Chad Notbohm grew up in Mohall, North Dakota, a small town near the Canadian border. His father, Chuck, was a band and choir teacher in the local school. After some years of teaching, Chuck realized he couldn’t make much money in the profession. So, in 1984, Chuck approached a couple of friends from church and purchased their Chevrolet store. Chad was 10 at the time and often went to work with his father. Chad would clean the shop and the showroom and work on little things that needed to be done. There were eight employees at the dealership who took the time to teach Chad about parts, service, selling and much more. That is where Chad’s interest in the industry started.
After high school, he attended North Dakota State University (NDSU) in Fargo, North Dakota. Chad worked at Gateway Chevrolet during that time in the parts department and was eventually promoted to service manager. He graduated with a degree in business and continued to work at Gateway Chevrolet for three more years.
Then, in 1995, Chuck had the option to close the dealership or find another location, as manufacturers weren’t renewing franchise agreements in small towns. Chuck found an opportunity in Miles City, Montana, moved and opened the doors of Notbohm Motors. In the summer of 1999, Chuck asked Chad to come home because the business was growing, and he needed help. Chad worked as a service manager until about 10 years ago. At that point, he became general manager as his father wanted to start slowing down and move toward retirement.
“Dad is semi-retired. He still comes in quite often, but he’ll also take off for a couple of months. For now, my official role is general manager. But, we have a succession plan in place, and I will be taking over as a second-generation dealer,” Chad said.
Chad’s wife, Janelle, works with him at the dealership as a marketing director. They have three children: Jace, who is currently attending Miles Community College and playing baseball on the college team; Natalie, who is a sophomore in pre-med at Rocky Mountain College; and Brynn, who is a freshman studying pre‑law at Carroll University and plays for the Carroll Saints softball team.
When Chad isn’t working, he enjoys traveling to watch his children’s sporting events, hunting and fishing. He also has a hobby farm just south of town that keeps him busy.
We recently had the opportunity to talk with Chad and get to know more about his thoughts on the industry and his new appointment to the MTADA board. The following are excerpts from our conversation.
What is the biggest issue facing the dealership industry?
The first would be personnel issues. It’s very difficult to hire good people to meet the customer demands.
The second is the rapid shift towards EVs and the mandates that have been placed on dealerships. To take a whole new technology on so quickly makes it difficult to ensure that everything works effectively. I don’t think rural Montana and some flyover states are ready for EVs. The commute is so far between towns and cities in this area, and the infrastructure is not there. It’s a real problem.
Third, the relationship between the manufacturer and the dealer has changed a lot. They used to be there to help you. And right now, you really have to question some of the decisions that they want you to make or that they’re making for you. As dealers, we have to be careful and analyze whether this is a good decision or not.
I am looking forward to serving on the board and being a part of the bigger discussion in regard to manufacturers — listening to where they’re at, what their thoughts are and whether some of these things work for them or not — and pushing for compromise and for what works for dealers.
How do you think the industry will change in the next 3-5 years?
I think we are seeing the direction of vehicle sales in the next few years. With so much information available to the consumer and the ability to buy vehicles online, it’s a race to the bottom number between dealers.
The manufacturers seem as if they’re controlling inventory, building just enough to keep them out of having to have large incentives on vehicles. Doing this keeps profitability up on the manufacturer’s side, but it still comes down to who can get to the bottom number the fastest on the dealer side, which starts to cut into profit margins. That pushes dealers more towards watching their fixed operations, their service and their parts department — to make sure that they’re solid and that everything is running smoothly. Because the variable side will be just that, extremely variable. There will be a lot of ebbs, and it’s going to happen quickly.
What is your biggest career accomplishment?
Looking back, I would have to say it was the semester before I graduated from NDSU. I was promoted from the parts department as a part-time employee to the service manager position at Gateway Chevrolet in Fargo. It was quite an accomplishment because I was only 21 years old. I had to gain the respect and trust of 36 employees in that department — a lot of technicians, service advisors and a lot of different personalities. They were looking to me for guidance and needed to make sure they made a living and stayed busy. There was a lot of decision-making that had to be done. And I did it. That was probably my biggest accomplishment and the thing I am proudest of.
Who have your mentors been? What did you learn from them?
My dad is my biggest mentor. He would always tell me to set goals and make sure that those goals are measurable. This advice has helped me throughout my career.
Additionally, I’ve been very fortunate in that I’ve met a lot of really good dealers from the time I was young and during my career. I made it a point to listen to what they had to say. I was a sponge. The many pieces of advice have been put to good use.
When you mentor others, what are three pieces of advice you would share?
- Be honest and transparent with your customers and always do the right thing, even when it’s difficult.
- Inspect what you expect. If you know something needs to be done or ask employees to do something, ensure you’re following up to see that it does get done.
- Set goals and make sure that they’re measurable.
How long have you been an MTADA member?
We’ve been a member since 1995 when Dad moved to Miles City and opened the dealership. We got involved with MTADA right away just for the support and guidance that other dealers provided.
How did you get involved in the board?
I know Bruce pretty well. He has approached me several times about being on the board. I always told him I was too busy, which was a good excuse, with everything else I had going on. But Bruce is relentless. He just kept twisting my arm. One day, I talked to Dad about it and said I should probably do this. Then, Dad sits back in his chair, takes his glasses off and says, “You know, you really do need to do this. It would be good for you.” And that was that. I called Bruce and told him I would serve on the board.
I am looking forward to serving. I want to help other dealers in any way that I can. Whether it’s new dealers coming in or existing dealers, if there’s something that I can contribute to help them or the board as a whole, that’s what I want to do.