A “Perfect Storm” for Gifting 2012 Convention Edition
Transcription
A “Perfect Storm” for Gifting 2012 Convention Edition
The Official Publication of the Hawaii Automobile Dealers Association 2012 Convention Edition A “Perfect Storm” for Gifting See story on Alan Karbowsky’s remarks on gift tax and how it affects dealers, page 6. L-R, Brad Nicolai, Alan Karbowsky. Fi 2012 Convention Edition le Ph ot o Other Stories in this Edition: HADA Membership Contact Information pages 14-19 Sen. Daniel Inouye speaks at Aug. 13, 2012 kickoff event on Maui in the Japan-U.S. Smart Grid Project. pg. 12 HADA Membership as “Q” file photo from 2009 50th Anniversary. pg. 10 8 in 10 Reach Oahu adults EVERY WEEK with Honolulu Star-Advertiser The Star-Advertiser reaches 538,214 Oahu adults in print and online every week, including 90% of those who plan to buy a new luxury vehicle, SUV or van in the coming year. LOOK FOR THE PULL—OUT AUTO SECTION EVERY FRIDAY IN THE STAR-ADVERTISER Source: Scarborough Research 2011 R2 (Oct2010-Sep2011) – Bases are 707,000 total Oahu adults and 22,904 who plan to buy a new luxury vehicle, SUV or van in the next 12 months. Hawaii’s Media Leader staradvertiser.com For more information on advertising, contact Patrick Klein: 808-529-4842 Media Kit available online at oahupublications.com The pulse of paradise. PRINT | MOBILE | WEB | APP Dear HADA Members, Hawaii Automobile Dealers Association 1100 Alakea Street, Suite 2601, Honolulu, HI 96813 (808) 593-0031 • Fax: (808) 593-0569 2011-2012 HADA Officers & Directors President Nick Cutter President-Elect Mike Niethammer Vice President Eric Fukunaga I t has been my great pleasure to serve as your President for the second time. After 34 years in the automobile industry in three states, I have to tell you, there is not a better group of dealers in America. While we are fierce competitors, when it comes to protecting and Secretary Joe Nicolai supporting Treasurer Ron Hansen we could show our politicians the NADA Director Joe Hanley ability to work together whether Hawaii Director communities is the foundation of Maui Director Damien Farias Oahu Director Bill van den Hurk Oahu Director Morrie Stoebner Oahu Director Jack Jackson Oahu Director Dan Keppel Kauai Director Dan Mackey At Large Director John Uekawa Immediate Past President Stan Masamitsu our industry, our cooperation is unparalled. If only true meaning of cooperation. This it’s politically or to help our HADA. Our focus on education, energy and next generation dealers I believe has been successful, and I am very pleased to welcome our incoming President, Mike Niethammer. Our next generation dealers are all intelligent, hard working people. I believe they will advance and promote our industry through creating great paying jobs, and supporting our local communities. My best wishes to all dealers and my thanks to all sponsors and supporters of HADA. Mahalo, Nick S. Cutter 2011 – 2012 HADA President HADA Staff Executive Director Dave Rolf Dealer Services Manager George Cochard HawaiiDealer is designed & published by Custom Publishing Design Group, Inc.® 800.246.1637 • www.MyCompanyMagazine.com. To advertise in an upcoming issue contact Twinka Tison, 904.242.8586 or e-mail [email protected]. HawaiiDealer is published quarterly by the Hawaii Automobile Dealers Association, 1100 Alakea Street, Suite 2601, Honolulu, HI 96813 Phone: 808 593-0031 Fax: 808 593-0569 Email: [email protected] 4 Welcome to the fast lane. When you need a quick approval, give us a call and we’ll get you an answer in seconds. After all, we know that in your business, the sooner we say yes, the faster your customer will do the same. For responsive service, financial solutions that increase your sales and the security of Hawaii’s oldest and largest bank, come to the bank that puts the pedal to the metal for you. learn more. call our Dealer Center at 8 44 -3860 Service. Solutions. Security. Yes, We Care. FHIB-21710R2_7-75x10-25_v3.indd 1 9/13/12 8:19 AM 5 “Perfect Storm” For Gifting T he current tax environment can be described as a “perfect storm” for those who wish to take advantage of the current situ- ation to achieve “thunderous” results. A prominent estate planning attorney recently stated that he rarely uses such superlatives in his writing and reads their use by others with skepticism. Highlights of this perfect storm include: 1. High Applicable Exclusion Amount. As noted above the gift tax applicable exclusion amount and the generation-skipping transfer (GST) exemption are both $5.12 million for an individual and double that for a married couple. Absent a conscious change by Congress, these amounts drop to $1 million at the stroke of midnight December 31, 2012. The current exemption amount has never been higher. 2. Low Marginal Estate and Gift Tax Rate. The current rate is 35%, which many believe is as low as will be seen for the foreseeable future. Any increase in the marginal rate will increase Brad Nicolai, Alan Karbowsky, Ryan Mackey and Dan Mackey at the July 26th, 2012 HADA presentation on the gift tax law the cost and reduce the attractiveness of many gift and estate planning techniques. 3. Extremely Low AFRs. The long-term Applicable 5. Defined Value Clauses. Now is a great time for Federal Rate (AFR) (annual basis) has risen from charitably inclined dealers holding hard-to-value 2.60% in January 2012 to 2.89% in May 2012. assets to make gifts and sales of the property. In Recent months have seen rates quite low relative to doing so, a stated dollar amount would be allocated historical levels. to a trust for the benefit of descendants, with the 4. Depressed Real Estate Asset Values. Many real estate segments remain depressed in value relative to historical levels. 6 remainder being allocated to charity. This technique has been upheld in several courts, but the IRS may promulgate contrary rules in the future. PRACTICAL QUESTIONS 1. Can you afford to make the gift? Said differently, is there a chance that you will run out of money if you make the gift? 2. Are you prepared to pay [state] gift taxes? 3. What impact will the gift have on your children? 4. What assets should be given? 5. Are you willing to give up control of the assets you are transferring? 6. Should you transfer “discounted” assets such as fractional interest in real estate or interest in corporations, LLCs, or limited partnerships? 7. Should you make the gift to a trust rather than directly to the recipient? Many clients have decided to use a trust. 8. If you use a trust, what are the trustees and distribution provisions? 9. If you use a trust, should you allocate generation-skipping transfer tax exemptions to the trust? The answer is usually yes. 10. How will gift impact your overall estate plan? 11. When should the gift be made? 6. Valuation Discounts. Taxpayers have been giving both voting and nonvoting minority interest in business for many years, taking advantage of allowable minority interest and marketability discounts. Other taxpayers have placed such assets into Family Limited Partnerships (FLPs or LLCs or other asset holding entities) and achieved reasonable discounts at the level of the holding company as well. The presentation was provided to HADA dealers by Alan Karbowsky, ASA, CFA, Corporate Valuation Specialists Ph 707-538-5559 [email protected] 7 HADA Meeting In Washington D.C. The message HADA delivered to the Hawaii Congressional Delegation during the September 11-12 trip to Washington D.C. was that dealerships provide lots of well-paying jobs. L-R, David Rolf, Stan Masamitsu, and Senator Daniel Inouye I n the early days of the country, the third American president, Thomas Jefferson, authorized the purchase of a large amount of land which was the western portion of the Mississippi River basin—it was to become later known as the American continent. For raw land to become “property” it had to be worked — a European concept advanced by John Locke, which likely emerged from the idea that when one worked, the labor entered into the object. Jefferson, earlier, in drafting the Declaration of Independence, used the Locke concept in developing Jefferson’s idea of a Divine Power endowing mankind with inalienable rights to life, liberty and the pursuit of property. But for a variety of reasons the committee assigned to draft the Declaration of Independence changed Jefferson’s reference to property to a right to pursue happiness. It can be said that happiness involves the concept of achieving freedom by the value one adds. Work adds value. Today, 14 million Americans who would like to be working, are not employed. Individual happiness, and indeed the collective happiness of America, is adversely affected when fellow citizens don’t have work. 8 Businesses in a free America have the role of bettering people’s lives by providing products and services while acting with integrity within laws, and with ever-increasing efficiency. The job before us as Americans is that of removing barriers that prevent achieving efficiencies. There is no such thing as a non-business economic recovery. So what is the biggest barrier to business recovery? It is found in one issue: uncertainty. Uncertainty is the shifting ground that is causing businesses to stand frozen, holding on to their capital instead of using it at a time when the country needs that money flowing into measured-risk enterprises and more employment. Family-owned businesses have to deal with the uncertainties surrounding the estate tax. Since publicly-owned companies don’t die, family-owned, “generational” companies, like all of Hawaii’s new car dealerships, are at a distinct competitive disadvantage with it comes to estate tax policy and the uncertainty surrounding it. Hawaii’s new car dealers asked our Congressional Delegation’s members for help in fixing the estate tax at an exemption level and rate that allows family-owned businesses to plan for a long and prosperous future. Quality Petroleum Products & Convenience Stores DIESEL EXHAUST FLUID Convenience Stores Terminalling Services Alternative Fuels Lubricants Ethanol Free Gasoline Bulk Product Delivery Call us if you’d like to purchase an advertisement in this magazine! 800.246.1637 Operations on Oahu, Maui, Kauai & Hawaii MyCompanyMagazine.com An approved distributor of Shell Gasoline Auto dealer lenders, we’ve got loans that get clients in your cars and out the door. MIKE WARING WAYNE ARAKAKI EDSON TOMA Vice President & Credit Manager Ph: 544-3731 Fax: 973-7565 [email protected] Assistant Vice President, Dealer Center Ph: 544-5282 Fax: 973-7565 [email protected] Dealer Center Loan Officer Ph: 544-5284 Fax: 973-7565 [email protected] Experienced. Flexible. Prompt. If you’re looking for competitive rates and fast approvals, call today and see how we can help make auto loans work for you. COMPETITIVE RATES FLEXIBLE TERMS QUICK LOAN APPROVALS 12-CPB-0813A HiDealer.indd 1 RESPONSIVE SERVICE 8/31/12 5:25 PM Matsumoto & Clapperton Advertising Date: 8/3112 Client: Central Pacific Bank Job #:12-CPB-0813A Title: “Auto loans that get them in your car and out the door." 9 o ot Ph le Fi HADA Membership As “Q” (2009 File Photo From 50th Anniversary event) B ecause HADA’s 29 Hawaii dealers represent 100 percent of the new car dealers in the state and represent all of the 40 major worldwide automakers, and because all of Hawaii’s dealers are part of family-owned dealerships…the HADA dealer body thus becomes “Q” – a representative model for all of the nation’s 17,000 new car dealers in NADA. The dealers here in Hawaii face most of the same issues with regard to the estate tax as do the dealers in Minnesota for example. Dealers in Hawaii have thus taken on the responsibility to study complex tax issues like this, and log in. This happened in the year 2000 when Hawaii dealers provided much of the input for the development of the estate tax grid. Hawaii’s dealers recently had the highest participation among all the dealers in the 50 states in the recent NADA WorkForce Study. Hawaii’s 66 dealerships provide 3,113 well-paying jobs. A person with no experience, and a family to support, can walk into a new car dealership in Hawaii and earn more money for the work, quicker, than in any other job category. Hawaii’s family-owned dealerships have been providing these well-paying jobs and careers for, in many cases, decades. The dealership is a model that needs to be preserved. 10 One can go survey a small “Q” group to get a feel for how the whole nation’s group in that specific business category would feel about an issue. Hawaii dealers take the national issues seriously and the “Q” group responsibility seriously. At the moment, HADA’s small dealer base is disproportionately influential on some national issues because of the ability to mobilize dealers’ input on complex issues, like estate tax, or renewable energy policy. Because Hawaii’s members of Congress and their staffs welcome dealers’ insights and input, the members of our Congressional delegation have been influential in Washington D.C. in developing solutions to some of the complex issues facing our country. Estate tax being the most notable. Our HADA members are also logging in on the 54.5 mpg issue, and the transition to renewable energy in cars and light trucks. We’re Movin’ Up Still Time to Jump On For Information Contact: Linda R. Fisher, President (714) 612-6176 Email: [email protected] Japan-U.S. Smart Grid Project On Maui Involves EVs M aui will be the site for a Japan-U.S. Smart Grid project managed by Hitachi and coordinated by the New Energy and Industrial Technology Development Organization (NEDO) Senator Daneil Inouye, center, Lt Gov. Brian Schatz, left, and Governor Neil Abercrombie. Senator Daniel Inouye, Governor Neil Abercrombie, and Lt. Governor Brian Schatz were at the August 13, 2012 kick off of the project which will involve hundreds of electric vehicles in the project that will study the fluctuation of the photovoltaic power generation when EVs are introduced. HADA’s involvement was mentioned frequently during the governor’s remarks. The 200 or so electric vehicles introduced on the island by private owners and car rental firms for the project may be enough to keep the HADA-projections for EV introductions on track to meet the objectives of the Hawaii Clean Energy Initiative. HADA estimates that 680 EVs will need to be introduced in 2012, in addition to the 320 EVs introduced in 2011 for Hawaii to remain on track for the yearly benchmarks of the HCEI. From driving operational efficiencies through navigating the road ahead. For more than seven decades, we’ve helped auto dealers enhance their operations, improve their bottom line and navigate changing conditions. Delivering unwavering commitment, deep industry expertise, financial strength and a full range of customized solutions to help you succeed. Rolf Sorenson Client Manager 1.310.990.5108 [email protected] “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, Merrill Lynch, Pierce, Fenner & Smith Incorporated and Merrill Lynch Professional Clearing Corp., both of which are registered brokerdealers and members of FINRA and SIPC, and, in other jurisdictions, by locally registered entities. Investment products offered by Investment Banking Affiliates: Are Not FDIC Insured • May Lose Value • Are Not Bank Guaranteed. ©2012 Bank of America Corporation | ARW0N392 | DFS-103-AD 12 The Official Publication of the Hawaii Automobile Dealers Association The Official Publication of the Hawaii Automobile Dealers Association The Official Publication of the Hawaii Automobile Dealers Association 2012 First Quarter Edition 2011 Fourth Quarter Edition 2011 Fall Edition The Fuel Standards Question Congratulations to Tom Griffin Hawaii Reaching Out 2012 State Dealer of the Year ...offering the islands as a test bed for smart grid development with a component focus on renewable energy in cars. The Official Publication of the Hawaii Automobile Dealers Association 2012 Summer Edition Come to the To China, Japan, and Korea 53rd HADA CONVENTION October 11-14 • Kauai Marriott Resort See story on page 16 HADA logs in on CAFE Mike Niethammer and Joe Hanley in Washington D.C. Sept. 21, 2011 Other stories in this edition: Other stories in this edition: Other stories in this edition: 2011 March 30 – april 1 Yearbook Edition HADA Convention Hawaii State Law for EV Charging Stations Page 28 See contact information for dealers and associate members (inside) © Fayme Harper 2012 This is the Joe Nicolai receives the Small Business Hawaii “Person of the Year” award Page 28 Page 6 State Teacher of the Year receives electric car (use for a year) Page 23 HADA’s message that was proposed for APEC Page 28 Rep Jerry Chang (L) and Joe Hanley at Dealer Day at the State Capitol Page 6 2012 First Hawaiian International Auto Show is provided new logo, compliments of First Title Sponsor Media Sponsor Hawaiian Bank Page 17 Sponsored By vip preview See story and “Holy Grail” chart, and info on “The Jalopy Effect” (inside) VIP Preview Night at the First Hawaiian International Auto Show... p. 6 2012 Metallic balloons in the wires. Page 14 Gov. Linda Lingle Gov. Ben Cayetano Lt. Gov. Brian Schatz Mayor Peter Carlisle Produced By Advertise In The HawaiiDealer Established under HADA president Charlie King in 2002, the HawaiiDealer is a quarterly magazine that provides information on the activities of HADA members to a wide audience, including the membership of the Association, key employees at the dealerships, legislators, city council members, Hawaii media, the Congressional Delegation, and many Hawaii sister organizations. For more information on how to advertise call Twinka Tison at 904-242-8586 Also see the HADAYOUNG website at www.hawaiiautodealer.com BROTHERS: 7.75”W x 3.187”H CMYK Young Brothers Supports Hawai‘i’s Automobile Industry with 12 Weekly Sailings from O‘ahu Our friendly and courteous Young Brothers staff on each island are ready to make your reservation to ship your vehicle on time and safely. KAUA‘I–2 times a week MAUI–3 times a week MOLOKA‘I–2 times a week LĀNA‘I–1 time a week HILO–2 times a week KAWAIHAE–2 times a week For your interisland shipping needs, call 808-543-9311 Neighbor Islands toll-free 800-572-2743 www.youngbrothershawaii.com Questions? Contact Layna Kaaialii, Sales & Marketing Manager (w) 951-1880 (c) 342-2519 (e) [email protected] Some restrictions apply. 13 HawaiiDealer Yearbook 2012 Dealer Contact Information Acura of Honolulu LLC Dan Keppel 777 Ala Moana Blvd. Honolulu, HI 96813 ph: 808-942-4555 fax: 808-944-6776 www.acurahawaii.com Audi of Hawaii John Sumner 1069 S. Beretania St. Honolulu, HI 96814 ph: 808-585-6600 fax: 808-585-6611 www.jnautomotive.com Acura of Maui Mike Keppel 404 Kele St. Kahului, HI 96732 ph: 808-871-1234 fax: 808-270-5898 www.acuraofmaui.com Big Island Honda - Hilo Vince Owings 124 Wiwoole St. Hilo, HI 96720 ph: 808-961-5505 fax: 808-969-6865 www.bigislandhonda.com Aloha Auto Group Ltd. Bill van den Hurk Niki van den Hurk 2481 Nimitz Hwy. Honolulu, HI 96819 ph: 808-833-9000 fax: 808-833-3444 www.aaghi.com Big Island Honda -Kona Marty Barger 75-5608 Kuakini Hwy. Kailua-Kona, HI 96740 ph: 808-329-8101 fax: 808-329-1285 www.bigislandhonda.com Aloha Kia Hilo Gary Kline 226 Kanoelehua Ave. Hilo, HI 96720 ph: 808-935-3500 fax: 808-935-3539 www.aaghi.com Aloha Kia Maui Rich Locher 89 E Wakea St. Kahului, HI 96732 ph: 808-877-4545 fax: 808-877-7771 www.aaghi.com 14 Big Island Toyota Hilo/Kona Jackie De Luz 811 Kanoelehua Ave. Hilo, HI 96720 ph: 808-935-2920 fax: 808-961-2076 www.bigislandtoyota.com Big Island Toyota Inc. David De Luz Sr. 811 Kanoelehua Avenue Hilo, HI 96720 ph: 808-935-2920 fax: 808-961-2076 www.bigislandtoyota.com Aloha Kia Nimitz Alan Uyeoka 2481 Nimitz Hwy. Honolulu, HI 96819 ph: 808-792-8903 fax: 808-836-1293 www.aaghi.com BMW of Hawaii Dennis Short Aka Demesa 74-5533 Loloku St. Kailua-Kona, HI 96740 ph: 808-930-3400 fax: 808-930-3402 www.bmwhawaii.com Aloha Kia Waipahu Howard Finley 94-081 Farrington Hwy. Waipahu, HI 96797 ph: 808-677-4500 fax: 808-678-3144 www.aaghi.com BMW of Honolulu Dennis Short 777 Kapiolani Blvd. Honolulu, HI 96813 ph: 808-597-1225 fax: 808-592-0282 www.bmwhawaii.com BMW of Maui Dennis Short Andrew Trumbo 4410 Koloa St. Kahului, HI 96732 ph: 808-877-4269 fax: 808-877-2629 www.bmwhawaii.com Cutter Buick GMC Mazda Mel Ramos 94-119 Farrington Highway Waipahu, HI 96797 ph: 808-564-9500 fax: 808-564-9532 www.cuttercars.com Cutter Chevrolet Brad Eisen 711 Ala Moana Boulevard Honolulu, HI 96813 ph: 808-564-9050 fax: 808-564-9070 www.cuttercars.com Cutter Chrysler Jeep Dodge of Honolulu Jarrett Cutter 900 Ala Moana Boulevard Honolulu, HI 96814 ph: 808-564-9950 fax: 808-564-9986 www.cuttercars.com Cutter Chrysler Jeep Dodge of Pearl City Ron Wright 905 Kamehameha Highway Pearl City, HI 96782 ph: 808-564-9640 fax: 808-564-9660 www.cuttercars.com Cutter Fiat Honolulu Jarrett Cutter 914 Ala Moana Blvd. Honolulu, HI 96814 ph: 888-671-4326 fax: 888-516-4590 www.cuttercars.com Cutter Ford Mitsubishi Patrick Ah You 98-105 Kamehameha Highway Aiea, HI 96701 ph: 808-564-9210 fax: 808-564-9212 www.cuttercars.com Cutter Management Co. Nick Cutter 1100 Alakea Street, PH-2 Honolulu, HI 96813 ph: 808-529-2000 fax: 808-529-2010 www.cuttercars.com Cutter Management Co. Herman Jones 1100 Alakea Street, PH-2 Honolulu, HI 96813 ph: 808-529-2000 fax: 808-529-2010 www.cuttercars.com Cutter Mazda Jarrett Cutter 800 Ala Moana Boulevard Honolulu, HI 96813 ph: 808-564-9100 fax: 808-564-9140 www.cuttercars.com Hawaii Auto Group Inder Dosanjh 2901 N Nimitz Honolulu, HI 96819 ph: 808-836-7007 fax: 808-792-4589 www.hawaiiautogroup.com Hawaii Automotive LLC Dan Keppel 777 Ala Moana Honolulu, HI 96813 ph: 808-942-4555 fax: 808-944-6776 www.acurahawaii.com Hilo Mazda Subaru Wayne K. De Luz #1 Keaa St. Hilo, HI 96720 ph: 808-961-4411 fax: 808-961-0018 www.bigislandmotors.com Honda Windward Morrie Stoebner Michael Stoebner 45-671 Kamehameha Hwy Kaneohe, HI 96744 ph: 808-247-8544 fax: 808-235-6522 www.hondawindward.com Fast, flexible coverage. That’s Farmers Hawaii. At Farmers Insurance Hawaii, our goal is simple – to provide your customers with the best protection and coverage with the most savings possible. Let us offer great benefits to your customers:* » » » » » » » Group Discounts DriveSafe Discounts Multi-Car Discount Safe Vehicle Discounts Flexible payment plans 100% local service Convenient walk-in locations statewide Call us today! 533-2444 Oahu: Neighbor Islands: 1-877-533-2444 farmershawaii.com Follow us on Jake says,“Go with Farmers.” *Ask for details, some restrictions apply. HawaiiDealer Yearbook 2012 Dealer Contact Information Honolulu Ford Mark Benson 1370 N. King St Honolulu, HI 96817 ph: 808-532-1700 fax: 808-532-1411 www.honoluluford.com JN Automotive Group Joe Nicolai 2999 N. Nimitz Hwy. Honolulu, HI 96819 ph: 808-831-2500 fax: 808-831-2594 www.jnautomotive.com I.Kitagawa & Company Brian Kitagawa 400 E Kawili St. Hilo, HI 96720 ph: 808-935-3741 fax: 808-969-1712 www.kamaainamotors.com Island Honda Anne Oishi 110 S Hana Hwy. Kahului, HI 96732 ph: 808-873-8081 fax: 808-873-6777 www.islandhonda.com Island Subaru Roy Kitagawa 110 S. Hana Hwy. Kahului, HI 96732 ph: 808-877-0031 fax: 808-871-8408 www.islandautocenter.com Jackson Volvo Jack Jackson 704 Ala Moana Blvd. Honolulu, HI 96813 ph: 808-521-5151 fax: 808-538-7252 www.jacksonvolvohawaii.com Jaguar Honolulu Dennis Rademacher 744 Ala Moana Blvd. Honolulu, HI 96813 ph: 808-592-5100 fax: 808-592-5111 www.jaguarhonolulu.com Jim Falk Automotive Group Jim Falk 221 Puunene Ave Kahului, HI 96732 ph: 808-877-3673 fax: 808-873-0471 www.valleyislemotors.com 16 King Auto Group Ron Hansen 4330 Kukui Grove St. Lihue, HI 96766 ph: 808-245-4788 fax: 808-245-2875 Kuhio Motors Inc. Dan Mackey 3033 Aukele St. Lihue, HI 96766 ph: 808-245-6731 fax: 808-632-2401 Jones Hawaii Automotive Group Fletcher Jones III 818 Kapiolani Blvd Honolulu, HI 96813 ph: 702-739-9800 fax: 808-592-5178 King Infiniti of Honolulu Keoni Hansen 2845 Kilihau St. Honolulu, HI 96819 ph: 808-826-0848 fax: 808-833-5324 www.infinityofhonolulu.com La Collezione / JN Exotics Brad Nicolai 720 Kapiolani Blvd. Honolulu, HI 96813 ph: 808-791-9838 fax: 808-589-2246 www.jnautomotive.com Kamaaina Motors Ivan Nakano 400 E. Kawili St. Hilo, HI 96720 ph: 808-935-3741 fax: 808-969-1712 www.kamaainamotors.com King Windward Nissan Mike Niethammer 45-568 Kamehameha Hwy. Kaneohe, HI 96744 ph: 808-235-6433 fax: 808234-5611 www.kingwindwardnissan.com Land Rover Honolulu Dennis Rademacher 416 Cooke Street Honolulu, HI 96813 ph: 808-592-5100 fax: 808-592-7644 www.landroverofhonolulu.com Kauai Hyundai David Perry 3039 Aukele St. Lihue, HI 96766 ph: 808-245-6731 fax: 808-632-2401 www.kuhioautogroup.com Kitagawa Motors, Inc. Roy M. Kitagawa 110 S. Hana Hwy. Kahului, HI 96732 ph: 808-877-0031 fax: 808-871-8408 www.islandautocenter M75 Inc. Damien Farias 320 Hana Hwy Kahului, HI 96732 ph: 808-877-2781 fax: 808-871-2851 www.mauitoyota.com Kauai Toyota Keith Nakamura 4337 Rice St. Lihue, HI 96766 ph: 808-245-6978 fax: 808-564-1037 www.kauaitoyota.com Kona Auto Center George Mahilum 76-6353 Kuakini Hwy. Kailua-Kona, HI 96740 ph: 808-329-4408 fax: 808-329-3247 www.konaauto.com Maui Toyota/Scion Damien Farias Jr. 320 Hana Hwy. Kahului, HI 96732 ph: 808-877-2781 fax: 808-871-2851 www.mauitoyota.com King Auto Center Jose Aguayo 4330 Kukui Grove St. Lihue, HI 96766 ph: 808-245-4788 fax: 808-245-2875 www.kingautocenter.com Kona Mazda Hyundai Subaru Wayne K. DeLuz 75-5793 Kukini Hwy. Kailua-Kona, HI 96740 ph: 808-329-5274 fax: 808-334-0014 www.bigislandmotors.com Mercedes-Benz of Honolulu Dennis Rademacher 818 Kapiolani Blvd. Honolulu, HI 96813 ph: 808-592-5600 fax: 808-592-5619 www.mercedesbenzofhonolulu.com King Auto Group Charlie King 4330 Kukui Grove St. Lihue, HI 96766 ph: 808-245-4788 fax: 808-245-2875 Kuhio Motors Michael Keppel 3033 Aukele St. Lihue, HI 96766 ph: 808-245-6731 fax: 808-632-2401 www.kuhioautogroup.com Mercedes-Benz of Maui Dennis Rademacher 69 Hobron Ave Kahului, HI 96732 ph: 808-872-1500 fax: 808-877-3567 www.mbofmaui.com MidPac Auto Center Ryan Mackey 3050 Hoolako St Lihue, HI 96766 ph: 808--245-3673 fax: 808-245-6410 www.driveonehawaii.com Saab Hawaii Johanna Mason 3030 Waialae Ave Honolulu, HI 96816 ph: 808-735-2488 fax: 808-734-1083 www.saabhawaii.com Servco Subaru Scott Yonesaki 2850 Pukoloa St., Suite 104 Honolulu, HI 96819 ph: 808-687-7600 fax: 808-687-7609 www.servcosubaru.com Tony Nissan Stan Masamitsu 94-1299 Ka Uka Blvd. Waipahu, HI 96797 ph: 808-680-7332 fax: 808-483-5443 www.tonynissan.com Mike McKenna’s Windward Ford Mike McKenna Jim Simington 725 Kailua Rd Kailua, HI 96734 ph: 808-226-7000 fax: 808-262-7286 www.mckennawindward.com Servco Auto Honolulu Dennis Tengan 2850 Pukoloa St., Suite 200 Honolulu, HI 96819 ph: 808-564-1100 fax: 808-564-2849 www.servcoautohonolulu.com Servco Subaru Waialae Scott Yonesaki 3361 Waialae Ave. Honolulu, HI 96816 ph: 808-687-7620 fax: 808-687-7629 www.servcosubaru.com Tony Volkswagen Stan Masamitsu 94-1299 Ka Uka Blvd Waipahu, HI 96797 ph: 808-680-7332 fax: 808-483-5443 www.tonyvolkswagen.com Servco Auto Leeward Keith Nakamura 94-729 Farrington Hwy. Waipahu, HI 96797 ph: 808-564-1000 fax: 808-564-1037 www.servcoautoleeward.com Soderholm Sales & Leasing, Ltd Erik Soderholm P.O. Box 19010 Honolulu, HI 96817 Ph: 808-834-1417 Fax: 808-834-1070 www.soderholmbus.com Valley Isle Motors Jim Falk 221 Puunene Ave Kahului, HI 96732 ph: 808-877-3673 fax: 808-873-0471 www.valleyislemotors.com MINI of Hawaii Dennis Short Darrel Pestana 777 Kapiolani Blvd. Honolulu, HI 96813 ph: 808-593-8699 fax: 808-593-8690 www.MINIhawaii.com New City Nissan John Uekawa 2295 N. King St Honolulu, HI 96819 ph: 808-524-9111 fax: 808-524-3890 www.newcitynissan.com Nissan of Kauai David Perry 3039 Aukele St. Lihue, HI 96766 ph: 808-245-0500 fax: 808-632-2401 www.kuhioautogroup.com Orchid Isle Auto Center Joe Hanley 1030 Kanoelehua Ave. Hilo, HI 96720 ph: 808-935-1191 fax: 808-326-1251 www.fordhawaii.com Pflueger Honda Alan Pflueger 188 S. Beretania Honolulu, HI 96813 ph: 808-528-7200 fax: 808-447-2198 www.pfluegerhonda.com Porsche of Hawaii Dennis Rademacher 730 Ala Moana Blvd. Honolulu, HI 96813 ph: 808-592-5100 fax: 808-593-7919 www.porscheofhawaii.com Servco Auto Windward Dan Hirota 45-655 Kamehameha Hwy. Kaneohe, HI 96744 ph: 808-564-1400 fax: 808-564-1487 www.servcoautowindward.com Stoebner Holdings, Inc. Morrie Stoebner 45-671 Kamehameha Hwy. Kaneohe, HI 96744 ph: 808-247-8544 fax: 808-235-6522 Servco Lexus Honolulu Charles Lee 650 Kapiolani Blvd. Honolulu, HI 96813 ph: 808-504-3658 fax: 808-521-5302 www.servcolexushonolulu.com Tony Group Servco Lexus Maui Charles Lee 445 Kele Street Kahului, HI 96732 ph: 800-504-3490 fax: 808-877-3457 www.servcolexusmaui.com Tony Honda Stan Masamitsu 94-1299 Ka Uka Blvd. Waipahu, HI 96797 ph: 808-680-7332 fax: 808-483-5443 www.tonyhonda.com Servco Pacific Eric Fukunaga 2850A Pukoloa St. Honolulu, HI 96819 ph: 808-564-2333 fax: 808-564-2830 www.servco.com Tony Hyundai Stan Masamitsu 94-1299 Ka Uka Blvd. Waipahu, HI 96797 ph: 808-680-7332 fax: 808-483-5443 www.tonyhyundai.com Servco Scion Scott Yonesaki 2850 Pukoloa St., Suite 101 Honolulu, HI 96819 ph: 808-564-2400 fax: 808-564-2423 www.servcoscion.com Tony Hyundai Pearlridge Stan Masamitsu 95-075 Kamehameha Hwy. Aiea, HI 96701 ph: 808-680-7332 fax: 808-483-5443 www.hyundaipearlridge.com Stan Masamitsu 94-1299 Ka Uka Blvd Waipahu, HI 96797 ph: 808-680-7332 fax: 808-483-5443 www.tonygroup.com Valley Isle Motors Doug Goodrow 221 Puunene Ave Kahului, HI 96732 ph: 808-877-3673 fax: 808-873-0471 www.valleyislemotors.com Windward Dodge Chrysler Jeep Trey Ve Dova 46-177 Kahuhipa St. Kaneohe, HI 96744 ph: 808-233-6000 fax: 808-235-6909 www.windwarddodgechryslerjeep.com Windward Dodge Chrysler Jeep Don Mann 46-177 Kahuhipa St. Kaneohe, HI 96744 ph: 808-233-6000 fax: 808-235-6909 www.windwarddodgechryslerjeep.com Windward Hyundai Trey VeDova 46-201 Kahuhipa St. Kaneohe, HI 96744 ph: 808-791-1800 fax: 808-233-6038 www.windwardhyundai.com 17 HawaiiDealer Year Book 2012 Associate Member Contact Information ADP Dealers Services Ken Santi 24207 8th Place West Edmonds, WA 98026 ph: 425-750-3077 fax: 425-744-0928 www.adp.com AutoService Company, Inc. Brad Thiessen P.O. Box 2400 Mountain Home, AR 72654 ph: 800-442-7116 fax: 870-424-6618 www.ascwarranty.com Aiona Car Sales Patrick Aiona, Jr 134 Wiwoole St. Hilo, Hawaii 96720 ph: 808-935-9958 fax: 808-935-7915 www.aionacars.com AutoTrader.com Wendy Bromberg 10 Pointe Drive, Suite 200 Brea, CA 92821 ph: 818-271-7709 Cell fax: 818-703-6396 www.AutoTrader.com [email protected] Alliance of Automobile Manufacturers Gary Slovin Alii Place, Suite 1400 1099 Alakea Street Honolulu, HI 96813 ph: 808-539-0834 fax: 808-533-4945 www.autoalliance.org Ally Garry Spinella 5208 Tennyson Parkway, Suite 120 Plano, TX 75024 ph: 925-785-8089 fax: 313-656-6514 www.ally.com Bank of Hawaii James Moniz P.O. Box 4436 Honolulu, HI 96812 ph: 808-694-1697 fax: 808-694-1288 www.boh.com AutoGroup Services Inc. Tim Weymouth 108 West 8th Street, Suite 500 Fort Worth, TX, 76102 ph: 817-335-5700 fax: 817-335-4700 www.autogroupservices.com Better Place Brian Goldstein 3444 Paty Dr. Honolulu, HI 96822 ph: 808-291-3450 fax: 808-792-0991 www.betterplace.com Aloha Pacific FCU Jason Fujioka 832 S. Hotel St. Honolulu, HI 96813 ph: 808-539-0151 fax: 877-427-7705 www.kalanet.com Car Sales U Bill Wiltshire 47-759 Hui Kelu St.#2 Kaneohe, HI 96744 ph: 808-224-7932 www.carsalesu.com Aloha Petroleum Reggie Kamei, Jr. 1132 Bishop St. Suite 1700 Honolulu, HI 96813 ph: 808-522-9700 fax: 808-522-9707 www.alohagas.com Alsco American Linen Division Brian Arkle 2771 Wai Wai Loop Honolulu, Hawaii. 96819 ph: 808-834-7500 fax: 808-834-7566 www.alsco.com Automotive Compliance Consultants, Inc. Terry Dortch 60-B West Terra Cotta Dr., #159 Crystal Lake, IL 60014 ph: 866-301-0593 fax: 815-206-0590 www.compliantnow.com American Fidelity Assurance Co. Steve Bolinger 2000 N. Classen 6 East Oklahoma City, Oklahoma 76103 ph: 877-967-5748 fax: 877-967-8699 www.afadvantage.com 18 Bank of America Rolf Sorenson 1357A E. Grand Ave. El Segundo, CA 90245 ph: 800-991-1770 opt. 1 ph: 310-990-5108 Cell fax: 415-503-5052 www.bankofamerica.com Cars.com Ryan Hamilton 1765 Ala Moana Blvd., #284 Honolulu, HI 96815 ph: 808-729-0853 fax: 312-601-5427 www.cars.com Cavanah Associates Inc. Jim Cavanah 1100 Alakea Street Suite 2600 Honolulu, HI 96813 ph: 808-537-1970 fax: 808-537-4554 www.cavanah.com Celly Services, Inc. Sam Celly, MS JD 444 West Ocean Blvd., Suite 1402. Long Beach, CA 90802-4517 ph: 562-704-4000 fax: 562-704-5000 www.cellyservices.com Central Pacific Bank Michael Waring 220 South King St. #200 Honolulu, HI 96813 ph: 808-544-0500 fax: 808-973-7565 www.centralpacificbank.com Central States Health & Life Co. of Omaha (CSO) John Benson 1212 North 96th St. Omaha, NE 68114 ph: 800-826-6587 fax: 402-399-3448 www.cso.com DealerMiles LLC Jim Burness 1385 South Colorado Blvd. Suite A-302 Denver, Colorado 80222 ph: 303-758-7180 fax: 808-758-7204 www.dealermiles.com Clear Channel Radio Scott Hogle 650 Iwilei Rd., Suite 400 Honolulu, HI 96817 ph: 808-550-9253 fax: 808-550-9507 www.ksskradio.com Dealership CSI Jim Walter P.O. Box 80369 Rancho Santa Margarita, CA 92679 ph: 800-283-7534 ph: 949-842-6643 Cell fax: 949-709-2965 www.dealershipcsi.com Colors on Parade Cary Derosa 111-A Hekili St. Suite 317 Kailua, HI 96734 ph: 808-262-1389 fax: 888-844-0724 www.colorshawaii.com Comerica Bank Jeff Richardson 611 Anton Blvd. 4th Fl. Costa Mesa, CA 92626-4465 ph: 714-433-3209 fax: 714-433-3221 www.comerica.com Compli Jonica Smith 610 SW Broadway, #600 Portland, OR 97205 ph: 503-963-4216 fax: 503-294-1200 www.compli.com Credit Union Direct Lending (CUDL) Andrea Hussey-Leong 1654 South King Street Honolulu, HI 96826 ph: 808-782-4960 fax: 916-384-1166 ph: 877-744-2835 Customer Care www.CUDL.com DealerTrack Kenny Mills 3905 Kingridge Dr. San Mateo, CA 94403 ph: 650-922-0614 fax: 650-284-2941 www.dealertrack.com Dent Zone Stan Starnes 5100 N. O'Connor Blvd Suite 100 Irvine, TX 75039 ph: 877-806-2405 fax: 214-393-2205 www.dentzone.com Dealers' Financial Services the miles program Rick Perez Area Manager 808-265-9713 P.O. Box 25723 Honolulu, HI 96825 Enterprise Rent A Car Chris Sbarbaro 544 Ohohia St. Suite 7 Honolulu, Hawaii 96819 ph: 808-836-0130 fax: 808-836-3093 www.enterprise.com Cross Check Inc. Charles Dortch III 1440 North McDowell Blvd. Petaluma CA 94954-6515 ph: 707-665-2100 fax: 800-863-4164 www.cross-check.com Farmers Insurance Hawaii Randall Chung 500 Ala Moana Blvd. 6 Waterfront Plaza 3rd Floor Honolulu, Hawaii 96813 ph: 808-544-3907 fax: 808-523-9027 www.farmershawaii.com Cycle City Dan Ryan 600 Puuloa Road Honolulu, HI 96819 ph: 808-831-2600 fax: 808-831-2708 www.cyclecitylimited.com First Hawaiian Bank Brent Helgeson P.O. Box 3200 Honolulu, Hawaii 96847 ph: 808-525-6112 fax: 808-525-8831 www.fhb.com Dealer Assurance Group, LLC Linda Fisher 21366 Estepa Circle Huntington Beach, CA 92648 ph: 714-612-6176 fax: 808-440-5599 [email protected] Ford Motor Company Randy Bergsrud 3 Glen Bellway, Suite 200 Irvine, CA 92618 ph: 808-298-4996 fax: 888-801-3364 www.ford.com Dealer Consulting Services, Inc. Frank Phillips P.O. Box 1849 Santa Maria, CA 93455 ph: 805-347-4400 fax: 805-922-1173 G&A Marketing Inc. David Fino 1001 Ford Circle Milford, OH 45150 ph: 513-965-6300 fax: 513-688-1570 www.gamarketing.com [email protected] Hawaii News Now Rick Blangiardi 420 Waiakamilo Rd. Honolulu, HI 96817 ph: 808-973-5462 fax: 808-941-8153 www.hawaiinewsnow.com JM&A Group Ed Braddock 1215 K Street 17th Floor Sacramento, CA 95814 ph: 312-259-2246 Cell fax: 954-363-4024 www.jmagroup.com Hawaii Specialty Vehicles LLC Rodger Soderholm 1026 Puuwai Street Honolulu, HI 96819 ph: 808-842-1125 fax: 808-842-1124 KARBIZ Associates Mark Swannie 98-021 Kamehameha Hwy. Ste 101 Aiea, HI 96701 ph: 808-488-0608 fax: 808-487-6623 www.karbiz.com [email protected] Hawaii USA Federal Credit Union Scott Kaulukukui 1226 College Walk Honolulu, HI 96817 ph: 808-534-4300 fax: 808-534-4352 www.hawaiiusafcu.com Hawaiian Tel FCU Dane Shimabuku 1138 North King Street Honolulu, HI 96817 ph: 808-832-8744 fax: 808-832-8721 www.htefcu.org The Hawaii Association of Broadcasters Jamie Hartnett P.O. Box 61562 Honolulu, HI 96839 ph: 808-599-1455 fax: 808-599-7784 www.hawaiibroadcasters.com Hickam Federal Credit Union Steven Ohata 40 Hickam Court Building 1256 Honolulu, HI 96818 ph: 808-432-9819 fax: 808-440-8116 www.hickamfcu.org Honolulu Star-Advertiser Dennis Francis 7 Waterfront Plaza Ste 7-500 500 Ala Moana Blvd. Honolulu, HI 96813 ph: 808-529-4700 fax: 808-545-4918 www.staradvertiser.com KFVE the Home Team John Fink 150-B Puuhale Rd. Honolulu, Hawaii 96819 ph: 808-847-3246 fax: 808-845-3616 www.k5thehometeam.com KHON - TV Joe MacNamara 88 Piikoi Street Honolulu, Hawaii 96814 ph: 808-591-2222 fax: 808-593-8479 www.khon2.com Kobayashi & Company Ted Kobayashi 3871 E. Colorado Blvd. Ste. 200 Pasadena,California 91107 ph: 626-683-5757 fax: 626-683-5767 Ku'oko'a Inc. Roald Marth 1288 Ala Moana Blvd #31E Honolulu, HI 96814 ph: 808-284-8251 www.kuokoa.com Manheim Hawaii Greg Lelesch 1001 Ahua Street Honolulu, Hawaii 96819 ph: 808-840-8900 fax: 808-847-7546 www.manaheimauctions.com Horizon Lines, LLC Mike Ohashi 1601 Sand Island Parkway Honolulu, HI 96819 ph: 808-842-1515 fax: 808-842-5395 www.horizonlines.com Marsh USA Inc Rocco Sansone 745 Fort Street Suite 1100 Honolulu, Hawaii 96813 ph: 808-585-3500 fax: 808-585-3510 www.marsh.com Hyundai Motor America Joseph Zeuli 3200 Park Center Drive Costa Mesa, CA 92626 ph: 714-965-3105 fax: 714-965-3834 www.hyundaiusa.com Matson Navigation Company Gary Nakamatsu 1411 Sand Island Pkwy Honolulu, Hawaii 96819 ph: 808-848-1211 fax: 808-845-3892 www.matson.com Insurance Investments Peter Luke 223 Poipu Dr. Honolulu, HI 96825 ph: 808-372-9189 fax: 808-396-2204 Mazda North American Operations 1421 Reynolds Ave. Irvine CA 92614 ph: 949-852-8898 fax: 281-582-4364 www.mazdausa.com Interstate National Dealer Services, Inc. Breanne Morley, Senior VP 6120 Powers Ferry Rd. NW Suite 200 Atlanta, GA 30339 ph: 678-894-3500 fax: 770-952-9275 www.inds.com MPi Maureen Sullivan Martin 3058 E. Sunset Rd. Suite 113 Las Vegas, NV 89120 ph: 817-320-6454 fax: 866-728-6067 www.mpiworldclass.com Nissan North America (Northwest Region) P.O. Box 15953 Honolulu, HI 96830-5953 ph: 952-216-2112 www.nissanusa.com Northwest/Southwest Auto Wholesale Dave Stoner 9840 A SE 17th Avenue Milwaukie, Oregon 97222 ph: 503-239-2277 fax: 503-653-1214 Oceanic Time Warner Cable Kendall Char Topa Financial Center 745 Fort Street Ste 1200 Honolulu, Hawaii 96813 ph: 808-625-8356 fax: 808-524-1487 Pacific Business News Bob Charlet 737 Bishops Street Suite 1590 Honolulu, Hawaii 96813 ph: 808-955-8100 fax: 808-955-8051 www.pacific.bizjournals.com Pasha Hawaii Transportation Lines LLC Reggie Maldonado General Manager 677 Ala Moana Blvd. Suite 700 Honolulu, Hawaii 96813 ph: 808-523-8625 fax: 808-523-8630 www.pashanet.com Phoenix Cars LLC Bryon Bliss 401 S. Doubleday Ave. Ontario, CA 91761 ph: 909-899-5125 fax: 909-887-2020 www.phoenixmotorcars.com Premier Dealers Services Kendall Olson 9449 Balboa Ave. #300 San Diego, CA 92123-4395 ph: 858-810-1700 fax: 866-766-8549 Protective – Asset Protection Division Dylan M. Doran 5230 Las Virgenes Road Suite 100 Calabasas, CA 91302 ph: 800-242-9442 x 632 ph: 818-836-1455 Cell fax: 847-572-3083 www.protectiveassetprotection.com Prevent-A-Theft Leslie Strohm P.O. Box 91690 Henderson, NV 89009 ph: 800-854-6223 fax: 702-952-4120 www.preventatheft.com Prudential Financial Lisa LeClair 1100 Alakea St. 28th Floor Honolulu, HI 96813 ph: 808-566-6777 ext.5063 ph: 800-778-2255 Customer Service fax: 808-521-5032 www.prudential.com Reynolds & Reynolds Cliff Hall 1865 Herndon Avenue #K-116 Clovis,CA 93611 ph: 559-325-8735 fax: 559-272-6005 www.reyrey.com Santander Consumer USA, Inc. JoAnn Zbin 8585 N. Stemmons Freeway Suite 400-North Dallas, TX 75247 ph: 808-352-4024 fax: 866-724-5875 www.santanderconsumerusa.com Siegel Distributing Burt Furukawa 7-500 Ala Moana Blvd. Honolulu, HI 96813 ph: 808-599-1888 fax: 808-833-3220 Standard Register Cesar A. Carmona 900 Kimberly Drive Carol Stream, IL 60188 ph: 916-340-0214 fax: 916-735-2423 www.smartworks.com Sunetric David Felice 905 Kalanianaole Hwy Suite A Bld 30 Kailua, HI 96734 ph: 808-262-6600 fax: 808-262-6602 www.sunetric.com TAGS, Inc. Donna Smallwood 98-029 Hekaha St. Bldg.5 Unit 20 Aiea, HI 96701 ph: 808-485-8247 fax: 808-485-0302 www.tagshi.com Ultimate Warranty Corp. Randy Collier 1050 Bishop St. Suite 269 Honolulu, Hawaii 96813 ph: 808-285-0900 fax: 808-732-0641 www.uwc21.com Unitek Solvent Services Blane Yamagata P.O. Box 700370 Kapolei, Hawaii 96709-0370 ph: 808-222-7272 fax: 808-673-3234 www.uniteksolvent.com Western Insurance Hawaii Rosalie Middleton 796 Kalanipuu St. Honolulu, Hawaii 96825 ph: 808-396-4898 fax: 808-396-5094 Young Brothers Ltd. Keith Kiyotoki P.O. Box 3288 Honolulu, Hawaii 96801 ph: 808-543-9311 fax: 808-543-9458 www.youngbrothershawaii.com 19 Hawai‘i, The CleanTech Paradise Hawai‘i, blessed with abundant natural energy sources, is the center of rapid cleantech development and is positioned as a global leader in cleantech and renewable energy. All the rich indigenous resources will allow our state to quickly break free from its dependence on imported oil and create an expansive economy that will advance 21st century power generation, distribution, energy consumption and conservation. Freedom From Fossil Fuel AN AGGRESSIVE TRANSFORMATION The Kū‘oko‘a Plan frees Hawai‘i from its dependence on fossil fuels, creates a sustainable green economy and establishes a globally recognized cleantech industry. The world’s economy is becoming increasingly vulnerable to the price of oil. It was severely impacted in 2008 when the price of oil rose to nearly $150 a barrel. Hawai‘i was similarly affected as it imports nearly 53 million barrels of oil annually. With peak oil on the horizon, Hawai‘i has begun its energy transformation. In line with the Hawai‘i Clean Energy Initiative (HCEI), the Kū‘oko‘a Plan will take an even more aggressive approach to utilizing its robust renewable resources to ensure 100% energy security within 10 years. FREEDOM FROM FOSSIL FUEL The Kū‘oko‘a Plan frees Hawai‘i’s economy from fossil fuel within a decade, relying on indigenous, renewable energy sources like geothermal, wind, solar, biofuels, and ocean thermal conversion, while enabling air and ground transportation to move more quickly away from fossil fuel. The plan also embraces an innovative power distribution network, establishing a reliable statewide power grid system. In conjunction with a portfolio of renewable technologies, there is more than enough geothermal energy available on the islands of Hawai‘i and Maui to provide firm power for the entire state. CREATING ECONOMIC STABILITY The Kū‘oko‘a Plan will decrease and stabilize the cost of electricity statewide by using geothermal energy as its core base load. Besides retaining the billions of dollars that is spent on importing fossil fuels, the Kū‘oko‘a Plan will also grow the economy by generating and exporting energy worldwide. In doing so, the Kū‘oko‘a Plan creates new jobs, generates new revenue and adds significantly to the state’s tax base while enabling the development of many renewable energy projects. CREATING CLEANTECH INDUSTRY The Kū‘oko‘a Plan will create a cleantech sector which will provide sustainable 21st century jobs. Additionally, the Kū‘oko‘a Plan supports STEAM (Science, Technology, Engineering, Arts and Math) education and research in high schools and higher education institutions, which will in turn create a workforce of the future and stimulate the creation of new businesses in the renewable and clean energy sectors. Inspired and informed by the cultural and community values of Hawai‘i and its people, the Kū‘oko‘a Plan will free the Hawaiian economy from its dependence on fossil fuel and position the state as a global leader in cleantech and renewable energy. Learn more about the CleanTech Paradise at kuokoa.com. 1001 Ahua St. Honolulu, HI 96819 • (808) 840-8900 Now and for the foreseeable future, the key to your success is used vehicle inventory management. Every Wednesday, 300 vehicles run through the lanes, 140 in lane buyers inspect, bid and buy, while another 100+ view and bid on Simulcast. Your task, turn aged inventory and sleds into cash Your reward, fresh inventory to profit from…. Manheim Hawaii Is Hawaii’s Used Vehicle Market Place 22 DrivingHawaii’s Hawaii’sEconomy Economy Driving Annual Contributions of Hawaii’s New-Vehicle Dealers* Hawaii’s dealers maintain a multi-BILLION dollar retail industry. Average sales per dealership ............................................................. $25.2 million Total sales of all new-vehicle dealerships in Hawaii ........................... $1.7 billion Dealership sales as % of total retail sales in the state ........................ 12.3% Estimated number of new-vehicle dealerships ................................... 66 Dealers provide thousands of well-paying jobs in Hawaii. Total number of new-vehicle dealership employees in Hawaii .........................3,113 Average number of employees per dealership ................................................. 47 Average annual earnings of new-vehicle dealership employees ......................$54,012 Dealership payroll as % of total state retail payroll ...........................................12.2% Annual payroll of new-vehicle dealerships ........................................................$167 million Average annual payroll per new-vehicle dealership .........................................$2.54 million Dealers generate hundreds of millions of dollars of tax revenue for state and local government through: Sales Tax Revenue Corporate Tax Revenue Payroll Tax Revenue *Numbers reflect annual economic activity during 2011 Source: NADA NADA 412 First Street S.E., Washington, D.C. (800) 563-1556 Fax (202) 479-0168 [email protected] www.nada.org Hawaii 23 With CUDL, it’s a simple equation: SALES OPPORTUNITIES + BETTER FINANCING CUDL has the credit union network and technology necessary to drive qualified buyers to your dealership to help increase sales. CUDL is the nation’s leader in point-of-purchase and indirect lending for the credit union industry. Participating CUDL dealerships enjoy the benefits of: • Quick and consistent loan decisions even when the credit unions are closed. • Protection and increase of backend products sold to credit union members. • Expedited ACH funding, with customizable reporting to help track payments. • Flat fee income on low interest rate loans with no chargeback. • An easy to use, fully functional website to submit credit applications. • Increase dealership visibility by advertising inventory to millions of credit union members with the CUDL AutoSMART program. = MORE SALES! ALOHA PACIFIC FEDERAL CREDIT UNION HAWAI’I CENTRAL FEDERAL CREDIT UNION HAWAI’I COMMUNITY FEDERAL CREDIT UNION (AUTOSMART) HAWAI’I STATE FEDERAL CREDIT UNION HAWAIIAN TEL FEDERAL CREDIT UNION HAWAIIUSA FEDERAL CREDIT UNION HICKAM FEDERAL CREDIT UNION HONOLULU FEDERAL CREDIT UNION HONOLULU FIRE DEPARTMENT FEDERAL CREDIT UNION KAMEHAMEHA FEDERAL CREDIT UNION KAUA’I COMMUNITY FEDERAL CREDIT UNION KAUA’I GOVERNMENT EMPLOYEES FEDERAL CREDIT UNION MAUI COUNTY FEDERAL CREDIT UNION OPERATING ENGINEERS #3 FEDERAL CREDIT UNION OTS EMPLOYEES FEDERAL CREDIT UNION (AUTOSMART) PEARL HARBOR FEDERAL CREDIT UNION THE QUEEN’S FEDERAL CREDIT UNION UNIVERSITY OF HAWAI’I FEDERAL CREDIT UNION VALLEY ISLE COMMUNITY FEDERAL CREDIT UNION WEST OAHU COMMUNITY FEDERAL CREDIT UNION WEST MAUI COMMUNITY FEDERAL CREDIT UNION Give your credit union customers the auto financing they need to HELE on down the road with ALOHA! For more information about the CUDL program, call Andrea Hussey-Leong at 808.782.4960 or visit our website at www.cudl.com. KOBAYASHI & COMPANY With more than 30 years of accounting experience in the automotive field, Kobayashi & Co. offers specialized services to dealers and individuals including: Accounting and Auditing Services KOBAYASHI & COMPANY Certified Public Accountants With more than 30 years of Management Consultants accounting experience in the automotive field, Kobayashi & Co. offers specialized services to dealers and individuals including: Accounting and Auditing Services • Audits, Reviews and Compilations • Buy/Sell Agreements • Budgets, Forecasts and Projections • Monthly Financial Statement Preparation • Payroll Services • Cash Management Consulting • Accounting System Design • LIFO Consultation Tax Services • Audits, Reviews and Compilations • Buy/Sell Agreements • Budgets, Forecasts and Projections • Cash Management Consulting • Accounting System Design • LIFO Consultation Tax Services • Business and Individual Tax Planning • Corporate, Partnership & Individual Tax Return Preparation • Business Valuations • Financial, Retirement and Estate Planning • Client Representation Before the IRS and Franchise Tax Board • Estate, Fiduciary and Gift Tax Return Preparation Business Consulting Services • Business Continuation & Succession Planning • Executive Compensation & Incentive Planning • Management Audits Other Services • Bankruptcy & Receivership Accounting & Tax Services • Structuring Purchase or Sale of a Business • Assistance in Obtaining & Evaluating Personnel • Fraud Investigation • Litigation Support • Computer Systems Consulting 3871 East Colorado Boulevard • 2nd Floor • Pasadena, CA 91107 (626) 683-5757 • Fax (626) 683-5767 • (800) 683-4342 • E-mail: [email protected] • Business and Individual Tax Planning • Corporate, Partnership & Individual Tax Return Preparation • Business Valuations • Financial, Retirement and Estate Planning • Client Representation Before the IRS and 25 Electric Cars We don’t just talk the talk... Carlos Perez Manager, Energy Solutions Department Hawaiian Electric Company ...we drive the drive. Join us. A t Hawaiian Electric, we are passionate about promoting electric vehicles as we move to Hawaii’s clean energy future. • Our discount charging rates reward our customers who charge their EVs off-peak. Learn more at goev.heco.com; or e-mail to [email protected]; or call 808-543-GoEV (4638) on Oahu, 808-871-2390 on Maui and 808-969-0358 on Hawaii Island. Our EV business alliances include AeroVironment; Aloha Petroleum; Better Place; Mitsubishi Motors; Nissan; Volta and more. Our EV advocacy and research alliances include: Clean Energy Initiative transportation group, Edison Electric Institute; Electric Power Research Institute; Electric Vehicle Association; Energy Office, Department of Business, Economic Development and Tourism; Hawaii Energy Policy Forum transportation working group; Plug-in America; Sierra Club and (LAST BUT NOT LEAST) Hawaii Automobile Dealers Association. Our fleet of pure electric, plug-in hybrid electric, and hybrid sedans and hybrid bucket trucks is growing. • • • Covering Data thru June 2012 Volume 11, Number 3 Covering Data thru June 2012 Volume 11, Number 3 Hawaii Auto Outlook ™ Hawaii Auto Outlook TM Sponsored by: Hawaii Automobile Dealers Association Sponsored FORECAST by: Hawaii Automobile Dealers Association Market Posts Impressive 19.4% Increase in First Half of 2012 FORECAST 16.2% increase predicted for entire year Market Posts Impressive 19.4% Increase in First Half of 2012 The Hawaii new vehicle market would appear to be well on 16.2% predicted for entire yearplace its way toincrease emerging from the sales meltdown that took between 2008 2010. market After increasing 9% from to 2011, The Hawaii newand vehicle would appear to 2010 be well on its way to the marketfrom improved 21.5% and 17.6% theplace First and Second emerging the sales meltdown that in took between 2008 and 1. Quarters of increasing this year versus year-earlier. all ofthe2012, Autoimproved 2010. After 9% from 2010 toFor 2011, market 21.5% 17.6% in the Second Quarters of this year versus Outlookand is predicting thatFirst newand retail light vehicle registrations year-earlier. all offrom 2012, Auto Outlook is predicting that new retail will increaseFor 16.2% 2011. light vehicle registrations will increase 16.2% from 2011. What lies ahead for 2013? Another increase is likely, but at this 2. point,lies it looks rate Another of increase is likely to ease. What aheadlike forthe 2013? increase is likely, but Auto at this point, is currently a 9% improvement 2013, itOutlook looks like the rateprojecting of increase is likely to ease.for Auto Outlook is slightly below the 16.2% expectedforfor2013, this year. currently projecting a 9%increase improvement slightly below the 16.2% increase expected for this year. Why do we think the pace of the recovery will ease somewhat 3. next do year? three reasons. Why we Here thinkare thethe pace of primary the recovery willFirst, easeeconomic somewhat next growthHere is expected remain sluggish, as likely fiscaleconomic tighteninggrowth is year? are thetothree primary reasons. First, by the Federal government willaslimit growth, the European expected to remain sluggish, likely fiscal and tightening by the Federal financial crisis likelygrowth, to put and a damper on the global economy. government willislimit the European financial crisis is likely Second, unemployment rate is expectedSecond, to remain to put a the damper on the global economy. therelatively unemployment 4. rate expected remain relatively high,And withthird, slim gains in employhigh,is with slim to gains in employment. although ment. And third, households havedebt, made headway households have although made headway in reducing there is still ain reducing debt, there is still a lot of work to do in curing ailing lot of work to do in curing ailing balance sheets, which are still balance sheets, which are still on the mend following the financial crisis. on the mend following the financial crisis. At this this point, that these events will will derail At point, ititseems seemshighly highlyunlikely unlikely that these events derail the 5. the new vehicle market recovery. Indeed, basic outlook new vehicle market recovery. Indeed, ourour basic outlook hashasremained intact since the recession hit in 2008 and2008 2009: market remained intact since the recession hit in andthe 2009: the will remain its remain long term path, but the recovery marketonwill on itsimprovement long term improvement path, but thewill take longer andwill proceed muchand more slowly much than the 2009 collapse, recovery take longer proceed more slowly than which hit hard and fast. the 2009 collapse, which hit hard and fast. 5 Key Market Trends Hawaii new retail light vehicle Market registrations increased 19.4% in the first 5 Key Trends half of 2012 versus a year earlier, higher than the 9.9% improvement in the Nation. 1. Hawaii new retail light vehicle registrations increased 19.4% in the first half of 2012 versus a year earlier, higher than the 9.9% improvement in the Nation. Auto Outlook projects that the state new vehicle market will improve 16.2% for all of this year, with an increase likely in 2013 as well. The 2. Auto Outlook projects that the state new vehicle market will uptick next year would mark the fourth consecutive annual increase. improve 16.2% for all of this year, with an increase likely in 2013 as well. The uptick next year would mark the fourth consecutive annualthis increase. Higher fuel prices earlier year and many key new vehicle introductions have given a boost to car sales in the state. New retail 3. Higher were fuel prices earlier thisfirst yearhalf andofmany key new vehicle car registrations up 22.3% in the 2012 and car market introductions have given a boost to car sales in the state. share increased. New retail car registrations were up 22.3% in the first half of 2012 and car market share increased. Among the top 20 selling brands, Jeep, Volkswagen, Acura, Dodge (including Ram), and Chevrolet havebrands, had theJeep, largest increases so far 4. Among the top 20 selling Volkswagen, Acura, this year. Dodge State registrations for each the five brands werethe up largest more (including Ram), andof Chevrolet have had than 30%.increases so far this year. State registrations for each of the five brands were up more than 30%. Toyota, Nissan, and Honda are relatively strong sellers in the state 5. Toyota, Nissan, and Honda are relatively strong sellers in market. Vehicle registrations for the three brands easily exceed the state market. Vehicle registrations for the three brands expected levels, which are calculated from National market share (see easily exceed expected levels, which are calculated from page 2 for full analysis). National market share (see page 2 for full analysis). New light vehicle registrations Annual Trend in Hawaii New Vehicle Market Market Summary 80,000 70,000 60,000 67,224 50,000 40,000 Market is predicted to improve 16.2% in 2012. TOTAL 57,526 30,000 42,804 20,000 37,086 33,639 34,019 43,110 47,000 10,000 0 2006 2007 2008 2009 2010 2011 2012 2013 Forecast Forecast The graph shows new retail light vehicle registrations in the state from 2006 thru 2011, and Auto Outlook’s projections for 2012 and 2013. Car Light Truck Detroit Three European Japanese Korean YTD '11 thru June YTD '12 thru June % Chg. '11 to '12 Mkt. Share YTD '12 18,510 22,110 19.4% 9,301 9,209 11,378 10,732 22.3% 16.5% 51.5% 48.5% 3,399 2,072 11,576 1,463 4,365 2,500 13,544 1,701 28.4% 20.7% 17.0% 16.3% 19.7% 11.3% 61.3% 7.7% Detroit Three consists of vehicles sold by GM, Ford and Chrysler. Historical data Source: AutoCount data from Experian Automotive. 27 Page 2 Page 22 Page Page 2 Hawaii Auto Outlook Hawaii HawaiiAuto AutoOutlook Outlook Hawaii Auto Outlook BRAND BrandSCOREBOARD Scoreboard BRAND SCOREBOARD BRAND SCOREBOARD Jeep Registrations Increase 71.9% 71.9% Jeep Registrations Increase Jeep Registrations Increase 71.9% Jeep Registrations Increase 71.9% Volkswagen, Acura, Dodge, and Chevrolet also rank high Volkswagen, Volkswagen,Acura, Acura,Dodge, Dodge,and andChevrolet Chevroletalso alsorank rankhigh high Volkswagen, Acura, Dodge, and Chevrolet also rank high The The graph graph on on the the right right The graph on the right shows the percent shows the percent shows the percent change changeinin innew newretail retaillight light change new retail light vehicle registrations durvehicle registrations durvehicle registrations during the first six months ofof ing the first six months ing the first six months of this year versus the same this year versus the same this year versus the same period period aaa year year earlier earlier for for period year earlier for the top 15 selling brands the top 15 selling brands the top 15 selling brands ininthe thestate. state. in the state. Nine Ninebrands brandshad hadincreasincreasNine brands had increases ofof greater than 20%: es greater than 20%: es of greater than 20%: Jeep, Volkswagen, Acura, Jeep, Volkswagen, Acura, Jeep, Volkswagen, Acura, Dodge Dodge (including (including Ram), Ram), Dodge (including Ram), Chevrolet, Toyota/Scion, Chevrolet, Toyota/Scion, Chevrolet, Toyota/Scion, Mercedes, Mercedes, Mazda, Mazda, and and Mercedes, Mazda, and Lexus. Lexus. Lexus. %%Change Changein inNew NewRetail RetailRegistrations Registrations(Top (Top15 15Brands) Brands)---YTD YTD‘12 ‘12thru thruJune Junevs. vs.YTD YTD’11 ’11 % Change in New Retail Registrations (Top 15 Brands) YTD ‘12 thru June vs. YTD ’11 71.9% 71.9% 71.9% Jeep Jeep Jeep 49.6% 49.6% 49.6% Volkswagen Volkswagen Volkswagen 39.8% 39.8% 39.8% Acura Acura Acura 37.6% 37.6% 37.6% Dodge Dodge Dodge 31.7% 31.7% 31.7% Chevrolet Chevrolet Chevrolet Toyota/Scion Toyota/Scion Toyota/Scion 26.7% 26.7% 26.7% Mercedes Mercedes Mercedes 26.5% 26.5% 26.5% 24.7% 24.7% 24.7% Mazda Mazda Mazda Lexus Lexus Lexus 20.1% 20.1% 20.1% Hyundai Hyundai Hyundai 19.9% 19.9% 19.9% 12.7% 12.7% 12.7% Ford Ford Ford 12.0% 12.0% 12.0% Kia Kia Kia 10.8% 10.8% 10.8% Nissan Nissan Nissan 3.8% 3.8% 3.8% Honda Honda Honda -7.8% BMW -7.8% BMW -7.8% BMW -20.0% -20.0% -10.0% -10.0% -20.0% -10.0% 0.0% 0.0% 0.0% 10.0% 10.0% 10.0% 20.0% 20.0% 20.0% 30.0% 30.0% 30.0% 40.0% 40.0% 40.0% 50.0% 50.0% 50.0% 60.0% 60.0% 60.0% 70.0% 70.0% 70.0% 80.0% 80.0% 80.0% BRAND BRANDMARKET MARKETSHARE SHARE BRAND MARKET SHARE BRAND MARKET SHARE Detroit Three Brands Detroit Three Brands Are Up Detroit Three Brands Are Up Detroit Three Brands AreAre Up Up Change Changein inMarket MarketShare-YTD Share-YTD2012 2012thru thruJune Junevs. vs.YTD YTD2011 2011 Change in Market Share-YTD 2012 thru June vs. YTD 2011 Detroit DetroitThree Three Detroit Three European European European 1.3 1.3 1.3 Detroit DetroitThree Three Detroit Three brand share brand share brand share has hasincreased increased has increased 1.3 1.3points pointsso so 1.3 points so far this year. far this year. far this year. 0.1 0.1 0.1 -0.2 -0.2 -0.2 Korean Korean Korean ANSWERS ANSWERS DRIVE DRIVE RESULTS. RESULTS. ANSWERS DRIVE RESULTS. You Youneed needinsights insightsinto intoyour yourmarketplace marketplacetotomake makethe thebest best You need insights into your marketplace to make the best decisions decisionstotomaximize maximizeprofits. profits.The TheAutoCount® AutoCount®Dealer Dealer decisions to maximize profits. The AutoCount® Dealer Report Reportanalyzes analyzesfull fulldetails detailson onnew newand andused usedcompetitive competitive Report analyzes full details on new and used competitive dealer dealermarket marketshare, share,down downtotospecific specificareas areasyou youdefine. define. dealer market share, down to specific areas you define. You Youbring bringthe thequestions. questions.We’ll We’llbring bringthe theanswers. answers. You bring the questions. We’ll bring the answers. Japanese -1.2 Japanese -1.2 -1.2 Japanese -1.5 -1.5 -1.5 -1.0 -1.0 -1.0 -0.5 0.0 0.5 -0.5 0.0 0.5 -0.5 0.0 0.5 Change in market share Change in in market market share share Change 1.0 1.0 1.0 1.5 1.5 1.5 The Thegraph graphabove aboveshows showsthe thechange changeinin inyear-to-date year-to-datemarket marketshare sharefor forfour fourprimary primarybrand brand The graph above shows the change year-to-date market share for four primary brand segments. segments. segments. 28 Experian ExperianAutomotive Automotiveisis isthe thedata dataprovider providerfor forAuto AutoOutlook. Outlook. Experian Automotive the data provider for Auto Outlook. Explanation of Data Explanation of Data Explanation of Data Data Datapresented presentedinin inAuto AutoOutlook Outlookmeasures measuresnew newvehicle vehicleregistrations registrationsinin inthe the Data presented Auto Outlook measures new vehicle registrations the Hawaii. Monthly recording ofof registrations occurs when the title isis proHawaii. Monthly recording registrations occurs when the title proHawaii. Monthly recording of registrations occurs when the title is processed. cessed. cessed. We’ve changed our look, not our commitment to our customers. As a trusted F&I leader, we remain committed to driving profitability and best-in-class service. With a new brand promise we renew our focus on what is important to you. Learn more at protectiveassetprotection.com/brand Protect Tomorrow. Embrace Today.™ Vehicle Service Contracts I GAP Coverage I Credit Insurance I Lifetime Engine Warranty Limited Warranty I Dealer Participation Programs I F&I Training I Advanced F&I Technology Contact Protective’s Hawaii representative, Dylan Doran at 888 207 3351 Lifetime Engine Warranty, Limited Warranty, Vehicle Service Contracts (VSCs) and GAP are backed by Lyndon Property Insurance Company in all states except NY. In NY, VSCs are backed by Old Republic Insurance Company. GAP, Lifetime Engine Warranty and Limited Warranty are not available in NY. Credit Insurance is backed by Protective Life Insurance Company in all states except NY, where it is backed by Protective Life and Annuity Insurance Company. Advance Your ADVERTISING PromoTAG® transforms your current dispatch tag into an effective in-vehicle advertisement that generates cash. • Advertise special promotions • Increase your overall sales and success • Show off your branding and unleash a marketing campaign TAG your customers and maximize your profit potential. For more information on PromoTAG, please contact your Reynolds Document Consultant, Cliff Hall, at 559.325.8735 or [email protected]. © 2012 The Reynolds and Reynolds Company. All rights reserved. 4/12 NOW RUN YOUR CREDIT BUREAUS DIRECTLY FROM OUR COMPLIANCE DASHBOARD MANAGED GATEWAY 24/7 monitoring by systems engineer Firewall breech detection and alerts Ability to manage internet users by computer CISSP Certified 30 From Ship to Showroom Pasha Hawaii Proven Automotive Logistics solutions, backed by over 60 years of experience. A full range of valueadded services is available to Hawaii dealers and rental car companies for vehicles transiting to and from the West Coast of California and Hawaii. The only Pure Car Truck Carrier Service between Hawaii and the Mainland, with fully-enclosed decks for maximum protection of your vehicles. Now Offering Inter-Island Service www.pashahawaii.com • Hawaii (808) 538-2130 • California (951) 837-6485 31 Making the difference when it counts. For over 70 years, we’ve been providing our members with outstanding service excellence. Count on our Dealer Center to assist you in financing your next auto loan! Servicing our members auto loan needs on Oahu and Maui: l Downtown l Aiea l Kaneohe l Mililani l Kaimuki l Ala Moana l Waipahu l Kapolei l Hawaii Kai l Pearl City l Kahului Featuring our Dealer Center Staff: (L-R) June, Kammi, Kelli, John, Stacey & Kathryn Federally insured by NCUA • call: (808) 534.4300 / (800) 379.1300 toll-free • Life matters. hawaiiusafcu.com Protecting Our Customers' Assets Serving & Supporting Hawaii’s Auto Dealers Since 1976 Need Answers? www.HawaiiAutoDealer.com Your HADA Info Resource Cavanah Associates, Inc. An Independent Insurance Agency Specializing in: Full Dealer Package Garage Liability Property Insurance Physical Damage Workers Compensation Employment Practices Liability Phone: (808)537-1970 32 Vehicle Service Contracts GAP Protection Programs Homeowners Insurance Personal Auto Insurance Dealer Enhancements Group Life and More! www.cavanah.com Page 3 Covering Data thru June 2012 Covering Data thru June 2012 MONTHLY MOVING AVERAGE MONTHLY MOVING AVERAGE MONTHLY MOVING AVERAGE Hawaii Auto Outlook Page 3 Page 3 Market Gains Strength in 2012 Market Gains Strength in 2012 Market Gains Strength in 2012 Percent changeinin three month moving average increased for 20 consecutive Percent change three month moving average increased for 20 consecutive months months Percent change in three month moving average increased for 20 consecutive months Percent Change in Hawaii New Retail Light Vehicle Registrations Three Month Moving versus Year Earlier Percent Change in Hawaii NewAverage Retail Light Vehicle Registrations Three Month Moving Average versus Year Earlier 25.0% 25.0% % change in three month moving average % change in three month moving average The graph graph to tothe theright rightprovides providesa clear a clear picture of the general trending diThe graph to right provides a clear picture of the general trending direction rection of of the Hawaii new retail light picture general trending diof the Hawaii new retail light vehicle vehicleofmarket. And new as retail highlighted rection the Hawaii light market. And as highlighted in the graph, in the graph, trend the past vehicle market.theAnd as over highlighted the trend past two years isover positive. graph intwo theyears graph, the the trendThe over the shows past is positive. The graph percent shows the year-overthe year-over-year change two years is positive. The graph showsin the three month moving average the percent inof yearyear-over-year percent change in thechange three month new retail light vehicle registrations. the three month moving average of moving average of new retail light vehicle The retail three month movingregistrations. average pronew light vehicle registrations. The three month moving vides a clearer the trending The three monthpicture movingofaverage proaverage provides a clearer picture of the direction than picture individual monthly regvides a clearer of the trending trending than direction thanfluctuate individual monthly istrations, which can direction individual monthlydue reg-to registrations, which fluctuate due such factors as can thecan timing ofdue manuistrations, which fluctuate to to facturer incentive programs, such asthe thetiming timing of weather, manusuch factors as of manufacturer and vehicle title processing by facturer incentive programs, weather, incentive programs, weather, delays and vehicle governmental agencies. The market and vehicle title processing delays by title processing delays by governmental is clearly emerging fromThethemarket 2009 governmental agencies. agencies. The market is clearly emerging three month averisslump. clearlyTheemerging frommoving the 2009 from has the 2009 The threeearlier month age from year slump. Theincreased three slump. month moving avermoving hasfrom increased from year levels 20 straight months. age hasforaverage increased year earlier levels 20 straight months.months. earlierforlevels for 20 straight SEGMENTS Segments SEGMENTS 20.0% 20.0% 15.0% 15.0% 10.0% 10.0% 5.0% 5.0% 0.0% 0.0% -5.0% -5.0% -10.0% -10.0% Car Segments Gain Share in State and U.S. Markets Car Segments Gain Share in State and U.S. Markets Car Segments Gain Share in State and U.S. Markets Change in Segment MarketinShare Change Segment Market Share Change in Segment YTD 2012 thru June YTD 2012 Share thru June Market vs.thru June YTD 2012vs. YTD 2011 thru YTD 2011 thruJune June vs. YTD 2011 thru June Hawaii and Hawaii and U.S. Markets Hawaii and U.S. Markets U.S. Markets Typical models in segments: Typicalmodels modelsininsegments: segments: Typical Small Car: Hyundai Elantra Small Car: Hyundai Elantra Hyundai ElantraCamry MidSmall Size &Car: Large Car: Toyota Mid Size & Large Car: Toyota Mid Size & Large Car: Toyota Camry Luxury & Sports BMWCamry 3-Series Luxury Sports Luxury &&Pickup: SportsCar: Car:BMW BMW3-Series 3-Series Ford F-Series Pickup: Ford F-Series Pickup: Ford F-Series Van: Honda Odyssey Van:Honda Honda Odyssey Van: Odyssey Compact SUV: Jeep Liberty Compact SUV: Jeep Liberty SUV: Jeep Liberty MidCompact Size SUV: Jeep Grand Cherokee Mid Size SUV: Jeep Grand Cherokee Full Size SUV: Chevrolet Tahoe Mid Size SUV: Jeep Grand Cherokee Full Size SUV: Chevrolet Tahoe Luxury LexusTahoe RX Full Size SUV: SUV: Chevrolet Luxury SUV: Lexus RX Luxury SUV: Lexus RX Small Car Small Car Mid Size and Large Car Mid Size and Large Car Compact SUV Compact SUV Van Van Small Car market share increased in bothshare the Hawaii Small Car market and U.S. in markets. increased both the Hawaii and U.S. markets. Full Size SUV Full Size SUV Pickup Pickup Luxury and Sports Car Luxury and Sports Car Hawaii Hawaii US US Luxury SUV Luxury SUV Mid Size SUV Mid Size SUV -0.8 -0.8 -0.6 -0.6 -0.4 -0.4 -0.2 0.0 0.2 0.4 -0.2 Change 0.0 in market 0.2 share0.4 Change in market share 0.6 0.6 0.8 0.8 1.0 1.0 33 Convenience for Your Dealership, Payment Options for Your Customers... We Make It Simple with C.A.R.S. C.A.R.S. — CrossCheck’s Auto Industry Remote Deposit Capture Solution gives your dealership the convenience of desktop deposit, streamlined paperwork and check guarantee. CrossCheck’s service even includes a Future Deposit (Hold Check) option that lets you accept 2-4 checks from your customers for a single purchase. C.A.R.S. will process the checks for electronic deposit up to 30 days later. Drive more sales with a check program that benefits you and your customers. Call us for information about our HADA member program. Increase Sales with a Remote Deposit Capture Solution with Guarantee and Future Deposit! 34 Charles Dortch Vice President of Sales CrossCheck, Inc. (707) 665-2100, ext. 2500 [email protected] www.cross-check.com Driven To Deliver. With 50 years experience, Enterprise is driven to deliver award-winning customer service, great rates and free customer pick-up. Proud SuPPorter of the hawaii auto dealerS aSSociation. Enterprise Rent-A-Car is a socially responsible corporation. For more information please visit enterprise.com. ©2011 Enterprise Rent-A-Car. B02043 10/10 MM 35 HADA Numbers: Like a Pacific Version of Hawaii Retail Automotive Market New Vehicle Registrations by Year 70000 7 65000 years 65,882 years 62,712 57,526 57,456 55000 7 67,224 54,544 50000 53,314 51,500 51,388 47,783 45,249 44,865 44,175 45000 45,054 40000 I Now comes a new regulation that is sure to affect sales. New cars and light trucks which are sold in the U.S. market in 2025 must average 54.5 mpg--a requirement that doubles the current mpg average. That’s in just a little over 12 years --just 1.5 auto-buildout cycles. To keep SUVs, big trucks, and vans in their lineups and attain an average of 54.5 mpg, some large automakers 36 2012 2011 2010 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990 1989 t’s like the old Pharaoh’s dream. Seven fat years followed by seven lean (or at least leaner) years for Hawaii’s retail auto industry. 2009 35,531 34,019 33,639 35000 30000 43,100 (est.) 42,804 42,487 41,083 41,480 40,673 2008 60000 70,268 calculate that they will need to produce and sell hundreds of thousands of EVs in the U.S. market. It’s clear that the new rules were, in part, crafted to foster the adoption of electric vehicles, which are given 2x credit in the calculations. Hawaii, because its ideal conditions, is becoming the testing ground for several automakers. There’s some teeth in the program in the form of a $.50 per tenth-of-a-mile penalty for each vehicle sold if the automaker’s U.S.-sold fleet number is in non-compliance. An automaker falling 10 mpg short at a 44.5 average would thus see a penalty of $50 per vehicle. “Old Pharaoh’s Dream” Electric /Hydrogen Vehicle Adop4on Rate 2011-‐2030 Electric/Hydrogen Vehicle Adoption Rate 2011-2030 Source: HADA-Note: Blue (EV) ad – (hydrogen fuel cell of high mpg hybrids) bars show projected component composition in total. Some automakers may opt for such rather than suffer sales losses if the uptake on their fuel-efficient vehicles doesn’t develop at a rate needed to meet the federal requirement. This has been the case with the current CAFE standards. To date, most of the fines have been paid, mainly by the luxury carmakers whose sales trend toward larger, heavier vehicles. All the efforts are laudable. Hawaii auto dealers have shown good faith is making changes and bringing in inventory to meet the goals. The sputtering economy remains a challenge. Hawaii continues to dig its way out. Dealers all report that it’s not been easy, but now at least things are looking up. The Hawaii Clean Energy Initiative’s goal is even more stringent, targeting a 66 mpg average for all the 1.2 million cars and light trucks projected to be on the Hawaii roadways in 2030. 37 Page 4 Page 4 Hawaii Auto Outlook Brand Registrations Report Hawaii New Retail Car and Light Truck Registrations Page 4 Second Quarter Year to date thru June Brand Registrations Report Registrations Market Share Registrations Market Share (%) Hawaii New Retail Car(%) and Light Truck Registrations 2Q '11 2Q '12 % change 2Q '11 2Q '12 Change YTD '11 YTD '12 %Year change Second Quarter to date YTD thru '11 June YTD '12 Change TOTAL 9,752 Registrations 11,465 17.6 18,510 Registrations 22,110 19.4 Market Share (%) Market Share (%) Cars 4,908 24.7 50.3 53.4 3.1 9,301 22.3 50.2'11 YTD 51.5'12 Change 1.3 2Q '11 6,122 2Q '12 % change 2Q '11 2Q '12 Change YTD '11 11,378 YTD '12 % change YTD Light Trucks 4,844 10.3 49.7 46.6 -3.1 9,209 16.5 49.8 48.5 -1.3 TOTAL 9,752 5,343 11,465 17.6 18,510 10,732 22,110 19.4 Domestic 1,802 18.5 18.5 18.6 0.13.1 3,399 28.4 18.4 19.7 1.31.3 Cars Brands 4,908 2,135 6,122 24.7 50.3 53.4 9,301 4,365 11,378 22.3 50.2 51.5 European Brands 1,121 12.4 11.5 11.0 -0.5 20.7 11.2 11.3 0.1 Light Trucks 4,844 1,260 5,343 10.3 49.7 46.6 -3.1 2,072 9,209 2,500 10,732 16.5 49.8 48.5 -1.3 Japanese Brands 5,932 7,162 20.7 60.8 62.5 1.7 11,576 13,544 17.0 62.5 61.3 -1.2 Domestic Brands 1,802 2,135 18.5 18.5 18.6 0.1 3,399 4,365 28.4 18.4 19.7 1.3 Korean Brands 897 908 1.2 9.2 7.9 -1.3 1,463 1,701 16.3 7.9 7.7 -0.2 European Brands 1,121 1,260 12.4 11.5 11.0 -0.5 2,072 2,500 20.7 11.2 11.3 0.1 Acura 135 216 60.0 1.4 1.9 0.5 274 383 39.8 1.5 1.7 0.2 Japanese Brands 5,932 7,162 20.7 60.8 62.5 1.7 11,576 13,544 17.0 62.5 61.3 -1.2 Audi 108 116 7.41.2 1.19.2 1.07.9 -0.1 176 221 25.6 1.07.9 1.07.7 0.0 Korean Brands 897 908 -1.3 1,463 1,701 16.3 -0.2 BMW 263 246 -6.5 2.7 2.1 -0.6 513 473 -7.8 2.8 2.1 -0.7 Acura 135 216 60.0 1.4 1.9 0.5 274 383 39.8 1.5 1.7 0.2 Buick 21 28 33.3 0.2 0.2 0.0 51 61 19.6 0.3 0.3 0.0 Audi 108 116 7.4 1.1 1.0 -0.1 176 221 25.6 1.0 1.0 0.0 Cadillac 33 34 3.0 0.3 0.3 0.0 79 83 5.1 0.4 0.4 0.0 BMW 263 246 -6.5 2.7 2.1 -0.6 513 473 -7.8 2.8 2.1 -0.7 Chevrolet 428 529 23.6 4.4 4.6 0.2 779 1,026 31.7 4.2 4.6 0.4 Buick 21 28 33.3 0.2 0.2 0.0 51 61 19.6 0.3 0.3 0.0 Chrysler 30 82 173.3 0.3 0.7 0.4 61 162 165.6 0.3 0.7 0.4 Cadillac 33 34 3.0 0.3 0.3 0.0 79 83 5.1 0.4 0.4 0.0 Dodge (incl. Ram) 247 315 27.5 2.5 2.7 0.2 444 611 37.6 2.4 2.8 0.4 Chevrolet 428 529 23.6 4.4 4.6 0.2 779 1,026 31.7 4.2 4.6 0.4 Fiat 26 47 0.3 0.4 0.1 26 91 0.1 0.4 0.3 Chrysler 30 82 173.3 0.3 0.7 0.4 61 162 165.6 0.3 0.7 0.4 Ford 769 767 -0.3 7.9 6.7 -1.2 1,469 1,655 12.7 7.9 7.5 -0.4 Dodge (incl. Ram) 247 315 27.5 2.5 2.7 0.2 444 611 37.6 2.4 2.8 0.4 GMC 94 116 23.4 1.0 1.0 0.0 207 265 28.0 1.1 1.2 0.1 Fiat 26 47 0.3 0.4 0.1 26 91 0.1 0.4 0.3 Honda 1,457 1,563 7.3 14.9 13.6 -1.3 2,785 2,891 3.8 15.0 13.1 -1.9 Ford 769 767 -0.3 7.9 6.7 -1.2 1,469 1,655 12.7 7.9 7.5 -0.4 Hyundai 466 542 16.3 4.8 4.7 -0.1 795 953 19.9 4.3 4.3 0.0 GMC 94 116 23.4 1.0 1.0 0.0 207 265 28.0 1.1 1.2 0.1 Infiniti 65 76 16.9 0.7 0.7 0.0 173 164 -5.2 0.9 0.7 -0.2 Honda 1,457 1,563 7.3 14.9 13.6 -1.3 2,785 2,891 3.8 15.0 13.1 -1.9 Jaguar 19 7 -63.2 0.2 0.1 -0.1 36 35 -2.8 0.2 0.2 0.0 Hyundai 466 542 16.3 4.8 4.7 -0.1 795 953 19.9 4.3 4.3 0.0 Jeep 161 252 56.5 1.7 2.2 0.5 274 471 71.9 1.5 2.1 0.6 Infiniti 65 76 16.9 0.7 0.7 0.0 173 164 -5.2 0.9 0.7 -0.2 Kia 431 366 -15.1 4.4 3.2 -1.2 668 748 12.0 3.6 3.4 -0.2 Jaguar 19 7 -63.2 0.2 0.1 -0.1 36 35 -2.8 0.2 0.2 0.0 Land Rover 17 28 64.7 0.2 0.2 0.0 37 60 62.2 0.2 0.3 0.1 Jeep 161 252 56.5 1.7 2.2 0.5 274 471 71.9 1.5 2.1 0.6 Lexus 321 375 16.8 3.3 3.3 0.0 602 723 20.1 3.3 3.3 0.0 Kia 431 366 -15.1 4.4 3.2 -1.2 668 748 12.0 3.6 3.4 -0.2 Lincoln 18 10 -44.4 0.2 0.1 -0.1 33 29 -12.1 0.2 0.1 -0.1 Land Rover 17 28 64.7 0.2 0.2 0.0 37 60 62.2 0.2 0.3 0.1 Mazda 332 447 34.6 3.4 3.9 0.5 620 773 24.7 3.3 3.5 0.2 Lexus 321 375 16.8 3.3 3.3 0.0 602 723 20.1 3.3 3.3 0.0 Mercedes 206 250 21.4 2.1 2.2 0.1 438 554 26.5 2.4 2.5 0.1 Lincoln 18 10 -44.4 0.2 0.1 -0.1 33 29 -12.1 0.2 0.1 -0.1 MINI 161 154 -4.3 1.7 1.3 -0.4 269 293 8.9 1.5 1.3 -0.2 Mazda 332 447 34.6 3.4 3.9 0.5 620 773 24.7 3.3 3.5 0.2 Mitsubishi 43 58 34.9 0.4 0.5 0.1 73 113 54.8 0.4 0.5 0.1 Mercedes 206 250 21.4 2.1 2.2 0.1 438 554 26.5 2.4 2.5 0.1 Nissan 1,060 1,100 3.8 10.9 9.6 -1.3 2,007 2,224 10.8 10.8 10.1 -0.7 MINI 161 154 -4.3 1.7 1.3 -0.4 269 293 8.9 1.5 1.3 -0.2 Porsche 37 39 5.4 0.4 0.3 -0.1 55 73 32.7 0.3 0.3 0.0 Mitsubishi 43 58 34.9 0.4 0.5 0.1 73 113 54.8 0.4 0.5 0.1 Saab 3 2 -33.3 0.0 0.0 0.0 6 2 -66.7 0.0 0.0 0.0 Nissan 1,060 1,100 3.8 10.9 9.6 -1.3 2,007 2,224 10.8 10.8 10.1 -0.7 smart 6 28 366.7 0.1 0.2 0.1 26 58 123.1 0.1 0.3 0.2 Porsche 37 39 5.4 0.4 0.3 -0.1 55 73 32.7 0.3 0.3 0.0 Subaru 125 158 26.4 1.3 1.4 0.1 270 314 16.3 1.5 1.4 -0.1 Saab 3 2 -33.3 0.0 0.0 0.0 6 2 -66.7 0.0 0.0 0.0 Suzuki 61 41 -32.8 0.6 0.4 -0.2 127 73 -42.5 0.7 0.3 -0.4 smart 6 28 366.7 0.1 0.2 0.1 26 58 123.1 0.1 0.3 0.2 Toyota/Scion 2,333 3,128 34.1 23.9 27.3 3.4 4,645 5,886 26.7 25.1 26.6 1.5 Subaru 125 158 26.4 1.3 1.4 0.1 270 314 16.3 1.5 1.4 -0.1 Volkswagen 192 288 50.0 2.0 2.5 0.5 351 525 49.6 1.9 2.4 0.5 Suzuki 61 41 -32.8 0.6 0.4 -0.2 127 73 -42.5 0.7 0.3 -0.4 Volvo 70 45 -35.7 0.7 0.4 -0.3 119 93 -21.8 0.6 0.4 -0.2 Toyota/Scion 2,333 3,128 34.1 23.9 27.3 3.4 4,645 5,886 26.7 25.1 26.6 1.5 Other 14 12 -14.3 0.1 0.1 0.0 22 24 9.1 0.1 0.1 0.0 Volkswagen 192 288 50.0 2.0 2.5 0.5 351 525 49.6 1.9 2.4 0.5 Source: Automotive Volvo AutoCount data from Experian 70 45 -35.7 0.7 0.4 -0.3 119 93 -21.8 0.6 0.4 -0.2 Other 14 12 -14.3 Source: AutoCount data from Experian Automotive Hawaii Auto Outlook 0.1 0.1 0.0 22 24 9.1 0.1 0.1 Hawaii Auto Outlook Auto Outlook HawaiiHawaii Auto Outlook Hawaii Autoby: Outlook Published Published by: Auto Outlook, Inc.Inc. Auto Outlook, Published by: 5 Great Valley Parkway 5 Great Valley Parkway Auto Outlook, Inc. Malvern, PA 19355 PA Parkway 19355 5Malvern, Great Valley Phone: 800-206-0102 Phone: 800-206-0102 Malvern, PA 19355 EMail: [email protected] 800-206-0102 EMail:Phone: [email protected] Reproduction, including photocopying EMail: [email protected] of this publication in whole or in part, is prohibited without including the expressphotocopying permission Reproduction, ofofAuto Inc. inAny material thisOutlook, publication whole or inquoted part, is must be attributed Hawaii Autopermission Outlook, prohibited withouttothe express published by Auto Inc. Outlook, Inc. on behalf of Auto Outlook, Any material quoted ofmust HADA. events may affect the beUnforeseen attributed to Hawaii Auto Outlook, forecast projections presented published by Auto Outlook, Inc.inonHawaii behalf Auto Outlook. Consequently, of HADA. 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Auto OutlookThe is pubtomobile Dealers publilished edited by Auto Inc., cationand is sponsored and Outlook, supported byan the independent research Association.automotive Hawaii Automarket Outlook is pubfirm. expressed HawaiiInc., Autoan lishedOpinions and edited by Auto in Outlook, Outlook are solely those ofmarket Auto Outlook, independent automotive research Inc., are not necessarily by the firm.andOpinions expressed shared in Hawaii Auto Hawaii Automobile Outlook are solelyDealers those Association. of Auto Outlook, Inc., and are not necessarily shared by the Copyright Auto Outlook, Inc. Association. Hawaii Automobile Dealers August 2012 Copyright Auto Outlook, Inc. 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