EDITOR'S
               CORNER         

CarMax was made for folks like me. I can surf its database of cars and imagine myself as a trophy wife, driving a Suburban, talking on my mobile phone on the way to the supermarket before picking up Mary Blair from lacrosse. Or I can dream of being a perky university student, cruising around campus in my don't-give-a-damn Jeep Wrangler, a vision of girl power.

But reality bites hard: In the summer of 1995, my husband and I drove away from CarMax with the trusty Golds-mobile. While we were not thrilled with the choice of cars within our budget, buying from CarMax was stress-free, almost fun. We were on a long vacation so we took our time, flirting with various auto options. And because we were shopping mid-week, we had the full attention of our salesman. He was new to the car dealership game, and he was happy to take a back seat -- both in and out of the car.

Believe me, we tried the traditional route, trawling the "motor miles" along West Broad Street and Midlothian Turnpike. But I was fresh off the airplane from London, and the hard-sell made me either laugh or gag. One dear salesman, who was right on retirement age, tried a trusted sales pitch: "Young lady, what can I do to get you to drive away in this beautiful car today?" It nearly broke my heart to tell him: "Nothing on earth, sir."

But things have changed since 1995, with many of the traditional dealerships taking a more soft-sell approach. Our story about auto dealerships reveals an industry beset with challenges from consumers, technology and consolidation. Yet some things do remain the same: Most dealerships are still family-owned and operated. The difference nowadays is that one of those family members is probably an MBA, attorney or accountant. It's this new blood that's responsible for some innovative business maneuvers, such as creating REITS or expanding overseas.

One Richmond dealer -- Haywood "Huddy" Hyman -- has recently opened three dealerships in Paris to sell the new Smart Car, a venture of Daimler-Benz.

The Europeans met Hyman when they came to Virginia to study the Saturn sales-and-service strategy. Hyman -- who, by all accounts, likes nothing more than a calculated risk -- saw an opportunity and headed full throttle for France. Time will tell if his venture will be a Ford or an Edsel.

One thing is for sure: While the Smart Car may catch on in Europe, the only micro-cars you're likely to see in America are the ones that kids ride for 50 cents at supermarkets. It's a cultural thing. In England, we would head off for a weekend with four adults plus luggage in a Mazda 323; we now struggle to squeeze two adults and a shaggy dog into the Goldsmobile. I could adapt again, but once you've driven a Slumberking, it's hard to go back to a futon.

Nicolee Stevens
Associate Editor

© DECEMBER 1998, VIRGINIA BUSINESS MAGAZINE