2012 - Orange County Automobile Dealers Association OCADA

WINTER 2012
Volume 52, Issue 1
OCADA Annual
Meeting
Speaker Cal Ripken, Jr.
THE OFFICIAL PUBLICATION OF THE ORANGE COUNTY AUTOMOBILE DEALERS ASSOCIATION
OC Dealer is a publication of Media
Communications Group and is the of ficial
publica t ion of Or ange Coun t y Au tomobile
Dealers Association. OC Dealer is published 4
times per year by Media Communications Group.
The statements and opinions expressed herein
are those of the individual authors and do not
necessarily represent the views of OC Dealer,
or its publisher Media Communications Group.
Any legal advice should be regarded as general
information. It is strongly recommended that one
contact an attorney for counsel regarding specific
circumstances. Likewise, the appearance of
advertisers does not constitute an endorsement
of the products or services featured by Media
Communications Group.
6
AN INTERVIEW WITH BRUCE HAMLIN
4 Calendar of Events
6 President’s Message
11 OCADA Welcomes Our New Dealer and
13
TECHNOLOGY COMPETITION
14
OCADA ANNUAL MEETING
Visit us Online!
Associate Members
12 Protect Your Franchise – Support the
OCADA-PAC!
13 19th Annual OCADA Automotive Technology
Competition
14 OCADA Annual Meeting
18 Get to Know Your Legislator: Senator Bob Huff
20 An Update from Capitol Hill
22 2011 Economic Impact Report
26 Interesting OC Auto Fact
www.OCADA.org
OC DEALER is a Publication of the Orange
County Automobile Dealers Association
3737 Birch St., Suite 220
Newport Beach, CA 92660
www.ocada.org
Phone: 949-428-5050
Fax: 949-428-5054
WINTER 2012
3
Board of
Directors
PRESIDENT
Bruce Hamlin
Guaranty Chevrolet
VICE PRESIDENT
Calendar of Events
April 17
May 23-24
Paul Conant
Norm Reeves Honda Huntington Beach
June 11
TREASURER
Oct. 4-
Cliff Allen
Allen Cadillac GMC Hyundai
“Boot Camp” for Service Directors
National University, Costa Mesa
AIADA International Auto Industry Summit
Washington, DC
48th Annual OCADA Golf Tournament
Mesa Verde Country Club
Orange County International Auto Show
Anaheim Convention Center
IMMEDIATE
PAST PRESIDENT
Jon Gray
Orange Coast Chrysler Jeep Dodge
Orange Coast Chrysler Jeep Dodge of
Capistrano
Orange Coast Fiat
DIRECTORS
Mike D’Amato
Tustin Lexus
Paul Lunsford
South Coast Toyota
Allen Moznett
Newport Lexus
John Patterson
Huntington Beach Mazda
OC Hyundai
Tustin Mazda
Save the Date
Don’t Miss this Great Event!!
48th Annual
OCADA
Golf Tournament
Mike Westbrook
Commonwealth Audi
Commonwealth Volkswagen
EXECUTIVE
DIRECTOR/SECRETARY
John Sackrison
Orange County Automobile
Dealers Association
June 11, 2012
Mesa Verde Country Club
For more Tournament information contact Cristin Collings at
949-428-5050 or [email protected]
4
OC Dealer WWW.OCADA.ORG
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The Capistrano Dispatch
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PRESIDENT’S
MESSAGE
Interview with Bruce Hamlin
A lot of dealers get into the business by
chance or by default. Did you always
aspire to be part of the automotive
industry?
When I was younger, I always
wondered what it was like to sell cars.
I took auto shop in high school to learn
how they function and I used to rebuild
engines. After college, I was working in
marketing and sales for a company that
sold “over-the-road” and mining trucks.
I met my wife when she was a senior in
college at the University of Arizona, and
her father owned Guaranty Chevrolet in
Santa Ana. We had been married for six
years and I felt unfulfi lled in my job, so I
talked to my father-in-law. He offered me
a job selling cars with him in 1985 and
we bought the store from him in 1999. I
certainly had opportunities that other
people didn’t have.
Describe your all-time favorite ride (it
can be one you’ve owned, or something
on your wish list). Oh, and what are
you driving today?
I can’t say that I have a great passion
for older cars, and I’m not a real history
buff, but I really like the Chevrolet
Corvette. I currently drive a 2012 Silver
Grand Sport Corvette.
Bruce Hamlin
Describe your background. What did
you study in college? Have you always
lived in California?
I grew up in Arizona and graduated
from Arizona State in 1975 as a marketing
major. I’ve been in marketing or sales
since two days after I graduated.
BRUCE HAMLIN – continued on page 8
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6
OC Dealer WWW.OCADA.ORG
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BRUCE HAMLIN – continued from page 6
Tell us about your family.
My wife, Cindy and I have two sons. Tim, 31, works for
a think tank in Washington, D.C. and Brian, 29, is in the
restaurant industry in San Diego.
What’s your favorite way to spend your free time? (We
don’t imagine you get much of it!)
I love to play golf, and we love to travel. I really enjoy just
spending time with my family, which I don’t get a lot of time
to do with my sons living in Washington, D.C. and San Diego.
We have a second home in Arizona we go to quite often and
we like to boat. We go on an annual boating trip with about
100 friends to Lake Mohave every year.
What’s the most rewarding part of your career? What
challenges have you faced?
The most rewarding part of my career is working with new
employees who are struggling. After nourishing and helping
them grow, it’s great to see the lights come on and to see them
start to achieve success.
The biggest challenge was this latest downturn in 2008.
In 2007, we bought a store from my brother-in-law and when
GM sent out wind-down letters to dealerships telling them
whether they were staying or going, that store was terminated.
We closed it in March 2010; however, we were able to retain the
majority of our employees, who were transferred to Guaranty
Chevrolet.
How do you think the auto industry crisis has changed
the industry?
We’ve all become better dealers for it. Now that we’re
coming out of the downturn, I think we’ve all become better
managers, better-attuned to software programs we need, and
better-able to know what kind of people we need and don’t
need. This all will help our bottom line and we will be more
profitable.
Where do you think the auto industry is headed in the
short term, and the long term?
Well, I think in the short term, we are starting to see
some growth. The end of 2011 ended strong, and I believe
we’re already seeing some positive signs in the fi rst couple
months of 2012. In the long run, I believe it will be a slow,
steady march upward.
Do you have past experiences that will help you lead
OCADA through 2012?
I’ve participated on many boards, including the Chevrolet
advertising board and several boards for charity, and I
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8
OC Dealer WWW.OCADA.ORG
understand our industry very well. I understand what dealers
are looking for and what they need.
What keeps you involved in OCADA? What inspired you
to serve as a leader in the Association?
I strongly believe in giving time and service on boards and
participating in the progress of the industry. I’ve never really
aspired to be the “boss,” but I know it’s my turn and am glad
and honored to have the opportunity.
What will OCADA do to continue uniting dealers and
strengthening the voice of the industry in the coming
months?
We did a survey last year about what OCADA members
want out of the association, and in response we have two goals.
We want to be involved in the political process and
know our legislators. Our goal is to have every dealer attend
two luncheons: one with a state senator and one with a
state assembly member. We want to get to know these
representatives so we can call them up and tell them our
frustrations and our goals, and get our voice heard.
percent of dealers participated in compliance training – this
year we would like to be at 80% participation. We would really
like to get every dealer to utilize the services OCADA has to
offer and make use of the great resources available to them.
What do you think makes OCADA membership invaluable?
The strength that comes from working together as an
industry – it can’t be matched or replicated. Also, because the
OCADA is focused only on new vehicle dealers it is invaluable
to help us navigate the myriad of federal, state and local legal
and regulatory issues. OCADA provides dealers with up-todate information from one source about new legislation, new
laws going into effect, and other changes that impact our
businesses. For instance, July 1st, dealers will have to utilize
electronic vehicle registration for all vehicle sales. OCADA
will provide the information and assistance for dealers to
be compliant with the new law. Overall, we are here to help
dealers keep up to date, stay knowledgeable, and maintain
compliance. Q
We will continue to have training available that will help
them keep up to date on compliance. We’re trying to see what
we can do to get more and more dealers involved. Last year, 65
You can’t predict change.
But you can change your predicament.
Markets shift. Regulations get revised. Lending tightens. And with
each new wrinkle, doing business becomes that much harder. Yet
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WINTER 2012
9
Welcome to our new Dealer Members
Orange Coast Buick GMC Cadillac
Contact Jim Sarvey at (714) 444-5200
Welcome to our new Associate Members
GotCarWash.com/Loyalty Concepts, Inc.
GotCarWash.com/Loyalty Concepts, Inc. supports dealerships with marketing opportunities, providing incredible
service with tremendous value providing customers with unlimited monthly car washes.
Contact: Steve Castelblanco at (714) 863-9829
MyCustomerData.com
MyCustomerData.com provides a card-based marketing system that will help clients retain existing customers,
recapture lost customers and acquire new customers in your community.
Contact: Dan Beres at (949) 716-2684
Pennzoil – Quaker State
Pennzoil – Quaker State uses leading technology to bring the most innovative oils and greases designed to meet
dealer challenges.
Contact: Ryan Gunstream at (714) 267-9857
WINTER 2012
11
Protect Your Franchise –
Support the OCADA-PAC!
T
he Association’s legislative activities to protect your franchise is the number one priority for OCADA and your
support of the OCADA-PAC is crucial to this goal.
Here is how the OCADA-Political Action Committee benefits you:
 100% goes to protecting your franchise by electing pro-dealer candidates.
 You can secure contributions for your local elected officials from the OCADA-PAC
 Personally deliver OCADA-PAC checks to your elected officials
The OCADA-PAC is the best way to protect your franchise and is one of the best investments you can make in
your business! Q
Be recognized with every contribution made to
your local candidates
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ADVERTISE AND
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Dani Gorden, Advertising Sales
801.746.4003 | [email protected]
12 OC Dealer WWW.OCADA.ORG
19 Annual OCADA Automotive
Technology Competition
th
Bringing Tomorrow’s Technicians to the Dealership Today!
O
n Saturday, Feb 11, 2012 OCADA held
its 19th Annual High School Automotive Technology Competition.
The competition is designed to recognize
students’ automotive expertise and attract young technicians to our industry.
There is a great opportunity for our
dealerships to work hands-on with local
students and introduce them to this as a
career, by pairing 12 seniors with a local
Orange County dealer to train and to
prepare the students for the competition.
Many of these students go on to an
automotive technology post-secondary
education and continue to work with
their mentoring dealerships as they
begin their new careers.
All twelve competitors received one
year scholarships from OCADA to pursue
automotive studies at an Orange County
Community College. In addition, the
Orange County Championship team will
be sponsored by OCADA to compete in
the National Automotive Technology
Competition in April in New York City.
Many thanks to all the participating
dealerships – your guidance and support
left each team going home a winner. Q
This year’s sponsoring dealerships included:
 Toyota of Orange
 Penske Toyota Scion of Rancho Santa Margarita
 Toyota of Huntington Beach
 Simpson Buick GMC
 Allen Hyundai
 Don-A-Vee Chrysler Jeep
WINTER 2012
13
OCADA Annual
Meeting
OCADA’s Annual Meeting was held on January 19th with over 350 Dealer and
Associate Members in attendance and featured speaker, Cal Ripken, Jr.
Outgoing President, Jon Gray addressed the membership with an overview of
what the Association was able to accomplish in 2011, highlighting the results of the
membership survey and strategic planning providing a roadmap for the Association
to follow. OCADA past president and current United States Congressman John
Campbell, presented a flag to Jon Gray that was flown over our nation’s Capital
in honor of his service to the OCADA as president. Jon welcomed 2012 OCADA
incoming President, Bruce Hamlin who expressed his enthusiasm to serve his fellow
dealers. Bruce discussed his goals of continuing to build on our government relations,
expressing the importance of the Association’s PAC and legislative luncheons.
After lunch, featured speaker baseball legend Cal Ripken, Jr. took the stage
and was greeted by a standing ovation. Cal shared with us his 8 elements of
perseverance and how you can apply it to all aspects of one’s life. He ended his
talk with a live Q&A with the members, which was enjoyed by all.
OCADA would like to thank the Dealers, Associate Members and Sponsors
who helped make the Annual Meeting a success. Q
14 OC Dealer WWW.OCADA.ORG
WINTER 2012
15
Thank You
to our annual meeting sponsors
16 OC Dealer WWW.OCADA.ORG
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WINTER 2012
17
GET TO KNOW YOUR LEGISLATOR:
SENATOR BOB HUFF
29th Senate District:
Orange County Cities: Brea, La
Habra, La Habra Heights, Placentia,
Yorba Linda, portions of Anaheim and
other cities outside of Orange County.
Senate Republican Leader
Committee Membership:
Education Committee
Personal:
Senator Huff and his wife, Mei Mei,
have three sons, a daughter and five
grandchildren.
Biography:
Bob Huff ser ves as the Senate
Republican Leader in the California State
Senate and represents the 29th Senate
District covering portions of Los Angeles,
Orange and San Bernardino Counties.
He is an experienced businessman
and an accomplished legislator who
advocates for streamlining government
regulations that strangle job creation.
The Senate Republican Leader has
served in a number of key leadership
positions within the Senate Republican
Caucus, including Republican Caucus
Chair and Vice-Chair of the Senate
Budget Committee. In the Assembly
f r om 20 0 4-20 08, B ob Hu f f a l s o
held leadership positions of Whip,
Republican Caucus Chairman and
Vice Chair of the San Gabriel Valley
Legislative Caucus.
A resident of Diamond Bar, Bob
Huff ser ved on the City Counci l
from 1995-2004, and served as Mayor
in 1997 and 2001. With a focus on
transportation issues, Bob Huff was
Diamond Bar’s delegate to the Four
Corners Transportation Policy Group
and was Vice President of the San
Gabriel Valley Council of Governments.
He was President of the Foothill Transit
Executive Board, and founding Chairman
and Executive Board Member of the
Alameda Corridor East Construction
Authority (ACE).
Bob Huff has received first-rate
legislative vote rankings from the
California Taxpayers Association,
Howard Jarvis Taxpayers Association,
California Chamber of Commerce,
National Federation of Independent
Businesses, California Farm Bureau
Fe d e r at ion , a nd t he C a l i for n i a
M a nu f act u r e r s a nd Te c h nolo g y
Association.
District Office Contact
Information:
Address: 20888 Amar Road, Suite 205
Walnut, CA 91789
Phone: 909-598-3981
Fax: 909-598-6459
Email: [email protected]
Website: www.sen.ca.gov/huff
Visit us online!
www.ocada.org
18 OC Dealer WWW.OCADA.ORG
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AN UPDATE FROM CAPITOL HILL
BY
CONGRESSMAN JOHN CAMPBELL
“What’s Wrong with
the Economy?”
T
he economy is struggling right now
because investors, innovators, and
job creators are facing daunting uncertainty and a tremendous regulatory
burden that discourages competition
and blocks access to capital.
Ever y sma l l busi ness ow ner I
have spoken to recently has told me
that the obstacles to starting a new
business or growing their current
shop are so great today that most
are cutting back and almost all are
staying on the sidelines.
Most of the risks and uncertainties
freezing job growth, keeping investors
away from new opportunities, and
restraining business owners from hiring
and expanding have been created by the
federal government.
Through a recent expansion of their
powers, regulators in the government
are right now standing in the way of
economic and job growth. Hundreds of
thousands of jobs have been destroyed by
a massive takeover of the private sector
by the government.
The good news is that because we
can control the factors that are hurting
our job creators, we can take action to
reverse the harmful barriers set up by
overregulation and overspending.
20 OC Dealer WWW.OCADA.ORG
I am proud to have supported
over 20 pieces of leg islation
t h a t h ave p a s s e d t he Ho u s e o f
Representatives to empower small
bu s i ne s s e s , r e d uc e gove r n me nt
obstruction to job creation, fix the
tax code, boost competitiveness for
American manufacturers, encourage
ent repreneursh ip, a nd pay dow n
America’s unsustainable debt burden.
I am working hard to encourage
my colleagues in the Senate to pass
these bills so that we can jump start
our economy by scaling back the size
of the federal government and clearing
a way through the maze of taxation,
regulation, and litigation.
Read more about what these bills
do at www.campbell.house or thomas.
loc.gov.
 H.R. 3094, Workforce Democracy and
Fairness Act
 H.R. 3010, Regulatory Accountability
Act
 H.R. 1070, Small Company Capital
Formation Act
 H.R. 2930, Entrepreneur Access to
Capital Act
 H.R. 2940, Access to Capital for Job
Creators Act
 H.R. 910, Energy Tax Prevention Act
 H.J.Res. 37, Disapproval of FCC’s Net
Neutrality Regulations
 H.R. 2018, Clean Water Cooperative
Federalism Act
 H.R. 1315, Consumer Financia l
Protection and Soundness
Improvement Act
 H.R. 2587, Protecting Jobs From
Government Interference Act
 H.R. 2250, EPA Regulatory Relief
Act Q
Until next time, I remain
respectfully,
Congressman John Campbell
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Atlanta Boston Charlotte Chicago Cleveland Columbia Dallas Denver Fort Lauderdale Houston Irvine Kansas City Las Vegas Los Angeles
Louisville Memphis New England New Jersey New Orleans Orlando Philadelphia Phoenix Portland San Diego San Francisco Tampa Washington, DC
WINTER 2012
21
Dealers Create a Local Economic Impact of $7.6 Billion
An Increase of More than 15 Percent
The study shows a total of 142,740 new vehicles and 81,900 used vehicles sold during the year amounƟng to more than $457
million in tax revenues generated, of which $59 million goes directly to Orange County ciƟes. AddiƟonally, Orange County new
car dealerships are collecƟvely the fourth largest employer in the county with more than $550 million in total payroll. In 2011,
local dealers added 585 employees for a total of 11,115 employees countywide.
Franchised Dealers in Orange County
117
Total Dealership Sales
$7.6 billion
Employment
11,115 employees
•
•
The total payroll is over half a billion for all of Orange
County’s dealerships.
Collectively Orange County Auto Dealers are the 4th largest
employer in the County.
New Vehicle Sales
•
•
On average each Orange County dealership sold approximately
1,220 new vehicles.
Orange County alone sold more vehicles than 24 states in 2011.
Used Vehicle Sales
•
•
$457 million
On average, each Orange County dealership collected over $3.9
million in sales tax in 2011.
$59 million goes directly to Orange County cities.
Charitable Contributions
•
$173 million
Each Orange County dealership paid an average of $1.48 million
in payroll taxes.
Sales Tax
•
$1.1 billion
The average Orange County dealership generated $9.9 million in
service & parts sales.
Payroll Taxes
•
81,900 vehicles
Orange County franchised new car and truck dealers sold an
average of 700 vehicles per dealership.
Service and Parts Sales
•
142,740 vehicles
An average of $34,500 per dealership.
22 OC Dealer WWW.OCADA.ORG
$4 million
Average OC Dealership
Orange County Totals
$39,400,000
$15,800,000
$9,900,000
$65,100,000
$4,609,800,000
$1,848,600,000
$1,158,300,000
$7,616,700,000
1,220
700
1,920
142,740
81,900
224,640
90
5
95
10,530
585
11,115
$4,810,000
100%
$4,810,000
$562,770,000
100%
$562,770,000
Total Expense
$730,000
$1,570,000
$2,300,000
$85,410,000
$183,690,000
$269,100,000
TAXES
Total State Payroll Taxes
Total Federal Payroll Taxes
Total Employee Taxes
$287,000
$1,200,000
$1,487,000
$33,579,000
$140,400,000
$173,979,000
Sales Tax Collected
Property Taxes
Total Taxes (paid or collected)
$3,910,000
$136,000
$4,046,000
$457,470,000
$15,912,000
$473,382,000
Total Tax Revenue Generated
Total Tax Revenue to Cities
$5,533,000
$508,300
$647,361,000
$59,471,100
OTHER FEES
State and Local Business taxes and fees
$37,000
$4,329,000
Charitable Contributions
$34,500
$4,036,500
SALES
New Vehicle Sales
Used Vehicle Sales
Service & Parts Dept. Sales
Total Dollar Sales
Total New Units
Total Used Units
Total Vehicles Sold
EMPLOYEES
Total Full Time Employees
Total Part Time Employees
Total Employees
Total Wages
% Providing Health for Employee and Dependents
Total Wages/Personnel Benefits
EXPENSES
Advertising
Products and Services From California Businesses
Total # of Dealerships in District:
117
Anaheim - 10
Irvine - 12
Orange - 5
Buena Park - 8
Laguna Hills - 1
Placentia - 2
Costa Mesa - 12
Laguna Niguel - 2
Rancho Santa Margarita - 3
Foothill Ranch - 1
Lake Forest -1
San Juan Capistrano - 7
Fullerton - 2
Midway City - 1
Santa Ana - 7
Garden Grove - 6
Mission Viejo - 5
Tustin -11
Huntington Beach - 10
Newport Beach - 7
Westminster - 4
WINTER 2012
23
BENEFITS OF
A
ADVERTISING
dverƟsing in your associaƟon’s trade journal is a solid approach to business development.
In fact, a recent survey done via the PPA called The EssenƟal Medium, found B2B publicaƟons - such as the OCDEALER, to be the number one informaƟon source within any given
industry when compared to other media.
In the survey, respondents were asked whether they agreed or disagreed with a series of
aƫtude statements and the PPA compiled the data, resulƟng in the percentages. VerbaƟm
responses were collected by the survey, which are added to exemplify the points. Here
are a few excerpts:
 Business publicaƟons are rated the first choice for staying in touch with what’s
going on in their sector by 61% percent of decision makers.
 83% of managers would recommend to people starƟng a career in their sector to
read the business publicaƟons.
 “If I didn’t read them I wouldn’t know what’s going on.”
 71% of decision makers believe that B2B magazines are essenƟal reading.
 “I would be lost without my business publicaƟons.”
 “With the informaƟon we gather from the publicaƟons, we can determine if we are on
the right track or if we need to change direcƟon.”
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www.FVCPAs.com
24 OC Dealer WWW.OCADA.ORG
WINTER 2012
25
InteresƟng
OC Auto Fact:
In Orange County sales tax revenue
from buying a car generated $457
million. On average, each Orange
County dealership collected over $3.9
million in sales tax in 2011.
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BY FANGGLE
“My focus is running my
dealership—not worrying
if my business is protected
or how to generate income
in my finance department.
Zurich lets me do that.”
One insurance company for your business
insurance and F&I product needs
In 2011, more than 1,300 dealerships purchased both business
insurance and F&I products from Zurich. Products such as our Unicover®
policy, which packages most of the coverages needed by dealerships
into one policy. Or our Streamlined Selling System®, which can help
you drive increased F&I profit. One company for all your needs, backed
by more than 90 years insuring dealerships.
Call Darin Haag, Regional Sales Manager, at 801-376-3338
or visit www.zurichna.com/SDA1 for more information.
Insurance coverages and non-insurance products and services are underwritten and provided by individual member companies of Zurich in North
America, including Universal Underwriters Insurance Company and Universal Underwriters Service Corporation. Certain coverages, products and
services are not available in all states. ©2012 Zurich American Insurance Company
PRSRT STD
U.S. POSTAGE
PAID
SALT LAKE CITY, UT
PERMIT NO. 508
Orange County Automobile Dealers Association
3737 Birch St., Suite 220
Newport Beach, CA 92660
This magazine is designed and published by Media Communications Group | 1.855.747.4003
DELIVERING
92.4% of all Orange County households
OR
430,806 future car buyers
Multi-media packages include;
newspaper, online, direct mail,
magazines, email marketing,
search engine marketing, mobile
marketing, social media, and
more.
Get started today!
Toni Spagnolo
16491
714-955-1532
[email protected]
Source: Scarborough Research R2 2009 and 2010
Note: Future car buyers are OC adults who’s households plan
to buy or lease a new or used vehicle in the next 12 months.
DELIVERING
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