MSADA, One McKinley Square, Sixth Floor, Boston, MA 02109
auto M a s s a c h u s e t t s
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FIRST CLASS MAIL US POSTAGE PAID BOSTON, MA PERMIT NO. 216
February 2016 • Vol. 28 No. 2
The official publication of the Massachusetts State Automobile Dealers Association, Inc
ADAM CONNOLLY MSADA DealER of the Year
Ma s s a c h u s e t t s
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St a f f D ir e ct o ry Robert O’Koniewski, Esq. Executive Vice President rokoniewski@msada.org Jean Fabrizio Director of Administration jfabrizio@msada.org Peter Brennan, Esq. Staff Attorney pbrennan@msada.org Marta Argueta-Guerra Administrative Assistant/ Membership Coordinator mguerra@msada.org Auto Dealer MAgazine Robert O’Koniewski, Esq. Executive Editor Catherine MacDonald Editorial Coordinator macdonaldcs8@gmail.com Subscriptions provided annually to Massachusetts member dealers. All address changes should be submitted to: MSADA by e-mail: mguerra@msada.org Postmaster: Send address change to: One McKinley Square, Sixth Floor Boston, MA 02109 Auto Dealer is published by the Massachusetts State Automobile Dealers Association, Inc. to provide information about the Bay State auto retail industry and news of MSADA and its membership.
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The official publication of the Massachusetts State Automobile Dealers Association, Inc
Ta b l e o f C o n t e n t s
4 From the President: An Impact at All Levels 6 THE ROUNDUP: Department of Labor Investigations Return 9 LEGISLATIVE SCORECARD 10 TROUBLESHOOTNG: Dealing with the Disgruntled 11 LEGAL: Leave the Political Boxing Gloves at the Office Door 12 AUTO OUTLOOK 14 nada Market Beat 16 Cover Story: Dealer of the Year
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Ad Directory Blum Shapiro 28 Boston Herald 36 Ethos Group 2 Lynnway Auto Auction 30 Nancy Phillips 28 O’Connor & Drew, P.C. 35 Southern Auto Auction 31
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Economic Impact Report NEWS From Around the Horn LEGAL: Protecting Honda and Acura Dealers During the Airbag Recall Campaign nada update: Heading for Vegas
ADVERTISING RATES Inquire for multiple-insertion discounts or full Media Kit. E-mail jfabrizio@msada.org Quarter Page: $450 Half Page: $700 Full Page: $1,400
Back Cover: $1,800 Inside Front: $1,700 Inside Back: $1,600
Join us on Twitter at @MassAutoDealers www.msada.org Massachusetts Auto Dealer FEBRUARY 2016
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from the President
MSADA
An Impact at All Levels When we crunch the numbers, our industry’s importance is clear
By Scott Dube MSADA President
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s we leave the Presidents’ Day sales season behind and look ahead toward the warmer-weather sales season, I find myself thinking about how our accomplishments can be measured in so many differing ways. Take, for example, our TIME Dealer of the Year candidate Adam Connolly. We have put him forward in front of the entire country as the best representation of what we are about as Massachusetts dealers. As you’ll see in this month’s cover story, his record of community service and industry leadership is one we can all be proud of. His family’s efforts to raise funds for cancer research were inspired from their own personal experience -- something many of us fellow dealers relate to. And his work on Chevrolet’s local marketing association has reaped benefits across the entire franchise group -- which goes to show that in this industry there are many times when collaborating is better for all of our bottom lines. Adam’s recognition at the NADA Convention will be an exciting time not just for him, his family, and employees, but also for the entire Massachusetts dealer community. MSADA is always working diligently to inform the public that our dealer members are neighbors just as much as they are businesses. Getting an opportunity to see Adam on a national stage is a chance for all of us to feel proud of the work we do every day as a group. It’s a reminder that our work is part of the essential fabric that makes up Main Street America. We also have our 2015 Economic Impact Report, which you’ll also see presented in the magazine this month. You’ll see the numbers behind what we do sliced and diced in many ways, but here are a few things I want to highlight: • In 2014, new car dealerships directly and indirectly employed 50,778 people. • Total earnings for Massachusetts residents attributable to dealership operations were $2.95 billion. • Average dealership payroll expense (including fringe benefits) totaled $4.14 million. • Total state and local taxes collected or paid amounted to $541.8 million. • The total federal payroll taxes came to $436.8 million. I encourage you to use the report that we’ve prepared whenever you’re given an opportunity to tout our work -- whether it’s in front of a U.S. Senator, your local alderman, or a newspaper reporter. Too often our industry makes it into the headlines because we’re opposed to something. We need to make sure that we’re spreading awareness about why it matters when we collectively speak out. Our industry ranks among the most important in the Commonwealth, and this report is invaluable in that it shows the hard numbers that prove it. As we continue to do more than most to help drive our communities forward, let’s remember we’re able to show the effects in just about any way you can imagine. t
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Massachusetts Auto Dealer www.msada.org
Msada Board Barnstable County
Brad Tracy, Tracy Volkswagen
Berkshire County
Brian Bedard, Bedard Brothers Auto Sales
Bristol County
Richard Mastria, Mastria Auto Group
Essex County
William DeLuca III, Woodworth Motors John Hartman, Ira Motor Group
Franklin County
Jay Dillon, Dillon Chevrolet
Hampden County
Jeb Balise, Balise Auto Group
Hampshire County
Bryan Burke, Burke Chevrolet
Middlesex County
Chris Connolly, Jr., Herb Connolly Motors Scott Dube, Bill Dube Hyundai Frank Hanenberger, MetroWest Subaru
Norfolk County
Jack Madden, Jr., Jack Madden Ford Charles Tufankjian, Toyota Scion of Braintree
Plymouth County
Christine Alicandro, Marty’s Buick GMC Isuzu
Suffolk County
Robert Boch, Expressway Toyota
Worcester County
Steven Sewell, Westboro Mitsubishi Steve Salvadore, Salvadore Auto
Medium/Heavy-Duty Truck Dealer Director-at-Large [Open]
Immediate Past President James G. Boyle, Tuck’s Trucks
NADA Director
Don Sudbay, Jr., Sudbay Motors
Officers
President, Scott Dube Vice President, Chris Connolly, Jr. Treasurer, Jack Madden, Jr. Clerk, Charles Tufankjian
Associate Members
MSADA A ssociate M ember D irectory Albin, Randall & Bennett Barton D. Haag (207) 772-1981 American Fidelity Assurance Co. Dan Clements (616) 450-1871 American Tire Distributors Pamela LaFleur (774) 307-0707 AutoAlert Don Corinna (505) 304-3040 Auto Auction of New England Michelle Pierog (603) 437-5700 Auto/Mate Dealership Systems Troy Potter (877) 340-2677 Bank of America Merrill Lynch Dan Duda and Nancy Price (781) 534-8543 Bellavia Blatt Andron & Crossett, PC Leonard A. Bellavia, Esq (516) 873-3000 Blum Shapiro John D. Spatcher (860) 561-4000 Boston Globe Mary Kelly, Tom Drislane (617) 929-8373 Burns & Levinson LLP Paul Marshall Harris (617) 345-3854 Cars.com Heidi Allen (312) 601-5376 CDK Global Chris Wong (847) 407-3187 Construction Management & Builders, Inc. Sarah Macomber (781) 246-9400 CVR John Alviggi (267) 419-3261 Dealerdocx Brad Bass (978) 766-9000 Dealermine Inc. Carl Bowen Carl Bowen 401-742-1959 DealerTrack Ernest Lattimer (516) 547-2242 Downey & Company Paul McGovern (781) 849-3100 Ethos Group, Inc. Drew Spring (617) 694-9761 F & I Resources Jason Bayko (508) 624-4344 Federated Insurance Matt Johnson (606) 923-6350 First Citizens Federal Credit Union Joe Ender (508) 979-4728 Fisher & Phillips LLP John Donovan (404) 240-4236 Joe Ambash (617) 532-9320
Gulf State Financial Services Bob Lowery (713) 302-5547 GW Marketing Services Gordon Wisbach (781) 899-8509 Hireology Kevin Baumgart (773) 220-6035 Huntington National Bank John J. Marchand (781) 326-0823 John W. Furrh Associates Inc. Kristin Perkins (508) 824-4939 KEEPS Corporation Darcy Silver (718) 309-6133 Key Bank Mark Flibotte (617) 385-6232 KPA Rob Stansbury (484) 326-9765 Leader Auto Resources, Inc. Chuck August (518) 364-8723 Lynnway Auto Auction Jim Lamb (781) 596-8500 M & T Bank John Federici (508) 699-3576 Management Developers, Inc. Dale Boch (617) 312-2100 Micorp Dealer Services Frank Salkovitz (508) 832-9816 Mid-State Insurance Agency James Pietro (508) 791-5566 Mintz Levin Kurt Steinkrauss (617) 542-6000 Murtha Cullina Thomas Vangel (617) 457-4000 Nancy Phillips Associates, Inc. Nancy Phillips (603) 658-0004 Northeast Dealer Services Jim Schaffer (781) 255-6399 O’Connor & Drew, P.C. Kevin Carnes (617) 471-1120 Performance Management Group, Inc. Mark Puccio (508) 393-1400 PreOwned Auto Logistics Anthony Parente (877) 542-1955 ProActive Leadership Group Bill Napolitano (774) 254-0383 Quik Video Jack Gardner (617) 221-5502 R.L. Tennant Insurance Agency, Inc. Walter F. Tennant (617) 969-1300
Reflex Lighting Daryl Swanson (617) 269-4510 Resources Management Group J. Gregory Hoffman (800) 761-4546 Reynolds & Reynolds Marc Appel (413) 537-1336 Robinson Donovan Madden & Barry, P.C. James F. Martin, Esq. (413) 732-2301 Samet & Company John J. Czyzewski (617) 731-1222 Santander Richard Anderson (401) 432-0749 Schlossberg, LLC Michael O’Neil, Esq. (781) 848-5028 Sentry Insurance Company Eric Stiles (715) 346-7096 Shepherd & Goldstein Ron Masiello (508) 757-3311 Silverman Advisors, PC Scott Silverman (781) 591-2886 Solect Energy Development Kristen Brandt (781) 733-0223 Southern Auto Auction Tom Munson (860) 292-7500 Sprague Timothy Teevens (800) 828-9427 SunTrust Bank Michael Walsh (617) 345-6567 Taino Consulting Group Herby Duverné (617) 797-9316 Target Dealer Services Andrew Boli (508) 564-5050 TD Auto Finance BethAnn Durepo (603) 490-9615 TD Bank Michael M. Lefebvre (413) 748-8272 TrueCar Pat Watson (803) 360-6094 US Bank Vincent Gaglia (716) 649-0581 Wells Fargo Dealer Services Christopher Peck (508) 314-1283 Wicked Local Media Massachusetts Jay Pelland (508) 626-4334 Zurich American Insurance Company Steven Megee (774) 210-0092
www.msada.org Massachusetts Auto Dealer FEBRUARY 2016
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The Roundup
Department of Labor Investigations Return By Robert O’Koniewski, Esq. MSADA Executive Vice President Follow us on Twitter - @MassAutoDealers The U.S. Department of Labor is back. Since 2011 the DOL, through its Wage and Hour Division, has actively investigated Massachusetts dealerships regarding wage payments, job classifications, record keeping, and child labor. Over the last several weeks we heard from a handful of dealers who have received DOL audit letters requesting certain employee-related information, including the following: • Payroll records for each pay period for the period dating back two years to the present that show rates of pay, hours of work, gross earnings, and deductions for all workers during this period. • All time records which indicate hours worked each workday and totals for each work week for the period dating back two years to the present, for all workers. • A listing of workers for the period dating back two years to the present which includes names, addresses, job titles, hire dates and termination dates (if applicable), and the dates of birth for anybody under age 18 employed during this period of time. • A listing of all current salaried employees with job titles. • The federal EIN number and exact legal name. • Ownership or corporate officer information. • Gross annual sales figures for year-ending 12/31/2013, 12/31/2014 & 12/31/2015. To remind dealers of their obligations under federal law, which is the only law the U.S. DOL concerns itself with, we issued Bulletin #11, authored by attorney John Donovan of Fisher & Phillips, an MSADA associate member. (John can be reached by email at jdonovan@laborlawyers.com or by phone at (404) 240-4236.) FEBRUARY 2016
Massachusetts Auto Dealer www.msada.org
Compliance with the federal wage-hour law is complicated and is not something a dealership can “set and forget.” As wages change and duties change, so, too, do employees’ eligibility for exemptions. In addition, while the bulletin deals only with federal law, dealerships must also comply with their state wage-hour laws which are also complicated and sometimes conflicting. Remember, a federal investigator is only looking for violations of the federal law and will not say anything about violations of state law. So even if the investigator finds no violations of federal law, the dealership may still be at risk under state law. Your MSADA makes available several resources for dealers to use to improve their wage-hour compliance. The first is our Wage-Hour Guide, which one can obtain either in hard copy by contacting our office at (617) 451- 1051 or in electronic format through our website www.msada. org. Second, we maintain an employment law compliance program through Fisher & Phillips, in which dealers can access pay plan review, employment handbook/application review, and management training and general audit. Your MSADA will pick up a substantial portion of the charges for those services dealers seek to access. For more information on this compliance program, please contact our office at (617) 451-1051. Even though the federal DOL may be snooping around, it is never too late to get your employment law compliance in order. Our Massachusetts Attorney General also has strong capacity to investigate and enforce state wage-hour rules, which in many instances diverge greatly from the
MSADA federal standards. If you need additional information, including Bulletin #11, do not hesitate to contact us.
Are You Using Our Compliance Program Services? As we see with the U.S. DOL, every day state and federal regulators seek new ways to intrude into the business operations of our member dealers. In order to help protect you against these overreaches, in June 2014 your Association rolled out a new program designed to assist you in your compliance with employment laws (through the law firm of Fisher & Phillips, as described above) as well as occupational and environmental safety laws (through two vendors – John Furrh Associates and KPA). In 2015 we expanded this program to include sales tax compliance assessment services, and IT threat and security assessment reviews (through our accounting partner, O’Connor & Drew). We have re-authorized this program for 2016. Many of our member dealers have utilized these services, and continue to do so. Even if you have taken advantage of this program previously, you are still eligible for the subsidies in 2016. Should you have any questions, please do not hesitate to contact us.
New Program Supporting Dealers’ Outreach Most, if not all, of our member dealers financially support various charitable, social, athletic, and other non-profit related programs in their communities. When the Little League needs new uniforms, when the neighborhood hospital needs new ER equipment, when the local food pantry needs turkeys at holiday season – one of the first phone calls goes to a local franchise dealer. The contributions our members have made to their community groups is incalculable and the impact immeasurable. Recently your Association’s Board of Directors approved a program to enhance the value of your membership. In order
to assist our members in their local support activities, we are implementing the Dealer Community Outreach Assistance Program. Using the application form we sent, dealers can apply to the MSADA for financial support that the applicant dealer can use to supplement his or her dealership’s community giving. The maximum amount each dealer principal can apply for shall not exceed $1,000 in the aggregate in a calendar year. We at your Association value what you do every year to provide jobs and revenue to our local cities and towns, as well as to the Commonwealth. More importantly, what gets left unsaid, we value the positive impact you all make with your neighbors by providing the necessary funding to assist these charitable and non-profit groups in helping those who cannot help themselves. We thank you for that, and, as a token of our appreciation with our new community outreach program, we want to help you expand your “giving” footprint. Should you have any questions, please do not hesitate to contact me.
Used Vehicle Record Book Repeal On February 10 the Joint Committee on Transportation held a public hearing on House 3074, which would eliminate the requirement to maintain the used vehicle record book. Rep. John Rogers (D-Norwood) filed this bill on our behalf, and, as the legislator from the Auto Mile, he has been very supportive of our efforts to repeal this requirement. We have received positive responses from legislators on our proposal. The committee has not scheduled an executive session on the bills it heard that day.
UTI Roundtable – Tech Training On February 24 your MSADA participated in a roundtable discussion on improving technical and vocational training in Massachusetts, hosted by Universal Technical Institute at its Norwood campus. The event included participation by legislators, the Baker Administration,
franchise dealers, school administrators, and various employers. Jay Ash, Gov. Charlie Baker’s Secretary of Housing and Economic Development, delivered the keynote address. State Senator Michael Rush (D-West Roxbury) and Rep. John Rogers (D-Norwood) provided input on what may be able to be accomplished this year through the budgetary and legislative processes. The governor has prompted heightened discussion of these issues with the filing of a legislative package, House 3983, committed to narrowing the labor skills gap to meet employer needs and improving technical and vocational education programs at the high school and community college levels.
Survey – DMS Provider Charges, Vendor Recoupment Recently we have heard from dealers who have received letters from their software vendors that, as a result of the DMS providers’ charges on them, the vendors will be passing those extra charges on to their dealer customers. We currently are trying to determine the extent to which such a situation may be affecting our member dealers. We sent an email survey out to our members and have begun to receive good feedback. Your assistance in answering several survey questions would be helpful in our task: 1. Are you experiencing such a situation at your dealership? 2. Have you received any communications from your software vendors regarding new charges to you to recoup charges assessed by your DMS provider on them? 3. Have you requested verification from the vendor and the DMS provider that the new vendor charge in fact equates to the charge assessed by the DMS provider? 4. If you feel comfortable answering – which DMS provider do you use and which vendors have sent you letters regarding new recoupment charges? Use the email survey to respond or simply shoot me an email with your answers.
www.msada.org Massachusetts Auto Dealer FEBRUARY 2016
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The Roundup Your input is important for helping your Association to determine how to address such a matter.
MSADA Stair-Step Poll Recently we surveyed our dealer members for their views on manufacturers’ stair-step programs. This is an issue that dealers and OEMs discuss constantly, and the NADA Board has been active through the leadership of our NADA Director Don Sudbay in pushing manufacturers to address shortcomings with the programs, especially as they may impact adversely smaller dealerships. When asked in our survey about their manufacturers’ stair-step program, 46% of respondents were “totally opposed”, 26% were “mostly opposed”, 10% each were “somewhat in favor” or “very much in favor”, and 8% were “neutral”. On the question of “To which degree do you feel stair-step programs damage dealer credibility with customers?”, 59% said “very much”, 18% said “somewhat”, 13% said “not at all”, and 10% were “neutral”. This issue continues to receive attention throughout the country as manufacturers seem committed to their programs, regardless of their dealers’ input.
2016 Auto Tech Competition On February 6 MSADA hosted teams from ten technical high schools at Massachusetts Bay Community College for the hands-on portion of our annual automotive technician competition that decides the Massachusetts representative to the national contest. The January 16 written test winnowed down the contestants to the top two-person senior class teams from each school and the top four two-person junior teams from the whole group. Based on the hands-on testing, our first place senior winners were Jonathan Arruda and Justin Albernaz from Bristol-Plymouth Regional Technical High School. There instructor is Stephen Ribbe. They will travel to the national competition at the end of March at the New York Auto Show in NYC. The team will be tested on a Mazda3. FEBRUARY 2016
Thanks to the generous support of Rick Mastria and the Mastria Auto Group, Jonathan and Justin will have the opportunity to work on a Mazda3 from Rick’s dealership. We wish them the best of luck in the City So Nice They Named It Twice.
Reminder - NADA Work Force Study Open The fifth annual NADA/ATD 2016 Dealership Workforce Study (DWS) is now open. Your chance as a NADA/ATD member to participate ends on April 29. With the Dealership Workforce Study, NADA and ATD members have the opportunity to find out if they have the best tools to attract and retain the best employees in their markets. Whether it’s compensation, benefits, work schedules, or even the company culture, dealers need to fine-tune these to get it right. The DWS collects data on compensation, employee benefits, retention and turnover, as well as work schedules, and hours of operation, and reports these as well as demographic issues such as the gender and generational gaps in the dealership workforce. To enroll in the free survey, go to www. nadaworkforcestudy.com. Participants will need their member (company) ID. Call (800) 447-6232 or email WorkforceStudy@nada.org with any questions.
2016 Dues Invoices We have sent out 2016 dues invoices to all our dealership and associate members. Our members’ dues help fund the Association’s activities on their behalf, including our lobbying on Beacon Hill and in Washington, our member counsel services, our education and training activities, and other services. If you have not yet done so, please submit payment so that you can continue to enjoy access to our programs and services. With your continued support and membership renewal, we can build on our current foundation and begin to enhance your Association’s core purposes of communication, advocacy, and education.
Massachusetts Auto Dealer www.msada.org
Save the Dates: Annual Meeting – May 6, Boston Dealer Day on Beacon Hill – May 18, Boston Your Association will conduct this year’s Annual Meeting on Friday, May 6, at the Mandarin Oriental Hotel, in Boston. On May 18, we will hold our annual “Dealer Day on Beacon Hill” event in Boston. It is a great opportunity for dealers and their key managers to get involved in the legislative process. Be on the lookout for our invitation and registration materials.
Elections Do Matter In a classic example of how election results truly do matter, Republican Gov. Baker will have the unique opportunity in his first term of replacing a majority of the seven-member Supreme Judicial Court, the Commonwealth’s court of last resort. Three members recently announced their intentions to retire this year – justices Robert Cordy, Francis Spina, and Fernande Dufly. Additionally, justices Margot Botsford and Geraldine Hines will reach the mandatory retirement age of 70 before the end of Gov. Baker’s term. Gov. Baker has named a 12-member SJC Nominating Commission to recruit and screen applicants.
Imus was Right In the “You Cannot Make This Up” Category, Cape Cod state Senator Dan Wolf has the early lead for the 2016 award. Wolf is the Senate chairman of the Joint Committee on Labor and Workforce Development. He is also the founder of Cape Air, which operates out of Logan Airport. During testimony before his committee on legislation that would boost the minimum wage for workers at Logan Airport to $15 per hour, a scheme he strongly supports, the senator admitted that his company could not afford to pay such a high minimum wage. Apparently, what’s good for the goose is not necessarily good for the gander. t
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www.msada.org Massachusetts Auto Dealer FEBRUARY 2016
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Troubleshooting
MSADA MSADA
Dealing with the Disgruntled By Peter Brennan, Esq.
MSADA Staff Attorney Every year, fairly or unfairly, car dealers rank near the top of the national list of business that receive the most consumer complaints. It is impossible to make everyone happy all the time, and often dealers suffer the brunt of customer frustration even when they are not the cause of the problem. When a customer raises a complaint against the dealership, how the complaint is initially handled is often the difference between a resolution of the dispute or an escalation. The dealership should assign one or two employees to deal with customer complaints, so that when one arises the resolution process can begin immediately. The best time to prevent an escalation of the complaint is immediately after the customer has registered his or her complaint with the dealership. In addition to appointing employees to deal with complaints, the dealership should establish a written policy for handling customer complaints that is adhered to by all dealership employees. As part of this policy, dealership employees should be required to keep accurate records of all complaints and all interactions with the customer during the complaint process. While the purpose of the policy is dispute resolution, accurate and detailed recordkeeping procedures will benefit the dealership and their counsel if the complaint results in litigation. If necessary, consult an attorney to help your dealership develop a legally sound policy. FEBRUARY 2016
If a dispute escalates, it is generally because the customer was not satisfied by the dealership’s initial reaction to the complaint. If a customer is not satisfied by the dealership’s response to his or her complaint, then their next action is going to be an angry social media post or a phone call to their attorney. Occasionally, a disgruntled customer will take to the internet with an angry post on social media before they even bother to file a complaint with the dealership directly. Once the dealership is alerted to the post, the designated employee should immediately contact the customer and see if they can diffuse the situation. The initial contact should include an acknowledgment of the complaint and an invitation for the customer to contact the dealership to discuss the customer’s experience and work towards a resolution. While it might seem like ignoring the post could diffuse the situation by keeping the fuel from the fire, this is rarely the case. The disgruntled customer will likely use the lack of response to build their case against the dealership in the court of public opinion, which could have a snowball effect if other customers come out of the woodwork to air their own grievances. The initial response should be succinct, and the following would work in most situations: “I am sorry to hear about your recent experience at XXX Motors. Please contact me at the following number at your earliest convenience to discuss…”. A dealership should never engage in a debate on the merits of the complaint in an online forum. Of course, some people can’t be reasoned with and would rather trash a business online than work with the business towards a resolution of their complaint. I’m sure that you encounter such people on social media every day. Even if the complaint is demonstrably meritless, and can be proved meritless by the dealership, the website that hosts the online
Massachusetts Auto Dealer www.msada.org
forum where the complaint is posted is unlikely to do anything that might stifle the “free speech” of its users. Generally, a cease and desist letter directed towards the website will be ignored or, worse, posted by the host as proof that the complaint must have merit. When a dealership’s complaint resolution process fails to achieve the desired result, more aggressive measures may be considered. One option is a cease and desist letter aimed at the disgruntled customer personally. If taking this route, the likely threatened cause of action would be for defamation and the associated damages. Dealerships should avoid threatening an injunction or anything that could be seen as limiting towards the customer’s free speech. Defamation is commonly defined in the law as any intentional false communication, either written or spoken, that harms a person’s reputation; decreases the respect, regard, or confidence in which a person is held; or induces disparaging, hostile, or disagreeable opinions or feelings against a person in the eyes of the community. Notable here is that the customer’s communication must be intentionally false. If the disgruntled customer’s complaint is rooted in truth, then any action for defamation will not succeed. Always remember: Massachusetts has some of the most consumer-friendly laws in the country. When a customer dispute arises, avoiding litigation is frequently the most cost effective strategy. t
If you require any additional information on documentary preparation fees, please contact Robert O’Koniewski, MSADA Executive Vice President, rokoniewski@msada.org or Peter Brennan, MSADA Staff Attorney, pbrennan@msada. org or by phone at (617) 451-1051.
MSADA
Legal
By Joseph W. Ambash and Jeffrey A. Fritz
Leave the Political Boxing Gloves at the Office Door We love a good political fight in Massachusetts, where politics is sport. With the “knock ‘em down, drag ‘em out” tone of this year’s presidential primary, we might be tempted to join the fray and throw some rhetorical jabs of our own as the March 1 primary approaches. But we would be welladvised to check the gloves at the office door and instead heed the wisdom offered long ago by Massachusetts favorite son Calvin Coolidge: “No man ever listened himself out of a job.” Political speech in the workplace is not without its risks. Indeed, mixing work and politics can be a very bad career move – not to mention downright dangerous. A CareerBuilder poll of 7,000 full-time workers found that nearly a quarter of politically-charged confrontations either end up in bad feelings among coworkers or even physical fights. No wonder the Society for Human Resource Management reports about 25 percent of employers have written policies proscribing political activities such as party organizing, soliciting campaign donations, posting political signs, or holding rallies in common areas. Others frown on employees wearing attire festooned with political buttons or slogans. Still others prohibit workers from using company-sponsored social media to canvass for their favorite causes or candidates. When keeping a lid on office politicking, it is important for dealers, managers, and HR personnel to know the law. It is a myth that Massachusetts employees have a constitutional right to free speech on the job, but whatever bars exist must be clearly articulated and consistently enforced. (If you happen to own any dealerships in Connecticut, you should know that, contrary to Massachusetts and most other states, Connecticut law prohibits an employer from disciplining or discharging an employee on account of the exercise of his or her First Amendment rights, provided such activity does not substantially or materially in-
terfere with the employee’s bona fide job performance or the working relationship between the employee and employer.) The First Amendment’s free speech protections do not extend to the private workplace in Massachusetts. Certain professional, “non-political,” public employees such as police officers, firefighters, and teachers do enjoy long-standing First Amendment protections against being demoted or terminated for supporting political causes or candidates. But for everyone else in the private sector in Massachusetts, showing up for work wearing a Donald Trump “Make America Great Again!” baseball cap or a Bernie Sanders “Enough BS! It’s Time for B.S.!” T-shirt could elicit that familiar “You’re Fired!” response from the employer. And the law would be on the employer’s side; contrary to popular belief, employers in Massachusetts can discipline employees for such things. One exception to this general rule, however, is political activity aimed at improving workplace conditions or wages – even among non-union employees. Here, the National Labor Relations Act gives all workers the right to engage in “concerted activities” for their “mutual aid or protection.” An example might be workplace politicking to support a candidate’s vow to raise the minimum wage or bar immigrant workers thought to suppress those wages -- any political speech where a direct connection exists between “terms and conditions of employment” and the subject of the campaign. While the distinction between such speech and general political speech may, at times, be blurry, employers need to know it exists, or run the risk of an NLRA charge. Even where employers choose to permit political discussion and campaigning, they should be mindful that discussing politics cannot be an excuse to harass or bully other employees. Workplace anti-harassment rules should always be kept in mind. www.msada.org
Moreover, political speech concerning a candidate’s race, religion, gender, age, or any other “protected status” may result in an increased risk of a discrimination and/or retaliation claim. Consider a manager, for example, who says, in front of his or her subordinates, that a particular candidate is too old to be President. An older employee whose employment thereafter is terminated, or who experiences some other adverse employment action, may try to support an age discrimination using such remarks, arguing they show bias on the part of the manager against older employees. Finally, please remember that, under Massachusetts law, retail employers, including your dealership, must allow their employees time off for up to two hours after the polls open in their precinct, ward, or town, if the employee requests it. Of course, employers are not required to pay their employees for such time off. Elections are times of high passions and, in a democracy, mostly healthy ones. We can all hope that, even where the law is silent, cooler heads will prevail around the office watercooler as colleagues remember to treat one another with consideration and respect – no matter how much passion we have for, or against, a party or candidate. t
Joe Ambash is the Managing Partner and Jeff Fritz is counsel at Fisher & Phillips, LLP, a national labor and employment firm representing hundreds of dealerships in Massachusetts and nationally. They may be reached at (617) 722-0044.
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AUTO OUTLOOK
FEBRUARY 2016
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NADA Market Beat JANUARY 2016
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M It’s been a roaring start to the new year. Despite recent snowstorms, new-vehicle sales hit a 17.5 million SAAR in January. We are pleasantly surprised by the sales pace, since such blizzards—as well as the man-made storm engulfing equities markets—would usually temper sales. But consumers seem to have taken this all in stride, with consumer confidence remaining steady. This continues to feed into new-vehicle sales. Light trucks continued to trounce cars, and the spillover effects are starting to weight on car residuals and trade-in values—but that too has not dampened demand. We are still concerned about maintaining this sales pace, particularly in the longer term. But for now let us all enjoy a great start to 2016.
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Cover Story MSADA
DEALER OF THE YEAR
Shifting the Balance
Massachusetts Dealer of the Year Adam Connolly won’t settle for business as usual
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Massachusetts Auto Dealer www.msada.org
By Tom Nash The Connolly family will mark 100 years in the Massachusetts automobile dealership business in 2018. Few businesses survive a century, and even fewer remain in the hands of the families that start them. For Adam Connolly, who has helped drive Herb Connolly Auto Group for nearly a quartercentury, the thrill of seeing new models come in remains as strong as it did when he couldn’t see
MSADA “We believe we’ve set a good example of how we all need to take care of our environment for our children and for generations to come.” – Adam Connolly
over the steering wheel. “After 22 years and counting, I’m still enjoying the business as much as I did when I was a young man,” Connolly says. “I was a car nut from the start, and I was always infatuated with the business.” In those decades, the Connolly family has kept business personal, which means the course of both his grandfather and mother’s battles with cancer
have left lasting impacts. The Connolly family’s work to raise funds for cancer research spanning decades, combined with Adam’s passion for the business and willingness to look out for other dealers, made him an easy pick for MSADA’s Massachusetts Dealer of the Year recognition. He’ll appear in Las Vegas in March as a nominee for NADA’s national TIME Dealer of the Year award. “NADA is a great organization, just like our MSADA. It’s so important to be active and involved with them,” Connolly says. “To be recognized among my peers is an honor.”
Building the Future Connolly graduated from Belmont High School in 1990 before taking off for California. He studied business administration at the University of San Diego, but he cut his college career short when he returned to Massachusetts at age 20 to run the his grandfather Herb’s Buick dealership. “I started sweeping floors at my grandfather’s shop as a young boy part time after school and during school vacations and summer breaks, eventually advancing through all departments,” he says. When his grandfather’s cancer returned after years in remission, Connolly came home to take over. With the business skipping a generation from grandfather to grandson, Connolly worked at his grandfather’s side for three years before his passing in 1995. Connolly found himself helming the dealership for the first time. Connolly kept the store until 1997, when he sold the Buick franchise and opened Herb Connolly Chevrolet. Today, he also serves as President of Herb Connolly Hyundai, while his brother Chris runs Herb Connolly Acura. Their brothers Doug and Brendan work alongside them in the business as well. www.msada.org
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Dealer of the Year Adam Connolly takes special pride in the eco-friendly business model that he has established at the Chevrolet store. He has incorporated a solar charging car port for the Chevrolet Volt and solar panels to power the dealership. “We believe we’ve set a good example of how we all need to take care of our environment for our children and for generations to come,” he says. Connolly has also spearheaded innovations in retail automotive marketing and advertising while leading the Boston/Manchester Chevrolet Local Marketing Association, which he says remains one of his most rewarding endeavors. “I was able to shift a balance of traditional group spending to one of the highest groups in the country in digital spending,” he says. “All of this led to my group of dealers having the highest market share increase of any local marketing association in the entire country. This is very rewarding to me as it not only positively impacted my store but the 37 other local Chevrolet stores and their owners, employees, and families.”
Giving Back An advocate for cancer-related charities and causes, Connolly has firsthand insight into the toll the disease takes on a family, having lost his grandfather to cancer and his mother to breast cancer. He established the Kathleen D. Connolly Memorial Scholarship in memory of his mother, who succumbed to the disease in 2008. It’s awarded to a Framingham High School senior who is pursuing a four-year college degree. He has also sponsored an annual golf tournament to raise money for the Mount Auburn Hospital’s Hoffman Breast Center in Cambridge, Massachusetts, where his mother was treated.
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MSADA “We all have been touched or known someone with cancer,” Connolly says. “To have a larger than life role model, and watch how that disease dibelitates them, it’s something you never forget.” Connolly also donates to the Jimmy Fund, the Hyundai Hope on Wheels campaign, the American Cancer Society, and St. Jude Children’s Research Hospital. In addition, he lends his time to
the Friends of the Framingham Library, New England Wildflower Society, and the Masonic Angel Fund. Aside from the day-to-day of the business and charity work, Connolly says staying an active part of MSADA remains at the core of the Herb Connolly Auto Group DNA. Staying involved at a community level and state level keeps the business ahead when times are good or bad. “We have a strong desire to always be better, do better,” Connolly says. “If we can do that, I believe and my brothers believe we will have a better business, which will be a better envrionment for our employees and our customers.” t
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Sponsored By
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NEWS from Around the Horn from Around
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CHICOPEE
Mercedes Dealership Planned for Former Hotel Lot Dealership owner Peter Wirth joined Mayor Richard J. Kos and City Council President John Vieau this month to announce plans for a $11.8 million Mercedes-Benz store on the site of the former Plantation Inn. Kos said this was a deal in the works for the last year, and that he expects it to make a positive economic impact on the community. “It will be almost a $12 million a year investment in the removal and creation of a new building. Initially, (it will bring) over 35 jobs for the area,” Kos told 22 WWLP. Wirth plans to build a 35,000 to 38,000 square-foot building on the property. Chicopee residents told the network they approve of the plans.
DANVERS
Brian Kelly Featured in The Boston Herald The Kelly family’s five decades in the auto industry got some ink from The Boston Herald this month, featuring Brian Kelly reminiscing on his early days in the business and why Kelly dealerships stand out today. “People still want a smile and a handshake from someone who’s going to be able to help them buy the car that’s right for them,” Kelly told the paper. The full story is available at www.bostonherald.com.
“If it’s going to help the city by getting rid of something that’s eventually going to become an eyesore, why not put something that could help the city financially, with bringing people in who want expensive cars off the Pike?” Emily Linzi of Chicopee said. The former Shine Inn, built in 1960, had at one time been one of western Massachusetts’ premier hotels. It will soon be demolished to make way for the dealership. Having the Mercedes-Benz dealership in Chicopee will fill a void in the local car market. The only Mercedes-Benz dealership in the area, Lewbar Imports in West Springfield, closed nearly 10 years ago, leaving local residents to have to travel to Hartford or the Worcester area to buy a new Mercedes. The site of the former Lewbar Imports is becoming a new Balise Kia dealership. FRAMINGHAM
Herb Chambers Turns Corner in Push for New Dealership Herb Chambers appeared before the Framingham Planning Board in February to defend the $10 million Mercedes-Benz body shop and showroom he wants to build on Bishop Street.
Board members previously railed against the project, saying the project doesn’t fit in with the efforts underway to revitalize downtown. With Chambers, one of the state’s most prominent auto dealers, wanting to invest here, many residents of the neighborhood urged the Planning Board not to waste an economic opportunity. Beau Wing, a resident and longtime Southside businessman, spoke of the automobile legacy there started by General Motors and Adesa that Chambers could carry on. “We need good neighbors and good neighbors are very hard to find right now and, yeah, I understand the objection to the whole car thing,” Wing said. “Like it or not, South Framingham is good with cars and has been for my entire life.” Wing said the facility would be an anchor and good for the neighborhood, since Chambers is known to have more lights at his facilities than all of Gillette Stadium. “That is going to drive the crime away from that area,” Wing said. “If you reject this, you’re going to reject a jewel,” Town Meeting member Jim Rizoli told the board, echoing what many other neighbors said. continued on next page
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NEWS from Around the Horn from previous page The board continued its review of the project to March 10 and planned to bring in its own traffic expert and licensed site professional for input. OAKS BLUFF
Ernie Boch Donates Cash, Instruments to Local YMCA Ernie Boch Jr., president and CEO of Subaru of New England, visited Alex’s Place Teen Center at the YMCA in Oak Bluffs in February to present a $6,000 check and a dozen acoustic and electric guitars valued at more than $3,000. The teen center was the beneficiary of a grant from “Music Drives Us,” a nonprofit foundation Boch created to support “innovators who strive to preserve and produce musical opportunities for all communities throughout New England.” The money will be used for the YMCA Teen Center’s Adrenaline Music Project, a program for teens between the ages of 13 and 18 interested in pursuing music. “We were really excited because we’ve applied for the grant for a few years now, and we finally received it, which is great,” YMCA Director of Mission Advancement Sarah Soushek said. “It’s really nice to have him invest in an Island program that’s aligned with his passion of providing music education for children.” BOSTON
Automotive News Profiles Bernie Moreno Former Herb Chambers employee Bernie Moreno has acquired 18 dealerships across the country since going into business for himself 10 years ago. An Automotive News profile published in February highlights Moreno’s career and future plans. Moreno owns dealerships in Massachusetts, Ohio, and Kentucky, and tells the magazine he’s looking to expand “anywhere between Miami and Boston, if it makes sense.” The full profile is available at www.automotivenews.com. FEBRUARY 2016
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MSADA ASHLAND
MSADA Holds National Auto Tech Competition Semifinals High school students from across the Commonwealth converged on Massachusetts Bay Community College in Ashland on February 6 to compete in the state finals to determine the Massachusetts team that will compete at the National Automotive Tech Competition next month at the New York International Auto Show. The competition included a written exam and hands-on portion that tested students on their troubleshooting skills, with BristolPlymouth Regional Tech students Jonathan Arruda and Justin Albernaz taking the top prize. (pictured at right) Their instructor is Stephen Ribbe. Albernaz and Arruda will compete in the national finals in March at the Jacob Javits
Top Juniors Team
Second Place Seniors Team
Convention Center in New York City against teams from across the country. MSADA helps fund the competition and sponsors the Massachusetts team competing in NYC. The final standings from the MassBay competition were: 1st Place: Bristol-Plymouth Regional Tech, Jonathan Arruda and Justin Albernaz 2nd Place: Blackstone Valley Tech, Daniel Rice and Matthew Braz 3rd Place: Assabet Regional Tech, Derek Jewell and Meghen O’Connell Written exam top score: Jonathan Arruda Top Juniors team: Blackstone Valley Tech, Bailey Martin and Michael Egan The competition began on January 16 with a written exam that determined the top team for the schools involved.
Third Place Seniors Team
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NEWS from Around the Horn HINGHAM
Best Chevrolet Promotes Heart Disease Awareness Best Chevrolet donated $10 for every new car sold and $1 for every oil change performed in February to raise awareness about heart disease. This marks the first year the dealership has “gone red” to support the American Heart Association’s Go Red for Women Red Dress campaign, Amanda Cease, manager of charitable giving, told Edmunds. Besides the donations, the dealership offered literature to its customers and staff to educate them about the number-one killer of women. The dealership invested in local newspaper advertising touting its involvement, altered its sales team’s wardrobe to red polo shirts, and decorated the showroom with red balloons. “We’ve had a steady flow of customers mention their appreciation for the cause, and some have even had personal stories of the effect heart disease has had on their family or friends,” Cease said. Cease expected to raise more than $1,000 but won’t know
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the exact number until mid-March after all of the oil-change numbers are calculated. “While promotions like these may not directly sell cars, we do believe that our continued commitment to giving back to this community is appreciated,” Cease said. “We believe it makes people want to buy from us, that it makes people loyal to servicing their car here, because we do right by them and those around them.”
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MSADA NATICK
MetroWest Subaru Announces Renovation Project A newly launched renovation project will add 18,590 square-feet to MetroWest Subaru, the dealership announced in February. The project includes an extensive reworking of the existing dealership and the construction of a two-floor, 5,000-square-foot addition. Renovations to the existing space include reworking the current office layout to accommodate more work areas and relocating the Subaru Tower to the entry of the new addition. Ceramic flooring and updated ceiling tiles will be installed throughout. Designed to increase existing showroom space and provide a delivery area for newly purchased vehicles, the addition also features a second floor comprised of a conference room and multiple large offices with a second-story catwalk running above the showroom providing additional space. The project is expected to be complete in the Fall.
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Legal
By Sara Decatur Judge and Paul Marshall Harris
MSADA
Protecting Honda and Acura Dealers During the Airbag Recall Campaign
On January 29, 2016, American Honda Motor Company (“Honda”) issued a stopsale order to its Honda and Acura dealers and informed its dealership body of an upcoming recall campaign to repair and replace approximately 2.23 million defective Takata airbag inflators. This article summarizes the status of the recall and discusses some of the issues that Honda dealers face with the recall. The situation for Honda dealers is currently in flux, as Honda has revised its procedures for its dealers several times over the last month and more directives from Honda can be expected in the upcoming weeks. Honda plans on replacing all of the recalled inflators with new parts from an alternate supplier at no cost to owners of the recalled vehicles. Unfortunately, due to the large volume of new inflators needed to repair vehicles, the necessary replacement parts will not be available until Summer 2016. Honda has told some Massachusetts dealers that they should not expect replacement parts until September 2016. The stop-sale order requires Honda and Acura dealers to take immediate steps to remove recalled vehicles from their sales inventory. Federal law requires the manufacturer to buy back any new vehicle that is subject to a safety recall at the price paid by the dealer, plus transportation charges and “reasonable reimbursement of at least one percent a month of the price paid prorated from the date of notice of the defect to the date of the repurchase.” See 49 U.S.C. § 30116. Federal law prohibits dealers from selling any new vehicle that is subject to a stop-sale order, but presently there is no statutory counterpart prohibiting the sale of used vehicles that are subject to a stop-sale. The manufacturer is not required to buy back any used vehicle subject to the recall. Honda has issued mandates for its dealers which exceed the
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federal law. Honda has prohibited its dealers from selling any new or used vehicle that is subject to the stop-sale. Honda has warned that it will hold dealers responsible for any liability claims stemming from the improper sale of a recalled vehicle prior to repair. While Honda’s attempts to unilaterally pass a product liability claim on to a dealer may be legally questionable, no dealer wants to spend the money fighting Honda on this issue while also defending against a product liability claim without the manufacturer’s assistance. Dealers should check and double check vehicle VIN numbers to make sure that no recalled vehicles are being advertised or sold. Dealers should implement systems to make sure the VIN numbers on trade-in vehicles are also checked. Dealers are required to arrange for rental or loaner vehicles for customers who do not want to drive their vehicles while waiting for repairs. These rentals are paid for by the dealers, with the cost later reimbursed by Honda only after repairs have been made. Honda also wants dealers to assist the company in getting recalled vehicles off the road. Honda has told its dealers to keep and store all recalled vehicles at the dealership pending its repair. If a customer refuses to leave its recalled vehicle at the dealership, Honda wants the dealer to get the customer to sign a “Vehicle Retention/Storage Owner Indemnification Agreement,” under which the customer would be responsible for the vehicle if injuries occur. Honda has told some dealers that they should not give the recalled vehicle back to the customer if the indemnification agreement is not signed. However, neither Honda nor a dealer has any right to keep the vehicle without the customer’s permission based solely upon the customer’s refusal to sign the agreement. So, what should a dealer do when a
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customer refuses to sign Honda’s indemnification agreement? A dealer should still provide the customer with a rental or loaner vehicle under Honda’s program, but the dealer should immediately advise its Honda representative in writing if a customer refuses to sign the agreement. The dealership should have the customer speak with a manager, who should explain the importance of the recall, the scope of the defect and the danger in driving the vehicle prior to repair. If the customer insists on retaining possession of the vehicle pending repairs, the dealership’s manager should maintain a written log that details the conversation (date, time, what was said) so that the dealership has a written record of the transaction if Honda later tries to hold the dealership responsible for failing to take a vehicle off the road. Massive recalls cause major headaches. We urge our clients to hold management meetings to make sure that all departments understand the manufacturer’s programs, requirements and mandates, as communication within the dealership can reduce issues down the road.
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Attorneys Sara Decatur Judge and Paul Marshall Harris are partners in the Automotive group at Burns & Levinson LLP in Boston, Massachusetts. If you have questions about dealership compliance issues, please contact us. Sara Decatur Judge; sjudge@burnslev. com; (617) 345-3211. Paul Marshall Harris; pharris@burnslev.com; (617) 345-3854.
NADA Update
By Don Sudbay
Heading for Vegas Don Sudbay, President of Sudbay Automotive Group, represents MSADA members on the NADA Board of Directors. He welcomes your
questions
and
concerns
(donsudbayjr@sudbay.com). With Presidents’ Day sales now behind us, I encourage you to take another look at this year’s NADA Convention in Las Vegas if you’ve previously thought you wouldn’t be able to go. We’re all busy, but if there’s any way to squeeze it into your schedule I highly recommend making the trip at least once. This year’s convention promises to be memorable, with the addition of Peyton Manning to the lineup and our own Adam Connolly being recognized as a Dealer of the Year nominee. And there’s the MSADA-O’Connor & Drew cocktail party Saturday night at the Encore Hotel. If you have any questions about registration or the event, please don’t hestitate to reach out before the registration deadline comes in March. I look forward to seeing you there. Also note below that there are several windows when it would a great time to invite your congressional representative to your dealership. Doing so is a great way to show our delegation how important our industry is to the Commonwealth. If you need any guidance, please reach out to either me or MSADA Executive Vice President Robert O’Koniewski. We’re always here to help.
Peyton Manning to Speak at NADA Convention in Las Vegas Peyton Manning, who became the first NFL quarterback in history to win a Super Bowl championship with two different teams, will deliver remarks at the 2016 NADA Convention and Expo in Las Vegas, which will run March 31 – April 3. He led the Denver Broncos to a 24-10 win against the Carolina Panthers in Super Bowl 50. Manning is a five-time NFL Most Valuable Player whose career spans 18 years, and he is the first to win 200 games as an NFL starting quarterback. Other speakers include 2015 NADA Chairman Bill Fox; 2016 NADA Chairman Jeff Carlson; Mike Allen, Politico’s chief White House correspondent, will moderate a discussion with Karl Rove, former White House deputy chief of staff and senior advisor to President George W. Bush, and Howard Dean, former governor of Vermont and former chairman of the Democratic National Committee; and comedian Jeff Foxworthy.
The four-day NADA Convention includes dealer-manufacturer franchise meetings, hundreds of workshop sessions for dealers and their managers, more than 600 exhibitors on the expo floor, and numerous networking events. The American Truck Dealers (ATD) Convention and Expo runs concurrently with the NADA convention. The deadline for NADA member dealers and their managers to receive the advance registration discount of $75 is March 25. For more information or to register, visit www. nadaconvention.org.
Automakers Post Best Sales in a Decade Automakers reported the strongest U.S. January sales in a decade, topping analysts’ estimates and showing that even thigh-deep snow couldn’t cool Americans’ demand for new trucks and sport utility vehicles. General Motors Co., Fiat Chrysler Automobiles NV, and Nissan Motor Co. reported surprise sales gains instead of the predicted declines, while drops at Ford Motor Co., Toyota Motor Corp., and Honda Motor Co. were narrower than projected. The industry’s annual sales rate was 17.6 million, the highest January since 2006, researcher Autodata Corp. calculated. The uneven nature of January’s results -- some up, some down -- reinforced investors’ concerns that sales may be near a peak, and automakers’ shares fell. Industry executives and analysts took a more positive read, bolstering their forecasts that 2016 will be a record year, a bright spot amid an unsettled U.S. economic outlook and dour markets in recent months.
Invite a Member of Congress to Your Dealership This Year With Election Day nine months away and several legislative issues unresolved, including preserving dealer-assisted financing, tax reform, and recall legislation, now is the time for franchised auto dealers to engage with their elected officials and ask them to support small business dealerships and their employees. Visits with legislators at home – whether at the dealership or at their district offices – are a valuable tool to support NADA’s legislative efforts on Capitol Hill. “When elected officials visit a dealership and learn how the business operates, they become better informed about how their decisions in Washington, D.C., affect small businesses back home,” said Patrick Calpin, director of grassroots advocacy for the National Automobile Dealers Association. “NADA’s legislative efforts on Capitol Hill will not succeed without active dealer participation, including meeting with legislators, back in the states.” With the Democratic and Republican national conventions
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NADA Update in the summer leading up to November’s national elections, Members of Congress will be working in Washington for only about 115 days. Congressional recesses are often the perfect time to host a Member of Congress or senator at the dealership. Here is the 2016 schedule of upcoming House and Senate recesses: March 28 - April 1 May 2 - 6 May 30 - June 3 July 18 - September 2 October 10 - November 11 November 21 - 25 December 19 - 23 To assist dealers in educating members on issues affecting dealers, NADA has published a quick reference guide, “3 Easy Steps to Making the Grassroots Connection,” which provides simple and easy instructions on how to get started. If you are interested in hosting a member of Congress at your dealership, visit www.nada.org/grassroots or contact Patrick Calpin, NADA director of grassroots advocacy, at (202) 547-5500.
“Safe Cars Save Lives” Campaign Announced NADA President Peter Welch issued the following statement in response to the National Highway Transportation Safety Administration (NHTSA)’s announcement of a new public awareness campaign called “Safe Cars Save Lives” that urges consumers to check for open recalls at least twice a year and to get their vehicles fixed as soon as parts are available: “NADA fully supports smart strategies aimed at expanding how owners and operators are reminded that they have or may have vehicles with outstanding safety recalls, and NHTSA and Administrator Rosekind should be commended for this effort to increase the recall completion rate by raising awareness among the public about the importance of responding to manufacturer and dealer notices about an open recalls on their vehicles.” NADA, which supports a 100-percent recall completion rate, urged NHTSA to consider launching such a public awareness campaign - similar to the effective “Click it or Ticket” ad campaign - during the April 28, 2015, NHTSA Workshop entitled “Retooling Recalls: Getting to 100% Completion.” In a May 29, 2015, follow-up letter to Rosekind, NADA wrote: “NADA encourages NHTSA to capitalize on its excellent track record for effective public communications by engaging in a comprehensive and sustained awareness campaign
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MSADA stressing the importance of recall remedy participation. Thanks to NHTSA, ‘Click it or Ticket’ and ‘Don’t Drink and Drive’ are iconic slogans ingrained in our national lexicon. By using solid research indicating why owners and operators don’t get their vehicles fixed, NHTSA can target a campaign with various means of communications. Whether it’s the crash test dummies suggesting, ‘we’re the dummies, you need to get your car fixed’ or some other strategy, NADA is confident that NSTHA has the communications expertise to get the motoring public’s attention, to promote the VINlookup tool, and to enhance recall campaign effectiveness.”
2016 Truck Dealer of the Year Nominees Announced The American Truck Dealers (ATD), Heavy Duty Trucking magazine, and Procede Software announced the nominees for the 2016 Truck Dealer of the Year award. The five nominees are: • Tom Bertolino, vice president of NorCal Kenworth, with locations in California; • Jerry Kocan, dealer principal of Four Star Freightliner, with locations in Alabama, Florida, and Georgia; • Ron Meyering, president and dealer principal of M&K Truck Centers, with locations in Illinois, Indiana, and Michigan; • Tom Noerr, co-owner and vice president of Noerr’s International, with locations in Pennsylvania; and • Dennis Thompson, chairman and CEO of Thompson Truck & Trailer,Inc., with locations in Illinois and Iowa. Nominees for the national award will be evaluated by a panel of professors from Indiana University’s Kelley School of Business on dealership performance, industry leadership, and civic contributions. The nominees were selected by state, metro, and national association leaders. The winner and runner-up will be announced during the 53rd annual ATD Convention & Expo in Las Vegas, which runs from Thursday, March 31, through Sunday, April 3. ATD convention speakers include Bob Costello, chief economist and vice president of American Trucking Associations, on Thursday, March 31, and Eric Maddox, American patriot and military veteran on Saturday, April 2. Truck dealers will also have the opportunity to meet faceto-face with their manufacturer executives at 11 make meetings and shop the expo floor in the ATD Zone with ATD Exhibitors. The ATD headquarters hotel is the Encore. The four-day event will be held in conjunction with the NADA Convention & Expo at the Las Vegas Convention Center. ATD attendees are encouraged to attend the NADA workshops and general speaker sessions.
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TRUCK CORNER American Truck Dealers Move the Industry Forward
By Eric K. Jorgensen
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