Driving technology, equity

April 06, 2008

His business depends on cars, but David Boatman loves riding his bike.

Boatman is president and CEO of Drive Technology Group in Matthews, which develops business software for car manufacturers and dealers, including Charlotte-based Sonic Automotive and Hendrick Automotive, and financial institutions such as Bank of America and SunTrust.

The company, founded in early 2004, also is a telecommunications vendor for such organizations as McDonald's, the Billy Graham Evangelistic Association and Speedway Motorsports. It has 11 employees and more than 2,500 customers, Boatman said, and averages $2 million in annual gross revenues.

In January, Boatman and Paul Dion of Florida founded DriveEquity, which provides a patented biweekly payment program to auto, RV, motorcycle and boat dealers. Buyers can pay off loans faster or add options under the original terms, and dealers can charge buyers extra for the program and make money from selling options.

Before launching the two companies, Boatman, 42, was chief information officer and vice president at Sonic Automotive for five years. A native of Knoxville, Tenn., he studied computer science at Asbury College in Kentucky and received a bachelor's degree in business from Montreat College.

Drive Technology Group and DriveEquity recently moved from Pineville to Matthews, but one constant has been Boatman's attempts to sneak out each day on his bicycle. An avid road cyclist, he keeps a bike in his office.

Questions and answers were edited for brevity and clarity.

Q. Why did you leave Sonic to start your own company?

My strengths are growth and high rate of change. By 2004, Sonic had a reliable infrastructure that was bulletproof, and had a mature technology and telecom team. So we moved to the next challenge: starting a solutions and technology company, and growing it over time to become the best of class.

Q. What was it like working for Bruton Smith?

I never saw him back down from a challenge or give up. He is always thinking of ways to make new things happen in the business world, always looking for the platinum lining. He knows what he wants and demands a lot from his people, but never more than he is willing to give.

Q. Were there any surprises in starting the company?

It is more difficult than it looks and takes longer than you expect. It is more about the team than you. You can never get enough funding. It can be the most fun you can have at work.

Q. How has the economic downturn affected business?

We launched DriveEquity at a pivotal time to help dealers realize more profit. In this climate, there are those who make necessary changes to adapt and take advantage of this economy and thrive. Then there are those who believe everything they hear and hide, and they will probably not survive.

Q. Why did you to launch DriveEquity?

I had been working with Paul Dion on some joint technology, and over a conference call late one night we decided to develop an idea he had been working on. This product helps customers reduce debt and increase equity in vehicles, while allowing the dealer to recover some of the profitability they have lost over the years. So both sides win.

Q. What has been the result?

We are ahead of plan for the first year and excited about the response from dealerships. They get it, and they are pleased that it is not just another widget to sell but a service that actually helps the customer and the dealer at the same time. More than 60 people are selling this product on the East Coast, and we plan to expand west over the next year.

Q. How concerned are you about the downturn affecting this new effort?

Not at all. DriveEquity will help dealerships during this tenuous period. The retail automotive business is the strongest industry in the nation and has survived wars, market collapses and many other threats.

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