MADA Annual MeetingMinneapolis

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Title BasicsMinneapolis

Certified TitleMinneapolis

On Tuesday, Nov. 4, Minnesotans went to the polls and managed to buck national trends. While many Democratic governors and U.S. Senators were voted out of office around the country, both DFL Governor Mark Dayton and Senator Al Franken were re-elected with significant margins over their opponents. With a majority of Minnesotans believing the state is on the right track and with low unemployment rates, voters here did not feel the need “to throw the bums out.” Instead, they gave Dayton and Franken their biggest ever electoral victories over Jeff Johnson and Mike McFadden, respectively. Beyond a positive environment for the incumbents, the GOP candidates were challenged by a lack of resources from the party and recognition by the public. Furthermore, outside groups spent a significant amount of money to define Johnson and McFadden in a negative light, and those characterizations were never successfully refuted.

NewsNovember 2014

insideC&S Council Member Renewal

Fun Auction Items Planned

Lame Duck Watch

FAQ on ‘‘As Is”

New Auto Show Staff

Scott Lambert, Executive Vice President • 200 Lothenbach Ave. • West St. Paul, MN 55118 • (651) 291-2400 • 1-800-652-9029 • FAX (651) 291-2894

Election Results... continued on page 3

visit www.mada.org

for details, registration and a complete list of Upcoming Events and

Training

Legislative News

Election 2014 Results The Status Quo Statewide; Leadership Change at the Legislature

upcoming events

17dec

13jan

5dec

13jan

November 2014 / Page 2

The Minnesota Automobile Dealers Association is a non-profit trade association dedicated to the progress of the retail auto

industry in Minnesota.President Morrie Wagener, Morrie’s Automotive Group, Minnetonka President-Elect Greg House, House Chevrolet, Stewartville Treasurer Mike Saxon, Inver Grove Ford Lincoln, Inver Grove Heights Secretary Rick Jensen, Jensen Motors, Inc., New Ulm Executive Vice President Scott Lambert, MADA

200 Lothenbach Avenue • West St. Paul, MN 55118Metro: 651-291-2400 • Toll Free: 800-652-9029

FAX: 651-291-2894 • Web site: http://www.mada.org

In this post-election environment, as the US Senate prepares to flip control to the GOP and the House Republicans look for more offices, the business of governing goes on. A November-December “Lame Duck” session will allow Congress to finish its year-end business. Lame Duck sessions are always filled with some drama and even awkwardness as legislators who lost their elections--but are technically still in office until the end of the year--are allowed to debate, vote and shape bills. In this environment, MADA is closely pursuing two important pieces of legislation:

Withdrawal Liability ReformMADA is leading a national coalition of dealers with distressed union pension plans and heavy withdrawal liability obligations to seek relief from this problem. A bipartisan coalition of Senators and Congressman, with leadership from the Minnesota delegation, is trying to attach our proposal to legislation before year’s end.

Consumer Financial Protection BureauMADA is following NADA’s lead to secure passage of HR 5403, a bill to revoke the guidance issued by the CFPB earlier this year on automobile financing. The bill requires the agency to work through a traditional rulemaking process that would make their data transparent. NADA has over 120 cosponsors; MADA is doing its share by petitioning our delegation to sign onto the bill.

NADA News

Lame Duck WatchC&S Council News

Membership Opportunities

It was just two years ago that MADA launched the Collision & Service Council to help promote and support your repair and body shops. But as many of you know, this entity has become much bigger and more significant than ever imagined.

Today, the Council is pleased to have been awarded a $25,000 grant to pilot an automotive summer camp for youth to address the need for a future workforce. Tackling insurer-mandated parts procurement programs is part of an effort to overcome insurance steering. Other key priorities are working with automotive schools to enhance programs and expanding the member library on regulatory, compliance and labor issues. Next up, the Council will develop an interactive booth at the Twin Cities Auto Show to promote dealership repair work.

With continued effort, the Council’s initiatives have quickly established a presence in the

Council News... continued on page 7

GMADA News

New Auto Show StaffMary Velline joined the team this month as Co-Director of the 2015 Twin Cities Auto Show with the Show’s long-time director, Sandy Brom.

visit us online at www.mada.org

November 2014 / Page 3

MADA News

2015 Dues BillingThe 2015 dues invoices are in the mail. MADA is committed to supporting its members with expertise on the most current developments in the legislative, regulatory and legal spheres. Your dues support is necessary for us to carry out these responsibilities. We appreciate the trust you place in MADA. Please call on us if you have any questions or concerns.

That being said, the victories at the top of the ticket for Democrats did not translate into wins further down the ballot. Democrats lost 11 seats and control of the Minnesota House of Representatives. The GOP only needed to pick up seven seats to change the majority, and succeeded by knocking out ten incumbents in greater Minnesota and one in the metro. Republicans were successful at branding rural Democrats as being too supportive of the Twin Cities at the expense of their districts. In addition, passage of legislation to legalize gay marriage put several representatives in conflict with their constituents, who voted at the ballot box to constitutionally ban gay marriage in 2012. And lastly, Minnesotans are renowned ticket-splitters; we often view “checks and balances” to mean having different parties control different parts of government. Over the last 55 years, Minnesota state government has been divided 75% of the time.

No Upsets in Congressional RacesThis year’s congressional contests featured two very high-profile races in Minnesota’s Seventh and Eighth Congressional Districts. However, both incumbents, Congressmen Rick Nolan (DFL-8) and Colin Peterson (DFL-7), will be returning to Washington in January. Nolan faced a significant challenge from Stewart Mills, who many pundits believed had the charisma and following to knock off the representative. In the final tally, voters returned Nolan to office by a narrow margin of 1.39%. Peterson, who will be serving his 13th term, won by over 8.5%, but state legislator Torrey Westrom gave him his toughest race, as Peterson historically has won with by margins of 20-40%!The only new face in the delegation will be that of Tom Emmer (R-6), who will be taking over the open seat held by Michele Bachmann.

Election Results... continued from cover

Since the 2010 ruling in Citizens United - the landmark case where the Supreme Court ruled that the government could not prohibit independent political expenditures by nonprofit and for-profit corporations, labor unions and other associations – the amount of spending by outside groups in campaigns has increased dramatically.In 2012, when Democrats swept control of the Minnesota Legislature, left-leaning organizations far outspent business groups. In 2014, MADA and other members of the business community

wanted to ensure that did not happen again. We worked through our independent expenditure group, Driving MN, in support of business-friendly candidates to flip the MN House of Representatives and regain a balance of ideas in the policymaking process. Our efforts to reach voters on behalf of candidates in three legislative districts – 11B, 12A, and 27A – helped to convince voters that a change was needed. All three candidates were victorious.

Outside Spending Makes an Impact in Legislative RacesDriving MN Supports Three Winning Candidates!

November 2014 / Page 4

In conjunction with our 2014 Annual Meeting on Friday, Dec. 5, MADA will hold its inaugural “Dealers Deliver Silent Auction” to benefit the philanthropic work of the MADA Foundation. The Foundation is a non-profit charity that that supports resources for automotive education programs for Minnesota high school students. Don’t miss the opportunity to bid on lunch with past presidents of MADA, Timberwolves basketball tickets, a flat screen television - and many more awesome items. As education dollars continue to shrink, the MADA Foundation does incredible work to continue investment in needed auto repair and shop programs that could vanish without our financial support. We hope you will be at the Annual Meeting and support ways “Dealers Deliver” to our local communities.

MADA Foundation News

Don’t Miss ‘‘Lunch with the Presidents” and More 2014 Annual Meeting to Feature Inaugural “Dealers Deliver” Silent Auction

DEAC News

2014 DEAC Goal Surpassed!Thank you to the 21 dealers listed below who helped us surpass our 2014 Dealers Election Action Committee (DEAC) fundraising goal by over 15%! The $20,800 we raised was used this election cycle to support pro-dealer, pro-business Congressional candidates on a bipartisan basis. We appreciate the support of our members in helping us to ensure that the interests of franchised dealers are represented in Washington.

Steve Bennett ................. Lexus of Wayzata, WayzataSteve Bloomer ................ Village Automotive Group, WayzataTony Brown ..................... Burnsville Toyota Scion, Inc., BurnsvilleDavid Buerkle ................. Buerkle Acura, Brooklyn ParkChuck Ellingson .............. O.C. Ellingson, Inc., CaledoniaJulie Feldmann ............... Feldmann Imports, Inc., BloomingtonDavid Golinvaux ............. Roseville Chrysler Jeep Dodge Ram, RosevilleThane Hawkins ............... Thane Hawkins Polar Chevrolet, Inc., White Bear LakeBruce Kittilstved ............. Coon Rapids Chrysler Dodge Jeep RAM, Coon RapidsPeter Kolar ...................... Kolar Toyota Scion, DuluthChester Lockwood ......... Lockwood Motors, Inc., MarshallRobert Lockwood ........... Lockwood Motors, Inc., MarshallJeff Lupient ..................... Lupient Automotive Group, Golden ValleyThomas Miller ................. Miller Auto Plaza, St. CloudBruce Rinkel ................... Merit Chevrolet, MaplewoodDick Sjoquist ................... Burnsville Toyota Scion, Inc., BurnsvilleRandy Stevens ............... Adamson Motors, Inc., RochesterPaul Strong ..................... Waconia Dodge Chrysler Jeep, WaconiaMark Swelland ................ New Prague Auto GroupBernie Wagnild ............... Valley Automotive Group, Apple ValleyPaul Walser ..................... Walser Automotive Group

November 2014 / Page 5

Minnesota New Retail Car and Light Truck RegistrationsMost Recent Two Months YTD thru Sept* YTD Market Share (thru Sept)*

8/13 &9/13

8/14 &9/14*

%change 2013 2014

%change 2013 2014 change

Industry Total 36,008 37,590 4.4% 154,289 159,121 3.1%Cars 14,669 14,068 -4.1% 64,990 60,665 -6.7% 42.1 38.1 -4.0Light Trucks 21,339 23,522 10.2% 89,299 98,456 10.3% 57.9 61.9 4.0

Japanese Brands 12,964 13,571 4.7% 52,528 55,621 5.9% 34.0 35.0 1.0Toyota 5,101 4,881 -4.3% 20,171 19,921 -1.2% 13.1 12.5 -0.6Honda 3,453 3,530 2.2% 14,297 14,564 1.9% 9.3 9.2 -0.1Nissan 2,005 2,202 9.8% 8,094 8,647 6.8% 5.2 5.4 0.2Other 2,405 2,958 23.0% 9,966 12,489 25.3% 6.5 7.8 1.3

Domestic Brands 18,049 19,244 6.6% 79,968 83,435 4.3% 51.8 52.4 0.6General Motors 7,479 7,940 6.2% 33,523 33,828 0.9% 21.7 21.3 -0.4Ford 6,715 6,733 0.3% 29,297 29,045 -0.9% 19.0 18.3 -0.7Chrysler 3,822 4,555 19.2% 17,002 20,421 20.1% 11.0 12.8 1.8Other 33 16 -51.5% 146 141 -3.4% 0.1 0.1 0.0

European Brands 2,306 2,231 -3.3% 10,490 9,599 -8.5% 6.8 6.0 -0.8Volkswagen 1,208 1,059 -12.3% 5,174 4,658 -10.0% 3.4 2.9 -0.5BMW 486 568 16.9% 2,665 2,316 -13.1% 1.7 1.5 -0.2Mercedes 353 343 -2.8% 1,416 1,561 10.2% 0.9 1.0 0.1Other 259 261 0.8% 1,235 1,064 -13.8% 0.8 0.7 -0.1

Korean Brands 2,689 2,544 -5.4% 11,303 10,466 -7.4% 7.3 6.6 -0.7

35.3%

23.8% 23.0%

-6.9% -8.7% -9.3%

-1.1% -2.5% -4.9% -4.8%

2.2%

8.1%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14*

% c

hang

e vs

. yea

r ear

lier

Last month in period

10.8%

10.3%

2.3%

-6.7%

-15.0% -5.0% 5.0% 15.0% 25.0%

U.S.

State

Cars

Trucks

Minnesota Auto OutlookCovering the Minnesota automotive market Data thru September 2014

Released by:Minnesota AutomobileDealers Association

Data InformationAll data represents new vehicle retail registrations in Minnesota and excludes fleet and wholesale transactions. Please keep in mind that monthly registration figures can occasionally be subject to fluctuations, resulting in over or under estimation of actual results. This usually occurs due to processing delays by governmental agencies. For this reason, the year-to-date figures will typically be more reflective of market results. Data Source: Polk.

Percent Change in Three Month Moving Average of New Retail Registrations versus Same Period Year Earlier

The graph above provides a clear picture of the trending direction of the state market. It shows the year-over-year percent change in the three month moving average of new retail light vehicle registrations. The three month moving average is less erratic than monthly registrations, which can fluctuate due to such factors as the timing of manufacturer incentive programs, weather and title processing delays by governmental agencies.*Figures for September 2014 were estimated by Auto Outlook. Data Source: Polk.

Brands included above: Domestic Brands: GM (Buick, Cadillac, Chevrolet, and GMC), Ford (Ford and Lincoln), Chrysler (Chrysler, Dodge, and Jeep). Japanese: Toyota (Toyota, Lexus, and Scion), Honda (Honda and Acura), Nissan (Nissan and Infiniti), Other (Mazda, Mitsubishi, and Subaru). European: VW (Audi, Bentley, Porsche, and Volkswagen), BMW (BMW, Rolls Royce, and MINI), MB (Mercedes Benz and smart), Other (Aston Martin, Ferrari, Fiat, Jaguar, Land Rover, Lotus, Maserati, and Volvo). Korean: Hyundai and Kia.*Figures for September 2014 were estimated by Auto Outlook. Data Source: Polk.

Percent Change in State and U.S. New Retail Light Vehicle Markets

YTD ‘14 thru September* vs. YTD ‘13

The graph above compares the change in new retail car and light truck registrations in both the state and U.S. markets. *Figures for September 2014 were estimated by Auto Outlook.Data Source: Polk.

November 2014 / Page 6

MinnesotaNew Retail Light Vehicle Registrations

Registrations Market share

YTD '13thru Sep

YTD '14thru Sep* % change

YTD '13thru Sep

YTD '14thru Sep*

TOTAL 154,289 159,121 3%Acura 1,171 1,241 6% 0.8% 0.8%Audi 1,047 1,281 22% 0.7% 0.8%BMW 2,093 1,897 -9% 1.4% 1.2%Buick 3,074 3,017 -2% 2.0% 1.9%Cadillac 1,156 1,113 -4% 0.7% 0.7%Chevrolet 23,870 23,829 0% 15.5% 15.0%Chrysler 3,172 2,654 -16% 2.1% 1.7%Dodge 5,318 5,421 2% 3.4% 3.4%FIAT 255 226 -11% 0.2% 0.1%Ford 28,455 28,142 -1% 18.4% 17.7%GMC 5,423 5,951 10% 3.5% 3.7%Honda 13,126 13,312 1% 8.5% 8.4%Hyundai 5,253 4,878 -7% 3.4% 3.1%Infiniti 605 670 11% 0.4% 0.4%Jaguar 42 51 21% 0.0% 0.0%Jeep 3,995 6,726 68% 2.6% 4.2%Kia 6,050 5,600 -7% 3.9% 3.5%Land Rover 278 255 -8% 0.2% 0.2%Lexus 1,592 1,739 9% 1.0% 1.1%Lincoln 842 809 -4% 0.5% 0.5%Mazda 3,282 3,405 4% 2.1% 2.1%Mercedes 1,397 1,533 10% 0.9% 1.0%MINI 572 426 -26% 0.4% 0.3%Mitsubishi 744 1,614 117% 0.5% 1.0%Nissan 7,489 7,962 6% 4.9% 5.0%Other 216 153 -29% 0.1% 0.1%Porsche 158 202 28% 0.1% 0.1%Ram 4,517 5,631 25% 2.9% 3.5%Subaru 5,853 7,476 28% 3.8% 4.7%Tesla 71 67 -6% 0.0% 0.0%Toyota 18,579 18,185 -2% 12.0% 11.4%Volkswagen 3,969 3,179 -20% 2.6% 2.0%Volvo 625 476 -24% 0.4% 0.3%

0.0 5.0 10.0 15.0 20.0

Buick

Volkswagen

Mazda

Hyundai

Dodge

Kia

Ram

GMC

Jeep

Subaru

Nissan

Honda

Toyota

Chevrolet

Ford

2.0

2.6

2.1

3.4

3.4

3.9

2.9

3.5

2.6

3.8

4.9

8.5

12.0

15.5

18.4

1.9

2.0

2.1

3.1

3.4

3.5

3.5

3.7

4.2

4.7

5.0

8.4

11.4

15.0

17.7

Market Share

YTD '14 thru Sep*

YTD '13 thru Sep

Minnesota Auto Outlook Data thru September 2014

This report is sponsored by the Minnesota Automobile Dealers Association and produced by Auto Outlook (800-206-0102).

Auto Outlook, Inc. is not responsible for management decisions based on the con-tent of Minnesota Auto Outlook. Copyright Auto Outlook, October 2014.

Reproduction, including photocopying of this publication in whole or in part, is prohibited without the express permission of Auto Outlook, Inc. Any material quoted must be attributed to Minnesota Auto Outlook, pub-lished by Auto Outlook, Inc. on behalf of the Minnesota Automobile Deal-ers Association and must also include the statement: “Data Source: Polk.”

State Market Share for Top 15 Selling Brands YTD ‘14 thru September* vs. YTD ‘13

Top ten ranked brands in each percent change category are shaded green.

*Figures for September 2014 were estimated by Auto Outlook.

Source: Polk

*Figures for September 2014 were estimated by Auto Outlook.

Source: Polk.

November 2014 / Page 7

Member News Eden Prairie Nissan has now opened their doors at 12790 Plaza Drive after moving from Bloomington. Steve McDaniels is the Owner. Andy Hulcher is the General Manager.

The Tom Automotive group (Tom Wood, president) has moved its Mitsubishi store from Bloomington to Richfield and will be doing business as Richfield Bloomington Mitsubishi at 401 W. 77th Street. Brent Wade is the General Manager.

Endorsed Service & Vendors

MADA Services sells a wide variety of products directly to the dealers including business forms, clothing and promotional items. For a full review of options, contact your sales representative at 651-291-2400 or go to www.mada.org

Computerized Vehicle Registration CVR

F&I Products Protective

Dealership Marketing Visible Customer

Group Health Insurance Blue Cross Blue Shield of MN Delta Dental ReliaStar Life

Workers Compensation Ensure Agency

Dealer Bond Program Ensure Agency

Collections Springer Collections

Check Guarantee/Credit Card Processing FIS / Certegy

Disability Income Insurance & Section 125 Cafeteria Plans American Fidelity Assurance

OSHA, EPA & DOT Compliance/Training ComplyNet Corporation

Fleet Fueling Program SuperAmerica

Office Supplies S&TOfficeProducts

Uniforms and Linen Services AmeriPride Linen & Apparel Services

Hole-In-One Insurance Hole-In-One-USA

Pre-Paid Legal, Jim Gavin Identity Theft Shield & Pre-Paid Legal Services

FAQ

Q: We took an old 1-ton pickup on trade. The catalytic converter is gone. We have a local customer who is willing to buy the truck “As Is” without the PCA equipment. Is it OK for us to sell it to him?

A: No. Minnesota Statute §325E.0951 prohibits the sale of any vehicle – old or new, car or truck – by a seller who has “knowledge that any air pollution control system is either not in place or is not functional.”The statute is a criminal statute which provides for misdemeanor penalties. The law is designed to protect the public at large. Even if the buyer knows and agrees, the sale is still illegal.Your legal options with the vehicle:

1. Fix it2. Junk it3. Sell it out-of-state

The statute is here: http://bit.ly/112onBx

industry and membership is growing. The Council’s Advisory Council members lend focus from their perspective as service, collision and parts professionals.

Renewal letters will be sent to the current 170 members and non-members will be invited to join and keep the momentum going for dealership fixed operations. Annual dues are $125 for the first member and $25 for each subsequent member at the same rooftop. There is strength in numbers. Together, we can make great strides for our dealership fixed operations.

Thank you for your support!

Council News.. continued from pg. 2

Scott Lambert, Executive Vice President • 200 Lothenbach Ave. • West St. Paul, MN 55118 • (651) 291-2400 • 1-800-652-9029 • FAX (651) 291-2894

200 Lothenbach AvenueWest St. Paul, MN 55118

ADVOCACY • EXPERTISE • EDUCATION • COMMUNICATIONMADA NEWS • NOVEMBER 2014

“Presidents with strong nerves are decisive. They don’t balk at unpopular decisions. They are willing to make people angry. Bush had strong nerves. Clinton, who passed up a chance to eliminate Osama bin Laden, did

not. Obama is a people pleaser, a trait not normally associated with nerves of steel.”

--Fred Barnes

MADA Annual Meeting Keynote Speaker Fred Barnes on Friday, Dec. 5th. Mark your calendar now!

EducationFax Registration

For Information on these classes or to register online go to www.mada.org/training

FAX REGISTRATION TO: 651-291-2894Denise Anderson denise@mada.org

The Certified Title & Registration Program

Class Options Circle Preferred Date LocationSales Tax9:00 a.m. - 10:00 a.m. $129 January 13, 2015

Doubletree by Hilton - Park Place1500 Park Place BlvdMinneapolis, MN 55416

New to Fleet 10:30 a.m. - 12:30 p.m. $129 January 13, 2015

Minnesota Titles and Transfers1:00 p.m. – 3:00 p.m. $129 January 13, 2015

Name__________________________________________ Title____________________________

Name__________________________________________ Title____________________________

Dealership______________________________________ Customer ID #____________________

Address________________________________________________________________________

Phone______________________________ E-mail______________________________________

OSHA Record Keeping

Class Options Circle Preferred Date Location

OSHA Record Keeping - Webinar10:00 a.m. – 11:00 a.m.Free to Council Members$49 non-members

December 17, 2014 Webinar

Title Basics

Class Options Circle Preferred Date Location

Title Basics – Minneapolis9:30 a.m. - 11:30 a.m. $199 January 13, 2015

Doubletree by Hilton - Park Place1500 Park Place BlvdMinneapolis, MN 55416

faxregistration.indd 1 11/17/14 3:17 PM