems that process in real time with a
built-in e-commerce solution. It’s providing efficiency and ease of use with built-in
marketing tools for dealerships, F&I and sales.
By
understanding the needs of our consumers, we can come up with the technology
that dealerships need. These products enable dealerships to also educate
and train their personnel on the latest compliance and regulatory issues, as
well as provide their customers with the services they want. Moving on in the
future, technology in the vehicle service contract business will be about
integration and bridging systems and technology.
F&I:
I’ve heard conflicting predictions on when we might start to see an economic
turnaround. Some analysts say we won’t see the beginning of a turnaround until
next year, others have put it at the half-way point of 2009. When do you think
we’ll see a light at the end of this tunnel?
Bill: We’re
just not buying into the recession. NAC’s perspective is onward, upward and
choosing not to participate in “the recession,” which is being negativity
fueled by the mainstream media. We’re trying to stay positive and see the glass
as half full.