MSADA, One McKinley Square, Sixth Floor, Boston, MA 02109
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FIRST CLASS MAIL US POSTAGE PAID BOSTON, MA PERMIT NO. 216
March 2017 • Vol. 29 No. 3
The official publication of the Massachusetts State Automobile Dealers Association, Inc
Bringing It Home
Ma s s a c h u s e t t s
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S ta f f D i r e c t o r y 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 Jorge Bernal Administrative Assistant/ Membership Coordinator jbernal@msada.org Auto Dealer MAgazine Robert O’Koniewski, Esq. Executive Editor Tom Nash Editorial Coordinator nashtc@gmail.com Subscriptions provided annually to Massachusetts member dealers. All address changes should be submitted to MSADA by e-mail: jbernal@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.
Ad Directory Blum Shapiro 19 Boston Herald 28 Channel Building Company 20 Ethos Group 2 Lynnway Auto Auction 21 Nancy Phillips 19 O’Connor & Drew, P.C. 27 Reynolds & Reynolds 17 Southern Auto Auction 18
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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
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From the President: Leaping Forward THE ROUNDUP: Dodging Tax Curveballs TROUBLESHOOTNG: Addressing Mental Illness in the Workplace
10 AUTO OUTLOOK 12 LEGAL: Employee Personnel Files 13 ACCOUNTING: How to Create Effective Pay Plans 14 Cover Story: Bringing It Home
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NEWS From Around the Horn nada Market Beat TRUCK CORNER: Turning the Corner nada update: Telling Our Story Ourselves
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 MARCH 2017
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from the President
MSADA
Leaping Forward MSADA continues its efforts to keep you informed about our industry
By Chris Connolly, MSADA President
Msada Board
As I continue to adjust to my new role as MSADA president, I am reminded every day that our industry is changing at a previously unheard of speed. We have, for example, manufacturers duking it out in our Commonwealth’s legislature over autonomous vehicles. Many of us do not have time to keep up with the pace of these new industry frontiers. Being an auto dealer is an all-consuming task. This is not a job where you can have a case of the Mondays or phone in from the clubhouse four days out of the week. Our business requires leadership, and that means giving it 100 percent effort every day. MSADA is here to keep lookout while you are out moving metal. As your new president, I pledge that MSADA will stay on top of the latest developments in new technology and the implications of that technology on our livelihoods. You see much of that effort on a regular basis, whether it is this magazine, our regular email updates, and events such as our upcoming MSADA Annual Meet“As your new president, ing. We will continue to look for new ways to make this possible, especially I pledge that MSADA as our industry looks like it is headed will stay on top of the for many bold changes in the next five latest developments in years. With all that being said, we still new technology and need your help. You’ve heard MSAthe implications of that DA presidents say it over and over technology on our again, but it’s always more true than the last time one of us said it: We all livelihoods.” can do a few simple things to advance the interests of our entire industry in Massachusetts. When was the last time you called your legislator? Was it when we were working for 93B reform or fighting back on Tesla’s encroachment? It’s time to make that call again. And while there’s always something on our agenda, it’s important to never forget that that engaging them on the ins and outs of your business is crucial. Your legislator should care about how your business is doing, not just how you feel about the hot button issue of the day. As we finally enter Spring, I encourage you to grow your relationship with your legislators. It’s a relationship that will always pay off when it counts, and it’s as simple as a few minutes here and there. With that relationship in place, our next crisis will be their next opportunity to support their constituents. t
MARCH 2017
Massachusetts Auto Dealer www.msada.org
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 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 Scott Dube, Bill Dube Hyundai
NADA Director
Don Sudbay, Jr., Sudbay Motors
Officers
President, Chris Connolly, Jr. Vice President, Charles Tufankjian Treasurer, Jack Madden, Jr. Clerk, Steve Sewell
Associate Members
MSADA A ssociate M ember D irectory ADESA Jack Neshe (508) 626-7000 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 Armatus Dealer Uplift Joe Jankowski (410) 391-5701 AutoAlert Jessica Gates (816) 506-0515 Auto Auction of New England Steven DeLuca (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 and Tom Drislane (617) 929-8373 Burns & Levinson LLP Paul Marshall Harris (617) 345-3854 Capital Automotive Real Estate Services Willie Beck (703) 394-1323 Cars.com Heidi Allen (312) 601-5376 Catalogs.com David Solar (954) 908-7122 CDK Global Chris Wong (847) 407-3187 Construction Management & Builders, Inc. Nicole Mitsakis (781) 246-9400 Cox Automotive Ernest Lattimer (516) 547-2242 CVR John Alviggi (267) 419-3261 Dealer Creative Glenn Anderson (919) 247-6658 Dealerdocx Brad Bass (978) 766-9000 Dealermine Inc. Carl Bowen (401)-742-1959 Downey & Company Paul McGovern (781) 849-3100 EasyCare New England Greg Gomer (617) 967-0303 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 (857) 404-404-0226 Harbor First Ron Scolamiero (617) 500-4080 Hireology Kevin Baumgart (773) 220-6035 Huntington National Bank John J. Marchand (781) 326-0823 JM&A Group Jose Ruiz (617) 259-0527 John W. Furrh Associates Inc. Kristin Perkins (508) 824-4939 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
www.msada.org
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 & Associates, LLC Michael O’Neil, Esq. (781) 848-5028 Sentry Insurance Company Eric Stiles (715) 346-7096 Shepherd & Goldstein CPA Ron Masiello (508) 757-3311 Silverman Advisors, PC Scott Silverman (781) 591-2886 Southern Auto Auction Tom Munson (860) 292-7500 SPIFFIT Sean Ugrin (303) 862-8655 Sprague Energy Timothy Teevens (800) 828-9427 SunTrust Bank Michael Walsh (617) 345-6567 Target Dealer Services Andrew Boli (508) 564-5050 TD Auto Finance Marc Gerhart (781) 697-1525 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 Stephen Janetz (215) 986-8498 Wicked Local Media Massachusetts Jay Pelland (508) 626-4334 Zurich American Insurance Company Steven Megee (774) 210-0092
Massachusetts Auto Dealer MARCH 2017
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The Roundup
Dodging Tax Curveballs By Robert O’Koniewski, Esq. MSADA Executive Vice President Follow us on Twitter - @MassAutoDealers
AIADA Washington Summit Earlier this month MSADA representatives traveled to Washington, D.C. for the American International Automobile Dealers Association’s (AIADA) Eleventh Annual International Auto Industry Summit. AIADA annually gathers international nameplate franchised dealers in D.C. to hear from auto industry and political speakers and to meet with members of the dealers’ congressional delegations on Capitol Hill to discuss legislative and business issues facing the international nameplate community, especially pending global trade related legislation. This year’s Summit had a certain level of urgency to it, as AIADA felt the need to address Washington’s flowering interest in the implementation of a border adjustment tax (BAT). In fact, AIADA leadership is so keen to nip support for the BAT in the bud that it moved up the date of the meeting from its traditional mid-May occurrence to early March. The BAT has been proposed by the House GOP leadership as an integral part of the major corporate tax reforms that observers expect GOP leadership to introduce this year. The tax is being considered as a way to generate sufficient tax revenues to offset the impact of lowering the overall corporate tax rate. The BAT mechanism functions, through an assessment on imports, by excluding cash-inflow from overseas (export revenue) and cash-outflow to foreign countries (import costs) in the taxable profit calculation. Rallying around its 2017 battle cry “Stop the BAT!”, AIADA argues that the international MARCH 2017
Massachusetts Auto Dealer www.msada.org
nameplate automotive industry would see significant changes to their tax base under the border adjustment tax. More importantly, a 20% BAT rate would cost American consumers $1 trillion over the next ten years; the average price increase on new vehicles sold in the U.S. would be approximately $2,000, and families would pay at least $1,700 more on essential products every year. This year’s guest speakers included Republican Congressman Mike Kelly, who is himself a Pennsylvania franchised Hyundai and Kia dealer; Ohio Republican Congressman Jim Renacci, who is a businessman, including formerly owning a Chevrolet dealership that was taken from him by GM in its bankruptcy proceeding (which also served as his impetus for running against his then-congressman); and syndicated columnist and political commentator Charles Krauthammer. In making our Capitol Hill rounds, your Association’s contingent, including MSADA President Chris Connolly, Herb Connolly Acura; George Albrecht, Woburn Foreign Motors; and Marvin Marcell of Group One, which owns the Ira stores in Massachusetts and New Hampshire, visited the following Members of Congress and/or legislative staff for Rep. William Keating (D-Bourne), Rep. Seth Moulton (D-Peabody), Rep. Niki Tsongas (D-Lowell), Rep. Joseph Kennedy (D-Brookline), Rep. Richard Neal (D-Springfield), and Senators Elizabeth Warren and Ed Markey, both Democrats. During our meetings, in addition to the BAT, we discussed the Massachusetts auto market and reforming the CFPB, especially re-affirming the auto dealer exemption in the Dodd-Frank law. Amongst
MSADA our legislative delegation, we did not hear of any support for the BAT, and we were told often that we were the first to speak to them on the issue. AIADA together with the Association of Global Automakers shortly will release their 2017 economic impact report showcasing the growing impact of the international automakers on the U.S. economy. Although not ready for release at the March Summit, the report, entitled The Redefined American Auto Industry, is designed to educate policy makers and the public that the U.S. auto industry is comprised of a global array of companies, each of which is deeply invested in growing and thriving in America. One will be able to access the report at www.hereforamerica.com. An example of key points detailed in the 2016 report (2015 data): • 570,000 Americans are employed by international nameplate auto dealers; • 9,500 international nameplate auto dealerships operate in communities across the country, including 245 in Massachusetts (of the 427 total); • 8.3 million vehicles were sold nationally by international nameplate auto dealers (59% market share) – in Massachusetts, 71% of 335,081 new vehicle sales were at such dealerships. As Congress begins to focus on a tax reform package this year, if you want to get more involved with the process in reaching out to your Member of Congress, feel free to contact me.
Millionaires’ Tax This being Massachusetts, inhabited by a legislature that usually craves more and more revenues to fund more and more government, tax increases always seem to be part of our budgetary conversations, either percolating just below the seemingly placid surface or bobbing around in plain view upon waters roiled in fiscal chaos. Whether they are addressed in our budgets seems to be a function of if we have a steady hand at the ship of state’s tiller or those in charge have ditched sextant and charts for a rol-
licking adventure on the fiscal high seas. Although our state legislative leaders have not yet announced officially a desire to increase tax rates for the upcoming fiscal year (keep in mind that, under our state Constitution, any tax bill must be initiated by the House), both Governor Baker’s team and the Legislature recognize that the state’s now $40 billion budget has a built in structural deficit of $1-2 billion in combination with a myriad of other budget challenges should the economy go south, especially as state tax revenue growth slows and the MassHealth public health insurance program costs soar unabated. While the Governor advocates financial efficiencies and cuts, there exists a steady core of progressive legislators who would push through substantial tax hikes for income, sales, and gasoline, all in an effort to grow our government. As the FY 2018 budget debate plays out over the next several months leading up to its July 1 start, we will keep an eye out for any proposed alterations to the current tax structure, especially as it relates to auto sales and the trade-in allowance. One issue that we know will most likely play out over the next eighteen months is an effort by the progressive caucus to impose a “millionaires’ tax” – an additional 4% surcharge – on annual incomes in excess of $1 million. A group of community activists, with backing by progressive legislators, has proposed a constitutional amendment to alter the state’s tax structure. This millionaires’ surtax is intended to raise an additional $2 billion in annual revenues, nominally earmarked for education and transportation programs. (We should note that any new revenues, like all monies in our General Fund, are spent “subject to appropriation”, so technically these new revenues cannot be routed in law for any specific earmark – a mere legal technicality, which you will hear about in the coming months.) Currently the Commonwealth’s Constitution prohibits a graduated income tax. As a result, Massachusetts law presently requires a flat tax rate on all personal inwww.msada.org
come, currently set by the Legislature at 5.1%. In fact, based on the current tax scheme, including working family credits, deductions, etc., the top 20% of income earners pay more than 70% of all state income taxes collected by the state annually. The only path of imposition of a graduated income tax is through amendment to our Constitution. An amendment to the Constitution must undergo two procedures: (1) it must be approved by two successive biennial state legislatures meeting in Constitutional Convention – the required threshold for approval is low, requiring just 50 out of the 200 legislators that make up the convention to vote in favor; and (2) approval by voters in the successive November election. Last year the 2015-2016 Legislature met in Constitutional Convention to support the creation of the “millionaires’ tax”. The Convention gave its initial approval in May 2016 by an overwhelming margin of 135 votes in favor and 57 opposed. The Legislature will now need to meet during the 2017-2018 legislative session in Constitutional Convention to give its second approval of the measure. The Convention schedule is set by the Senate president, Sen. Stan Rosenberg, who is a strong proponent of the amendment. He has not set the convention schedule for the current two year session. If, as expected, the amendment receives its second round of approval, barring any successful legal challenge, it would be placed before the voters at the November 2018 election. In order to combat this measure, a coalition has formed that thus far includes the Massachusetts High Tech Council, which has taken the lead on this effort, the Massachusetts Competitive Partnership, Associated Industries of Massachusetts, and the Massachusetts Business Roundtable. The coalition is seeking to develop partnerships with other businessrelated entities that may have a stake in the matter. The coalition has commenced a fundraising effort to cover its costs in developing and implementing a legal and communications strategy to defeat the Massachusetts Auto Dealer MARCH 2017
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The Roundup proposal, which is anticipated to total in excess of $1.3 million. If you are interested in obtaining information in order to contribute financially to this effort, please contact High Tech Council president Chris Anderson by phone at (781) 890-6482 or by email at chris@mhtc.org.
Sales Tax Cut? In another potential shot at changing tax policy via the initiative petition process, the Retailers Association of Massachusetts is considering pushing a ballot question to cut the state’s sales tax from its current 6.25% to 5%, the level at which it was in 2009 before the Legislature and Governor Patrick hiked it by 25% to its present level. RAM has conducted preliminary polling whose results suggest that residents may be open to reducing the state sales tax rate. The polling shows that 79% of respondents support reducing the sales tax to 4%-4.5% to make the tax system fairer and to support local retailers. Further, 66% agreed that the “proper sales tax range” for Massachusetts would be between 4% and 4.5 %. The initiative petition process involves drafting a proposed law, submission to the Attorney General for constitutional review and ballot eligibility, signature gathering process (70,000+), submission to the Legislature for its action, more signatures to get on the November ballot if the Legislature does not enact it into law, and then final election day vote. So there is much, much more to this story to come. Stay tuned.
NADA 2017 Work Force Study Open The NADA/ATD 2017 Dealership Workforce Study (DWS) is now open. Your chance as a NADA/ATD member to participate ends on April 28. Employees are a dealership’s single largest expense and its single biggest advantage over the competition. With the Dealership Workforce Study, NADA and ATD members have the opportunity MARCH 2017
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. This is the sixth annual DWS NADA has conducted. 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. Only NADA and ATD members can participate in the DWS. It is free to participate, and participation involves enrolling, completing a survey, and uploading payroll data. Just for participating, members receive two valuable complimentary reports: (1) the Basic Report, which is anything but basic, as it is customized to the individual participating dealership, comparing that store’s numbers to the aggregate numbers of peers in the individual dealer’s own region and the entire country; and (2) the Industry Report, which provides overall analysis and trends, and statistics for every region of the U.S. Participants are also eligible to purchase the Enhanced Report, which compares the individual dealership’s numbers to peers who sell the same brand in the same state. By “numbers,” we are talking compensation for 60 job positions; retention, turnover, and tenure; benefits; work schedules; and hours of operation. The NADA/ATD Dealership Workforce Study is the most comprehensive study available of the retail workforce. With the data dealer-participants receive, you can adjust your pay plans, work policies, employment practices, etc., so that you are in position to attract and retain the finest workforce in your marketplace. The deadline to participate is April 28. 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.
Massachusetts Auto Dealer www.msada.org
MSADA MSADA Annual Meeting – May 5 Gov. Baker to Speak Don’t Delay – Register Today Have you registered yet for our upcoming annual meeting? Your Association will conduct this year’s meeting – our 77th – at Boston’s premier spot, the Mandarin Oriental Hotel. Our speakers’ lineup so far includes Massachusetts Governor Charles Baker; Jason Stein, Automotive News publisher; Registrar of Motor Vehicles Erin Deveney; and more. In addition, we will provide a state legislative and regulatory update as well as reports from your MSADA president, Chris Connolly, and our NADA director, Don Sudbay. We start the day at Noon with a buffet lunch, and our Speakers Program will run from 1:00 p.m. to 5:00 p.m. There will be a Cocktail Reception immediately after the program. Further, we have blocked off a limited number of rooms for our dealers who wish to stay over at the hotel that evening, for which your MSADA will pick up the room cost for the night. But you must respond as soon as possible to take advantage of this great offer. For those who stay over, we will have a complimentary breakfast available for you the next morning. Contact Jean Fabrizio to register at jfabrizio@msada.org or call at (617) 4511051.
Dealer Day on Beacon Hill – May 24 Be sure to register for our annual “Dealer Day on Beacon Hill” event in Boston. It will be held on Wednesday, May 24, beginning at the Parker House Hotel at 10 a.m. with a legislative briefing before traveling up the Hill to the State House to meet with legislators. It is a great opportunity for dealers and their key managers to get involved in the legislative process and to help get our message out on those bills that she help and hurt dealership operations. Use the registration materials that have been sent to you. t
Troubleshooting
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Addressing Mental Illness in the Workplace By Peter Brennan, Esq.
MSADA Staff Attorney According to the National Alliance on Mental Illness, one in five Americans currently suffers from some form of mental illness, such as depression, bipolar disorder, or schizophrenia, and many that suffer show no outward signs. In 2016, the U.S. Equal Employment Opportunity Commission issued a document for employees titled, “Depression, PTSD, and Other Mental Health Conditions in the Workplace: Your Legal Rights.” The EEOC document was not a new regulation, but a summary of existing legal rights that employees suffering from mental illness have under the federal Americans with Disabilities Act (ADA). It serves as a good summary of employer responsibilities under the law. Employers must be mindful not to discriminate against those with mental disorders or conditions that qualify as a disability under the ADA. Forms of discrimination can include the termination of employment, rejection of the employee for a promotion, or forcing the employee to take medical leave. Discrimination can also apply to hiring decisions, and applicants that disclose a mental illness, or those who the employer believes may suffer from mental illness, cannot be rejected on that basis alone if they are qualified to perform the duties of the job, even if a reasonable accommodation on the part of the employer would be required. The ADA requires employers to provide reasonable accommodations that al-
low people with disabilities to perform the essential functions of their jobs, unless doing so would pose an undue hardship for the employer. The employee’s condition does not have to be permanent to qualify for an accommodation under the ADA. For instance, if an employee suffers from a condition such as post-traumatic stress disorder (PTSD) or obsessive-compulsive disorder (OCD) that is mostly dormant but triggered but certain situations, the employee would be eligible for an accommodation under the law. The reasonable accommodations that employers must provide are not a “catch all” to excuse poor employee performance and do not limit the employer from making personnel moves necessary to the success of their business. Additionally, an accommodation is not required under the ADA if it would present a “significant difficulty or expense” for the employer. Employers are not required to hire potential employees that would not be able to perform the duties of a job due to mental illness, nor are employers required to keep an employee in a job that the employee’s mental illness prevents them from performing. The accommodations that must be provided to employees suffering from mental illness vary on a case by case basis. Some accommodations suggested by the EEOC include altered work schedules, quiet office space, or working from home. The employee cannot be required to reimburse the employer for the expense of the accommodation. It may happen that an employee cannot perform the duties of the job due to their condition even after the employer provides a reasonable accommodation. The EEOC takes the position that, in such a case, the employee may be entitled to an open-ended unpaid leave if it will help them to perform the job in the future. The employee may also have additional rights under the Family Medical Leave Act. Employers also do not have to hire, www.msada.org
and may terminate, employees that pose a “direct threat” to safety. Under the EEOC document, “direct threat” is defined as someone that a poses a significant risk of substantial harm to themselves or others, such as co-workers, customers, family members, or the public at large. However, if an employer seeks to take a negative action against an employee or prospective employee based at all on that person’s mental illness, the employer must not rely on “myths or stereotypes” about the person’s mental illness when making the determination. The EEOC document stresses that employers must have objective (emphasis theirs) evidence that the employee or prospective employee could not perform the duties of the job or poses a safety risk due to their illness when taking an action that is detrimental to the employee or applicant. Acquiring “objective evidence” about someone’s mental illness is a tricky proposition for anyone, especially employers. Generally, due to the stigma surrounding certain conditions, people do not disclose such private matters. The EEOC lists the four situations in which the employer may ask about a mental illness: (1) when the employee asks for an accommodation; (2) after a job offer has been made, but before employment begins, as long as the same question is asked of every applicant in the job category; (3) where the employer is engaging in affirmative action for people with disabilities; (4) if an employer has objective evidence that an employee is not performing their job duties or may pose a safety risk, as described above. t If you require any additional information on these wage and hour issues 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. Massachusetts Auto Dealer MARCH 2017
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AUTO OUTLOOK
MARCH 2017
Massachusetts Auto Dealer www.msada.org
MSADA
www.msada.org
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Legal
MSADA
By Joseph W. Ambash and Jeffrey A. Fritz
Employee Personnel Files Are Your Dealership’s In Order?
Your General Sales Manager terminates a salesman or saleswoman for poor performance and, several weeks later, you receive a letter from an attorney requesting a copy of her personnel file. Such a scenario is not atypical and is usually a harbinger for litigation. Your employees’ personnel files, in many instances, are the first look a plaintiff’s attorney has into your dealership’s recordkeeping habits and, accordingly, it is good practice to keep them in order (as required by law). This article briefly addresses some of the requirements of the Massachusetts Personnel Files Act (“MPFA”).
What Should Be Kept in Employee Personnel Files? The MPFA defines “Personnel record” broadly as one “kept by an employer that identifies the employee, to the extent that the record is used or has been used, or may affect or be used relative to that employee’s qualifications for employment, promotion, transfer, additional compensation, or disciplinary action.” While this definition is not particularly specific, an employee’s personnel file, at a minimum, should contain his or her date of birth, application for employment and/or resume; offer of employment; signed job description; signed pay plan; forms concerning employee benefits; signed acknowledgement of receipt of your employee handbook(s); IRS Form W-4; performance reviews or evaluations; records of warnings or other disciplinary action; documents reflecting raises or changes in employment status; any contract between you and your employee (such as a contract with respect to a demo he or she drives); documents reflecting tardiness, poor attendance, and customer or coworker complaints; and, if applicable, documents reflecting the reasons for his or her termination.
What Should Not Be Kept in Employee Personnel Files? Just as some employers keep very sparse MARCH 2017
employee personnel files, others are overinclusive. You should not include in such files employee medical information or records (which should be kept in a separate, confidential medical file), I-9 forms (which should be kept in a separate I-9 file, which should contain all employee I-9s), and other documents that do not concern personnel matters. Moreover, the MPFA specifically states that employers should not include in an employee’s personnel file documents that include information of a personal nature about a person other than that employee, if inclusion of such information would violate the other person’s privacy rights.
Employees Must Be Allowed to Review and Challenge Information in their Personnel Files In the event you place information in an employee’s personnel file that is used, has been used, or may be used to negatively impact his or her qualification for employment, promotion, transfer, additional compensation, or discipline/termination, you must notify the employee of such information within 10 days of its inclusion in his or her personnel file. Moreover, in the event an employee (or his or her attorney) asks to review his or her personnel file or requests a copy, such must be afforded within five business days (although you need only comply with such requests two times per calendar year). Finally, in the event an employee asks that certain information be stricken or removed from his or her personnel file and you do not agree, you must permit the employee to submit a written statement, to be included in his or her personnel file as well, explaining his or her position with respect to such information.
How Long Should You Keep Employee Personnel Files? Certainly, you should maintain compliant employee personnel files for the entirety of your employees’ employment.
Massachusetts Auto Dealer www.msada.org
And while the MPFA requires employers to keep personnel files for three years after an employee’s employment has ended, we recommend that you keep them for at least four years.
Penalties for Non-Compliance The MPFA provides for a civil penalty of between $500 and $2,500 for violations, but under-inclusive or over-inclusive personnel files can make defending lawsuits by employees or former employees more difficult.
Yearly Personnel File Audits are a Good Practice Yearly audits of your employment practices are good practice generally, and your employee personnel files are no exception. A few hours of work each year can go a long way toward ensuring your personnel files are compliant and up-to-date. Also, you should ensure you maintain the confidentiality of your employees’ personnel files, that only those employees with a need for access have access, that they contain everything they should, and that they do not contain superfluous information, medical records, or confidential information about others. The documentation of employee issues, such as disciplinary warnings and termination rationales, can often make or break a case. It is imperative that employers keep good records of such issues and, the best starting point for doing so, is ensuring your personnel files contain adequate and appropriate documentation of such issues, are upto-date, and are compliant with the law. t Joe Ambash is the Managing Partner and Jeff Fritz is counsel at Fisher Phillips, LLP, a n a t i o n a l l a b o r a n d e mp l o y m e n t f i r m r e p r e s e n t i n g h u n d r e ds o f d e a l e r s h i ps in
Massachusetts
be reached at (617)
and nationally.
722-0044.
They
may
Accounting
MSADA
How to Create Effective Pay Plans Kevin Carnes, O’Connor & Drew, P.C.
It is an issue that has plagued dealerships for years. The heartache and time spent developing, tweaking, and presenting pay plans have not only shortened the life of owners, it has also cost dealerships key productive employees. The process of developing an effective pay plan is not easy, but if done properly can work for both the dealership and employees ensuring that they share in the positive production of the store. So where do you start? The following are some tips on how to develop effective pay plans that will benefit everyone involved. The first step in the process is to gain an understanding of what you are trying to accomplish. For example, if you are looking at sales associates, you want to make sure the pay plan addresses the key areas specific to your dealership. Obviously you want to maximize volume and gross profit. However, each store is different. If volume is more important, then the pay plan should be geared towards volume. The next step in the process is to make sure that the pay plan focuses on things that employee has the ability to control. For example, you should not include variable expenses such as advertising in a manager’s pay plan unless the manager is responsible for advertising. Only hold people accountable for variables they can control. I also suggest you try and keep pay plans as simple as possible. This is not easy to do. Make sure you understand the responsibility of the employee’s position.
“Finding the appropriate pay plan to both maximize the performance of the store and satisfy employees can be a real challenge.” Finding the appropriate pay plan to both maximize the performance of the store and satisfy employees can be a real challenge. It takes time and effort, and should ultimately hold people accountable and increase productivity. Each pay plan is unique, but keeping in mind the above should provide a basic guideline for you through this process. t
Since a service writer is responsible for client relationships, you should pay them not only on the sales they generate but also customer satisfaction, which could be more important and should be reflected in their pay plan. Understanding the role of the position will allow you to streamline the pay plan. One additional factor to consider when developing pay plans is utilizing industry guidelines and setting goals so that compensation falls within these guidelines. Although there is a tremendous amount data in this industry, the following are some guidelines to work with:
Kevin Carnes, CPA, CVA is a principal with O’Connor & Drew, P.C. He can be reached at (617) 471-1120 Ext. 215 or kcarnes@ocd.com
Payroll as % of Gross - Total Goal 40% New and Used
% of Gross
Parts
% of Gross
Service
Sales Comp
20%
Supervisor
15%
Supervisor
Supervisor
15%
Other
15%
Other
F&I Comp
5%
Clerical
Clerical
3%
Total
Total
43%
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3% 33%
% of Gross 15% 17%
Clerical
3%
Absentee
1%
Total
36%
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COVER STORY
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Chris Connolly talks 100 years of his family’s dealership business and his role as the new MSADA president By Jeff Breeze “When Chris Connolly graduated from Marquette University in 1992, the last thing he expected was that he’d one day become president of the Massachusetts State Auto Dealers Association. With a BA in Communications, Journalism and Performing Arts, he got a job with the Milwaukee Brewers hoping to make it in the world of sports broadcasting. Of course, with Bob Uecker still entrenched in the role as the team’s announcer to this day, it’s a job with very limited upward mobility. “There was a big pyramid to climb to get to the top in sports broadcasting,” Connolly said. After two years of giving it a try, when his grandfather was diagnosed with cancer he realized getting into the family business was tough to turn down. “Herb (Connolly) Jr. said, ‘This is your last chance if you want to change careers.’ I was older by then, I was 23, so it was easier for me to say, ‘This is a really great opportunity.’”
“There were two dealerships,” Connolly recalls. “Herb decided I was going to buy the Acura store and my brother Adam was going to buy the Buick store.” They’ve since turned the Buick into Herb Connolly Hyundai and Herb Connolly Chevrolet, keeping the business in the family with their other brothers Doug and Brendan also involved. Thankfully they will help relieve any of the extra demands his new role as president places on his time. “I rely on each of them from time to time whenever I need to spend time out of the dealership. The four of us in the three stores really make it work, and there’s pretty much always a Connolly on the premises when the dealerships are open seven days a week.”
Taking the Lead Now they are planning celebrations for the family’s 100 years in the business, dating back to when Herb Connolly Sr. sold his first Chrysler in the Summer of 1918. Connolly’s own children are too young yet to think about being the
“If we get dealers to realize that their Association is helping them with their bottom line here in Massachusetts, hopefully they participate more, they’ll get more involved, and they’ll get in front of their legislators.”
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BRINGING IT HOME next generation to take the reins of the business. “I’d certainly like to present the opportunity for them if they wanted it,” he says. “I’d love to make sure the business is here for them at the time they might consider getting involved.” Right now his focus is on his new role as MSADA president – noting he has big plans to help dealers across the Commonwealth. Connolly spent the past four years as the Association’s vice president, and he understands the importance of his role as a representative for all of the 427 member-dealerships in the state. He also knows that, ultimately, all of his efforts come down to improving the bottom line in each of those locations. “I’m just looking forward to providing more benefits for the members, so that we can all make more money. That’s the only reason I’m in this,” Connolly says. “If there’s one challenge that’s greater than others right now, it could be just the lack of profit from a new car sale. These days the manufacturers are constantly reducing margins to be more competitive. Manufacturers are always presenting us with different challenges, special tools that we have to buy, and special facility requirements that they are forcing on dealers.” He also hopes to spur other dealers to get involved, stressing the importance of being politically active beyond just attending Dealer Day on Beacon Hill in May. He hopes to increase political connections and to spend time talking about important legislative issues, as well as providing dealers with some insight and clarity on regulations, including the upcoming changes in state car inspections. “If we get dealers to realize that their Association is helping them with their bottom line here in Massachusetts, hopefully they participate more, they’ll get more involved, and they’ll get in front of their legislators. So if there’s something that comes up, dealers have that relationship with legislators so they can call them up and can say, ‘Hey, I don’t agree with your position on this,’ or, ‘Have you seen this bill?’ and can tell them why they do or don’t like it.” MARCH 2017
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New Goals Connolly is looking to bring short-term benefit solutions to dealers, and he is working on an initiative with Governor Baker’s office and the Department of Corrections to help increase the pool of qualified technicians. “They have inmates who want to become auto techs, and we want to provide them with places that they
can go during work release when they are at that point in their sentence,” Connolly notes. “Eventually, they can come to car dealerships to work on people’s cars, and we can provide those guys with a career that will keep them on the straight and narrow once they’ve served their time.” Another major goal involves bringing in outside help for dealers’ day-to-day business. “We have brought in Ethos Group to continue to work on F&I profitability with our member dealers,” Connolly notes. “I encourage our members to take advantage of their services.” The work of the new president is a constant effort to improve the bottom line for dealers while providing the best experience possible for their customers. Connolly seems ready to tackle all of the issues that come his way, whether they be from onerous legislators or from the manufacturers supplying vehicles. “That’s the ultimate goal obviously: Helping dealers increase their profitability and creating a thriving business environment in Massachusetts.” t
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NEWS the Horn
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NEWS from the NEWS from Around Around the Horn Horn from Around BOSTON
Manufacturers Battle over Autonomous Vehicle Regulations on Beacon Hill General Motors has backed a bill currently before the Massachusetts legislature filed by State Sen. Eric Lesser (D-East Longmeadow) that would only let companies that have previously “manufactured and distributed motor vehicles in the United States” make self-driving technology available to the public. The Self-Driving Coalition for Safer Streets, a group that includes Uber Technologies, Lyft, auto makers Ford and Volvo, and Waymo, the self-driving initiative recently spun out of Google, has stepped up in lobbying against the bill. The group claims it could prevent technology companies from using autonomous vehicles for public uses such as ride-hailing services once the technology becomes commercially viable. “The way that it defines a vehicle manufacturer is very anticompetitive,” Chan Lieu, who is serving as a legal adviser to the coalition, told The Boston Globe. “To require that the people have previous experience manufacturing vehicles in the US — we don’t understand the public policy rationale to doing that.”
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GM has supported similar legislation in other states, including Illinois and Maryland. Michigan, GM’s home state, adopted a version in 2016, but amended the bill at Google’s urging, to allow qualifying technology companies to operate self-driving vehicles for the public. GM does not oppose letting technol-
MSADA ogy companies offer the services but pitches legislation that favors traditional auto manufacturers as a starting point to make sure that the rules ensure public safety. GM later supported the Michigan amendment because it required tech companies to conduct a certain amount of testing. In a Boston Globe interview, Sen. Lesser, who cochairs the Legislature’s Committee on Economic Development and Emerging Technologies, acknowledged that GM approached his office about filing the Massachusetts bill. “It’s clearly a bill that established car companies are going to like, in particular, GM,” he said. With a bunch of similar bills before the state it’s likely that compromises will be made and technology companies be allowed to operate self-driving services. “The way it’s written is tighter, frankly, than it will probably play out,” Lesser said. Another company that would be affected by the GM legislation is Cambridge-based startup nuTonomy Inc., which is conducting vehicle tests in South Boston and Singapore. “I think what’s important is to have a set of conditions for testing autonomous vehicles and ensuring the safety of autonomous vehicles,” Matthew Wansley, nuTonomy’s general counsel, told The Globe. “If I were in the Massachusetts Legislature and was looking at a model to build out of, I wouldn’t look at these copycat bills.” MENDON
Imperial Shows Students Inside the Auto Industry Imperial Cars hosted their first Industry Day in February to showcase local job opportunities for students from area high schools. During the tour, students also explored other career opportunities in the spa/barbershop, the jewelry store, event planning functions, restaurant/culinary facilities, business support services, IT, and human resources. Over 175 people toured the facility, as Imperial invited students, families, teachers, and counselors from across Massachusetts and Rhode Island in an effort to inspire career interests in the automotive industry. With many students unsure about their future employment options, Imperial Cars put on the event to help show what options are available. “Too many students go to college, and don’t know what they are going to school for,” Jeff Muecke, vice president of field admissions at Universal Technical Institute, told The Metrowest Daily News. “The purpose of these tours are to give students a closer look at www.msada.org
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Around the Horn NEWS fromSERVICES DEALER potential careers, encourage them to investigate these opportunities, and motivate them to choose a career they will love before making a decision about post-secondary education.” “I’ve always liked automotive, and being able to see them work on the cars keeps my eyes open to what I can do,” said Madison Palazini, a junior at Douglas High. “It’s great to not only see everything here, but also seeing all the women involved. It’s very empowering to see that if I want to do this, I can make it in a male dominated field.” “We are showing them different opportunities, from entry level to highly skilled positions,” said Jason Maille, parts director for Imperial. There are 350 employees currently working at Imperial, and there will be a high demand for employees in the automotive industry especially in the future as baby boomers retire. “It’s difficult to find highly skilled people, so we have to grow our own,” said Maille. “Today we are planting seeds.” Imperial Cars consists of three dealerships: Imperial Ford, Imperial Chevrolet, and Imperial Chrysler Dodge Jeep Ram, with 2,000 new and used cars on the 52-acre lot for sale, and the three auto body shops service 2,400 to 3,000 cars on a monthly basis. Seeing all the hands-on work that goes into repairing and detailing vehicles appealed to many of the students on the tour. High schools that participated in the event included: Uxbridge, Nipmuc (Upton), Millbury, Sutton, Douglas, Hopedale, Bellingham, and Foxboro, along with Rhode Island high schools from Cumberland, Smithfield, and North Smithfield.
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Mass. Dealerships Tick Upward While National Rates Hold Steady Massachusetts showed one of the most marked increase for dealerships in a relatively steady national market in 2016 by adding eight dealerships from last year’s state total. Nationwide, the franchised dealership count remained steady and nearly set a record for new-vehicle sales throughput, according to the year-end Automotive Franchise Activity Report from Urban Science. With 18,170 new-car dealership rooftops on January 1, it showed a 0.5 percent increase from last year’s count of 18,087. The number of franchises came in at 32,011, which was also up from 31,776. The new-car sales throughput of 965 per dealership nearly broke a record, says Urban Science global director of data Mitchell Phillips. “This throughput narrowly missed setting another record level by one unit due to the stable but increasing count of dealerships in 2016,” Phillips said. “With the current dealership count trend as we have seen for the past several years and a stable current industry forecast, exceeding the 2016 level is questionable.” There has been a stable pattern when 96 percent of local markets saw their dealership count essentially remain static, gaining or losing one store. “The most significant (net) dealership increases occurred in Texas, 15; Florida, 14: Arizona, nine: Massachusetts, eight; and New York, seven,” Phillips said. “An interesting observation is California, which is typically on the most active list, as it is no longer included on the most active list, demonstrating a period of stability.” A NADA-commissioned study predicts the U.S. dealership count will be approximately 16,500 by 2025, while the current count cited in that report is a little less than 18,000. Expectations for the dealer ownership count are predicted to fall from 8,000 to 6,500 over the same time frame. It wasn’t just new-car metal that these dealers were churning. On the used-car side, last year was a rosy one for the nation’s franchised dealers. The NADA report said that franchised dealers boosted their used-car sales for the seventh straight year, moving more than 15 million pre-owned vehicles.
21 LAWRENCE
Community College Expands Auto Tech Program Starting this September, Northern Essex Community College is expanding their course options to include a two-semester automotive technology program. Completion of the program will enable students to perform vehicle maintenance in a professional manner for auto dealerships. Gregory Stinson is a car guy with more than 40 years of experience in the industry, and he will serve as the program’s coordinator. An industrial engineer by profession, he has sold cars, managed the parts counter, trained technicians, and worked as a field engineer. Michael Ouellette will join him, serving as the instructor of the new automotive technologies course. Those who complete the program will earn a certificate in automotive technology. The first semester will include English composition, applied technical math, introduction to entrepreneurship, and introduction to automotive technology. During the
second semester, students will receive more concentrated instruction in brakes, steering, suspension, and alignment. They also will have the opportunity to work in an auto repair shop as interns. The academic classes will be taught at the Haverhill campus or the downtown Lawrence location, while practical instruction will EAGLE-TRIBUNE PHOTO take place at Greater Lawrence Technical School in Andover. The car industry needs technicians who are trained in basic maintenance according to Stinson. Yet many secondary schools have terminated their automotive technology programs. “They are looking for enthusiasm,� Stinson said of auto dealers. Beginning auto technicians generally earn $10 to $14 per hour. Those who work hard, gain experience, and undergo more advanced training, which is usually provided by the manufacturers and paid for by the dealer, can achieve master mechanic status and earn close to $100,000 per year. Those who are interested in enrolling in the automotive technology program are advised to call Stinson at 978-659-1206 or email him at gstinson@necc.mass.edu.
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TRUCK CORNER AUTO OUTLOOK
MSADA
Turning the Corner
Seasonal downturn moves to brighter conditions in the truck industry
By Steve Parker
Baltimore Potomac Truck Centers ATD Chairman
Weather folklore famously characterizes March as coming in like a lion and going out like a lamb. This is because the marked change of weather tends to come in rough and turbulent, but then goes out calm and pleasant. Let us see if the same can be said of the truck industry’s seasonal pattern this year. If it was any indication, this period certainly did roar in like a lion with President Trump’s unprecedented election to the White House, along with the newly-appointed administration he is building throughout the branches of the federal government. With murmurings of major change in tax policies, including a newly proposed border adjustment tax, there are many unknown elements for the fiscal year. Meanwhile, on the home front, truck dealers throughout the nation are also coping with changing conditions. In January, dealers faced a quieter market, which turned out lower retail sales. Sales for Class 8 trucks just passed 10,000 units in January. This was the lowest record in nearly six years, as numbers fell 31.4% year-overyear. However, unlike Mother Nature, the American Truck Dealers (ATD) won’t leave our own climate to chance. Your association is working hard to be more proactive than ever and to keep our members engaged. For the past year, ATD has made a concerted effort to engage with dealer councils on a regular basis. We have also expanded lines of communication with allied associations like the American Trucking Associations (ATA) and the Truck Rental and Leas-
“Your Association is working hard to be more proactive than ever and to keep our members engaged.”
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Massachusetts Auto Dealer www.msada.org
ing Association (TRALA). I plan to attend TRALA’s annual meeting this year, which is the largest gathering of truck renting and leasing executives and suppliers in North America. And ATD is proudly represented at ATA’s monthly Motor Carriers Luncheon -- an ideal time for discussing mutual challenges. We are also present at the National Truck and Equipment Association’s (NTEA) Work Truck Show, which gathers the best and brightest throughout the truck industry and showcases the latest and greatest products. More temperate conditions are also forthcoming. When it comes to sales, numbers are projected to improve over the course of this year. Better freight volume is projected for 2017, and dealers will be ready. We expect the market to slowly gain momentum again. As my second year as your ATD Chairman is well underway, always remember that I’d like to hear from you. ATD strives for continuous improvement, and we cannot do that without your insight and feedback. Our team is still gathering the results of the postconvention survey that was filled out by both convention attendees and non-attendees. This survey is critical to keep building our convention program year after year so that it best serves all of you and meets your needs. As winter turns to spring, ATD members must stay strong through the winds, hail, and rough storms - both literally and figuratively. Rest assured that any tough times are simply temporary, because the strength of this industry is constant. As many meteorologists like to say, warm and moderate temperatures are on the way. t
Steve Parker is chairman of ATD, a division of the National Automobile Dealers Association. He can be reached at s.parker@baltimoretruckcenter.com. Visit www.atd.org to learn more about ATD’s issues and how to get involved.with Mack, Volvo and Hino Trucks franchises in Maryland and Virginia.
NADA Update
By Don Sudbay
Telling Our Story Ourselves
NADA launches new campaign to boost local dealership ties 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). As you will see in NADA Chairman Mark Scarpelli’s column below, we are proud to launch a new campaign to promote the faces behind local dealerships that are often lost in the debates that occur on Capitol Hill or in our Commonwealth’s legislature. Whether we are working to get our customers the best financing possible or employing dozens of our neighbors, dealerships have a footprint that deserves to be recognized for the people behind them alongside us proud owners. Please make sure to take a moment, as Mark asks, to share Mydealership.org around your store.
Chairman’s Column: Share MyDealership.org Today by Mark Scarpelli American dealerships are local. They are diverse. They are modern. They save people money. And they create jobs. These are five facts of life in the auto retail business, and they are now powerful mantras at the National Automobile Dealers Association. Auto dealers have known the consumer benefits of the dealer franchise system since its inception, and we’re proud to spread the word with a new national campaign: MyDealership.org. This initiative aims to help local dealerships—as well as state and metro new-car dealer associations—showcase the benefits of America’s auto dealers and the more than 16,500 dealerships across the nation. This is a movement to educate others about our business, whether it’s the general public, policymakers, opinion leaders, journalists, OEM executives, and stakeholders throughout the auto industry. You may be thinking, “How is this effort different?” MyDealership.org is unique because it does not come from the dealer perspective. You will not see me in any of the five featured videos which, by the way, is a hallmark of the campaign—along with the newly launched website. The testimonies and stories that you will see are straight from the mouths of real customers—customers who have benefitted through lower prices on sales, finance, and service. It also
comes from the perspective of real dealership staff, who benefit from gainful employment at all levels and acknowledge the great opportunities for advancement. Finally, you will get the perspective of local community leaders, who also benefit when local businesses like ours plant roots and contribute to the tax base. MyDealership.org is a smart campaign. It capitalizes on social media platforms and PSAs, assuring that our messages reach as many people as possible. The site also highlights data that outlines the economic advantages and job creation at dealerships in each state. But the facts and testimonies are just one piece. The true strength of the campaign lies with all of you! I am calling on each and every one of our members to share MyDealership.org today if you haven’t already. The ads are designed to be used by any dealer on their own websites, in their marketing, or in their dealerships. Use this campaign to your advantage and target your state legislators and your local media. NADA has also created a toolkit where you can access and download the videos and banner ads directly: www.MyDealership.org/toolkit. Finally, why is this campaign so important today? During NADA’s 100th anniversary convention in January, I told thousands of attendees in New Orleans that I would serve as the gatekeeper for this industry. Above all, that means being the gatekeeper between Washington’s policies—whether well-intentioned or not—and your doors. As we’ve seen over the past few years, the consequences of federal regulations can negatively impact not just us, but our customers—including higher prices, fewer inventory choices, and less convenience. Gatekeeping also extends to
“I am calling on each and every one of our members to share MyDealership.org today if you haven’t already.” our manufacturer relationships. NADA is encouraging our OEMs to enact programs that help dealers strengthen our relationships with customers, not weaken them. This campaign not only will educate the public on multiple levels but also will showcase the strong relationships we have built with customers over the past century. Let us all be a gatekeeper for our great industry. Share MyDealership.org today and share the good news: you are local, you are diverse, you are modern, you save people money, and you create jobs!
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NADA Update NADA Praises Trump Administration for Restarting Midterm Review of Fuel-Economy Standards NADA President and CEO Peter Welch issued the following statement in response to the Trump Administration’s decision to restart the midterm review of federal fuel-economy standards, which was circumvented by the Obama Administration’s “final determination” of MY 2022-2025 standards in January: “NADA applauds the Trump Administration for reaffirming our shared commitment to a transparent, fair and datadriven midterm review of fuel-economy standards. Maintaining vehicle affordability is critical to actually building on the progress the industry has already made on increasing fuel economy and lowering vehicle emissions. As dealers, our top priority will always be ensuring that working men and women have the ability to purchase the fuel-efficient cars and trucks they need at prices they can afford.”
Dealerships That Participate in Workforce Study by April 28 Will Receive Two Complimentary Reports NADA and ATD members that participate in the Dealership Workforce Study by completing a questionnaire and submitting their payroll records will receive two complimentary reports. “Automotive Retail: National & Regional Trends in Compensation, Benefits & Retention” is the industry’s top resource for helping dealers meet their No. 1 challenge of attracting and retaining productive employees. It contains clear analysis of the light-vehicle and commercial-truck industry. The report includes national and regional data for 60 car and truck dealership positions. In addition to data on pay, benefits, and turnover, the report details the impact of work schedules, gender gap, and generational challenges facing dealerships today. Participants will also receive a complimentary individualized comparative report for each participating dealership. To enroll in the 2017 Dealership Workforce Study, which is open through April 28, visit www.nadaworkforcestudy. com and enter your Member (Company) ID. For questions, send an email to WorkforceStudy@nada.org.
NADA/J.D. Power Automotive Forum to Discuss ‘Policy and Regulation in the Trump Era’ With the new administration underway, leaders representing new-car dealerships and auto manufacturers will assess the regulatory environment going forward and discuss how several Republican policy objectives – including tax reform and infrastructure investment – will impact the automotive manufacturing and retail sectors. MARCH 2017
The panelists are Peter Welch, president and CEO of the National Automobile Dealers Association; Mitch Bainwol, president and CEO of the Alliance of Automobile Manufacturers; and John Bozzella, president and CEO of Global Automakers. Mike Allen, co-founder and executive editor of Axios, and a co-founder of POLITICO, will moderate the panel discussion. The discussion is among several speaker and panel sessions scheduled at the 2017 Automotive Forum in New York City on Tuesday, April 11. The full-day forum, “Automotive 3.0 – Navigating through Changing Times,” is hosted by NADA, J.D. Power, and the New York International Auto Show. It will be held at the Grand Hyatt New York. Registration is open. For the full agenda or to register, visit www.autoforumny.com. Forum attendees receive exclusive access to the auto show during press days.
NADA Partners with Junior Achievement to Improve Financial Literacy The National Automobile Dealers Association and the NADA Women Directors have partnered with Junior Achievement USA to teach financial educational courses to students in grade schools and high schools through a volunteer program. “A goal of the partnership is to get new-car dealers or dealership representatives in communities across the country to become volunteers in the program,” said Michelle Primm, managing partner of Cascade Auto Group in Cuyahoga Falls, Ohio, who is providing financially-focused curriculum to students in her local school district through Junior Achievement. “Junior Achievement makes it easy with their ‘meeting in a box’ materials, allowing for a rewarding volunteer experience that fits in with busy schedules,” Primm added. This organically grown initiative came to fruition through insight gathered over the last few years at the Women Dealers’ Networking Event, held during NADA’s annual convention. The NADA Financial Literacy Program, in partnership with Junior Achievement, was officially launched during NADA convention in New Orleans in January 2017. “We are thrilled to be working hand in hand with NADA and NADA’s Women Directors who have demonstrated commitment to the financial literacy initiative,” said Laura Goodman, vice president of volunteer engagement for Junior Achievement. “We look forward to working with and exceeding the expectations of NADA and their dealer members in an effort to impact young people across the country.” For more information about how to become a volunteer in the program, contact Deborah Stevens at dstevens@nada. org. t
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