Dave Smith Motors
| Company type | Private |
|---|---|
| Industry | Automobile dealership |
| Founded | 1965 |
| Founder | Dave Smith |
| Headquarters | Kellogg , United States |
Area served | Nationwide (United States) |
| Products | Chrysler, General Motors, Nissan vehicles |
| Owner | RFJ Auto Partners Inc. |
Dave Smith Motors is an automobile dealership based in Kellogg, Idaho, drawing clientele from across the nation. It is widely recognized as the "World’s Largest Ram Dealer".
History
The origins of Dave Smith Motors trace back to October 1965 in Wallace, Idaho, when Dave Smith acquired a modest Chevrolet dealership previously owned by Mort Keane. Initially, the primary customers were miners, loggers, smelter employees, and local entrepreneurs from northern Idaho's Silver Valley. After five years, the dealership relocated to Kellogg, Idaho. Presently, Dave Smith Motors offers vehicles from Chrysler, General Motors, and Nissan, according to their official website.
The Silver Valley area of Idaho was established during the silver rush of the 19th century and is among the richest silver mining territories globally. Situated along Interstate 90 in northern Idaho's Shoshone County, this valley prospered for many decades as a leading mining hub. However, in 1981, the closure of the Bunker Hill mine in Kellogg resulted in over 2,000 job losses, triggering a severe economic decline. The region also experienced significant job reductions within the timber sector. As a result, the valley's population sharply decreased and numerous car dealerships struggled to survive; Dave Smith’s dealership was nearly forced to close.
While other dealerships shuttered in the valley, Dave Smith expanded by acquiring nine additional new car dealerships and consolidated all brands under one roof. To compensate for reduced profit margins, he implemented price reductions aiming to increase sales volume. Remarkably, the dealership often maintains an inventory of new vehicles that exceeds Kellogg’s entire population.
Dave Smith Motors was an early adopter of Internet technology among car dealerships. In the late 1990s, when many dealers viewed the Internet as a competitive threat, Dave Smith leveraged it as a strategic tool to boost sales. Since its inception, Dave Smith Motors has consistently ranked highly on Ward's Auto e-Dealer 100 list. Utilizing online platforms enables the dealership to extend its reach well beyond its remote location in Kellogg, Idaho.
The Internet fundamentally altered dealership dynamics because Chrysler Corporation (now Fiat Chrysler Automobiles) allocates more inventory to dealerships demonstrating higher sales performance—a system rewarding those who can increase their sales figures. Despite resistance from rival dealers, Chrysler continued to allocate an increasing number of vehicles to Dave Smith Motors and encouraged other dealerships to enhance customer service and referrals to improve their own sales. In 1998, dissatisfaction led twenty-five Chrysler dealerships across five states to threaten a boycott against Chrysler if allocations to Dave Smith Motors were not reduced. The Federal Trade Commission deemed this boycott unlawful, and the dispute was resolved before any action took place.
In 2015, national dealership group RFJ Auto Partners acquired Dave Smith Motors. Currently, the dealership averages sales of approximately 1,000 vehicles per month.
Community involvement
Dave Smith Motors ranks among the top employers within Shoshone County and holds the distinction of being the largest privately owned business in Kellogg.
Ownership
In April 2015, RFJ Auto Partners Inc., headquartered in Plano, Texas, completed the acquisition of Dave Smith Motors.
Tragically, during a family holiday in April 1994, Dave Smith lost his life in a snorkeling incident near Belize in the Caribbean Sea at the age of 58.