2010 - Orange County Automobile Dealers Association OCADA
Transcription
2010 - Orange County Automobile Dealers Association OCADA
SPRING 2010 Volume 50, Issue 1 OCADA Auto Tech Team Wins National Championship The Official Publication of the Orange County Automobile Dealers A ssociation 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. 18 11 The “Opening Statements to Negotiations Can Make All the Difference” OCADA in the District 21 Health Care Reform – Immediate Impact 4 Calendar of Events 6 President’s Message 8 2010 OCADA-PAC Honor Roll 9 Dealer Day A BIG Success! 11 OCADA in the District 12 17 Years of Commitment to High School Automotive Programs Brings Home National Championship 15 Free Labor Law Hotline 17 Get to Know Your Legislator: Visit us Online! www.OCADA.org Congresswoman Loretta Sanchez 18 The “Opening Statements to Negotiations Can Make All the Difference” 19OCADA Welcomes Our New Associate Members 20An Update from Capitol Hill By Congressman John Campbell 21 Health Care Reform – Immediate Impact 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 SPRING 2010 3 Board of Directors PRESIDENT John Patterson Huntington Beach Mazda OC Hyundai Tustin Mazda Calendar of Events June2 Steve Richards Sales Training Seminar The Objection Handling and Closing Formula National University, Costa Mesa June7 July 8 46th Annual OCADA Golf Tournament Mesa Verde Country Club Used Car Dominance by Dale Pollack National University, Costa Mesa VICE PRESIDENT Tim Mullahey Mullahey Chevrolet Fullerton Kia Sexual Harassment Prevention Training Presented by: Fisher & Phillips, LLP National University, Costa Mesa TREASURER George Heidler Suzuki Depot/Kia Depot/ Tom’s Truck Center IMMEDIATE PAST PRESIDENT Paul Lunsford South Coast Toyota July 14 August 4 Steve Richards Sales Training Seminar Justifying the Trade Value National University, Costa Mesa October6 Steve Richards Sales Training Seminar Justifying the Price National University, Costa Mesa October7-10 Orange County Auto Show Anaheim Convention Center, Anaheim EXECUTIVE DIRECTOR/SECRETARY John Sackrison Orange County Automobile Dealers Association DIRECTORS Paul Conant Norm Reeves Honda Huntington Beach Mike D’Amato Tustin Lexus Jon Gray Orange Coast Chrysler Jeep Dodge Matt Gunderson Audi Mission Viejo Infiniti of Mission Viejo Bruce Hamlin Guaranty Chevrolet 4 OC Dealer WWW.OCADA.ORG 46th Annual OCADA Golf Tournament Monday, June 7th, 2010 Mesa Verde Country Club Sign up Today! Do not miss out on one of Orange County’s BEST Golf Tournaments! This year’s tournament includes bars and fun on the course along with the lawn bowling contest and the helicopter drop. 8:30am - 10:30am • Registration & Breakfast 10:30am • Shotgun Start 5:00pm • Awards Dinner To sign up or for more information, please contact: Cristin Collings at (949) 428-5050 or [email protected] President’s Message Dealer Day, What an Incredible Event! I recently went to my first Dealer Day in Sacramento and have to admit I was hesitant to spend the day away from my stores, but — WOW what an incredible event! It was a fast paced day that began with Meg Whitman and Lieutenant Governor Abel Maldonado addressing over 100 dealers, followed by a current dealer issues briefing. Next, we were off to the Capitol to meet with our Assembly members and Senators and later hosted a dinner with them and the Orange County dealers. Two things really struck me that 6 OC Dealer WWW.OCADA.ORG day: One is just how much is done to protect and promote the dealers interests in this state — not just on Dealer Day, but every day. You have an excellent team of seasoned professionals that each day are fighting on our behalf. The second thing was the opportunity to build relationships with my fellow dealers, our lobbyists and of course our legislators. I walked away with valuable contacts and resources, as well as a new friendship with my Assemblyman, Jim Silva. While Dealer Day is a once a year event, activities to protect and promote our businesses are constant, as well as John Patterson opportunities to participate. Here are a few ways to get involved: • Join us for Lunch with Your Legislator • Deliver a check from you Federal, State or Local PAC to your legislator • Contact your legislator when a legislative alert is distributed With al l levels of government becoming more active in our business, it’s only fair for us to return the favor! n Sincerely, John Patterson 2010 OCADA-PAC Honor Roll Chairman’s Club AJ D’ Amato Bruce Hamlin Tim Mullahey Trey Selman James Barone Dennis Hardin John Oh Jim Speck Norris Bishton Roberta Hardin Woody Oklejas David Wilson Dave Conant George Heidler Al Parajeckas Tom Winterling Tom Ferruzzo Dick Hsu John Patterson Jim Graham Paul Lunsford Bill Piercy Jon Gray Bob Miller RJ Romero Join the OCADA-PAC Honor Roll and make your contribution today! 8 OC Dealer WWW.OCADA.ORG Dealer Day A BIG Success! Special Thanks to the Chairman’s Club delegation who joined us for CNCDA’s Dealer Day 2010! Left to right: George Heidler, Suzuki/Kia Depot/Tom’s Truck Center; Bruce Hamlin, Guaranty Chevrolet; Assemblyman Jose Solorio, 69th Assembly District; Alton Burkhalter, Burkhalter Kessler Goodman & George LLP. Left to right: Assemblyman Jeff Miller, 71st Assembly District; Dave Braun, Comerica Bank; Dave Conant, The CAR Group; Jim Graham, Santa Margarita Ford; Michael Sieving, Law Offices of Michael Sieving; Assemblywoman Diane Harkey, 73rd Assembly District; Woody Oklejas, Law Offices of Michael Sieving; Al Parajeckas, Crevier BMW; Tom Ferruzzo, Ferruzzo & Ferruzzo LLP. Left to right: Dick Hsu, DCH Tustin Acura; Assemblyman Van Tran, 68th Assembly District; George Heidler, Suzuki/Kia Depot/ Tom’s Truck Center. OCADA Dealer Day Delegation, Sponsors and Orange County Legislators meet at CNCDA’s Legislative Dinner during Dealer Day. SPRING 2010 9 in the District Assemblyman Jim Silva Dealers in the 67thAssembly District met with their Assemblyman Jim Silva at one of OCADA’s Legislative Luncheons. Left to right: Paul Conant, Norm Reeves Honda Huntington Beach; Bob Miller, Toyota of Huntington Beach; Vikki Murphy, Wilson Automotive Group; Assemblyman Jim Silva; John Patterson, OC Mazda Senator Mimi Walters Dealers in the 33rd Senate District attended an OCADA Legislative Luncheon to meet with Senator Mimi Walters. Left to Right: Tom Ferruzzo, Ferruzzo & Ferruzzo LLP; Aubrey Hardin, Hardin Automotive Group; Mike D’Amato, Tustin Lexus; Roberta Hardin, Hardin Honda; Trey Selman, Selman Chevrolet; Mark McKellop, Acura of Mission Viejo; Senator Mimi Walters, 33rd Senate District; Jim Graham, Santa Margarita Ford; David Conant, The CAR Group; Gina Zari, 33rd Senate District; Tim Mullahey, Mullahey Chevrolet & Kia; John Sackrison, OCADA; John Patterson, OC Mazda. Assemblyman Van Tran Dealers came together at an OCADA Legislative Luncheon to meet with their Assemblyman Van Tran. Left to right: Jared Hardin, Hardin Hyundai; John Oh, Lexus of Westminster; John Sackrison, OCADA; Jim Robins, Theodore Robins Ford; Jon Gray, Orange Coast Jeep Chrysler Dodge; Assemblyman Van Tran; Paul Lunsford, South Coast Toyota f 100% o ould w s e e Attend mend m o c e r tive a l s i g e L OCADA ons to e h c n Lu lers! a e D r othe Visit us online! www.ocada.org SPRING 2010 11 National Champs 17 Years of Commitment to High School Automotive Programs Brings Home National Championship OCADA and Team from Loara High School ROP in Anaheim Take First Place in Nationals! F or the past 17 years, OCADA has sponsored an automotive technology competition to recognize the outstanding technical prowess of local high school students and introduce them to the opportunities of a career in automotive technology. Through this event those opportunities are shared with thousands of high school students, parents, teachers and school administrators. Each year 12 students are paired with Orange County Dealerships giving the students and the dealership a 12 OC Dealer WWW.OCADA.ORG chance to take each other for a test drive. This year, for the first time and with the support of Toyota of Orange, an Orange County team from Loara High School ROP won the National Championship. The goa ls of OCA DA’s automot ive tech nolog y competition are to showcase the talents of local students, offer them one-on-one training and mentoring with master technicians from area dealers, and to provide them with scholarships to help them continue their education. OCADA also sends the local winning team to the national competition in New York, where the students are exposed to more career and training opportunities and the chance to win more than $100,000 in scholarships to the best automotive technology schools in the nation. At this year’s national competition, the Loara High School ROP team, consisting of students Jonathan Greenhalgh and Ben Hicks, instructor Russ Bacarella, and Toyota of Orange master technician Gary Upton, were pitted against 30 teams from across North America and prevailed to become the first team from Orange County to win the National Automotive Technology Competition which was held April 6-7 at the New York International Automobile Show. This win, however, came only after five months of intense training. In fact, master technician Upton invested more than 100 hours to train and prepare the winning team for both competitions. Toyota of Orange provided the vehicle upon which to train and test their knowledge and problemsolving skills. Rallying for the Champs In what was akin to winning a NCAA championship, Loara High School pulled out all the stops to celebrate the team’s tremendous win. A school rally was held and attended by more than 2,000 students and teachers, and dignitaries from local congressional offices ,the Anaheim Union High School District and the North Orange County ROP. During the rally, representatives from the school district and the ROP, as well as Toyota and OCADA, commended the students and their instructor on their achievements. “This outstanding team from Loara High School is an illustration of how a student’s dedication and hard work combined with an extremely passionate teacher can culminate in tremendous success,” said John Sackrison, executive director, Orange County Automobile Dealers Association. “In addition to the scholarships they have won, the competition affords them the opportunity to experience firsthand the careers within a growing field with excellent job security and economic opportunities.” After the trophy presentation, the team received a Congressional proclamation courtesy of Congresswomen Sanchez, and a State Senate proclamation from State Senator Correa. Toyota Motor Sales USA Technician Training Supervisor Russ Casella presented a ceremonial key to a new Toyota that the manufacturer will donate to the school’s auto tech program, while Vikki Murphy of Wilson Automotive Group and Toyota of Orange, presented the team with threeday passes to the Toyota Grand Prix in Long Beach. After the rally, the students were quick to underscore the importance of their win. Both were in awe of the reception they received not only by the dignitaries in attendance, but by their peers, who offered at least three standing ovations during the event. They also embraced the opportunities that lay ahead of them through the generous scholarships that will enable them to continue their studies at the best auto technology schools in the nation. Both have plans to become master technicians, foremen and eventually join the automotive world while completing their education and training. n SPRING 2010 13 What do your customers think and say when your dealership name is mentioned? What first impression are employees making with your customers? How convenient is it for customers to do business with your dealership? When your desire to grow is greater than your capabilities ...we can help. Evaluation Sales & Service Assessments Training Job Specific Skills Loyalty Net Promoter Score Managing Partners: Stephen M. Harvey (949) 244-4712 [email protected] Loren G. Phillips (909) 477-7284 Improvement [email protected] Process Shelly K. Jackley, C.P.A 14 OC Dealer WWW.OCADA.ORG 5319 University Drive #306 Irvine, CA 92612 www.idsconline.com Redesign Free Labor Law Hotline Fisher & Phillips as whether you have properly documented an employee’s performance, whether you may lay off an employee, or how to handle maternity leave, etc. With this service, basic employment law problems or concerns may be resolved in just one phone call. n Dealer Members can call the labor law experts at Fisher & Phillips, Irvine, for free legal assistance. Fisher & Phillips offer legal advisors with experience representing dealerships in labor and employment law matters, who can provide answers to every day questions such Call the Free Labor Law Hotline (949) 851-2424! Please note that if Fisher & Phillips takes action at your request, they will notify you that these actions are billable. SPRING 2010 15 Long-haul dealership commitment. 70 years and counting. During tough times, what would you expect from a trusted partner? Professional commitment. Innovative thinking. Personal service. That’s how Bank of America Merrill Lynch has earned the respect of auto dealerships nationwide for the past 70 years. And it’s how we intend to earn yours on the road ahead. Put our time-tested industry experience to work for you. Contact one of our client managers to learn more. Stephen Bader Tim Whitton Robert Ludwig 1.949.831.6847 1.714.921.6402 1.714.491.6931 Retail Client Manager Retail Client Manager Sr. Client Manager Joanne Toth 1.714.375.5939 Sr. Client Manager Kelly Scarff 1.714.921.3405 Market Executive “Bank of America Merrill Lynch” is the marketing name for the global banking and global markets businesses of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., member FDIC. Securities, strategic advisory, and other investment banking activities are performed globally by investment banking affiliates of Bank of America Corporation (“Investment Banking Affiliates”), including, in the United States, Banc of America Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated, which are both registered broker-dealers and members of FINRA and SIPC, and, in other jurisdictions, locally registered entities. Investment products offered by Investment Banking Affiliates: Are Not FDIC Insured * May Lose Value * Are Not Bank Guaranteed. ©2009 Bank of America Corporation. Get to know your legislator: Congresswoman Loretta Sanchez 47th Congressional District: Anaheim, Garden Grove, Santa Ana and Fullerton Congressional Committees: Congresswoman Sanchez serves as Vice Chair of the House Committee on Homeland Security and is the ranking female member on the House Armed Services Committee. She is also a member of the Joint Economic Committee, a bicameral Congressional Committee that examines matters related to the U.S. economy. A recognized leader on national security, intelligence, and counterterrorism issues, Rep. Sanchez serves as the Vice Chair of the House Homeland Security Committee and is a member of the Subcommittees on Border, Maritime, and Global Counterterrorism and Emerging Threats, Cybersecurity, and Science and Technology. As a member of the Subcommittee on Border, Maritime, and Globa l Counter ter ror ism, Rep. Sa nchez provides strict oversight for important security measures, includ ing the Transportation Worker Identification Credential (TWIC) card program and the Secure Border Initiative (SBI). Biography: Rep. Sanchez is also the ranking female member on the House Armed Services Committee and is the Chair of the Terrorism, Unconventional Threats and Capabilities Subcommittee. As Chair of Subcomm ittee, Rep. Sanchez’s top priority is preparing our Armed Forces for a new generation of security challenges. This is a vitally important subcommittee, with jurisdiction over the Department of Defense’s counterterrorism and counter-proliferation operations. The subcommittee also oversees our military’s overall information technology and cybersecurity - two fields with direct implications for Orange County’s growing technology and cyber-defense sectors. Congresswoman Loretta Sanchez began her congressional career in November 1996 and is currently serving her seventh term in the U.S. House of Representatives. Through her work on the Military Personnel Subcommittee, Rep. Sanchez advocates for service members, fighting for pay raises, improved health care, child Personal: Born in Lynwood, CA. Currently resides in Santa Ana. Favorite Quote: “ The ultimate measure of a man is not where he stands in moments of comfort, but where he stands at times of challenge and controversy.” – Martin Luther King, Jr. care services, and housing and education benefits for military families. She also focuses on the issues of space weaponization, missile defense, and nuclear non-proliferation. Sa n c h e z i s C o - Ch a i r o f t h e Congressional Caucus on Vietnam and a member of the Blue Dog Democrats, the New Democratic Coalition, and the Congressional Human Rights Caucus. She wa s appoi nted by Speaker Pelosi to serve on the Joint Economic Committee (JEC), a bicameral Congressional Committee composed of ten members from each the Senate and the House of Representatives. The Committee’s main purpose is to cont i nua l ly mon itor m at te r s relating to the US economy, including unemploy ment, foreclosures, and interest rates. The Committee holds hearings, performs research, and advises other Members of Congress. A product of public schools and Head Start, Sanchez is a graduate of Chapman University and American University’s MBA program. Prior to serving in Congress, she was a financial manager at the Orange County Transportation Authority, an assistant vice president at Fieldman, Rollap and Associates, and an associate at Booz, Allen, and Hamilton. District Office Contact Information: ddress: 12397 Lewis Street, Suite 101 A Garden Grove, CA 22840 Phone: (714) 621-0102 Email: [email protected] Website: www.house.gov/sanchez SPRING 2010 17 The “Opening Statements to Negotiations Can Make All the Difference” By Steve Richards Most automotive customers approach the vehicle negotiations as they would a fight. They are anxious, distrustful, a little bit afraid, and definitely ready “to rumble!” This attitude does not exactly set up your closings sequences for a collaborative atmosphere. T he purpose of a good opening statement is to establish a collaborative atmosphere, increase the strength of your position talking straight , creating transparency, and clarifying the expectations for your prospect. Bring “out in the open” the importance of the money and drag some emotion into an otherwise logical situation; this will certainly set you apart from the competition! Few automotive sales consultants are taught to do this, few sales consultants bring up the money, and the primary reason is it’s not taught. You have an opportunity to create an environment that is much less confrontational, more fun, and moves much faster. You want to communicate your intent to collaborate, while keeping your control of the closing process high. 18 OC Dealer WWW.OCADA.ORG You do not want this to sound insincere; so practice your own opening statement. Here is a breakdown of a powerful opening statement. 1. Part I – Talk straight, make the transaction transparent, bring up the importance of money, and lay out the expectations. a. “OK, we’ve worked hard to put together this proposal in a fair and simple manner. We know through all of your time-consuming research and exhaustive shopping you have worked equally hard to find the right vehicle at the right price. We also know at this point it is all about the money. However this is not a perfect proposal. Our customers have let us know what a perfect proposal looks like! (Smile!) It has us buying your vehicle for exactly what you paid for it brand new and we give you the new vehicle free! (SMILE!) So while this proposal is fair, it is not perfect. And we understand that it is you who is the judge and jury when it comes to determining what constitutes fair.” 2.Part II – Remind the customer what happens if this part of the sales process fails, continuing your transparent and straight talking path. a. “Moreover, if we fail you, we understand what happens. You get up, go back out to the vehicle you hoped you’d never drive again and you leave. Most people do one of two things; they leave frustrated, go home, and complain about how difficult car dealers make it to buy a car. The problem is; the next day the vehicle they wanted to sell is still in their garage and they have to start all over at another store. Some people are so motivated and energized that they leave here and go straight to another store, meet a whole new sales team, experience another sales process and in about 3 – 4 hours they are in the same position we are right now. If we fail you, we too have to start all over. We know our chances of making you a member of our family have been lost. Therefore, our intention is NOT to fail you. We are prepared to make this easy for both of us, knowing that some small disagreements may occur!” 3.Part III – Prior to showing the offer to purchase to your prospect, let them know, remind them if you’ve already covered some of the items, but reiterate the money they save when they become a customer. These benefits must be “hard” benefits with dollar values to be included. Adding a bunch of light weight stuff just takes away from the straight-talking nature of this presentation. a. “As a dealership we know saving money is important to you. Most dealerships will discount a vehicle, but we have arranged to make sure every day of your ownership period is discounted. When you join our family, both my dealership and the factory join in giving hard cash back in the form of goods and services to you. Here is how!” (List below all the MONETARY benefits your store and your factory provides the prospect when he turns into a customer. Each should have a story – your story.) • We pay for the first detail, “When you say “yes”, I’ll pick the phone and call our detail department and have them take your new vehicle, which already looks good, to detail your new vehicle, turning looking good to great! We’ll spend $75 - $99 and we don’t do this because we’re generous or charitable; you know better.” (SMILE!) • We pay for the first tank of gas, $40 - $60, “We buy your first tank of gas, you will not leave without a full tank of gas, for your vehicle we spend about $XX.XX.” • We pay for the 1st scheduled maintenance, “We are so confident in our service department’s ability to impress you; we’ll pay for your first scheduled maintenance which will save you $30 - $35.” • Svc. Discounts during ownership, “As long as you own your new vehicle and you remain in our market area we will continue sending you discount offers; they average about $300@year. If you just used half of them you would save about $600 during your first 4 years of ownership.” • We keep your service records, “Consumers are being coached to ask for service records when buying pre-owned cars these days. If a vehicle doesn’t have service records the value is reduced by the potential purchaser. Using our service department for all your service needs eliminate you having to worry about producing the records. When you choose to trade or sell your vehicle we produce the service records for you adding an additional $500-$1,000 to the ending value of your vehicle.” • We pay for a car wash with every service, “Each time you have your vehicle service with us, we pay to wash your vehicle. Might not sound like a lot, but if you have your vehicle serviced 3 times a year we will have paid for $180 in car washes during the 1st 4 years.” •Comprehensive Warranty, “In a few minutes you’ll see the investment required to drive your new vehicle home but what you won’t see for 36 months or 36,000 miles, whichever comes first , is a repair bill. The factory picks up the cost of repairs during the time period.” (Make sure you distinguish between warranty repairs and items that wear out and are not covered by the factory warrant.) • Power train Warranty, “You will not see any large repair bills for 5 years or 60,000 miles because the factory covers repairs on your power train for this time period.” • Roadside Assista nce, “During your first 3 years of ownership, or 36,000 miles, which occurs first, your roadside assistance program is completely paid for. This, as you will discover if you buy your own roadside assistance plan, is $70, a year, or $210 that stays in your pocket.” • Loaner vehicle, tell the story that applies to your store and/or your factory and quantify it. For example $50 a day, $35 a day, etc. “So, as you can see, starting immediately and for as long as you own your vehicle, we pay you to be our customer. We start paying you today and we never stop. Please keep in mind, all the money coming back your way, as you make your financial decision.” 4.Part IV - The Summary of Vehicle Benefits – Immediately prior to presenting the offer-to-purchase remind the prospective customer of the vehicle you’re about to ask him to pay for. a. “Now the vehicle you picked out, first choice of color equipped just the way you wanted – what did you like best about it during the test drive?” (Encourage the prospect to talk about the vehicle!) n “Here is your opportunity…” (Now you unveil the numbers!) Come see the next Steve Richards seminar “The Objection Handling and Closing Formula”, June 2nd in Costa Mesa. Call 949-428-5050 for details. Welcomes Our New Associate Members Tustin Community Bank Tustin Community Bank, in business for almost 30 years, provides customized financial products and services to meet the needs of the community. Founded in 1981 by former president John Prescott and a group of local business leaders, offers tailored, solutions for businesses, professionals, and individuals. Contact Gene Micco or Caroline Enciso at 714-730-5662 SPRING 2010 19 An Update from Capitol Hill By I always see a lot of people when I’m home in Orange County, whether it’s at some formal speaking engagement, at a party, or it may just be someone who comes up to me while I’m filling up at a gas station or getting a cup of coffee. No matter if they are Republican, Democratic, or Independent the question always seems to lead to the same place: What can I do? So, what CAN you do? Lots of things: Raise your voice: write a letter to the editor of your local newspaper or call a talk radio show. These are effective methods to communicate your voice to a wide and diverse audience, and could provide much needed information to those who only receive their news from the mainstream media. How to get a ‘Letter to the Editor’ published: • Keep it short. Length and format requirements will vary but most newspapers have word limits for submissions. • Stay on topic. Make one point (or at most two) in your letter. State the point clearly, ideally in the first sentence. Think local. The smaller the newspaper’s circulation, the easier it is to get your letter printed. • Use short punchy sentences. This will make it easier for the reader to follow your thinking. 20 OC Dealer WWW.OCADA.ORG Congressman John Campbell Get Involved in the Political Process • It’s ok if you don’t get published. If media outlets get letters from a dozen people raising the same issue, they will most likely publish one or two of them. Know Your Candidates: Take the time to get to know who is running for office in your area and be sure to let your community know who you support. You can research candidates either at the Orange County Registrar of Voters (www.ocvote.com) or the CA Secretary of State Office (www.sos.ca.gov). You can also see who I am supporting at www.CampbellforCongress.com. Once you have found candidates you wish to support, engage in their campaign. Put a yard sign in your lawn; make phone calls on behalf of the candidate; knock on doors in your neighborhood; make a financial contribution and attend fundraisers for your candidates. Social Networking: Web sites like Facebook and Twitter are where more and more Americans get their news and keep up with issues. By simply sharing your information and opinions with your friends, you’re channeling the energy that’s building in America for a return to responsible and responsive government. Be sure to connect on a social networking site, post comments on blogs and online newspapers and electronically forward information to people you know at work, a club you belong to or your church or synagogue. Vote!: Voting in any type of election, from local elections to Presidential primaries, provides an important way to voice your opinions regarding elected leaders and overall policies; voting also helps you decide your own future by electing a person who might reflect your own views. The ability to vote exists as one of the most cherished Constitutional Rights that many fought for, marched for, and died for over the centuries. Make sure to register or re-register friends, neighbors and colleagues to vote. And on Election Day, bring another registered voter down to the voting polls with you. If every voter brought just ONE additional voter with them, the outcome of an election could drastically change! In politics, the side with the better ideas does not always win. The winner is the side with the greater number of active and effective participants - those who choose to be involved. Choose to be involved because your country needs your help. n I Remain Respectfully, Congressman John Campbell Health Care Reform – Immediate Impact by Marina Nordby, Account Executive, Burnham Benefits Insurance Services The highly discussed Health Care Reform became the law of the land on March 23rd of 2010 and shortly was followed by an overwhelming number of articles summarizing its key provisions. However detailed, few of them succeed in addressing the dealers’ main question: “How will this effect me, my dealership and my employees?” T he immediate impact of Health Care Reform on employer spons or e d he a lt h pl a n s r evolve s around three provisions: the coverage for children under age of 26 regardless of their student status, coverage for preventive services without cost sharing (no co-pays or deductible), and elimination of lifetime maximums. Each of these provisions takes effect at the renewal following September 23, 2010 (though insurance carriers are still working out the exact dates of the changes). Most dealerships offer coverage for dependent children up to age 19 and up to age 25, if they are fulltime students. The estimated rate impact of covering dependents up to age 26 is roughly 1.5 to 2 percent in additional premium. In many cases this additional enrollment will not generate extra premium (especially in the case of family coverage), but will expose the group plan to more claims. The other t wo prov isions a re associated with plan design. In Southern California, HMOs are the most prevalent medical plans that are offered at a group level. The rate implication should be minimal, as these plans already have no lifetime maximums and the majority of them have minimal cost sharing, if any, for preventive services. For example, preventive services for adults typically are covered at a co-pay, while preventive services for kids are covered at 100%, with no co-pay. PPO plans, often offered as a buy up option, will see a greater impact on rates due to the benefit changes. If the plan covers preventive services at some level of cost sharing, the possible elimination of these co-pays, deductible, and coinsurance may amount to an additional 1 to 3 percent increase in premium. In terms of eliminating life time maximum (currently $5,000,000 - $6,000,000 on the majority of the plans) the cost impact is perhaps only an additional one tenth to one half of a percent as very few people actually hit that maximum. Another Health Care Reform change that will not be as immediate is the disclosure requirements pertaining to premium increases. The impact on your dealership will depend on what increases will be passed along to the employees. If the dealership picks them up, there are no communication requirements. If the increase, even partially, is passed to the employees with or without benefit changes, the plan is required to notify the participants 60 days prior to the effective date of the change. This presents an immediate challenge for employers where the decisions on the plan design and employee / employer contributions are being made much closer to the renewal or effective date of change. It is possible that some dealerships will be forced to accept the less favorable renewal due to time limitations. Through 2011 - 2013 the employers will have to adopt the mandatory changes in benefit designs, as well as IRS and other government agencies’ HEALTH CARE REFORM – continued on page 22 SPRING 2010 21 HEALTH CARE REFORM – continued from page 21 reporting requirements. In 2014 major provisions of the reform will take place. Here are some of the highlights: The first is the “automatic enrollment” provision will require employer groups of 200 or greater to enroll all employees eligible for coverage in the offered health plan with the option to opt out. This will increase cost due to higher enrollment. For the dealer industry with its high employee turnover this also can create a problem of high COBRA population. Statistically a COBRA participant can costs the plan 150% to 200% more in claims than an average active participant. Secondly, the legislation mandates the eligibility waiting period not to exceed 90 days. A lot of dealerships already have this provision in place. For those that have longer waiting periods due to the high employee turnover, this will create the same COBRA issue as the automatic enrollment. In addition, it is not clear at this time if the coverage will have to be offered immediately upon satisfaction of 90 days waiting period or on the 1st of the following month. Depending on the regulations, the provision will create additional administrative issues. The last mandate is the definition of full-time employees used for calculation of “play-or-pay” penalties. Health care reform currently defines full time employee as an individual working at least 30 hours per week. The average dealership definition of a full time employee is 35-40 hours per week, which means that in 2014 the number of employees eligible for benefits at each store could increase, driving the cost up. It is clear that through these uncertain times and new highly regulated health insurance landscape it is important that you select the right broker/consultant partner to assist you. There are a lot of 22 OC Dealer WWW.OCADA.ORG tools we have not reviewed in this article to help mitigate any financial impact of these changes, and your health insurance broker/consultant should be working with you to explore these alternatives. This article is a very brief overview of the major components of Health Care Reform as currently passed. The bill itself is massive and contains many additional provisions that will have a major impact on the health insurance marketplace, including the individual marketplace and insurance underwriting requirements. The goal of this brief article was to call your attention to the parts of the law that will affect you as an employer in the nearest future. As more information becomes available, Burnham Benefits Insurance Services will be providing more information in future editions of the OC Dealer. If you have further questions, please contact Marina Nordby at (949) 252-4588 or email her at nordby@ burnhambenefits.com. n Insurance Risk Management Call 800-435-8842 Darin Haag Regional Sales Manager We can help you get covered. Louis Pingtella General Manager Zurich HelpPoint is here when you need more than just insurance. For more than 85 years, Zurich has remained committed to developing innovative solutions that provide the coverage your company needs and peace of mind you deserve. With the stable financial position of Zurich in North America*, our insurance products – such as Unicover®, one of the most extensive lines of automotive business coverage available – are frequently recognized by national automotive organizations and associations. And so is our reputation for delivering when it matters, with one-day response times to all claims inquiries and onsite assistance for most major losses within 48 hours. This all helps explain why 80 percent of our customers renewed their automotive insurance policies in 2008. Visit www.zurichna.com/zdu to see how we can help you. Here to help your world. Insurance coverages and non-insurance products and services are underwritten and provided by 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. *For information about the ratings and financial information of Zurich American Insurance Company, access the ratings section on www.zurichna.com. © 2010 Zurich American Insurance Company 10-0446 Corvette ad for OCADA.in1 1 2/5/10 7:36:08 AM Orange County Automobile Dealers Association 3737 Birch St., Suite 220 PRSRT STD U.S. POSTAGE PAID SALT LAKE CITY, UT PERMIT NO. 508 Newport Beach, CA 92660 This magazine is designed and published by Media Communications Group | 1.888.745.4003