Pub. 60 2019-2020 Issue 4

10 are 1st generation dealers, which means that for these dealers there’s a lack of “auto culture,” if you will. The generational training is lacking, as is the access to capital and long-term OEM relationships. Membership in associations like TADA make a big difference in bringing training and networking to minority members, and NAMAD, of course, is solely focused on bridging the gap as well. For Fernando Varela, however, it’s personal. He’s a 1st gen- eration dealer. He is celebrating 25 years in the auto industry, and he has been very successful, but the success has been a journey — one that he now shares with his son, the 2nd generation in Fernando Varela’s dealership. What he has learned is this: operate with a realistic business plan, save money for that proverbial rainy day — because it will always come — and above all control expenses. He also recommends finding a community bank to do business with, and working to create a banking relationship. Minority dealers especially need that banking relationship. When asked about how COVID-19 will affect the auto industry, Fernando Varela sees it as another challenge and an equal opportunity. The challenges will be cash liquidity, a lack of inventory and the extra precautions that all deal- ers will need to take to keep their employees and customers safe and healthy. However, with change there are always opportunities, and COVID-19 will definitely be a learning opportunity and will push many dealers back to the basics of taking care of their customer base and looking at their business in more creative ways. COVID-19 has forced all businesses to take a hard look at their business process and adapt. Not necessarily a bad thing in the long-term. The auto industry is resilient, and as Fernando Varela puts it, “For most in this business, the current situation is not our first rodeo. We’ve seen downturns before, significant ones, and we rebound. We’ll do it again.”   FERNANDO VARELA — CONTINUED FROM PAGE 8 When asked about how COVID-19 will affect the auto industry, Fernando Varela sees it as another challenge and an equal opportunity. The challenges will be cash liquidity, a lack of inventory and the extra precautions that all dealers will need to take to keep their employees and customers safe and healthy.