D R A H G PLAYIN VEGAS STYLE
AIADA CHAIRMAN
YEAR IN REVIEW
NADA EDITION • FEBRUARY 2020
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02 Las Vegas Convention Center Map
Stay on track, beat the crowd and make the most of your time at NADA.
06 NADA 2020 Keynote Speakers
Don’t miss this amazing line up, sure to inform you and get a few chuckles along the way.
08 Shaping the Benefit For the Customer Julian Johnston, Vice President of Innovation & Platform Philosophy at AutoAlert
12 Vegas Off the Strip
Not in the mood for a cliché Vegas visit, check out this guide for a truly unique experience.
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CONTENTS NADA EDITION • FEBRUARY 2020
14 Managing Your Reputation
Build and protect your dealership rep with these tips.
16 Valentine’s In Vegas
With your sweetheart or solo, these options are sure to give you that loving feeling.
19 After Hours Party Guide
The hottest happenings around town, once the doors close at the show.
20 AIADA Year In Review
Howard Hakes, President of Hitchcock Automotive Resources
FROM THE EDITOR:
Modern Dealership: NADA 2020 SPECIAL EDITION The future is here! We made it and what better way to celebrate the last decade of successes, and prepare for the next decade, than in Las Vegas at the NADA SHOW 2020. You came to work, play, inform and learn, and we have all the must do’s, must see’s, must not miss’s all packed into this colorful magazine – not unlike your time at NADA. The FOMO is real, so we are here to streamline your experience and provide a little fodder for when you do take a few minutes to sit (check out our map for the lifestyle relax area p.02). Howard Hakes is back with us and takes us through the highlights of his year serving as AIADA Chairman (p.20). Survive and thrive by meeting the expectations of today’s customers served up by Julian Johnston (p.08). Get a little romantic for the 14th (p.16) or go off The Strip (p.12) to have some truly memorable experiences. The Keynote Speakers list (p.06) and the After-Hours Party Guide (p.19) will keep you humming day to night. It’s good to be back in Vegas!
KEYNOTE SPEAKERS CHARLES W. GILCHRIST 2019 NADA Chairman Charles W. "Charlie" Gilchrist is president of Gilchrist Automotive, which started with SouthWest Ford in 1986 and now encompasses 10 individual New Vehicle franchise dealerships in the greater Dallas Fort Worth metroplex. He started in the automotive business as controller of a heavy-truck store, then was general manager of two Ford dealerships, SouthWest Ford and Nichols Ford. Gilchrist is 2019 chairman of the National Automobile Dealers Association and represents Northern Texas's franchised new-car dealers on the board of directors. (Term: January 2014-January 2020)
SATURDAY, FEBRUARY 15
KATHLEEN MADIGAN LIVE Kathleen Madigan entertains with often non-PC, observational humor on topics everyone can relate to. Voted Funniest Female Stand-Up at the 1996 American Comedy Awards, Madigan routinely sells out shows at comedy clubs and theaters across the country. The former journalist is a late-night TV favorite who has also starred in her own popular HBO Comedy Half-Hour special.
SATURDAY, FEBRUARY 15 6
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A CONVERSATION WITH MR. DAVID CAMERON One of the most talked- about global politicians of the early 21st Century, David Cameron served as Prime Minister of the United Kingdom from 2010 to 2016. He offers lessons in leadership at a turbulent time in global affairs and will provide his perspective on the future of the European Union and Britain’s place in the world following Brexit. As Prime Minister, Cameron came to power following the 2008 economic crisis, remodeling the Conservative Party with a new and distinct agenda. Today, Cameron works with a number of international tech businesses.
SUNDAY, FEBRUARY 16
RHETT RICART 2019 NADA Vice Chairman Rhett Ricart is president and CEO of Ricart Automotive Group, in Groveport, Ohio. Founded in 1953 by Ricart’s father Paul Ricart Sr., the organization today employs more than 500 people and sell approximately 14,000 vehicles across 6 new product lines annually. It was Paul’s philosophy that in order to lead, you have to work alongside the employees first, so Rhett started out washing cars before working in every aspect of the dealership’s business. Rhett and his brother Fred assumed ownership of Ricart Automotive in 1982. Ricart is 2019 NADA vice chairman and represents Ohio's franchised new-car dealers on the association board of directors.
MONDAY, FEBRUARY 17
MARY T. BARRA Building A Stronger Future For Customers, Dealers And General Motors Barra envisions a world with zero traffic crashes, to save lives; zero emissions, so future generations can inherit a healthier planet; and zero congestion, so customers get back a precious commodity: time. Barra has established a strategic direction based on putting the customer at the center of everything the company does. In her keynote address, Chairman and CEO Mary Barra will share GM’s progress toward achieving its bold vision and the critical role dealers play in a future that will include electric and self-driving vehicles
MONDAY, FEBRUARY 17
THE 2010s SAW THE GROWTH OF ACTIONABLE DATA FOR DEALERSHIPS DEALERSHIPS HAVE ARRIVED AT A CRITICAL CROSSROADS. IT’S NOT SO MUCH ABOUT ADOPTING NEW TECHNOLOGIES AND PRACTICES IN ORDER TO BE MODERN AS IT IS ABOUT ADOPTING THEM TO SURVIVE AND CONTINUE TO THRIVE. I’m not talking robots taking over our jobs, y’all. I’m talking about an awesome opportunity to leverage data analytics and connect every aspect of your dealership in order to meet – or better, exceed – the expectations of today’s shoppers. For your team, this translates to customer-centric collaboration and communication. For your customers, it results in a continuously seamless, personalized experience.
THE CUSTOMER RULES Our customers have always been king, but technology has upped their expectations. A quote from Jeff Bezos’ annual shareholder letter titled, “Stay Terrified of Your Customers” recently caught my attention:
BY JULIAN JOHNSTON, VICE PRESIDENT OF INNOVATION AND PLATFORM PHILOSOPHY AT AUTOALERT
“I constantly remind our employees to be afraid, to wake up every morning terrified. Not of our competition, but of our customers. Our customers have made our business what it is, they are the ones with whom we have a relationship, and they are the ones to whom we owe a great obligation. And we consider them to be loyal to us – right up until the second that someone else offers them a better service.” It might be a little fear-based, but what I really like about this quote is that it’s a great reminder of just how powerful the
THE 2020s WILL SHAPE THE BENEFIT FOR THE CUSTOMER customer is. Success today and in the future means placing the customer at the center of everything we do as dealers. This is how we’ll meet and exceed their growing expectations. As a bonus, then we’ll naturally beat the competition too.
A GROWING TIDE The timing is a bit disputable (due to differing definitions of what makes a millennial), but according to most sources, millennials overtook Baby Boomers last year as the most populous generation in the U.S. And Generation Z isn’t far behind. The two are set to overtake Boomers as the dominant U.S. consumers in the coming years. As young adults from these generations start and continue to grow their careers, and begin to account for an even larger share of spending in our economy, it’s essential that we meet them where they are. They grew up with smart phones, Facebook, and Amazon. They’re used to finding not only all the information they want right at their fingertips, but also deals and offers almost freakishly personalized for their exact, current wants and needs. (And really, it’s rare to find anyone, no matter their age, who doesn’t check their phone at least 10 times a day.)
Due to these omnipresent phones and thus more options for keeping in touch with customers (via texts, email, social media, etc.), it’s only natural that this has led to the need for an increase in the perceived value of the message. It has to get the customer’s attention. This is where customer-centricity was born, and where leveraging data comes into play. Never before have dealerships been able to combine so much previously siloed data on their customers in one place, analyze it quickly and efficiently, and turn it into valuable communications for the customer to provide one seamless journey.
3 AREAS OF FOCUS FOR CUSTOMER-CENTRICITY Let’s take a look at three main areas where dealers can increase their perceived value via customercentric data and personalized communications.
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STREAMLINING THE DEALERSHIP A good place to start is at home, with your team. Keep everybody connected with each other (and with each customer’s journey) right on their phones and laptops. This re-engages your team every day and keeps them working together toward the goal, ensuring that no opportunity is missed. Messaging, collaboration, proven processes, and trackable
results increase efficiency, speed, and adaptability – all of which are critical to the customer experience today. Other businesses are achieving this through software like Slack and GroupMe, but dealers need a solution made for our unique needs. The critical factor in the equation is the data that’s being gathered, analyzed, and communicated. Which brings us to our second point.
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ADVANCED CUSTOMER RELATIONSHIP-BUILDING The CRM helped us keep in touch with our customers, but today’s message has to be evernew and include real-time activation of big data, including Tier 3 incentives and third-party data, for complete personalization. This data can be thought as of living, because it’s ever-changing. Using it intelligently allows dealers to catch up with customers’ expectations and even surpass them. AutoAlert’s Customer Experience Management (CXM) tells your team every day which customers can swap keys today as well as those who are most likely to. It can also help move customers into this position when they’re ready. It also helps automatize the message or messages to that customer, whether this happens via text, in email, at home, in the service lane, or on the sales floor. Does it matter so much that they buy today? Not necessarily. You’ve kept in touch with a “no pressure” message that’s relevant and personalized, and that’s plenty for some customers to come on in and trade. It’s also enough to keep you top-ofmind when the rest are ready to buy – which, due to AutoAlert’s advanced data analytics – you’ll know anyway, enabling you to reach out before the competition. It’s the communicating of ever-new information and opportunities that really appeals.
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BRINGING THE ONLINE OFFLINE From my research, it’s a misconception that consumers want to buy cars online; what they want is a similar experience to shopping online (i.e., fast service, all the info they need, etc.). For example, 2019 holiday car-shopper stats show that only 13%
would like to buy or lease a car entirely online, with the majority (49%) preferring to shop online initially and then visit a dealer, according to a study by Swapalease. Consumers value human interaction and even prefer it, especially with big-ticket items, but we must get it right. The same study also showed that almost twice as many car shoppers (51%) like to begin their search online, rather than with a visit to a dealership (23%). What if your customer were shopping online and received an offer from your dealership that really resonated with them? Or if another had an expensive repair, then received the option to trade keys instead, at a similar payment? Behavior-learning models of data analytics go deeper than this – even incorporating individual consumer responses – and consistently get better at predicting customer needs. By removing steps that were previously required to take in buying a car, you increase your dealership’s value. And because offline experiences will be faster and more automated, your team has time freed up to engage in relationship-building conversations with customers.
AN EXCITING ROAD AHEAD Many (if not all) of the biggest, longest-enduring, most successful dealerships share one thing in common: a strong focus on the customer from Day 1. With today’s access to data and technology, it’s not too late for any dealership to see major success. But in order to sell more cars, the customer must move into the heart of why we do what we do. Relationships must be built, trust earned, and expectations met or exceeded. Today more than ever, we have incredible opportunities to make car-buying easy and exciting. It takes a new approach, but one with roots in the industry already. Because for most of us, it’s always been about the customer. We now have better ways than ever to understand our customers’ point of view and to take their experience to the next level.
REAL OFFERS REAL CUSTOMERS REAL CONNECTIONS
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833.244.5720 Get in the driver's seat with our new campaign dashboard and OEM-approved offer statements.
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M O D E R N D E A L E R S H I P. C O M
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The Las Vegas Strip…where the electric bills must be staggering and the competition for your attention can be overwhelming. Whether you’re a return visitor looking for something off the beaten path, in the mood for something a bit lower-key, or just looking for something unusual, there’s no shortage of things to see and do off the Strip.
FREMONT STREET Memphis has Beale Street. New Orleans has the Rue Bourbon. Vegas has Fremont Street. Located north of the Strip downtown, Fremont Street was the epicenter of Old Vegas before the Strip and is still home to many casinos, hotels and restaurants. The Viva Vision light shows are billed as “known around the world as one of the best free things to do in Las Vegas”; three stages offer live music every night of the year.
VALLEY OF FIRE STATE PARK Maybe Old Vegas is still a little too much “Vegas” for you, and you’d like to get into the wild, clear your head, and take in some desert scenery? While Red Rock Canyon (mentioned elsewhere in this issue and well worth checking out!) is a little closer, for those looking to get further away from the bustle of the Strip, Valley Of Fire is about 40 minutes northeast and home to some of the most beautiful desert north of the Grand Canyon or the Painted Desert. Valley of Fire offers several hiking options for the adventurous visitor, with iconic geological formations at nearly every turn. 12
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DOUBLE DOWN SALOON There’s music to be found at every turn on the Strip, but for those with tastes more dive bar than casino theater, Double Down (4640 Paradise Rd, (702) 791-5775) has a long reputation as a great spot to see indie bands while enjoying a $3 Crown and Coke. If the kind of place where Happy Hour starts at noon is for you, check out Double Down. Bring cash- as of last check, the DD is one of the eight places left in America that doesn’t accept plastic. There’s an ATM if you forget, though.
There are so many interesting things to see and do in Vegas that it’s hard leaving things out, but we’ll have to save some for next time. Whatever you choose to see and do, we hope you enjoy your Vegas visit and NADA 2020!
THE NEON BONEYARD …sounds like the name of a band from Brooklyn you might catch on tour at the Double Down, but it’s exactly what the name claims: 2.62 acres of defunct neon from casinos and businesses. Think of Vegas, and it’s a guarantee that whatever mental images are conjured up, they’re neonlit. This nonprofit museum is dedicated to preserving the history of the city through neon signage, and the unrestored Boneyard collection is a wistful look into the faded glitz of Vegas past. (770 Las Vegas Blvd N, (702) 387-6366)
LONNIE HAMMARGREN’S HOUSE If weird is what you want, this museum home (located at 4318 Ridgecrest Dr ) is a can’t-miss Vegas favorite. 82-year-old Hammargren is a retired neurosurgeon and former Nevada Lieutenant governor with a massive collection of oddball artifacts, from casino signs not unlike the Boneyard’s to an Apollo space capsule. While technically only open on Nevada Day each year, tours are available by arrangement for a small donation, just call (702) 596-6669 to speak with Hammargren himself.
RESTAURANTS OFF THE STRIP Wherever you work up an appetite, there are even more interesting places to eat in Vegas than there are casinos, even away from the Strip. Echo & Rig (440 S Rampart Blvd, (702) 489-3525) is a carnivore’s delight that operates a butcher shop alongside their dining room. If meat is your thing but Asian sounds more appealing Kogi Korean BBQ & Seafood Hotpot (1263 E Silverado Ranch Blvd, (702) 915-7988) is new but highly regarded by locals and visitors alike, as is Katsuya Ton Ton (7225 S Durango Dr #105, (725) 605-4402) for Japanese cuisine.
There may not be any shortcuts to a good reputation, but there certainly are ways to strengthen and protect one that’s been built through hard work and dedication.
Google won’t fully spill the beans when it comes to how they determine website rankings, many SEO experts believe that customer reviews and even social media mentions play a key role.
One of the most important places to do that today is online, where the vast majority of shoppers do their research on a company before making a purchase. At the National Retail Federation’s Big Show in NYC this January, Alibaba Group’s Tmall Luxury Division Head of Fashion and Luxury Christina Fontana told attendees that 80% of shoppers at Tmall (the world’s third most visited website, according to Alexa) read online reviews.
“You need to respond to negative reviews and try to elicit online reviews from your pleased customers,” says Chris Smith, President of Argent Media, a search engine marketing company. “If your service frequently creates friction with clients, eliminate the points of conflict and improve your customer service practices. … Finally, practice proactive reputation management by working to positively engage with your community, both online and offline, consistently over time.”
The importance of a good online reputation for any business cannot be overemphasized – it also isn’t anything new. What is new, however, is the way and the speed at which a reputation can change today, thanks to the internet.
Quickly Find and Respond to Negative Reviews
Responding to negative reviews quickly and in a non-triggered is a great way to help build a positive reputation. But that means you have to The critical relationship between the internet find the bad reviews first. Contrary to the way and reputation also includes how easy it is for it feels at times, those negative reviews don’t customers to find your dealership online. Although always pop right out at you.
Reputation & Search Ranking
Again, your customers will be searching for reviews, so don’t let them find anything less than positive ones before you’ve had the chance to respond. Voice your concern for the customer’s experience in your response. Express regret at not meeting their needs, and offer a solution for making it up to them. Remember, how you respond to a negative review often carries more weight in consumers’ minds than the bad review itself – they want to know how they’ll be treated if they have a similar complaint. AutoAlert’s reputation management solution gives you the option of being alerted to reviews on popular websites daily or weekly. The appropriate person can then respond to reviews right from AutoAlert’s platform, making it easy and quick.
Easily Build Positive Reviews But perhaps even more important than responding to negative reviews – or at least, equally important – is to be proactive about building positive ones. AutoAlert’s tool provides an advanced review request tool just for that purpose.
Say your service advisor just made a customer light up like the Christmas tree at Rockefeller Center. Another customer is gushing over their amazing purchasing experience to a friend. Send a quick survey right away that makes it easy for those customers to leave glowing reviews online. Should a customer give you a less-than-glowing review, no sweat. AutoAlert redirects negative reviews to a non-public website where you can address the customer’s concerns privately and turn their bad experience into a good one.
Grow From the Ground Up Managing your reputation proactively, quickly, and consistently is just one part of a bigger picture of the customer experience at your dealership. That’s why AutoAlert provides a complete solution for putting your customers at the center of your processes and communications, to ensure that every experience is a great one. It equates to growing your reputation from the ground up, which helps ensure that the positive reviews keep piling up. M O D E R N D E A L E R S H I P. C O M
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Vegas Wants to Be Your Valentine … You have a lot to look forward to for NADA Show 2020. Whether it’s your first show or your fortieth, there are old friends to catch up with, new friends to make, parties and workshops to attend, and, of course, laps to make around the conference floor. With a busy schedule, you might be in need of a quick little night off – maybe a romantic evening or some self-care time (Friday is Valentine’s Day, after all). Check out these “mini escape” ideas for inspiration.
This is for the person who would rather see the stars in the night sky than the stars on the strip. (But if you’re still curious, see “The Music Lover” for just a few of the stars who’ll be in town for the night.) Get started by lining up your ride for the day. Turo offers a few Polaris Slingshots in Vegas, or some Range Rovers and Mustangs if that’s more your thing. Then plan on about a 35-minute drive out to Red Rock Canyon for spectacular stargazing and some of the best views of the city.
Instead of stopping at the popular Scenic Loop – it’s closed after dark! – park at the Cowboy Trail Rides horseback riding stables and head out on one of the well-trodden trails. For experienced hikers, Blue Diamond Hill offers a 7.2-mile roundtrip hike and moderate climb. Your reward is some of the best views of the city lights at night in addition to the gazillions of stars. (Actually, Red Rock is close enough to give you plenty of time for the best of both worlds: Go stargazing, then cruise the strip and hit a party!)
At the time this article was published, there were still tickets available to see Gwen Stefani at Zappos Theater in Planet Hollywood Resort & Casino. Or maybe you’d rather “burn out the day, burn out the night” with Blue Öyster Cult at the Golden Nugget Casino. Mariah Carey – billed as “the best-selling female artist of all time with over 200 million records sold” – is sure to be dazzling concertgoers with her “vision of love” at Caesars Palace. The Doobie Brothers, Dierks Bentley, and Barry Manilow round out the other concert options for Friday night. Maybe you like your music glitzier? Say, with some acrobatics and death-defying tricks thrown in? Make a plan to see a Cirque du Soleil show – “Michael Jackson ONE” and “The Beatles LOVE” are two showing Valentine’s night for music
Night hikes and body benders not your thing? A trip to the spa might be just what’s in order after a long day on your feet. As with just about everything else, when it comes to the spa experience, Vegas goes all out. One of Vegas’ finest spas can be found at the Cosmopolitan’s Sahra Spa, Salon & Hammam. Its “Couples Moroccan Journey” treatment offers an 80-minute Hammam treatment with a 50-minute massage. The two of you will be washed down in volcanic black soap, detoxified in rhassoul clay,
lovers. And then there’s the adults-only show, “Zumanity.” Seeing a Cirque du Soleil show has been compared to “watching a live fairy tale in 3D” and being “a bit like partaking of an illegal substance then carelessly entering and wandering wideeyed through a death-defying and fantastical world of freaky body benders, mystical creatures on stilts, and fearless aerialists whom Your Mama thinks must have less common sense than a boll weevil to even consider pouring themselves into genitalia-revealing outfits and flinging their lithe and lust-producing bodies up into the air like they don’t have a damn bone to break” (Mark David, Variety magazine). Could be fun! 702-791-7416
hydrated with honey, and soaked in a tub with eucalyptus steam. And then comes the massage. Aahhhh. Be sure to schedule in advance, and note that Sahra closes at 8 p.m. 702-698-7171 (The last Moroccan Journey of the day is scheduled at 5:30 p.m.) The Spa at The LINQ Hotel offers a Himalayan salt therapy cave and separate men’s and women’s lounges with whirlpools, eucalyptus steam rooms, and refreshing cucumber towels, in addition to the more classic offerings like body polishes, mud wraps, facials, and massages. Be sure to schedule in advance, and note that The Spa at The LINQ closes at 7 p.m. 702-794-3242
Head to the Wynn’s Spa at Encore for an exotic retreat complete with garden villas, couple’s rooms, and relaxation areas. Be sure to arrive at least 30 minutes early to ensure enough time to spend taking a quick shower and then enjoying
the sauna, steam room, and whirlpool. Couple’s packages include massages and body treatments. Schedule in advance, and note that Encore Spa closes at 8 p.m. 702-770-4772
After a long day spent mostly indoors, hop into your BMW i8 or Maserati GranTurismo (both available on Turo) and cruise the strip in style.
If you haven’t had a chance to check out The Mob Museum, tonight might be the perfect time to do so – it marks the 91st anniversary of the infamous St. Valentine’s Day Massacre. On Valentine’s night 1929, seven members of Bugs Moran’s North Street Irish Gang were lined up in front of a brick wall and shot point-blank by thugs hired by Al Capone’s gang’s heavy Jack “Machine Gun” McGurn. Although the massacre happened in Chicago, the wall has since made its way to the Vegas museum. Stop by The Underground speakeasy and distillery afterward, open till midnight. (Note: If you plan on going Saturday instead, The Underground closes at 8:45 p.m.) The museum closes daily at 9 p.m.
You know you’ll want to check out possibly the most recognizable hotel in Vegas, the Bellagio. The fountains out front are practically made for romance, with a new light-and-music show taking place every 15 minutes up until midnight. Love nature? Don’t miss The Bellagio Conservatory & Botanical Gardens inside the famous hotel, open 24 hours. The Bellagio even offers up to an hour of free self-parking.
This poem was left near “Machine Gun” McGurn’s body by his killers, who shot him on February 15, 1936: “You’ve lost your job, you’ve lost your dough Your jewels and cars and handsome houses But things could still be worse you know ... At least you haven’t lost your trousers!”
Or satisfy your sweetie’s sweet tooth at I Love Sugar – 14,000 square feet of candy heaven located at The LINQ Promenade, across from Caesars Palace. Complete with a gigantic gummy bear chandelier and considered “the largest candy experience in the world,” I Love Sugar is sure to satisfy the eyes as much as the taste buds. They also have a candy-infused martini bar. Open till 1 a.m. Not in the mood to make any stops? Just enjoy cruising the strip – great for people-watching. Who knows? Maybe you’ll cross paths with Mariah or Gwen … Of course, nobody will judge you if you just want to kick off your shoes and catch up on some Netflix. Have a Happy Vegas Valentine’s!
CAN’T-JUST-PICK-ONE
AFTER HOURS PARTY GUIDE FEB. 14th - FRIDAY
Joe, Arnold & Shaun Karaokethon! Celebrate Valentine’s Day by crooning the night away or listening to other’s renditions of Viva Las Vegas, while enjoying an open bar. Sponsored by Reputation.com, fusionZONE, & InteractiveTel and held at The Thunderbird Saloon from 8pm to 1am. Just need your badge to get in!
DON’T
MISS OUT!
FEB. 15th - SATURDAY
Reserve your spot for a sure to be good time at the Force Marketing & Wheels Up Client Appreciation Party at the Alibi Ultra Lounge located in the Aria Resort and Casino - serving up craft cocktails. Starts at 5:30 PM with no ending time indicated. If testing your skills with a view is what you consider a top-notch way to say thank you, then head on over to the DealerInspire NADA Party at Top Golf. It starts at 6:00 PM and also does not have a specified ending time. Get your tickets at Booth #3557C If you prefer to sip cocktails surrounded by celebrities made of wax, then the CarGurus Cocktail Party at Madame Tussauds located in the The Venetian is where you’ll want to head. Take tons of selfies between 6:00pm-9:00pm. Get your tickets at Booth #6209N
FEB. 16th - SUNDAY
The cap to what’s sure to be a monumental NADA is the can’tmiss AutoBash After Dark party sponsored by AutoAlert. Held at the House of Blues and featuring a concert by Uncle Kracker. Starts at 9pm and ends when they kick you out! These tickets will be very popular so you would be wise to try and secure yours as soon as possible. Visit #3365C
AIADA YEAR IN REVIEW WITH HOWARD HAKES
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hen I took over as AIADA’s Chairman less than 12 months ago, I knew I had my work cut out for me. AIADA was founded 50 years ago with one mission - to protect international nameplate dealers in the United States against protectionist, anti-trade policies. We have seen a lot over the past half century – from luxury taxes to truck tariffs – but when it comes to trade, I am not sure we have ever seen a year like 2019.
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First, great strides were made in negotiating and preparing passage of the U.S.-Mexico-Canada Free Trade Agreement (USMCA). The NAFTA replacement was originally signed in 2018 and then, despite tariff threats and negotiation clashes, successfully amended by all three countries last month. Congressional Democrats have struck a deal with the White House and the agreement has successfully been passed through both the House and United State Senate. While details over rules pertaining to the automotive industry still need to be hammered out, we are gratified to see a deal has been reached, and that North American auto production can continue to grow and benefit all Americans. Much progress has also been made on our trade relationship with China. In January, President Trump signed phase one of an agreement
that encompasses the reduction of tariffs, the valuation of currency and the protection of intellectual property rights. A number of issues remain unresolved, including China’s corporate subsidies, however, AIADA views the headway made, and dialogue opened between the world’s two largest economies, as positive steps. Phase two is expected to get underway later this year. Efforts to reach a trade deal between the U.S. and the European Union were not as successful in 2019, but AIADA remains hopeful that negotiators will reach an agreement in 2020. New EU Trade Commissioner Phil Hogan met with U.S. government officials this month during a trip to Washington with the goal of “resetting the relationship” between the two trade blocs that had been disrupted by U.S. tariffs and European trade barriers to American agriculture. For auto dealers, a trade agreement would be a welcome opportunity to reduce tariffs on imports (the EU has a 10 percent tariff on American cars and trucks, the U.S. has a 25 percent tariff on European trucks) and benefit customers hunting for deals. Additionally, the U.S. had some success with Japan in 2019, signing limited deals in December that went into effect January 1st. However, the U.S.-Japan Trade Agreement and the U.S.-Japan Digital Trade Agreement did not address autos, and President Trump has not explicitly ruled out placing tariffs on Japanese auto imports. Further negotiations are expected this year to address the $67 billion U.S. trade deficit with Japan. Throughout all of these trade negotiations, there has been one common theme - Tariffs. President Trump views them as a useful tool to force our trading partners in line. While he has seen some success with this strategy, American businesses worry that the constant threat of tariffs is creating an environment of uncertainty that inhibits expansion and hiring. The auto industry, which depends so much on global trade, is particularly troubled by tariffs, and uniquely impacted by an inability to engage in long term production planning.
Dealers in 2019 were rightfully disturbed by the threat of 25 percent 232-Tariffs after the Department of Commerce identified autos and auto part imports as threats to our national security. This head-scratching report was never officially released to the public, and thanks in part to a vigorous defense raised by auto dealers at AIADA’s annual D.C. fly-in in the spring, it was put on hold, for now. In 2020 my successor, Honda dealer Jason Courter, will have his hands full continuing to push back against 232-Tariffs that could raise the price of cars by as much as $7,000 and threaten up to 700,000 American jobs. Over the past year I have had an up close and personal view of how much AIADA’s engaged and active membership does on behalf of the entire U.S. dealer body. When dealers work together, the results speak for themselves. It’s been a year of economic growth and remarkable advances in global trade and I am more confident than ever in our industry’s bright future. Serving as AIADA’s Chairman during such an eventful year has been a once-in a lifetime experience, and one that I will always treasure. It seems appropriate that our association will mark its 50th year amidst so much progress, and I am optimistic about what the future holds for us!
M O D E R N D E A L E R S H I P. C O M
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CUSTOMER REACHES OUT TO THE DEALERSHIP FOR FLOORMATS
WITH PANDO, IT DOESN'T MATTER WHO TAKES THE CALL - ANYONE CAN START THE PROCESS Just pull up the customer in Pando: Click on Customer Resolution. Confirm the vehicle. Set notification preferences. Click start.
AutoAlert.com/Pando
CUSTOMER RESOLUTION PROCESS
PANDO ALERTS THE PARTS DEPARTMENT
1
PARTS RECEIVES THE MATS
2
CUSTOMER IS NOTIFIED THAT THEIR REQUEST HAS STARTED
CUSTOMER IS NOTIFIED THAT THEIR MATS ARE AT THE PARTS COUNTER
Pando lets your parts department know they have a new order, keeping the customer in the loop via phone, text or email.
They also get an installation window where they can come in for a fast install.
CUSTOMER COMES IN FOR INSTALL
WE SEND OUT A CUSTOMER SATISFACTION SURVEY
The mats are ready to be installed. The customer is in and out in five minutes.
You have a happy customer. Now, they can tell others about your great service.
KEEP YOUR HAPPY CUSTOMERS HAPPY Bye bye lost sticky notes. Hello satisfied customers. Exceed expectations by taking care of requests quickly and keeping your customers in the loop.
CALL US TODAY
833.244.5720
S
LLEA PRESE U D NT KE I M
AFTER DARK AT THE
FEATURING
GET YOUR PASSES AT www.AutoAlert.com/NadaShow DATE Sunday, February 16
TIME 9 – Midnight
833-256-4931 | BOOTH 3365C |
LOCATION Las Vegas, NV