A BALANCED LIFE

Giovanni Frias, VP for Operations, Legado Motors Inc. | photograph by MARC ANTHONY REYES for the Daily Tribune

GAC Motors was introduced here in the Philippines in 2018. In a time when Chinese-made cars are an object of derision.

Poorly made and no resale value. Those were the indictment for cars coming from the mainland. And very few local carmakers were able to acquit themselves from such damning allegations.

Giovanni Frias assumed the role of the “chief strategist” for GAC back then. Tasked to disabuse the general assertion that Chinese cars are inferior compared to Japanese, Korean, American and European brands.

“I began thinking of the places where people with purchasing power would frequent. We wanted these people to see our cars. How beautiful they are to look at and most especially, how good they run. So, I thought of airports and hotels.”

It just so happened that he knows a leasing company who has about 1,000 cars in his fleet.

“I was thinking if we could sell him 10 percent of his entire fleet that would be good enough. So, I made him an offer he can’t resist.”

With his bosses’ approval at Legado Motors Inc. — then the GAC distributor before shifting to hybrid and pure electric Dongfeng — he crafted a special offer to the prospective client.

“I brought two demo units to him and told him I’m lending them to him for three months. No commitment to buy,” Frias, the LMI vice president for operations, told the DAILY TRIBUNE.

“Nobody does that.”

Yet his gamble paid off. After only a month, the client took notice of the cars and their features and tried to “test-buy,” albeit with reservations because of lack of resale value.

So, Frias further upped the stakes and offered a buy-back at 40 percent after three years.

“I know that with these rentals, three years is ROI and 40 percent is the profit. To make the long story short they test-buy five units of GS8,” Frias said. “They liked that it was comparable to the Land Cruiser but only half the price.”

In the end, he was able to sell him 140 units.

Frias’ savvy didn’t come overnight, of course. It came from more than 25 years of experience in the car industry.

He started as sales executive before climbing the executive ranks in Honda Motors in 1997. Frias then transferred to CATS Motors (distributor of Mercedes Benz). There he stayed for 10 years handling the Previously Owned — a pioneering department back then.

“I don’t know but I always get assigned to big challenges even back then,” said Frias, referring to the pitfalls of reselling used cars and handling brand issues.

In Honda, he helped smoothen the highly controversial transition of the second generation CRV to a 10-seater AUV.

“A lot has changed since then. So, it’s important that you adapt with the changing times. Especially in the last three years, pretty much everything was reset,” he said.

“Most of the transactions were made online (during pandemic) and people tend to lean on the reviews. Or the number of followers. It has evolved. You have to listen to the trend and the demographics.”

That’s why Frias prefers to “listen more downstairs, and contemplate on them after office hours.”

Listening and contemplating come naturally for Frias who is a devout member of The Church of Jesus Christ of Latter-Day Saints.

He and his family serve in church missions including his wife Beth and children. Their eldest Meg is 25 years old and graduating this term at Harvard University; followed by Martina, 23; Jasmine, 21; Jairus, 20; Mat, 17; and Jared, 15.

“My belief is that you can find everything in the Scriptures. No exemptions. You will find there what you should do,” Giovanni said.

“Be it temporal or spiritual matter, even at work, you seek answers. I believe the Almighty is generous and omnipotent.”

Expect him to be as surefooted in the work place.

“Usually, I’m an open scheduled person. Open to spontaneity. I attend first to the most important issue. In more than 25 years in the industry I know what’s important and what is not. If you know that a certain issue is important you don’t sit on it, you attend to it first so it won’t be a bigger problem in the future.

“For example, you know that there are 2,000 GAC cars on the road, if you see the running balance of spare parts inventory you should know have enough to cover that because eventually, they will come to you.

“When you are seated there with a complaining customer, that’s too late.”

Hence for Dongfeng Motors, Frias wants to make sure he’s two steps ahead.

“EV is the way to do things right now, and I’m privileged to be part of it. Luckily we got the Dongfeng because there are several China brands that we communicated with, like Metta, Lifan, Chengdu.”

“We were shopping for an EV brand because we have been active in the DoE (Department of Energy) in public consultation. It involved real estate executives, stakeholders who are encouraged to have charging stations.”

“There is a big collaboration between auto industry and real estate, and the way to do is build charging station. If you want to do full electric, we should be smart and be the first.”

He said it would be very hard to compete in the EV arena with, say, Toyota. “Because of brand equity. At least we are the first. It’s easier to hurdle brand awareness it will come in time,” Frias said.

It helps that Chinese-made cars are now looking very much at par with the Japanese and European brands.

“You can see from the body lines alone,” he said. “Their characteristic is immersed with a lot of luxury brands especially Mercedes.”

With Dongfeng, the design was certainly upscale and classy. “When we saw it in China and looked at the company profile we were impressed. They really put a lot of effort and brain and talent into it.”

Frias said he’s confident of the after sales because “it (China) has the best supply chain in the world.”

He is confident that it’s only a matter of time before Filipinos go after Chinese car brands.

And for somebody who pulls off high-risk deals, it’s worth anticipating.