John Medved - Colorado Automobile Dealers Association

Colorado Automobile Dealers Association
Volume 9, Issue 1
January 2009
John Medved
2009 Colorado
Dealer of the Year
More on Page 11
Nancy Ariano Column ..................... page 2
What Sells New Vehicles? ............... page 3
Tim Jackson Column ....................... page 4
Regulatory Updates .......................... page 5
Motivation During Tough Times ..... page 6
Under the Gold Dome ..................... page 9
Winter Weather Maintenance ......... page 10
Jeff Carlson, NADA News .............. page 12
Calendar of Events .......................... page 15
Milestones & Highlights .................. page 16
Chair’s Column
MESSAGE FROM THE CADA CHAIR
Happy New Year dealers, colleagues and friends. With a rocky 2008 behind us, I’d like to
share hope and optimism for 2009 with all of you.
Nancy Ariano
CADA Chair
The 2009 Colorado
State Legislative
Session began
on Wednesday,
January 7, 2009,
and I can tell you
that the state of
Colorado itself
is enduring the
same economic
hardships that
we are seeing
and feeling in
our dealerships.
2
The 2009 Colorado state legislative session began on Wednesday, January 7, 2009, and I
can tell you that the state of Colorado itself is enduring the same economic hardships that
we are seeing and feeling in our dealerships. Economists for the Department of Revenue
recently reported that Colorado is experiencing a $600 million shortfall in revenue for
fiscal year 2007-2008. As such, the state will now be forced to make difficult choices this
session as to which basic services will be cut or drastically reduced, including employees.
I know most of us have been forced to make these same hard decisions in our own dealerships, but I can say with great confidence that auto dealers are the most resilient of all
business people, and I can only hope the state’s political leaders are as strong, enduring
and capable as the state’s business leaders are!
Through the leadership of your Legislative Policy Committee, co-chaired by Don Hicks
and Matt Tynan, I am very excited to share with you our proactive legislative agenda
for 2009. Based on results of an association-wide survey conducted last year, your LPC
has prioritized seven issues for inclusion in a bill that your lobby team will work hard
to pass at the Capitol over the next four months. The items to be included in our bill are
described briefly below:
1. Warranty and Sales Incentives Audits. The amount of time a dealer has to submit
a warranty claim or receive payment on a sales incentive should be equal to the
amount of time a manufacture can “look back” and audit these claims. Our goal,
consistent with other states, is to make this time frame 12 months for both sides.
2. Dualing. We are seeking an outright prohibition on the requirement of exclusive
facilities by manufacturers.
3. Incentives tied to facilities upgrades. We want to make mandatory facility
upgrades illegal. However, if a dealer wishes to voluntarily participate in a program
that ties incentives to facility upgrades, the program must be applied equitably to all
dealers in Colorado for that line-make.
4. Pricing variances based on sales volume. Similar to a recent law passed in
Florida, we would like whatever incentives are offered by a manufacturer to dealers
in states outside of Colorado, to also be offered in Colorado.
5. Termination and Market Withdrawal.
In cases of involuntary terminations, we
are asking the legislature to require the
following: Manufacturers must pay the
dealer fair market value for the franchise, including value for goodwill, and
must pay the value of leased property.
These fiscal determinations shall be
calculated by a CPA.
6. Buy, Sell, Transfer or Relocation
of Dealership or Change in
Management. We are seeking time
Colorado Automobile Dealers Association
January 2009
Informative Article
lines for manufacturer approval or disapproval of dealer location, changes in executive management, and relocation. This section
would also require the manufacturer to pay “unwind” fees incurred by the prospective purchaser and seller if the deal is denied,
reduce the time frame a manufacturer can own a dealership from 24 months to 12 months, and prohibit site control as a condition
of approval for a transfer, acquisition and/or relocation of a dealership or renewal of a sales and service agreement.
7. Prohibit manufacturers from selling used vehicles directly. We would “grandfather-in” current sellers (International Truck)
but prohibit the issuance of new licenses going forward after July 1, 2009.
As you can see, this is a thorough and thoughtful agenda, and we are excited to watch our lobby team work so diligently to accomplish
these goals. Politics is an ever changing arena, so the final legislation passed may not be exactly what I have listed, but the framework
above is a great starting place from which we hope will help make 2009 a prosperous and fruitful year for all of you. Thank you for
your hard work, leadership, and dedication to CADA.
WHAT SELLS NEW VEHICLES? SAFETY SELLS CARS
Portions of this article are adapted from “A Dealer Guide to Selling Vehicle Safety” (SL37), which can
be ordered online at www.nada.org/mecatalog or by calling NADA at 800-252-NADA, ext. 2. For more
information on NADA’s “Buy Now” campaign, visit www.nada.org/buynowads.
The National Highway Traffic Safety Administration (NHTSA) confirms it. In the majority of its recent consumer research, safety
typically places in the top three or four important purchase criteria for auto consumers—right along with price, styling and performance.
Today’s vehicles are a lot safer than they were 25 years ago, when the government issued the first of more than 50 vehicle safety
standards. These standards are credited with reducing traffic fatalities by more than 30 percent.
Additional safety and performance improvements, combined with increased seatbelt use, fewer drunk-driving deaths, and improved
highway design, have reduced traffic deaths even more. To help put vehicle safety in perspective—and to help you point out and
explain the safety features and benefits of the vehicles you sell—let’s list those features that are required by federal law. Don’t be shy
about explaining these required standard safety features to your customers.
Believe it or not, the list will be news to many. All new cars must be equipped
with the following:
• Safety belts or airbags
• Head restraints
• Energy-absorbing steering columns
• Shatterproof laminated glass
• Dual braking systems
• High-mounted brake lights
• Tougher bumpers
• Improved roof and door strength
• More interior padding
• Safer fuel systems and gas tanks
• Better instruments, controls, warning devices,
lighting, windshield wipers, defoggers, and rear-view mirrors
But remember—safety isn’t your only strong selling point. Vehicles are more
fuel-efficient than ever, and dealers across the country are offering a variety of
incentives and competitive financing options. There are many reasons that this
is the time for consumers to buy new vehicles, and NADA has outlined these reasons in its “Buy Now” advertising campaign. NADA
has created a series of advertisements for TV/cable, radio, and newspapers, and is offering them to media outlets nationwide. The
audio and video public service announcements and print ads are all available for download at www.nada.org/buynowads.
January 2009
Colorado Automobile Dealers Association
3
From the President
COLORADOʼS NEXT U.S. SENATOR
WILL BE MICHAEL BENNET
What does Ritterʼs choice mean for auto dealers, employers,
investors, taxpayers, education, and Colorado?
At 2 p.m. on Saturday, January 3, Colorado Gov. Bill Ritter held a press conference at
the State Capitol to announce the selection of Michael Bennet, Superintendent of Denver
Public Schools, to replace Ken Salazar as Colorado’s next U.S. Senator. I was able to
attend the press conference which attracted about 200 spectators, supporters, media and
public officials.
Tim Jackson
CADA President
By almost all accounts, this selection is viewed as a surprise, even an outside the box,
selection. What does the appointment mean to auto dealers and the auto industry? What
does it mean to employers? What does it mean to investors, risk-takers, capitalists? What
does it mean to taxpayers? What does it mean for the country’s public education system?
And, what does this appointment mean for Colorado and our future?
This appointment raises many more questions than it does answers.
The answers will be learned over time.
This appointment
raises many
more questions
than it does
answers.
The answers
will be learned
over time.
What we do know about Michael Bennet is this: He has most
recently served as Superintendent of Denver Public Schools where
he led a reform-minded, restructuring effort intended to re-direct the
failing school system, grow graduation rates, improve test scores,
strengthen financial stability and improve the quality of the education experience. He has
served in that role for 3 1/2 years.
Prior to Denver Public Schools, Bennet served as Chief of Staff for Denver Mayor
Hickenlooper, a position he held for two years, where he was credited with leading the
way on balancing a historic budget deficit. Prior to DPS, Bennet was managing director
of the Anschutz Investment Company, where he managed the restructuring of more than
$3 billion in corporate debt.
My assessment of this appointment for the
auto industry is that it remains far too early
to determine its impact. Bennet, without
doubt, is creative, smart and a quick study at
each new diverse venture. This appointment
provides Bennet the opportunity to learn an
entirely new discipline, serving in an august
legislative body. This is something Bennet
has never done, yet surely something he will
easily master. The biggest question for us
will be how he masters the position and how
he views the industry.
Time will tell. This new opportunity for
Bennet will be a learning experience for
everyone. We’ll watch and learn.
4
Colorado Automobile Dealers Association
2008 Dealer Election
Action Committee (DEAC)
Donations Ranking Report
NADA’s Dealer Election Action
Committee is one of the largest, most
successful, and most effective federal
political action committee (PAC) in
the nation. Colorado ranked third this
year in the DEAC state/local donations
rankings, one of the few states to grow
in contributions for the year.
DEAC accepts donations made using a
personal check or credit card. Donations
can be sent to DEAC, 8400 Westpark
Drive, McLean VA 22102.
January 2009
In Regulatory News...
NEW I-9 REQUIRED FOR FEDERAL EMPLOYMENT VERIFICATION BEGINNING FEB. 2
Since 1986, federal law has required employers to verify the identity and work authorization of newly hired employees and complete
Form I-9. This is done by reviewing a document that illustrates both identity and work authorization or by examining a combination of
identity and work authorization documents. Beginning February 2, 2009, employers will be required to use a new Employment Eligibility Verification Form I-9 to verify the identity and work authorization of all new hires. No previous editions for Form I-9 will be accepted after February 2, 2009. Until that date, however, employers should continue to use the existing form and current I-9 procedures.
Employers will notice some major changes to the employment eligibility verification process. Most significantly, after Feb. 2, all documentation offered for I-9 purposes must be unexpired at the time it is presented. This marks a complete reversal of existing I-9 procedures.
The United States Bureau of Citizenship and Immigration Services has said that it will issue a new Handbook for Employers before Feb.
2, 2009 to assist employers in complying with the new rules. However, it is important to remember that the new Form I-9 should be used
only for employees hired on or after February 2, 2009 and should not be completed for existing employees hired before that date.
• Current I-9 form: www.uscis.gov/files/form/I-9.pdf (Rev. 06/05/07; Check back in later January for the revised version)
• Employment Eligibility Verification information page: Go to www.uscis.gov/portal/site/uscis/ and
click on the “For Employers” link in the left-hand menu bar.
For more information, contact MSEC’s Immigration Services Unit at 303.223.5430 (simply identify yourself
as a CADA member to receive support).
COLORADO MINIMUM WAGE:
ANNUAL INCREASE EFFECTIVE JAN. 1
NADA Regulatory Notables...
NADA’s membership department urges association members to verify their contact information
through a new online process available at www.
nada.org/membership. Members who maintain
a current e-mail and mailing address ensure that
they will continue to receive important and timely
updates from NADA. The new online verification process also allows members to easily change
contact information. Members may also visit www.
nada.org/subscribe to manage their subscriptions to
NADA’s member newsletters, including the daily
e-newsletter NADA Headlines.
_________
NADA Summary of TALF (Term Asset-Backed
Securities Loan Facility): A new Web page on
NADA’S web site -- www.nada.org/MediaCenter/
IndustryNews/TALF -- explains in greater detail
what the Federal Reserve Board’s TALF program
means to dealers and how they will benefit from
the action taken on Dec. 19 to include securities
backed by dealer floorplan loans as a qualifying
asset class.
_________
The fall 2008 NADA Regulatory Review is
now available at www.nada.org/Advocacy+
Outreach/RegulatoryAffairs/. This issue contains
a number of active links so you can view relevant
regulations and other materials just by clicking on
them. If you prefer to receive Regulatory Review
by fax, please call NADA Legal and Regulatory
Affairs at 703.821.7041.
January 2009
The Colorado minimum wage increased to $7.28 per hour effective
January 1, 2009. As a result of changes made to the Colorado Constitution in
2006 (Amendment 42), the state minimum wage is now adjusted annually for
inflation, based on a Colorado Consumer Price Index. The inflation adjustment
is based on the Consumer Price Index for All Urban Consumers (CPI-U), All
Items, for the Denver-Boulder-Greeley combined metropolitan statistical area
as published by the United States Bureau of Labor Statistics (BLS). The CPI-U
increased 3.7 percent from the first half of 2007 to
the first half of 2008, which results in the new minimum wage of $7.28 per hour. Visit the Colorado
Department of Labor, Minimum Wage pages at
www.coworkforce.com/LAB/minimumwage.asp
for links to revised posters and Minimum Wage
Order Number 25.
$7.28
per
hour
JAN. 1 SALES AND USE TAX CHANGES
The Department of Revenue, Division of Taxation has posted the summary
of sales/use tax changes effective January 1, 2009. There are many changes
and new taxes; dealership title personnel and controllers should review the
full listing closely:
January 1, 2009 Sales/Use Tax changes: Dec. 17, 2008 Open Road issue
www.cadaopenroad.org/enewsletter/enews_archives2008.htm
Note that two cities, Centennial and Tinmath, have elected to become selfcollecting and will no longer be state-collected. As a reminder, dealerships
should be utilizing one of the certified, third party tax databases. While these
databases should be updated with the changes highlighted above, dealership title
personnel may want to double check deals in these areas on or after January 1.
Colorado Automobile Dealers Association
5
Motivation During Tough Times
WHEN THE GOING GETS TOUGH…
By Michael Guld is an author, speaker, entrepreneur and radio commentator whose business development expertise lies in increasing
sales performance, marketing exposure, employee productivity and creating a world-class service experience. He is the president of
The Guld Resource Group and creator of “Talking Business with Michael Guld,” airing on Central Virginia’s Public Radio and heard
at www.talkingbiz.net.
He can be reached at (804) 360-3122 or at [email protected].
g
You’ve read all the headlines: “High gas prices, housing sales down, auto sales down, the escalating credit crunch,
rising inflation, looming recession and possibility of stagflation.” Not exactly the kind of news that makes you want
jjump out of bed in the morning, is it? So what do you do? You could just roll over and go back to sleep; however,
when you wake up the problem will still be there. You could attempt to pick yourself up by artificial stimulants.
Again…not a good long term or short term solution…they will not make the pain go away.
Neither individuals nor businesses care whether the country is technically in a recession or not – a decline in gross
N
domestic product (GDP) for two consecutive quarters or more – rather all they really care about is their pocketbooks
and making a good living. Most businesses are, at a minimum, being affected by the slowdown and most individuals are, at the very
least, uneasy about the potential fallout.
So how do we process all this stuff when the going gets tough? You may be familiar with the answer: “The tough get going!” This
famous proverb, attributed to Joseph P. Kennedy, father of John F. Kennedy, could never be more applicable than it is today. Regardless of outside influences and mostly uncontrollable variables, you still have a business to run, a budget to make, employees or
stockholders to support, bills to pay and a family counting on your success. Take the attitude that even in an economic slowdown,
a number of people are still going to be in the market for the products or services that you offer … and no one is going to satisfy their
needs more than you. If there’s going to be a recession, choose not to play.
So how do you put these words into action? Here’s how …
1. Live by the Serenity Prayer – “Accept the things you cannot change, have courage to change the things you can and the wisdom
to know the difference.” In business, the wind is either going to blow against your back or directly in your face, but rarely will it
be neutral. The automotive industry is cyclical as it will respond positively in good times and slow during down during periods of
uncertainty. Remain calm and composed and keep sailing full force forward through stormy seas ahead.
2. Ignite the passion for what you do – Remember why you got into this field and retain the enjoyment you have for the business.
Passion creates positive energy, which ignites and excites, whereas stress creates negative energy, which deflates and fatigues.
When you have a passion for what you do, you enjoy the process (your job) as much as the end result (your paycheck). And
passion is contagious, lifting your staff, co-workers and customers and producing better results in the process.
3. Commit yourself to personal and professional goals – Dreams are all about “wanting, hoping and waiting for it to happen,”
whereas goals are dreams with a deadline. The two most self-defeating words in goal setting are “if only”; they provide a built in excuse. Write your goals down, visualize achieving these goals and live for them everyday. While sometimes difficult, you have to take
the attitude that “not succeeding is not an option.” It may take working a little bit harder and little bit smarter...but never give up!
4. Have a plan – “If you do not have a roadmap, any old road will
get you there.” Know and commit yourself to the “best practices”
and activities that are needed to get you to the end goal. Set mini
goals with mini timelines and stay laser focused, ignoring the many
distractions trying to sway you off track. As the old saying goes “if
you spend all your time watching the scoreboard, the ball is going
to hit you in the face.” Have a game plan that has a well conceived
strategy and focuses on the fundamentals of good business…when
you do, the scoreboard will take care of itself.
5. Work the plan – While having a positive attitude is important,
only when coupled with positive activities will bring success. Your
6
Colorado Automobile Dealers Association
January 2009
plan should include sales, marketing and PR components to attract the business that you deserve. Make sure your daily “to-do
tasks” stays on plan and the energy you exert has an economic benefit that gets you closer to your goal; otherwise it’s wasted energy. Remember that wherever you put your time, your focus and your energy is where you are going to get the best results.
Stay laser focused on the end goal.
6. Refine and live your value proposition – In these days of hyper-competition, you have to have a USP (Unique Selling
Proposition) that translates to a UBA (Unique Buying Advantage). If you’re not unique, you can’t compete. Know and promote
your 3 Ds; what makes you drastically and distinctively different. How are you different than the dealer down the street? Does
the staff know that difference? If not education and an internal PR campaign may be needed. Do your customers know that
difference? If not, outside marketing should promote the unique value and brand promise that you deliver.
7. Provide a world-class customer experience – During tougher economic times, there is a tendency for buyers to become
more price conscious in an effort to save money. As competition increases and business slows, there is a knee-jerk reaction for
businesses to reduce prices to match or beat the competition. Instead, focus on the unique value that you provide through an
outstanding customer experience, with value-added benefits that customers and clients cannot receive anywhere else. Protect your
turf by reinforcing the value that you provide before the competition out-positions or undersells you.
8. Focus on new business development – If per-account spending is affected by a slow down, expanding your customer base can
make up the difference. There are others in your market who could be just as satisfied with your products, services and customer
experience as your existing clientele are … they just don’t know it yet.
9. Brand extend – Consider new revenue sources that you can capitalize on within your business. Starbucks has been successful
selling CDs, UPS stores selling greeting cards and Applebee’s offering “Curbside to Go.” What add-on products and services would
be of interest to your existing clientele that could provide additional revenue without a lot of additional cost or additional effort?
10. Stay in constant contact – When business is slow, many people spend their time hoping, wanting and waiting for business to
come in vs. taking steps to make business happen. When not working with customers, spend your down time working your sales,
marketing and PR plan to stay in constant contact with your customers and prospects. Whether its personal calls to let a prospect
know of a car that just came in that may be of interest or hand written personal notes these “touch points” keep you top of mind.
While the above are important in any economic environment, they are imperative in tougher economic times. Business is cyclical, and
those who dig deep to plant strong roots will not only survive the down cycle, but will thrive when the economy turns. The strong (and
committed) will survive.
In a slow growing or a declining market, you are playing for share. And given the
meteoric rise in gas prices that directly and indirectly (i.e. increasing food prices,
goods and services, etc.), it is no longer just competition from other dealerships, it is
competition for the pocketbook. It may be a choice between buying a car or furniture.
Again…it does not have to be just the lowest price…just the greatest value.
Hunker down, get back to business and take back control of your destiny. You are in
good hands … your own!
LEGISLATIVE VOLUNTEER POSITION OPENING
Opportunity available for participatory member dealers to serve in volunteer capacity in position on
the CAR Legislative Policy Committee. Meetings are monthly during the legislative session of the
Colorado General Assembly in person with weekly conference call updates. Successful candidates
will get a front row seat in the making of public policy that either enhances or adversely affects your
business. Compensation commensurate with other unpaid volunteer positions. While the pay is not
great, service on this committee is recognition for the timely commitment. To volunteer, please notify
us via email to [email protected] .
January 2009
Colorado Automobile Dealers Association
7
Under the Gold Dome
FROM CADAʼS VICE PRESIDENT OF
GOVERNMENT RELATIONS & COMMUNICATIONS
Greetings from the Capitol! The 2009 Legislative Session is in full swing after beginning
on January 7, and there has already been a flurry of activity under the Gold Dome. Nearly
200 bills have already been filed in the Senate and House of Representatives, and there
will certainly be hundreds more in the coming weeks.
Matt Tynan,
Tynanʼs, Denver
Don Hicks,
Shortline Auto, Denver
Legislative Policy Committee,
Co-Chairmen
There is nothing
more powerful
in the political
process than
legislators having
the opportunity
to hear from
their constituents
about what
matters most
to them.
8
In Gov. Ritter’s state of the state address last week, he outlined his priorities for the
coming Session. These included a bipartisan effort to protect businesses, create jobs, and
address the nearly $600 million budget shortfall facing legislators this year. The governor
and his staff are currently preparing a transportation package with recommendations on
how the legislature should address the repairs needed for road and bridge projects, namely the 126 structurally deficient bridges in Colorado. The governor’s recommendations,
which are due out this week, may include increases in rental car fees and motor vehicle
registration fees. It appears all but necessary to increase fees (which the Legislature can
do without a vote of the taxpayers) or increase taxes (which must have taxpayer approval,
per TABOR) in order to account for the massive budget shortfall. Given these economic
and political conditions, rest assured that your CADA legislative team is working hard
behind the scenes and is involved in these critical negotiations.
As a precursor to the Legislative Session, your CADA President, Tim Jackson, and I have
traveled extensively throughout our great state to meet with legislators in their districts.
The key to these meetings was the participation of several local dealers who took time
out of their schedules, during a less than satisfactory economy, to talk with legislators
about how the current recession has impacted their dealerships. There is nothing more
powerful in the political process than legislators having the opportunity to hear from
their constituents about what matters most to them. And on that note, if you have not
participated in these legislative meetings yet, we are planning more for the weeks and
months ahead, so please visit www.coloradodealers.org or watch your fax machine for
the latest scheduled meetings.
The following is a list of the legislators we met with over the last few weeks:
Sen. John Morse (D-Colorado Springs) Sen. Joyce Foster (D-Denver)
Sen. Josh Penry (R-Grand Junction)
Sen. Chris Romer (R-Denver)
Rep. Buffie McFadyen (D-Pueblo)
Rep. Sal Pace (D-Pueblo)
Rep. Joe Rice (D-Littleton)
Rep. Joe Miklosi (D-Denver)
Rep. Andy Kerr (D-Lakewood)
Rep. Steve King (R-Grand Junction)
Rep. Laura Bradford (R-Grand Junction) Rep. Glenn Vaad (R-Mead)
Rep. Don Marostica (R-Loveland)
Rep. Paul Weissmann (D-Louisville)
Rep. Karen Middleton (D-Aurora)
Rep. Dickie Lee Hullinghorst (D-Boulder)
During these meetings, we focused on two
specific subject areas, the first retaining the
Colorado ban on Sunday Sales. Given the recent
repeal of the blue laws regarding liquor sales
on Sunday during the 2008 Legislative Session,
there was a potential that our industry would
be targeted this year as the next focus of repeal.
Colorado Automobile Dealers Association
January 2009
Preparing for Nature
However, given the current economic downturn, the significant budget shortfall faced by the state, and the steadfast education provided to legislators by your CADA advocacy team, it does not appear there will be a bill filed
this year to change Sunday closings. Nevertheless, we are constantly monitoring legislation, which is filed on a
daily basis, and we’ll continue to have conversations with legislators to maintain the status quo on this issue.
The second focus of our meetings was discussion of our proposed bill to amend the Motor Vehicle Franchise
Act SB-08-091. Your Chair, Nancy Ariano, has highlighted these proposed changes in her column in this edition of The CADA Bulletin. Your legislative team is already working tirelessly to pass this bill, which was introduced in the legislature
on Friday, January 9. Now that it has been introduced, the bill will be assigned to a committee of reference, with a date and time for a
hearing to be determined soon.
In closing, I am excited to be a part of the CADA team and I am truly honored to represent you at the Colorado Capitol. To those of
you I have already met, thank you for your kindness and warm welcome, and to those of you I have yet to meet, I look forward to
seeing you soon and thank you for all of your hard work on behalf of our industry.
In the Spirit of Success,
Melissa L. Kuipers, Esq.
Vice President - Government Relations and Communications
WHO KNOWS WHAT NATURE HAS IN STORE?
Hope for the best, but prepare for the worst.
We’ve witnessed the fact that nature can strike a swift blow. We can’t prevent occurrences of floods, storms, earthquakes, and other
natural disasters—but we can take steps to manage them to minimize losses. Even the best insurance program possible may not be
enough to alleviate the inconvenience and inherent problems following a major loss. However, businesses that prepare for disasters
may recover more quickly and see less damage to the bottom line.
How can you better protect your operation?
• Ask your local fire, police, and emergency management departments for information to help train
employees on emergency actions to be taken for various types of natural disasters.
• Incorporate this information into a written emergency action plan for your business.
• Appoint leaders within your company to be responsible for implementing action plans.
• Train employees on the appropriate actions to take by conducting drills and testing equipment.
• Hold on–site sessions with local authorities.
Other ideas that may help protect your employees and property:
• Establish safe shelter areas that can be accessed quickly, particularly for tornadoes and earthquakes.
• Establish emergency communication and evacuation plans for employees.
• Establish facility shutdown and security procedures.
• Establish procedures to move records and inventory. Keep back-up records in a separate location.
• Work with a structural engineer to improve the strength of buildings.
• Determine effectiveness of audible warning systems for tornadoes.
• Determine if your facility is in a flood plain.
• Monitor weather reports for watches and warnings.
Federated Insurance can provide quality insurance protection and risk management assistance for your business.
With some forethought and help from your insurer, you will be better prepared to weather the storm.
January 2009
Colorado Automobile Dealers Association
9
Winter Weather Auto Maintenance
ICE AND SNOW? TAKE IT SLOW!
Here’s a cold fact about winter driving: The leading cause of death during winter storms is transportation
accidents. The good news is that by preparing your car for the winter season and knowing how to drive
in snow and ice, your travels this winter — for work or for play — can be safer and less stressful. For
more information on winter-driving safety, contact your Pinnacol Assurance marketing representative.
Before a winter storm:
• Know what your car can and cannot do in the snow. Find out whether you have front, rear, parttime or full-time four-wheel drive; antilock brakes; traction control; and stability control. Then
make sure you know how all these things work and how they help or won’t help you. It’s a good
idea to practice driving in an empty parking lot on a snowy day so you know what to expect from
your car under winter-driving conditions.
• Keep an emergency kit in your car with the following items: A car charger for your mobile
phone; a snowbrush, ice scraper, collapsible shovel and bag of sand or kitty litter (to help with
traction); extra windshield-washer fluid; an emergency blanket; warm gloves, hat, jacket
and boots; jumper cables; water and non-perishable snacks; a small LED flashlight;
and flares and/or reflective triangles for visibility.
• Check your antifreeze level; fill your windshield-wiper reservoir with winter fluid; check
your wiper blades to make sure they clean the windshield effectively; and replace tires that
have worn spots or inadequate tread depth. Consider snow tires if you regularly drive in
unplowed areas, even if you have all-wheel drive; they will not only help you get started,
but also increase your traction when braking and turning.
• Keep your gas tank close to full. If you get stuck or stranded, the engine will be your only source
of heat. You can run the engine indefinitely at idle (without harming it) to stay warm as long as
you have gas.
• Listen to the radio for the latest road conditions or call 303-639-1111 for recorded Colorado road
and weather information.
During the drive:
• Try to avoid bridges, overpasses, off-ramps and areas where water crosses pavement,
as these are usually the first places to develop black ice. If you cannot plan your trip
to bypass these hazards, be sure to slow down when approaching them.
• During adverse conditions, keep a safe distance — three car lengths for every
10 mph — between you and the car in front of you. Remember that trucks take
longer than cars to stop, so if you see a truck approaching, don’t cut in front of it.
• Don’t get overconfident if you have four-wheel drive. It won’t help you stop any faster.
• Do everything slowly and gently while driving. Keep in mind that in the snow, tires are
always just barely grabbing the road. Accelerate slowly and gently, turn slowly and gently,
and brake slowly and gently. Rapid movements lead to skids and loss of control.
• If the rear end of your car starts to fishtail back and forth, slow down until you feel all four tires
grip the road. Resist the temptation to brake. If you brake, do so gently. If you have anti-lock
brakes, apply gentle, steady pressure.
• If you start to skid, don’t panic. Remove your foot from the accelerator, take a deep breath, and
turn the steering wheel in the direction the car is sliding.
• In the event of an accident or breakdown, put out flares or reflective triangles to mark your
location, then return to your car, call for help, and stay warm while you wait. Crack the window
a bit while the car is idling, and be sure to get out periodically and remove snow from behind the
tailpipe to keep it unobstructed.
10
Colorado Automobile Dealers Association
December 2008
Steps for Credit Crisis Management
PINNACOL 2009 POLICYHOLDER SEMINARS
Pinnacol Assurance’s safety seminars help employers learn how to keep employees safe and
their workers’ compensation costs down. The courses emphasize real-world, practical information that can be applied to just about any company in any industry. Most seminars are free to Pinnacol policyholders—and they’re
an easy way for association dividend program participants to satisfy their annual safety-training requirement.
In 2009, Pinnacol has 70 seminars scheduled for policyholders across Colorado. Popular course topics include “Accident Investigation and Analysis,” “Construction Safety Management,” and “Effective Training for All Employees.” Based on policyholder feedback,
we’ve added some new courses such as “Bloodborne Pathogens: Preventing Disease Transmission,” “The Basics of Safety Management,” and “Safety Programs for Small Businesses,” as well as convenient new seminar locations including Burlington, Keystone, and
La Junta.
For more information or to register for a Pinnacol seminar, call 303.361.4776 or visit www.pinnacol.com. We encourage all Pinnacol
association members to consider attending one or more seminars. The upcoming seminar schedule includes:
January
• Lockout/Tagout and Machine Guarding—Denver
• Office Ergonomics/Train the Evaluator—Denver
• OSHA Recordkeeping/What to Expect From
an OSHA Inspection—Denver
February
• Claims Management: A Partnership That Pays
and Uncovering Workers’ Compensation Fraud—Denver
• Creating a Written Modified Duty Policy—Denver
• Managing Your Pinnacol Account Online—Denver
• SHA 10-Hour Construction—Denver, Glenwood Springs
• OSHA Recordkeeping/What to Expect From
an OSHA Inspection—Colorado Springs
• Safety Program Development—Denver, Grand Junction
March
• Back and Manual Material Handling Injury
Prevention—Denver
• Basics of Safety Management—Denver
• Construction Safety Management—Denver
• Excavation, Trenching, and Soil Mechanics—Denver
• Focus Four Hazards in the Construction
Industry—Denver
• Hazard Communication—Denver
• Safety Program Development—Burlington, Montrose
• Time-saving Tips for Modified Duty—Colorado Springs
MEDVED NAMED 2009 COLORADO DEALER OF THE YEAR
CADA is pleased to announced John F. Medved, owner/operator of Medved Autoplex in Wheat Ridge and
Castle Rock, as the 2009 Colorado Dealer of the Year. This selection allows Medved to advance to the national 2009 TIME Magazine Quality Dealer of the Year nomination. Medved began his automotive career in
1965 in San Rafael, Calif., where he applied for a job as a lot tech. But the sales manager was convinced he
could sell cars. Medved said, “I explained to him that I couldn’t sell anything. I was just a 17-year-old kid.
He said to me, ‘You sold me.’ I never looked back after that.”
Medved sold cars at Serbay Motor in Ypsilanti, MI where he attended Eastern Michigan University full time
and graduated with a Bachelor of Science degree in 1970. He also served as a commissioned officer in the
United States Navy. He became a salesman for Mark Chevrolet in Wayne, Mich.; was sales manager for Ray Whitfield Ford in Taylor,
Mich.; became dealer/partner for Stewart Chevrolet in Wood Haven, Mich.; and then purchased a minority interest in Craig Chevrolet
in Denver in 1988. Three years later, he owned 100 percent of the dealership.
Medved is a past president of the Metro Denver Automobile Dealers Association and currently serves on the Legislative Policy Committee for the Colorado Automobile Dealers Association. He was appointed by the governor to serve on the Colorado Motor Vehicle
Dealer Board and has won numerous awards for his dealerships and honors for his community involvement.
January 2009
Colorado Automobile Dealers Association
11
From the NADA Director
WHITE HOUSE APPROVES AUTOMAKER BRIDGE
LOANS; FEDERAL RESERVE BOARD EXTENDS
TALF TO FLOORPLAN SECURITIZATIONS
Jeff Carlson
Glenwood Springs Ford
Colorado NADA Director
Chairman, NADA Convention
...on Dec. 19, the
Federal Reserve
Board issued
changes to the
Term Asset-Backed
Securities Loan
Facility (TALF) to
explicitly include
securities backed
by automobile
floorplans in that
facility. This move
addresses a key
request from NADA
for greater liquidity
in the market.
12
President Bush announced Dec. 19 a $17.4 billion package to provide bridge loans to GM
and Chrysler from the Troubled Asset Relief Fund. The automakers will have to submit restructuring plans to the White House, including conditions that were part of the legislation
negotiated between the White House and congressional Democrats. GM and Chrysler must
also include in their plans targets for the companies proposed by Sen. Bob Corker of Tennessee. The automakers have a March 31 deadline to provide their financial viability, or
they must immediately pay back the government loans. A fact sheet from the White House
as well as the term sheets for both companies can be found by clicking on the links below:
• White House Fact Sheet:
www.magnetmail.net/images/clients/NADA/attach/WhiteHouseFactSheet.pdf
• GM Term Sheet:
www.magnetmail.net/images/clients/NADA/attach/GMtermsheet.pdf
• Chrysler Term Sheet:
www.magnetmail.net/images/clients/NADA/attach/Chryslertermsheet.pdf
While the plans do not preempt state franchise laws or mandate the trimming of dealer
networks, NADA will defend these fundamental principles during the restructuring process. NADA will continue to educate members of Congress, executive branch officials,
and the media on the value of the dealer and the role of state franchise laws in maintaining a competitive marketplace. Please stress these points locally with your elected
officials and the media. (A list of how members of Congress voted on the bridge loans
legislation, sorted by state, is at www.magnetmail.net/images/clients/NADA/attach/Autovote.pdf. These were tough votes for members of Congress, especially Republicans, so
please thank those who voted for the bridge loans.)
In a related action on Dec. 19, the Federal Reserve Board issued changes to the Term
Asset-Backed Securities Loan Facility (TALF) to explicitly include securities backed by
automobile floorplans in that facility. This move addresses a key request from NADA for
greater liquidity in the market. NADA actively encouraged the Federal Reserve to make
this change, including at a Dec. 18 meeting with representatives of the Federal Reserve.
In addition to confirming the eligibility of securities backed by floorplans, the Federal
Reserve also extended the term of TALF loans from one to three years and provided that
TALF loans could have fixed or floating interest rates. These changes will make it easier
for auto finance companies to use the TALF to issue floorplan securitizations.
NADA Chairman Praises Pres. Bush for Providing Automaker Relief
NADA Chair Annette Sykora said Bush’s decision to provide domestic automakers with
short-term loans gives “the shot in the arm we need to lead the economic recovery.”
“This is the first step toward restoring consumer confidence,” Sykora said in a written
statement after Bush announced Dec. 19 that the government will provide $17.4 billion
to U.S. automakers in short-term loans to give manufacturers time to restructure. “When
you have the government declaring its confidence and commitment to U.S. auto manufacturers, it helps reassure the American public that domestic automakers will be around for
the long term,” Sykora said. “This sends a clear message: Consumers can now consider
any car from any manufacturer with confidence.”
Colorado Automobile Dealers Association
January 2009
NADA News
New-car and -truck dealers from across the country were in Washington early last month—
before the bridge loans were announced on Dec. 19—to meet with members of Congress and urge support for financial
assistance for struggling automakers. The dealers helped put a local face on the issue, emphasizing that they are part of the
solution, not the problem. While in Washington, dealers called on Congress to pass legislation (S. 3684 and H.R. 7273) providing tax incentives to boost auto sales and stimulate the economy. “Allowing consumers to deduct the interest on their car
loans, as well as state sales taxes, from their personal income taxes would help bring consumers back to the showrooms and
get the economy back on track,” NADA Chairman Annette Sykora said. During their visits, dealers also talked with their representatives about supporting an auto dealer loan guarantee initiative that NADA is working on with the Small Business Administration. Modeled after a program put together in 1980 in similar economic conditions, the initiative would give dealers
access to the working capital they need to keep their businesses open and their workforces employed. The hometowns of auto
dealers and dealer representatives participating in NADA’s fly-in to Washington are listed at www.nada.org/MediaCenter/
News+Releases/, click on the December 9, 2008, release titled “Auto Dealers Put Local Face on Need for Automaker Loans.”
NADA is offering a presentation featuring two speakers who can explain the options and
detail the steps dealers need to
take to protect their businesses.
January 2009
Please join the
Colorado Auto Dealers Association
for a "Jazzy" Breakfast at the NADA Convention
Sunday, January 25th ~ 7:15 - 9:00 am
Riverbend Ballroom II
Marriott New Orleans at the Convention Center
859 Convention Center Boulevard
Keynote Speaker
Senator Nancy Spence
Menu
Assorted juices, assorted breads, scrambled eggs,
Cajun hash potatoes, tomatoes, onions, andouille tasso,
coffee and assorted teas
RSVP
Call Lauren Stadler at 303.457.5123 or email [email protected]
Questions? Call 303.888.9100
Colorado Automobile Dealers Association
www.coloradodealers.org
Printed on recycled paper.
“Tough Times, Tougher Dealers: Saving
Your Dealership’s Assets” will be offered as
a virtual seminar from 1 to 3 p.m. on Jan. 13.
It will also be a workshop at the 2009 NADA
Convention & Exposition in New Orleans.
“Tough Times, Tougher Dealers,” presented
by attorney Michael Charapp, of Charapp
& Weiss, LLP, and CPA Bradley Nicklin, of
Beers + Cutler, focuses on the issues facing almost every dealer today, such as cash
management, expense control, and franchise
rights. Participants will also learn how to deal
with bankruptcy—both at the manufacturer
and dealership levels—as well as franchise
terminations, brand terminations, and the
legal ramifications of reducing a workforce.
The registration fee for the virtual seminar is
only $50 per computer connection. For more
information or to register, visit www.nada.
org/seminars. The “Tough Times, Tougher
Dealers” convention workshop will be held
twice—11 a.m. on Saturday, Jan. 24, and
8:30 a.m. on Monday, Jan. 26. In addition,
the convention will offer more than 40 other
workshops, many of which are designed to
tackle today’s tough economic issues head-on,
such as maintaining dealer profitability, improving cash flow, surviving the credit crunch
and driving customers back to dealerships. For
more, visit www.nada.org/convention.
13
CADA Board of Directors & Staff
OFFICERS
Chair of the Board
Nancy Ariano
New Country Auto Center, Durango
Vice Chair
Mike Faricy
The Faricy Boys, Colorado Springs
Robert Fuoco
Jim Fuoco Motor Company
Grand Junction – District #11
Steve Nilsson
Glenwood Springs Ford
Glenwood Springs – District #12
Jeff Carlson
Glenwood Springs Ford
Colorado NADA Director
Chairman, NADA Convention
Secretary
Don Hicks
Shortline Auto, Denver
Treasurer
Don Gerbaz
Berthod Motors, Glenwood Springs
Immediate Past Chair
Bob Ghent
Ghent Motor Co., Greeley
President
Tim Jackson, CAE
[email protected]
303.282.1448
Vice President
Tammi L. McCoy
[email protected]
303.282.1449
DIRECTORS
Gregg Stone
Kuni Lexus
Englewood – District #1
Vice President Government Relations and Communications
Melissa Kuipers, Esq.
[email protected]
303.457.5115
Jim Suss
Suss Buick Pontiac GMC
Aurora – District #2
Bond Coordinator
Linda Toteve
[email protected]
303.457.5122
John Schenden
Pro Chrysler Jeep
Thornton – District #3
CADA F&I Resource Center Manager
Michelle Chavez
[email protected]
303.457.5119
Jack TerHar Jr
Sill TerHar Motors
Broomfield – District #4
Ed Tynan
Tynan’s Fort Collins Nissan-Kia-Saab
Ft. Collins – District #5
Wes Taber
Honda of Greeley
Greeley – District #6
Jon Lind
Burlington Ford Lincoln Mercury
Burlington – District #7
Elizabeth Daniels-Winston
Daniels Chevrolet
Colorado Springs – District #8
14
CADA STAFF
Insurance Services - Account Manager
Deb Lay
[email protected]
303.282.1453
Insurance Services - Account Manager
Bob Kogel
[email protected]
303.282.1457
Executive and Communications Assistant
Lauren Stadler
[email protected]
303.457.5123
Bill Wilcoxson
Wilcoxson Buick Cadillac GMC
Pueblo – District #9
Services Coordinator
George Billings
[email protected]
303.457.5117
Jim Morehart
Morehart Chevrolet
Durango – District #10
CADA Headquarters • William D. Barrow Building
290 E. Speer Blvd. • Denver, CO 80203
Phone: 303.831.1722 • Fax: 303.831.4205
Colorado Automobile Dealers Association
January 2009
Calendar of Upcoming Events & Seminars
To register online for any CADA seminar or event,
please visit: www.coloradodealers.org/registration
EVENT DESCRIPTION
NADA Convention & Exposition
LOCATION
DATE/TIME
Saturday, Jan. 24 to
Tuesday, Jan.27
New Orleans Morial
Convention Center
For more information,
go to http://expo.nada.org/
Annual CADA Legislative Reception
Thursday, Feb. 12
Denver
5 to 7:30 p.m.
William D. Barrow Building
(CADA/MDADA Headquarters)
290 East Speer Blvd, Denver
More information coming soon!
Employment Law Seminar:
FMLA and ADA – NEW FEDERAL
REGULATIONS!
By Todd Fredrickson, top Denver
employment attorney
Tuesday, March 10
New Orleans
Noon to 2:30 p.m.
lunch included
Colorado Springs
Denver International Auto Show
Denver
CADA Annual Member
Golf Event
Cherry Hills Village
Antlers Hilton Hotel,
4 South Cascade Ave.,
Colorado Springs, 80903
Phone: 719.955.5600
*Colorado Springs dealers should
register with CSADA, Ann Winslow,
Phone: 719.473.1465 or E-mail:
[email protected]
Wednesday, April 1
to Sunday, April 5
Colorado Convention Center
700 14th Street
Denver 80202
Save the date – more details will
be available soon!
Monday, Aug. 24, 2009
Glenmoor Country Club
110 Glenmoor Drive
Cherry Hills Village, 80113
303.781.3000
www.glenmoorcc.org
Save the date!
12 Noon Shotgun Start
MAKE PLANS TO ATTEND THE EMPLOYMENT LAW SEMINAR
DETAILING NEW FEDERAL REGULATIONS FMLA AND ADA ACTS
Tuesday, March 10 from noon to 2:30 p.m. in Colorado Springs
The U.S. Dept. of Labor announced new Family Medical Leave Act (FMLA) regulations in November 2008, the first significant changes to the regulations since 1995. In January 2009, the federal government saddled employers with new laws,
regulations and obligations under the Americans with Disabilities Act (ADA) and FMLA.
Workplace law experts expect these new laws will generate an increase in lawsuits against
employers—especially in the current economic downturn as downsizing is occurring. The
ADA Amendments Act require almost all human resource professionals, managers, and
business owners to adopt new policies and procedures in dealing with accommodation requests, as well as greatly impact employment litigation claims. Come here more at this seminar presented by top Denver employment attorney Todd Frederickson, who regularly counsels
clients on a spectrum of personnel management issues, with the goal of avoiding litigation.
January 2009
Colorado Automobile Dealers Association
15
Dealership Milestones, Highlights & Transitions
CADA IN WASHINGTON D.C.
CADA members and staff went to Washington, D.C. several
times in 2008 to support legislation to aid the automotive
industry. Pictured in front of
the Capitol are Jeff Carlson,
Melissa Kuipers, John Schenden, John Medved. In the
photo below are Jeff Carlson,
John Schenden, John Medved,
Melissa Kuipers, Congressman
John Salazar. This photo was
taken in the Congressman’s
office in Washington D.C.
NADA 2009 CONVENTION
AND EXPOSITION
nity.’ What better way to show that commitment than for us to
be there in full strength at one of NADA’s favorite convention
cities,” said Annette Sykora, 2008 NADA Chairman. NADA
has held its convention in New Orleans every few years for
the past 30 years. For more information, visit the following
websites:
http://www.nada.org/TrainingEvents/Convention/
http://expo.nada.org/nada2009/public/enter.aspx
CADA AT THE LAKEWOOD ROTARY CLUB
CADA President Tim Jackson (below) spoke to a group at the
Lakewood Rotary Club on Dec. 11. Tim was invited to speak
by Dean Dowson of Empire Lakewood Nissan, a member of
the Lakewood Rotary Club as well as CADA. During his 30
minute presentation to members, Tim spoke about general
trends in the automotive industry, the Clear the Air Foundation, and answered questions from club members.
Over the past 10 years, Tim Jackson has been the featured
speaker at more than 115 of Colorado’s 130 Rotary Clubs,
some of which he has provided the key-note address on
as many as five different occasions. He has also served as
featured speaker at many Kiwanis, Lions, and Sertoma clubs,
as well as Chambers of Commerce and other business and
professional groups. To schedule community presentations,
please contact Tim Jackson, CADA President, via e-mail at
[email protected] or by calling 303.282.1448.
New Orleans is now the eighth fastest growing metropolitan
area in the United States, according to the U.S. Census Bureau. To show support for the rebirth of New Orleans, NADA
is headed back to the Big Easy to hold its 92nd annual convention and exposition there
Jan. 24-27, 2009.
“The theme for our New
Orleans convention is
‘Voice of the Dealer® ...
Committed to Commu-
AUTO INDUSTRY RESOURCES
•
•
•
Auto Industry Division: 303.205.5746, www.colorado.gov/revenue/AID
Titles/Registration: 303.205.5608, www.colorado.gov/revenue/dmv (Select “Title - Register a Vehicle” link)
Department of Revenue Taxation: www.colorado.gov/revenue/tax
Bulletin questions or comments? If you have questions about items in this newsletter or suggestions for future
articles, please contact Lauren Stadler at 303.457.5123 or e-mail to [email protected].
DISCLAIMER: CADA IS NOT AUTHORIZED TO DISPENSE LEGAL ADVICE. THE INFORMATION CONTAINED IN THIS NEWSLETTER IS FOR
INFORMATIONAL PURPOSES ONLY. CADA ADVISES THAT DEALERS CONSULT LEGAL COUNSEL ON THE SPECIFICS OF ANY LAW OR
REGULATION TO ENSURE FULL COMPLIANCE.