Quick decision saves company for 4th generation

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Feat7_14Rihm1 Kari Rihm stands in front of one of the trucks her company sells, as son JB and daughter Libby join her.[/caption]

By JAN WILLMS

For Kari Rihm, taking over a trucking business was a decision that had to be made quickly.

Rihm Kenworth, 2108 University Ave., had been in her husband’s family for three generations. The original Rihm Motor Company was founded in 1932 by his grandfather, JB Rihm. The company became a dealer for Kenworth trucks in 1949. JB’s son, Walter, operated the dealership until passing it on to John W.

However, John W. died from brain cancer in the fall of 2010, after being ill for only three and a half months.

“There was a level of urgency, because we are a franchise,” Kari Rihm explained. “I had 180 days to decide what to do.”

A contractor friend asked her what would become of Rihm. “I took a deep breath and told him that was a good question,” she said. She responded to him, “I own a business. I had better get to work.”

Rihm had been a stay-at-home mother for the previous 17 years, and her only participation with the company had been as a board member.

She applied to be the dealer, making the case for her to be a successor to her husband.

“It was just a realization that I should not even think about selling it,” she said. “JB, our son, had some interest and I knew the business had a significant value. I started coming in to work on a part-time basis, and JB started six months later.”

She said there were a lot of challenges. “I had to learn about an industry that I was not very familiar with,” she said. “And just getting back into the workforce after being a stay-at-home mom was a challenge in itself.”

Feat7_14Rihm2 Rihm Kenworth's location on University Ave. carries new and used trucks for sale, as well as parts and service. (Photo by Jan Willms)[/caption]

But since her take-over as president and dealer principal of Rihm Kenworth, the company has added another location and increased its employee count by 60. Besides the University Ave. location, the trucking company has locations in Albert Lea, Superior and Sauk Centre. It has 160 employees.

The company was named dealer of the year in both 2011 and 2012. It also received the National Women’s Business Enterprise Certification for its diversity. In 2013, Rihm Kenworth received the Family Business award in the resilience category.

“The company has been resilient,” Rihm said. “It was founded during the depression and stayed open through the Second World War. Only one other Kenworth company in the United States has been owned by one family, and that company is a little older than ours.”

“We’ve weathered economic storms over the years,” Rihm continued.

The dealership, which sells new and used trucks and provides parts and service, has purposely built its medium-duty business, according to Rihm. She said this has helped the company weather the economic upheavals over the past few years.

With medium-sized trucks, drivers are delivering their own product and continue to come in. They continue to purchase parts and get their trucks serviced.

“We also have a vibrant export business and export parts all over the world,” said JB Rihm, who serves as the global sales manager and market analyst for the company.

“Currently we do, or have done, business in 56 countries,” he noted. “We are dealing with oil and gas industries. The Middle East and China are our two biggest markets. We export truck parts to those regions for Kenworth and other brands. I believe Minnesota is one of the largest export states.”

He continued to say that the truck industry is behind the car industry in a lot of aspects, but by using social media and updating its technology, Rihm Kenworth is trying to grow its customer base and awareness.

Kari Rihm said she has never had second thoughts about taking over the business.

“It really feels like I did the right thing,” she said. “I learn something new every day, and it is good to be connected with the people I had heard about for years.”

She said some of the employees have been with the company for 30 years or more, and she really enjoys meeting retired employees or customers who can remember the founder.

“A customer brought in a 1974 truck that he said needs a new paint job,” she said. “He remembers coming in when he was little, with his father.”

Rihm said the company is hosting an event in August featuring Kenworth products and celebrating its 65th anniversary as a Kenworth dealer.

She reflected again that she could never have sold the family business, as the fourth generation becomes a part of it.

“I consider myself a 3rd generation placeholder,” Rihm explained. “And now JB is working here, and my daughter Libby has taken a break from school and is working here.”

“It’s fun to grow something,” she said. “Even the challenges are fun.”

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