Lexington, KY - Back in the day, when most Lexington car dealerships were located near downtown, some in the car-selling community thought Don Jacobs was nuts for moving his business way out on the edge of town. In 1973, the New Circle Road expressway had recently connected to Nicholasville Road, and that's where Jacobs had plunked down his dealership.
"Ironically, there was a stop sign at the corner in front of the dealership when he first opened," said Don Jacobs Jr. about his dad's decision to move to the suburbs. "Really, that area is now almost the center of Lexington."
Don Jacobs is celebrating its 40th anniversary, dating to a relatively tiny car lot at the end of High Street, where it becomes Versailles Road, near Rupp Arena. Today, the family businesses include Don Jacobs Honda, Don Jacobs BMW, Don Jacobs Volkswagen, Don Jacobs Used Cars and Don Jacobs Paint and Body Shop.
Originally an Oldsmobile dealership, it was a good time to be an Olds dealer.
"In the mid-80s, Oldsmobile was the No. 1-selling make in America, and the Cutlass Supreme was the No. 1-selling model," said Jacobs. "They sold over a million a year. Many grew up driving Oldsmobiles."
And Don's dad knew how to sell them.
"The mid-80s for Oldsmobile was a very happy time in the business. My father had the highest market penetration for Oldsmobile in any city," he boasted. "He was excellent at calling on customers. That's how the business was built."
Don Jacobs added Honda to its car line before Americans began their love affair with Japanese-made cars.
1989 was a watershed year for the company. Don Jr., who had just graduated from Denison University, said what pushed him into the car business was his father's decision to purchase a BMW-Volkswagen franchise.
"I saw the sale of the business. We moved the inventory, parts, employees and customers to our location on Nicholasville Road. That's what motivated me to get into the business as a career," he explained.
Eleven years ago, Don Jacobs Jr. and his mother acquired the dealerships from his father, following his parents' divorce. As the young Jacobs plunged into the business, he was appreciative of his mother's "support, trust and confidence in me. We flourished," he said.
Joe Mefford, a Volkswagen service technician, has been with Don Jacobs all 40 years, going back to the old location
downtown.
"They've treated me well and have been fair to me. I could have done a lot worse," he said. Mefford, 60, has touched thousands of cars over the years.
"Now I'd rather do work other than service because of the repetition. I've turned a lot of wrenches," he said with a chuckle.
So what kept Mefford on the job in the Don Jacobs service bays?
"It was always a friendly environment," he said. "I liked the people I worked with and made decent money doing it."
Mefford had several opportunities to leave, including one to start his own business. "But I didn't want the headaches that go with it," he said. "I wanted the family life and the kids."
Those business headaches are enough to drive any dealer crazy. It was during a manager's retreat at Greenbrier Resort in West Virginia that the Jacobs team learned that General Motors had terminated Oldsmobile.
"The day I officially took over Don Jacobs Oldsmobile
was the day the franchise was terminated," Jacobs said.
As the young company leader, Jacobs knew it was a defining moment for him.
"As you can imagine, with long-term employees, despite loyalties, there were fears and stereotypes among people about what I could or couldn't do. I had to earn everyone's respect and confidence," he said.
"It was very challenging to be a second-generation dealer taking over a company named Don Jacobs Oldsmobile that was no longer an Oldsmobile dealer," he said. "Three employees asked me if they'd have jobs at the end of the year. We retained those employees and a lot of customers with our other makes."
When the bottom fell out of the automobile market (2009 sales of cars and light trucks were the lowest in 27 years), many dealerships suffered. But caution dominated Jacobs' strategy.
"Many dealers had overbuilt because of cheap money and manufacturers' mandated facility improvements," he said. "Over the last 10 years, we renovated the entire campus and built a new body shop, but I haven't done excessive investments."
Jacobs added that he has the strength of three manufacturers (and their financing arms), like American Honda, BMW Financial Services and Volkswagen Credit.
Mefford summed up the changes he's seen over 40 years.
"I am shocked that we started in that little bitty shop over there (High Street) and how it developed over the years. I watched it grow into something really big," he said.
For Jacobs, it's been a privilege serving the automobile-buying public, and he hopes his family will still be at it 40 years from now.
"Should my children
ever have interest in the business, maybe our company would be one of the few family businesses to succeed to the third generation," he concluded.