Connected at NADA 2024 Special Episode: SDADA and SDTA President Christine Vinatieri-Erickson
Greg Uland: Hi, I'm Greg Uland with Reynolds and Reynolds, and this is Connected, live at the NADA show here in Las Vegas. Right now, I get to sit down with Christine Vinatieri Erickson. She is the president of the South Dakota Auto Dealers Association, and, this is kind of a unique role, the president of the South Dakota Trucking Association. Christine, thanks so much for joining.
Christine Vinatieri-Erickson: Thank you. Thank you for the invitation.
GU: Absolutely. So, all right, tell me a little bit about the dual role first.
CVE: Sure.
GU: Because it is unique, right?
CVE: It's very unique. So I'm the only state that has the dual roles with two completely different associations, as far as we are the actual truck drivers, the guys and gals that are hauling our goods down, down the roads–
GU: Yeah.
CVE: COVID showed us how important those truck drivers were, so that's a component of one association. The other association is South Dakota auto dealers. We are franchise, non-franchise, Powersports, RVs, and heavy truck dealers. So, we have a whole big list that we represent, and, you know, a lot of that is because we're a small state.
GU: Yeah. It seems like, I mean, they're related–
CVE: Correct.
GU: But I have to imagine there's a lot of different interests that you're supporting though.
CVE: Correct. There, there are a lot of similarities as far as making sure we're watching, you know the, the CARB states–
GU: Yep.
CVE: And what's happening with zero emissions and all those burdensome regulations coming down from the federal government that really impacts trucking really impacts our auto side as well.
GU: Yeah.
CVE: And so we share those similarities, and obviously we're stronger together in numbers, and so it's, it's nice to really focus on that together as a group.
GU: Yeah, no, that's good. That's good. So, do the relationships carry over? So, when you're thinking about lawmakers, right?
CVE: Right?
GU: And you're, you're trying to get things passed or, or changed, or anything like that, or, or relaxed a little bit-
CVE: Yeah.
GU: I would assume that you have those relationships that you can kind of lean on across the different–
CVE: Correct, yeah. It is, it makes it a little bit easier when you have those two industries that are, are related and build those relationships with legislators. You know, we carried a bill last year in regards to warranty reimbursement that really helped our auto dealers, but it really helped our truckers, truck drivers, and our heavy truck dealers making sure that we had the appropriate laws in place to address warranty reimbursement issues that we were seeing in South Dakota.
GU: Yeah. So, what was that? What was that bill?
CVE: So, what – we were the first state to – imagine a semi. So a semi, 70% of the semi is not made by said OEM; they're pieced together.
GU: Okay, yeah.
CVE: And so, we are seeing some of that happen in the auto industry as well in Powersports, and so we defined what a component manufacturer is.
GU: Okay.
CVE: Really not a sexy topic, if you will, but it was enough for us to say we want those warranties to cover manufacturers that do component parts, too. Everybody needs to play by the same rules.
GU: Yeah.
CVE: And so, we were the first to do that. It was really exciting. I'm happy to report we only had one no-vote out of 105 legislators.
GU: Wow!
CVE: So, I mean, you know, in South Dakota, we love freedom, we love our small-town dealerships, and um, it was really great to just whisk that bill through.
GU: That's great.
CVE: Yeah!
GU: That's great. So, talk a little bit about – about your background.
CVE: Sure.
GU: So, we were talking before we started recording. You don't necessarily have an automotive background–
CVE: Correct.
GU: Which is not a bad thing, right?
CVE: Right.
GU: And you have, but you have a different perspective.
CVE: I do.
GU: So tell me about your background a little bit.
CVE: So, I served in our state house in South Dakota, and then I served on the Sioux Falls City Council, which is about 200,000 people, so combined service, or sometimes they say a sentence of ten years. So that perspective of being elected, knowing what it's like to be lobbied –
GU: Yeah.
CVE: Knowing how you like to be talked to –
GU: Yep.
CVE: What's effective, how much money it takes to run a campaign, and how important it is for associations to have a, a strong, healthy pack.
GU: Yeah.
CVE: And so that perspective that I had, being elected for those ten years, really is what drove me to this role.
GU: Yeah.
CVE: I don't come with an extensive background in automotive, but I've caught on fast and been able to represent our dealerships well over my last two and a half years.
GU: That's great. That's great. So, I'm interested, and I think some of our audience might be too, so dealers obviously are generally influential in their communities, right? And some have aspirations, you know, beyond their community –
CVE: Yeah.
GU: And states and regional and even federal level. So share your experience if you don't mind.
CVE: Yeah.
GU: And I know it's been a little while, but what was it like to go through the election process? I mean how, how does that work? How do you go about starting, you know, how do you go about fundraising?
CVE: Yeah.
GU: What's the process look like?
CVE: So it's, in full honesty, I was not a super political person.
GU: Okay.
CVE: I, I never missed an election. And I knew if I didn't vote, I couldn't complain. So, I just got to the point where I had three small children, and I thought, you know what? I want to leave this place better than I found it. And so my intention of running was making sure my kids had the education system, they had job opportunities, they had access to entertainment, and a good life.
GU: Yeah.
CVE: And so that was really my platform of why I chose to run. And I sat down with my family, and we talked through it, and we knew it was going to be a heavy lift and a heavy ask because I wasn't involved in my political party at all.
GU: Sure.
CVE: And so I, I threw my name out there. I ran in a four-way primary. Nobody knew me, and I was the top vote-getter. We did things differently. Instead of doing the traditional campaigning, I went door to door with my kids in the wagon behind me during the day. I had baseball at night –
GU: Right.
CVE: I had basketball at night. So I didn't have the time to be doing those, maybe functions that other candidates did –
GU: Sure.
CVE: And it worked for me. It absolutely worked for me and my team. And, you know, we made a name for us in that – and I say us because it's not – I'm the candidate, but it takes a huge team of people –
GU: Sure.
CVE: And dollars, to come in. I was really fortunate. My brother played in the NFL for 24 years. So he flew in and did an event for me. And we raised some really good money.
GU: Yeah.
CVE: And so for those that are listening, Adam Vinatieri is my brother, the kicker for Colts and Patriots, and so him coming in was maybe, I, I had a little bit more of a, a leg up than some of the other ones because it brought a pretty big draw.
GU: Yeah.
CVE: But, it's really grassroots. It's, going door-to-door is getting your message out. It's meeting with business leaders and, you know, transitioning into this role now, seeing how important our dealerships are –
GU: Yeah.
CVE: - in their communities with those legislators.
GU: Yeah.
CVE: They have got to have those relationships. So when I come in and say, hey, guys, here's the ask is what we're going to do, I rely on my dealerships to bring us all together.
GU: Yeah. So, how do you scale that, right? When you think about being really involved and going door to door, and it translates not just to, for, you know, for running for office.
CVE: Right.
GU: But in general making those connections on a more personal level. It seems difficult to scale.
CVE: It is, it is.
GU: So how do you do that?
CVE: Well, I, I really believe in investing in people.
GU: Okay.
CVE: And it's all about how you treat people. At the end of the day, people might forget what you said, but they'll know how you treated them. And I really believe that. We had a people-driven campaign when I ran four different races, and we focused on those relationships. What's important to you? How can I represent you and make sure that you're being heard? And that resonated well.
GU: Sure.
CVE: It just changed the culture in my campaign and campaigns. And that's what I've taken into my role as being the president for auto dealers and truckers. Making sure that my members have those relationships and connections, donate back to the high schools and the Little League football and the causes that are important to you. I think that's such a huge component to those relationship-building.
GU: Yeah, yeah. No, it's very, very good to think about. Right.
CVE: Mm-Hmm.
GU: And just always looking at people and, you know, and I think about, I'm gonna keep going back to this because it fascinates me. But this idea of running for office and, it seems like a lot of handshakes to make.
CVE: It is.
GU: Right? Like –
CVE: It is, it is.
GU: And, and how much, how much time did you allocate out of your life –
CVE: Yes!
GU: For, you know, this, this campaign that you, you and your team ran.
CVE: Yeah. So the other thing that was really unique when I ran for city council, it was at large.
GU: Okay.
CVE: So it's the whole city of Sioux Falls. So, I went from a district of 24,000 people to a city of 180,000 people.
GU: Yeah.
CVE: That campaign strategy is way different. And so it's just knocking on doors. It's hosting events, doing meet and greets, setting up coffee at our local grocery store to have people come in, and just being accessible.
GU: Yeah.
CVE: People want to make sure you're accessible. You don't have to have all the right answers –
GU: Sure.
CVE: - but you have to be able to listen.
GU: No, that's good, that's good. So, what was the transition like into your role now?
CVE: Yeah.
GU: How did you, how did you kind of land here?
CVE: Yeah!
GU: Because it is a unique role, first of all, right? You're representing a wide group of entrepreneurs, essentially.
CVE: Correct, yeah.
GU: But, you know, you didn't have necessarily the background that was just like, oh, that makes complete sense.
CVE: Right.
GU: So, how did you land there
CVE: So jobs in the trade association don't always open up, really.
GU: Yeah.
CVE: You know, my predecessor had been there 21 years. And so when this opportunity opened up, there were a lot of candidates that applied. It was about a six-month process to be hired. And so the transition was unique. I love the lobbying aspect of it. And it's drinking from a fire hydrant, learning the automotive and trucking industry. I rely on my peers and, the other ATAEs and other states. We are a family.
GU: Yeah.
CVE: It's much like being in the legislature, but a little different. We're a family. You can pick up the phone and call any state, and they'll take your call and they'll walk you through it. There's no stupid answer or stupid question, excuse me. But we're unique because the challenges in maybe Florida –
GU: Right.
CVE: – aren't the same as South Dakota. Now, we're very politically the same.
GU: Right.
CVE: But they're much larger in Florida.
GU: Yeah.
CVE: You know, there's a few more zeros on the end of their issues than mine. So, but that transition was actually really good. It felt natural to me being, elected to, to being the president. I had some challenges early on to making sure that, those legislators realize that I no longer am elected, and I had to take a very different role. I had to take that hat off.
GU: Yeah.
CVE: And, be a different person, if you will.
GU: Yeah.
CVE: Because you're not elected anymore. It's just different.
GU: Right, yeah. What were some of the biggest surprises for you? You came into this role, and you mentioned you're still learning, right?
CVE: Yep!
GU: You've been here for two and a half years. And there's a lot to learn in this industry.
CVE: There is!
GU: There's never going to – It's never going to stop.
CVE: Right.
GU: You're going to learn something new every single day.
CVE: Yeah.
GU: I think all of us do. What were some of the biggest surprises for you?
CVE: So one of the biggest surprises as I just started was when the announcement of the Ford Model E –
GU: Yeah.
CVE: – and taking that announcement, and really changing the way franchises are looked upon, in our opinion, in South Dakota, we felt it was a fundamental change to the franchise laws and existing agreements. It violated them in so many ways. So here I'm a year in. We're filing protest.
GU: Yeah.
CVE: I'm testifying for a couple of hours, not knowing the industry as well, but knowing people. Again, knowing that you know, here we are in beautiful Las Vegas, right? Think of the population here.
GU: Sure.
CVE: That same ask of investment was the same as Groton, South Dakota –
GU: Sure.
CVE: – who is 1400 people. The investment recouped here in Las Vegas is going to be very, very fast compared to Groton, South Dakota, 1400 people.
GU: Yeah.
CVE: Where in South Dakota, the EV adoption is very small. I think we have probably 2000 to 2500 EVs sold now, which is –
GU: Total?
CVE: Total! Which is like 0.2 percent of all sales –
GU: Right.
CVE: – are EVs. 0.2!
GU: Yeah.
CVE: So, that challenge really, like, I dove in, I dove in. I got to know my dealers very, very, very tight. Because they needed a spokesperson, they needed somebody to represent them. They needed to be, to have a cheerleader to say this isn't right.
GU: Yeah.
CVE: Your investment here is not scalable. And, and so that was a really big challenge going, okay, I'm just starting out. Let's go, let's rock.
GU: Yeah.
CVE: But I think most people that know me know I'm not really afraid of a challenge. You know, when you run for office and you put yourself out there, you're up for those challenges. And so that's been unique. The other thing is, is, you know, working for two boards.
GU: Yeah.
CVE: Similar industries, but very different industries. So it's really balancing your time. And right now, I really need to focus on, the changes in the automotive world.
GU: Right.
CVE: And that's where a lot of my focus has been over the last several months now.
GU: Yeah. So, what are you seeing in South Dakota specifically?
CVE: Yeah.
GU: Right? Because it is you bring up a good point in why your role and these organizations across the country are so important.
CV: Absolutely.
GU: Geography matters, right?
CVE: Right.
GU: Demographics matter. This isn't there's never going to be a one-size-fits-all solution to any problem. Right?
CVE: Right.
GU: There are all these variables that go into pretty much everything that we do.
CVE: Right.
GU: So, in your world, right in South Dakota, what are you chasing? What's top of mind? What are you going after?
CVE: So, you know, as we see all these really, really problematic changes coming out of the federal government, whether it's the shopping rule or zero emissions. We're really being mindful of that because, in South Dakota, you can't have a big maybe truck EV hauling your cattle down the road. It just doesn't work. You're not going to get –
GU: Well, especially not in January.
CVE: No! I mean, we just had a negative 40-degree wind chill last week. And, I mean, my kids didn't have school for two days. They're going to school late then; it just doesn't work for everyone. We are prepared to sell whatever the consumer wants –
GU: Yeah.
CVE: – but that's what's important. What does the consumer want? This should not be government-led. This really needs to be about the consumer. So we're not anti-EV, we're not anti-hybrid, we're not anti-ICE. We will sell whatever you want, right?
GU: Right. Well that's, that's a good point. And you know the, the government and responsibility is a strong word.
CVE: Right.
GU: But they have a perspective –
CVE: A role.
GU: Yeah, that they want to progress and keep things moving forward. And you know, the emission standards are a part of that.
CVE: Right.
GU: But there also has to be a solution.
CVE: Right, right.
GU: Right. You can't, you can't mandate a – it's not even a solution. You can't make it a suggestion.
CVE: Yeah. Right.
GU: If it doesn't work, so.
CVE: No. And I will give you this example to think about in for the, the, the people watching right now to, to think of too: EVs are very, very heavy.
GU: They are.
CVE: So, picture an EV semi, okay?
GU: Yeah?
CVE: They can only haul so much weight per regulation, right? So you now put this super heavy EV on the road. And oh, by the way, how do our dealerships get cars? Semis. Okay?
GU: Right.
CVE: So the semis going to then haul EVs on the back of the semi which are also heavier. Unless you're carrying pillows or feathers, it's just not going to work. And so and plus that range anxiety. So, we want to embrace technology. We want to find better solutions. In my opinion, I think that plug-in hybrid is going to be a really, really good thing for places like South Dakota.
GU: Yeah. Sure.
CVE: Myself, getting in the car and having to drive from Sioux Falls to The Capital in Pierre, I'm not going to make it.
GU: Yeah.
CVE: And that scares me if I have my kids with me or if I'm by myself and it's negative 40.
GU: Right.
CVE: That's a problem. So, for me, if I had a hybrid, I would have those different options and opportunities.
GU: Sure, sure. Well, and it does, it solves at least a portion of the problem –
CVE: Yeah.
GU: – that we're trying to solve with emissions and things like that. So that's a good a good call out in an interesting one. When you think about, you know, your state specifically.
CVE: Right.
GU: But, you know, I would say it's likely not, you know, this better than I do. It's not unique to just South Dakota.
CVE: No, it's not.
GU: I mean, there's a large geography, a large portion of the country that have similar dynamics to what South Dakota does.
CVE: Right. Yeah. Yeah, exactly.
GU: You look at the surrounding states, and then you go east and west. And as long as you're staying somewhat north, you know, a lot of states and a lot of the population in the U.S., certainly the landmass of the U.S., is going to have these same issues.
CVE: Yeah, yeah, the same challenges. They definitely will. And, you know, we are preparing for EV readiness. We're starting to put in some infrastructure. You know, we have an EV readiness plan. So, you know, while I, you know, might be semi-critical here and there, we are prepared and are preparing. It's just, you know, another example I'll give you: I had a dealership that had to charge, I'm not going to give the brand, that had to charge their EV before the customer picked it up.
GU: Right.
CVE: Just like you get a full tank of gas, you get a full charge on your EV.
GU: Right.
CVE: Because our adoption rate is so low in South Dakota –
GU: Uh, huh?
CVE: That charge, one charge of a small EV, was $420.
GU: Wow!
CVE: That's crazy!
GU: Yeah, it is!
CVE: Now, we're working together with our utility companies. I'm also working together with a few of the OEMs to say, let's educate our dealers to make sure they know when to charge and how long to charge. Let's not over overcharge our EVs. There's some small solutions –
GU: Right.
CVE: – and some good wins along the way with that, too.
GU: Well, on the other side of it is, I've talked to a few dealers just this weekend who are talking about, you know, the day supply that they have. You know, an EV is going to sit there for four months, five months, six months before it can be sold. And when you do that, and it's sitting outside, especially in the winter, the battery's not going to hold the charge.
CVE: Nope!
GU: So – but you have to have that vehicle charged up when the customer is ready to buy, or you're not selling that car.
CVE: No, you're not.
GU: And then it's sitting there another two months.
CVE: Right! And cars sitting on the lot obviously don't make our dealerships any money.
GU: Right, right.
CVE: We want to see the product moving.
GU: Yeah. So, you consistently have to keep that vehicle retail-ready and in an EV. There's just there's more to it, right?
CVE: Yeah, yeah.
GU: There's more to it than just –
CVE: It just is a little bit more complicated.
GU: Yeah.
CVE: And we can do it. We can figure it out. But, you have to just really have that plan ready and making sure that you're addressing, addressing the issues that might come up.
GU: Yeah. So what do you see? Also, this one interesting interests me. Looking at auto retailers, right –
CVE: Yeah.
GU: – franchised dealers in the new car world. But then also crossover into motorsports, into specialty vehicles, into even large trucks. Are those dealers the same people, or are they pretty much separate?
CVE: Some of them are. I have several car dealerships in South Dakota that do own some different Powersports brands, some are independent. You know, we have beautiful black hills out in South Dakota.
GU: Right.
CVE: Give a plug for my state. And we just, two years ago, passed a bill that allowed for the licensing of side-by-sides, electric side-by-sides, entitling we title everything in South Dakota. You can have ATVs on the road, all of that. But our laws restricted EVs from EVs side-by-sides and ATVs from being on the road.
GU: It seems odd.
CVE: It's very odd. So we changed that.
GU: Yeah.
CVE: And now that's allowed. If you ever go to the Black Hills, you'll see lots of side-by-sides out in the hills. There's a place for EVs. That's a great place.
GU: Sure.
CVE: That's a great option for that as well as for those commuter cars, too. So, some of the same issues. Obviously, they're concerned about franchise laws as well.
GU: Right.
CVE: So that's always first and foremost the hottest topic that that we're looking at.
GU: Yeah, yeah. Anything, anything new in that world for you? Anything you're coming up against recently with the franchise laws?
CVE: You know, we decided to not bring a whole bunch this year. We are looking for next year, talking about some additional strengthening, the warranty reimbursement, franchise laws, as well as addressing the over-the-air definition and what that looks like and how that's changing, kind of the car-buying process.
GU: Yeah.
CVE: And the expectation of a consumer when they buy that vehicle.
GU: No, that's great.
CVE: Yeah.
GU: It's great. All right. Well, Christine, it's been really fun to chat. I appreciate you taking time. What haven't we talked about that you want to touch on before we hop out of here?
CVE: You know, I just really want to stress that our dealerships have got to maintain those relationships with legislators and be active in their communities. You know, we touched a little bit on it earlier, but I just want to hammer that home because, as a state exec. that I rely on our boots on the ground in those communities. And, you know, for those listening to take the time to get to know your legislators, even if you're not a car dealer, take the time.
GU: Yeah.
CVE: It is so valuable. And they're really good people.
GU: Yeah. And they'll listen, right? To your point.
CVE: They will listen. Yes.
GU: Alright.
CVE: You might not like their decisions all the time, but they'll listen!
GU: All right. Well, Christine Erickson, Christine Vinatieri-Erickson, sorry.
CVE: Thank you.
GU: President of the South Dakota Auto Dealers Association, thanks so much for joining me.
CVE: Thank you. Thanks for having me.