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An Interview with
NCDA Board Chairman
J.P. Paynter
page 10
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C hairman’s Letter
Dear Dealer Members,
T
he automotive industry is three and onehalf years into an economic recovery that
would have seemed unachievable in 2009.
International and domestic brands continue to
attract buyers while an aging vehicle fleet is
keeping service bays busy. Credit terms have
never been more favorable for buyers, even those
with less-than perfect credit. All told, there are
many reasons for auto dealers to feel positive
again about the industry. This is especially true
in San Diego County where new vehicle sales
have consistently exceeded national averages
both monthly and annually.
If you have not already done so, take a few
moments and review the 2013 Economic Impact
Report you received last month from the New Car
Dealers Association® San Diego County (NCDA).
I believe you will find it extremely informative
as it highlights the enormous financial impact
dealers have on our regional economy. You can
also find it on the NCDA website home page
under Industry Reports.
As your new NCDA Board of Directors
Chairman, I look forward to working with my
dealership counterparts and the NCDA staff
over the next 12 months on a wide range of
4
San Diego Dealer
issues. In March, a number of dealers traveled
to Sacramento to meet with Assemblymembers
– many of whom were newly elected last
November – as well as the state Senate delegation. If you have not had a chance to meet the
Assemblymember or Senator that represents
your district, I strongly encourage you to do so.
While the NCDA has shared the 2013 Economic
Impact Report with them, it is even more meaningful for legislators to hear directly from you.
Collectively, franchised new car and light truck
dealers comprise one of the largest employers
in the county. We provide high-paying jobs and
the vast majority offer access to health benefits
to both their employees and their families. These
jobs stay in San Diego County and the tax dollars they generate remain in the county as well.
Additionally, our dealers spent over $185 million
with other California businesses, further adding
to the state’s economic recovery.
Later this summer, the California New Car
Dealers Association (CNCDA) will be conducting
seminars to address the impacts of the Affordable
Care Act that take effect in 2014. Please be
looking for more information from CNCDA on
this seminar series in the near future.
On a lighter note, I’d like to thank the sponsors
and participants from this year’s highly-successful
44th Annual Golf Tournament. Once again, the
tournament was a sell-out and thanks to our
generous sponsors, there were delicious meals
and fabulous raffle prizes to go along with a
great day of golf.
Again, I look forward to serving as Chairman
of the Board and working with Dealer Members
and the NCDA staff during the next 12 months.
Sincerely,
J.P. Paynter
Chairman, NCDA Board of Directors
New Car Dealers
Association®
San Diego County
10065 Mesa Ridge Court
San Diego, CA 92121-2916
Tel: (858) 550-0080
Fax: (858) 550-9537
www.ncda.com
NCDA Board of Directors
Board Officers
Bill Cumming
C h airman
J.P. Paynter
V ice C h airman
David Wolfson
S ecretary / T reas u rer
John Stall
Past C h airman
Board Members
Rick Blakemore
Tom Brecht
Pamela Burger
Ray Burns
Paul F. Dyke
Jim Fornaca
Dave Grundstrom
D.J. Heller
John McCallan
$
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$ & 3 5 * ' * & % 1 6 # - * $ " $ $ 0 6 / 5" / 5 4
Letter from the President
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Dear Dealer Members,
O
nce again, the measurable economic
impact from San Diego County’s franchised new car dealers is borne out in
the 2013 Economic Impact Report you received
last month. As our new Chairman of the Board,
J.P. Paynter (General Manager at Hoehn Acura)
points out in his letter, our dealers are major
regional employers, providing solid employment
and health benefits that few industries can
match. Through the first quarter of 2013, sales
in San Diego County were 10 percent higher
versus the same period in 2012.
It is interesting to note that as auto sales have
increased, other parts of the regional economy
have begun to improve as well. Unemployment
in the county continues to decline in 2013 and
the residential real estate industry appears to
be moving in a positive direction as well. While
automotive sales cannot take all the credit, the
fact remains this industry emerged faster than
many others from the recession and has become
a positive benchmark for San Diego County’s
economic recovery.
I would like to echo J.P.’s suggestion that
you take time to meet the Assemblymember
and Senator in your district. There are several
new faces in the Assembly this term from San
Diego County and most of them understand
the important role your dealership plays in
their district’s short- and long-term economic
health. Additionally, your continued support of
the NCDA PAC is both appreciated and needed
to ensure we can support those elected officials
who understand the importance of your business
to the region’s economy.
Additionally, I would like to thank the sponsors
and participants from this year’s 44th Annual Golf
Tournament. This event would not be possible
without the generosity of our sponsors, the 144
golf participants and those who join them for
dinner and raffle prize drawings.
As you might imagine, the NCDA staff is
already hard at work on this year’s San Diego
International Auto Show. The Show is returning
to a five-day format, opening on January 1, 2014
and running through Sunday, January 5, 2014.
Last year’s show was a tremendous success
thanks in part to our Dealer Members who
participated. We look forward to your support
again this year along with our manufacturer
partners and to another outstanding show.
Best Regards,
Dean Mansfield
President, NCDA
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Parke Guptill & Company, LLP.......... page 5
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XEWT CHANNEL 12.................................. page 7
LSL Certified Public
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lslcpas.com
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Balboa Thrift and Loan.................... page 9
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TFW CONSTRUCTION /
DEVELOPMENT INC................................page 13
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Clear Channel....................................page 13
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R.O.I BOT.................................................page 15
ROI-BOT.com
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Sharp Health Plan............................page 20
sharphealthplan.com
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Rogers, Clem & Company.................page 21
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CELLY SERVICES, INC.............................page 23
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CONSIDINE & CONSIDINE.....................page 23
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sandiego6.com
Fisher & Phillips, LLP.........................page 29
laborlawyers.com
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PenBen...................................................page 31
penben.com
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LINCOLN FINANCIAL MEDIA
COMPANY OF CALIFORNIA ..................page 31
Moss Adams, LLP.................................page 33
mossadams.com/dealerservices
858-627-1448
San diego radio broadcasters
association.........................................page 38
sandiegoradio.com
858-350-8854
NCDA STAFF
Kevin Leap
DIRECTOR, SAN DIEGO
INTERNATIONAL AUTO SHOW
Amy Foley
Director of Marketing &
Media Relations
Linda Scarbrough
Administrative Assistant
Lisa Berry
Receptionist
6
San Diego Dealer
© 2013 New Car Dealers Association® San Diego County (NCDA) | The newsLINK Group, LLC. All rights reserved. San
Diego Dealer is published four times each year by The newsLINK Group, LLC for the NCDA and is the official publication
for this association. The information contained in this publication is intended to provide general information for review
and consideration. The contents do not constitute legal advice and should not be relied on as such. If you need legal
advice or assistance, it is strongly recommended that you contact an attorney as to your specific circumstances. The
statements and opinions expressed in this publication are those of the individual authors and do not necessarily
represent the views of the NCDA, its board of directors, or the publisher. Likewise, the appearance of advertisements
within this publication does not constitute an endorsement or recommendation of any product or serviced advertised.
San Diego Dealer is a collective work and as such some articles are submitted by authors that are independent of the
NCDA. While San Diego Dealer encourages a first print policy, in cases where this is not possible, every effort has been
made to comply with any known reprint guidelines or restrictions. Content may not be reproduced or reprinted without
prior written permission. For further information, please contact the publisher at: 855-747-4003.
Callahan, Thompson,
Sherman & Caudill LLP.....................page 39
ctsclaw.com
619-232-5700
Quintex Mobile Electronics......... page 40
qtxmobile.com
760-432-6333
MONDAY FRIDAY
Contents
4 Chairman’s Letter
22
6 Letter From the President
25
8 Did You Know?
26
Interview with NCDA Board Chairman
10 An
J.P. Paynter
28
12 San Diego County Legislator Toni Atkins
32
NCDA Sponsors High School Team at the
14 National Automotive Tech Competition
34
Automotive Technicians – Experience
16 through Internships
j . p . paynter
D ean M ansfield
S id T obiason
S h a u na G u errero
S h a u na G u errero
Promoting Safety & Preventing
Accidents
sam celly
CNCDA Scholarship Foundation
jennifer aragon
Dealers Provide Support to Officers
Combating Vehicle Theft
lance roberts
Health Care Reform: To Pay or Play
c h ris h offman
Stay On Course with Management
Succession
sid tobiason
San Diego Auto Outlook
melissa woods
to Prevent Vehicle Theft at Your
18 How
Dealership
By Sid Tobiason
DidYou Know...
jo h n raber
8
San Diego Dealer
t regional
continued to be a significan
car and light truck dealers
new
e year.
sed
chi
utiv
sec
fran
’s
con
d
nty
thir
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San Diego
s increased for the
new and pre-owned vehicle
of
es
2011.
Sal
to
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ed
201
par
in
com
tor
as
era
economic gen
than $1.67 billion
billion, an increase of more
6
$8.
to
sed
rea
inc
s
sale
Total dealership
their employee count in 2012 to over 13,000 fullOnce again, San Diego County dealers increased
of dealers provided health insurance to employees
and part-time employees. Ninety-eight percent
n
$641 million in payroll and more than $14 millio
and their families. Additionally, dealerships paid
in workers’ compensation premiums in 2012.
extensive renovations, creating additional
Additionally, a number of dealerships began
in San Diego County. Overall, San Diego County’s
employment opportunities for other businesses
other California businesses totaling $185 million,
franchised new car dealers made purchases from
a 16 percent increase vs. 2011.
organizations.
ort a wide range of charities and civic
Collectively, NCDA Dealer Members supp
ent as compared
$2.75 million – an increase of 14 perc
In 2012, dealers contributed nearly
to 2011.
franchised new
ribution to the region’s economy by
Another significant economic cont
5 million to
$85.
ly
near
t
spen
bers
, NCDA Dealer Mem
car dealers is advertising. Last year
r.
ase of $10.5 million vs. the year prio
advertise their dealerships, an incre
the home page.
m in the Industry Reports section on
a.co
ncd
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e
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the
A copy of
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Issue
Tem ec u l a Va l l ey ( 9 Spring
51)30
4 - 22013
7 2 89
An Interview with NCDA Board Chairman
J.P. Paynter
By Shauna Guerrero
J. P.
Paynter becomes the Chairman of the Board of Directors for the New Car Dealers
Association® San Diego County beginning in June 2013. J. P. is the General Manager at Hoehn Acura
and has been with Hoehn Motors since 2000.
A lot of dealers get into the business by chance or by default. Did
you always aspire to be part of the automotive industry?
I started selling cars in 1973 at a Buick dealership in a suburb of
Chicago. That was 40 years ago. It was a natural fit from day one and I’ve
never looked back.
Are there any specific individuals that had a major impact on your
career?
My father, who passed last year, was a physician. He believed “a car
was simply a means of transportation to get you from point A to point
B.” Somehow I just knew there was more to it. I found out there was.
What's the most rewarding part of your career?
It’s all about working with people, and I absolutely love everything I
do. I enjoy coaching, training, mentoring and helping people develop
their careers within our industry. I’m privileged to work with a great
10
San Diego Dealer
team of people that do an outstanding job of helping people with their
automotive needs; whether in sales, service or parts.
What do you see as the dominant trends for the industry in the next
5-10 years?
Our industry is changing daily and we have a number of issues challenging our industry. We have an aging vehicle fleet. The average vehicle
has been on the road for more than 10 years, providing our industry
both opportunities and challenges. Pent up demand in the marketplace,
low interest rates and loosening of credit requirements create great
opportunities.
The economic downturn, however, has given us serious unemployment
issues and credit challenges that we will be looking to solve for a number
of years to come. With the economic downturn came a dramatic drop
in new vehicle sales that we are still recovering from. This has led to a
shortage of clean, late model, low mileage cars on the market.
After experiencing and surviving the industry's most challenging
economic period in its history a few years ago, what lessons did
you learn?
We certainly have experienced very trying times these past five years
that have provided us ample opportunities to practice our core principals.
I’m fortunate to work for a great organization that believes and invests in
its people. I was provided with the incredible opportunity to attend the
NADA Dealer Academy in McLean, VA. It’s about having the right people,
in the right positions, following the right processes and implementing
sound business practices every day. Anyone can be successful and make
money when times are good and you’re selling a winning product. We
had many years of record sales and profits. But when times are tough,
it’s the little things you don’t have to do, that make the difference when
it’s too late to do anything else. The financial crisis taught me to take a
proactive approach rather than a reactive one, to roll up my sleeves, and
closely monitor and manage my expenses.
What inspired you to serve as a leader in the Association?
This business has been good to me. I believe that being of service is
my personal responsibility. You can be part of the problem or part of the
solution. I have always believed in being part of the process of identifying
the problem and then finding and implementing the solution. I have
always wanted to know more about the organizational makeup of NCDA
and what I could do to make a difference.
What do you think makes the San Diego County automotive market
different than other markets around the state?
We are fortunate to live in one of the most beautiful parts of the state.
San Diego County is unique in many ways. The franchised new car dealers
continue to be a significant economic factor throughout the county. We
continue to be one of the largest sources of employment in all areas within
the county. We collect and pay hundreds of millions of dollars in taxes
and fees. We are also very fortunate to have several military bases within
our county. We support and value our military families for their service.
We are secluded from areas to our north because of Camp Pendleton,
creating a natural border from Orange and Riverside Counties. All of this
provides us with many opportunities for growth and allows us to keep
the business within San Diego County.
Are you involved in any civic or charitable organizations?
I serve as President of the San Diego Acura Dealers Association,
Chairman of the Carlsbad Car Country Association and head a Task Force
that has been working with the City of Carlsbad on a variety of changes
to Carlsbad Car Country. I also serve on various committees and boards
of non-profit organizations in my personal life.
I have walked through some difficult times in my life and have always
had people who have been there for me. I have been given many gifts
in my life and believe in giving back and helping others. It’s my personal
responsibility. My wife and I are both involved in service to our community
in a variety of ways.
What do you think makes membership in the NCDA beneficial?
The NCDA does so many things for our dealer members. Keeping the
dealers informed of pending legislative changes to our industry, providing
guidance on the many legal issues facing our dealers, providing timely
answers on matters of urgent importance, as well as providing necessary
training and seminars. We have a dedicated staff at the NCDA from Dean
to Amy, Kevin, Linda and Lisa. We are fortunate indeed to have such a
great staff.
Describe your all-time favorite vehicle (it can be one you've owned,
or something on your wish list)? Oh, and what are you driving today?
My favorite car of all time is the Acura NSX. As a matter of fact, I own
one of the last NSXs ever produced; a 2004 NSX-T, shown here in Yellow
on Yellow.
Describe your background. What did you study in college?
I studied business administration at Southern Illinois University.
Have you always lived in California?
No, I’m originally from Arlington Heights, Illinois, a suburb of Chicago. I
moved to San Diego in 1976. Two of the first people I met when I moved
to California were Bill and Bob Hoehn. That was 37 years ago. Today, I
feel privileged to be a part of their organization and to manage one of
their dealerships.
Tell us about your family.
My wife Bette and I live in the Carlsbad community of Aviara. We’ve
been married for 13 years. Bette, a retired teacher, continues to serve
in the classroom, volunteers as a CASA with Voices for Children, and is
President of our HOA. My son Mark is an aeronautical engineer and his
wife Nicole is a teacher. They have been blessed with their first child; my
first granddaughter. Bette has three daughters, two granddaughters,
and a great-granddaughter.
What's your favorite way to spend your free time?
I love to spend time with family and friends. My wife and I enjoy playing
golf while vacationing in Kauai and Palm Desert. I also enjoy cycling and
photography.
Spring Issue 2013 11
San Diego
County Legislator
Toni
Atkins
Assembly Majority Leader
78th Assembly District
Solana Beach, Del Mar, La Jolla, San Diego, Pacific Beach, Mission Beach,
Coronado & Imperial Beach
Committee Membership
Committee on Agriculture
Committee on Health
Committee on Housing and Community Development
Committee on Veterans Affairs
Assembly Select Committee on Homelessness (Chair)
Joint Legislative Audit Committee
Joint Legislative Rules Committee
Assembly Select Committees on Biotechnology, Coastal Protection, Ports,
Sea Level Rise and the Economy
Personal
Toni currently lives in the South Park/Golden Hill community of San
Diego with her spouse Jennifer LeSar and their dogs, Haley and Joey.
Quote
I believe in the power of numbers. When you join together with others
who share your goals, suddenly you go from powerless to powerful.
Legislative Priorities
Assembly member Atkins’ priorities are economic development and jobs,
affordable housing and preventing homelessness, services for veterans and
retaining California’s strong military presence, access to affordable quality
healthcare, protecting the environment, and transparent government.
Biography
Assemblymember Toni Atkins was first elected to the California State
Assembly in November 2010 to represent the 76th Assembly District. In
2012, she was re-elected to represent the newly redrawn 78th Assembly
District which includes the coastal San Diego communities from Imperial
Beach, along the Mexican border, north to Solana Beach, as well as most
of central San Diego.
12
San Diego Dealer
Atkins previously served as a member of the San Diego City Council,
a position she held from 2000-2008. During her tenure on the Council,
Ms. Atkins served as a member of a number of the Council's policy issue
committees and as Acting Mayor in 2005 when the previous Mayor
resigned. Prior to her election, Assemblymember Atkins also served on
the staff of former Councilmember Christine Kehoe, who was later elected
to both the State Assembly and Senate.
Assemblymember Atkins has battled for affordable housing throughout
her public career, leading the charge to enact the nation's first Housing
State of Emergency in San Diego. She also worked to create the first
inclusionary housing policy and secured $55 million in housing funds for
the construction of new affordable housing units throughout San Diego.
Assemblymember Atkins' other priorities include encouraging economic
development, health care, and issues affecting veterans. Issues of concern
to the lesbian, gay, bisexual and transgender (LGBT) community have also
been a high priority for Toni, as she represents the highest concentration
of LGBT residents in San Diego.
Atkins serves on the Housing and Community Development, Health,
Veterans, Agriculture and Joint Legislative Audit Committees. She has also
been appointed by the Assembly Speaker as the Assembly Majority Leader,
an important leadership position and the Assembly Redevelopment
Working Group. She is chair of the Assembly Select Committee on
Homelessness and represents the Assembly on the Ocean Protection
Council and the California Historic and Cultural Endowment.
Assemblymember Atkins is originally from southwestern Virginia and
graduated from Emory & Henry College with a degree in political science
with a focus on community organizing. In July 2004, she completed the
senior executive program at the prestigious John F. Kennedy School of
Government at Harvard University.
District Office
2445 5th Avenue, Suite 401, San Diego, CA 92101
Tel: (619) 645-3090 / Fax: (619) 645-3094
Website: http://asmdc.org/members/a78/
www.tfwconstruction.com
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John Preston – VP of Automotive (Left) | Ted Weeks III – TFW Construction Founder (Right)
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Ted Weeks III, CEO (858)759-1223
John Preston, VP (619) 318-6911
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NCDA Sponsors
High School Team at the National Automotive Tech Competition
By Shauna Guerrero
C
ongratulations to Ramona High School seniors, Andrew Hankins who generously provided the practice vehicle. Without their donation
and Tyler Pavlick, and their instructor, Mike Saavedra, who (for the second year in row), the students would not have been able to
recently competed in the prestigious National Automotive familiarize themselves with the car.
Technology Competition in New York. The New Car Dealers
“Ramona has one of the highest rated local auto programs and we
Association® San Diego County (NCDA) sponsored the Ramona High School have worked with a number of their graduating students,” said Axford.
team. The competition was held during the 2013 New York International “We want to do our part in supporting a program that is working hard
Auto Show from April 1-3. Of the 30 teams competing from around the to build up students who have a passion to be in our industry. The best
country, Hankins and Pavlick finished in 8th place. This is Ramona High’s automotive diagnostic and repair technicians are highly sought after and
second top 10 finish in a row.
can earn a very good wage in
Ever y year, the NCDA is
any economic condition.”
assigned the competition vehi- “Our school was heavily involved in automotive
Saavedra, the automotive
cle at the National Automobile
instructor
at Ramona High, has
competitions around the county at the time, so we
Dealers Association Annual
been training students for the
Convention. Ramona High has decided we were ready for the national competition.” competition for four years.
had the opportunity to work on
“The national competition
several different cars, including
requires a tremendous amount of dedication for both the instructor
Buick, Volvo, Mercedes-Benz and Nissan. This year, the students com- and the students,” said Saavedra. “My favorite saying is ‘Train, train, don’t
peted with a Chevrolet. The competition began with a list of problems complain.’”
and trouble-shoots for which they had three hours to properly identify
Each year, he typically has 6-8 students apply to be a part of the team.
and correct. Work stations included engine measurements, electrical, Before students are selected to compete for Ramona High, they have
emissions and so on.
to complete several lab assignments, as well as a written and hands on
In the weeks before the competition, Hankins and Pavlick had the use exam, similar to an ASE (Automotive Service Excellence) exam, to see
of the multiple award-winning Chevrolet Cruze, thanks to dealership if they have the skill set for nationals. Once the team is chosen and the
owner Joe Herold and General Manager Brian Axford of Quality Chevrolet competition vehicle is picked, Saavedra and his two students spend
14
San Diego Dealer
several hours every day preparing for New York.
“We practice many days after school, on weekends, evenings, our
whole spring break, and a lot of Saturdays and Sundays,” said Saavedra.
“I’ve been fortunate to have a good rapport with the dealers in the area,
who have allowed us to keep the practice car on campus for however
long we need it.”
Students are trained in all ASE areas, breaks, suspension, engine
performance and repair, manual and automatic transmission, and so on.
“I always try to get a former student that is
a technician for whatever car we select,” said
Saavedra. “I had one student from the first year
I taught, come back 26 years later to help. He
is now a master tech at Nissan.”
From the beginning, the team has been
sponsored by NCDA. Mike Jordan, retired
automotive teacher from Ramona High, created the first Ramona High automotive team to
compete in 1996, in which they took 7th place.
“Our school was heavily involved in automotive competitions around the county at
the time, so we decided we were ready for
the national competition,” said Jordan. “Our
students were shadowing and doing internships and getting careers
started at many different dealerships.”
Students learn many lessons while preparing for the National
Competition, not only automotive skills, but how to become successful
citizens.
“Local, state or national competition of any type sharpens the sharpest
people and it can teach life lessons to those who truly apply themselves,”
said Axford.
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Automotive Technicians:
Experience through Internships
By Melissa Woods
T
he San Diego Unified School District (SDUSD) is helping to create the automotive technicians
of tomorrow through internships with Mossy Corporation. The purpose of an internship for
the student is to experience real world exposure to a work environment that is consistent with
their career interest. It is an opportunity for the student to practice basic work skills such as being
on time and going to work on a regular basis. The internship also provides the opportunity to make
contacts in the business world.
16
Dale Snow, Fixed Operations Director at Mossy Toyota, oversees the
automotive technician internship program for Mossy Corporation and
explains why this program has been so successful.
of their challenges. Students have a daily work plan and may end up
working in any of our departments, from the call center to working with
technical service/parts associates, business office, or in rental car service.
1. Why are internships important to Mossy
dealerships?
2. What has Mossy learned through the internship
program?
We have a very strong conviction to help students as well as San Diego
Unified grow. It lets us showcase our operations with students so they
learn how a retail business operates and we also learn to cope with some
First, to be successful, we need the support of each department’s
program manager. The managers are made aware of what a valuable
resource we have in these students. By supporting the internship program
San Diego Dealer
7. How many interns have you had?
We have been doing this for approximately five or six
years and have probably had 50 students from various
locations go through internships. We also have a very
strong partnership with Miramar College and postsecondary education.
8. Have you hired any interns and are
they still employed?
Yes. Two currently – they are full time employees and
are in the process of determining what they would like
to do with their careers.
9. What positive changes have you seen
in our internship program?
they understand the significance of the time spent with students and
offering them new challenges each day. During a big parts inventory
move recently, one of our interns from Mission Bay proved to be a huge
asset and both parties benefited immensely.
3. How does it impact the Mossy dealerships?
We are pleased and rewarded to see people succeed. We’ve hired
graduates which saves us time interviewing potential candidates where
we have otherwise outsourced to look for talent. This provides a positive
impact within our community of our organization in the next generation
of employees.
4. How do you determine who will mentor an intern?
We look to managers or employees who possess the necessary skill
sets for this. A good mentor has the skill sets to get students excited and
to provide a positive experience. This affirmative partnering will be an
ongoing reflection back on our company; these students most likely will
refer friends, family, and will impact generations to come.
5. What do Mossy’s mentors say about their
experience?
The overall experience continues to be very positive. We have learned,
however, that there are some departments or jobs that are not challenging enough for the students. If they are not18 years-old, then they
cannot work on or drive vehicles so we continue to rotate them around
different departments. Mossy employs 2,000 associates within various
departments; i.e., accounting, calling centers, sales, service, reception,
plus there are lots of opportunities in the service department to work
with service advisors for customer contact experience.
6. Where are interns placed?
Students are placed in a work area in which they will use the skills and
knowledge learned in their career technical education class. The interns are
asked if they have a preference where they would like to be assigned. We
place them in various departments which provide multiple opportunities
to experience areas in which they may already have or develop an interest.
We want to ensure the students experience exciting days of high value
training, learning a variety of employment skills.
The teachers at San Diego Unified are doing an
excellent job of selecting the appropriate students.
They know what type of student to send, someone with a high level of
interest, is a pleasure to work with, and always interested in learning and
doing. Specifically, we have had the pleasure of many talented students
from Mission Bay, Clairemont, and Crawford high schools participate in
the program.
10. Is the internship program a lot of additional work
for Mossy?
You would think it is but that is really not the case. Our managers
may sometimes have that initial opinion but quickly realize that there
is minimal processing paperwork and mentoring is very rewarding. It
is really a matter of assigning students to the managers/associates and
progress checking.
11. In addition to providing internships, what else is
Mossy doing to stay involved with public education?
The education to industry partnership is vital to our success and
allows our dealerships to give back to the community. We provide
guest speakers for classroom presentations and leadership and personnel for Skills USA contests which provide work force education and
employment readiness. The Mossy dealers provide technical advice in
the building, remodeling, and refurbishing of high school automotive
facilities, assist teachers, prepare for automotive exhibits at the Del Mar
Fair and make personnel available at grand opening events for high
school automotive programs.
Additionally, we donate vehicles, tools, and instructional supplies
and support National Automotive Technicians Education Foundation
certification efforts by having Mossy employees to serve on the two-day
rigorous program inspection.
The Office of College, Career and Technical Education (CCTE) is at the
forefront of the District’s effort to improve student achievement by
integrating core academic subjects with relevant, challenging technical
and occupational knowledge. CCTE programs prepare students for 21st
century challenges and opportunities. This is achieved through a collaborative process for continuous improvement guided by partnerships with
the greater community. For more information, contact Shawn Loescher,
Director at 858-503-1758 or by email at [email protected].
By John Raber
M
ost experts agree that it is getting increasingly difficult to
recover stolen vehicles because of the sophisticated tactics of
organized crime rings. These professional thieves know how
to outsmart smart keys and disable most anti-theft devices,
leaving vehicles more vulnerable than ever to theft. And, they aren’t
stopping there. Unfortunately, thieves are also outsmarting many dealers
who aren’t taking precautions to protect vehicles on their lots from theft.
According to the FBI’s latest figures, vehicle theft is at its lowest point
since the 1960s. Based on that information, it would appear that theft
isn’t an issue that dealers need to be as concerned about. However, those
numbers are deceptively positive for California dealers.
• California has the highest number of vehicle thefts in the U.S.
• Seven of the top 10 markets for theft are in California
• Approximately one-third of all vehicle thefts in the U.S. occurred
in the states that border Mexico.
• The rate of stolen vehicles that are never recovered has reached a
30-year high (48%). That alarming percentage translates to nearly
372,000 vehicles not recovered in 2011 (latest data available).
Vehicle thieves continue to employ a variety of methods to steal vehicles
from dealerships. While some of their methods are not new, they are still
successful which is why criminals use them. The following are some of
the more prevalent techniques being used today:
Test Drive Theft
18
• Drive off before the sales person has a chance to get into the vehicle
• Drive off when the sales person and the thief are switching seats
• Drive off and never return if the thief is allowed to test drive a
vehicle alone
• Switch the real key with a look-alike fake key and give the fake key
to the sales person at the end of the test drive
San Diego Dealer
Accessing the Key
• Steal keys from the keyboard by using distraction techniques
• Steal keys from the service area
• Wait in the customer lounge and see if they can get into the vehicle
before the customer does and drive off
• Copy the vehicle VIN and order new keys
Fraudulent Theft
• Use fake/stolen identity when purchasing a vehicle
• Buy a vehicle with falsified credit information
Technology Theft
• Use high-tech tools to reprogram vehicles and enable ignition
starts
o Smart key maker
o Smart key relay attack or frequency jammer
o Foiling the keyless entry system
o Code-grabbing devices
LoJack recently compiled data from more than 100 recoveries of vehicles
equipped with a LoJack System that were stolen from dealer lots over
the past three years. From this data, the company analyzed how thefts
have occurred and compiled recommendations in a layered approach
for dealers to protect the vehicles on their lots.
Layer One: Use Common Sense Measures
• Never leave the keys in a vehicle—it’s an open invitation for a
crime of opportunity
• Never leave a vehicle running—even if just to return inside the
dealership to tell a customer the car is ready to test drive
• Never let a customer test drive a vehicle unaccompanied and make
sure the sales person hands the key to the customer after both are
inside the vehicle
• If the sales person drives the vehicle first on a test drive, he/she
must turn off the vehicle and remove the keys from the ignition
before switching with the customer. Once both are re-seated in
the vehicle, then hand the key to the customer to continue the
test drive
• Keep the keyboard locked during business hours—so no unauthorized persons have access to keys
• Hide/remove the valet key—so that it cannot be stolen from a
vehicle and used at a later time
Layer Two: Protect Your Lot
1. Make certain your lot is well lit at night—thieves prefer working
where they can’t be easily spotted
2. Install on site security cameras—thieves may go elsewhere if they
think they are being recorded
3. Fence in your vehicles if possible—it provides another deterrent
making it more difficult to drive off with one of your vehicles
Layer Three: Ensure Recovery in the Event of Theft
As a final step, consider protecting your dealership from fraudulent
behaviors by pre-installing a stolen vehicle recovery system in vehicles
on your lot. Today’s sophisticated thieves often use stolen identities, bad
checks, false information to “purchase” vehicles from dealers—who are
not aware of theft until after the fact. Using a system that both employs
Radio Frequency, the time-tested most effective technology for tracking
and recovering vehicles, and is directly integrated with law enforcement
will ensure that your dealership is employing the most effective measure
to get your vehicle back.
If a dealer pre-loads its lot with the LoJack Stolen Vehicle Recovery
System, a dealer not only receives a level of insurance in the event that
its lot is targeted by thieves, it also has the opportunity to generate
incremental PVR and provide instant peace of mind for their customers.
Earlier this year, one vehicle equipped with a LoJack device led to the
recovery of 12 more while helping law enforcement break up a large
auto theft ring.
On January 18, 2013, the owners of California Car Company contacted
the Brea Police Department to report a 2004 BMW Z-3 had been stolen
along with 12 other exotic cars from the lot of their dealership. Thieves
broke into the car lot office, located the keys and were able to, for the
time being, get away with it.
Brea Police verified the theft and entered the vehicle information along
with the 12 other vehicles into the state and federal crime computers,
which automatically activated the LoJack transponder concealed in the
BMW.
Out of the 13 vehicles that were stolen, the BMW-Z-3 was the only
vehicle equipped with a LoJack Stolen Vehicle Recovery System. A short
time later, Los Angeles Sheriff’s Air-7 flight deputies picked up the silent
LoJack signal, tracked and located the vehicle parked, and unoccupied,
at a motel. Detectives and ground units were notified.
Prior to any of the assisting ground units arrival, a male and female
were seen entering the vehicle and drove off. Apparently, when the male
driver saw the helicopter, he fled at a high speed trying to out run the
airship. Air-7 followed the vehicle, giving the direction of travel to ground
units. The BMW blew out a tire, exited the freeway and entered a mall
parking lot in the city of Pico Rivera. One suspect was arrested on site.
So far in the case, there have been four suspects arrested and charged.
Furthermore, all 13 cars have been recovered. They are identified as
a 2007 Maserati, 2009 Mustang, 2008 Mustang, 2008 Mercedes E350,
2005 Audi A-4, 2004 BMW M-3 (LoJack equipped), 2006 Bentley, 2012
Chevrolet Camaro, 2002 BMW 745, 2002 Mercedes 600, 2005 Mercedes
SLK350, 2011 Hyundai Genesis and a 2008 BMW 28I. The estimated value
of recovered cars is $250,000.
For more information on protecting your dealership from lot theft and the LoJack
Stolen Vehicle Recovery System, contact John Raber at 424-278-2063 x 11 or at
[email protected].
44th Annual NCDA Golf Tournament
The 44th Annual NCDA Golf Tournament proved that if you wait
long enough, even a little rain won’t stand in the way of great golfing.
Shortly before tee-off, a heavy downpour put this year’s tournament
into question. But the rain abated and golfers recorded outstanding
scores that resulted in extensive tie-breakers to determine the winners.
The 1st Place Team – Gross Score included Rich Hopkins, Carl
Bangerter and Chris Bangerter.
The 1st Place Team – Net Score was comprised of John Hine, Paul
Dyke, Ed Freel and Tim Hnedak.
The 2nd Place Team – Net Score included Rick Rodriguez, Bob
Heintz, Chris Hoffman and James Fessenden.
The closest to the pin contest at hole #8 which was sponsored by
AutoTrader.com was won by Kurt Anderson. The longest drive at hole
#11 (sponsored by Cars.com) was won by Chris Bangerter.
Once again, no one won the $100,000 hole-in-one contest on hole
#5 sponsored by Barney & Barney.
The NCDA would like to thank all of this year’s sponsors who make
the tournament such a great success:
Platinum Sponsors:
ADESA San Diego Fox Sports San Diego
AutoTrader.com Scripps KGTV 10
Barney & Barney Cars.com
U-T San Diego
Gold Sponsor:
Bank of America
Bronze Sponsors:
All Lines Dealer Services Parke, Guptill & Company
Freeman US Bank
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San Diego Dealer
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For over 40 years we have been committed to our dealer clients
providing them with the highest quality tax, accounting, consulting,
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With several years of dealership experience at the shareholder level,
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Dale E. Duncan, CPA
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George R. Applebaum, CPA
Shareholder
(626) 858-5100, ext. 215
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237
Spring Issueext.
2013
[email protected]
21
Promoting
Safety &
Preventing
Accidents
By Sam Celly
S
afety Incentive Programs have been a positive influence on promoting safety and reducing accidents at the workplace. Reduced
injuries from successful incentive programs have saved thousands
of dollars toward workers' compensation insurance premiums and also
minimized other losses. Employee morale at safer places is also better
resulting in greater productivity and profitability.
All in all, it is a win-win situation for both the employees and the
employer. OSHA believes that in certain instances, the employer may
be violating the law when the incentive program discriminates against
employees or provides a disincentive to employees for reporting injuries.
When safety incentive programs have a disparate impact, so as to falsely
reduce the reportable injuries, OSHA requires employers to make changes.
In this alert, we discuss ways to remain compliant and ensure that your
incentive program meets OSHA's sniff test.
A memo was written earlier last year by the U.S. Deputy Assistant
Secretary of Labor, Richard Fairfax, and was sent to OSHA administrators
across the U.S. The memo specifically references Section 11(c) of OSHA
prohibiting employers from discriminating against an employee that
reports an injury or illness caused at work (http://www.osha.gov/as/opa/
whistleblowermemo.html).
Any retaliation against an employee or disciplining an employee,
exercising their right to report injury is considered illegal and OSHA wishes
to enforce penalties under other whistleblower statutes. We note that
there was major restructuring of the "Office of Whistleblower Protection"
in 2012 that lends more teeth to the enforcement mechanism. Fairfax
states that reporting injuries can lead to prompt treatment for injured
employees and can also help employers to correct dangerous conditions
thereby protecting all employees at their workplace.
Also in question is the practice in which employers institute a disciplinary action against an employee involved in an injury. The application of
OSHA rules would vary case by case; however, here are some issues that
the Fairfax memo outlines as follows:
1. Safety Rules: OSHA encourages employers to maintain and
enforce legitimate safety rules. However, an employer cannot
use the violation of the safety rule as a pretext to discriminate
against an employee reporting an injury. An investigation is
required. Employers who have 1) clear cut rules communicated
22
San Diego Dealer
to employees that are 2) enforced in the absence of the injury
and 3) employees violating those rules in the absence of an injury
receive a reprimand, are more likely to prevail in situations where
disciplinary proceedings are instituted against an employee who is
injured as a result of that safety rule violation. Vague rules such as
"work carefully" or "maintain situational awareness" will not meet
muster with OSHA. Lastly, rules that require employees to report
injuries immediately cannot be used to penalize employees when
employees do not realize that their injuries are serious enough to
report immediately, or in some cases may not even realize that
medical intervention is needed, as some injuries surface after a
period of time.
2. Incentive Programs: Fairfax says that OSHA recognizes that
employers use safety as a key management metric. However, any
incentive program that encourages under reporting or discrimination against workers must be discontinued. Fairfax notes that
raffles held by employers in which non-injured parties participate
is well-intentioned but better forms of programs may be available
in which employees are provided with incentives to identify near
misses or identifying hazards. We note that California Labor Code
3203(a)(2) specifies recognition of employees who follow safe and
healthful work practices. See www.dir.ca.gov/title8/3203.html.
AND OSHA GETS INTO ACTION
Earlier this month, OSHA required Norfolk Southern Corp to pay $1.1
million for firing three employees who had stated that they were fired
following injuries on the job (http://www.osha.gov/pls/oshaweb/owadisp.
show_document?p_table=NEWS_RELEASES&p_id=23694).
Over the last eighteen months, Norfolk Southern has been fined
six times for terminating 11 employees for filing a claim for treatment
following an injury on the job. In our September 2012 Newsletter, we
had discussed the $300,000 payment to an injured employee from
BNSF for denial of benefits following an injury. Rather, BNSF had placed
the employee on unpaid medical leave and leveled disciplinary action
following the injury. Both these cases indicate an OSHA that is critical
of employers terminating employees following an injury on the job
and therefore assesses hefty compensation for employees & penalties.
California has statutory penalty provisions under Labor Code 132(a) that
states as follows:
Any employer who discharges, or threatens to discharge, or in any
manner discriminates against any employee because he or she has filed
or made known his or her intention to file a claim for compensation is
guilty of a misdemeanor and the employee's compensation shall be
increased by one-half, but in no event more than ten thousand dollars
($10,000), together with costs and expenses not in excess of two hundred
fifty dollars ($250). Any such employee shall also be entitled to reinstatement and reimbursement for lost wages and work benefits caused by
the acts of the employer.
With penalties such as these, it is time that all dealers ensure that no
retaliatory action is taken against employees rightfully filing their claim
for Workers Compensation following a workplace injury. We must note
that the California Labor Code 132(a) may not be the limit if OSHA was
to assess penalties against employers in the state.
WHAT TO DO AND WHAT NOT TO DO
NOT TO DO: Do not discriminate against any employee for rightfully
seeking treatment related to a workplace injury. There are penalties
for wrongful denial and even delays in processing the claim. Let the
Workers' Compensation carrier process the claim. If you suspect foul
play, alert the carrier. Let them deny the claim if they deem the claim to
be non-meritorious. All managers must comply with this policy so that
no individual takes action against an employee with a suspected claim.
Suspected fraudulent claims should be kept under lid as any discussion
of the matter with other employees may cause prejudice against the
injured employee, which is prohibited by law. Do not make safety records
part of the annual employee evaluation in which salary or promotions
are discussed. Any denial of salary increment or promotion based on
workplace injury records is prohibited by law!
TO DO: Discipline employees for safety rule violations whether related
or unrelated to an injury, if you meet criteria as follows:
• Safety policy has been clearly communicated in writing with
acknowledgment from employees
• Employees violating safety rules are disciplined when unrelated
to injury as well
Heat Stress Training and Prevention
Both Cal-OSHA and Federal OSHA are requiring that employers take
affirmative steps to reduce heat stress. This law was enacted in California
a few years ago when employers were required to train employees &
supervisors for prevention of heat stress. We write this alert to give you
guidance on the statute and other affirmative steps you may take to be in
compliance and to protect employee health. Please note that if Cal-OSHA
was to inspect your facility, they will require you to show proof of training
on heat stress along with other safety documentation!
Background: Workers who are exposed to extreme heat or work in
hot environments may be at risk of heat stress. Exposure to extreme heat
can result in occupational illnesses and injuries. Heat stress can result in
heat stroke, heat exhaustion, heat cramps, or heat rashes. Heat can also
Continued on page 24
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increase the risk of injuries in workers as it may result in sweaty palms,
fogged-up safety glasses, and dizziness. Burns may also occur as a result
of accidental contact with hot surfaces.
Law on Heat Stress: In the state of California, regulations require
employers to take affirmative steps for controlling Heat Stress. Generally,
for an automobile dealership, high risk of heat stress exists in locations
as follows:
• Sales Staff: When a sales employee walks through the lot with a
potential customer, the walk-through the lot would be considered
outdoors and hence the standard would apply. Encourage sales
staff to wear hats when out in the sun.
• Parts Truck Drivers: As the parts truck driver works outside the
dealership driving around town, the place of work would be
considered outdoors as well.
• Shop Areas: Shops with marginal ventilation, metal roofs and/or
hot engines idling may increase the ambient temperatures and
heat stress can become an issue.
Provide Water: One salient requirement of the California Code is that
the employer provide one quart of water per hour per employee during
the work shift. For parts truck drivers, provide a water cooler with ice at
the start of the shift. And last but not the least, water fountains or coolers
are readily available at place of work.
Training Requirements in California
Training requirement under the temporary standards
is also listed in the memo and supervisors should
pay special attention.
Employee Training is required for employees as follows:
1. The environmental and personal risk factors for heat illness.
2. The employer's procedures for complying with the requirements
of this standard.
3. The importance of frequent consumption of small quantities of
water, up to 4 cups per hour under extreme conditions of work
and heat.
4. The importance of acclimatization.
5. The different types of heat illness and the common signs and
symptoms of heat illness.
6. The importance of immediately reporting to the employer, directly
or through the employee's supervisor, symptoms or signs of heat
illness in themselves, or in co-workers.
7. The employer's procedures for responding to symptoms of possible
heat illness, including how emergency medical services will be
provided should they become necessary
8. Procedures for contacting emergency medical services, and if
necessary, for transporting employees to a point where they can
be reached by an emergency medical service provider.
9. How to provide clear and precise directions to the work site.
Supervisor Training is as follows:
1. The information required to be provided by section above.
2. The procedures the supervisor is to follow to implement the
applicable provisions in this section.
3. The procedures the supervisor
is to follow when an employee
exhibits symptoms consistent with possible heat illness,
including emergency response
procedures.
Poster: STOPPING FOR WATER KEEPS
YOU GOING poster from the OSHA website
can be downloaded and posted on your
employee notice board:
h t t p : / / w w w . o s h a . g o v / S LT C / h e a t i l l n e s s /
osha_heat_poster_en.pdf
Authority Cited: Title 8 CCR Section 3395 & Info from CDC website
Sam Celly has been helping automobile dealers comply with EPA & OSHA regulations
since 1987. He is the past-Chair of the Law Committee and the Environmental Issues
Committee of the AIHA. Sam has a BS & MS in Chemical Engineering followed by
a JD from Southwestern University School of Law. You can contact him at sam@
cellyservices.com or at 562-704-4000.
24
San Diego Dealer
CNCDA Scholarship
Foundation
By Jennifer Aragon
T
he California New Car Dealers Scholarship Foundation was established in 1994 to encourage and support students interested in
careers in the automobile industry and will continue its efforts to
bring more high quality people into the automobile industry – raising
the standards and elevating the stature of the industry as a whole. So
let your employees and customers know about these scholarships and
the great career opportunities that are available in our industry.
The Foundation has awarded scholarships to 85 California students
enrolled in post-secondary automotive technology or automotive
management programs for the 2012-2013 school year. Eighty students
studying automotive technology received scholarships, totaling $33,125
including Raymundo Ramos, a Fresno City College student, who was
awarded the “Bill & Harriett Bader Memorial Scholarship.” Forty-two of
those students are enrolled in factory-specific programs and two of
them work at a dealership.
Since 2007, 380 automotive technology scholarships have been
awarded totaling $232,000 and 26 automotive management scholarships
have been awarded totaling
$70,300.
Additionally, Francisco Velez, a
Senior from Bellflower, California
attending Northwood at the
Cerritos campus was the recipient of the Jay Gorman Education
Scholarship for outstanding academic achievement. Since 1995, the
Foundation has awarded scholarships to students pursuing Automotive
Marketing/Management degrees from Northwood University, which,
in addition to southern California, has campuses in Michigan, Texas
and Florida.
For details about the Foundation or the Scholarship Program, please
contact Jennifer Aragon, at (916) 441-2599 or [email protected] or click
on the Scholarship Foundation link on the CNCDA website (cncda.org).
Applications must be completed and postmarked by July 1, 2013.
Dealers Provide Support to
Officers Combating Vehicle Theft
By Lance Roberts
F
or nearly as long as there have been vehicles on the road, there
have been vehicle thefts. This is especially true in major border
metropolitan areas like San Diego County. More than 11,000 cars
and trucks were stolen in 2012 countywide. Thieves continue to
steal vehicles for their component parts, for smuggling of both drugs and
human beings, and also for exportation to other countries.
Among the latest trends in vehicle theft include stolen vehicles being
cloned, using a legitimate vehicle identification number multiple times
on stolen vehicles to hide their true identity. Still, the majority of suspects
are using traditional methods, such as:
• Stealing vehicles and generating false documents, such as titles
and registration cards.
• Selling the vehicle via the Internet and using a false ID or no ID at
all to sell the vehicle. (Once the purchaser realizes they purchased
a stolen vehicle, it becomes difficult to conduct follow-up.)
Most of these vehicles are still being obtained in traditional ways:
individuals who leave their keys in or near their unattended vehicles;
punched door locks and ignition switches; and, owner give-ups which
result in insurance fraud.
However, thanks to the relentless efforts of San Diego County’s law
enforcement community, nearly 77 percent of those stolen vehicles were
recovered last year. Since 1997, the New Car Dealer Association® San Diego
County has been a supporting member of the Auto Theft Advisory Committee
(ATAC). The ATAC is a partnership between law enforcement agencies,
the NCDA, government, insurance companies, car rental companies, and
26
San Diego Dealer
other related businesses who share
a common goal
to reduce vehicle
thefts in San Diego
County. The ATAC is
currently chaired
by Lieutenant
Glenda Brents,
California Highway
Patrol (CHP) Board
Division.
Lieutenant Brents explained how the Highway Patrol utilizes technology
to help reduce vehicle theft throughout the state.
“The CHP maintains the Vehicle Theft Information System (VTIS) as an
integral part of the comprehensive Vehicle Theft Control Program. The
information available through VTIS has assisted vehicle theft investigators
in analyzing specific data regarding theft and recovery trends, movement
of vehicles, and the condition of recovered vehicles.”
“Additionally, the CHP actively coordinates and supports legislation
in an effort to reduce vehicle theft related crimes,” Brents said. The CHP
reviews state and federal regulations and existing laws affecting vehicle
theft. As the Statewide Vehicle Theft and Apprehension Coordinator, the
CHP provides analysis on numerous legislative proposals designed to
impact vehicle theft activities. Also, the CHP publishes an annual report
of vehicle theft statistical data.
Aaron Miller, San Diego County Sheriff’s Department, Alpine Station;
Deputy Steven Sepulveda, San Diego County Sheriff’s Department,
Imperial Beach.
Second-time Award Recipients
Deputy Marshall Abbott, San Diego County Sheriff’s Department
Encinitas Station; Corporal Damian Ballardo, National City Police
Department; Deputy Jim Breneman, San Diego County Sheriff ’s
Department Ramona Station; Deputy Zach Harris, San Diego County
Sheriff’s Department Fallbrook Station; Officer Juan Mora, California
Highway Patrol San Diego Area.
Fourth-time Award Recipient
Deputy Shannon Justice, San Diego County Sheriff’s Department
Lemon Grove Station.
Fifth-time Award Recipients
Officer Rodney Fischer, San Diego Police Department, Traffic Division;
Officer Mark Hallmark, California Highway Patrol El Cajon Area.
During the past 23 years, the Auto Theft Advisory Committee has
sponsored the Vehicle Theft Recovery Officer of the Year Program which
raises public awareness in three ways:
• The committee recognizes the positive effects that law enforcement
agencies have had upon vehicle theft.
• The committee works with the media to produce public awareness
messages which will provide tips to help prevent vehicle theft.
• The committee recognizes those officers in San Diego County who
excel at vehicle theft recovery.
In addition to the omnipresent efforts of San Diego County’s law
enforcement agencies, the Motor Vehicle Theft Prevention Act provides
funding for the public awareness program, "Californians Help Eliminate
Auto Theft" (CAL-HEAT). CAL-HEAT establishes a toll-free hotline number
for reporting vehicle theft 1-800-TELL-CHP. Calls are handled by the
Sacramento Communications Center, which refers them to the appropriate
state and local law enforcement agency.
The Vehicle Theft Recovery Officer of the Year Award was developed
to honor excellence in law enforcement, and to provide an incentive for
officers in the future years to become even more zealous in the recovery
of stolen vehicles. On March 20, 2013, 28 officers representing almost
every law enforcement agency in San Diego County were honored for
their vehicle recovery efforts. They arrested a total of 110 vehicle theft
suspects and recovered 629 vehicles with a total recovery value of
$4,469,065 in 2012.
First-time Award Recipients:
Deputy James Balderson, San Diego County Sheriff’s Department,
Vista Station; Deputy Aaron Boer, San Diego County Sheriff ’s
Department, Valley Center Station; Officer Michael Butcher, La Mesa
Police Department; Deputy Luis Carrillo, San Diego County Sheriff’s
Department, Poway Station; Officer Tyler Cockrell, San Diego Police
Department, Northern Division; Officer David Ditomaso, Chula Vista
Police Department; Officer Jordan Good, Coronado Police Department;
Officer Ronald Harris, California Highway Patrol, Oceanside Area;
Deputy Devin Kusler, San Diego County Sheriff’s Department, Santee
Station; Officer Louie Michael, El Cajon Police Department; Deputy
Seventh-time Award Recipient
Officer Roger Stonier, San Diego Police Department, Central Division.
Twelfth-time Award Recipient
Officer Michael Roberts, Oceanside Police Department.
This year, the Auto Theft Advisory Committee selected an officer to
receive an honorable mention for his excellent police work. The San Diego
State University Police Department is responsible for the campus which
encompasses a community of more than 40,000 students, faculty and
staff. Its primary police jurisdiction is on the university property which is
283 acres. The Auto Theft Advisory Committee presented its Honorable
Mention Award to Corporal Brian Weaver who recovered 12 vehicles and
arrested 4 suspects.
The ATAC recognizes those officers whose points for vehicle recovery
and arrests placed them in the top five. The fifth place "Vehicle Theft
Recovery Officer of the Year” award was presented to Officer Andrew
Wyse, Escondido Police Department. It was Officer Wyse’s first nomination for an ATAC award. The fourth place “Vehicle Theft Recovery Officer
of the Year” award recipient was Officer Vernon Colglazier, San Diego
Police Department, Mid-City Division. It also was Officer Colglazier’s first
nomination for an ATAC award.
The third place “Vehicle Theft Recovery Officer of the Year” was awarded
to Officer Scott Crane, San Diego Police Department, Western Division.
It was Officer Crane’s second nomination for an ATAC award. The second
place “Vehicle Theft Recovery Officer of the Year” award recipient was
Officer Dannie Bihum, San Diego Police Department, Eastern Division.
This was Officer Bihum’s seventh nomination for an ATAC award.
After reviewing the recovered stolen vehicle points and significant case
highlights of each nominee, the members of the Auto Theft Advisory
Committee unanimously agreed on the Top Vehicle Theft Recovery
Officer of the Year 2012: Deputy Jeff Creighton, San Diego County Sheriff’s
Department, San Marcos Station.
This was Deputy Creighton’s first ATAC award. In 2012, he was responsible for the recovery of 52 vehicles, including 10 rolling stolen vehicles,
valued at $202,400, which included 14 arrests for vehicle theft.
Health Care Reform:
By Chris Hoffman
To Pay or Play
P
robably the most important mandate for employers is the “play or
pay” mandate, also known as the employer-shared responsibility,
which will require large employers (those with the equivalent of 50
or more full-time employees) to provide adequate and subsidized group
health plan coverage to all full-time employees beginning in 2014. If an
employer fails to satisfy this requirement, it will be subject to a penalty.
This could have a significant economic impact on many employers.
Accordingly, it is very important for employers to now start modeling
how this mandate will impact their bottom line in 2014.
Who Is A Large Employer?
The play-or-pay provision only applies to employers with the equivalent
of 50 or more full-time employees in the prior calendar year. An employer
is determined on a control-group basis. There are two ways an entity
can be part of a control group. The first is when the parent owns 80% of
the stock of a subsidiary (or in the case of nonprofits, one organization
controls 80% of the board of the other organization). The second is when
the same 5 or fewer individuals, trusts or estates own together at least
80% of two or more organizations and the total duplicative ownership
is at least 50%. The attribution rules apply to determine ownership. An
employee is “full-time” if he or she, on average, works at least 30 hours a
week (or 130 hours per month).
To determine if you are a large employer, first count the number of
employees who work at least 30 hours per week (130 hours per month).
To that number, add the number of full-time equivalent employees,
which is determined by adding together the number of hours of the
non-full-time employees (up to a maximum of 120 hours per month per
employee) and dividing by 120. This calculation should be done for each
month of the prior year and then the months’ totals should be divided
by 12 to determine an average.
If the resulting average is 50 or more, the employer is subject to
the play or pay provisions. There are, by the way, rules for subtracting
seasonal employees if the total number of employees exceeds 50 for
only 120 days or less.
28
San Diego Dealer
Requirements “To Play”
If the employer-shared responsibility provision of ACA applies,
the employer must either offer “minimum essential coverage” which
provides “minimum value” at an “affordable price” to substantially all
of its full-time employees (not full-time equivalents) or risk paying an
excise tax. For a plan to provide minimum value, it must pay 60% of
the claims incurred by participants (including co-pays, deductibles,
co-insurance, etc.). The IRS and Department of Health and Human
Services offer an online minimum value calculator for you to determine
if your plan provides minimum value.
To be “affordable,” the participant must not be forced to pay more than
9.5% of the employee’s household income for the calendar year. Since
most employers do not have access to their employees’ family financial
information, the IRS created affordability safe harbors in its January 2013
proposed regulations.
An employer will be in compliance if it complies with one of these
three safe harbors: 1) the annual employee cost of the employee-only
tier of the cheapest medical option (providing minimum value) does not
exceed 9.5% of the employee’s Form W-2, Box 1; 2) the monthly employee
cost of the employee-only tier of the cheapest medical option (providing
minimum value) does not exceed 9.5% of 130 times the employee’s hourly
rate of pay; or 3) the monthly employee cost of the employee-only tier
of the cheapest medical option (providing minimum value) does not
exceed 9.5% of the state-specific, federally-established single individual
federal poverty level divided by 12.
What You Pay If You Don’t Play
If the employer does not offer qualified coverage to at least 95% of
full-time employees, the IRS may levy an excise tax. If the employer does
not offer qualified coverage to at least 95% of full-time employees and
at least one full-time employee qualifies for federal premium assistance
for his or her coverage under the Exchange, it will owe the IRS a nondeductible annual payment equal to $2,000 times the number of its
full-time employees minus 30.
For purposes of the payment, only full-time employees (not full-time
equivalents) are counted. The $2,000 penalty is an annual penalty,
imposed monthly, so if you play for some months, you will only pay 1/12
of the $2,000 for those months in which you do not play.
If an employer offers coverage to at least 95% of full-time employees,
but that coverage does not provide minimum value or it is not offered
at an affordable price, and at least one full-time employee qualifies for
federal premium assistance for his or her coverage under the Exchange,
or if the employer does offer coverage to 95% of full-time employees
but one of the 5% of the uncovered full-time employees qualifies for
federal premium assistance for coverage under an Exchange, it will owe
the IRS a non-deductible annual payment equal to $3,000 per employee
receiving federal premium assistance, up to a maximum of $2,000 times
the number of its full-time employees minus 30. An individual or family
will qualify for federal premium assistance if their household income is
less than 400% of the federal poverty level.
Exchanges, which were mandated under ACA, will exist in every state
as of January 1, 2014. Some will be administered by the state itself
(usually via contracts with existing insurance companies), some will be
administered by the state and federal governments and some will be
administered by the federal government on behalf of the state. The
Exchange is a new way for anyone to gain medical insurance coverage.
In essence, the state becomes the insurance company: individuals pay
premiums to the Exchange for their desired level of coverage and the
state guarantees the payment of covered claims. For some, it is the only
access to medical coverage they have. For full-time employees, it is most
likely one of the available options for medical coverage.
Offering Coverage To Full-Time Employees
To play, the employer must offer qualified coverage to full-time
employees. The determination of who is a full-time employee can be
rather convoluted and depends on whether the employee is an ongoing or new employee. The IRS’ January 2013 proposed regulations set
forth the required recordkeeping and administrative requirements for
determining full-time status.
For ongoing employees, you must use a standard lookback measurement period of from three to 12 months to determine whether each
employee worked, on average, 30 or more hours per week. At the end
of each measurement period, the employer determines if each employee
will be classified as full-time or part-time for the following stability period,
which must be from six to 12 months in length.
But the stability period for full-time employees cannot be shorter than
the standard look-back measurement period and the stability period for
non-full-time employees cannot be longer than the standard look-back
measurement period. You may use an optional administrative period of
up to 90 days to make the classification calculations and complete open
enrollment for the stability period associated with each standard look-back
measurement period, but any administrative period must overlap with
the prior stability period to prevent a gap in coverage.
Employees who are determined to be “full-time” at the end of a standard
measurement period keep such classification during the associated
stability period so long as they remain employed, regardless of the hours
worked during the stability period.
If a new employee is expected to work 30+ hours per week, he or
she is classified as “full-time” from their start date and must be offered
Continued on page 31
SOLUTIONS
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If you have
employees,
you have a
reason to
call us.
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4747 Executive Drive • Suite 1000 • San Diego, CA 92121 • 858.597.9600
www.laborlawyers.com
SAN DIEGO
SAN FRANCISCO
TAMPA
WASHINGTON,D.C.
30
San Diego Dealer
Continued from page 29
coverage by the 91st day after hire. For new variable-hour and seasonal
employees, you must use an initial measurement period of from three to
12 months to determine whether each employee worked, on average, 30
or more hours per week.
At the end of the measurement period, determine if each employee
will be classified as full-time or part-time for the following stability period,
which must be the same length as the regular stability period for ongoing
employees. The stability period for full-time employees cannot be shorter
than the initial measurement period and cannot be shorter than six months.
The stability period for non-full-time employees cannot be longer than
the initial measurement period plus one month and cannot exceed the
standard lookback measurement period in which the initial measurement
period ends. You may use an optional administrative period of up to 90
days to make the classification calculations and complete open enrollment
for the stability period associated with each initial measurement period.
Once an employee has been working for an entire standard lookback
measurement period, he or she is transitioned into the ongoing employee
standard measurement period which the initial measurement period ends.
As far as counting hours of service, count the actual hours of service
for hourly employees. For non-hourly employees, you may count actual
hours or use equivalencies and credit eight hours for each day worked
or credit 40 hours for each week worked. You must count all hours for
which you pay an employee, whether they are for services performed or
not (vacation, paid leave, etc.). You must also count unpaid hours related
to FMLA leave, jury duty and military leave.
These new requirements are complex, to say the least. If you need help in
determining how, and whether, these rules apply to your operation, contact
Chris Hoffmann at 858-597-9600 or at [email protected].
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Stay On Course with
Management
Succession
By Sid Tobiason, Partner, Moss Adams LLP and
Mark Steranka, Director, Moss Adams Advisory Services
W
hen you think about the Automotive Industry forces shaping your organization today,
chances are you’re also thinking about how you’ll compete in the future, especially
given the pending wave of ownership transitions and executive retirements that have
built up over the past dozen years as a result of two economic downturns.
If you want to maintain or strengthen your position in the marketplace
in both the near and long term, then management succession planning
should be one of your top strategic priorities. Consider the number of
former leaders and colleagues who have transitioned to new organizations in the last few years or who have mentioned their plans to retire
or sell their businesses in the next few years. Then, it becomes clear that
management succession is not just about the person at the top—it's
an organization-wide effort that can help ensure the continued success
of your business for years to come. When thinking about management
succession, consider these five essential keys to success.
DEVELOP A PLAN
Any important business undertaking should be guided by a plan, and
management succession is no exception, whether your dealership is a
single point store, or a large group. Your strategic plan should address
how management succession fits into your overall approach to attracting,
developing, and retaining key employees. Specifically, your plan should
address items such as:
• Why management succession is important to the future of the
company
• Who is included in the management succession program
32
San Diego Dealer
• What steps comprise the management succession process
• When management succession will take place
START EARLY
If you wait to address management succession until you start thinking
about retirement, then you've most likely waited too long. Management
succession is a long-term process through which potential future leaders
are developed at multiple levels and across departments and functions
within your dealership.
If yours is one of the many businesses that hasn't introduced a proactive
succession planning program, you can jump-start the process by evaluating your senior management team and the next highest level of managers,
assessing your training and development activities, and understanding
your recruiting and retention track record. These assessments will provide
much of the foundational information needed to design a management
succession program that's tailored to your dealership.
BUILD A BENCH
It's risky to have only one succession option available. You should
strive to develop multiple successor candidates for each key position.
Dealers can learn a lot from the "high-potential programs" used by larger
companies. These involve the identification of potential future leaders
and the application of rotational and training arrangements to enhance
their expertise and experience in each major facet of the business.
While you may not have the luxury of being able to institute a comprehensive rotational program, you should be able to create training
programs that provide many of the same benefits.
when they're owners, employees start to wonder about the future of
the company. As is human nature, employees typically think about
the full range of possibilities, but they tend to dwell on the worst-case
scenarios. As a result, it's important to proactively and transparently
communicate the plan for addressing your organization's management
succession needs.
TAKE A LONG VIEW
Management succession and ownership transition are often confused
when the leader of a company is also the owner. For family-owned and
closely held dealerships expecting to transfer ownership from one
generation to the next, it's especially important to take a long view by
distinguishing leadership from ownership.
Sometimes the best course of action to ensure the continued success
of your dealership means separating the ownership baton from the
leadership baton, because even if you're ready to transition ownership, the
next generation may not be ready to take on leadership. In this situation,
you should identify the best candidate (internal or external) to run the
business and let the management succession program prepare the next
generation to eventually take over. This path will best serve the interests
of the dealership, the employees, and your family in the long run.
THE BOTTOM LINE
If you've developed a management succession plan, instituted it well
in advance of a leadership succession event, created multiple succession
options for core positions, taken a long view toward business leadership,
and communicated your plans to employees, then you're well on your
way to successful management succession—and you're well ahead of
most businesses.
COMMUNICATE INTENT
More than anything else, uncertainty negatively impacts employee
morale. When business leaders approach retirement age, especially
Sid Tobiason has more than 33 years of tax experience, with a focus on federal
income and estate taxation of dealerships. He leads the firm’s Automotive
& Dealer Services tax practice and is the author of the NADA’s Dealer Guide
to Business Succession Planning.
Mark Steranka is a director with Moss Adams Advisory Services. He has
over 25 years of experience helping businesses, assess and improve their
performance through strategic planning, succession planning, management
and organizational assessments, and compensation design.
rev up your
financial operations
Learning from your peers: It’s what you do in your 20
groups. Couldn’t your accounting team benefit from
a similar event? We thought so too. That’s why we’re
holding our seventh annual workshop to help CFOs
and controllers at dealerships nationwide share best
practices and learn about vital accounting and tax
issues. Space is limited—save a spot now.
2013 Workshop for Cfos and Controllers
DATE June 20–21
LOCATION New York–New York Hotel & Casino, Las Vegas
REGISTER www.regonline.com/2013DSWorkshop
CPE credit available upon request.
w w w. m o s s a da m s .c o m / d e a l e r se r v i c e s
Covering First Quarter 2013
Comprehensive information on the San Diego County new vehicle market
FORECAST
Market Should Post Fourth Consecutive Annual Increase in ‘13
New retail light vehicle registrations predicted to exceed 2009 total by nearly 60,000 units!
Below is a list of 10 key trends and developments in the San Diego
County new vehicle market:
1. San Diego County new retail light vehicle registrations increased
10% in the First Quarter of this year versus a year earlier, higher
than the 8.2% improvement in the Nation. (Note: March figures
were estimated.)
2. Auto Outlook’s annual forecast for 2013 new retail light vehicle
registrations: 136,750 units, up 8% from 2012.
3. Light truck market share increased from 37.9% in the First Quarter of 2012 to 38.9% this year.
4. Registrations for Detroit Three brands were up 16.8% so far this
year, above the 10% industry increase.
5. The new vehicle market has come a long way from the depths of
the 2008/2009 recession. Registrations in the First Quarter of
this year were an estimated 31,754 units, up more than 13,000
units compared to the First Quarter of 2009.
6. Alternative powertrain (hybrid and electric) market share was 8%
thru February of this year, the same as last year.
7. Three biggest segments in the county are Sub Compact Car,
Standard Mid Size Car, and Compact SUV.
8. Brands with the largest percentage increases in registrations during the first three months of this year: Buick, Cadillac, Subaru,
Dodge, and Land Rover. Top five in market share were Toyota,
Ford, Honda, Nissan, and Chevrolet.
9. Key factors providing a boost to new vehicle market: pent up
demand, low interest rates, availability of credit, and high trade
in values. Factors holding the market back: slowly recovering labor market, restrictive fiscal policy, and below average consumer
sentiment.
10. Top five selling cars in county market: Toyota Prius, Toyota Corolla, Honda Civic, Toyota Camry, and Honda Accord. Top five light
trucks: Toyota Tacoma, Ford F-Series, Honda CRV, Toyota RAV4,
and Ford Escape.
Change in Data Source
Effective with this release, the data source for Auto Outlook is
R.L. Polk and Company. This change was made to improve the
accuracy and reliability of the data presented. Historical figures
will change slightly from those presented in previous issues. If
you have any questions, please contact Auto Outlook. Thank you!
Annual Trend in County Market
Market Summary
New light vehicle registrations
160,000
140,000
120,000
126,570
100,000
80,000
60,000
99,255
102,624
77,707
40,000
87,621
Market is predicted to
improve 8% in 2013.
20,000
0
2008
136,750
2009
2010
2011
2012
2013
The graph above shows annual new retail light vehicle registrations in the county
from 2008 thru 2012, and Auto Outlook’s projection for 2013.
Historical data source: Polk.
34
San Diego Dealer
TOTAL
YTD '12
YTD '13
% Chg.
thru Mar. thru Mar.* '12 to '13
28,856
31,754
10.0%
Mkt. Share
YTD '13
Car
Light Truck
17,916
10,940
19,412
12,342
8.4%
12.8%
61.1%
38.9%
Detroit Three
European
Japanese
Korean
6,944
4,609
14,308
2,995
8,109
5,087
15,716
2,841
16.8%
10.4%
9.8%
-5.1%
25.5%
16.0%
49.5%
8.9%
Detroit Three consists of vehicles sold by GM, Ford, and Chrysler.
*Figures for March, 2013 were estimated by Auto Outlook.
Source: Polk.
36
San Diego Dealer
There’s nothing complicated about why radio advertising works. People love – really, really love –
their favorite radio stations. The music, news and personalities put them in a good mood and keep
them entertained throughout their day. And that puts them in a receptive mood for your message.
It’s not brain surgery. It’s radio, and we love our radio in San Diego. For more obvious insights,
contact Sharon Massey at 858-350-8854. Or visit sandiegoradio.com.
38
San Diego Dealer
SAN DIEGO RADIO BROADCASTERS ASSOCIATION
Local connections.
A statewide presence.
Specialized knowledge.
The Automobile
Dealer Practices Group
of CTSC continues to
represent auto dealers
in every aspect of their
operations.
Bob Thompson • Richard Ritchie • Kellie Christianson • Lee Sherman
Michael Sieving • Shane McCallan • George Koumbis • Sheldon Cohen
www.ctsclaw.com
1230 Columbia Street, Suite 930 San Diego, CA 92101 | (619) 232-5700
Your California Lawyers
Irvine | San Diego | San Francisco | Sacramento | Fresno
www.ctsclaw.com (949) 261-CTSC
New Car Dealers Association San Diego County
10065 Mesa Ridge Court
San Diego, CA 92121
This magazine is designed and published by The NewsLINK Group, LLC | 1.855.747.4003
Supplying Quality Product to New Car Dealers For Over 20 Years
Leather Interiors
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