OFFICIAL PUBLICATION OF THE MONTANA AUTOMOBILE DEALERS ASSOCIATION

The Next Chapter

An Interview With Don Kaltschmidt

Don has been a constant and steady voice in MTADA, NADA and throughout the state of Montana for decades. As he closes the door on this chapter of his life and heads into retirement, we wish him all the best and thank him for his years of service.

We recently had the opportunity to sit down with Don and talk about his career, his thoughts on the industry and his advice to the next generation of dealers as they take the reins of leadership. The following are excerpts from our conversation.  

How long have you been a dealer? How did you get started in the industry?

I’ve been a dealer for 34 years, which is half my life, and it’s been a good ride. I started in the automobile business shortly after I got out of the Marine Corps in 1980. From 1980-1985, I worked at a dealership in southern California. I started as a salesman and worked my way into management.

In 1986, I made the decision to come back to Montana and found a job managing the Chevrolet dealership in Whitefish. I was working for Jim Dowen and his partner Tommy Thomas. Unfortunately, they had a parting of the ways, so I asked Tommy if I could be his partner. He was planning on selling the dealership but agreed to give me a trial run. So, for about a year, I was his partner.

Small-town living has a definite upside. My sister worked right up the road at a bank in Kalispell, so our family name was familiar to the locals. I approached an officer at the bank she was at and asked for a loan to buy out my partner. The bank gave me a loan, and I ended up buying the Chevrolet dealership in Whitefish.

About a year later, a gentleman walked into my office and said, “Hey, I’ve got a car dealership for you.” I wasn’t looking to buy another dealership and I let him know that. He insisted that I consider the deal, as the price was right, and he slid a piece of paper over to me. I looked down at the number that was written on it and was shocked. The price to buy this dealership in Libby was only $60,000! I paid close to $1,000,000 for my little dealership in Whitefish.

I’m a glutton for punishment, so I bought the Libby store. A friend helped me run it. At the time, there were about 250 jobs at the mill and the mine. The business started out pretty good, but things changed — the mill shut down, and the mine laid off almost everyone. I ended up selling the dealership and when I left Libby, there were about 15 jobs left at the mine. I learned a lot from that experience. 

I ended up building a new dealership in 2001 right off of U.S. 93 in Whitefish. Then, in 2010, I bought the Subaru dealership and in 2011, the Chrysler Dodge Jeep Ram dealership. We currently have about 120 employees and three rooftops. The Lord has blessed me in my efforts. 

I give a lot of kudos to my wife and my family for putting up with me being away so much. I didn’t graduate from high school; I had to learn everything by trial and error and to be able to achieve the success I have goes to show you what a great country America is. I’m so grateful to my family for supporting me as we went through this. 

How has the industry changed over the years?

The industry has changed a lot, some for the better, some for the worse. 

When I started in the industry, there were people lined up to go to work. You had to prove yourself to keep the job and could get fired easily if you didn’t produce. Car dealers today are more focused on their customers and their employees than they’ve ever been. There are fewer people lining up to work in the industry and developing employees from within is important. 

Dealers are more diversified. When I started, I was an anomaly because I had a body shop at my dealership. Most dealers just had a new and used car department and a service department. As margins have decreased, dealers have to work more on volume. 

In the 1980s, 1990s and even into the 2000s, customers didn’t have immediate access to purchasing cars like they do now. With all of the online information out there, the business is more competitive than ever. 

Our industry is entrepreneurial. This is one of the last industries that is this way, where someone like me, having come from nothing, can work hard and attain the American dream. Stories like mine are not as prevalent today, and that is sad. 

Finally, a downfall of the industry is the factory control of car dealerships. It’s a lot different than it used to be back in the day. Manufacturers typically stayed out of our way. Today, they have put so many controls in place. Of course, we fight back with franchise laws, with which we’ve been very successful here in Montana and across the country. 

With all of the changes, one interesting thing to note is that naysayers have been talking about our demise ever since I’ve been a dealer. But they underestimate the flexibility of the automobile dealer. We are like cockroaches. We always find a way to survive. We know how to adapt. 

Do you have a favorite memory from your time as a dealer?

I don’t have a specific favorite memory, but I am thankful for the opportunity that I was given to serve in our community, in MTADA and in NADA. I’ve met so many wonderful people and have created great relationships with many industry leaders and elected officials. 

I have so much respect for all of the people I looked up to as a young dealer who would eventually retire, yet took the time to help me if I needed it. 

I remember all the bigger-than-life dealers who were characters in their own right — that’s the other thing that’s changed, we don’t have as many characters in the business as the industry has become more corporate. 

I appreciate my employees, some who have been with me for almost 30 years. Watching them mature and grow has been a blessing. When I started out, I had 30 or so employees, and I knew every one of them personally. I knew about their life, their spouse and their children. I would talk to them all the time. Now we’ve gotten bigger, and as I head into retirement, my son has that job as he is taking over the dealership.

How long have you been involved with MTADA and NADA? 

I’ve been a member of MTADA since I started as a dealer. I’ve stayed very active in the association because of the advice I received from a mentor. He was very active in MTADA, and he told me how important that was. I will never forget that. 

We’re better as a unit. One person doesn’t have a big voice, but when all the dealers in the state of Montana come together, we have a strong voice.

I’ve been the state NADA director for nine years. I’ve been able to serve on the finance, regulatory and legislative committees. There is a lot of travel involved, going back and forth from here to D.C., but it’s worth it. 

What advice do you have for the next NADA director?

Craig Tilleman will be taking over from me. He’s a solid second-generation dealer. Craig is very, very smart, smarter than I am, and he’s going to represent Montana very well. 

He’s politically involved, not to the level I am, but he will be. I advise him to get more politically involved because that is what it takes to represent automobile dealers. I would also say get to know everybody and work on your relationships, get on some boards that you’d like to serve on and have some fun!

Any last thoughts to share with your fellow dealers?

Well, I think the biggest thing is that you are very lucky if you’re a car dealer. We are in one of the last entrepreneurial businesses out there. You get to be a big part of your community. In a state like Montana with many small towns, the communities count on you, and you have an opportunity to give back. The Lord has blessed you, so give those blessings back. 

You have the opportunity to develop people within your organization. And if you develop them, it will make your job very easy. You are only as good as the people you surround yourself with. I learned that the hard way when I used to think I could do it all myself. As I got bigger, I couldn’t do it myself anymore, and I had to learn to rely on people. As long as I treated them well and paid them a living wage, they did not disappoint me.

At the end of the day when they put you in the ground, the only thing you’re going to have is the way you treated people — your customers, your team members, your business and all the people in your community. You have an opportunity to make a difference in people’s lives, don’t waste it. 

Congratulations, Don! Thank you for your years of service and leadership. Your hard work, dedication and achievements may never be matched. Thank you for setting the standard for all of us. We wish you the happiest of retirements!  

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