Dave Smith goes back to its roots
Dave Smith Motors in Kellogg.
KELLOGG — For a company nearing its 60th anniversary, the past decade has brought a lot of change for Dave Smith Motors.
For decades, the Kellogg-based automotive dealership has worn the crown of being the largest General Motors dealership in the Inland Northwest, with more than a few of the years extending that honor to include being the world’s largest.
Founded in 1965, Dave Smith Motors has been a staple of the Silver Valley and surrounding region, all while remaining owned and operated by the Smith family. However, in 2015, the Dave Smith Auto Group was purchased by RFJ Auto Partners out of Texas, with Ken Smith — son of Dave Smith — moving into a leadership position within RFJ.
In December 2021, RFJ sold its network of 33 auto dealerships to the North Carolina-based Sonic Automotive for a whopping $700 million, with Dave Smith as the crown jewel of the deal. More changes were on the way, including the promotion of Shawn Abbott to General Manager earlier this year.
Bridget Hojem, an administrative assistant to Abbott, explained how the company has navigated the tumultuous waters over the past few years while pivoting and going back to what made them a force in the automotive world.
“We’re back to our old business model, selling volume,” Hojem said. “We’re back to our low low low prices.”
Those low low low prices had been the Dave Smith calling card during their biggest and best years, a catchphrase that appeared on billboards, radio spots, and even the Super Bowl.
During the RFJ era, the dealership changed from its tried-and-true strategy of selling a high volume of vehicles at the lowest possible price and switched to selling fewer vehicles, but at their gross price points.
Volume sales meant that the dealership kept a high inventory of vehicles — When the COVID-19 pandemic hit, the dealership found themselves in an advantageous position of having more vehicles on hand than almost every other dealership in the area. This advantage allowed them to switch their sales method in hopes of maximizing their profit.
“We did really well during COVID,” Hojem said. “We had so much inventory in stock and no one else did and then manufacturers shut down. But then, we never really got out of that COVID mindset, bad habits were formed, and we didn’t get back to what had made us so successful.”
That all changed when Abbott was promoted to GM in June.
As of October, the change back to volume-based sales appears to be working, because, according to Hojem, September 2024 was the dealership’s best sales month since 2022.
“We’re getting back to how we were built,” Hojem said. “It’s why people from all over the country come to Kellogg to buy a vehicle.”
