For our in-person meeting on January 26, for the latest of our Cornerstone Stories, Dave Stewart introduced a video of Doug Markley, talking about the history of Markley Motors followed by an interview with Carrie Baumgart and Cindy DeGroot, members of the current leadership team at the dealership. Doug’s father, Gene, who passed away in 2017, was a long-time member of the Rotary Club of Fort Collins and both Carrie and Cindy are current members.
The dealership was started by Gene’s father, Ferd, in 1936 when he enquired of the Chrysler Corporation about acquiring a dealership in the Mountain West. Fortunately for Fort Collins, he chose our city over Albuquerque and opened the dealership on N College Avenue on Aug. 6, 1936. The dealership weathered the depression and World War II. With a war-limited inventory, just to make payroll, Ferd would trade for virtually anything (cattle, sheep, etc.), even once having to borrow $25 from Gene’s paper-boy earnings. The service department was even used as a parachute-folding facility. After the war, although pent-up demand for autos was great, retooling from war-time production to autos was difficult so inventory remained sparse for several years.
When Gene and his brother, Bob, returned from the war, Bob went into the family auto business while Gene went to Colorado A&M (now CSU) where he earned a degree in civil engineering. After a time working for an engineering company on roads in Montana, Gene returned to Fort Collins where he and a friend founded Poudre Pre-Mix, the first ready-mix concrete firm in northern Colorado. By 1949, however, Gene was ready to get into the auto business. Shortly thereafter, following up on a long-time interest in politics, Ferd was elected to the Colorado legislature where, among other things, he sponsored the legislation (still on the books today) making commercial sale of autos illegal on Sundays.
Doug went to the University of Kansas in 1964, majoring in journalism and marketing, figuring that the dealership already had as many family members working there as it could support. However, during his senior year at KU, the VW dealership in Greeley became available. Gene bought out Bob in Fort Collins and Bob took on the VW dealership, so Doug felt that the situation was ripe for him to join the Markley dealership in Fort Collins.
In 1973, they bought 12 acres way beyond the southern limits of Fort Collins on College Ave to move the dealership, building their new facility there in 1974 (where they still are today). Shortly thereafter the new mall was built right across the street. Also in 1974 they invested $10,000 to obtain a Honda dealership (adding it to their Chrysler product line) at a time when Honda was quite new in the auto business. Six months later the oil embargo encouraged lots of people to trade in their large American-made cars for the smaller Honda Civic. In 1979, the Chrysler Corporation was on the verge of going bankrupt and, at the same time, Bob Wells, the owner of the local GM dealership died. So the Markleys bought his inventory (becoming a Buick/Pontiac/GMC dealership along with their Honda relationship) and sold their Chrysler inventory to the local Jeep dealer. Sometime later, GM brought out the Saturn and Markley handled them for the 10 – 15 years that they were in existence (disappearing in the wake of the government bailout of GM in the financial crisis). It was clear that Doug enjoyed the Saturn and regretted its elimination.
Doug concluded by thanking the members of Rotary for their long-time support and for their ongoing and regular purchase of GM and Honda products.
Carrie Baumgart and Cindy DeGroot, the most recent generation of Markleys at the dealership, then answered a series of questions from both Dave Stewart and the audience.
What was it like to work for Gene? Carrie said that he treated her as a regular employee and that all of the employees loved him. After working for several years in awe of him, she disagreed with him on some subject and he immediately welcomed her wholeheartedly into the auto business. Cindy said that Gene respected and knew all of the employees and routinely asked about them. He was humble but business-like.
What brought them to Rotary? Basically their grandfather, Gene. He talked about Rotary and really lived the 4-way test.
What is behind the company’s ongoing contribution to the community? It is in the DNA of the company, born in the depression. The company wouldn’t be here without the community.
What impact has the era of Covid had on the company? Carrie emphasized the need to be adaptable. Their internet tools/website are constantly improving so that now their website is their showroom. Some 5% of their business is now on line. Whereas in the past, customers would visit several showrooms before making a purchase, with website showrooms they now routinely visit only one showroom in person. Cindy added that, with the current low inventory, the website now allows the customer to reserve an auto without even touching it.
What impact will the transition to electric vehicles have on their service department? Both GM and Honda are planning for 100% EVs by 2040 and an EV Hummer is already coming out. They will have to make the investment to accommodate that change.
How much of the Markley success has been luck, how much blood, sweat, and tears? Although luck can’t be discounted, their grandfather had a vision and all of the family has worked hard to make that vision become reality.
What impact do they foresee from the Federal Infrastructure Bill? Although they don’t have a crystal ball they expect it to have an impact on both personal and commercial travel. They hope that the Colorado legislature will create a bill that will be favorable to everyone.
Are they having a problem with long-time employee retention? Although they have had a couple employees retire (one at 78), they have not had a retention problem. With Cindy spearheading their employee relations, they make an effort to recognize their employees as part of a great team.