“I did not want to go outside the organization to hire a general manager so I made them co-GMs,” Nouri said.
Since Raed Malaeb and Jonathan Schwartz were promoted to co-general managers at the Van Nuys store in January 2021, more employees have stuck around.
In 2020, the dealership had a 35 percent turnover rate. That number in 2021 and 2022? About 10 percent, according to Nouri/Shaver CEO Armina Mgerian.
“Having two general managers working together at the same dealership … was the best decision for our auto group,” Mgerian told Automotive News via email. “There is plenty of work for two managers.”
The managers agree. When asked whether the plan was successful, both men answered at once during a Zoom call with Automotive News.
“We talk over each other all the time,” Schwartz said as both men laughed.
One reason Nouri wanted two managers was to cover weekends.
“One of us is always here, if not both of us,” Schwartz said. “Most GMs don’t work on the weekend, and a lot of customer issues or customer complaints, or any other issues, usually pop up on the weekend. By having boots on the ground at all times, we can make decisions on the spot.
“If there are any wrongs, we can make it right.”
Malaeb, a recent Automotive News 40 Under 40 honoree, said having two general managers works because they get along so well.
“There is no ego involved at all,” Malaeb said. “We always just agree to find the best solution for the store. Since we took over, we have almost increased the sales by 30 or 40 percent.”
In 2020, the store sold 5,224 new and used cars, and earned about $11 million in net income. In 2021, the first year with co-general managers, the store sold 5,914 new and used cars and earned $17.2 million in net income.
Inventory shortages contributed to a sales and earnings dip in 2022, Mgerian said. For that year, 5,219 new and used vehicles were sold for a net profit of about $15 million. Through June 2023, the store has sold about 2,455 new and used units, Mgerian said.
