Dan Chait, President & CEO, JM Family Enterprises
Dan Chait, president and CEO of JM Family Enterprises, spoke with Invest: about the emerging trends in the automotive industry and how the company works with Toyota to satisfy the needs of consumers. He explained that the key to success is nurturing a supportive and engaging workforce that contributes new ideas and innovations within the company.
What were some significant milestones and achievements for JM Family Enterprises in the last 12 to 18 months?
This past year, we renewed our distributor agreement with Toyota, a milestone that happens every five years. It reinforces the strong relationship we have with senior Toyota leadership and speaks to the expertise and operational efficiencies our team brings. Additionally, our subsidiary, Southeast Toyota Distributors, opened its new automotive parts distribution center in Jacksonville last year. We’ve always operated from a single, smaller parts warehouse and have now expanded to a 416,000-square-foot facility with state-of-the-art technology to get dealers what they need, faster. We will open a second warehouse in the Atlanta metro area later this year.
What does technology mean to your industry?
We are investing heavily in technology. It’s a cycle where all three of our auto subsidiaries – Southeast Toyota Distributors, Southeast Toyota Finance, and JM&A Group – are replacing their core systems, which are multiyear projects requiring significant costs and time to manage. We have long-tenured associates who understand our businesses very well, and we leverage their knowledge to inform the design and implementation of our systems. We’re investing heavily in AI, and have developed a GenAI Center of Excellence. We’ve handled several specific-use cases and are continuing to refine the tools we’ve implemented while navigating how to manage the technology, identify use-opportunities, and sustain and plan to scale. Our focus in all those cases has helped our associates be more productive, efficient, and innovative.
What are some of the key trends you are seeing in the industry, and how is JM Family Enterprises positioning itself to navigate and leverage any changes?
A major trend in the automotive industry is the move toward fully electric vehicles. Toyota has a strategy to sell products that all consumers want. Battery electric vehicles are a great product and are a great solution for many consumers, but they are not the right fit for everyone. Toyota continues to build electric battery, hybrid, plug-in hybrid, and gasoline vehicles, creating a spectrum of solutions to satisfy any consumer’s needs. Regulatory trends are also moving in this direction. Another significant trend is the increasing role of technology in the industry. Retail purchases are becoming more digital, and we are investing in this transformation both in partnership with Toyota and independently.
How does your company culture contribute to its success, and what can other businesses learn from your approach?
This is an area I’m extremely passionate about. We have had a strong associate-centric culture since the late 1960s, focused on associates, business partners, and building connections with people. Through those connections, we created an environment where people want to do great work. When associates feel confident and comfortable in the environment and feel appreciated, they go the extra mile and do extraordinary things, which translates to business results. This requires consistent energy and effort, but it creates a positive work environment and drives success. In my new role, I have been focused on ensuring that as time passes and more associates join, they remain deeply connected to the company’s culture.
What is the company doing to support its dealers to ensure continued growth and success?
Our focus is on helping our dealers sell more vehicles and satisfy more Toyota customers. Southeast Toyota Distributors has been focused on helping dealers improve their service and parts departments and their body shops. We have developed training programs for service technicians across our five-state area, enhanced fixed operations, and built technology to help dealers configure and order vehicles more efficiently. As a result, we sell north of 20% of the Toyotas in the Southeast and consistently outperform our population size. The largest dealer in our region is the No. 2 highest volume dealer nationally for Toyota. Additionally, our JM&A Group insurance products provide extensive training across all dealership areas to improve overall performance. Our goal is to succeed and generate profits alongside our partners.
How have ongoing changes in the market impacted your organization?
I focus on three key factors: interest rates, employment, and tariffs. We look forward to lower interest rates because car payments have gotten much higher. We look at employment. We have a large finance business for customers who buy from Southeast Toyota dealers. Delinquency and loss numbers are better when people are working, so we’re pleased to see unemployment low, and we hope the economy continues to employ the huge percentage of folks who are looking for jobs in the marketplace. Tariffs are another factor, as changes with new administrations can significantly impact the auto industry and require adjustments in our approach. The population growth in Florida has been a tremendous boost for our business as well in recent years. It allows us to recruit talented associates and helps our dealers from the standpoint of new car sales, service, finance, and insurance.
What are some of the philanthropic initiatives you have in place, and how do they impact the markets where you operate?
One of our cultural tenets is giving back to the communities in which we live and work. We have three principal tenets regarding community involvement: empowering families, promoting education, and embracing the environment. Last year, we contributed over $50 million directly to nonprofits in the states where we have major business operations – Florida, Georgia, Alabama, and Missouri. Beyond financial contributions, our associates actively volunteer their time – more than 25,000 hours in 2024. We have a long-standing partnership with Habitat for Humanity, and our volunteer participation is so high that we often have to limit the number of people on build sites.
What advice would you give to fellow executives about staying agile and resilient in today’s business landscape?
Build a great team, and trust and work with your team. In the past, when the business environment wasn’t as fast-paced, leaders could have many of the answers themselves. Today, things are changing so fast, and one person can’t have all the perspectives or answers. You need a team of folks you can trust who are properly aligned and working toward a clear, common goal.
Looking ahead, what are the company’s top priorities and strategic goals for the next few years?
Our priorities revolve around culture and talent development and ensuring we have associates who are building skills and progressing upward toward future roles. Beyond that, we have a lot of work to do on technology initiatives. We must continue investing in technology and expanding beyond the automotive sector. Our investment company, JM Family Holdings, has grown significantly, and we have acquired businesses outside of the auto industry to diversify our portfolio. We will continue exploring opportunities in these areas.
As you are expanding into new sectors, how do you balance innovation and diversification with maintaining your core business strengths?
Our diversification efforts complement our core business. We have had the opportunity to move high-performing automotive associates into other businesses, helping them take on higher-level roles and develop new skills. One of our key principles is that while the auto business remains our foundation, we also leverage talent across all three sectors. My predecessor developed a program called the “Doing It Better Showcase,” or “DIBS,” where we highlight innovation our associates are helping to create. Associates can present new ideas in a Shark Tank-style format across all divisions. This initiative accelerates innovation and growth across our company.
Do you have any final thoughts you’d like to add?
The common thread throughout this conversation has been our associates. It’s not something I prepared for this interview; it’s just the way I think about the company, and it’s how our leadership team orientates its work. We have accomplished extraordinary things because of our team and the culture they help cultivate.
