For a family dealership that dates back to 1908, adapting to change has been essential to staying in business. Flower Motor Company CEO Fletcher Flower has seen that evolution firsthand, from the company’s early franchise decisions to the growing influence of digital retail and new competitors. Flower joins today’s CBT Live segment to discuss the challenges facing franchise dealers and how his group is preparing for the next chapter of automotive retail.
To start today’s discussion, Flower notes how he sees Scout Motors’ dealer license in Colorado as a potential turning point for the franchise system. While he said Colorado dealers organized through the Colorado Auto Dealers Association (CADA) responded to the issue, he remains concerned about what could follow if manufacturers are allowed to pursue direct sales. With Scout backed by Volkswagen, the decision has drawn attention from dealers representing other brands, and Flower worries it could encourage additional manufacturers to seek similar arrangements.
Additionally, Flower notes that he remains cautiously optimistic about Stellantis under its new leadership, saying the company and its dealers appear to have reached a turning point after a difficult period. He described the business as beginning to rise again, while emphasizing that dealerships must become more disciplined about monitoring every department and its profitability. Flower also pointed to the importance of consistent leadership at Subaru and Ford, saying he hopes Stellantis can follow a similar path.
Nevertheless, Flower sees digital retail as an area where traditional dealerships must move quickly. Facing competition from companies such as CarMax, his group is working on its technology stack and trying to make the buying process more customer-friendly. He pointed to Carvana’s ability to grow sales volume at acquired stores as evidence that dealers can learn from competitors that have simplified the transaction. Flower said the goal is to create an easy, transparent experience whether a customer shops online or visits the showroom. The challenge for franchise dealers is to deliver that consistency across both channels rather than treating digital retail as a separate process.