Written by: Eileen Anderson, Director, Government Relations at The MBA on April 16, 2025
Matthew Clark, V.P., Humes Chrysler Jeep Dodge Ram, President, Humes Ford of Corry
“Humes Chrysler Jeep® Dodge RAM has been providing customers in Erie and all of Northwest Pennsylvania with the best overall sales and service experience for 75 years.” Blazing the trail for the company began 85 years ago when founder Delbert C. Humes was working on a local farm and delivering its produce out of the trunk of his car to local farmers and Erie residents….”
Matt Clark and I spoke the day after the president unveiled his reciprocal tariff structure. It was an appropriate moment to discuss the impact of tariffs on autos as the administration confirmed the 25% global car and truck tariffs would take effect April 3, 2025 and that duties on automotive parts imports will be launched on May 3, 2025.
Clark said there are so many unknowns, and he was not sure how tariffs would impact consumer pricing in general. He noted 70 per cent of the cars Humes sells are manufactured state side. The plan is to cost-average the North American price structure. That way there will not be a large impact on each vehicle.
He noted, almost all manufacturers and sub-contractors have long-term contracts ranging six months to one year. Companies have been building inventory in autos and manufacturers have been building inventory of component parts coming from Mexico. While there is no impact immediately, some may use the opportunity to raise prices if the tariffs continue for several months. Purchase orders for zinc and aluminum can be up to a year. He wondered about the viability of manufacturers to honor that and acknowledged it may jeopardize their operations and potentially put them out of business. His opinion was the price of an auto would not go up $10,000 tomorrow, however, given all of the unknowns, Clark suggested buying now rather than waiting six months.
Year over year March 2025 sales were higher but he did not necessarily consider those purchases tariff-driven. Vehicle leasing comprises an estimated 35 percent of their business.
Then the conversation took another direction and revealed what makes Humes so successful.
An amazing sixty to seventy per cent of their business is based on relationships. He estimated that some families over the years have purchased three dozen autos from the company. Referrals by customers and word-of-mouth recommendations encourage sales. The hallmark of Humes Chrysler Jeep Dodge Ram is “Do the right thing.” Offering fair and competitive pricing and having a strong focus on service promotes good feelings for the those who lead the company as well as those who sell and service customers. It all reinforces “Do the right thing.”
Another feeling of satisfaction comes from going the extra mile not only for customers but also employees. “Take care of the employees so they will take care of the customer.” Recently the company was #3 of the top 5 Chrysler dealers in all of western PA. They have more flexibility than most since they are privately held. That allows for employee benefits packages to exceed other dealerships. He pointed to sharing profits with employees by paying 100% of health insurance benefits, company funded Health Savings Accounts, and offering 401K investment plans with a company match and on.
Humes is actively involved in its auto industry and trade associations. Matt is currently the President of the Automobile Association of Erie County and was the vice-chairman of the Pennsylvania Auto Association. They have also been the recipient of numerous awards including Pennsylvania’s TIME magazine dealer of the year.
Clark noted that he and his wife and feel it important to support local charities and nonprofits. They have chaired numerous events and raised thousands of dollars. To name a few of the many: Crime Victims Center of Erie County; Barber National Institute Annual Barber Ball; American Heart Association Heart Ball; Sisters of St. Joseph Inner City Neighborhood Network; Juvenile Diabetes Research Foundation; Founding member of Warriors to Washington, annual benefactor of taking a busload of wounded Vet’s to visit war memorials in DC.
The parting comment from Matt, “As long as the company is competitive and successful, we will take care of employees and customers and continue to support the community.” From where I sit that sounds like a great definition of “Do the right thing.” Sincere congratulations to Matt Clark and Humes!