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 Gwatney Chevrolet’s existence can be traced back to Harold Gwatney’s entrance into the Chevrolet universe when he began working at a local dealership at the age of 14 in the early 1940s. He performed random tasks around the shop while preparing to become a certified mechanic, which he did prior to graduating from high school.
Soon after, Gwatney began selling auto parts for the Chevrolet dealer, sold trucks, and went into the insurance business before he was offered an opportunity to buy a Chevrolet dealership in Jacksonville, Ark. in the mid 1950s. Gwatney saw this a fantastic opportunity to get in on the ground floor of a town that was sure to grow.
“At the time, there were about 4,000 people there, but an Air Force base had been built in town, and we managed to find a spot close to a new highway that was a good place for the dealership,” said Gwatney, chairman and CEO.
The facility opened in March 1958. About eight years later, it moved to another location, a 24-acre plot that it still calls home. Ever the entrepreneur, Gwatney took the initiative to help build the town around the dealership, getting involved in real estate and finance, building duplexes and a motel, and helping organize the town’s first bank. 
The Gwatney empire has changed in size and scope over the years. Gwatney has owned additional Chevrolet dealerships in Texas and Arkansas. In 1989, Gwatney’s son Russell moved to Memphis, Tenn. to run the family’s Chevrolet dealership there while Gwatney’s other son, Bill, took the helm in Jacksonville.
In the 1990s, the Gwatneys opened three Saturn dealerships in Tennessee, two of which remain in the family fold today. The Gwatney portfolio also included three Pontiac/Buick/GMC in Arkansas, two of which are now closed. The family eventually sold its Chevrolet dealership in Memphis, and Gwatney’s holdings in Arkansas currently consist of Gwatney Chevrolet in Jacksonville and Gwatney Pontiac Buick GMC in North Little Rock.
As the original in the Gwatney family business, Gwatney Chevrolet remains the standard bearer for the organization. It has been remodeled several times, including moving its body shop into a state-of-the-art facility a block away from the main facility. In fact, the body shop is a key piece of Gwatney Chevrolet’s success.
“Our operations depend on our ability to service our customers’ cars, and that means we need to have body shops that are of the highest quality,” Gwatney said. “We service all GM makes and models in our service department.”
Back at the main Gwatney Chevrolet campus, in conjunction with GM’s modernization strategy, the facility is being remodeled once again. Gwatney said the company recently spent $2.5 million to redo the front of the building and make it more inviting to potential customers.
Dealing with change
The automotive industry has certainly changed since Gwatney entered the business, especially if you consider that just five years ago, no one expected GM to declare bankruptcy. In addition, technology has completely changed the game as Gwatney said the rise in the importance of computers have forced sales executives who weren’t necessarily tech-savvy to become so. The reduction in face-time between customer and dealer makes efficiency of service more important than ever before, something Gwatney and his team put a lot of emphasis on.
“We do what we say we will when we deal with our customers. We develop owner loyalty by being true to the customers so they will be true to us,” he said. “We have owner clinics once a month and invite new owners to come in to our store in Jacksonville to tell them all about the cars and try to develop their future loyalty. As a result, we have a great base of satisfied customers who come back and bring their friends.”
Just as important as customer loyalty is employee loyalty. Gwatney said the company provides a robust incentive and benefit package to employees and hasn’t had any forced reductions in labor. In fact, when the company closed one of its Pontiac Buick GMC locations, there were only seven people who chose not to relocate to Jacksonville or North Little Rock. Gwatney wanted to keep them, but the commute would have been too hard a strain. Instead, they were given generous severance packages, indicative of the respect Gwatney has for his employees.
“Our employees know that we will take care of them, so they take care of the company and the customers,” he said.
Gwatney Chevrolet’s long-term success, growing along with the town around it, is a story of overcoming the odds. The company recently found itself in a position where it was once again required to confront a devastating situation.
Gwatney’s son Bill had been running Gwatney Chevrolet since 1989. He had become the face of the organization thanks to a series of highly memorable TV commercial marketing campaigns. In addition, he had risen to regional prominence as an Arkansas state senator and chairman of the Arkansas Democratic Party. On August 13, 2008, Bill Gwatney was shot and killed, a tragic blow for the family.
“He initially didn’t really want to get involved in the auto business; he loved being a banker. But he eventually recognized what was needed to make the business grow,” said Gwatney, who added that the long-tenured staff at Gwatney Chevrolet will do everything they can to honor Bill’s legacy.
The Gwatney family may never be able to completely forget the painful memory of the heartbreaking loss of one of their own, but the business that Bill Gwatney was such an important part of is primed to thrive for years. Harold Gwatney said the company is exploring the possibility of creating a team approach to the sales process to help reinforce the ties between customer and dealer that have made Gwatney Chevrolet a respected institution in the region.
“We want to get to the point where, instead of having a general sales manager and an assistant sales manager on the floor, we have a team leader with four or five people working under him/her as a group,” he said. “That set-up will increase productivity and create the personal contact that will bring people in and bring them back. If we stay around 200 units sold a month and manage expenses properly, we will get the profit we are aiming for.”
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