Minnesota Automobile Dealers Association
Transcription
News January 2015 C&S Council News inside Collision & Service Council None other like it 175 members large and still growing strong… No Withdrawal Liability Relief Granted in 2014 NLRB Updates DVS Systems on Hold What were we getting into? Where would this go? MADA had no FAQ on Buyer’s Guide other auto dealer association after which to model creation of a collision and service group. We were starting from Watch for your invitation to the Council’s Third scratch and hoping it would Annual Auto Show Preview and Reception which will launch. What we did know be held Thursday, March 12th in our exhibit area. is that MADA dealerships wanted a home that upcoming events would advocate on behalf of the nucleus of their business: fixed mar operations… service, collision and parts. What started out as a Legislative Reception 10 mission to be more competitive with the independent shops has Twin Cities Auto Show since morphed into an entity that has become much bigger and mar Twin Cities Auto Show more significant than ever imagined. 7-15 As with anything new, and no history to go on, it’s a risk not knowing what lies ahead and “what’s in it for me.” But with the confidence and trust of those who signed on to the Collision & Service Council (CSC), our members embraced the Council’s vision for dealership fixed operations. The strong leadership of the Council’s Advisory Committee has been the clear voice of their peers. The Council has tackled insurer-mandated parts procurement programs and continues efforts to overcome insurance steering. It continues to expand our member library on regulatory, compliance and labor issues. It works with automotive schools to enhance their programs through our Trash-to-Treasure parts donation program. At the state level, the Council will be expanding the recruitment platform by advocating for stronger automotive programs in the high schools. Minneapolis mar Title Basics Minneapolis mar Certified Title Minneapolis 10 10 visit www.mada.org for details, registration and a complete list of Upcoming Events and Training C&S Council... continued on page 3 Scott Lambert, Executive Vice President • 200 Lothenbach Ave. • West St. Paul, MN 55118 • (651) 291-2400 • 1-800-652-9029 • FAX (651) 291-2894 MADA News Legislative News Watch your Mailbox No Withdrawal Liability Relief Granted in 2014 Hot off the press - the annual Yearbook and Buyer’s Guide Directory. 2-9029 0 • 1-800-65 651-291-240651-291-2894 Fax da.org www.ma 4 -291-289 0 • Fax 651 651-291-240 .gmada.com www 2015 Congress has passed very few bills this year, but made up for the lack of activity in a postelection lame duck session. In order to keep government running, Congress had to pass continuing resolutions (“CR”) to fund all functions of government. However, the CR legislation became a magnet for all types of bottled-up policy provisions and morphed into a what is now being referred to as a “CRomnibus” spending bill. YEARBOOK AND BUYER’S GUIDE DIRECTORY Unfortunately, efforts by a national coalition of dealers to find relief from pension withdrawal liability were not on the list and ended in disappointment when Congress instead passed a union-backed pension bill. DOWN ACROSS ly MN association forck 2 The on car and tru new franchised o dealers st __ __ inf s the mo 8 MADA ha leader of MADA ess h and life 10 Fearl ers healt off DA 12 MA ers for memb m MADA latest fro 14 Get the metro counterpart ’s d by 15 MADA ining offere tra e 16 Onlin MADA __ __ _ t new car DA 17 Love tha er with your MA eth 18 Get tog es colleagu ion litical act 1 MADA po e committe for dealers at the out 3 Looking h Capitol __ __ _ wit nities to 4 Opportu ining MADA tra magazine quarterly 5 MADA’s n MADA exists so 6 The rea se when ny of the 7 Sign ma car buying a e counsel hous vice 9 Our in_ __ __ ad car sales provides on __ __ data m MADA 11 MADA ur swag fro 13 Get yo _ __ __ __ 1/17/15 plit.indd 2015Yrbk_s 9:59 PM 1 The new law allows opportunities for multiemployer pension plans in critical condition to cut some benefits and give themselves a longer lifespan. However, the new law contains nothing on withdrawal liability. The two authors, John Kline (GOP-MN) and George Miller (Dem-CA), negotiated the proposal in secret, allowing no input from anyone, even Senators involved in the debate. The proposal was slipped into the $1.1 trillion CRomnibus package in the House just two days before the final vote. No amendments were allowed. The Minnesota Automobile Dealers Association is a non-profit trade association dedicated to the progress of the retail auto industry in Minnesota. President Greg House, House Chevrolet, Stewartville President-Elect Mike Saxon, Inver Grove Ford Lincoln, Inver Grove Heights Treasurer Rick Jensen, Jensen Motors, Inc., New Ulm Secretary Michael Stanzak, Key Cadillac, Inc., Edina Executive Vice President Scott Lambert, MADA Executive Vice President 200 Lothenbach Avenue • West St. Paul, MN 55118 Metro: 651-291-2400 • Toll Free: 800-652-9029 FAX: 651-291-2894 • Web site: http://www.mada.org January 2015 / Page 2 The final bill was essentially the proposal advanced by the National Coordinating Commission on Multi-Employer Pension Plans (NCCMP). While a few employers belong to this group, it was housed and run by powerful union interests. MADA, along with other automotive trade groups around the country, are assessing the possibility of further action on this issue in 2015. C&S Council... continued from cover To address the needs of our future workforce, the Council was elated to have been awarded a $25,000 grant to pilot an automotive summer NitroX camp for youth, with plans to expand this program statewide over the next few years. And most recently, the Council was pleased to have been invited to serve on a committee to request federal grants for apprentices entering or currently in automotive programs. As you can see, the efforts and successes of the Council’s initiatives are quickly establishing a presence in the industry, gaining recognition among our leaders and educators. Of course, we couldn’t do all that we do without the continued support of our members, committee volunteers, and sponsors. The Council has maintained 100% membership retention since its inception. Thank you, members! So you ask, what’s next? Watch for a Recruitment “Tool Kit” in the coming months, a resource for members to use in the search for quality mechanics and technicians. And be sure not to miss our exhibit at the Twin Cities Auto Show in March. The Council is excited to unveil a consumer interactive and educational exhibit to demonstrate the advantages of taking their vehicle to a dealership for repair work and proper vehicle care. Watch for your invitation to the Council’s Third Annual Auto Show Preview and Reception which will be held Thursday, March 12th in the CSC exhibit area. In a little more than two years, what started out as a reaction to negative dealership advertising has developed into a strong and growing organization that has taken the high road for the benefit of dealerships and the entire industry: MADA’s Collision & Service Council. “Nobody knows your car better than your dealer” ...what started out as a reaction to negative dealership advertising has developed into a strong and growing organization that has taken the high road for the benefit of dealerships and the entire industry Shell of the RC Car NitroX Summer Camp students will build, paint and decal. January 2015 / Page 3 Legal News Fraud Alert Leads to Arrest Late last year, an outstate Chrysler dealer contacted MADA about a crook passing bad checks at his store. MADA published a Fraud Alert via email to our 900 or so email list subscribers. We had a police report in hand which allowed us to name names in the Fraud Alert notice. As it turns out, a Mankato dealer had just delivered three used trucks to the bad guy, saw the MADA alert and contacted the police. The police worked with the dealership to set up surveillance which lead them to the suspect and the arrest. Every so often there’s a success story. We’re pleased about this one. Interested in seeing MADA Fraud Alerts in your inbox? Sign up here: http://bit.ly/MADAmail Legislative News Business as Usual at Driver and Vehicle Services In late December, MADA staff met with top officials from Minnesota’s Driver and Vehicle Services (DVS) to discuss any agency initiatives that could impact dealer operations. The good news: no additional changes are planned that could adversely impact dealers. The bad news: no immediate developments are planned that could enhance motor vehicle transactions. The Good News After last legislative session’s contentious fight on the release and use of motor vehicle records in bulk, the agency is planning no further initiatives on the use of bulk data. This is welcome news, as the agency had been contemplating creating a new subscriber system for accessing the data, which could have added cost and delays to its retrieval. One note of caution: while the agency has no plans to change the system, legislators may have other ideas. The Legislative Commission on Data Practices has been charged with reviewing the protocols for using the data as allowed under federal law and could produce its own proposal for accessing motor vehicle records in bulk. January 2015 / Page 4 The Bad News The Minnesota Licensing and Registration System (MNLARS ) project which was authorized in 2008 to create a Web-based system to streamline and integrate vehicle title, registration and inspection processes is still a few years from launching. MNLARS has been plagued by hiccups, the most recent of which was the cancellation of its contract with Hewlett Packard (HP), the vendor who was overseeing development of the new system. In the fall of 2014, DVS took over management of the project and has reprioritized the four stages of project implementation. Finance, dealer licensing and inspection functions, which were underway when the HP contract was canceled, have been postponed so the agency can work on vehicle titling and registration functions in order to meet deadlines established by the Legislature. Advancement of dealer programs is still over a year away, with outreach and training to system users at least two years. Until MNLARS is fully functional, additional efficiencies like electronic lien release will not be incorporated into the system. Minnesota Auto Outlook Covering the Minnesota automotive market Data thru October 2014 Released by: Minnesota Automobile Dealers Association Minnesota New Retail Car and Light Truck Registrations Industry Total Cars Light Trucks Most Recent Two Months 9/13 & 9/14 & 10/13 10/14* 32,978 35,599 12,958 12,781 20,020 22,818 % change 7.9% -1.4% 14.0% YTD thru Oct* 2013 169,590 70,850 98,740 2014 175,847 66,491 109,356 % change 3.7% -6.2% 10.8% YTD Market Share (thru Oct)* Japanese Brands Toyota Honda Nissan Other 11,187 4,133 2,827 1,916 2,311 12,763 4,544 3,171 2,109 2,939 14.1% 9.9% 12.2% 10.1% 27.2% 57,735 22,012 15,727 8,922 11,074 61,892 22,226 16,218 9,460 13,988 Domestic Brands General Motors Ford Chrysler Other 17,195 7,303 6,460 3,400 32 18,535 7,811 6,313 4,387 24 7.8% 7.0% -2.3% 29.0% -25.0% 87,996 37,109 32,210 18,517 160 European Brands Volkswagen BMW Mercedes Other 2,202 1,055 562 331 254 2,076 1,029 548 287 212 -5.7% -2.5% -2.5% -13.3% -16.5% Korean Brands 2,394 2,225 -7.1% 2013 2014 change 41.8 58.2 37.8 62.2 -4.0 4.0 7.2% 1.0% 3.1% 6.0% 26.3% 34.0 13.0 9.3 5.3 6.5 35.2 12.6 9.2 5.4 8.0 1.2 -0.4 -0.1 0.1 1.5 92,031 37,356 31,895 22,620 160 4.6% 0.7% -1.0% 22.2% 0.0% 51.9 21.9 19.0 10.9 0.1 52.3 21.2 18.1 12.9 0.1 0.4 -0.7 -0.9 2.0 0.0 11,501 5,655 2,916 1,576 1,354 10,582 5,196 2,593 1,663 1,130 -8.0% -8.1% -11.1% 5.5% -16.5% 6.8 3.3 1.7 0.9 0.8 6.0 3.0 1.5 0.9 0.6 -0.8 -0.3 -0.2 0.0 -0.2 12,358 11,342 -8.2% 7.3 6.4 -0.9 Brands included above: Domestic Brands: GM (Buick, Cadillac, Chevrolet, and GMC), Ford (Ford and Lincoln), Chrysler (Chrysler, Dodge, and Jeep). Japanese: Toyota (Toyota, Lexus, and Scion), Honda (Honda and Acura), Nissan (Nissan and Infiniti), Other (Mazda, Mitsubishi, and Subaru). European: VW (Audi, Bentley, Porsche, and Volkswagen), BMW (BMW, Rolls Royce, and MINI), MB (Mercedes Benz and smart), Other (Aston Martin, Ferrari, Fiat, Jaguar, Land Rover, Lotus, Maserati, and Volvo). Korean: Hyundai and Kia. *Figures for October 2014 were estimated by Auto Outlook. Data Source: Polk. Percent Change in Three Month Moving Average of New Retail Registrations versus Same Period Year Earlier % change vs. year earlier 15.0% 11.7% 7.8% 10.0% 5.0% Percent Change in State and U.S. New Retail Light Vehicle Markets YTD ‘14 thru October* vs. YTD ‘13 9.4% 6.1% 2.0% -6.2% State 10.8% 0.0% -0.9% -5.0% -10.0% -6.9% -2.4% -4.9% -5.0% Cars -8.7% -9.3% 2.3% Trucks U.S. -15.0% 10.3% -20.0% Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14Oct-14* Last month in period -15.0% The graph above provides a clear picture of the trending direction of the state market. It shows the year-overyear percent change in the three month moving average of new retail light vehicle registrations. The three month moving average is less erratic than monthly registrations, which can fluctuate due to such factors as the timing of manufacturer incentive programs, weather and title processing delays by governmental agencies. *Figures for October 2014 were estimated by Auto Outlook. Data Source: Polk. -5.0% 5.0% 15.0% 25.0% The graph above compares the change in new retail car and light truck registrations in both the state and U.S. markets. *Figures for October 2014 were estimated by Auto Outlook. Data Source: Polk. Data Information All data represents new vehicle retail registrations in Minnesota and excludes fleet and wholesale transactions. Please keep in mind that monthly registration figures can occasionally be subject to fluctuations, resulting in over or under estimation of actual results. This usually occurs due to processing delays by governmental agencies. For this reason, the yearto-date figures will typically be more reflective of market results. Data Source: Polk. January 2015 / Page 5 Minnesota Auto Outlook Data thru October 2014 Minnesota New Retail Light Vehicle Registrations Registrations TOTAL Acura Audi BMW Buick Cadillac Chevrolet Chrysler Dodge FIAT Ford GMC Honda Hyundai Infiniti Jaguar Jeep Kia Land Rover Lexus Lincoln Mazda Mercedes MINI Mitsubishi Nissan Other Porsche Ram Subaru Tesla Toyota Volkswagen Volvo YTD '13 YTD '14 thru Oct thru Oct* % change 169,590 175,847 4% 1,305 1,342 3% 1,160 1,420 22% 2,301 2,134 -7% 3,386 3,342 -1% 1,316 1,238 -6% 26,354 26,254 0% 3,390 2,922 -14% 5,745 5,905 3% 272 236 -13% 31,282 30,931 -1% 6,053 6,488 7% 14,422 14,876 3% 5,781 5,280 -9% 687 743 8% 44 49 11% 4,455 7,636 71% 6,577 6,082 -8% 311 279 -10% 1,767 1,937 10% 928 920 -1% 3,607 3,748 4% 1,554 1,659 7% 615 456 -26% 878 1,820 107% 8,235 8,694 6% 232 201 -13% 182 235 29% 4,927 6,170 25% 6,502 8,442 30% 79 69 -13% 20,245 20,293 0% 4,313 3,535 -18% 685 511 -25% State Market Share for Top 15 Selling Brands YTD ‘14 thru October* vs. YTD ‘13 Market share YTD '13 YTD '14 thru Oct thru Oct* 0.8% 0.7% 1.4% 2.0% 0.8% 15.5% 2.0% 3.4% 0.2% 18.4% 3.6% 8.5% 3.4% 0.4% 0.0% 2.6% 3.9% 0.2% 1.0% 0.5% 2.1% 0.9% 0.4% 0.5% 4.9% 0.1% 0.1% 2.9% 3.8% 0.0% 11.9% 2.5% 0.4% 0.8% 0.8% 1.2% 1.9% 0.7% 14.9% 1.7% 3.4% 0.1% 17.6% 3.7% 8.5% 3.0% 0.4% 0.0% 4.3% 3.5% 0.2% 1.1% 0.5% 2.1% 0.9% 0.3% 1.0% 4.9% 0.1% 0.1% 3.5% 4.8% 0.0% 11.5% 2.0% 0.3% 17.6 18.4 Ford 14.9 15.5 Chevrolet 11.5 11.9 Toyota 8.5 8.5 Honda Nissan 4.9 4.9 Subaru 4.8 3.8 4.3 Jeep 2.6 GMC 3.7 3.6 Ram 3.5 2.9 3.5 3.9 Kia Top ten ranked brands in each percent change category are shaded green. *Figures for October 2014 were estimated by Auto Outlook. 3.4 3.4 Dodge Source: Polk 3.0 3.4 Hyundai This report is sponsored by the Minnesota Automobile Dealers Association and produced by Auto Outlook (800-206-0102). Volkswagen Reproduction, including photocopying of this publication in whole or in part, is prohibited without the express permission of Auto Outlook, Inc. Any material quoted must be attributed to Minnesota Auto Outlook, published by Auto Outlook, Inc. on behalf of the Minnesota Automobile Dealers Association and must also include the statement: “Data Source: Polk.” Buick YTD '13 thru Oct 2.1 2.1 Mazda Auto Outlook, Inc. is not responsible for management decisions based on the content of Minnesota Auto Outlook. Copyright Auto Outlook, November 2014. YTD '14 thru Oct* 2.0 2.5 1.9 2.0 0.0 5.0 10.0 15.0 Market Share *Figures for October 2014 were estimated by Auto Outlook. Source: Polk. January 2015 / Page 6 20.0 Member News Condolences are extended to the friends and family of Bruce Roger Cressy of Cokato who passed away on January 7. Bruce was the owner of Cokato Motor Sales from 1966-2003. Legal News NLRB Quickie Election Rule Adopted and Immediately Challenged in Court The National Labor Relations Board adopted a final rule on December 12, 2014 changing union election procedures and streamlining dispute resolution. The rule is scheduled to take effect on April 14, 2015. Endorsed Service & Vendors Computerized Vehicle Registration CVR F&I Products Protective Dealership Marketing Visible Customer Group Health Insurance Blue Cross Blue Shield of MN Delta Dental ReliaStar Life The most controversial portion of the new rule calls for what opponents dub as “quickie elections,” substantially shortening the time between a union election petition and the election itself. Telling the management story takes time. Under existing NLRB procedures, once the union files an election petition, it’s typically 42 days until the actual election occurs. The final rule provides for elections to be held as soon as 10 to 21 days after the union files the petition with the NLRB. These “quickie elections” are unfortunate for dealerships and their employees; there’s just not enough time to fully discuss and air out the issues. Workers Compensation Ensure Agency Several business trade groups responded immediately by filing a lawsuit on January 5, 2015 to block the new rule alleging that the NLRB overstepped its authority. The plaintiffs allege that the new rule violates federal law, in part by curtailing an employer’s right to communicate with employees. The groups, which filed suit in U.S. District Court for the District of Columbia, say they collectively represent millions of employers and human-resource professionals throughout the United States. OSHA, EPA & DOT Compliance/Training ComplyNet Corporation Dealer Bond Program Ensure Agency Collections Springer Collections Check Guarantee/Credit Card Processing FIS / Certegy Disability Income Insurance & Section 125 Cafeteria Plans American Fidelity Assurance Fleet Fueling Program SuperAmerica Office Supplies S & T Office Products Uniforms and Linen Services AmeriPride Linen & Apparel Services Hole-In-One Insurance Hole-In-One-USA Pre-Paid Legal, Jim Gavin Identity Theft Shield & Pre-Paid Legal Services MADA Services sells a wide variety of products directly to the dealers including business forms, clothing and promotional items. For a full review of options, contact your sales representative at 651-291-2400 or go to www.mada.org January 2015 / Page 7 200 Lothenbach Avenue West St. Paul, MN 55118 ADVOCACY • EXPERTISE • EDUCATION • COMMUNICATION MADA NEWS • JANUARY 2015 FAQ Q: The Buyers Guide window stickers that we put on used cars - I heard that the federal government is changing the look and content of this required form. I don’t want to get stuck with a bunch of obsolete forms. Should I start working my supply down now? A: Not yet. The Buyers Guide discloses whether a dealer is offering to sell a used car with a warranty or “as is.” If the vehicle comes with a warranty, the Buyers Guide discloses the terms and conditions and the vehicle systems that the warranty covers. It’s true that the Federal Trade Commission (FTC) is looking to change the form which has been around since 1985. The biggest proposed change concerns vehicle history reports - CARFAX, AutoCheck and the like. The FTC plans to require dealers who obtain a vehicle history report to indicate that fact on the Buyers Guide and provide a copy to consumers upon request. This is all “proposed” right now; more changes could well be in the offing. Any final rule with mandatory compliance is almost certainly at least a year away. The MADA forms department is closely monitoring the FTC action. Scott Lambert, Executive Vice President • 200 Lothenbach Ave. • West St. Paul, MN 55118 • (651) 291-2400 • 1-800-652-9029 • FAX (651) 291-2894 Education Fax Registration FAX REGISTRATION TO: 651-291-2894 Denise Anderson [email protected] Title Basics The Certified Title & Registration Program Class Options Circle Preferred Date Title Basics – Minneapolis March 10, 2015 Location Doubletree by Hilton Park Place Class Options Sales Tax Circle Preferred Date Location 9:30 a.m. - 11:30 a.m. $199 9:00 a.m. - 10:00 a.m. $129 New to Fleet 10:30 a.m. - 12:30 p.m. $129 March 10, 2015 March 10, 2015 Minnesota Titles and Transfers March 10, 2015 1:00 p.m. – 3:00 p.m. $129 1500 Park Place Blvd Minneapolis, MN 55416 Doubletree by Hilton Park Place 1500 Park Place Blvd Minneapolis, MN 55416 Name__________________________________________ Title____________________________ Name__________________________________________ Title____________________________ Dealership______________________________________ Customer ID #____________________ Address________________________________________________________________________ Phone______________________________ E-mail______________________________________ For Information on these classes or to register online go to www.mada.org/training
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