2011 - Orange County Automobile Dealers Association OCADA

Transcription

2011 - Orange County Automobile Dealers Association OCADA
SUMMER 2011
Volume 51, Issue 3
THE OFFICIAL PUBLICATION OF THE ORANGE COUNTY AUTOMOBILE DEALERS ASSOCIATION
OC Dealer is a publication of Media
Communications Group and is the of ficial
publica t ion of Or ange Coun t y Au tomobile
Dealers Association. OC Dealer is published 4
times per year by Media Communications Group.
The statements and opinions expressed herein
are those of the individual authors and do not
necessarily represent the views of OC Dealer,
or its publisher Media Communications Group.
Any legal advice should be regarded as general
information. It is strongly recommended that one
contact an attorney for counsel regarding specific
circumstances. Likewise, the appearance of
advertisers does not constitute an endorsement
of the products or services featured by Media
Communications Group.
14
OCADA 47TH ANNUAL GOLF TOURNAMENT
4 Calendar of Events
6 President’s Message
10 Orange County Auto Theft Task Force
11 OCADA in the District
14 OCADA 47th Annual Golf Tournament
17 OCADA Welcomes Our New Dealer and
17
OPERATION HOMEFRONT
Associate Members
17 OCADA Donates a Vehicle to Operation Homefront
19 Why is it Important to Contribute to the PAC?
19 2011 OCADA-PAC Honor Roll
20 Get to Know Your Legislator:
25
FACILITY IMPROVEMENTS
Congressman Gary Miller
22 An Update from Capitol Hill
By Congressman John Campbell
25 Facility Improvements
OC DEALER is a Publication of the Orange
County Automobile Dealers Association
3737 Birch St., Suite 220
Newport Beach, CA 92660
www.ocada.org
Phone: 949-428-5050
Fax: 949-428-5054
SUMMER 2011
3
Board of
Directors
PRESIDENT
Jon Gray
Orange Coast Chrysler Jeep Dodge
Orange Coast Fiat
VICE PRESIDENT
Bruce Hamlin
Guaranty Chevrolet
TREASURER
Paul Conant
Norm Reeves Honda Huntington Beach
Calendar of Events
Sept. 14
Steve Richards Sales Training Workshop
Leasing as a Sales Tool, National University, Costa Mesa
Sept. 15
Sept. 20-21
Sept. 22
Sept. 22-25
Northwood University Scholarship Golf Tournament
Monarch Beach Golf Links, Dana Point
NADA Washington Conference
JW Marriott Hotel, Washington D.C.
Dealer Preview Reception, Orange County
International Auto Show
Anaheim Convention Center, Anaheim
Orange County International Auto Show
Anaheim Convention Center, Anaheim
IMMEDIATE PAST
PRESIDENT
John Patterson
Huntington Beach Mazda
OC Hyundai
Tustin Mazda
EXECUTIVE
DIRECTOR/SECRETARY
John Sackrison
Orange County Automobile
Dealers Association
DIRECTORS
Cliff Allen
Allen Cadillac GMC Hyundai
Mike D’Amato
Tustin Lexus
Paul Lunsford
South Coast Toyota
Allen Moznett
Newport Lexus
Tim Mullahey
Fullerton Kia
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Supporting students at the
Northwood University/Cerritos College Program Center
21st Annual Scholarship Golf Tournament
Monarch Beach Golf Links
Dana Point, CA
Thursday, September 15, 2011
Registration at 10:00 am
Tee Off Time: 12:30 pm
$295/person* • $1,180/foursome*
Includes green fees, cart, course beverages, hors d’oeuvres,
cocktails, dinner, awards, and prizes.
*As a participant in the tournament, your payment in excess of
$200.00 per participant is tax deductible.
Sponsorship opportunities are available.
Register by Friday, September 2
If you have any questions, please contact us at::
Bruce Sedlezky (714)227-2074 - [email protected]
Warren Mault (989)837-4349 [email protected]
Online Registration/Payment & Information
http://www.northwood.edu/alumni
4
OC Dealer WWW.OCADA.ORG
Reach OC car
buyers at
every turn.
From print to online to mobile media, our
advertising vehicles fire on all cylinders.
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Call Carrie Brown
714.966.7503
[email protected]
Print network
Los Angeles Times (East Zone – OC)
Daily Pilot (Newport Beach & Costa Mesa)
Huntington Beach Independent
Laguna Beach Coastline Pilot
Online network
latimes.com (geo targeted - OC)
cars.com
theOCnow.com
DailyPilot.com
HBIndependent.com
CoastlinePilot.com
Affiliate network
Dana Point Times
San Clemente Times
The Capistrano Dispatch
GreersOC.com
PRESIDENT’S
MESSAGE
Orange County International Auto Show
Jon Gray
T
he Orange County International
Auto Show will be held September
22-25 at the Anaheim Convention
Center. The Auto Show’s sole purpose
is to excite our consumers with all
the new vehicles we have to offer and
create the demand to get them to our
dealerships!
Here are three Auto
Show opportunities you
don’t want to miss!
1. Free Email Ticket Program
Take advantage of this program, send
a free Auto Show ticket to all your
customers to say thank you. Use the
Free Ticket program as a way to help
6
OC Dealer WWW.OCADA.ORG
promote or build excitement about
new products. It is super easy to signup, all it takes is one call to Sean Taylor
at OCADA.
2. Dealer Preview Party
Join us for a private preview of the
Auto show floor room 2pm–4pm
Thursday, September 22nd. The
Orange County Register will be
giving away free ads! The event will
include Dealers, Associates, Managers
and Elected Officials.
3. Make sure your Manufacturer
brings their “A” Game.
Help us make this the best Auto Show
around, ask your manufacturer for
concepts, pre-production and tricked
out cars to display in their areas. We
will highlight the hot cars to the
media and in our ads and promotions.
The more exciting the exhibit means
more consumers to your exhibit and
then to your dealership.
We look forward to seeing you
September 22, 2011 for the Dealer
Preview Party at the Orange County
International Auto Show! Q
Sincerely,
Jon Gray
President
When it comes to legal matters,
BKGG will steer you in the
right direction.
BKGG offers outstanding representation to auto dealers and their owners. BKGG has the largest jury
verdicts in California for dealers against manufacturers. BKGG’s services also include prosecution and
defense of manufacturer disputes, strategic defense of consumer litigation, dealership real estate
acquisition and sales, and employment law.
2020 Main Street, Suite 600
Irvine, CA 92614
949.975.7500
www.bkgglaw.com
You can’t predict change. But you
can change your predicament.
Markets shift. Regulations get revised. Lending tightens.
And with each new wrinkle, doing business becomes that
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can help. One with close to a century of experience. And one
that’s here for you when you need to reduce risk, determine
value, structure transactions, and more.
Discover how we can make a difference to your dealership.
Scott Swearingen, Assurance Partner
2030 Main Street, Suite 1400 | Irvine, CA 92614
(949) 221-4025 W W W . M O S S A D A M S . C O M
Certified Public Accountants | Business Consultants
Acumen. Agility. Answers.
SUMMER 2011
9
O
n June 16th the OCADA proudly sponsored the Annual Orange County Auto Theft Taskforce Officer of the Year Awards.
The event recognizes police officers with the most stolen vehicle recoveries from each city culminating with awards
for the top 5 officers in the county. Combined, this task force of officers recovered 197 vehicles in 2010.
This year’s recipients were:
1. Officer Tom Carney – Buena Park P.D.
2. Officer Kevin Voorhis – Anaheim P.D.
3. Officer Jimmy Correal – Santa Ana P.D.
4. Deputies Troy Feeley & Dallas Hennessey –
Orange County Sheriff’s Department
5. Officer Kenneth Pate – Westminster P.D.
In addition to sponsoring the event, OCADA
presented charitable contributions to the top
five officers’ favorite charities.
The top 5 Officers in Orange County receiving their awards at the Orange County
Auto Taskforce Officer of the Year awards ceremony.
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10 OC Dealer WWW.OCADA.ORG
in the District
Assemblyman Don Wagner Luncheon
Orange County Dealers met with Assemblyman Don Wagner to discuss current legislative issues affecting the Automotive Industry.
Pictured left to right top row: Brian Maas, CNCDA; John Sackrison, OCADA; Dick Hsu, DCH Automotive Group; Frank Romano, Wilson Automotive
Group; AJ D’ Amato, Newport Lexus; Mike D’Amato, Tustin Lexus; Vikki Murphy, Wilson Automotive Group
Pictured left to right bottom row: Eric Phillips, Phillips Mazda; Assemblyman Don Wagner; Linda Rose Mongell, Tustin Nissan; Mark Parkinson, Tustin
Buick GMC; Glenn Kashima, Tustin Toyota; Scott Voigts, 70th Assembly District.
SUMMER 2011
11
We act as if what we do makes a
difference, because it does.
Dealer Benefit Solutions
With PenBen you can rest assured that you have a trusted,
experienced benefits leader behind you.
Ron Joy

[email protected]
Alison McCallum
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[email protected]
Mark Pattinson
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[email protected]
Eric Trost
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[email protected]
Serving Southern California employers for over 25 years.
23716 Birtcher Drive
Lake Forest, CA 92630
888-661-0700
www.penben.com
OCADA 47th Annual Golf Tournament
T
his year’s 47th Annual OCADA Golf Tournament was the best one
yet! Players and guests enjoyed a beautiful day of golf on the Mesa
Verde Golf Course, while enjoying the many exciting activities and
contests on the holes provided by the sponsors. This year’s winning
scramble team was from Saab of Santa Ana with a score of 60.
The evening festivities continued with dinner, awards and this
year in honor of our military, a vehicle was donated to Operation
Homefront on behalf of the OCADA members. In typical fashion,
our emcee and chairman, Al Parajeckas, kept the crowd laughing
as he announced the tournament winners and raffle prize winners.
It was a great day had by all!
14 OC Dealer WWW.OCADA.ORG
2011 Golf Winners
3rd Place ...........................................................................62 Card-off
Cameron Truhn, Jerry Gonzalez, Alan Hurst, Larry Smith
2nd Place......................................................................................... 60
Greg Froneck, Steve Gordon, Bob Koontz, Alex Trachtman
1st Place .......................................................................................... 58
Jeff Linklater, James Renick, Leigh Silver, Nick Telliard
Scramble – Dealer Flight
3rd Place ..........................................................................................62
Gary Alred, Bill Bailey, Paul Lunsford, Craig Whetter
2nd Place......................................................................................... 60
Sven Wood, Al Parajeckas, Mike Lake, Donnie Crevier
1st Place ............................................................................60 Card-off
Steve Coleman, Alex Grivich, Bill Lowrey, Steve Parajeckas
Longest Drive – Associate/Guest ...............................Brian Striff
Longest Drive – Ladies ...................................... Cynthia Ferguson
Straightest Drive – Dealer .............................................. Jon Gray
Closest to the Pin – Dealer ...........................................KC Heidler
Honest Duffer Award ...................... Oscar Bakhtiari; Henry Nodal;
Ken Dowling; Darin Gonzalez
SUMMER 2011
15
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OCADA Donates a Vehicle to Operation Homefront
T
he Orange County Automobile Dealers Association was proud to donate a Dodge Caravan
to Operation Homefront at the OCADA Annual Golf Tournament on June 6, 2011. Operation
Homefront is a nonprofit that provides emergency
financial and other assistance to the families of
our service members and wounded warriors.
Seven members of our nation’s military and
representatives from Operation Homefront
attended the evening festivities and accepted the
generous donation. “The car donation stemmed
from the fact that the date of our tournament was
the anniversary of D-Day and it would be great to
give back to our military in appreciation for their
selfless devotion to the protection of America,”
stated Jon Gray, Board President. Q
Welcomes Our New Associate Members
Cobalt/ADP Dealer Services
Cobalt Group is an automotive marketing service whose mission has been to help automobile dealers and manufacturers
increase their retailing effectiveness and profits. ADP Dealer Services is a division of Automatic Data Processing, Inc.
that provides integrated technology solutions to dealers. Contact Violet Ward at (949) 370-0352
Fanggle.com
Fanggle with Appmobile is a mobile and social media application that enables service appointments, notifications,
coupons, allows for marketing of new/used car inventory, test drive appointments, gas finder, video, and messaging.
Contact Edward Baryluk at (877) 403-2644
South Bay/Long Beach Group – Press Telegram
South Bay/Long Beach Group is a division of the Los Angeles Newspaper Group and a multimedia platform serving
the greater South Bay footprint. Contact Rick Langley at (562) 499-1217
Turn-Key Events
Turn-Key Events provides advertising tools such as sales events to auto dealerships. They also provide their internet
lead solution that uses artificial intelligence to ensure 100% effective lead communication, called AVA. Their AVA
product has been a recognized and awarded product at dealer conventions such as NADA and Digital Dealer this
past year. Contact Drake Baerresen at (866) 476-7748
SUMMER 2011
17
18 OC Dealer WWW.OCADA.ORG
T
Why is it Important to
Contribute to the PAC?
he OCADA-PAC allows us to have a much greater impact by collectively contributing to pro-dealer incumbents and
candidates throughout the election cycle. No individual dealer has the time or resources to effectively do this; that’s
why the OCADA-PAC exists.
“Decisions are being made
that affect our business and our
industry. It is imperative that
we participate in the political
process.”
OCADA PAC Member Benefits:
 Recommend which candidates receive PAC contributions.
 Personally deliver PAC check to candidates.
 Be recognized with every contribution made to the candidates.
The OCADA-PAC is one of the best investments you can make in
your business. Join your fellow dealers and support the OCACA-PAC.
— Mitch Allen, Allen Cadillac GMC Hyundai
OCADA-PAC...An Investment in Your Business
Contact John Sackrison @ 949-428-5050 to Contribute.
2011 OCADA-PAC Honor Roll
Chairman’s Club
Cliff Allen
Steve Coleman
Dave Delillo
AJ D’Amato
Mike D’Amato
Joe Ehlert
Rick Evans
Jon Gray
Matt Gunderson
Bruce Hamlin
Roberta Hardin
Roger Hogan
Dick Hsu
Paul Lunsford
Bob Miller
John Oh
Al Parajeckas
John Patterson
Bill Piercey
RJ Romero
William Selman
David Simpson
Paul Swim
Jeff Voechting
David Wilson
President’s Club
Jim Graham
Regular Donor
Mark Dershem
Jim Miller
Mark Parkinson
Theodore Robins, Jr.
Join the OCADA-PAC Honor Roll and make your contribution today!
SUMMER 2011
19
GET TO KNOW YOUR LEGISLATOR:
CONGRESSMAN GARY MILLER
42nd Congressional
District:
Orange County Cities: Anaheim,
Brea, La Habra, Mission Viejo, Placentia,
Rancho Santa Margarita, Yorba Linda and
other cities outside of Orange County.
Committee Memberships:
 House Financial Services Committee
 House Transportation and
Infrastructure Committee
Personal:
Mr. Miller resides in the city of
Diamond Bar with his wife Cathy.
Biography:
Cong re ssm a n Ga r y G. M i l le r
was first elected to the U.S. House
of Representatives in 1998, and is
proud to represent California’s 42nd
Congressional District. Mr. Miller
is a sen ior member of the House
Financial Services Committee, which
oversees the United States’ banks,
stock exchanges, real estate market and
insurance industry. He is Chairman of
the Subcommittee on International
Monetary Policy and Trade, which
oversees i nter nat iona l moneta r y
policy and international fi nancial and
monetary organizations. Mr. Miller
is also a senior member of the House
Transportation and Infrastructure
Committee, which oversees the nation’s
20 OC Dealer WWW.OCADA.ORG
highways, railroads, airports and water
infrastructure. As a member of these
committees and a former business owner,
Mr. Miller brings real-world experience
to address the transportation, water and
housing needs of the 42nd District.
In add ition, he is work i ng to
reduce the United States’ debt, create
a fairer tax system, improve access to
healthcare, ensure students receive a
quality education, and stop the flow
of illegal immigrants into our country.
Mr. Mi l ler is chair man of the
Building a Better America Caucus, a
congressional organization promoting
quality growth. He is also a member
of the Republican leadership team as
assistant whip.
Mr. Miller was born in Arkansas,
but grew up in Whittier, California.
In his early twenties, he founded the G.
Miller Development Company and met
his wife, Cathy. They married in 1972
and raised three sons and one daughter.
As his family grew, so did his business.
G. Miller Development expanded from
building single family and custom
homes to eventually developing planned
communities.
In 1982, Mr. Miller was asked to
serve on the board of directors of Sonrise
Christian School. His service to the
community was expanded in 1988 when
he was appointed to the Diamond Bar
Municipal Advisory Council. Upon the
incorporation of the City of Diamond
Bar in 1989, Gary Miller was elected to
its first city council and served as Mayor
in 1992.
O n M ay 16 , 1 9 95, M r. M i l le r
was elected to the California State
A s s e m bl y. T h e r e h e s e r v e d a s
chairman of the Budget Committee
and the Ban k ing and Finance
Committee, as well as vice chairman
of the Transportation Committee. His
d i s t i n g u i s h e d C a l i fo r n i a St a t e
Assembly career is highlighted by
24 bills signed into law, successfully
ne got i at i ng f u nd i ng of t he f i rst
class size reduction program, and
a balanced budget that reduced the
business tax rate to 1973 levels while
maintaining a $310 million reserve.
District Office Contact
Information:
Address: 1800 E. Lambert Road;
Suite 150, Brea, CA 92821
Phone: 714-257-1142
Fax: 714-257-9242
Email: [email protected]
Website: http://miller.house.gov
Steering your company from dealership
floor plan expansion to retail solutions.
Opportunity at every step.
Success as a dealer requires a solid strategy and a sound effort. That’s why our Orange County client managers work closely
with you every mile of the way. With more than 75 years of industry experience, we offer proven financial strategies and
the full range of dealer-dedicated solutions: from floor plan financing, real estate and acquisition financing to retail credit
solutions. All with one goal, helping you meet the needs of today and your plans for tomorrow.
To learn more, contact a Bank of America Merrill Lynch Dealer Financial Services representative:
Kelly Scarff
Market Executive
1.714.792.9863
“Bank of America Merrill Lynch” is the marketing name for the global banking and global markets businesses of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates of
Bank of America Corporation, including Bank of America, N.A., member FDIC. Securities, strategic advisory, and other investment banking activities are performed globally by investment banking affiliates of Bank of America Corporation (“Investment Banking
Affiliates”), including, in the United States, Banc of America Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated, which are both registered broker-dealers and members of FINRA and SIPC, and, in other jurisdictions, locally registered entities.
Investment products offered by Investment Banking Affiliates: Are Not FDIC Insured * May Lose Value * Are Not Bank Guaranteed. ©2010 Bank of America Corporation.
AN UPDATE FROM CAPITOL HILL
BY
CONGRESSMAN JOHN CAMPBELL
Jobs and the
Economy
T
hings are not so good out there.
The unemployment rate, already
stubbornly high, climbed even
higher in May. Economists are revising
economic growth predictions downward. Housing prices continue to drop,
thereby further reducing household
wealth. Real returns on bank deposits
and Treasury Bills are negative. The
dollar is dropping. Gas prices are up,
inflation is up. There are some bright
spots, certainly, but the overall picture
is that of stagnation. Unfortunately,
none of this is a great surprise given
what the government has been doing of
late. We are printing money and artificially holding down interest rates to
try and spur recovery. But, this is creating those negative real (after inflation)
interest rates, which are distorting
capital flows. Most of the country’s
tax policies expire in 18 months, so
no one can do any long-term investment planning about taxes with any
certainty. The government is retarding
the development of almost all forms
of economical energy (oil, gas, coal,
nuclear), while subsidizing expensive
wind and solar. We continue to run record deficits, which divert capital from
other more productive uses and create
the massive public debt overhang that
retards growth. In almost every part
of the executive branch, increased
regulatory requirements and costs are
driving foreign investment and jobs out
22 OC Dealer WWW.OCADA.ORG
of America. The causes for this exodus
range from ObamaCare and the Dodd/
Frank overregulation to the FDA, FCC,
and just about every other agency with
a federal acronym.
So, what should we do? First of all,
there is no one “silver bullet”. No one
action will start the economy on a path
to more robust growth and job creation.
Instead, we need to do a lot of things.
Things that will give everyone in and
out of this country confidence as to our
future path such that they build and
create and hire again. If I were King
of the Forest (not Queen, not Duke, not
Earl - Wizard of Oz reference for those of you
who don’t know), here is what I would do
right now:
1. Enact a spending reduction plan,
which I think should be even more
aggressive and work more quickly
than the Paul Ryan Budget plan,
that puts the country on a firm and
credible path to a balanced budget
in less than 10 years. This should
be done with spending reductions,
entitlement reform, and revenue
growth through economic growth,
not tax increases.
2. Create a new long-term tax plan that
has no expiration date. This should
include flatter, lower tax rates with
fewer deductions, similar to the
“Optional Simplified Tax” which Paul
Ryan (R-WI), Jeb Hensarling (R-TX)
and I have introduced for several
congresses now. Also, eliminate
the death tax and the tax on U.S.
corporations that repatriate money
earned overseas.
3. Go on a domestic energy development
binge as a part of an energy policy
plan to make us energy independent.
Take advantage of the many untapped
oil reserves we have all over this
country and offshore. Do the same
with natural gas and coal and nuclear,
as well as some alternatives, and
eliminate/streamline the regulatory
requirements to make this happen.
Doing so should lower energy prices
immediately because markets are
anticipatory. But, even if it didn’t, we
would create a huge number of high
paying new jobs right now.
4. Create a U.S. manufacturing policy
built on special depreciation rates
and free trade agreements and
relaxed labor regulations in order to
encourage domestic manufacturing
of complex devices. We are unlikely
to manufacture many rubber toys in
this country, but we can and should
continue to make complicated things
here and have the good paying jobs
that come with them.
5. Repeal ObamaCare and major parts
of Dodd/Frank, and ease regulatory
burdens across the economy to remove
impediments to entrepreneurship,
new products, and new ideas.
6. Pass the Housing Finance Reform Bill that I am championing
in order to give certainty to the future of 30-year home
fi nancing. The economy will never have robust growth
without the housing market leading the way. My bill can
jump-start that needed growth.
7. Pass a number of specific bills to remove impediments and
uncertainties, and create opportunities in many segments
of the economy. This list includes things like reforming
the FDA, rewriting the patent system, and increasing
the number of H-1B visas, so that highly talented foreign
individuals with advanced degrees from U.S. universities
can stay and create new products and ideas here instead of
doing it in some other country.
8. Put the nation on a path to universal, free internet Wi-Fi
accessibility from coast to coast. The availability of free
internet access will drive growth and jobs as the tech sector
creates new products to utilize this capability. This is the
technology equivalent of the interstate highway system.
We can also create a new round of public infrastructure
construction and rehabilitation by attracting private
sector money through a new form of Infrastructure Master
Limited Partnership.
agreement. Note that nothing I have presented will create
any government jobs. We have too many of those. We need
private sector job creation. And that can only happen when
the private sector can increase productivity, create new
markets, and new products and new industries. Right now,
the government is very inward looking. Everything the
government does is about the government, how to make
itself bigger, more powerful, and more controlling. This
plan is the opposite. It is about getting the government
out of the way in some cases, and having the government
create an environment in which the private sector has new
opportunities for growth in other cases. Q
I remain respectfully,
Congressman John Campbell
OK, so that’s a start. I could actually go on. There is
no shortage of ideas, just a shortage of leadership and
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Labor Law – Management
2050 Main Street • Suite 1000 • Irvine, CA 92614
phone: (949) 851-2424 • toll free: (866) 424-2168 • fax: (949) 851-0152
www.laborlawyers.com
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SUMMER 2011
23
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24 OC Dealer WWW.OCADA.ORG
Facility
Improvements
BY ALTON G. BURKHALTER AND ROS M. LOCKWOOD
W
hether a manufacturer can
force a dealer to invest in costly
facility upgrades as part of the
manufacturers’ branding program
is a serious question many dealers
wrestle with. Manufacturers such
as Mercedes-Benz with its Autohaus
program and Chrysler with its Millennium Arch and related facility
improvements have, in recent years,
exerted tremendous pressure on their
dealers to agree to costly renovations.
In California, however, no manufacturer can force a dealer to agree to
these facility upgrades. In fact, Vehicle
Code section 11713.13 unequivocally
prohibits a manufacturer “by contract
or otherwise” from requiring dealers to
materially alter or expand their facilities unless the manufacturer can prove
it is “reasonable in light of all existing
circumstances, including economic
conditions.”
Despite the clarity of California
law, however, we have seen numerous
instances of manufacturers
at te mpt i ng to st rong-a r m t he i r
dealers into agreeing to sign facility
improvement addendums. In these
situations manufacturers claim the
dealers are obligated to agree to the
improvements under the existing
dea ler ag reements. More of te n
than not, the manufacturers rely
upon vaguely worded provisions in
the underlying dea ler agreement
which require the dealer to provide
“satisfactor y” or “adequate”
faci l ities that are comparable to
what competitors a re usi ng. In
these circumstances many dealers
feel obligated to sign an addendum
requiring a facility upgrade even if
the improvements do not make good
business sense.
The bottom line is that dealers
should not be reluctant to remind
manufact urers that dea lers have
for m id able protect ions under
California law. Each manufacturer
has its own agenda and program
relating to facility improvements
and many of these manufacturers
tr y to entice dea lers to agree to
facility renovations with what, on
the surface, appear to be attractive
incentives. However, it is worth
consulting a law yer experienced
with the sensitive nature of dealer/
manufacturer relationships before
any dealer agrees to sign on to a
manufacturer’s facility improvement
program. Often times, impulsively
accepting manufacturer incentive
and agreeing to facility upgrades can
trigger onerous consequences. On the
other hand, thoughtful and deliberate
negotiations are often all it takes to
produce a facility improvement plan
beneficial to both the manufacturer
and the dealer. Q
Alton Burkhalter is the founding partner
of Burkhalter Kessler Clement & George,
LLP. Mr. Burkhalter has extensive
experience representing dealers in
both negotiations and litigation with
major manufacturers and has never lost
a jury trial.
Ros M. Lockwood is a senior associate
with Burkhalter Kessler Clement &
George, LLP, and a seasoned trial lawyer.
Ms. Lockwood, along with Mr. Burkhalter,
has represented many dealers in both
civil trial cases as well as protests before
the New Motor Vehicle Board.
SUMMER 2011
25
Interes ng
OC Auto Fact:
OC Auto Dealers
collected Sales Tax
revenue of $396 million.
 On average, each Orange County
Dealership collected more than $3.3
million in sales tax in 2010.
 $51 million went directly to Orange
County Cities.
Celly Services, Inc.
Helping Dealers Comply with EPA/OSHA Regulations for 20 Years
 Hazardous Waste Management
 Illness & Injury Prevention Program
 Respiratory Protection Program
 Safety Inspection & Training
 Hazmat Release Response Planning
 Hazardous Waste Cost Recovery
 Phase I Environmental Assessment
 Newsletters on Emerging EPS/OSHA Issues
 Spill Prevention, Control, Countermeasures Plan
 Representation in OSHA Enforcement Cases
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XLERIZIVFIJSVI[MXLEGYWXSQFVERHIH
QSFMPIWQEVXTLSRIETT
Sam Celly, MS JD
Registered Environmental Assessor
Certified Safety Professional
Certified Safety Professional & Registered Environmental Assessor
Member OCADA, SMCDA, AICHE & AIHA
444 West Ocean Blvd., Suite 1402
Long Beach, CA 90802-4517
Phone: 562.704.4000 • Fax: 562.704.5000
Email: [email protected]
26 OC Dealer WWW.OCADA.ORG
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BY FANGGLE
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