july 2014 msada auto dealer

July 2014 • Vol. 27 No. 7

FIRST CLASS MAILUS POSTAGE PAID

BOSTON, MAPERMIT NO. 216

MSADA, One McKinley Square, Sixth Floor, Boston, MA 02109

autoD E A L E R

M A S S A C H U S E T T S

The official publication of the Massachusetts State Automobile Dealers Association, Inc

‘No Other Event Like This’

‘No Other Event Like This’

TA B L E O F C O N T E N T S

4 FROM THE PRESIDENT: Stay Sharp

6 THE ROUNDUP: How Are Your Compliance Programs?

10 TROUBLESHOOTNG: Recalls and Dealer Obligations

11 LEGAL: New Massachusetts Minimum Wage Law Is A

Wake-Up Call To Review Your Pay Plans

12 AUTO OUTLOOK

14 COVER STORY:

No Other Event Like This

18 NEWS From Around the

Horn

22 NADA UPDATE: Auto Credit

Must Remain Affordable and

Accessible for Car Buyers

24 NADA MARKET BEAT

www.msada.org Massachusetts Auto Dealer JULY 2014

The official publication of the Massachusetts State Automobile Dealers Association, IncS TA F F D I R E C T O R Y

Robert O’Koniewski, Esq.Executive Vice [email protected]

Jean Fabrizio Director of Administration

[email protected] Brennan, Esq.

Staff [email protected]

A U T O D E A L E R M A G A Z I N E

Robert O’Koniewski, Esq.Executive Editor

Catherine MacDonaldEditorial Coordinator

[email protected]

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address changes should be submitted to: MSADA by e-mail: [email protected]

Postmaster: Send address change to:

One McKinley Square, Sixth FloorBoston, MA 02109

autoD E A L E R

M A S S A C H U S E T T S

Auto Dealer is published by the Massachusetts State Automobile Dealers Association, Inc. to provide information

about the Bay State auto retail industry and news of MSADA and its membership.

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from the PRESIDENT4

JULY 2014 Massachusetts Auto Dealer www.msada.org

by Scott Dube, MSADA President

I

Stay SharpWhy we all have to update our skill sets

n an ever changing industry, old knowledge isn’t good enough.

We all came up when computers were for keeping records. In fact, most of us remember the “precomputer dealerships.” In 20 years, the growing world of the Internet is completely changing almost everything we thought we knew about how to sell automobiles. It’s true that the core sales principles we’ve kept will always be central to making a sale, but getting people in the door is a completely different ball game.

These days, the information consumers have access to dwarfs what our fathers and grandfathers ever could have imagined. When many potential customers walk through the door, they’ve compared dozens of vehicles. They know not just your manu-facturer but have comparisons ready for every competitor un-der the Sun.

We’ve been adjusting to this new reality for a long time. Dur-ing the past few years, we’ve seen the rise of price comparison sites that have given would-be customers even more informa-tion to work with. Whether such information is accurate or not often doesn’t matter -- if customers believe they have the upper hand, everything can change quickly. Vehicles are quickly be-coming more and more complex, are feature rich, and the cus-tomer is often as knowlegable as the salesperson. The Internet has made all of this research so much easier. It requires us to step up our skills and knowledge!

For years, many of us have, to one extent or another, buried our heads in the sand. Now, as we face constant threats from various corners of the industry, it’s more important than ever that we dealers hone our skills collectively in order to make sure we’re not losing out on sales that could easily be ours if

we keep our skills up to date. Not only that but the reputation of our industry, perhaps the very existence of the franchise sys-tem, depends on we dealers being prepared for today and the near future.

Your Association works every day to make sure our member dealers have the access to the information they need to suc-ceed in the marketplace as a group. One of our most popular ways we’ve shared that information with you is Internet sales expert Sean Bradley, who we’ve hosted at past Annual Meet-ings. While short bursts of his insight have been helpful, an opportunity to do a more in depth workshop is something you said you could benefit from. This Internet Sales 20 Group is a perfect opportunity for that!

The Internet Sales 20 Group, which will take place Septem-ber 22-24 at the Marriott Newton Hotel, is a great opportunity to experience industry expert Sean Bradley’s insight on how all of us can do a better job reaching for those Internet sales.

The three-day intensive workshop will put us alongside Bradley and other experts, consultants, and vendors for an in-teractive experience that will help point the way forward for tackling the growing opportunities in Internet sales. It promises to be informative and useful, but also a whole lot of fun. Look for more information and more of my thoughts about the event in this month’s cover story on page 14.

I look forward to seeing you in September. For any questions about registration, please contact MSADA Executive Vice President Robert O’Koniewski by phone at (617) 451-1051 or by email at [email protected]. In the meantime, I hope you continue to enjoy the remaining days of Summer.

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MSADA

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Name Contact TelephoneADESA Boston Chris Carli (508) 270-5403ADP Dealer Services Maria Trezza (973) 404-4466Albin, Randall & Bennett Barton D. Haag (207) 772-1981American Fidelity Assurance Co. Tom Trudell (413) 885-5477AutoAlert Don Corinna (949) 398-7008AutoRaptor (RAL) Howard L. Leavitt (401) 421-6533Bank of America Merrill Lynch Dan Duda and Nancy Price (781) 534-8543 Bellavia Blatt Andron & Crossett, PC Leonard A. Bellavia, Esq (516) 873-3000 Blum Shapiro John D. Spatcher (860) 561-4000Boston Globe Mary Kelly (617) 929-8373The Boston Business Advisory Group Paul Cuomo (781) 681-1501 Vincent Saccone (781) 681-1519Burns & Levinson LLP Paul Marshall Harris (617) 345-3854Cars.com Heidi Allen (312) 601-5376 CitNOW Jack Gardner (617) 221-8008 CloudDOCX Michael DeCarlo (585) 704-6826 Construction Management & Builders, Inc. Kate Sullivan (781) 246-9400CVR John Alviggi (267) 419-3261Dealermine Inc. Karen Parmenter (800) 304-3341 x5179 DealerTrack Ernest Lattimer (516) 547-2242Downey & Company Paul McGovern (781) 849-3100EasyCare New England Inc. Mike Douglas (770) 246-9724Ethos Group, Inc. Drew Spring (617) 694-9761F & I Resources Jason Bayko (508) 624-4344Federated Insurance John Ballard (859) 312-9896First Citizens Federal Credit Union Joe Ender (508) 979-4728 Fisher & Phillips LLP John Donovan (404) 240-4236 Joe Ambash (617) 532-9320GW Marketing Services Gordon G. Wisbach Jr. (781) 899-8509 Huntington National Bank John J. Marchand (781) 326-0823Key Bank James Q. Moretti (781) 558-5132KPA Rob Stansbury (484) 326-9765Leader Auto Resources, Inc. Brendan J. Murphy (518) 878-6341Lynnway Auto Auction Jim Lamb (781) 596-8500M & T Bank John Federici (508) 699-3576Management Developers, Inc. Dale Bosch (617) 312-2100MetroMedia Energy Timothy Teevens (800) 828-9427Micorp Dealer Services Frank Salkovitz (508) 832-9816Mid-State Insurance Agency James Pietro (508) 791-5566Mintz Levin Kurt Steinkrauss (617) 542-6000Murtha Cullina Thomas Vangel (617) 457-4000Nancy Phillips Associates, Inc. Nancy Phillips (603) 658-0004O’Connor & Drew, P.C. Kevin Carnes (617) 471-1120Performance Management Group, Inc. Mark Puccio (508) 393-1400R.L. Tennant Insurance Agency, Inc. Walter F. Tennant (617) 969-1300Reflex Lighting Ping Weiner (617) 269-4510Resources Management Group J. Gregory Hoffman (800) 761-4546Reynolds & Reynolds Marc Appel (413) 537-1336Robinson Donovan Madden & Barry, P.C. James F. Martin, Esq. (413) 732-2301Samet & Company John J. Czyzewski (617) 731-1222Schlossberg, LLC Michael O’Neil, Esq. (781) 848-5028Sentry Insurance Company Eric Stiles (715) 346-7096Shepherd & Goldstein Ron Masiello (508) 757-3311Silverman Advisors, PC Scott Silverman (781) 591-2886Southern Auto Auction Tom Munson (860) 292-7500Sovereign Bank Richard Anderson (401) 432-0749Target Dealer Services Andrew Boli (508) 564-5050TD Auto Finance BethAnn Durepo (603) 490-9615TD Bank Michael M. Lefebvre (413) 748-8272TrueCar Steve White (774) 392-2904 Wells Fargo Dealer Services Christopher Peck (508) 314-1283 Wicked Local Media Massachusetts Jay Pelland (508) 626-4334 Windstream Rick Caruth (978) 296-0313; (413) 977-6111 Zurich American Insurance Company Steven Megee (774) 210-0092

AssociAte MeMber Directory

MSADA BOARD Barnstable County

Gary Beard, Dick Beard Chevrolet

Berkshire CountyBrian Bedard, Bedard Brothers Auto Sales

Bristol CountyRichard Mastria, Mastria Auto Group

Essex CountyWilliam DeLuca III, Woodworth Motors

John Hartman, Ira Motor Group

Franklin CountyJay Dillon, Dillon Chevrolet

Hampden CountyJack Sarat, Jr., Sarat Ford

Hampshire CountyBryan Burke, Burke Chevrolet

Middlesex CountyChris Connolly, Jr., Herb Connolly Motors

Scott Dube, Bill Dube HyundaiFrank Hanenberger, MetroWest Subaru

Norfolk CountyJack Madden, Jr., Jack Madden Ford

Charles Tufankjian, Toyota Scion of Braintree

Plymouth CountyChristine Alicandro, Marty’s Buick GMC Isuzu

Suffolk CountyRobert Boch, Expressway Toyota

Worcester County Steven Sewell, Westboro Mitsubishi

Steve Salvadore, Salvadore Auto

Medium/Heavy-Duty Truck Dealer Director-at-Large

[Open]

Immediate Past PresidentJames G. Boyle, Tuck’s Trucks

NADA DirectorDon Sudbay, Jr., Sudbay Motors

OFFICERSPresident, Scott DubeVice President, Chris Connolly, Jr.Treasurer, Jack Madden, Jr.Clerk, Charles Tufankjian

MSADA

A franchise dealership is probably the highest regulated business in this country, being account-able to scores of federal and state laws, regula-tions, and agencies. Making sure your operations remain in compliance with all these laws and rules is a daunting task.

Throughout the year your Association sponsors any number of seminars and webinars designed to improve our member dealers’ compliance activi-ties. These are on top of our writings, such as bul-letins, guides, and manuals, we issue periodically in print and electronically and make available on our website (www.msada.org).

Under the Obama administration, with its over-zealous regulatory mission, dealers are facing two major regulatory challenges coming out of Washington: the Consumer Financial Protection Bureau’s (CFPB) allegations of discrimination when calculating dealer compensation for arrang-ing auto financing and the Federal Trade Com-mission’s (FTC) enforcement program involving dealer advertising.

Further, our state’s Attorney General maintains continued scrutiny over dealer advertising practic-es and is not shy to pursue hefty fines and compli-ance agreements against alleged violators.

In continuing with our roster of Education and Compliance Seminars, we hosted a live seminar on July 29 at the Crowne Plaza Hotel in Natick, at which NADA senior regulatory attorney Paul Metrey and local auto dealer attorney Scott Silver-man provided an overview of NADA’s optional Fair Credit Compliance Program, and recent en-forcement actions by the Federal Trade Commis-sion and the Massachusetts Attorney General’s

Office on vehicle advertising.The potential legal and financial liability for

dealers posed by the recent actions of the CFPB, the FTC, and the Massachusetts Attorney Gen-eral are considerable. Protect your dealership by learning how to mitigate the risks by attending our seminars in the future.

Another tool our members can take advantage of is our legal compliance program we unveiled early last month.

As we wrote last month, your Association’s Board of Directors approved a plan to enhance the value of your membership, which we announced at our Annual Meeting. This unique program is de-signed to assist our members in their compliance with employment laws as well as occupational and environmental safety laws. This program will be underwritten in substantial part by your Asso-ciation in order to reduce costs and encourage all of our members to take advantage of this oppor-tunity.

We have established a two-part subsidy pro-gram to support your use of several compliance services offered by certain vendors, as described below.

Employment Law Compliance Program: The MSADA has worked out an arrangement with Fisher & Phillips LLP, the national labor and employment firm with which we have worked for years, to provide the following services to our members, at a special discounted fee.

The MSADA will underwrite a portion of each member’s legal fee for participating in any portion of the program in the following manner:• If you are a single point dealer, the MSADA

6


The Roundup

by Robert O’Koniewski, Esq. MSADA Executive Vice President

How Are Your Compliance Programs?

7


MSADA

underwritten portion of one of the three items offered below will be $500.

• If you have an anchor store and one or more affiliates, the MSADA underwrit-ten portion of one of the three items of-fered below will be $500 for the anchor store and $300 per affiliate.The three Fisher & Phillips services

dealers can partake in are the following. We encourage you to utilize each service; the MSADA financial assistance, how-ever, is only available for a single choice:

Pay Plan Review: Fisher & Phillips will review each dealership’s pay plans for all of its employees for compliance with Massachusetts and Federal wage and hour law. It will advise each dealership accord-ingly. The cost for this review is $1200, minus the MSADA portion of $500 (per single point/anchor)/$300 (per affiliate), for a total to you of $700/$900, if this is your selected choice.

Employment Handbook/Application Review: Fisher & Phillips will review each dealership’s employment handbook and application form for compliance with Massachusetts and Federal law and make recommendations accordingly. The cost for this review is $1200, minus the MSA-DA portion of $500 (per single point/an-chor)/$300 (per affiliate), for a total to you of $700 (per single point/anchor)/$900 (per affiliate), if this is your selected choice.

3. Management Training and Gen-eral Audit: Fisher & Phillips will come to your dealership to provide special train-ing to your managers about compliance with employment laws and the risks to the managers themselves and the dealership of failing to comply with employment laws. This includes training to avoid ha-rassment and interference with employee rights on social media. In addition, Fisher & Phillips will meet with top management to perform a general audit of employment law compliance, such as I-9 forms and FMLA. The cost of this training and audit is $1700, minus the MSADA portion of $500 (per single point/anchor)/$300 (per affiliate), for a total to you of $1200 (per single point/anchor)/$1400 (per affiliate),

if this is your selected choice.To take advantage of this unique op-

portunity and begin the process, simply contact attorney Joe Ambash, the Boston Managing Partner of Fisher & Phillips, by phone at (617) 532-9320 or by email at [email protected]. Fisher & Phillips will coordinate with MSADA to ensure that members receive the reduced fee underwritten by MSADA.

Occupational/Environmental Safety Law Compliance Program: In addi-tion to the employment law compliance program, MSADA has worked out an arrangement with two workplace safety compliance firms that many dealers use presently: John Furrh Associates and KPA.

The Association’s financial commit-ment is the same as in the employment law compliance program. The MSADA will underwrite a portion of each member’s fee charged by either Furrh Associates or KPA for services rendered to your dealership(s) during the year in the following manner:• If you are a single point dealer, the MSA-

DA underwritten portion of either’s ser-vice fee for the year will be $500.

• If you have an anchor store and one or more affiliates, the MSADA underwrit-ten portion of either’s service fee for the year will be $500 for the anchor store and $300 per affiliate.

To take advantage of this opportunity and begin the process, simply contact:

• At Furrh Associates – Jennie Cormier: (508)824-4939 or [email protected]

• At KPA – Rob Stansbury: (484)326-9765 or [email protected] company will coordinate with

MSADA to ensure that members receive the reduced fee for services as underwrit-ten by MSADA.

Laws and regulations are getting more complicated every year. You can no lon-ger gamble and try to go it alone. We urge every member to take full advantage of this program to keep our dealer body com-pliant with all pertinent employment and workplace rules.

So far 35 dealerships have taken advan-

tage of this program. Is your store one of them?

Should you have any questions, please do not hesitate to contact me.

DealersEdge WebinarsAre you taking full advantage of our

weekly educational and training seminars provided to you through our partnership with DealersEdge Management Training? Are you receiving our weekly e-mails an-nouncing upcoming webinars and regis-tration information?

If not, you are missing out on an incred-ible bargain that will add value to your employees knowledge and skills, and ulti-mately to the success of your stores.

DealersEdge annually provides more than 45 live weekly webinars that feature timely, topical information delivered by an incredible roster of presenters that are experts in various fields.

The live courses, and more than 100 pre-recorded webinars (and growing), are available to MSADA members in two ways. Members can elect to register for a live webinar or purchase a pre-recorded course on an a la carte basis with MSA-DA’s member discount of $149 per course OR you can sign up for the MSADA VIP Season Ticket. For just $800 annually, a dealership can use the VIP Season Ticket to register up to 10 team members to ac-cess all programming, both live and re-corded. That’s more than $30,000 worth of training for JUST $800!

If you aren’t already, we hope you will consider this extremely cost-effective and time-saving method of training your man-agement staff on the latest information in their area of expertise. If you have any questions, please don’t hesitate to contact DealersEdge at 800-321-5312 or me at [email protected].

The upcoming schedule of webinars for the next several weeks is as follows:• Thursday, August 7, 1:00 p.m. EDT – Ed

Kovalchick: The Habits and Practices of the Exceptional Service Manager.

• Thursday, August 14, 1:00 p.m. EDT – Joni Stuker: Effective Dealership

The Roundup


8

BDCs…What’s Working and What to Avoid.

• Thursday, August 21, 1:00 p.m. EDT – Brooke Samples: Benchmarks and Key Performance Indicators…A Deeper Look at This “Every Manager” Tool.

• Thursday, September 4, 1:00 p.m. EDT – Jeff Sacks: The Habits and Practices of the Exceptional General Manager.

• Thursday, September 18, 1:00 p.m. EDT – Steve Kwiatkowski: How to Create a Professional Image on the Service Drive…Improve Retention, CSI, Sales and Profits.

• Thursday, September 25, 1:00 p.m. EDT – Steve Nickelsen: The Habits and Prac-tices of the Exceptional Used Vehicle Manager.

Save the Date: Internet Sales 20 Group - Boston

On September 22-24, at the Marriott Newton Hotel, we will be joining forces with DealerSynergy to provide our mem-ber dealers and other affiliated industry entities throughout New England the opportunity to participate in a three-day series of workshops billed as “Internet Sales 20 Group – Boston”.

DealerSynergy has conducted five similar events around the country, most recently in Atlantic City, with increasing attendance and success at each one.

Check out our ad in this month’s publi-cation as well as our cover story, includ-ing information about DealerSynergy CEO Sean V. Bradley, who has presented at MSADA meetings in the past. Look for our registration materials in the coming weeks or register today at www.internet-sales20group.com.

This event will provide you with every-thing you need to move your dealership’s needle in the right direction. Learn more than just the information. Learn how to evaluate, strategize, and execute a solid action plan to rise above your competition.

TIME Dealer of the Year 2015It is that time of the year again. The

highest honor bestowed on a dealer each year at the NADA convention is

the TIME Magazine Dealer of the Year Award (TDYA). The process begins with nominations from each state. At MSADA we consider the state nominee so impor-tant that he or she is also designated as the “Massachusetts Dealer of the Year”.

Please help by nominating candidates for selection as the Massachusetts TDYA. The attached form details judging criteria and requirements, but here are the quali-ties that the judges at the national level are looking for:• Community service. This can be civic,

political, educational, or philanthropic. The more personally involved the dealer is, the better.

• Industry leadership. This can be state or national association leadership, or in-volvement in dealer councils.

• Quality businessperson. This means success as a dealer measured by awards, commitment to customer service, and profitability. But success is measured relative to dealership size by using benchmarks. Both large and small deal-erships have been finalists or won the national TDYA. Dealers may nominate him/herself or

another dealer. Since your Association’s leadership does the selection at the state level, the members of the MSADA Execu-tive Committee are not eligible; neither are the TDYA Recipients for the last four years nor current NADA directors. The last four TDYA honorees were: Brian Kelly, Ray Ciccolo, Ann Regan, and Bill DeLuca III.

Please give this your careful consid-eration and e-mail me at [email protected] with your nomination. Nomi-nations must be received at our office by Friday, August 8. Thank you for your as-sistance on this matter.

Four Initiative Petitions for November 2014 Ballot

It’s now all up to the voters.What started as seven initiative peti-

tions in January are now down to four.With the completion of the signature-

gathering process earlier this month, Sec-retary of State William Galvin has certi-fied the following petitions to be consid-

ered by voters in November:• Question #1: Repeal automatic annual

hikes in the gas tax based on increases in the Consumer Price Index;

• Question #2: Expand the 5-cent bottle re-demption law (the so-called “Bottle Bill”) to water bottles, juices, and other drinks;

• Question #3: Repeal the 2011 legaliza-tion of casino gambling; and

• Question #4: Establish mandatory earned sick time for employees.As an industry that collectively em-

ploys over 20,000 men and women, the question that potentially would have the most impact on dealership operations is a state-mandated requirement to provide paid sick time to all employees.

Leading up to the November 4 Election Day, advocates for both sides on these issues will be expending large sums of money on political advertisements, which will be in addition to the sums paid for all the ads by the various statewide candi-dates. Welcome to the political season in Massachusetts!

Our PACs - DEAC & NCDPACWe appreciate the contributions thus

far received from our member dealers who have answered our calls for dona-tions to our PACs.

Each year MSADA expresses itself politically through NADA’s federal PAC, Dealers Election Action Committee (DEAC), and through our state PAC, the New Car Dealers Political Action Com-mittee (NCDPAC). We depend on con-tributions from our dealers to keep these PACs strong, as we need to have an ac-tive voice in Washington and on Beacon Hill. Contributions to our PACs are an inexpensive insurance policy. Since by law we cannot use our membership dues or other association revenues for political contributions, the PACs help us to remain strong politically as we advocate for our dealers’ interests in the political process.

If you have not yet given to the PACs this year, please contact me at [email protected] and we can make sure your contributions happen. Thank you.

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www.msada.org Massachusetts Auto Dealer JUNE 2014

MSADA

MSADATroubleshooting10


Motor vehicle recalls are more fre-quent these days than sea gull sight-ings on Cape Cod. While most of the headlines have been generated by the controversy surrounding GM’s ignition switches, seemingly every manufacturer has issued a recall notice recently, with problems ranging from faulty air bags and pinched break lines to suspect van-ity lamp wiring and seat belt fraying.

The National Highway and Motor Ve-hicle Safety Act of 1966 first codified the authority of the Department of Trans-portation’s National Highway Traffic Safety Administration (NHSTA) to set motor vehicle safety standards and to require manufacturers to recall vehicles that fail to meet these standards or have safety related defects. The United States Department of Environmental Protec-tion also can issue recalls, but only for violation of federal emission standards.

Manufacturers initiate the majority of recalls and must alert NHTSA, vehicle owners, distributors, and dealers when a safety defect is discovered. NHTSA is responsible for monitoring the manufac-turer’s response to a safety defect, and the manufacturer is responsible for the cost of repairing the defect.

According to NHSTA, there were 632 recalls in 2013, encompassing 22 mil-lion vehicles. While millions of vehicles become subject to NHSTA safety recalls each year, a relatively small percentage of these recalls involve “stop operation”

or “stop sale” notices.Dealers must be aware of the follow-

ing information pertaining to dealer re-sponsibilities under relevant federal re-call law (compiled by NADA):

New vehicles in inventory or tran-sit: Once any notice of an outstanding safety recall is received, federal law prohibits the delivery of impacted new vehicles until the recall is remedied.

Used vehicles in for service, in in-ventory, or coming into inventory that are of the same make as the dealer sells new: Federal law neither imposes an obligation on dealerships to know the safety recall status of used vehicles, nor prohibits the resale of used vehicles with outstanding safety recalls. However, it is recommended that used vehicles of the same line make a dealer sells new be checked for outstanding, unremedied recalls (safety or emissions) since the dealership is authorized to do service or repair work involved. Important: If and when a dealership receives a recall no-tice indicating that certain used vehicles should not be operated and/or resold, they should not be operated or resold until the recall is remedied.

Used vehicles in for service, in in-ventory, or coming into inventory that are not of a make the dealer sells new: Again, Federal law neither imposes an obligation on dealerships to know the safety recall status of used vehicles, nor prohibits the resale of used vehicles with outstanding safety recalls.

Massachusetts law has no affirmative duty to check for open recalls on vehi-cles. However, in order to best protect themselves, dealers should always run a vehicle check report on a used vehicle taken in trade or purchased at auction in order to ascertain as much information about the vehicle as a consumer could.

Further, our Massachusetts Attorney General has promulgated regulations un-der the Consumer Protection Act (MGL

Chapter 93A) regarding disclosure of product information to a consumer. The Act is broadly written to make unlawful any unfair methods of competition and any unfair or deceptive acts or practices in the conduct of any trade or commerce.

The disclosure issue is addressed in the regulations at 940 CMR 3.16(2), which states, “Without limiting the scope of any other rule, regulation or statute, an act or practice is a violation of [the Act] if: … (2) Any person or other legal entity sub-ject to this act fails to disclose to a buyer or prospective buyer any fact, the disclo-sure of which may have influenced the buyer or prospective buyer not to enter into the transaction;…” [emphasis added]

Thus, the failure to disclose any infor-mation (including repaired vehicle dam-age) – regardless of dollar amount – that would influence a buyer not to enter into the transaction is an unfair and deceptive practice. The law and the regulations make no exception for seemingly incon-sequential damage, say, under $100.

This obviously creates a sliding scale in terms of disclosure: The greater the problem with the vehicle, the stronger a consumer’s argument that it would have influenced his or her decision not to pur-chase the new or used vehicle.

As such, dealers need to disclose any and all facts about a vehicle to a buyer or prospective buyer no matter how trivial the information may appear to be. In this manner, a dealership can protect itself and avoid the severe penalties (treble damages, attorneys’ fees) provided un-der the Consumer Protection Act.

If you require any additional informa-tion about complying with recall laws or any other issue, please contact Robert O’Koniewski, MSADA Executive Vice President, [email protected], or Peter Brennan, MSADA Staff Attorney, [email protected] or by phone at (617) 451-1051.

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Recalls and Dealer Obligations

Staff attorney, MSaDa

By Peter Brennan, Esq.


MSADA Legal 11

On June 26, 2014, Massachusetts Gov-ernor Deval Patrick signed into law a bill that will increase the state’s minimum wage by $1 each year until 2017. Current-ly $8 an hour, the minimum wage will be $9 an hour beginning January 1, 2015, $10 an hour beginning January 1, 2016, and $11 an hour beginning January 1, 2017, the highest of any U.S. state.

Dealerships should take steps now to en-sure that they are paying their employees appropriately as of the first of each com-ing year. One such step should be a review (and revision, if necessary) of your pay plans, to ensure compliance with the mini-mum wage laws and other wage payment laws. A dealership’s failure to comply with such laws can prove very costly.

Dealerships Must Comply With State And Federal Law. To be sure, Massachu-setts dealerships must comply with the Massachusetts Wage Act and Wage Pay-ment Laws, including the new Massachu-setts Minimum Wage Law. At the same time, they also must comply with the Fed-eral Fair Labor Standards Act. Where state and federal laws differ, dealerships must ensure that they are complying with the more employee-friendly law. For example, where the Federal minimum wage is $7.25 an hour and the Massachusetts minimum wage will increase to $9 an hour, dealer-ships must ensure that they comply with the latter.

Why It Matters. Compliance with state and federal wage laws matters be-cause the costs of noncompliance can be very significant, regardless of whether the noncompliance was innocent and un-intentional. In addition to the amounts actually owed to employees, in a lawsuit setting, dealerships also would be on the hook for triple that amount and their own and their employees’ attorneys’ fees. They also may face civil and/or criminal penal-ties from the state or federal governments.

And while the liability can be hefty even just for one employee, the fact is that many violations are systemic and can affect a number of employees, which can drive up the costs exponentially. These things tend to snowball; once one employee uncovers and attempts to address a violation, s/he tends not to keep it to him or herself.

Letting Sleeping Dogs Lie Is Not A Good Strategy. Some dealerships may think that, because no noncompliance is-sues have surfaced to date, letting sleeping dogs lie is a prudent or cost-effective strat-egy. They would be mistaken. Employees generally have a three-year window to re-cover unpaid wages. Accordingly, finding and fixing mistakes now can reduce your liability exposure, a day at a time. More-over, should the state or federal govern-ment audit your dealership for compliance issues—as they recently have been doing, and levying substantial penalties—they typically look favorably on dealerships who have taken it upon themselves to look for and correct such mistakes. It shows that the dealership is trying to comply with the wage payment laws and may reduce any penalties the government decides to impose.

Overtime Laws Are Tricky. As draco-nian as the penalties for noncompliance can be, the laws are not always easy to follow. And while an employee may be exempt from overtime pay under Federal law (for example, as a salesman, partsman, mechanic, or commission-paid employ-ee), s/he may not be exempt from over-time pay under Massachusetts law. This is where many dealerships run into problems (and can incur significant liability). But dealerships can avoid such problems (and liability) by structuring such positions to comply with state and federal law, with-out really changing the total amount due to its employees. In other words, you can comply without materially affecting your

bottom line.Can Your Next-Door-Neighbor Un-

derstand Your Pay Plans? Pay plans should be in plain-English and easy to follow and understand, even by your next-door-neighbor. Dealerships should know that if a dispute arises between them and their employees about how they were sup-posed to compensate them, individuals not in the industry (i.e., judge, jury, investiga-tor) will have to decide what the pay plan says. And, importantly, if the pay plan is ambiguous, it will be construed against the dealership. In other words, the judge, jury, or investigator typically will defer to an employee’s reasonable interpretation.

MSADA Compliance Plan. In June, the MSADA announced its Employment Law Compliance Program, to provide certain legal services to member dealerships at a discounted and subsidized fee. One such service we offer is a Pay Plan Review, whereby we will review your pay plan and advise of any violations. If you would like to take advantage of this opportunity, please contact us at the number below, or by email at [email protected].

t

New Massachusetts Minimum Wage Law Is A Wake-Up Call To Review Your Pay Plans

By Joseph W. Ambash and Jeffrey A. Fritz

Joe aMbaSh iS the Managing Partner anD Jeff fritz iS counSel at fiSher & PhilliPS, llP, a national labor anD eMPloyMent firM rePre-Senting hunDreDS of DealerShiPS in MaSSachu-SettS anD nationally. they May be reacheD at 617 722 0044.

12


AUTO OUTLOOK


13MSADA


16 COVER STORY14

2014

Sean Bradley tells the story of a Massachusetts dealership that, for a long time, sold zero cars online. The owner hired him as a consultant, and online sales shot up. A system in place, Bradley stepped out and left the dealership to maintain sales without him. When online orders dipped, Bradley was called back in. Once again, sales skyrocketed.

However, Bradley, an automotive Internet sales, business development, and auto marketing expert, can only be in one place at a time. It’s not feasible that every single dealership should have to hire outside consultants to boost sales every time they slow. A business model that includes an in-house staffer with the skills and knowledge to boost online sales would not only be more effi-cient, it could promise longer lasting, consistent sales success.

This September in Boston, that’s what the Internet Sales 20 Group work-shop aims to do.

The three-day intensive workshop puts dealer principals, general manag-ers, experts, consultants and vendors in a room together for an interactive, educational experience. The Boston event will focus on customer relations

‘No Other Event Like This’ by Catherine MacDonald

Sean V. Bradley is a worldwide, expertly trained Consultant, Speaker and Trainer. He is a 4-time NADA convention speaker, Franklin Covey Certified Facilitator, National Speakers Association member and State Association Speaker and Trainer. Sean started Dealer Synergy more than 10 years ago, but has been in the industry more than 15 years. He has spoken at over 100 NCM and NADA 20 Groups.

Sean learned the business from the ground up. Beginning as a sales consultant, he has since held positions at dealerships as Sales Manager, Internet Sales Manager, Special Finance Manager and Business Development Director. At his first dealership, he averaged more than 30 units per month, taking the sale from start to finish. On

the heels of his success, Sean was recruited to a Dealer Group, Pine Belt Automotive, where he moved their Nissan/Kia/Cadillac store from 20 units per month online to more than 110! He re-peated those results two years later when he took over the Internet Department of a major Nissan store in the Philadelphia market, and grew their volume from 27 to more than 100 units per month.

15MSADA


management -- a request of Toyota, which has enrolled 28 deal-erships thus far.

As the designer of the workshop, every attendee gets to take home a bit of Sean Bradley’s expertise.

“It was very important for me to develop the curriculum,” Bradley says. “We took years to develop the curriculum.”

MSADA President Scott Dube attended the recent workshop in Atlantic City, and “was so impressed with the whole thing,” he wanted to find a way to design a program that would be great for Massachusetts dealers. Dube has known Bradley for years

-- his dealership is the example that leads this story.“Everybody recognizes our business is being changed very

rapidly. While the Internet has been around for quite some time, the consumer is getting an unprecedented amount of informa-tion,” Dube says. “The way dealers respond to this will make or break their futures. You can’t say, ‘Well we’re not doing that kind of business’ -- everybody is doing that kind of business, whether they want to or not, and they’d better do it well rather than poorly.”

When Dube was a professional pilot, he went back to school

What is CRM?

16 ‘No Other Event Like This’16


every year to stay on top of industry changes. This is no different, he says.

“We’re constantly upgrading our skill set -- that’s how dealers view it. Like every other profession, we need to keep our skill sets relevant,” Dube said.

Workshop attendees have the opportunity to hear success sto-ries from other dealers, listen to experts, and learn how many components of their operations can bolster Internet sales. Brad-ley’s tried and tested methods for sales success involve ev-erything from human resources to SEO, from recruit-ing to digital marketing.

“There’s no magic bean; you need a holistic approach,” Bradley said.

Internet Sales 20 Group event planner Anna G o n -Gonzales says with all the valuable tools offered to dealers throughout this workshop, there is “no excuse not to go.”

“If they want to sell more vehicles and see more profitably, this is where to go,” she said.

Besides the wealth of information presented, the workshop is an opportunity to network and strengthen connections with industry leaders, consultants, and fel-low dealers.

“There’s an opportunity to connect with people for ex-

tended periods of time that you just can’t get anywhere else. There’s no other event like this,” Dube said.

While other similar events have different breakdown sessions, where attendees have to pick who to go see speak, the Internet Sales 20 Group workshop is structured to be one long session. This dynamic encourages interaction between the audience and panelists, and valuable insights as experts and panelists present varying views.

“If different vendors don’t agree on topics, you get to see them hash out these issues live in front of you,” Dube said. “Their competition is there listening to them so that’s an interesting dynamic that develops.”

While constructive disagreements are encouraged, there is one thing vendors are not permitted to do on stage: pitch. During their oppor-tunity to speak, ven-dors are not allowed to attempt to sell their products, whichDube says is “much different than a lot of

“You can’t say, ‘Well we’re not doing that kind of business’ — everybody is doing that kind of business, whether they want to or not, and they’d better do it well rather than poorly.”

—MSADA President Scott Dube

What is CRM? Customer relationship management (CRM) is a system for managing a company’s interactions with current and future customers. It involves using technology to organize, automate and synchronize sales, marketing, customer service, and technical support.


17

experiences dealers have had at similar events in the past.”

Including vendors in this way adds an important element to the workshop, Bradley says.

“As long as people abide by the rules, why banish them? Some of these vendors, they’re not parasites, they’re subject matter experts,” Bradley said.

Bradley says the time for vendors to speak freely about their products after the sessions -- during the “rockstar VIP party.”

The first and second evenings of the workshop include social events for attendees, speakers, and vendors to let loose together, and Bradley promises a great time. He says at the past two events in Los Angeles and Atlantic City, workshop goers enjoyed live performances and partied at popular night clubs. For the September event, his company has booked the Spirit of Boston cruise ship.

“We’re going to re-live the Boston Tea Party,” he said. “And that’s only the first night.”

Dube said he encourages dealers to sign up before the event sells out. Many dealerships have already

committed attendees and open seats will continue to fill with dealers from across the country.

At the Atlantic City workshop Dube at-

tended, he says every state was represented

Gonzales says the oppor-tunity to compare notes

with dealers from around the country is invaluable.

“The workshop is in-structional, fun, and the

networking is awesome,” she said. “Ev-eryone gets into it, and everybody gets together. That’s what this is all about.”

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Instructional Design: With one clear curric-ulum that has a strong beginning, middle and end.Dealer Interaction: Real-life dealers dis-cuss their stories of successes, failures, tri-als and tribulations.Maximum Exposure: You will never miss out on a session that may be of importance to you or your store.Bench Mark Composite: The 28 Toyota stores will be evaluated, reviewed, ana-lyzed and ranked based on 7 Key Perfor-mance IndicatorsPanels: After a few starter questions the panel is an open forum for free-flowing, impromptu questions, encouraging inter-action between members, sponsors and speakers.Workbook: A 90-page workbook, filled with speaker information, workshop notes, and activities, and four full pages to create your custom action plan and exit strategy.The Follow Up: In addition to your Ac-countability Partner, IS20G provides fur-ther resources all year round for members to reference, including all PowerPoint pre-sentations, supplemental content, videos, forums and articles

MSADA

What is CRM? Customer relationship management (CRM) is a system for managing a company’s interactions with current and future customers. It involves using technology to organize, automate and synchronize sales, marketing, customer service, and technical support.

•

•

•

•

•

•

•

Key IS20G Components

HADLEY

TommyCar Auto Group Announces 2014 Scholarship Winners

The Tom Cosenzi Scholarship announced the three students that each received the $1,000 scholarship for demonstrating ex-cellence in the classroom and in the community.

The Tom Cosenzi Scholarship was established to honor the memory of Thomas E. Cosenzi. When Thomas E. Cosenzi passed away in 2009, it was not only ownership of the Tommy-Car Auto Group that passed to his children Carla and Thomas M., but also his legacy of giving back to the community. That legacy was evident when the three recipients of a 2014 Tom Cosenzi Scholarship were awarded their checks for $1,000. The program has expanded to Hopkins Academy in Hadley, Shepherd Hill Regional High School in Dudley, Greenfield High School, and Northampton High School.

“The combination of academic achievement and community

leadership exhib-ited by these stu-dents underscores the core values of this scholarship,” said Carla Cosenzi.

This year’s scholarship win-ners include Nich-olas Bernard of South Hadley, a senior at Hopkins Academy who will be attending Col-lege of Our Lady of the Elms in Chicopee and studying to be-come a Nurse Practitioner; Natalia Kurpiel of Dudley, who will attend College of the Holy Cross in the fall, studying to become a Physician; and Manisha Malik of Greenfield, who, following graduation from Greenfield High School, will pursue her dream of becoming a Nurse Practitioner at Mount Holyoke College.

from Around the HornNEWS


18


from Around the HornNEWS 19MSADA

PLYMOUTH

AutoFair President Presented Honorary Degree Hood

Last month, New England College presented Andy Crews, President and CEO of AutoFair, with a framed hood. The hood represents the Honorary Degree of Humane Letters that was awarded to Crews in January during New England College’s annual Founders Day celebration.

Founders Day is a campus tradition that gathers stu-dents, parents, staff, and faculty to honor the College’s founding members and acknowledge its’ achievements.

“Andy is an entrepreneur, a leader, a goal-oriented, make-it-happen type guy,” said Jason LaCroix, General Manager of AutoFair Honda. “Since joining the Auto-Fair Team in 2006, Andy has been the driving force in growing the business from three franchise dealerships to seven, and employing over 550 people in New Hamp-shire and Massachusetts. Andy is a great inspiration to all of us. He is a self-made man starting in the business as a technician and working through all the

ranks. He has become a great leader in the community working with local and statewide charities, community leaders and sup-porting everyone around him.”

AutoFair also owns and operates AutoFair Nissan in Tewks-bury and several stores in New Hampshire.

from Around the Horn20 NEWS


MENDON

Imperial City Featured in Providence Journal

A recent article in The Providence Journal describes Imperial City’s efforts to become a destination in itself.

The 52-acre campus incorporates three auto dealer-ships, a 1950s diner, a double-decker bus that serves ice cream, and an outdoor barbecue, to say nothing of the car rental agency, car wash and detailing, barber-shop, salon, and jewelry store.

The dealerships — Chevrolet, Chrysler-Jeep-Dodge and Ford — are housed in buildings that echo the de-sign of horse barns.

General manager Michael Penner told the Journal the three dealerships had a combined inventory of about 1,000 vehicles with an additional 700 used ve-hicles for sale. He said the work force numbers around 400, with plans to expand, he said.

Meanwhile, inside, above, and around the show-room floors are hundreds of museum-quality artifacts. The Chevrolet dealership contains sports items, in-cluding life-size figures from all fields.

The Chrysler-Jeep-Dodge dealership is packed with automobilia, and the Ford dealership is full of rock-’n’-roll memorabilia, including a life-size diorama of the Beatles in front of the Sergeant Pepper’s Lonely Hearts Club Band album cover — featuring images of both Imperial president Kevin Meehan and Penner in the crowd of faces.

“We’re definitely trying to build here a dealership where you can engage in a number of activities,” Meehan told the Journal. “There’s nothing like it in the Northeast that I’m aware of.” In addition to fam-ily outings, he said he imagined potential customers dropping by in the evening and getting hungry.

“I wanted to make it fun, interesting, to create buzz,” he said. Indeed, last year Ford awarded the dealership its prestigious President’s Award for both customer satisfaction and service to the local community.

GARDNER

Salvadore Auto Featured in Boston Globe

A Boston Globe business feature focused on eco-nomic recovery in Gardner, and featured uplifting news from Salvadore Auto.

Owner Steve Salvadore said his dealership is on track to match its prerecession sales of about 1,500 cars per year.

21MSADA


He told the Globe he’s hired six employees so far this year to keep up with the increased business. “We see Gardner as a city that’s going to grow, and we’re going to work with that,” said Salvadore.

The article went on to explain that Gardner still faces big chal-lenges. The median household income, $49,000, is more than 25 percent below the state median of $67,000. Nearly one in five families with children live in poverty, compared about 1 in 8 statewide. In a knowledge-based economy, only about 18 per-cent of adults hold at least a bachelor’s degree, compared to 39 percent statewide.

HOLYOKE

Marcotte Ford Launches Campaign

Marcotte Ford has announced the launch of their new, custom-er-focused campaign, “We’ve Got Your Back.”

Whether purchasing, financing, or servicing a new or pre-owned Ford, dedicated and knowledgeable staff are standing by to assist customers. Marcotte Ford is committed to their custom-ers for life, ready and able to help people through any stage of car-ownership.

This Massachusetts family-owned and operated business takes pride in knowing that the best products are being offered. Their sales staff stays constantly up to date on the latest trends in auto-motive technology and experts on Hybrid and Electric vehicles are always available. The sales department is a no-pressure team that is dedicated to finding buyers the right vehicle for the right price. Massachusetts residents know that Marcotte Ford’s cus-tomers’ satisfaction is top priority.

General Manager Mike Filomeno said, “Here at Marcotte Ford, we strive to make your experience a good one – for the life of your vehicle. From purchase to repair to trade-in, we’ve got your back.”

There are multiple auto service options to fit car-owners’ needs. The Quick Lane department is a fast and efficient way to have routine maintenance completed. If a customer needs more flexible service hours they can visit the Service Department, which is open from 6:00am until midnight, Monday through Thursday. They even offer their customers a complimentary breakfast on Tuesdays and Saturdays while waiting for their ve-hicle to be serviced at their very own LugNutz Cafe. Renting a vehicle has also never been easier. With more than 120 rental cars available, the hassle of being without one’s vehicle during longer repairs is alleviated.

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15MSADANADA Update by Don Sudbay

This month our chairman, Forrest McConnell, addresses us concerning NADA’S progress in helping member deal-ers continue to provide affordable financing for our custom-ers. Clearly, any move toward flat compensation will make vehicle financing more costly to the public. In September NADA will make its annual pilgrimage to Capitol Hill. Your MSADA leadership will be attending, and we will visit our representatives in Congress to gain support for H.R. 4811, “The Bureau Guidance Transparency Act.” Be assured NADA is committed to protecting dealers and our customers from the misguided actions of the CFPB.

A Special Note from NADA Chairman Forrest McConnell:

“Franchised new-car dealers do much more than sell cars. We provide service for the long term. And we offer our cus-tomers competitive financing options.

“Dealer-assisted financing provides great value and com-petitive advantages, which saves our customers billions of dollars each year. And the proof is in the numbers. Despite the fact that dealer-assisted financing is always optional, a large majority of consumers still choose to finance their ve-hicles through dealers.

“But in March 2013—without prior notice or public com-ment—the Consumer Financial Protection Bureau (CFPB) issued guidance that could eliminate the flexibility that dealers have to negotiate lower auto financing rates for the benefit of consumers. Instead, the CFPB is pressuring auto finance sources to compensate dealers with a flat fee, which would weaken the ability of car buyers to secure discounted financing.

“Most troubling is that the CFPB has even admitted that it has not studied how this change would impact consumers.

“Members of Congress have taken notice. Rep. Marlin Stutzman (R-Indiana) introduced H.R. 4811, ‘The Bureau Guidance Transparency Act,’ which passed the House Fi-nancial Services Committee on a bipartisan vote on June 11, thanks to strong grassroots support from NADA and other

industry trade groups.“The bill would require the CFPB to be more transpar-

ent by requiring prior public notice for other future guid-ance. The bill would also rescind the CFPB’s auto finance guidance issued in March 2013 that threatens to eliminate a dealer’s ability to offer interest rate discounts in the show-room.

“To help address the fair credit risk to consumers, dealers, and finance sources, NADA released its Fair Credit Compli-ance Policy & Program in January. This optional program provides a dealership which adopts it with a viable means of managing its fair credit risk, while still allowing for pricing flexibility.

“Chris Stinebert, the president and CEO of the American Financial Services Association, issued a statement on July 9 that strongly supported NADA’s program, calling it ‘a le-gitimate tool that helps provide lenders with evidence that there are legitimate non-discriminatory reasons for pricing differences.’

“NADA is working to protect dealers—and our custom-ers—by making sure auto loans remain affordable and ac-cessible while still addressing fair credit risks. For more information, visit www.nada.org/cfpb.”

Invite Your Member of Congress for a Dealer-ship Visit during the Upcoming Recess

Members of Congress will be in recess and return to their home districts in August through the Labor Day weekend. This is the perfect time to invite them to take a dealership tour, meet with employees, and discuss legislative priori-ties. Elections will be held in November and the balance of power in the U.S. Senate is at stake. Now is a critical time to engage.

Advocacy is one of the most important aspects of a trade association. Despite the growth of social media, face-to-face meetings at the dealership with members of Congress are even more important today and can yield enormous benefits for dealers and NADA. Congress hears from many competing industry voices every day, so it’s vital that the dealer’s voice is heard.

NADA’s legislative office will assist dealers in setting up the visits as well as provide issue updates and talking points to use and share. The visits can be arranged around your busy schedules and typically last about an hour. For more information or to schedule a visit, contact Patrick Calpin, NADA Director of Grassroots Advocacy, at (800) 563-1556 or [email protected].

Auto Credit Must Remain Affordable and Accessible for Car Buyers

Don SuDbay, PreSiDent of SuDbay automotive GrouP, rePreSentS mSaDa memberS on the naDa boarD of DirectorS. he welcomeS your queStionS anD concernS ([email protected]).

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MSADA Accounting

Dale Willey Supports Community through the NADA Charitable Foundation

As Ambassadors of the National Automobile Dealers Char-itable Foundation, Dale Willey and his wife, Jan, provide fi-nancial support to local organizations in their hometown.

“Grants through the Ambassador program are earmarked for organizations that support healthcare, emergency ser-vices, and education,” said Willey, former president of Dale Willey Automotive in Lawrence, Kansas, and former chairman of the National Automobile Dealers Association. “Supporting these types of organizations is truly critical for growth in all communities.”

Willey, who is an NADA Foundation trustee, has provid-ed grants to the Lawrence Memorial Hospital Endowment Association, Lawrence Schools Foundation, Lawrence Pub-lic Library Foundation, and the University of Kansas Busi-ness School.

“The Ambassadors program is one of the most effective ways of supporting local organizations forever,” Willey added. “One gift of $10,000 does so much.”

With a tax-deductible contribution of $10,000, an Am-bassador can provide a $1,500 grant every three years in perpetuity. Donors with three or more gifts of $10,000 are designated Ambassadors of Distinction and can provide a $2,000 grant every year in perpetuity.

Willey has also named five other family members as Am-bassadors. Since 2001, they have provided 14 grants total-ing $20,000 through seven Ambassadorships.

NADA Academy Grads and 20 Group Members Honored by Automotive News

Seventeen out of 40 retail automotive leaders recognized this week as rising stars in Automotive News’ special 40 Under 40 list are NADA Academy graduates and/or current NADA 20 Group members. The list includes the next gen-eration of leaders in the auto-retailing industry.

“The recognition by Automotive News is a tribute to all these high achievers. We’re especially proud of the 17 ris-

ing stars who have advanced their dealership careers after enrolling in the NADA Academy and/or becoming NADA 20 Group members,” said John Lyboldt, NADA vice presi-dent of dealership operations. “We expect to see many more future dealers and managers become industry leaders after

participating in NADA’s programs.”NADA’s Dealership Operations division provides indus-

try-leading education and consultative services to NADA members. The NADA Academy and NADA 20 Group are programs managed by the division to help improve the op-erations and profitably of dealerships.

The NADA Academy helps prepare dealership profession-als for management roles through the combination of hands-on practical application in each area of the dealership and six intensive weeklong instructor-led classroom sessions. NADA 20 Groups, comprised of consultant-led groups of non-com-peting peers, empower dealers and managers with best prac-tices, new ideas and financial comparisons to improve profit-ability and achieve best of class performance.

To learn more about NADA Academy programs, visit www.nada.org/academy or email [email protected]. To learn more about NADA 20 Group, visit www.nada20g-roup.org or email [email protected].

San Francisco to Host the 2015 American Truck Dealers Convention

San Francisco will host the 2015 American Truck Dealers (ATD) Convention & Expo from Thursday, January 22, to Sunday, January 25.

The four-day event kicks off on January 22 with the ATD Super Workshop, “The Asking Formula.” The two-hour in-teractive session will teach attendees six powerful steps on how to achieve professional and personal goals by asking the right questions and being persuasive.

ATD Chairman Eric Jorgensen, president and CEO of JX Enterprises Inc. in Hartland, Wisconsin, will deliver key-note remarks during the general session on Friday, January 23. New for 2015 is a networking general session on Satur-day, January 24.

The ATD convention runs concurrently with the National Automobile Dealers Association Convention & Expo at the Moscone Center. ATD members are encouraged to attend any of the NADA workshops and general/speaker sessions.

Keynote speakers at the NADA convention include for-mer Florida Governor Jeb Bush, NADA Chairman Forrest McConnell, Jay Leno, NADA Vice Chairman Bill Fox, and inspirational speaker Beck Weathers.

Truck dealers will also have the opportunity to meet face-to-face with their manufacturer executives at eleven make meetings and shop the expo floor in the ATD Zone. The ATD headquarters hotel is the Marriott Marquis.

Registration opens Monday, July 21. Attendees who reg-ister by October 6 will receive the early bird rate, which is a $150 discount off the onsite registration rate. For more information or to register, visit www.atdconvention.org.

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26 23


MSADA

We expect to see many more future dealers and managers become

industry leaders after participating in NADA’s programs.”

hicle sales in the U.S. at 45.7 percent, which was a decline from a share of 46.2 percent a year ago. The corresponding share held by companies based in the Asia/Pacific region was 45.6 percent and that for the Europe-based companies was 8.6 percent. All

company categories by geographic bases – North America, Asia/Pacific and Europe – experienced growth in light-vehicle sales in June 2014 YTD figures from last June with the Asia/Pacific region in the lead with 5.8 percent growth.

From the Detroit 3, Fiat Chrysler experienced the most growth

24


overall There were 1.4 million light-vehicle sales in June 2014. This

sales figure was down 11.7 percent from May 2014, and it was up 1.1 percent from June 2013.

June 2014 YTD light-vehicle sales amounted to 8.1 million, up 4.2 percent from a year ago. The June 2014 Seasonally Adjusted Annual Rate (SAAR) for light-vehicle sales was 16.9 million. The last time the SAAR reached 16.9 million was August 2005. June 2014 was the third month this year to record a SAAR value that exceeded 16.0 million.

In June 2014 YTD figures, car sales held a market share of 48.0 percent with sales down 10 basis points from a year ago, while corresponding figures for light trucks put the light-truck share at 52.0 percent with sales up 8.4 percent from a year ago.

For Q2 2014, there were 4.4 million light-vehicle sales, up 6.8 percent from Q2 2013. For Q2 2014, car sales, were up 3.9 percent from Q2 2013, while light-truck sales were up 9.6 percent from Q2 2013. See Figure 1.

comPanieS/branDSCompanies with a geographic base in North Amer-

ica (Detroit 3 and Tesla) held the largest market share of light-vehicle sales for June 2014: 46.4 percent of the market. This was followed by companies based in the Asia/Pacific region at 44.7 percent and then com-panies based in Europe at 8.9 percent.

In June 2014 YTD terms, companies with a base in North America also held the largest share of light-ve-

Review of New Light Vehicle Sales

NADA Market BeatProduced by NADA’s Industry Analysis Group • Angela Lisulo, Economist


25

Produced by NADA’s Industry Analysis Group • Angela Lisulo, Economist

MSADA

in June 2014 YTD sales from a year ago at 12.2 percent, followed by General Motors (2.5 percent); Ford experi-enced a contraction in sales over the same period at 2.1 percent.

From the group of Asia/Pacific-based companies, Isuzu experienced the most growth in June 2014 YTD sales from last June at 82.7 percent, followed by Mit-subishi at 30.2 percent.

From the group of Europe-based companies, Audi experienced the most growth in June 2014 YTD sales from a year ago at 13.6 percent, followed by Jaguar Land Rover at 12.1 percent.

For Q2 2014, companies based in North America held the largest share of light-vehicle sales at 45.9 per-cent. The corresponding share held by companies based in the Asia/Pacific region was 45.5 percent, and for Eu-rope-based companies it was 8.5 percent. All company categories experienced growth in light-vehicle sales in Q2 2014 over Q2 2013, with the Asia/Pacific-based compa-nies in the lead with 9.1 percent growth. See Figures 2, 3 and 4.

SeGmentSThe cross utility vehicle

(CUV) segment held the largest share of June 2014 YTD sales at 26.5 percent; this was an in-crease from its corresponding share of 24.9 percent last year.

The CUV segment was fol-lowed by the middle car seg-ment (19.6 percent) and the small car segment (19.2 per-cent), respectively, in terms of YTD market share. However, both the middle car and small car segments have each continued to experience a decline in their respective YTD market shares since last year.

Within the CUV segment, the middle CUV sub-seg-ment was the largest sub-segment holding 64.2 percent of June 2014 YTD CUV sales. Of the models in this sub-segment, the Honda CR-V was the vehicle with the leading sales number of 154,692 units, which trans-lated into a share of 11.2 percent of middle CUV June 2014 YTD sales. This model was followed closely by the Ford Escape with sales of 152,890 units – a share of 11.0 percent of middle CUV June 2014 YTD sales.

Apart from the middle car segment, all the segments experienced growth in YTD sales since last year; the large car segment experienced the most growth at 13.8 percent.

NADA Market Beat26

For Q2 2014, the middle CUV sub-segment was the largest sub-segment of CUV sales with a share of 64.4 percent.

For the quarter, in the middle CUV sub-segment, the Honda CR-V led sales with 87,044 units sold, which was 11.9 percent of the sub-segment. This was followed closely by the Ford Escape with sales of 81,585 units – a share of 11.2 percent of the sub-seg-ment. See Figures 5 and 6.

Power SourceAs a power source, gasoline held a market share of 93.5 percent

of June 2014 YTD light-vehicle sales, which marked no major change from its corresponding share a year ago.

The market share held by the diesel category rose to 2.9 percent, in YTD terms, from its value of 2.6 percent last year. The market shares held by electrics and plug-in hybrids each grew compared to last year in YTD terms, while those for hybrids and vehicles powered by natural gas declined over the same period.

For the alternative power category, in June 2014, the following light vehicles were sold: 4,862 electrics, no units powered by fuel cell technology, 41,079 hybrids, 94 units powered by natural gas and 6,481 plug-in hybrids amounting to 52,516 light-vehicle sales.

For the alternative power category, in Q2 2014, the following light vehicles were sold: 14,408 electrics, 1 vehicle powered by fuel cell technology, 133,831 hybrids, 287 units powered by natu-ral gas and 17,850 plug-in hybrids amounting to 166,377 light-ve-hicle sales. The Q2 2014 sales for the alternative power category were up 3.5 percent from Q2 2013. See Figure 7.

moDelSThere were three pickup trucks and two cars occupying the

highest five ranks of the best-selling light vehicles for June 2014 YTD. The two leading cars were models from companies based in the Asia/Pacific region: Toyota Camry and Honda Accord. The three leading pickup trucks were models from the Detroit 3 com-panies: Ford F-Series, Chevrolet Silverado, and Ram pickup.

From the list of the 15 best-selling light vehicles for June 2014 YTD, eight out of 15 models were from the Detroit 3 companies while the rest were from companies based in the Asia/Pacific re-gion.

The June 2014 YTD list is the first list this year to not include any Hyundai models and to feature more than three Ford models. This year, from January to May, inclusive, the distribution of mod-els amongst companies on each of the 15 best-selling YTD lists has been consistent: General Motors, Ford, Toyota, and Honda each made a contribution of three models, while one model each was contributed by Fiat Chrysler,

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july 2014 msada auto dealer

Documents

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