Jack TerHar - Colorado Automobile Dealers Association

Colorado Automobile Dealers Association
Volume 10, Issue 1
January 2010
Jack TerHar
2010 Colorado
Dealer of the Year
See Page 6
Mike Faricy Column ........................ page 2
Tim Jackson Column ......................... page 3
Regulatory & Legal News ................. page 4
DEAC Contributors ........................ page 7
Under the Gold Dome ...................... page 8
Legislative Policy Committee .......... page 8
Dealer Briefing @ the Capitol ......... page 9
Denver Metro Auto Outlook .......... page 10
Jeff Carlson, NADA News .............. page 12
Calendar of Events .......................... page 15
Chair’s Column
FROM THE NEW CADA CHAIR, MIKE FARICY
The first thing I want to do as your CADA Chair is to thank all 121 of you who generously contributed to NADA’s Dealer Election Action Committee (DEAC). I am grateful
for the assistance of our CADA President, Tim Jackson, our NADA Director, Jeff Carlson
and to our CADA Directors who helped me surpass the goal set for us by NADA by quite
a bit. As a result, CADA will earn rebates from NADA that exceed $40,000. Colorado
was fortunate to have thirty dealers contribute to DEAC at the President’s Club level.
This represents nearly 25 percent of contributors! This was the major reason for the success of our campaign and represented over 73 percent of total contributions. Like CADA,
NADA will continue to “stand in the gap” for us at the federal level and protect us from
regulations and legislation harmful to our business and industry.
Mike Faricy
CADA Chair
We have seen a
fundamental change
in our relationships,
not only with our
manufacturers but
also with consumers
and their shrinking
appetite. As
dealers, we have
a history of figuring
things out.
We make do.
We are creative
and flexible.
2
Over the last 3-4 months I have had the opportunity to personally speak with many of
you. For some, business is still very difficult. For others, you enjoyed a better 2009 v.
2008. Some dealers continue to feel the pressure from banks on ever-tightening covenants. Most of us are adjusting to the “new normal” in our respective stores. We have
seen a fundamental change in our relationships, not only with our manufacturers but also
with consumers and their shrinking appetite. As dealers, we have a history of figuring
things out. We make do. We are creative and flexible. I am certain business schools will
use the auto industry turmoil of 2009 as case study material for future MBA programs.
While it will not be easy sailing for 2010, the glass is half full. Business will improve
and most of us will experience small victories throughout the year. Like every recession
before, business always gets better. We just have to keep the faith, continue working on
the basics and hang in there. With each passing day we’re just one day closer to the good
times.
Like you, this business has been very good to me. For the last 68 years, it has provided
for three generations of Faricy Boys (and girls). My sons, Ben and Paul, now own and
operate our store in Colorado Springs, so I have more time to “give back” to our industry. I don’t make forecasts, and I am not a predictor. However, I will promise to do my
best as your CADA Chair for 2010. I will be available to you by e-mail at mikefaricy@
faricy.com or by cell phone 719.491.8007. I appreciate your friendship and value you as a
member of CADA.
Welcome John C. Carroll as Secretary
of the CADA Board of Directors
We are pleased to have John C. Carroll of Ft. Collins join our board.
Carroll is the president/owner of Ed Carroll VW, Porsche, Audi. He
earned a degree from the University of Denver and went on to get
an MBA from the University of Colorado. Carroll is also a graduate
of the NADA Dealer Candidate Academy. An avid telemark skier,
Carroll also enjoys water sports, including one design sailboat racing, power and sailboat cruising, and recreational rowing. He and
his wife Katherine are active in their community with such groups
as the Rotary Club, Girl Scouts, the Fort Collins Chamber of Commerce, South Fort
Collins Business Assoc., and the Volkswagen National Dealer Council. They are also the
parents of three children: Ben, Charlie, and Amelia.
Colorado Automobile Dealers Association
January 2010
President’s Column
YOUR INVOLVEMENT MOVES YOU FORWARD
Recently I mailed you the Better by Association–Executive Memo, which spelled out several of the victories that have been achieved on your behalf by NADA in the nation’s Capitol.
The Colorado General Assembly convened for another 120 day session on Jan.13. With
the recent announcement that Colorado Gov. Bill Ritter will not seek re-election, there
are more issues, races and elections in play than normal. Additionally, the US Congress
re-convened Jan. 11 and will stay in session for most of the time until late September or
early October.
I have always been of the opinion, no one is really safe until the legislators adjourn, Sine Die.
There are ways in which your involvement in CADA can help us help you. If interested,
you can increase the value of your membership by becoming more involved and participating in the priority projects of the association. If you are not already serving on a CADA
committee, there is still time to get involved. Here is a brief summary of each association.
Tim Jackson
CADA President
Legislative Policy Committee (LPC)
PURPOSE: Reviews legislative issues that have an impact on new car dealers and makes
recommendations to the board of directors of CADA. Meetings are held monthly during
the legislative session with an additional two to four meetings between legislative sessions.
Most LPC meetings are held beginning at 7:30 am and are completed within 1½ -2 hours.
CONTACT: Melissa Kuipers, [email protected], 303.457.5115
Member Services Committee
PURPOSE: Makes recommendations on endorsed products and services to board of
directors of CADA. Meetings are conducted by conference call on the first Friday of each
month. Meetings generally last between one and two hours.
CONTACT: Tammi L. McCoy, [email protected], 303.282.1449
Denver Auto Show Committee
PURPOSE: Provides oversight and direction to the development
of the annual Denver Auto Show. Meetings are held once or twice
monthly during the run-up to the start of the show. Meetings generally last 1½ -2 hours.
CONTACT: Tim Jackson, [email protected], 303.282.1448
In the next few days, we will mail a participant flier and seek volunteers to serve the
growing number of association member involvement opportunities.
Later this month, Friday, Jan, 29, CADA will host a “Dealer Briefing at the Capitol” at
which key state legislators will address participating dealers and provide updates as to
the status of issues at the state level. The program begins at 7:15 a.m. and will conclude
shortly after 10 a.m. A separate mailing will be sent soon with all the details about the
upcoming Dealer Briefing at the Capitol.
We hope to see you at an upcoming CADA meeting or training seminar. The more you
are involved, the more effective your membership opportunities become and the greater
the value of your membership investment.
January 2010
There are ways
in which your
involvement in
CADA can help
us help you. If
interested, you
can actually
increase the
value of your
membership by
staying involved
and participating
in the priority
projects of CADA.
Colorado Automobile Dealers Association
3
Regulatory & Legal News
UNIFORM CONSUMER CREDIT CODE - NOTIFICATION FILING
AND FEES MANDATORY FOR DEALERS DUE BY JAN. 31, 2010
The Colorado Uniform Consumer Credit Code (UCCC) is a state law that regulates the terms and conditions of
consumer credit in the State of Colorado. It sets maximum rates and charges for some fees, requires disclosure
of the cost of credit so consumers may shop for the best rates, and provides remedies for consumers on default.
Dealerships, as retail merchants that regularly extend consumer credit and “arrange financing,” are included in the
UCCC requirement to annually file with the state. The UCCC is enforced by an Administrator within the Attorney General’s office.
New law goes into effect this next year so that ALL “creditors” (which includes dealerships that arrange financing) MUST file a
notification form and fee with the state, regardless of how long any paper is held. The previously hard-to-determine volume fee has
also been eliminated, with one, flat notice fee of $50.
The filing fee is due by Jan. 31, 2009 (there is a 30-day grace period; late fees of $5/day apply as of March 1). To download the
memo regarding this change and the revised notice form, please visit the Jan. 5 issue of Open Road at www.cadaopenroad.org.
FTC ISSUES MODEL PRIVACY NOTICE
The FTC and the federal banking agencies have amended the Privacy Rule to include a new model privacy notice that dealers and
other financial institutions may use to describe their privacy policies to their finance and lease customers.
Dealers who adopt the model notice consistent with its instructions will receive safe harbor protection for the
language used in the notice as of Dec. 31, 2009.
Dealers who continue to provide their finance and lease customers with a privacy notice that uses language
from the sample clauses contained in Appendix A to the text of the original Privacy Rule (which required
compliance by July 1, 2001) will lose safe harbor protection for the language used in those notices after Dec.
31, 2010. Accordingly, dealers should consider transitioning to the new model notice before the end of 2010.
There are a number of detailed rules that users of the new model privacy notice must follow. NADA will explain these rules in greater
detail and provide a recap of the Privacy Rule (which involves many compliance considerations beyond the language used in the
privacy notice) in an educational guide that will be sent to NADA members in advance of the Dec. 31, 2010 safe harbor expiration
date that applies to privacy notices using language from the sample clauses contained in the original Privacy Rule.
For a refresher on the Privacy Rule’s application to franchised dealers, see www.ftc.gov/bcp/edu/pubs/business/autos/bus64.pdf.
COLORADO DEPARTMENT OF LABOR ANNOUNCES
MINIMUM WAGE DROP FOR 2010
The Colorado Department of Labor (CDOL) has announced its calculation of the 2010 state minimum
wage. An amendment to Colorado’s Constitution requires the CDOL to recalculate minimum wage each
year based on inflation. This year’s negative inflation rate will cause minimum wage to drop from $7.28
per hour to $7.24 per hour for most employees and from $4.26 per hour to $4.22 per hour for tipped
employees on Jan. 1, 2010. See the “Minimum Wage Fact Sheet” provided in the Dec. 22 issue of Open
Road at www.cadaopenroad.org for more information.
This announcement means Colorado’s minimum wage will be less than the current federal minimum wage
of $7.25 per hour. Employers must pay no less than the higher of the two rates. Visit the CDOL site for more
information: www.coworkforce.com/lab/minimumwage.asp (a Minimum Wage Fact Sheet is available).
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Colorado Automobile Dealers Association
January 2010
Regulatory & Legal News
MSEC ALERT ON EMPLOYER POSTING REQUIREMENTS:
TWO RECENT CHANGES
Reminder: As of Nov. 21, 2009, businesses are required to post a notification explaining the Genetic Information Nondiscrimination
Act of 2008. If you haven’t enrolled in the MSEC subscription poster service, you can print the new posting from the link below. Then
post it next to the EEOC poster you already have. This will bring you into compliance with Federal Requirements: www.eeoc.gov/
employers/upload/eeoc_self_print_poster.pdf. For Colorado Requirements, you need to print off this “Notice to Workers” concerning
unemployment benefits to be in state compliance: www.coworkforce.com/UIT/forms/502Poster.pdf
IRS ANSWERS “CASH FOR CLUNKERS” CONSUMER TAX QUESTIONS
In a recent New York Times article, the Internal Revenue Service’s Peggy Riley clarified
for consumers and dealers whether the “cash for clunkers” rebates are taxable income. In
the event dealerships are asked this question by consumers—some articles and information circulated apparently generated confusion on this. According to the program’s rules,
“the credit is not income for the consumer.” That means no federal income tax, Riley told the Times. Dealers, however, are responsible
for paying taxes on income from the program. To the extent the dealership receives any scrap value for the customer’s trade-in, that
scrap amount also is included in the dealership’s income, according to an automotive alert issued by the IRS’ Motor Vehicle Technical Adviser Terri Harris. The IRS has urged dealers to maintain proper records of the CARS transactions, including the gross receipts
from the sale of the new vehicle, the CARS payment amount, and any expenses incurred to dispose of the traded-in vehicle. To read
the IRS’ automotive alert, visit www.nada.org/cashforclunkers.
TITLE PROCESSING UPDATE: OUT-OF-STATE TITLE PROCESSING CHANGE
Key highlights from DOR memo, Nov. 30, 2009:
As of Jan. 1, 2010, all states are required to come into compliance with federal laws regarding
National Motor Vehicle Title Information System (NMVTIS) and the following requirements
must be implemented:
• In electronic format, at a frequency of once every 24 hours, titling information for all
automobiles maintained by the state must be submitted to NMVTIS.
• Establish a practice of performing a title verification check through NMVTIS before
issuing a certificate of title to an individual or entity claiming to have purchased an
automobile from an individual or entity in another state or in cases of title transfers.
In order to comply with new federal requirements, the following changes were effective
Jan. 1, 2010:
• The ability to print an over the counter title will be disabled for all surrendered outof-state titles. These will all be printed at the state.
We anticipate an increased delay in processing, verifying and printing titles for out-of-state
surrendered titles.
NEW REGULATORY/LEGAL TOPICS INDEX PAGE
A web-based version of all Open Road regulatory/legal articles has been added to the
CADA Open Road web site at www.cadaopenroad.org—articles are sorted by topic, a
direct link to each issue is available from the index, and all of the articles will now be
searchable from CADA’s main web site search functions at www.coloradodealers.org.
January 2010
Colorado Automobile Dealers Association
5
Colorado Dealer of the Year
JACK TERHAR WINS STATE, NATIONAL RECOGNITION FOR COMMUNITY
SERVICE AND INDUSTRY ACCOMPLISHMENTS AT NADA CONVENTION
CADA is pleased to announce Jack TerHar Jr., president of Sill-TerHar Motors Inc., a Ford, Lincoln, Mercury, Aston Martin, Volvo,
Jaguar and Mazda dealership in Broomfield, as the 2010 Colorado Dealer of the Year. This selection allows TerHar to advance to the
national 2010 TIME Magazine Quality Dealer of the Year nomination.
TerHar is one of a select group of dealers from across the country to be honored at the 93rd annual NADA Convention & Exposition
in Orlando at the formal opening of the convention, which is attended by more than 25,000 individuals involved in the automobile industry. The TIME Magazine Dealer of the Year award is one of the automobile industry’s most prestigious and highly coveted awards
for new-car dealers. Recipients are among the nation’s most successful auto dealers, but they must also demonstrate a long-standing
commitment to effective community service.
TerHar, 55, was chosen to represent CADA in the national competition—one of only 45 automobile dealers from 17,000 nationwide,
nominated for the 41st annual award. The award is sponsored by TIME Magazine in association with Goodyear and in cooperation
with NADA. A panel of faculty members from the Ross School of Business at the University of Michigan selects one finalist from
each of the four NADA regions and one national Dealer of the Year.
“I started at the age of seven, cleaning parts shelves,” says TerHar, “then I worked in parts, service and body shop through my early
high school years.”
TerHar graduated from Broomfield High School in 1972, and started selling fulltime at the three-generation Sill-TerHar family store
in 1973. The dealership was opened by Hugo Sill and Jack TerHar Sr. in 1960, back when Highway 287 was a two-lane dirt road, and
120th was the major throughway to Denver. Jack Jr. began his buyout of the dealership in 1978 and completed it in 1989.
In 2001, the company began growing into what it is today—adding Volvo, Jaguar, Aston Martin, Lincoln, Mercury and Mazda, and
building a new $18 million facility. The first new building was a Ford service center, then a state-of-the-art new Ford showroom. In
November 2002, TerHar completed its Premier Automotive Group building which now houses Aston Martin, Volvo and Jaguar as well
as luxury pre-owned vehicles. The dealership now covers three acres, with four buildings and six showrooms.
In addition to his father, over the years TerHar has been joined in the business by no less than seven family members, including his
wife, Penny, and their two daughters. Now, after more than 20 years at the helm, TerHar has begun grooming his nephew, Beau Smith,
to succeed him as the eventual owner of the dealership.
In the area of community service, TerHar has a long and distinguished track record, having supported numerous civic and charitable
groups for decades, including the Broomfield Community Foundation Legacy Committee, The Colorado Children’s Chorale Broomfield, the United Methodist Church Finance Committee, the Broomfield Economic Development
Committee, and the City of Broomfield Beautification Committee.
“The focus we have had in Broomfield is on youth, seniors and the arts,” explains TerHar. “We
have been actively involved in building a community foundation that has an endowment fund to
perpetuate the ability to provide for the needs of the community for many years to come. We give
to all children’s programs: scouts, sports, arts and science.”
For his good works, TerHar has been recognized with numerous awards, including the “Heart of
Broomfield Award” from the Broomfield Community Foundation, which funds civic programs
for young people and the elderly, the Exempla Hospital Good Samaritan Award, recognition
from Chorus America for his support of The Colorado Children’s Chorale, and the “9 Who Cares
Award” from the local NBC affiliate.
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Colorado Automobile Dealers Association
January 2010
DEAC Contributors
While CADA “speaks” for the dealers of Colorado, NADA is our voice on national legislation and regulatory matters,
and also needs a strong national political action committee to further support national issues affecting franchised dealers.
NADA’s political action committee, Dealers Election Action Committee (DEAC), helps dealers contribute to the political election campaigns of pro-business, pro-dealer candidates for election or re-election to the U.S. Congress. Listed
here are dealers who have made contributions to the DEAC, making Colorado the No. 1 state in contributions. And
CADA would like to especially thank Mike Faricy for all his hard work on getting these people to contribute to DEAC.
PRESIDENTʼS CLUB
Nancy Ariano, New Country Auto Center Inc.
Ed Bozarth, Ed Bozarth Chevrolet
Kent Bozarth, Ed Bozarth No. 1 Park Meadow Chevrolet Inc.
Jeffrey Carlson, Glenwood Springs Ford Lincoln Mercury
Jay Cimino, Phil Long Ford LLC
Dean Dowson, Empire Lakewood Nissan
George Eidsness, Transwest Trucks Inc.
Michael Faricy, The Faricy Boys Chrysler Jeep
Gerald Ferris, Western Slope Auto Co.
Calvin Gerbaz, Berthod Motors Inc
Donald Gerbaz, Berthod Motors Inc
Robert Ghent, Ghent Motor Company
Greg Goodwin, Kuni Lexus LLC
Gunnar Heuberger, Heuberger Motors Inc.
Donald Hicks, Shortline Auto
Jim Loftus, Land Rover Flatirons
John Medved, Medved Chevrolet Cadillac Hummer
William D. Moreland, Canon City Auto Plaza
Mark Murray, Murray Motor Imports Co.
Mary Pacifico-Valley, Rickenbaugh Cadillac Volvo
Lee Payne, Planet Automotive
Michael Peebles, Barbee’s Freeway Ford
Robert Penkhus, Bob Penkhus Volvo Mazda Volkswagen
Thomas Perkins, Perkins Motor Co.
John Schenden, Pro Chrysler Jeep Dodge
Michael Shaw, Mike Shaw Automotive
Kent Stevinson, Stevinson Lexus of Lakewood
Paul Suss, Suss Pontiac GMC Truck
John TerHar, Sill TerHar Motors Inc.
Mark Wallace, Ralph Schomp Automotive
DEAC CONTRIBUTORS
Thomas Abbott, Montrose Ford Nissan
Donald Adis, Prestige Imports Inc.
Alex Amos, Woodmen Nissan
Jeffrey Baca, Denver Isuzu Suzuki
Tim Baldridge, Front Range Honda
William Barr, Spradley Barr Ford Inc
Eric Baumgart, Saturn of Fort Collins
Roger Belisle, Markley Motors Inc.
Henry Block, Quality Mitsubishi Inc.
Philip Bonfanti, Phil Long Auto Group
Ron Bubar, Grand Junction Subaru
Thomas Buckley, Red Noland Infiniti Jaguar Land Rover
Emanuel Bugelli, Gateway Mazda
Rod Buscher, Groove Toyota Scion
John Carroll, Ed Carroll Motor Co. Inc.
Beth Casey, Colorado Mack Sales & Service
Robert Colbert, Emich Chevrolet
Jerry Colten, Al Serra Chevrolet Hummer LLC
Larry Cook, Cook Chevrolet
Scott Cook, Cook Chevrolet
Bill Crouch, Flatirons Imports
Anthony Cuomo, Tri-County GM Inc.
R. Michael Dellenbach, Dellenbach Motors Inc.
Warren Diodosio, Diodosio Motor Co.
Terry Dixon, Courtesy Acura
Steven Doersam, Boulder Toyota Scion
Michael Edwards, Grand Junction Chrysler Jeep Dodge, Inc.
Scott Ehrlich, Ehrlich Motors Inc.
Fred Emich, Emich Volkswagen
January 2010
Benjamin Faricy, The Faricy Boys Chrysler Jeep
Joseph Faricy, Faricy Ford Lincoln Mercury Inc.
Luke Faricy, Faricy Ford Lincoln Mercury Inc.
Paul Faricy, The Faricy Boys Chrysler Jeep
R. Craig Fisher, Fisher Chevrolet and Honda
Lynn Fisher-Rickman, Fisher Chevrolet and Honda
Daniel Fitzgerald, Pueblo Toyota Inc.
Fletcher Flower, Flower Motors Co. Inc.
Robert Fuoco, Jim Fuoco Motor Co.
James Gattis, Grand West Kia
Joe Gebhardt, Davidson Gebhardt Chevrolet Subaru
Christopher Hall, Christopher Dodge World Inc.
Bill Hellman, Hellman Motor Co.
Dan Johnson, Len Lyall Chevrolet Inc.
Richard Johnson, Johnson Auto Plaza
Mike Jorgensen, Red Noland Cadillac Saab
Joe Keesee, Keesee Motor Company
Steve Keetch, Steve Keetch Motors
Yale King, King Auto Group
Ronald Korf, Korf Continental
Richard Levine, Columbine Ford Inc.
Robert Liedel, Lakewood Fordland Inc.
Jon Lind, Burlington Ford Lincoln Mercury
Steve Lindner, Lindner Chevrolet Cadillac Inc.
James Lyall, Len Lyall Chevrolet Inc.
Mike Malin, Grand Auto
Chris Maneotis, Victory Motors of Craig Inc.
Doug Markley, Markley Motors Inc.
Eugene Markley, Markley Motors Inc.
Mike Marquez, John Roberts Motor Works
Mark McCaddon, McCaddon Cadillac Buick Pontiac GMC
Scott McCandless, McCandless International Trucks of Colorado
Joe McCloskey, McCloskey Suzuki
James Morehart, Morehart Murphy Regional Auto Center
Gerald Morris, Broadway Dodge
J. Murphy Morehart, Murphy Regional Auto Center
Mike Naughton Sr., Mike Naughton Ford
Randy Nichols, Land Rover Flatirons
Steven Nilsson, Glenwood Springs Ford Lincoln Mercury
N.B. Noland, Red Noland Cadillac Saab
Evan O’Meara, O’Meara Ford Center
Roland Purifoy, Purifoy Chevrolet Co.
Monte Roder, Economy Nissan Inc.
Vincent Schreivogel, Vince’s GM Center
Dave Solon, Dave Solon Nissan
Kriss Spradley, Spradley Barr Autoplex
Adolf Stammler, Stammler Imports
Jeffrey Steinke, Phil Long Audi /My Wheels Suzuki
Gregg Stone, Kuni Lexus LLC
James Suss, Suss Pontiac GMC Truck
Earl Taber, Honda of Greeley
Jerry Thompson, Craig Ford Mercury Inc.
Ross Turner, Turner Automotive Inc.
Edward Tynan, Tynan’s Volkswagen Inc.
Matt Tynan, Tynan’s Volkswagen Inc.
Pete Tynan, Tynan’s Volkswagen Inc.
Sean Tynan, Tynan’s Nissan Kia Saab
Tim Van Binsbergen, Mountain States Toyota
William Wilcoxson, Wilcoxson Buick Cadillac GMC
Philip Winslow, Phil Winslow Motors
Kent Wollert, Wollert GMC
Stephen Zeder, Bighorn Toyota
Colorado Automobile Dealers Association
7
Under the Gold Dome
SEVERAL MEASURES MOVING FORWARD
FOR 2010 BALLOT
Information provided by the Economic Development Council of Colorado
Last spring, proponents of three ballot initiatives filed the required paperwork with the
Office of Legislative Council and subsequently with the Colorado Secretary of State to
put these initiatives on the November, 2010 general election ballot. At the time, these
were labeled Initiatives #10, #12, and #21.
Todd Bondy
Murray Motors,
Denver
Ben Faricy,
The Faricy Boys,
Colorado Springs
Legislative Policy Committee
The LPC is an open
forum, round-table
style discussion
group that meets
once a month to
discuss the current
state of politics in
Colorado and how
it affects you and
your dealership.
Melissa Kuipers, Esq.
CADA Vice President,
Government Relations
& Communications
8
After setting of the respective titles of the three initiatives and approval of the petition format by the Secretary of State, the proponents then were required to gather signatures of at
least 76,047 qualified Colorado voters (5 percent of the total number of votes cast in the
last general election for the office of Secretary of State). Proponents turned in petitions
with about 140,000 signatures for each of the initiatives and in early December, Colorado
Secretary of State Bernie Buescher certified the three measures for next fall’s ballot.
• Proposition 101 is a statutory change that will drop motor vehicle registration fees
to $10 per year and lower the state income tax rate from the current 4.63% to 3.5%.
It is estimated that this would cause state revenues to drop an additional $1.2 billion. It should also be noted that a large portion of the Highway Users Trust Fund,
used for maintenance and construction of the state’s highways, is funded from
motor vehicle registration fees. (Note: Beginning in 2010, statutory changes will be
labeled “Proposition” and constitutional changes will be labeled “Amendment”).
• Amendment 60 is a constitutional change that will make significant changes in
property tax law. It appears that the numerous “de-Brucing” elections that have successfully passed since 1992 will be overturned and phased out, having a huge impact
on local governments and school districts. This in turn would have a disastrous impact on the state budget because of the required state backfill to local K-12 districts.
• Amendment 61 is a constitutional change that will prohibit any debt financing
by the state or any local government, regardless of enterprise status, without voter
approval and would require that any existing debt be paid. This is important in that
many local and state-owned buildings and structures are financed with certificates
of participation, which require an annual appropriation, but allow schools, libraries,
prisons and college buildings to be constructed and paid for over time.
LET YOUR VOICE BE HEARD!
Do you have an interest in protecting the investment you have made in your dealership? Do you recognize that the government will have a say in your business whether
you like it or not? Do you want a voice in CADA’s legislative agenda? Then YOU
should join CADA’s Legislative Policy Committee. The LPC is an open forum, roundtable style discussion group that meets once a month to discuss the current state of
politics in Colorado and how it affects you and your dealership. During the legislative
session, your involvement in the LPC is especially critical. Political activism is one of
the many benefits you receive from your CADA membership and you can and should
have a say in what we do at the Capitol. Especially in light of the historic termination
of dealers in 2009, we need you to be a part of our political dialogue. The General Assembly in Colorado begins Wednesday, Jan. 13 and will continue through early May.
Our next meeting will be Wednesday, Feb. 17 at CADA at 7:30 a.m.
Colorado Automobile Dealers Association
January 2010
Dealer Briefing at the Capitol
~ SAVE THE DATE ~
DEALER BRIEFING @ THE CAPITOL
JANUARY 29, 2010
7:15 a.m.
-
Meet @ the Capitol, Room #112
7:30 a.m.
-
Legislators to address the dealers. Hear from:
House Speaker Terrance Carroll,
Senate President Brandon Shaffer,
Rep. Joe Rice, and Senator Chris Romer
9:00 a.m
-
10:00 a.m -
Dealers visit floor action in House and Senate
Program concludes
For more information and to RSVP,
please contact Lauren Stadler at
[email protected]
or 303.457.5123.
www.coloradodealers.org
January 2010
Colorado Automobile Dealers Association
9
Denver Auto Outlook
10
Colorado Automobile Dealers Association
January 2010
Denver Auto Outlook
January 2010
Colorado Automobile Dealers Association
11
From the NADA Director
NADA PROTECTS AUTO DEALER EXCLUSION
IN HOUSE FINANCIAL REFORM BILL
Led by NADA’s strong grassroots efforts, auto dealers would be exempt from oversight by
a new Consumer Financial Protection Agency (CFPA) under a sweeping overhaul of the nation’s financial regulatory system passed by the U.S. House of Representatives on Dec. 11.
An amendment supported by NADA and sponsored by Rep. John Campbell, R-Calif.,
to exclude auto dealers from CFPA jurisdiction gained broad, bipartisan support, while
a separate amendment that would have included auto dealers under the jurisdiction of
CFPA was withdrawn by its sponsor, Rep. Mel Watt, D-N.C. The 1,279-page bill passed
by a vote of 223-202.
To address concerns from Rep. Watt and other committee members, NADA worked with
Rep. Campbell to clarify the scope of the exemption. Under the bill,
banks and finance companies that fund and service auto loans arranged
by dealers for their customers would be regulated by CFPA, including
dealerships that operate “buy here, pay here” lots.
Jeff Carlson
Glenwood Springs Ford
Colorado NADA Director
Late last month
the House Financial
Services Committee
approved a key
amendment, 47-21,
to keep automobile
dealers under the
already effective
state and federal
laws that govern
vehicle financing...
NADA led
a grassroots
campaign in
support of the
Campbell
amendment.
12
“It is quite clear that Representatives on both sides of the aisle realized auto dealers were
not part of the problem that caused the economic downturn,” says David Westcott, chairman of NADA’s Government Affairs Committee and a multifranchise dealer from North
Carolina. “Dealer-assisted financing is already effectively and efficiently regulated at
both the federal and state levels.”
The financial reform legislation now heads to the Senate Banking Committee, which will
consider it early this year.
President Obama Signs 2010 Spending Bill
with Dealer Rights Provision
On Dec. 17, President Obama signed the 2010 Spending Bill, which contains a provision
granting certain GM and Chrysler dealerships and former dealerships the right to demand
binding arbitration with GM or Chrysler to determine whether that manufacturer must be
required to restore the dealership to the manufacturer’s dealer network.
Congressional passage of the bill and the subsequent signing by the president was the
culmination of months of work by NADA and other dealer groups to obtain a fair and
meaningful arbitration process for affected dealers. NADA praised members of Congress,
including Majority Leader Richard Durbin, D-Ill.; Sen. Chuck Grassley, R-Iowa, the lead
sponsor of the legislation in the Senate; Sen. John D. Rockefeller, D-W.V., chairman of
the Senate Commerce Committee; and Sen. Kay Bailey Hutchison, R-Texas, for their efforts to gain a fair resolution for dealers.
“NADA commends the Senate and House leaders who fought to keep the dealer rights
amendment in the spending bill,” NADA said in a statement. “The dealer rights provision
will provide affected General Motors and Chrysler dealers and their respective automakers
with a fair arbitration process to resolve ongoing concerns about recent dealership closures.”
Copies of the new law and the Conference Report that accompanied the legislation are
available at www.nada.org under the “Dealer Rights” tab. NADA also issued a memo to
all GM and Chrysler dealer members with important points about the arbitration process.
Colorado Automobile Dealers Association
January 2010
NADA News
IN OTHER NADA NEWS
NADA Enhances Convention Experience Through Social Media — To enhance
the experience for attendees, NADA—for the first time—has launched a social media campaign using
the popular LinkedIn, Facebook, Twitter and YouTube platforms. “By using these social media sites,
dealers and exhibitors can get a head start on what to expect at the convention,” says Steve Pitt, NADA
vice president of conventions and expositions. “Attendees will receive breaking news announcements.
Dealers and their managers will also be able to interact online with instructors before workshops begin
and get a jump-start on reviewing exhibitor products and services that can improve their businesses.” To
follow convention developments on the social media sites, visit www.nada.org/convention and click on
the icons.
New Executive Track Workshops Offered at Convention — Ever wish there were a Super Workshop every
day of the convention? This year there will be! The new Executive Track targets the interests of executive level managers—
business growth, organizational change, financial outlook, and generational challenges—and presents four special workshops
along with our standard sessions. On Friday, Feb. 12 at 3:15 p.m., Inc. Magazine senior consultant and author Steve Little
will discuss “The Irrefutable Rules of Growth: Seeing the Future of Your Opportunity.” On Saturday, Feb. 13, at 11 a.m.,
Tulane University’s “funny economist” Peter Ricchiuti will tell “How Uncertainty Brings Opportunity.” Dan Coughlin,
author and organizational change expert, will show you how to “Accelerate Through the Storm” with “Practical Approaches
to Improve Business Momentum” on Sunday, Feb. 14, at 11 a.m. Wrapping up the
Executive Track on Monday, Feb. 15, at 8:30 a.m., Eric Chester, premier expert on
Generation Why—and recruiting, training, managing, motivating, and retaining
them—will discuss “Dealers Dealing with Generation Y: How to Drive Service,
Performance, and Productivity Through Your Young Employees.”
NADA University Partners with LightSpeed VT — NADA University has partnered with LightSpeed VT, a
global leader in interactive-based training systems for the auto industry, to deliver NADA University to users in a convenient,
one-source format combining both online and classroom-based solutions. The NADA University launch will take place at
the NADA Convention in Orlando, Feb. 13-15. Demos and member access credentials will be provided on site at the NADA
University booth (#1801) and the NADA University studio at the convention center. At the studio, dealers
can record messages of welcome that their employees will see when they log on to NADA University.
This month, NADA will announce Preferred Partners, the leading industry trainers who will offer their
online programs through the NADA University Learning Hub. The Learning Hub will also provide substantial complimentary training for NADA and ATD members.
ʻMarket Insightʼ Free Webinar Series Debuts Jan. 19 — The first Webinar in NADA
University’s free monthly Webinars is scheduled for Tuesday, Jan. 19, 1 p.m. to 2 p.m. Tim Zierden,
ADESA Vice President of Dealer Consignment, will present “New Year, New NAAA Arbitration Policy.” Zierden will provide
attendees with an overview of the used-car market today, and he will discuss the new NAAA Arbitration Policy, how the policy
affects dealers and the industry, and the benefits of standardized arbitration practices across all auction chains. To register, click
here or call 800-252-6232, ext.2.
NADA Compensation Study 2009 Mailed to Members — Employee compensation and benefits are among
dealers’ most significant expenses, and a motivated and skilled staff is critical to dealers’ business success. NADA
Compensation Study 2009 serves as a resource to help dealers assess their situation and balance those needs. This
year’s guide contains two valuable additions: NADA Chief Economist Paul Taylor has significantly expanded the introductory analysis section to provide greater insight into the data; An entirely new section is provided on pay plans.
Future NADA Management Guides to be Delivered Online — With the February launch of NADA
University, member publications will no longer be printed and mailed; they’ll be available online only at NADA University’s
Resource Toolbox. With a new, easier-to-use format, you’ll have an executive summary, electronic routing to the staff you
choose, and online tracking to ensure the material was reviewed and understood. NADA University includes significant new
training, resources, and technology – much of which will be provided free to NADA and ATD members and their staffs. We
need current, correct email addresses in order to deliver this unprecedented new training and education resource. Be there
when we launch NADA University! Please go to www.nada.org/membership now to update your profile and make sure we
have your correct email address.
January 2010
Colorado Automobile Dealers Association
13
CADA Board of Directors 2010 & Staff
OFFICERS
Chair of the Board
Mike Faricy
The Faricy Boys, Colorado Springs
Vice Chair
Don Gerbaz
Berthod Motors, Glenwood Springs
Robert Fuoco
Fuoco Motor Company
Grand Junction – District #11
Steve Nilsson
Glenwood Springs Ford
Glenwood Springs – District #12
Jeff Carlson
Glenwood Springs Ford
Colorado NADA Director
Secretary
John Carroll
Ed Carroll Motor Co., Fort Collins
Todd Bondy
LPC Co-Chair
Murray Motor Imports
Treasurer
Don Hicks
Shortline Auto, Denver
Immediate Past Chair
Nancy Ariano
New Country Auto Center, Durango
DIRECTORS
President
Tim Jackson, CAE
[email protected]
303.282.1448
Vice President
Tammi L. McCoy
[email protected]
303.282.1449
Lee Payne
Planet Honda
Golden – At-Large
Gregg Stone
Kuni Lexus of Littleton
Littleton – District #1
Vice President Government Relations and Communications
Melissa Kuipers, Esq.
[email protected]
303.457.5115
Jim D. Lyall
Len Lyall Chevrolet
Aurora – District #2
Bond Coordinator
Linda Toteve
[email protected]
303.457.5122
John Schenden
Pro Chrysler Jeep
Thornton – District #3
CADA F&I Resource Center Manager
Michelle Chavez
[email protected]
303.457.5119
Jack TerHar, Jr.
Sill TerHar Motors
Broomfield – District #4
Ed Tynan
Tynan’s Fort Collins Nissan-Kia-Saab
Ft. Collins – District #5
Wes Taber
Honda of Greeley
Greeley – District #6
Insurance Services - Account Manager
Deb Lay
[email protected]
303.282.1453
Insurance Services - Account Manager
Bob Kogel
[email protected]
303.282.1457
John Motschall
Ehrlich Toyota East
Ft. Morgan – District #7
Elizabeth Daniels
Daniels Chevrolet
Colorado Springs – District #8
Bill Wilcoxson
Wilcoxson Buick Cadillac GMC
Pueblo – District #9
Jim Morehart
Morehart Murphy Regional Auto Center
Durango – District #10
14
CADA STAFF
Executive and Communications Assistant
Lauren Stadler
[email protected]
303.457.5123
Services Coordinator
George Billings
[email protected]
303.457.5117
CADA Headquarters • William D. Barrow Building
290 E. Speer Blvd. • Denver, CO 80203
Phone: 303.831.1722 • Fax: 303.831.4205
Website: www.coloradodealers.org
Colorado Automobile Dealers Association
January 2010
Calendar of Upcoming Events & Seminars
To stay up-to-date on the Denver Auto Show,
sign up for the new Drive Denver weekly
e-newsletter at www.drivedenver.org
For the most current list of CADA seminars and events, visit the online calendar at
www.coloradodealers.org/calendar
EVENT DESCRIPTION
Dealer Briefing at the Capitol
Denver
NADA Convention & Exposition
Jan. 29, 2010
7:15-10 a.m.
Colorado State Capitol
Room #112
200 East Colfax Avenue
Denver, CO 80203-1776
Phone: 303.831.1722
Feb. 13-15, 2010
Orange County Convention
Center, Orlando FL
Go to www.nada.org/TrainingEvents/
Convention/ for more details.
Feb. 17, 2010
7:30 a.m.
William D. Barrow Building
(CADA Headquarters)
290 E. Speer Blvd
(SW Corner of Grant/Speer), Denver
Phone: 303.831.1722
Wednesday, April 7
thru Sunday, April 11,
2010
Colorado Convention Center
700 14th Street Denver 80202
Go to www.denverautoshow.com
for more details.
Monday, Aug. 9
Save the date!
Lakewood Country Club
6800 W. 10th Avenue
Lakewood, CO 80214
Orlando, Fla.
Legislative Policy Committee Meeting
Denver
Denver Auto Show
Denver
CADA 2010 Golf Event
Lakewood
LOCATION
DATE/TIME
BE INFORMED...STAY INFORMED...WITH THE OPEN ROAD
To stay current with dealer news, management alerts, upcoming seminar and event details, legislative status
reports, regulatory updates, industry news and trends, local dealer milestones, and other important items, make
sure you are receiving the weekly Open Road e-newsletter. We launched this service because we understand
the importance you place on timely information and communication. So far, many dealers have commented on
how worthwhile this service is and how it has brought significant benefit to their operations.
To sign up for this FREE service, go to www.cadaopenroad.org/enewsletter
January 2010
Colorado Automobile Dealers Association
15
CADA Building Use Policy
CADA Building Use Policy
CADA is located on the Southwest corner of Grant and Speer Blvd; the two-story ivory colored building that looks like a small mansion. Parking is available on the south side of the building or on the street. You may park in the Red Cross parking lot if there are no
other spaces available. CADA business hours of operation are Monday to Thursday, 7 a.m. to 5 p.m. and Friday, 7 a.m. to 4 p.m.
The CADA Board of Directors maintains specific policy with regard to the use of the headquarters, William D. Barrow Building, located at 290 E. Speer Boulevard, Denver, CO 80203, for various events and meetings. Under this policy and as a public service to the
State of Colorado, CADA provides the use of its headquarters to community-based and political organizations, including candidates
for local, state and national office, regardless of party affiliation.
CADA reserves the right to approve or disapprove access to its facilities on a space availability basis and with priority preference given to
member dealers and association functions. Providing the use of its facilities to a community organization, political committee or political
candidate should not be viewed or construed as a political endorsement or indication support of any candidate, party, position or policy.
AUTO INDUSTRY RESOURCES
•
•
•
Auto Industry Division: 303.205.5746, www.colorado.gov/revenue/AID
Titles/Registration: 303.205.5608, www.colorado.gov/revenue/dmv (Select “Title - Register a Vehicle” link)
Department of Revenue Taxation: www.colorado.gov/revenue/tax
Bulletin questions or comments? If you have questions about items in this newsletter or suggestions for future
articles, please contact Lauren Stadler at 303.457.5123 or e-mail to [email protected].
DISCLAIMER: CADA IS NOT AUTHORIZED TO DISPENSE LEGAL ADVICE. THE INFORMATION CONTAINED IN THIS NEWSLETTER IS FOR
INFORMATIONAL PURPOSES ONLY. CADA ADVISES THAT DEALERS CONSULT LEGAL COUNSEL ON THE SPECIFICS OF ANY LAW OR
REGULATION TO ENSURE FULL COMPLIANCE.