News - MADA

News
November 2014
Legislative News
inside
Election 2014 Results
The Status Quo Statewide; Leadership Change
at the Legislature
On Tuesday, Nov. 4, Minnesotans went to the polls and managed to
buck national trends. While many Democratic governors and U.S.
Senators were voted out of office around the country, both DFL
Governor Mark Dayton and Senator Al Franken were re-elected
with significant margins over their opponents. With a majority of
Minnesotans believing the state is on the right track and with low
unemployment rates, voters here did not feel the need “to throw
the bums out.” Instead, they gave Dayton and Franken their biggest
ever electoral victories over Jeff Johnson and Mike McFadden,
respectively. Beyond a positive environment for the incumbents,
the GOP candidates were challenged by a lack of resources from
the party and recognition by the public. Furthermore, outside
groups spent a significant amount of money to define Johnson and
McFadden in a negative light, and those characterizations were
never successfully refuted.
Election Results... continued on page 3
C&S Council Member Renewal
Fun Auction Items Planned
Lame Duck Watch
FAQ on ‘‘As Is”
New Auto Show Staff
upcoming events
dec
MADA Annual Meeting
Minneapolis
dec
OSHA Injury Recordkeeping
webinar
jan
Title Basics
Minneapolis
jan
Certified Title
Minneapolis
5
17
13
13
visit
www.mada.org
for details, registration
and a complete list of
Upcoming Events and
Training
Scott Lambert, Executive Vice President • 200 Lothenbach Ave. • West St. Paul, MN 55118 • (651) 291-2400 • 1-800-652-9029 • FAX (651) 291-2894
C&S Council News
Membership
Opportunities
It was just two years ago that MADA launched the
Collision & Service Council to help promote and
support your repair and body shops. But as many
of you know, this entity has become much bigger
and more significant than ever imagined.
Today, the Council is pleased to have been
awarded a $25,000 grant to pilot an automotive
summer camp for youth to address the need for
a future workforce. Tackling insurer-mandated
parts procurement programs is part of an effort to
overcome insurance steering. Other key priorities
are working with automotive schools to enhance
programs and expanding the member library on
regulatory, compliance and labor issues. Next up,
the Council will develop an interactive booth at
the Twin Cities Auto Show to promote dealership
repair work.
With continued effort, the Council’s initiatives
have quickly established a presence in the
Council News... continued on page 7
The Minnesota Automobile Dealers Association is a
non-profit trade association dedicated to the progress of the retail auto
industry in Minnesota.
President
Morrie Wagener, Morrie’s Automotive Group, Minnetonka
President-Elect
Greg House, House Chevrolet, Stewartville
Treasurer
Mike Saxon, Inver Grove Ford Lincoln, Inver Grove Heights
Secretary
Rick Jensen, Jensen Motors, Inc., New Ulm
Executive Vice President
Scott Lambert, MADA
200 Lothenbach Avenue • West St. Paul, MN 55118
Metro: 651-291-2400 • Toll Free: 800-652-9029
FAX: 651-291-2894 • Web site: http://www.mada.org
November 2014 / Page 2
NADA News
Lame Duck Watch
In this post-election environment, as the US
Senate prepares to flip control to the GOP and
the House Republicans look for more offices,
the business of governing goes on. A NovemberDecember “Lame Duck” session will allow
Congress to finish its year-end business. Lame
Duck sessions are always filled with some drama
and even awkwardness as legislators who lost
their elections--but are technically still in office
until the end of the year--are allowed to debate,
vote and shape bills. In this environment, MADA
is closely pursuing two important pieces of
legislation:
Withdrawal Liability Reform
MADA is leading a national coalition of dealers
with distressed union pension plans and heavy
withdrawal liability obligations to seek relief from
this problem. A bipartisan coalition of Senators
and Congressman, with leadership from the
Minnesota delegation, is trying to attach our
proposal to legislation before year’s end.
Consumer Financial Protection Bureau
MADA is following NADA’s lead to secure
passage of HR 5403, a bill to revoke the
guidance issued by the CFPB earlier this year
on automobile financing. The bill requires the
agency to work through a traditional rulemaking
process that would make their data transparent.
NADA has over 120 cosponsors; MADA is doing
its share by petitioning our delegation to sign onto
the bill.
visit us online at
www.mada.org
GMADA News
New Auto Show Staff
Mary Velline joined the team this
month as Co-Director of the 2015 Twin
Cities Auto Show with the Show’s
long-time director, Sandy Brom.
Election Results... continued from cover
That being said, the victories at the top of the ticket for Democrats did not translate into wins further
down the ballot. Democrats lost 11 seats and control of the Minnesota House of Representatives.
The GOP only needed to pick up seven seats to change the majority, and succeeded by knocking
out ten incumbents in greater Minnesota and one in the metro. Republicans were successful at
branding rural Democrats as being too supportive of the Twin Cities at the expense of their districts.
In addition, passage of legislation to legalize gay marriage put several representatives in conflict
with their constituents, who voted at the ballot box to constitutionally ban gay marriage in 2012. And
lastly, Minnesotans are renowned ticket-splitters; we often view “checks and balances” to mean
having different parties control different parts of government. Over the last 55 years, Minnesota state
government has been divided 75% of the time.
No Upsets in Congressional Races
This year’s congressional contests featured two very high-profile races in Minnesota’s Seventh
and Eighth Congressional Districts. However, both incumbents, Congressmen Rick Nolan (DFL-8)
and Colin Peterson (DFL-7), will be returning to Washington in January. Nolan faced a significant
challenge from Stewart Mills, who many pundits believed had the charisma and following to knock
off the representative. In the final tally, voters returned Nolan to office by a narrow margin of 1.39%.
Peterson, who will be serving his 13th term, won by over 8.5%, but state legislator Torrey Westrom
gave him his toughest race, as Peterson historically has won with by margins of 20-40%!
The only new face in the delegation will be that of Tom Emmer (R-6), who will be taking over the open
seat held by Michele Bachmann.
Outside Spending Makes an Impact in Legislative Races
Driving MN Supports Three Winning Candidates!
Since the 2010 ruling in Citizens United - the
landmark case where the Supreme Court
ruled that the government could not prohibit
independent political expenditures by nonprofit
and for-profit corporations, labor unions and other
associations – the amount of spending by outside
groups in campaigns has increased dramatically.
In 2012, when Democrats swept control of the
Minnesota Legislature, left-leaning organizations
far outspent business groups. In 2014, MADA
and other members of the business community
wanted to ensure that did not happen again. We
worked through our independent expenditure
group, Driving MN, in support of businessfriendly candidates to flip the MN House of
Representatives and regain a balance of ideas
in the policymaking process. Our efforts to reach
voters on behalf of candidates in three legislative
districts – 11B, 12A, and 27A – helped to convince
voters that a change was needed. All three
candidates were victorious.
MADA News
2015 Dues Billing
The 2015 dues invoices are in the mail. MADA is committed to supporting its members with expertise
on the most current developments in the legislative, regulatory and legal spheres. Your dues support
is necessary for us to carry out these responsibilities. We appreciate the trust you place in MADA.
Please call on us if you have any questions or concerns.
November 2014 / Page 3
MADA Foundation News
Don’t Miss ‘‘Lunch with the Presidents” and More
2014 Annual Meeting to Feature Inaugural “Dealers Deliver” Silent Auction
In conjunction with our 2014 Annual Meeting on Friday, Dec. 5, MADA will hold its inaugural “Dealers
Deliver Silent Auction” to benefit the philanthropic work of the MADA Foundation. The Foundation is a
non-profit charity that that supports resources for automotive education programs for Minnesota high
school students.
Don’t miss the opportunity to bid on lunch with past presidents of MADA, Timberwolves basketball
tickets, a flat screen television - and many more awesome items. As education dollars continue to
shrink, the MADA Foundation does incredible work to continue investment in needed auto repair and
shop programs that could vanish without our financial support. We hope you will be at the Annual
Meeting and support ways “Dealers Deliver” to our local communities.
DEAC News
2014 DEAC Goal Surpassed!
Thank you to the 21 dealers listed below who helped us surpass our 2014 Dealers Election Action
Committee (DEAC) fundraising goal by over 15%! The $20,800 we raised was used this election cycle
to support pro-dealer, pro-business Congressional candidates on a bipartisan basis. We appreciate
the support of our members in helping us to ensure that the interests of franchised dealers are
represented in Washington.
Steve Bennett .................Lexus of Wayzata, Wayzata
Steve Bloomer ................Village Automotive Group, Wayzata
Tony Brown .....................Burnsville Toyota Scion, Inc., Burnsville
David Buerkle .................Buerkle Acura, Brooklyn Park
Chuck Ellingson ..............O.C. Ellingson, Inc., Caledonia
Julie Feldmann ...............Feldmann Imports, Inc., Bloomington
David Golinvaux .............Roseville Chrysler Jeep Dodge Ram, Roseville
Thane Hawkins ...............Thane Hawkins Polar Chevrolet, Inc., White Bear Lake
Bruce Kittilstved .............Coon Rapids Chrysler Dodge Jeep RAM, Coon Rapids
Peter Kolar ......................Kolar Toyota Scion, Duluth
Chester Lockwood .........Lockwood Motors, Inc., Marshall
Robert Lockwood ...........Lockwood Motors, Inc., Marshall
Jeff Lupient .....................Lupient Automotive Group, Golden Valley
Thomas Miller .................Miller Auto Plaza, St. Cloud
Bruce Rinkel ...................Merit Chevrolet, Maplewood
Dick Sjoquist ...................Burnsville Toyota Scion, Inc., Burnsville
Randy Stevens ...............Adamson Motors, Inc., Rochester
Paul Strong .....................Waconia Dodge Chrysler Jeep, Waconia
Mark Swelland ................New Prague Auto Group
Bernie Wagnild ...............Valley Automotive Group, Apple Valley
Paul Walser .....................Walser Automotive Group
November 2014 / Page 4
Minnesota Auto Outlook
Covering the Minnesota automotive market
Data thru September 2014
Released by:
Minnesota Automobile
Dealers Association
Minnesota New Retail Car and Light Truck Registrations
Industry Total
Cars
Light Trucks
Most Recent Two Months
8/13 &
8/14 &
9/13
9/14*
36,008
37,590
14,669
14,068
21,339
23,522
%
change
4.4%
-4.1%
10.2%
YTD thru Sept*
2013
154,289
64,990
89,299
2014
159,121
60,665
98,456
%
change
3.1%
-6.7%
10.3%
YTD Market Share (thru Sept)*
Japanese Brands
Toyota
Honda
Nissan
Other
12,964
5,101
3,453
2,005
2,405
13,571
4,881
3,530
2,202
2,958
4.7%
-4.3%
2.2%
9.8%
23.0%
52,528
20,171
14,297
8,094
9,966
55,621
19,921
14,564
8,647
12,489
Domestic Brands
General Motors
Ford
Chrysler
Other
18,049
7,479
6,715
3,822
33
19,244
7,940
6,733
4,555
16
6.6%
6.2%
0.3%
19.2%
-51.5%
79,968
33,523
29,297
17,002
146
European Brands
Volkswagen
BMW
Mercedes
Other
2,306
1,208
486
353
259
2,231
1,059
568
343
261
-3.3%
-12.3%
16.9%
-2.8%
0.8%
Korean Brands
2,689
2,544
-5.4%
2013
2014
change
42.1
57.9
38.1
61.9
-4.0
4.0
5.9%
-1.2%
1.9%
6.8%
25.3%
34.0
13.1
9.3
5.2
6.5
35.0
12.5
9.2
5.4
7.8
1.0
-0.6
-0.1
0.2
1.3
83,435
33,828
29,045
20,421
141
4.3%
0.9%
-0.9%
20.1%
-3.4%
51.8
21.7
19.0
11.0
0.1
52.4
21.3
18.3
12.8
0.1
0.6
-0.4
-0.7
1.8
0.0
10,490
5,174
2,665
1,416
1,235
9,599
4,658
2,316
1,561
1,064
-8.5%
-10.0%
-13.1%
10.2%
-13.8%
6.8
3.4
1.7
0.9
0.8
6.0
2.9
1.5
1.0
0.7
-0.8
-0.5
-0.2
0.1
-0.1
11,303
10,466
-7.4%
7.3
6.6
-0.7
Brands included above: Domestic Brands: GM (Buick, Cadillac, Chevrolet, and GMC), Ford (Ford and Lincoln), Chrysler (Chrysler, Dodge, and Jeep). Japanese: Toyota (Toyota, Lexus,
and Scion), Honda (Honda and Acura), Nissan (Nissan and Infiniti), Other (Mazda, Mitsubishi, and Subaru). European: VW (Audi, Bentley, Porsche, and Volkswagen), BMW (BMW, Rolls
Royce, and MINI), MB (Mercedes Benz and smart), Other (Aston Martin, Ferrari, Fiat, Jaguar, Land Rover, Lotus, Maserati, and Volvo). Korean: Hyundai and Kia.
*Figures for September 2014 were estimated by Auto Outlook. Data Source: Polk.
Percent Change in Three Month Moving Average of
New Retail Registrations versus Same Period Year Earlier
% change vs. year earlier
40.0% 35.3%
30.0%
Percent Change in State and U.S.
New Retail Light Vehicle Markets
YTD ‘14 thru September* vs. YTD ‘13
23.8% 23.0%
-6.7%
State
20.0%
10.3%
8.1%
10.0%
2.2%
0.0%
-10.0%
-20.0%
-1.1% -2.5%
-6.9% -8.7%
-9.3%
Cars
-4.9% -4.8%
2.3%
Trucks
U.S.
10.8%
Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14Sep-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 September 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 September 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.
November 2014 / Page 5
Minnesota Auto Outlook
Data thru September 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 Sep thru Sep* % change
154,289 159,121
3%
1,171
1,241
6%
1,047
1,281
22%
2,093
1,897
-9%
3,074
3,017
-2%
1,156
1,113
-4%
23,870
23,829
0%
3,172
2,654
-16%
5,318
5,421
2%
255
226
-11%
28,455
28,142
-1%
5,423
5,951
10%
13,126
13,312
1%
5,253
4,878
-7%
605
670
11%
42
51
21%
3,995
6,726
68%
6,050
5,600
-7%
278
255
-8%
1,592
1,739
9%
842
809
-4%
3,282
3,405
4%
1,397
1,533
10%
572
426
-26%
744
1,614
117%
7,489
7,962
6%
216
153
-29%
158
202
28%
4,517
5,631
25%
5,853
7,476
28%
71
67
-6%
18,579
18,185
-2%
3,969
3,179
-20%
625
476
-24%
State Market Share for Top 15 Selling Brands
YTD ‘14 thru September* vs. YTD ‘13
Market share
YTD '13 YTD '14
thru Sep thru Sep*
0.8%
0.7%
1.4%
2.0%
0.7%
15.5%
2.1%
3.4%
0.2%
18.4%
3.5%
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%
12.0%
2.6%
0.4%
0.8%
0.8%
1.2%
1.9%
0.7%
15.0%
1.7%
3.4%
0.1%
17.7%
3.7%
8.4%
3.1%
0.4%
0.0%
4.2%
3.5%
0.2%
1.1%
0.5%
2.1%
1.0%
0.3%
1.0%
5.0%
0.1%
0.1%
3.5%
4.7%
0.0%
11.4%
2.0%
0.3%
17.7
18.4
Ford
15.0
15.5
Chevrolet
11.4
12.0
Toyota
8.4
8.5
Honda
5.0
4.9
Nissan
4.7
3.8
Subaru
4.2
Jeep
2.6
GMC
3.7
3.5
Ram
3.5
2.9
3.5
3.9
Kia
Top ten ranked brands in each percent change category are shaded green.
*Figures for September 2014 were estimated by Auto Outlook.
3.4
3.4
Dodge
Source: Polk
3.1
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 Sep
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, October 2014.
YTD '14
thru Sep*
2.0
2.6
1.9
2.0
0.0
5.0
10.0
15.0
Market Share
*Figures for September 2014 were estimated by Auto Outlook.
Source: Polk.
November 2014 / Page 6
20.0
Member News
Eden Prairie Nissan has now opened their doors at 12790 Plaza
Drive after moving from Bloomington. Steve McDaniels is the
Owner. Andy Hulcher is the General Manager.
The Tom Automotive group (Tom Wood, president) has moved
its Mitsubishi store from Bloomington to Richfield and will be doing
business as Richfield Bloomington Mitsubishi at 401 W. 77th
Street. Brent Wade is the General Manager.
Endorsed Service & Vendors
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
FAQ
Q:
We took an old 1-ton pickup on trade. The catalytic converter
is gone. We have a local customer who is willing to buy the truck
“As Is” without the PCA equipment. Is it OK for us to sell it to him?
A:
No. Minnesota Statute §325E.0951 prohibits the sale of any
vehicle – old or new, car or truck – by a seller who has “knowledge
that any air pollution control system is either not in place or is not
functional.”
The statute is a criminal statute which provides for misdemeanor
penalties. The law is designed to protect the public at large. Even if
the buyer knows and agrees, the sale is still illegal.
Your legal options with the vehicle:
1. Fix it
2. Junk it
3. Sell it out-of-state
The statute is here: http://bit.ly/112onBx
Council News.. continued from pg. 2
industry and membership is growing. The Council’s Advisory
Council members lend focus from their perspective as service,
collision and parts professionals.
Renewal letters will be sent to the current 170 members and nonmembers will be invited to join and keep the momentum going
for dealership fixed operations. Annual dues are $125 for the
first member and $25 for each subsequent member at the same
rooftop. There is strength in numbers. Together, we can make great
strides for our dealership fixed operations.
Thank you for your support!
Workers Compensation
Ensure Agency
Dealer Bond Program
Ensure Agency
Collections
Springer Collections
Check Guarantee/Credit Card Processing
FIS / Certegy
Disability Income Insurance & Section 125
Cafeteria Plans
American Fidelity Assurance
OSHA, EPA & DOT Compliance/Training
ComplyNet Corporation
Fleet Fueling Program
SuperAmerica
Office Supplies
S & 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
November 2014 / Page 7
200 Lothenbach Avenue
West St. Paul, MN 55118
ADVOCACY • EXPERTISE • EDUCATION • COMMUNICATION
MADA NEWS • NOVEMBER 2014
“Presidents with strong nerves are decisive.
They don’t balk at unpopular decisions. They
are willing to make people angry. Bush had
strong nerves. Clinton, who passed up a
chance to eliminate Osama bin Laden, did
not. Obama is a people pleaser, a trait not normally
associated with nerves of steel.”
--Fred Barnes
MADA Annual Meeting Keynote Speaker Fred Barnes on Friday, Dec. 5th.
Mark your calendar now!
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]
Class Options
Circle Preferred Date
Location
10:00 a.m. – 11:00 a.m.
Free to Council Members
$49 non-members
December 17, 2014
Webinar
Class Options
Circle Preferred Date
Title Basics – Minneapolis
January 13, 2015
Location
Doubletree by Hilton Park Place
Class Options
Sales Tax
Circle Preferred Date
Location
OSHA Record OSHA Record Keeping Keeping
Title Basics
The Certified
Title &
Registration
Program
Webinar
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
January 13, 2015
January 13, 2015
Minnesota Titles and Transfers January 13, 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