Massachusetts Auto Dealer Magazine April 2013

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The official publication of MSADA, Inc.

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  • April 2013 Vol. 26 No. 4

    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

    Above the Hype

    Auto Tech Students Compete in NYC

  • Call Jean Fabrizio (617) 451-1051, ext. 229, or email jfabrizio@msada.org for your scholarship application, eligibility and details.

    May 17, 2013

  • Ta b l e o f C o n T e n T s

    4 From the President: Hardly shocking 6 the roUndUP: The Governor Proposes, The legislature Disposes

    9 trUCK Corner: a Tale of Two Conventions10 AUto oUtLooK 12 LeGAL: be Careful What You ask for13 LeGAL: labor and employment law forecast

    14 Cover Story: beyond the Hype

    17 soUnd oFF: Wave of the future

    18 neWs From Around the horn

    23 nAdA UPdAte: auto forum Update25 eConomiC UPdAte: average auto loan amounts are Up

    www.msada.org Massachusetts auto Dealer APRIL 2013

    The official publication of the Massachusetts State Automobile Dealers Association, Incs Ta f f D i r e C T o r Y

    Robert OKoniewski, Esq.executive Vice Presidentrokoniewski@msada.org

    Jean Fabrizio Director of administration

    jfabrizio@msada.orgPaul Fellows

    administrative assistant/ Membership Coordinator

    pfellows@msada.org

    a U T o D e a l e r M a G a z i n e

    Robert OKoniewski, Esq.executive editor

    Tom Nasheditorial Coordinator

    nashtc@gmail.com

    subscriptions provided annually to Massachusetts member dealers. all

    address changes should be submitted to: MsaDa by e-mail: pfellows@msada.org

    Postmaster: send address change to:

    one McKinley square, sixth floorboston, Ma 02109

    aDVerTisinG raTesinquire for multiple-insertion discounts or

    full Media Kit. e-mail tnash@msada.org

    autoD E A L E R

    M A s s A c h u s E t t s

    Quarter Page: $450Half Page: $700

    full Page: $1,400

    back Cover: $1,800inside front: $1,700inside back: $1,600

    aD DireCTorY

    blumshapiro, 20 boston Herald, 24

    lynnway auto auction, 18 nancy Phillips associates inc, 20

    oConnor & Drew, P.C., 27 southern auto auction, 21

    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.

  • from the President4

    APRIL 2013 Massachusetts auto Dealer www.msada.org

    by Scott Dube, MSADA President

    A

    Hardly Shocking, Actually I Am Shocked!The Tesla battle gets personal

    s Ive said recently, Massachusetts is the canary in the coal mine for many initiatives that have a direct negative impact on auto dealers throughout the United States. And while Tesla Mo-tor Companys fight to roll back nearly 100 years of franchise law started here and a couple of other states, it now has spread to Texas.

    Their push in Texas involves the legislature. That means get-ting votes. Tesla Motor Company CEO Elon Musk sent the fol-lowing note to his employees encouraging them to make calls to legislators. It read, in part:

    It is crazy that Texas, which prides itself on individual free-dom, has the most restrictive laws in the country protecting the big auto dealer groups from competition. If the people of Texas knew how bad this was, they would be up in arms, because they are getting ripped off by the auto dealers as a result (not saying they are all bad there a few good ones, but many are extremely heinous). We just need to get the word out before these guys are able to pull a fast one on us. For everyone in Texas that ever got screwed by an auto dealer, this is your opportunity for payback.

    We shouldnt be surprised by this bile. If anything, its great that hes put such laughably stupid thinking on paper. As our own case continues its appeal process, hopefully it should be more clear to people that we are on the right side of history here. What we have is a CEO (Elon Musk) who simply doesnt want to play by the same rules as everyone else, and will cast aspersions on other businessmen and women if it appears that things arent going to go his way. He makes it dirty and per-sonal; clearly he knows hes losing in the court of public opin-ion. More importantly he understands the concept that if a lie is repeated often enough people will begin to believe it.

    Contrast this with Hyundai President John Krafciks com-ments about the franchise system made recently at NADA and in print:

    You provide jobs, provide a stable tax base and contribute

    to philanthropic causes in your local communities across the country. Yet it seems like every day someone is bashing the U.S. automotive retail system as being out of touch or inef-ficient. From our perspective at Hyundai, the franchised dealer system in the U.S. works because its the concentrated distil-lation of another system that we know works. One thats been proven over the last couple of centuries -- the American free enterprise system.

    Clearly the pressure from auto dealers needs to stay firm. Our voice needs to be able to always counter this kind of rhetoric, and no one does as good of a job as dealers defending the es-tablished law as the only way to ensure the market works and is safe for consumers.

    Remember, auto dealers in Massachusetts make up about 20% of the retail economy and we provide over 20,000 very good paying jobs. Most of us are strong supporters of community ac-tivities in ways Tesla never will be. It floors me that the Town of Natick would swoon the way they have over Tesla. While the dealers of Natick put blood sweat and tears into Natick, the town takes all of that for granted, even demeans it by unlawfully grant-ing Tesla a license when its clear they dont qualify for one. It begs the question do they dislike dealers (the economic engine of the state), are they playing games with peoples livelihoods, or do they just not understand what their actions portend? All of us have a part to play in making sure wanna-be bullies such as Musk arent able to eliminate the very free market principles hes claiming to follow. Picture a world of dealers trying to compete with factory run stores. Think of the possible new entrants into the market from India to China -- there are smart people who would like to enter our market. Will they be forced to play by the rules or will government officials decide that they like the idea of scrapping the franchise system and allow not so clever ploys to be used to circumvent the franchise system?

    t

    MSADA

  • 5www.msada.org Massachusetts auto Dealer APRIL 2013

    Name Contact Telephone

    ADESA Boston Chris Carli (508) 270-5403

    Admirals Bank John Saviano, Jr. (401) 248-7229

    ADP Dealer Services Maria Trezza (973) 974-4020

    Albin, Randall & Bennett Barton D. Haag (207) 772-1981

    American Fidelity Assurance Co. Tom Trudell (413) 885-5477

    AutoRaptor (RAL) Howard L. Leavitt (401) 421-6533

    Bank of America Maryanne Recupero (800) 991-1770

    Bellavia Blatt Andron & Crossett, PC Leonard A. Bellavia, Esq (516) 873-3000

    Blum Shapiro John D. Spatcher (860) 561-4000

    Boston Globe Mary Kelly (617) 929-8373

    Burns & Levinson LLP Paul Marshall Harris (617) 345-3854

    Construction Management & Builders, Inc. Kate Sullivan (781) 246-9400

    Curran EasyCare Inc. Mike Douglas (770) 246-9724

    CVR Scott Herbers (800) 668-2332

    DealerTrack Ernest Lattimer (516) 547-2242

    Downey & Company James Downey (781) 849-3100

    Ethos Group, Inc. Drew Spring (617) 694-9761

    F & I Resources Jason Bayko (508) 624-4344

    Federated Insurance Chris Welch (724) 766-6666

    First Citizens Federal Credit Union Joe Ender (508) 979-4728

    Fisher & Phillips LLP John Donovan (404) 240-4236

    Grant Thornton LLP Alan Oslomowski (508) 926-2200

    Greenwood Distributors James Viara (508) 336-5040

    Huntington National Bank Jennifer M. Weekes (781) 329-0413

    Jewett Construction Alison Jewett (603) 895-2412

    Key Bank James Q. Moretti (781) 558-5132

    Leader Auto Resources, Inc. John Ackermann (518) 857-8853

    Lynnway Auto Auction Bob Brest (781) 596-8500

    M & T Bank John Federici (508) 699-3576

    MetroMedia Energy Timothy Teevens (800) 828-9427

    Micorp LLC Ryan Kim (508) 832-9816

    Mid-State Insurance Agency James Pietro (508) 791-5566

    Mintz Levin Kurt Steinkrauss (617) 542-6000

    Murtha Cullina Thomas Vangel (617) 457-4000

    Nancy Phillips Associates, Inc. Nancy Phillips (603) 658-0004

    OConnor & Drew, P.C. Kevin Carnes (617) 471-1120

    Performance Management Group, Inc. Mark Puccio (508) 393-1400

    Ray-Jurgen Richard Thibadeau (860) 585-0111

    R.L. Tennant Insurance Agency, Inc. Walter F. Tennant (617) 969-1300

    Resource Management Group J. Gregory Hoffman (800) 761-4546

    Reynolds & Reynolds Marc Appel (413) 537-1336

    Robinson Donovan Madden & Barry, P.C. James F. Martin, Esq. (413) 732-2301

    Samet & Company John J. Czyzewski (617) 731-1222

    Schlossberg, LLC Michael ONeil, Esq. (781) 848-5028

    Sentry Insurance Company Eric Stiles (715) 346-7096

    Shepherd & Goldstein Ron Masiello (508) 757-3311

    Silverman Advisors, PC Scott Silverman (781) 591-2886

    Southern Auto Auction Tom Munson (860) 292-7500

    Sovereign Bank Richard Anderson (401) 432-0749

    Target Dealer Services