EFG Companies announced three new additions to its national field team, tapping professionals who have experience at places such as Cox Automotive, dealerships and academia.
According to a news release distributed this week, Jay Gordon, former director of enterprise accounts at Cox Automotive, has joined EFG as regional vice president of dealer services.
The company also said Brian Townsend and Shane Hildy joined the powersports division serving clients as account executives.
“At EFG, we take pride in the caliber of our team members and expertise we provide our clients,” EFG Companies president and chief executive officer John Pappanastos said in the news release. “Our mission has always been to mobilize a talented team to engage intensely, reliably, transparently, and innovatively to drive profitable results for our clients.
“The addition of Jay, Brian, and Shane to our team is an extension of our efforts to provide industry-leading support for our clients,” Pappanastos continued.
The company highlighted Gordon brings 25 years of experience in business development and strategic account management to his role. EFG indicated Gordon will be focused on expanding and cultivating the company’s consultative team to serve as trusted advisors, maximizing client growth and F&I profitability.
At Cox Automotive, Gordon delivered year-over-year growth as a President’s Club member.
Gordon began his career as a field manager for Reynolds and Reynolds, where he eventually served as the senior director of major accounts. While there, Gordon was recognized as a member of the 300 Club/100% Club for more than a decade. He was also presented with the Field Manager of the Year Award in 2000.
EFG explained its powersports clients will benefit from Townsend’s unique combination of experience within powersports and automotive dealerships. After a successful career as a tenured business and communications professor for Louisiana Tech University, Townsend made his passion for motorsports his career.
Since 2014, Townsend has trained and managed powersports sales teams, tripling back-end income within one year by maintaining a PRU of up to $2,000 in F&I, and generating a front-end gross average of up to $4,000 per unit.
Having led teams both large and small, EFG said Townsend “is well equipped to enable clients of all sizes to achieve their profitability goals.
Finally, the company indicated Hildy brings more than 15 years of experience in powersports management to his position as an account executive at EFG, where he will apply his award-winning management techniques and in-depth ownership experience to drive greater profitability for EFG’s clients.
Most recently, Hildy served as the sales and finance manager at Riva Motorsports in Miami. During his tenure, Riva Motorsports was recognized as a Top 5 Yamaha White Diamond Boat Dealer for three consecutive years, as well as a Top 5 Yamaha White Diamond PWC Dealer. The store also was recognized as the No. 2 Yamaha ATV Dealer in the U.S. and was a two-time winner of Suzuki’s Top 50 Dealer.
Hildy also purchased and developed Rockstar Motorsports in Davie, Fla., where he increased annual sales by 200% per year for the first two years and was recognized by Powersports Business Magazine in Power Profiles.
“The powersports industry has experienced record quarter-over-quarter sales and revenue metrics, but inventory and market share continue to be challenges for retail dealers,” said Glenice Wilder, vice president of the powersports division at EFG Companies.
“With the addition of Brian and Shane to our team, we are ramping up the level of on-the-ground powersports expertise to turn market challenges into profitable opportunities for our clients,” Wilder continued.
EFG Companies chief revenue officer Eric Fifield elaborated about what bringing this trio of new teammates into the company fold means in the short term and beyond.
“A company’s value is reflected in the talent of its leaders, and these individuals bring a tremendous skillset to our team,” Fifield said. “While the economy is rebounding, the retail sales model at both automotive and powersports dealerships has changed significantly.
“As trusted advisors, we are committed to providing our clients with exceptional insight, experienced guidance, and proven business acumen to deliver profitable solutions to their business challenges,” he went on to say.
Car Capital continued to bolster its resources to establish itself as an up-and-coming auto-finance technology company that strives to get any deal bought no matter the consumer credit background.
After finalizing a funding round in March and a line of credit in April, as well as gaining two veteran advisors in May, on Tuesday the company announced the appointment of a new chief information officer. Joining Car Capital in this role is John Chipps, who the company highlighted as having an impressive background in the design, development, and delivery of cost-effective, high-performing digital applications and infrastructures.
Chipps most recently served as the chief executive officer for SEEK CIO and has held C-level technology management positions for multiple industries in both for-profit and non-profit organizations, after he first established his career as a consultant with EDS, Texas Instruments, Lennox International and Microsoft.
Chipps prior experience includes serving as the chief information officer for the Women’s Foodservice Forum, Xpressdocs and Batrus Hollweg International.
Within the financial services sector, Chipps was CIO at Giggo.com where he hired, developed, and organized their IT function from the ground up and CIO and executive manager for HD Vest Financial Services where he was directly responsible for completely revamping their entire systems, network, database, and programming infrastructures, leading to a successful acquisition by Wells Fargo.
“I am happy to welcome John Chipps as our chief information officer,” Car Capital co-founder and chief executive officer Justin Tisler said in a news release.
“John brings over 25 years of experience in technology, executive management and IT consulting to Car Capital,” Tisler continued. “He will help to guide the technology department and support our company growth as an integral thought leader.”
The company went on to mention Chipps’ experience will be instrumental in supporting Car Capital to enhance its propriety web-based platform, Dealer Electronic Auto Loan System (DEALS).
With 100% automated instant approvals available to their dealer partners through DEALS, Car Capital insisted that it makes it possible for any driver regardless of credit history to feel confident in the ability to purchase a vehicle when entering the dealership.
“Car Capital’s commitment to leveraging digital and cloud technologies to ensure a completely digital auto financing experience for its customers, as well as their goals around operational efficiencies for its teams, align perfectly with my expertise,” Chipps said.
“I look forward to leveraging my experience in my new role at Car Capital as the company continues to optimize processes and solve challenges leveraging technology,” he went on to say.
Spireon, a provider of risk mitigation services and other technologies to subprime auto finance companies and buy-here, pay-here dealers, announced the promotion of one of its executives to be chief technology officer.
Previously Spireon’s senior vice president of engineering, the company said through a news release distributed on Tuesday that Prem Hareesh now is CTO. In his expanded role, Spireon highlighted that Hareesh will drive technology and product innovation across business units to benefit its more than 20,000 customers and 4 million connected vehicles.
And as CTO, the company indicated Hareesh will provide executive leadership for the design and management of new product development and support for all Spireon hardware, software and platform services.
“Both the scope of Spireon’s business and our track record of innovation have expanded in recent years, and Prem’s technical leadership has contributed significantly to these achievements,” Spireon chief executive officer Kevin Weiss said in the news release. “During this time, we’ve brought dozens of new products to market and enhanced the capabilities of our award-winning, cloud-based NSpire platform, which now handles over 75 billion messages a month.
“As he takes the reins of the entire technology team, I am confident Prem will further accelerate innovation, performance, and scalability to ensure Spireon continues to deliver best-in-class solutions to our customers,” Weiss went on to say.
Spireon mentioned that it has experienced significant transformative growth during Hareesh’s nearly four-year tenure at the company. The introduction of new product offerings, combined with platform innovation and a sustained commitment to delivering white glove customer service, have been key to fueling the company’s success in the automotive and fleet transportation IoT businesses.
A tenured engineer with more than 20 years’ experience in cloud-based platforms and technology, Hareesh brings a wealth of experience to the CTO role.
Prior to joining Spireon, he held engineering leadership positions at Cisco and Ericsson, among other noted technology brands. He has successfully led teams to adopt lean startup models in high growth organizations as they continue to scale.
“Spireon’s commitment to innovation and improving the customer experience is unparalleled, providing endless opportunity to develop and enhance products and services that meet and exceed our customers’ needs,” Hareesh said.
“I’m excited about what’s to come as we uncover new ways to tap the power of advanced connected vehicle technology to help businesses run smarter and people drive safer,” he added.
PAR North America chose an executive with almost two decades of industry experience to be its vice president of sales and client relations.
According to a news release distributed on Thursday, the business unit of KAR Global announced the appointment of Ryan Hawley, who will lead a fast-growing team of sales professionals and liaise with clients across the country.
“Ryan brings a wealth of experience to this role and we are excited to see where his leadership takes the sales team,” PAR president Lisa Scott said in the news release.
“We are confident his experience with customers will promote focused relationships while ensuring phenomenal client experiences to achieve and maintain a competitive advantage,” Scott continued.
As vice president of sales and client relations, the company indicated Hawley will focus on connecting PAR customers with the right solutions at the right time to best meet their needs, and on communicating PAR’s upcoming product pipeline.
Hawley will also be charged with ensuring an exceptional customer experience, providing an opportunity for clients to share feedback on their priorities, pain points and ideas.
Prior to joining PAR, Hawley spent the last four years in vice president roles in the SaaS, automotive fintech and commercial lending fintech spaces. He brings more than 18 years of experience in team building, leadership development and relationship management to his new role.
“I’m thrilled to join PAR — a well-known leader and innovator in the industry,” Hawley said. “I cannot wait to build upon the strong foundation already set with the sales and client teams nationwide and look forward to collaborating with our clients to meet and exceed their goals.”
This week, GWC Warranty welcomed an experienced executive to be its new senior vice president of sales.
With a strong track record of managing top-performing territories, developing new channels of business, and building revenue-producing relationships, GWC said James Virgoe will lead the company’s sales organization with a focus on driving organizational innovation and growth as the industry continues to evolve.
Before joining GWC, Virgoe held sales leadership roles with numerous companies in the automotive technology sector, including Affinitiv, AutoONE Media and Dealertrack.
The company that’s a part of APCO Holdings mentioned in a news release that Virgoe also worked directly with dealers, general managers, and sales to optimize F&I and revenue production with American Financial and Automotive Services.
“James has played a pivotal role in both developing the business strategy and leading the teams responsible for its execution for some major players in our industry,” APCO Holdings chief executive officer Scot Eisenfelder. “I have no doubt that James will further accelerate our momentum and expand our footprint in the market.
“We are looking forward to leveraging his experience to maintain our trajectory and drive even greater success in the years ahead,” Eisenfelder continued.
Commenting about his new professional challenge, Virgoe added, “I’m excited to join GWC during a time of tremendous opportunity.
“As the needs of both dealers and consumers change, I look forward to leading this high-performing team as we continue to grow as an industry leader in the F&I space,” he went on to say.
AUL Corp. reinforced its executive leadership this week to ensure the F&I provider remains on solid financial footing.
First, AUL appointed industry veteran Dennis Mara as the firm’s new chief financial officer after four months of serving in the position on an interim basis as he led the successful implementation of the firm’s new accounting system.
In addition, Elizabeth Gutierrez has been promoted to controller, having previously served as AUL’s financial reporting and analysis leader.
Both announcements come as AUL recently celebrated its most successful year on record in 2020.
Mara came to AUL with more than 25 years of financial leadership experience, the last 15 of which were spent in the F&I industry.
Most recently, Mara served as vice president of mergers and acquisitions and finance for Portfolio Group, an F&I provider based in Dallas. Prior to that position, Mara served six years as chief financial officer for Interstate National Dealer Services, a vehicle service contract (VSC) administrator and underwriter based in Atlanta.
“Dennis brings tremendous industry knowledge and financial experience to the AUL family. He is especially masterful in financial planning, budgeting, and accounting processes, and has a long history of increasing efficiencies and improving profitability,” AUL president and chief executive officer Jimmy Atkinson said in a news release.
“His expertise, passion, and leadership over the past four months have demonstrated that he is the right person to lead us forward,” Atkinson continued.
Having started her AUL career as a customer service representative 20 years ago, Gutierrez’s rise to the top continues, becoming one of the key executives of AUL’s finance team.
Not satisfied with her tremendous professional success, the company highlighted that Gutierrez’s continued work in the community is just as laudable, having been honored in 2020 with the North Bay Business Journal’s Latino Business Leadership Award for her local philanthropic contributions.
“As a president and CEO, it is always most gratifying to watch and experience the growth of one of your own, both from a professional and personal perspective. Elizabeth truly embodies the spirit of AUL, where the care of fellow employees and customers is paramount. Her promotion to controller is most deserved,” Atkinson said.
These organizational moves follow the AUL’s best year (2020), and best month on record (March 2021). These records arrived during the firm’s first full year as a full-service F&I provider, after adding GAP and a full suite of ancillary products in April 2019.
Further, AUL introduced popular technology and hybrid/electric vehicle and hybrid/ electric battery coverages last year that helped accelerate the firm’s growth.
For more information about AUL’s offerings, visit www.aulcorp.com.
With an eye toward the future, JM Family Enterprises is turning to an executive with the company for the past 24 years to be its interim chief financial officer.
Taking on the CFO role temporarily as well as continuing to be group vice president and treasurer is Eric Gebhard, who now will oversee all financial operations for JM Family and its business units.
JM Family highlighted in a news release distributed this week that Gebhard has a deep understanding of the company's businesses, including how the finance organization helps support their growth and ongoing success.
“Over the years, Eric has built strong, effective relationships both internally with associates and leadership teams and externally with rating agencies, banks and auditors,” JM Family president and chief executive officer Brent Burns said. “Eric’s wealth of experience positions him well to lead our organization’s financial teams and strategies.
"Additionally, with plans to retire in the next few years, Gebhard will assist the company in seeking a long-term CFO, playing a crucial role in the recruitment and onboarding of JM Family’s future selected successor,” Burns continued. “We appreciate Eric's dedication to our company and are confident in his leadership.”
Credit Acceptance Corp. made two major announcements on Thursday afternoon; one involving top company leadership and the other in connection with a multi-million-dollar settlement with a state attorney general.
First, the finance company that specializes in subprime paper said that Brett Roberts, Credit Acceptance’s chief executive officer and president and a member of the company’s board of directors, will retire at the close of business on Monday.
Credit Acceptance continued in a news release that its board has unanimously elected and appointed the company’s chief financial officer, Kenneth Booth, as the company’s new chief executive officer and president and as a director, a move that will be effective Monday.
Meanwhile, contained in a filing registered with the Securities and Exchange Commission on Thursday, Credit Acceptance said it reached a settlement with the Commonwealth of Massachusetts and its attorney general in connection with a host of allegations.
The company estimated a probable loss of $27.2 million in association with the matter, all of which was recognized as a contingent loss during the first quarter.
More on executive moves
Roberts spent nearly two decades in the top leadership position at Credit Acceptance, which reversed its Q1 results, going from a consolidated net loss of $83.8 million, or $4.61 per diluted share, during the opening quarter of 2020, which was impacted by the pandemic, to consolidated net income of $202.1 million, or $11.82 per diluted share, during the opening quarter of this year.
“I think I speak for all at Credit Acceptance in saying that Brett’s decision to retire came way too soon, but we are extremely grateful for his nearly 30-year commitment and loyalty to the company,” said Tom Tryforos, the company’s lead director.
“For the past 19 years, Brett served as the company’s CEO,” Tryforos continued in a news release. “Under his leadership, and with the support of the rest of the management team, we built a world-class company and culture with an intense and deeply-embedded focus on changing lives.”
During Roberts’ tenure as CEO, Credit Acceptance highlighted that adjusted net income per share grew at a compounded annual rate of 24.3% per year from $0.62 in 2001 to $38.26 in 2020, and economic profit improved from a loss of $3.2 million to a profit of $471.3 million over the same period.
The company added that Roberts’ leadership propelled its GAAP net income per share to grow at a compounded rate of 21.6% per year from $0.57 to $23.47, and GAAP net income improved from $24.7 million to $421.0 million over the same period.
Credit Acceptance noted that Booth joined the company in January 2004 as director of internal audit. He was named chief accounting officer in May 2004 and chief financial officer in December 2004.
Beginning in August 1991 until joining Credit Acceptance, Booth worked in public accounting, including as a senior manager at PricewaterhouseCoopers.
“Ken Booth’s appointment as CEO is a natural, evolutionary step. He is a highly respected and proven leader with deep knowledge of the company’s business and we are very fortunate to have him as CEO. Under Ken’s leadership, we are confident Credit Acceptance’s business and culture will thrive for many years to come,” Tryforos said.
Roberts echoed the assessment of Booth as well as the caliber of the executives guiding Credit Acceptance.
“The company is in good hands,” Roberts said in the news release. “We have a remarkably talented senior leadership team. The seven executives that comprise the senior leadership team have over 140 years of combined experience at the company.
“Our board of directors includes three outside directors who have tremendous experience and wisdom and care deeply about our company,” Roberts continued. “I look forward to watching the company’s success under Ken’s leadership.”
And along with the actions involving Roberts and Booth, Credit Acceptance also announced a new board member who will join the group on May 3.
Vinayak Hegde will be joining the board as an independent director, prompting Roberts to say about Hegde, “whom I know and for whom I have great respect.”
Hegde served as the president and chief operating officer of Blink Health for nearly a year, culminating in March.
Prior to that tenure, Hegde served as the chief marketing officer of Airbnb Homes. He was responsible for the growth and marketing of its global business, which grew to $4.8 billion in revenue and more than $38 billion in bookings during his tenure.
Previously, Hegde served as global chief marketing Officer at Groupon where he managed marketing, national sales and revenue management. He launched its brand campaigns and growth strategy, which grew to service more than 50 million customers worldwide with over 160 million Groupon app downloads. He led Groupon’s acquisition of LivingSocial.com, an online marketplace for users to buy and share things to do in their city, serving as President after the transaction.
Before Groupon, Hegde spent more than 12 years at Amazon, where he served as general manager for Amazon Smile, Amazon Goldbox, the CRM program and all social media channels and led product and engineering for Amazon’s traffic and marketing organization.
Hegde also sits on the boards of directors of LifeVantage and Gannett.
“We are looking forward to adding Vinayak to the board,” Tryforos said. “His operational experience, coupled with his proven history of driving strategic growth, will be a benefit to both the board and management.”
Additional details triggering settlement
In the other major company announcement, Credit Acceptance used that SEC filing to recap its journey to the settlement with Massachusetts.
Back on Dec. 4, 2014, Credit Acceptance said it received a civil investigative demand from the Massachusetts attorney general relating to the origination and collection of non-prime installment contracts in the state.
Then on Nov. 20, 2017, the attorney general sent Credit Acceptance a second civil investigative demand, seeking updated information on its original civil investigative demand, additional information related to the company’s originations and collections, as well as information regarding securitization activities.
“In connection with this inquiry, we were informed by representatives of the office of the attorney general that it believes that the company may have engaged in unfair and deceptive acts or practices related to the origination and collection of auto loans, which may have caused some of the company’s representations and warranties contained in securitization documents to be inaccurate,” Credit Acceptance said in the newest SEC filing.
Fast forward to July 22, Credit Acceptance said it received a third civil investigative demand from the attorney general asking for updates on previously produced data and additional information related to the company’s originations.
Then on Aug, 30, the AG served Credit Acceptance with a complaint filed in Massachusetts Superior Court in Suffolk County, alleging that the company engaged in unfair and deceptive trade practices in subprime auto financing, debt collection and asset-backed securitizations in the commonwealth in violation of the Massachusetts Consumer Protection Law, M.G.L. c. 93A.
Credit Acceptance indicated the complaint sought injunctive relief, restitution, disgorgement, civil penalties and payment of the commonwealth’s attorney’s fees and costs.
On March 15, Credit Acceptance said the court entered an order denying a motion by the company to dismiss four of the commonwealth’s seven claims and granting in part and denying in part a motion by the commonwealth for partial summary judgment on three of its claims.
Finally, on Tuesday, Credit Acceptance said the company and the commonwealth reached an agreement in principle to settle this lawsuit, generating the contingent loss of $27.2 million in the first quarter, which reduced its consolidated net income and adjusted net income by $20.9 million, or $1.22 per diluted share.
Portfolio’s newest board member certainly has significant familiarity with how the F&I industry functions.
The company announced this week that Kelly Price has been appointed executive vice president of strategic ventures and has joined the company’s board of directors. Price is the founder of National Automotive Experts and NWAN, a Strongsville, Ohio-based reinsurance and F&I products provider and administrator.
Price brings a significant amount of insight to the Portfolio board from her 30-plus years in the industry, including her deep expertise in the areas of automotive retail, claims administration, business development and captive insurance management.
“We are very pleased to have Kelly join our board and our executive team,” Portfolio’s president and chief executive officer Brent Griggs said in a news release. “Her entrepreneurial approach to business is a great fit for Portfolio, and she has much to contribute to our board with the benefit of her experience leading NAE/NWAN for the past 25 years.”
Price founded NAE/NWAN in 1996 after serving as vice president of finance with a major dealership group. Portfolio acquired the company last year, combining complementary sales forces and geographic territories.
“Kelly is a fantastic addition to Portfolio Group’s board of directors,” said Chris Ritchie, a principal at Abry Partners. “She brings a new set of perspectives and experiences to the table, and we believe that Kelly is a huge asset to Portfolio as we continue to invest in and grow the company.
“We’re fortunate to be partnered with Kelly and look forward to the future together,” Ritchie went on to say.
With at least one store owner praising the actions, National Auto Care (NAC) reinforced its team with experts focused on two areas of great interest to dealerships: profits and training.
The F&I product provider announced the addition of two key leaders: Corey Smith as fixed operations training manager and Coby Mavroulis as vice president of profit participation programs.
The company highlighted both Smith and Mavroulis come to NAC with extensive industry experience, enabling the company to make great strides in helping its agency partners and their dealer clients build wealth and grow their businesses.
Smith has nearly 20 years of fixed operations experience and is an industry-leading expert in service drive training, process improvement and business development. He also has a background in broadcasting and will launch a National Auto Care podcast and blog focused on the customer experience in the service drive and fixed operations.
Mavroulis began his F&I career more than a decade ago and gained valuable dealership experience before transitioning to roles in reinsurance and profit participation. In this role with NAC, Mavroulis will focus on providing expertise and guidance on what programs are best for each dealer today and for years to come.
“With all of the new and unique programs NAC offers, it is critical to have someone with the experience, knowledge and drive that Coby has to provide dealers and dealer-owned captives with all of the information and options they need to maximize their returns,” National Auto Care chief executive officer Tony Wanderon said in a news release.
“Our goal is not to be thought of as a vendor, but a true partner for everyone we do business with,” Wanderon continued.
In the short time Smith and Mavroulis have been part of the NAC team, the company said it’s already hearing just how impactful they have been with dealers, captives and fixed operations.
David Dyson is one of the owners of Barber-Dyson Ford in Elk City, Okla.
“I’m very glad Coby has joined NAC,” Dyson said. “His attitude and experience are invaluable. Coby made a huge difference in our business. Our grosses and customer service in F&I would not have been the same without him. Barber-Dyson Ford is very excited about the future with Coby on board.”
For more information on NAC’s profit participation programs, or to be featured in its upcoming fixed operations podcast, send a message to [email protected].
