MADISON, WI – In its 115 years of family owned and operated existence, Smart Motors in Madison, Wisconsin has managed to survive despite historical ups and downs that have impacted their business.
“It seems like every decade or so something throws a wrench into the works,” says Smart Motors’ President and CEO J.R. Smart. “I’d say the very first hurdle my grandfather’s new business had to overcome was a lack of inventory… and the cost of a new car.”
Even though the first Ford Model Ts were being assembled in 1908, O.D. Smart opted to instead try his hand at selling an Apperson Jack Rabbit out of his father’s livery bar in Waukesha, WI that same year. It sold. For $5,000. That roughly translates to $155,000 today.
“Automobiles were not cheap,” says J.R. “The Jack Rabbit was also meticulously made by hand, which made it more expensive than the Model Ts that were put together on an assembly line.”
J.R. says just to start the Jack Rabbit was labor intensive as it was a 10-step process. The self- starting engine was introduced four years later in 1912.
Every year cars became easier to use – and easier to buy. The price of a new car dropped over 75 percent between 1908 and 1925 thanks to new production technology. With new ease of use and better prices came greater sales, and Smart Motors was able to sell cars to a wider segment of the population.
While the Model T continued to be very popular, Smart Motors took a different path, selling smaller brands such as Studebakers, Packards, Crosleys and Hudsons. Regardless of the automobile, though, O.D. Smart emphasized educating the community on their vehicles as he became a spokesman of sorts and was often the media’s quoted “Specialist” in Madison on topics like proper care and general maintenance. It’s a tradition that has lasted through today.
“Starting in 1925, my grandfather’s business started to thrive,” says J.R. “The business was now in Madison, which made it a central point for people from Chicago, Milwaukee and Minneapolis. Smart Motors was doing quite well…”
And then came the Great Depression. From 1929 to 1932, new car sales plummeted by 75 percent. More than half of the dealerships in existence at the time filed for bankruptcy. Most of these never returned.
“Smart Motors had to take a defensive position,” says J.R. “Staff had to be cut. Operation costs had to come down. And we had to rely on lower end models that made little profit instead of the luxury vehicles that were profitable but no longer affordable.”
Obviously, Smart Motors did survive the market crash in 1929, but just over a decade later World War II delivered an even greater blow to dealerships.
“While the rest of the country had record-low unemployment and industry boomed, car dealerships were unable to operate – because there were no cars to sell,” says J.R. “To save metal for the war effort, no automobiles were manufactured for civilians between the years of 1942 and 1945.”
O.D. Smart worked nights as a machinist at Gisholt Company to make ends meet, and his dedication paid off: Out of the 14 dealerships in Madison, Smart Motors was the only one that was not forced to declare bankruptcy in the 1930s and ’40s.
After the war ended, the first new vehicle sold in Madison by O. D. Smart was the “Universal Peace Jeep” by Willys for $1,200, which would be a mere $20,000 adjusted for inflation.
Flash forward to the 1950s: The ’50s were an era of rapid change in automobile manufacturing. Smart Motors sold smaller brands such as MG, Austin, Sunbeam and Hillman well into the 1960s, but as these companies failed, Smart Motors stayed alive by adjusting with new brands like Studebaker and Packard to keep up with public demand. At this time, Jim “F.J.” Smart (O.D.’s son) took over as the owner of the dealership.
“My father was just as innovative as he took a chance on a number of unknowns in the automobile industry,” said F.J. “He was always able to anticipate the need for a new product or service and make the correct decision.”
By the 1960s, one in three Americans owned a car. Smart Motors not only faced increasing competition from other dealerships in the Madison area, but by the mid-‘60s, Americans started to become aware of the environmental impact of the air pollution that was being caused by industry in general. One of the targets of environmental outrage was the emissions from large, gas-guzzling automobiles.
Acting ahead of the curve, Smart Motors introduced Wisconsin to a little-known fuel efficient line of vehicles in 1966. They became Wisconsin’s first Toyota dealer.
“The business moved to Odana Road that same year and the new facility was touted as ‘Wisconsin’s Finest Ultra-Modern Import Dealership,’” says J.R. “My father and his team began selling not only Toyotas but also Sunbeams and Volvos.”
Making a name for themselves as offering smaller, more fuel efficient vehicles now seems prescient. In 1973, the nation faced another major challenge that directly affected the auto industry: An oil crises.
“The oil crisis logically led to a gas shortage in the U.S.,” says J.R.
Time magazine devoted a cover story to the issue, declaring, “The Big Car; The End of the Affair.” In 1974, the first national speed limit of 55 m.p.h. was imposed on all interstate roads. In 1975, the federal government set its first fuel economy standards for the auto industry.
“My father and grandfather both had great business instinct,” says J.R. “Maybe my dad saw all of this coming, but even if it was just sheer luck, Smart Motors was ahead of the trend for fuel economy.”
There was another shortage in 1979, which saw an uptick in the manufacturing of diesel powered vehicles. Both were short-lived and did not have any great impact on Smart Motors.
“Looking back it seems strange that we had nearly 20 years of operations without much crisis,” says J.R about the 1980s and ‘90s. “There were some ups and downs caused by recessions, but ultimately it was a time of peace for the auto industry.”
In 2000, though, Smart Motors introduced a major, potentially world-changing innovation to the Midwest marketplace: The Toyota Prius, the first mass-produced mainstream hybrid vehicle available in the U.S.
“I’ve never seen anything like it,” says J.R. “The Madison area is well-known for being ecologically minded, so when this car hit, it hit with a bang!”
Today, Smart Motors offers 14 different models of hybrid and electric vehicles, including crossovers, SUVs and even pickups. In fact, 75 percent of Toyota’s inventory is available as hybrids or electric. Toyota’s hybrid cars get over 50 mpg, and are some of the cleanest cars on the road. One out of every four cars sold in Madison is a Toyota, and Smart Motors has been the Midwest’s number-one seller of hybrid vehicles for 15 years running.
Smart had almost another 20 years of pretty smooth sailing, but then 2019 came along, and with it a global pandemic.
It’s fairly common knowledge that the Coronavirus pandemic has universally impacted the automotive industry. First there was the slowdown of new vehicle production due to the factory workers being out because of illness. Then there was a microchip shortage which brought the manufacturing of new cars to a standstill. After the microchip shortage slowly came to an end, the new problem was a shortage of polyurethane foam to fill car seats.
During all this, the price of new and used vehicles rose noticeably. And now that prices are coming down slightly, interest rates continue to climb. The auto industry, as well as consumers, have had to adjust to a “new normal” that isn’t terrifically convenient.
“We all feel extremely lucky to be standing as tall as we are today,” says J.R. “The pandemic has been, and to a large extent still is, an unprecedented event that I’m not sure my grandfather or father could have ever predicted.”
Both the new and used lots at Smart Motors were decimated by this latest crisis. There were simply no vehicles to sell. Once again, they leaned on their dedication to service to keep the business alive and healthy during the tough years that followed.
“So let’s see… in 115 years Smart Motors has outlived several wars, a few recessions, one great depression, oil crises, gas shortages, and a global pandemic,” muses J.R. “While it’s impossible to say what the next obstacle for us to overcome will be, at least we have the history behind us to say with some confidence and certainty that Smart Motors will be part of it.”
About Smart Motors
Smart Motors was founded in 1908 by O.D. Smart and is one of the nation’s oldest automotive dealerships, is the mid-west’s largest hybrid dealer, Wisconsin’s largest Toyota Certified Used Vehicle dealer and one of Wisconsin’s largest volume Toyota dealers. Located at 5901 Odana Road, Smart Motors is Wisconsin’s only two-time President’s Cabinet Award recipient from Toyota Motor Sales for superior customer service & sales volume. More information about Smart Motors.
