This article conveys a candid and strong message of caution for any business or HR leader, and it may resonate with you; it’s not exclusive to the automotive industry. It’s a powerful reminder that no organization, big or small, is immune to such risks. What happened here could happen anywhere. A similar situation may catch you off guard before you even have time to react. This may prompt owners of business houses or governance boards to stop, think, and craft a “Plan B” or even C & D for business continuity and progression beyond their current hero leadership.
The story below focuses on the success and downfall of what was to be the next frontier in business success: it’s how a heavyweight automotive dealership group in a region outside ours went from critical care announced by the OEM to becoming the benchmark of success and back again to critical care status and eventual sell-off of the business. In simple terms, “Zero to Hero and Back” within a few years.
The Dealer’s Glory
The year was 2010, and the news of the aftershocks of the global financial crisis filled the tabloids across the world, stealing the show and gravely impacting the automotive industry. Another story was quietly about to be set in motion.
In stepped Unstoppable Motors (name changed for obvious reasons), an automotive dealer group on the brink of irrelevance. Sales were stagnant, customer satisfaction was low, margins eroded, and employee turnover was alarmingly high. Not for long, however.
In came the anchors to Unstoppable Motors, the winning formula, and the turnaround duo: CEO Fred and HR Director Sonia (names changed). They skyrocketed the P&L and every imaginable performance metric and KPI of the business within a short spell of time.
Building a Winning Team
Arriving within months of each other, Fred and Sonia worked as if they had been partners for years. Fred brought vision and bold strategy; Sonia built a people-first culture. Together, they rolled out deceptively simple but transformative initiatives that eventually drove success:
- A leadership pipeline to prepare mid-level managers for bigger roles
- Open forums where every employee, from showroom staff to senior managers, could pitch ideas
- A recognition system that rewarded collaboration over stardom
The results were staggering:
- Customer retention started climbing
- Employee engagement rose by 70% in three years
- CSI scores began topping 95% consistently
- Sales hit record highs
- Margins rose significantly
- Inventories became lean
- Attrition plummeted to an all-time low
The good news didn’t stop there; pride in the brand became so strong that employees wore company shirts post-9 to 5. Even competitors and OEM regional offices began referring to them as “the team to beat.”
The Unspoken Glue
Behind the numbers was something more complex to measure: trust. Employees didn’t just follow Fred and Sonia because they were bosses; they believed in them. They were convinced that the duo was the savior of their once ailing organization. Fred set the vision, Sonia nurtured the people, and together they became the cultural anchors of the dealership group. The owners and board were relieved and thrilled: finally, the right leadership was in place, and the proof was in the pudding, the P&L and Balance Sheets.
The Shock Resignation
Five years in, both Fred and Sonia were headhunted by another dealer group. A very lucrative offer that neither could resist or decline, and Unstoppable Motors was unwilling to match. They tendered in their resignations and reassured employees that the culture they built was strong enough to outlast them. Farewells were emotional but filled with pride; many felt the dealership had “grown up” enough to stand on its own.
Except, it hadn’t. Some employees even declared openly that they were ready to follow Fred and Sonia to their new organization.
The new anchor
The Board quickly recruited a new CEO and HR Director, both well-respected, proven leaders from within the industry. On paper, the dealership was placed in safe and capable hands.
However, impressive strategies and numbers on paper can only go so far; the problem was not competence, it was comparison. The newcomers made necessary changes: new reporting lines, sharper metrics, and more focus on short-term results. Normally manageable, except this team didn’t want to be managed by anyone other than Fred and Sonia.
Employees resisted, mid-level managers undermined, and “That’s not how Fred would have done it” became a daily refrain. What had once been “family” turned into cliques and factions that operated like “mafia”. Sonia’s people-first philosophy became a weapon, and employees began pulling the rug under each other’s feet and backstabbing to exist. The golden era created by Sonia soon gave way to a survival of the fittest mentality, with the laws of the jungle taking control in every department.
The Road to Collapse
Within two years, the dealership had imploded:
- The new CEO resigned after just 26 months, followed by the HR Director in 2 months
- Toxicity drove away high performers
- Sales slumped
- Margins went through the window
- CSI plummeted
Eventually, Unstoppable Motors was sold off in pieces to competitors.
Lessons for Leaders & Owner
The rise and fall of Unstoppable Motors is more than a cautionary tale; it’s a case study in over-personalized leadership. Fred and Sonia built loyalty, but also dependency. Once they left, the anchors were gone, and the ship drifted into a storm and chaos.
The Key Takeaways of anchoring in
- Institutionalize Culture – If culture is tied to individuals, it dies with them
- Plan Succession Early – Succession is not about handing over titles, but about preparing trust in new leadership.
- Transition – Although it’s not possible in some cases, a seamless handover and transition is crucial, however long it takes, even if it means both the outgoing CEO and the incoming successor working side-by-side, aligning on strategic priorities and stakeholder engagement.
- Build Loyalty to the organization, not People – As in the military, loyalty should be to the office of command and the company’s enduring purpose, not just the personalities in charge.
- Ascertain the actual cost of leadership changes – If things are working very well, it may be wise not to upset the applecart. It would have paid off in matching Fred & Sonia’s package or even given them a stake in the organization. Was it a penny-wise and pound-foolish decision by the board to let the duo go?
Today, this story is a reminder: outstanding leadership can transform a company, but without foresight in succession and institutional loyalty, that same greatness can lead to collapse.
Have you experienced a similar situation in your organization? Share your story, we’d love to hear it.
