Massachusetts Auto Dealer Magazine September 2021

MSADA, One McKinley Square, Sixth Floor, Boston, MA 02109

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

September 2021 • Vol. 34 No. 9

The official publication of the Massachusetts State Automobile Dealers Association, Inc

Capitol Affairs O T D E S O C I CL L B U P E TH

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 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: jfabrizio@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 Ethos, 2 Bellavia Blatt, 17 Nancy Phillips, 19 NEAD, 19 O’Connor & Drew, 28 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

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The official publication of the Massachusetts State Automobile Dealers Association, Inc

Table of Contents

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From the President: Never Stop Advocating ASSOCIATE MEMBERS DIRECTORY THE ROUNDUP: Another Washington Conference Lost LEGISLATIVE SCORECARD TROUBLESHOOTING: AG Settlement Shows AG Targeting Our Industry AUTO OUTLOOK

14 Cover Story: Capitol Affairs

18 20 21 22 24 25 26

NEWS From Around the Horn Information Security: Why You Should Not Trust Your IT Team LEGAL: Ready for a Domestic Violence Leave Request? nada Market Beat AIADA Brief: International Nameplate Dealers are Under Fire TRUCK CORNER: Dealer Advocacy Starts in Our Own Back Yards nada update: Making a Difference Nationwide

Back Cover: $1,800 Inside Front: $1,700 Inside Back: $1,600

Join us on Twitter at @MassAutoDealers www.msada.org

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From the President

MSADA

Never Stop Advocating If we let COVID-19 stop our lobbying efforts, the other side wins

By Chris Connolly, MSADA President As auto dealers, our industry is regulated locally, by state authorities, and by the federal government. We all know that, while regulations keep consumers and dealers safe, without our constant input, misconceptions and assumptions can get in the way of sound policy.

That means we have to make the effort, whether or not COVID-19 stops us from roaming the halls of Capitol Hill in person. And even when things cannot go on as scheduled, this time of year we can measure the same relative temperature. And each year the same founding American principle is under attack: free enterprise.

Of course, the scope of that problem is well beyond any one industry. We keep our punch list short and stick with making sure our legislators understand that tax increases and regulatory changes may seem copacetic while dreaming them up in the halls of power, but back in Lawrence or Northampton or Framingham the small businesses that make up the fabric of those communities are being tugged at the seams.

We may not agree with our legislators on every issue, but as we have seen proven during these past couple of years, when the chips are down the time put into establishing these relationships can really pay off. Especially in the midst of the ongoing economic uncertainty we find ourselves in, it is important to remember that relationships matter, whether we are talking about the local zoning board or the American presidency.

Under normal circumstances we would be making our annual trip to Washington this month with NADA to visit members of our delegation. While you may think that since COVID is not allowing us to make our trip again this year that maybe we do not need to spend time with legislators who may seem less than sympathetic, nothing could be further from the truth. When we do not make our presence felt, we lose by default. I implore all of you to reach out to your Congressional representative in your district.

Talk to them about what is happening in your business. Inform them about our inventory challenges and the concerns you may have about heading into winter without cars to sell. Let them know how many people you employ and how this might affect them.

Need help getting started? We offer a few of the highlights from this year’s agenda in this month’s cover story, and Executive Vice President Robert O’Koniewski’s column is an important resource. Please let Scott, Bob, or me know if you would like any other talking points or other tips for representing our businesses. We are here to help. t

“When we do not make our presence felt, we lose by default.”

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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 Don Sudbay, Sudbay Motors

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 Chrysler Dodge Ram Jeep Steve Salvadore, Salvadore Auto

Medium/Heavy-Duty Truck Dealer Director-at-Large [Open]

Immediate Past President [Open]

NADA Director

Scott Dube, Bill Dube Hyundai

Officers

President, Chris Connolly, Jr. Vice President, Steve Sewell Treasurer, Jack Madden, Jr. Clerk, Charles Tufankjian

Associate Members MSADA A ssociate M ember D irectory ACV Auctions Will Morris (860) 670-7867 ADESA Jack Neshe (508) 626-7000 Albin, Randall & Bennett Barton D. Haag (207) 772-1981 American Fidelity Assurance Co. Kathleen Weisenbach (402) 523-5945 America’s Auto Auction Boston Jim Lamb (781) 596-8500 Armatus Dealer Uplift Joe Jankowski (410) 391-5701 Auto Auction of New England Steven DeLuca (603) 437-5700 Automotive Search Group Howard Weisberg (508) 620-6300 Bank of America Merrill Lynch Dan Duda and Nancy Price (781) 534-8543 Bellavia Blatt Leonard Bellavia (516) 873-3000 Bernstein Shur PA Ned Sackman (603) 623-8700 Broadway Equipment Company Fred Bauer (860) 798-5869 Burns & Levinson LLP Paul Marshall Harris (617) 345-3854 CDK Global Rob Steele (508) 564-1346 Chase Auto Ken Miller (508) 902-8908 Clifton Larson Allen Rick Parmelee (860) 982-9307 Coastal Outsourced Solutions Andrea Vieira (508) 979-4733 Construction Management & Builders, Inc. Nicole Mitsakis (781) 246-9400 Cooperative Systems Scott Spatz (860) 250-4965 Cox Automotive Ernest Lattimer (516) 547-2242 CVR John Alviggi (267) 419-3261 Dave Cantin Group Woody Woodward (401) 465-7000 DealerShop Ken Grove (248) 444-6283 Brian Fleischman (716) 864-0379 DealerSocket Marco Suarez (877) 340-2677 Downey & Company Paul McGovern (781) 849-3100

DP Sales Distributors Andrew Prussack {631) 842-7549 Eastern Bank David Sawyer (617) 620-3484 Eastern Insurance Group John Berksza (508) 620-3349 EasyCare New England Greg Gomer (617) 967-0303 Enterprise Rent-A-Car Timothy Allard (602) 818-3607 Ethos Group, Inc. Drew Spring (617) 694-9761 F&I Direct Sean Wiita (508) 414-0706 Michelle Salas (508) 599-0081 F & I Resources Jason Bayko (508) 624-4344 Federated Insurance Matt Johnson (606) 923-6350 Fisher Phillips LLP John Donovan (404) 240-4236 Joe Ambash (617) 532-9320 Gulf State Financial Services Mike Sims (817) 689-1735 GW Marketing Services Gordon Wisbach (857) 404-0226 John W. Furrh Associates Inc. Pamela Barr (508) 824-4939 Key Bank Mark Flibotte (617) 385-6232 KPA Abe Cohen (503) 902-6567 LocaliQ Automotive Jay Pelland (508) 626-4334 LotLinx Brad Bass (978) 766-9000 M & T Bank John Federici (508) 699-3576 Management Developers, Inc. Dale Boch (617) 312-2100 McWalter Volunteer Benefits Group Shawn Allen (617) 483-0359 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 NEAD Insurance Trust Charles Muise (781) 706-6944

www.msada.org

Northeast Dealer Services Jim Schaffer (781) 255-6399 O’Connor & Drew, P.C. Kevin Carnes (617) 471-1120 Performance Management Group, Inc. Dale Ducasse (508) 393-1400 Piper Consulting Jim Piper (207) 754-0789 Pro-Vigil Sasha Lam-Plattes (408) 569-2385 Resources Management Group J. Gregory Hoffman (800) 761-4546 Reynolds & Reynolds Mike O’Connor (860) 462-7958 Robinson Donovan Madden & Barry, P.C. James F. Martin, Esq. (413) 732-2301 Rockland Trust Co. Joseph Herzog (508)-830-3241 Samet & Company John J. Czyzewski (617) 731-1222 Santander Bank Richard Anderson (401) 432-0749 Chris Peck (508) 314-1283 Schlossberg, LLC Michael O’Neil, Esq. (781) 848-5028 Service Credit Union Dave Pasternak (603) 812-8967 Shepherd & Goldstein CPA Ron Masiello (508) 757-3311 Southern Auto Auction Joe Derohanian (860) 292-7500 Sprague Energy Robert Savary (603) 430-7254 SunTrust Bank Michael Walsh (617) 345-6567 The Towne Law Firm P.C. James T. Towne, Jr. (518) 452-1800 Truist Michael Walsh (617) 345-6567 TrueCar Pat Watson (803) 360-6094 US Bank Vincent Gaglia (716) 649-0581 Wells Fargo Dealer Services Josh Tobin (508) 951-8334 Windwalker Herby Duverne (617) 797-9316 Zurich American Insurance Company Steven Megee (774) 210-0092

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The Roundup

Another Washington Conference Lost

By Robert O’Koniewski, Esq. MSADA Executive Vice President rokoniewski@msada.org Follow us on Twitter • @MassAutoDealers

On Monday, September 10, 2001, your MSADA contingent flew from Terminal B at Logan Airport down to Washington, D.C., for the start of NADA’s annual Washington Conference. The weather was sunny and clear all along the eastern seaboard as we headed over NYC, able to espy all the usual pertinent landmarks – the Empire State Building and the nearby Chrysler Building, the Statue of Liberty, Shea Stadium, and, anchoring the lower end of Manhattan Island, the twin towers of the World Trade Center. Coming into Reagan Airport, one could not miss Arlington Cemetery, the Capitol, White House, and the world’s largest low-rise office building, the Pentagon.

The conference began that afternoon uneventfully, almost boringly. The next morning, another gorgeous Tuesday unfolding before us, featured Oklahoma Congressman J.C. Watts as our breakfast speaker. We awaited meeting our own Congressman William Delahunt, who was slated to be the keynote speaker for the morning session in the Capital Hilton’s ballroom. The memories of that trip never fade, as we have recounted in these pages over the years.

Alas, we never made it to our Capitol Hill meetings that year. The conference was shutdown, along with the city and the nation, in the middle of Delahunt’s speech as it became clear by 9:15 a.m. the U.S.A. was under vicious attack. Rumors swirled that hijacked planes were heading for the White House down the street and the Capitol to where we were headed.

In the confluence of 20th anniversary remembrances and the feckless Biden administration’s discombobulated exit from Afghanistan, much focus was thrown rightfully on our military men and SEPTEMBER 2021

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women protecting us in a not so hospitable world.

We were reminded of the hundreds of thousands of American military personnel who took part in our response in Afghanistan and Iraq (and the lives lost), including those who joined inspired by the attacks and those who have joined during the ensuing decades who only know of the attacks in the history books. Many of these same individuals, as well as those who served in prior decades and conflicts, now walk amongst us in our members’ dealerships, as dealer principals, GMs, other managers, sales personnel, and service techs, as well as our associate members.

We owe a debt of gratitude to every one of them for their service to our country, standing in harm’s way so that we all can engage in a free-market industry that has helped to make us the greatest nation in the world. Without their commitment and service, we would just be another also-ran.

Twenty years after that infamous day, albeit under different circumstances, our ability to lobby Congress is essentially shutdown yet again for the second straight year as the politicians react to the COVID-19 crisis to restrict their constituents’ right of free petition and, instead, debate and obfuscate the origin, source, and creation of the virus in China. Millions are dead worldwide, economies have taken trillion-dollar hits including the closure of innumerable small businesses and incalculable lives turned upside with unnecessary unemployment, and yet we are no closer today knowing where the virus came from and its creation than when we were on March 10, 2020, when Gov. Charlie Baker issued his coronavirus state of emergency. And no politician has yet to articulate an end-game to the crisis.

MSADA As we go to press, Congress is still debating what to do with the $1.5 trillion infrastructure bill and the $3.5 trillion socalled “Build Back Better” spending boondoggle and tax-raising extravaganza. The Democrats’ bills have small businesses in their sights, and only intra-party gridlock can stop them.

As we reported in our Bulletin #100 (9/17/21), the U.S. House Ways and Means (HWM) Committee debated the provisions of, and amendments to, its $3.5 trillion taxand-spend reconciliation bill that includes substantial tax increases and a new $15 billion electric vehicle (EV) tax credit program.

In no uncertain terms, the bulk of the proposal is designed to punish successful individuals and businesses for being just that – successful.

A deep-dive into the legislation essentially reveals that franchised dealerships would be stripped of working capital, especially dealerships that are multi-generational family-owned. The bottom-line: The passage of legislation like this (and the Senate has yet to act on it) would cause irreparable harm to our industry as we continue to battle through the adverse impacts of the COVID pandemic.

Problematic pieces of the bill would: • Limit the qualified business income Sec. 199A deduction for pass-through businesses. Current law allows a 20% deduction for certain income that owners of pass-through businesses report on their individual tax returns. The proposal would set the maximum allowable deduction at $400,000 (single) and $500,000 (joint) return.

• Increase the top individual rate to 39.6% and would apply to taxable income over $400,000 (single) and $450,000 (joint).

• Increase the top capital gains rate from 20% to 25%, which under current law does not apply to anyone earning less than $400,000. The rate would be 28.8% when combined with a 3.8% surtax on net investment income. The new rate would apply to gains realized based on contracts signed after the date of introduction, September 13.

• Increase the top corporate tax rate to

26.5%; would apply only to businesses with income of more than $5 million (remains at 21% for businesses below this amount).

• Expand the 3.8% net investment income tax for taxpayers with greater than $400,000 in taxable income (single) or $500,000 (joint). All income, including investment income, from pass-through businesses would be subject to the tax.

• Accelerate the expiration of estate and gift tax levels by four years to December 31, 2021. This provision would cut the current lifetime estate, gift, and generation-skipping tax exemptions from the current $11.7 million level to roughly $6 million per spouse starting in January.

• Assess a tax surcharge of 3% for individuals on adjusted income over $5,000,000.

As noted earlier, the legislation would create a new $15 billion electric vehicle (EV) tax credit program. However, the legislation bifurcates the value of the tax credit accruing to the vehicle purchaser by rewarding the purchaser of a union-labor-assembled vehicle at up to an additional $4,500 above the $7,500 rewarded to a purchaser of a vehicle assembled by non-union labor. (The total will increase an additional $500 to $12,500 if the vehicle has a U.S.-made battery.) This proposal is a direct machination of the Biden administration, designed to benefit its union-based supporters at the United Auto Workers. In effect, what it seeks to do is divide dealerships into two categories: those affiliated with international nameplate manufacturers, which are exclusively non-union shops across the U.S., and the so-called domestic-based manufacturers (GM, Ford, Stellantis), which are staffed with union labor.

By picking winners and losers, the proposal potentially impacts adversely most consumers in Massachusetts and nationwide. According to NADA’s 2020 Data report, the international nameplate manufacturers had a 56.4% market share across the country versus 43.6% for the domestic troika of GM-Ford-FCA. Closer to home in the Commonwealth, our franchised dealers for the international nameplate manufacturers www.msada.org

attained a market share of more than 70%.

Obviously, such a two-tiered approach upset AIADA, which represents the national interests of the international nameplate franchised dealers, commencing an aggressive lobbying campaign against the proposal. During the HWM debate, a Democrat legislator from Michigan stated, erroneously, that NADA supported the proposal. To correct that misconception, NADA issued the following statement: “Following discussion in the House Ways and Means Committee about electric vehicle (EV) tax credits, NADA’s strong support for the process of working collaboratively toward the goal of enacting the broadest possible tax credit was misinterpreted as support for the current proposal to provide increased tax credits for unionmade vehicles.

“We have corrected this misinterpretation by making clear that while NADA supports tax credits to incentivize the purchase of EVs, we cannot support the legislation in its current form.

“NADA has for many months supported improving the consumer tax credit and has advocated for the broadest application of EV tax credits for every brand our members sell. Additionally, a simple and equitable credit that allows consumers to purchase the EV of their choice regardless of where or how it is assembled is the best way to help achieve our shared goal of achieving widespread EV adoption among consumers.”

Your Association will continue to work with NADA and AIADA to lobby our Congressional representatives on the problematic parts of the bill to ensure that the EV tax credits are fair, balanced, and inclusive on an equal footing to all makes and models which have franchised dealers selling their respective brands.

If you want to submit comments on these proposals to your member in Congress, go to house.gov/representatives.

We need to see how this political drama plays out before we can determine winners and losers. One thing is certain – the lawyers and accountants will make out just fine. t

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MSADA L EGISLATIVE S CORECARD

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SEPTEMBER 2021

BILL#

SPONSOR

SUBJECT

S183 S239 H407

Sen Crighton Sen Pacheco Rep Hunt

Amendments to Ch. 93B, the auto dealer franchise law.

SUPPORT

Joint Committee on Consumer Protection held public hearing on July 19, 2021.

H365 H400

Rep Finn Rep Howitt

RTR Law amendments to fix Model Year start date and consumer notice.

SUPPORT

In the Joint Committee on Consumer Protection; no hearing scheduled yet.

H336 H361 S234

Rep Chan Rep Finn Sen O’Connor

Creates process to appeal improperly issued Class 1 license.

SUPPORT

Joint Committee on Consumer Protection held public hearing on July 19, 2021.

S180 H421

Sen Crighton Rep Lewis

Modernize on-line purchase process.

SUPPORT

Joint Committee on Consumer Protection held public hearing on July 19, 2021.

H345

Rep Cusack

Clarifies licensure to finance small loan contracts with negative equity.

SUPPORT

Joint Committee on Consumer Protection held public hearing on July 12, 2021.

S226

Sen Moore

Amends definition of heavy-duty trucks under RTR law.

SUPPORT

Joint Committee on Consumer Protection held public hearing on July 19, 2021.

S245 H470

Sen Velis Rep Walsh

Open safety recalls notifications.

OPPOSE

Joint Committee on Consumer Protection held public hearing on July 19, 2021.

H423

Rep Linsky

Allows an OEM to open a factoryowned store, without a dealer, if there is no same line-make dealer in the state.

(The so-called “Tesla Exemption.”)

OPPOSE

Joint Committee on Consumer Protection held public hearing on July 19, 2021.

H1152 H1178 S711

Rep McMurtry Rep Phillips Sen Moore

Creates process to increase the insurance reimbursed labor rate paid to auto body

SUPPORT

Joint Committee on Financial Services held public hearing on September 15, 2021.

H1183 S657

Rep Puppolo Sen DiZoglio

Protects dealers from OEMs’ restrictions on selling non-OEM service contracts.

SUPPORT

Joint Committee on Financial Services held public hearing on September 15, 2021.

H1070 S719

Rep Driscoll Sen O’Connor

Creates administrative appeal process for vehicle owners to seek diminished value of damaged vehicle returned to vehicle owner.

SUPPORT

Joint Committee on Financial Services held public hearing on September 15, 2021.

H3477 H3494 S2372

Rep Golden Rep Howitt Sen Rush

Creates statutory process for allowing temp tags for out-of-state sales.

SUPPORT

In the Joint Committee on Transportation; no hearing scheduled yet.

H2004

Rep Jones

Sleepy’s-related affirmative defense.

SUPPORT

In the Joint Committee on Labor and Workforce Development; no hearing scheduled yet.

H3321 H3368

Rep Hill Rep Roy

Promote sale of EVs.

SUPPORT

Joint Committee on Telecommunications, Utilities, and Energy held public hearing on July 28, 2021.

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Massachusetts Auto Dealer www.msada.org

Troubleshooting

MSADA

AG Settlement Shows AG Targeting Our Industry

By Peter Brennan, Esq. MSADA Staff Attorney

In the January 2021 edition of Massachusetts Auto Dealer, we warned that Massachusetts Attorney General Maura Healy would have some time on her hands after filing or joining over one hundred lawsuits against the prior presidential administration, and that enforcement actions in the Commonwealth would likely be on the uptick as a result.

In fact, this column made the following prediction, which now seems prescient: “If you think that the office of the Massachusetts Attorney General is going to reduce its staff to reflect the thousands of attorney hours that will presumably not be spent suing the Biden administration, then you are not familiar with Massachusetts politics or the state payroll. Instead, those attorneys will be reassigned and redirected to pursue enforcement actions likely to generate monetary settlements for the Commonwealth. Consequently, it would be wise to stay out of the crosshairs of the attorney general’s office as it looks for targets to replace the white whale that the office had been pursuing.”

In early September, the AG’s office announced a record settlement in which national subprime auto lender Credit Acceptance Corporation (CAC) will pay more than $27 million due to a variety of alleged unfair practices relating to the company’s role in the origination, collection, and securitization of subprime auto loans. The settlement requires CAC to pay a total of $27.2 million and provide debt relief and credit repair to thousands of Massachusetts borrowers. Over 3,000 borrowers across the state are expected to be eligible for

settlement funds, and the settlement also requires CAC to make changes to its loan handling practices.

The CAC settlement follows a similar 2017 settlement with Santander in which the lender was accused of funding auto loans that it did not have a reasonable basis to believe borrowers could afford. That settlement ultimately cost Santander $22 million and led to changes in the lender’s automobile loan practices.

After finding a few profitable targets, we don’t anticipate that the AG’s office is finished with the Massachusetts automobile industry.

Previously, we have warned that an area that is expected to draw increased regulatory attention is the sale of voluntary protection products (VPP), a broad designation that includes various products designed to protect a customer against some occurrence beyond their control, such as acts of God like fire, flood, hail, or other damages to the vehicle, as well as personal afflictions that may befall the customer, such as disability, unemployment, or death.

These products help give customers peace of mind during what is generally one of the most important financial decisions that they will make in their lives - the purchase or lease of a vehicle.

State and federal regulators have been increasingly focused on regulating the sale of VPPs. In 2018, the Consumer Financial Protection Bureau reached a settlement with Santander in which the lender was fined approximately $12 million for failing to properly describe the benefits and limitations of its GAP product. In the CFPB’s September 2019 Supervisory Highlights report, the areas of automotive loan origination and abusive acts and practices when selling GAP products are highlighted.

It would be wise to expect that state and federal regulators will continue to pursue enforcement actions regarding the sale of these products.

Dealers should review the NADA/NAMAD/AIADA Model Dealership Voluntary Protection Product Policy, which is www.msada.org

designed to protect dealers from legal liability resulting from the sale and marketing of VPPs. The Model Policy can be found at www.nada.org/voluntaryprotectionproducts for NADA members. The Model Policy should be reviewed with legal counsel and personalized for your dealership. As the sale of VPPs continues to come under the legal and regulatory microscope, the Model Policy can help your dealership avoid unnecessary headaches.

As the Attorney General’s office continues to pursue enforcement actions relating to various aspects of the automotive industry in the Commonwealth, your dealership may find itself the target, either directly or indirectly, of an investigation. Under the Massachusetts Consumer Protection statute, M.G.L. c. 93A, the AG may issue a civil investigative demand (CID) to any person or entity who may have records or knowledge as to alleged wrongful acts that violate the statute. The person or business that receives a CID may not be the the target of the investigation but may have records that bolster the charges against the main target. For example, it is a near certainty that dealer records obtained through CIDs were used in the settlements described above.

A CID issued by the AG will typically request the production of business records and may request that the business owner produce a witness for deposition. If you receive a CID, you must act fast to take certain steps to limit the scope of the investigation, or you will waive the right to later object if the investigation becomes litigation. Most importantly, do not ignore the CID, and do not respond to the CID without first contacting your legal counsel. t If you have any questions regarding this column, please contact Robert O’Koniewski, MSADA Executive Vice President, at rokoniewski@msada.org or Peter Brennan, MSADA Staff Attorney, at pbrennan@msada.org or by phone at (617) 451-1051.

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AUTO OUTLOOK

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RACE TO THE FINISH COVER STORY

Capitol Affairs While the NADA Washington Conference was put on hold, dealer issues remain at the forefront on Capitol Hill

By Stephanie Power

“I have seen that the more we interact with our representatives, the more they know our issues and listen. Sometimes that means they will even act in a way consistent with moving us forward.”

-Scott Dube, NADA Director

SEPTEMBER 2021

As the coronavirus pandemic continues to be a global health crisis, auto dealers are facing challenging, uncertain times. A potential new political challenge looms, as Congress seeks to pass a proposed $3.5 trillion spending bill that would rebuild infrastructure and expand healthcare, education, and childcare support, while substantially raising corporate taxes, taxes for the individually wealthy, and family-run businesses.

“A deep dive into the legislation essentially reveals that franchised dealerships would be stripped of working capital, especially dealerships that are multi-generational family owned,” said Robert O’Koniewski, MSADA Executive Vice President.

“In no uncertain terms,” said O’Koniewski, “the bulk of the proposal is designed to punish successful individuals and businesses for being just that—successful.”

NADA highlights several points of the proposed tax hikes that could affect auto dealers. The proposed legislation would “repeal or significantly scale down the Section 199A deduction for small-business taxpayers,” which, according to NADA, provides critical tax relief to pass-through businesses. The top individual income tax rate would rise from 37 to 39.6 percent, on top of applying a 3.8 percent Medicare surtax to all forms of income, increasing the top rate to 43.4 percent. The bill would also raise the corporate tax rate from 21 to 28 percent.

The budget reconciliation legislation would also create a $15 billion electric vehicle tax credit program that could increase the current $7,500 tax break up to $12,500 for EVs assembled by union labor and those with American-made batteries.

Massachusetts Auto Dealer www.msada.org

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According to O’Koniewski, the bill would divide dealerships into two categories: those affiliated with international nameplate manufacturers, which are exclusively non-union shops across the U.S., and the so-called domestic-based manufacturers (GM, Ford, and Stellantis), which are staffed with union labor.

During a September House Ways and Means Committee debate on the topic, Rep. Dan Kildee (D-Michigan) recognized Rep. Terri Sewell’s (D-Alabama) concerns that this should not be a choice between unionized and non-union workers.

Rep. Kildee said publicly he is committed to working on Rep. Sewell’s concerns as the bill moves to the House floor.

“By picking winners and losers, the proposal potentially impacts adversely most consumers in Massachusetts and nationwide,” said O’Koniewski.

There is additional concern the current tax credit applies to too few electric models.

According to NADA, the organization is advocating to broaden the EV tax credits for “every brand our members sell to achieve widespread EV adoption among consumers.”

NADA is presently advocating for several other issues on behalf of auto dealers, including:

“By picking winners and losers, the [EV rebate] proposal potentially impacts adversely most consumers in Massachusetts and nationwide.”

Robert O’Koniewski, MSADA Executive Vice President

www.msada.org

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RACE TO THE FINISH CAPITOL AFFAIRS FET on New Heavy-Duty Trucks

An effort to repeal a 12 percent federal excise tax (FET) on new heavy-duty trucks has bipartisan support in Congress and would usher in a green new era for the American tractor-trailer and heavy-duty trucking industry.

NADA points out more than half of the Class 8 trucks on the road today are over 10 years old, but the FET is a costly barrier to replacing them with models that meet recent federal emissions and fuel-economy mandates. Their website states the FET “routinely adds $22,000 or more to the price of a new heavy-duty

NADA is advocating to preserve a state’s traditional role to license and regulate vehicle commerce, provide consumer protections, and promote vehicle price competition within its borders.

These rights are reserved to the states under the 10th Amendment to the Constitution.

“The key to advancing the consumer adoption of both electric and autonomous vehicles is a strong partnership of vehicle manufacturers and retailers with a wide and competitive distribution network, which will help drive vehicle affordability and consumer demand,” NADA argues.

“More than 16,000 U.S. franchised dealers, who use their own capital to invest in personnel, land, buildings, and vehicle inventory, create strong competition that makes vehicles more affordable for buyers.”

Grounding All Recalled Used Vehicles

truck. Congress should repeal the FET to protect U.S. jobs, replace older trucks with newer, greener trucks, and promote the adoption of advanced technology trucks.”

The FET was first enacted in 1917 to help fund World War One and is the highest percentage excise tax Congress levies on a product.

On July 22, Sens. Todd Young (R-Indiana) and Ben Cardin (D-Maryland) introduced S.2435, a bill to repeal the FET. On July 29, thirty House Democrats, including Massachusetts Congresswoman Lori Trahan, sent a letter to House Democratic leaders urging repeal and replacement of the FET.

State Vehicle Franchise Laws for Electric and Autonomous Vehicles

As Congress considers the infrastructure package that would regulate EVs and autonomous vehicles, NADA is representing the essential role dealers play in promoting widespread consumer adoption of EVs. SEPTEMBER 2021

A recall bill introduced by Sen. Richard Blumenthal (D-Connecticut) may be offered as an amendment during floor consideration of the Senate transportation bill. NADA opposes this, arguing that the legislation would cripple the used-vehicle market by halting a dealer’s sale of used vehicles under any open recall.

The bill, S.1835, would require grounding of any recalled vehicle until the issue was fixed, regardless of the nature of the issue. The recall could be as simple as a peeling sticker or an incorrect phone number in the owner’s manual.

A study by J.D. Power found that enactment of legislation that was nearly identical to S.1835 would result in an average “trade-in tax” of $1,210, with some consumer trade-ins suffering devaluations of up to $5,000. By devaluing trade-ins and not regulating private sales, vehicle owners would be incentivized to sell their vehicles in the private market, where almost no safety or consumer protections exist.

This legislation would make it less likely that recalled vehicles get fixed, and the bill’s proponents have offered no supporting safety analysis – despite an estimated $1.1 billion cost to consumers.

Maintaining Momentum

While dealers were unable to walk the halls of Congress in person this year, NADA Director Scott Dube says MSADA members should continue to make their voices heard by inviting representatives to their stores and looking to NADA for guidance on what and when to speak out on certain bills.

“I have seen that the more we interact with our representatives, the more they know our issues and listen,” he says. “And sometimes that means they will even act in a way consistent with moving us forward. Unfortunately this year, due to circumstances beyond our control, we had to cancel again our live Washington Conference visits in D.C. In the alternative, I ask our members to contact your individual legislators to chime in on our issues. We need to always stay in front of our elected officials.” t

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NEWS NEWS the NEWSfrom from Around from Around Around the Horn Horn NEWS

NEWS the Horn MEDFORD

BOSTON

Herb Chambers Opens New BMW Store

Hyundai Ioniq 5 Robotaxi Ready For the Streets

The Herb Chambers Companies announced the opening of the new BMW of Medford at 60 Mystic Avenue, Rte. 38.

The newest addition to the Herb Chambers portfolio features a selection of pre-owned luxury vehicles and an ultramodern Service Center, offering BMW clients increased availability for their service needs.

Motional, in collaboration with Hyundai, has announced its first robotaxi. The Ioniq 5 is based on Hyundai’s Ioniq 5 all-electric vehicle that debuted earlier this year and features Motional autonomous technology to create an SAE Level 4 autonomous vehicle that can drive without a driver.

Motional, a joint venture between Hyundai Motor Group (OCTUS: HYMTF) and global technology company Aptiv, announced an expansion of its West Coast operations earlier this month, including investments in an operations facility and road testing in Los Angeles, a San Francisco Bay Area office and a doubling of its California team’s size, to support on-road testing of the robotaxi.

Motional is testing vehicles in a number of areas, including the New England region where it is working with regional utility Eversource on a program that uses Motional vehicles operating within Eversource’s service territory of Massachusetts, New Hampshire, and Connecticut to collect data and information on Eversource’s utility infrastructure and report that data back to the utility.

“We are thrilled to open BMW of Medford because it expands service availability to our valued BMW clients and brings to life our long-term strategy to best meet the specific needs of all our customers,” said Herb Chambers. “Our goal is always to exceed customer expectations, and this new location allows us another opportunity to truly provide the best auto buying and service experience for our valued clients.”

CAMBRIDGE

MIT Finds Tesla Autopilot Issues A study on Tesla’s Autopilot system and its effects on driver behavior has found that it made those at the wheel more inattentive.

The Massachusetts Institute of Technology study, conducted over more than a year in the Boston area, examined whether automation changed how drivers looked at the road.

The MIT study looked at data from 290 human-initiated Autopilot (AP) disengagements and replicated observed glance patterns across a range of drivers, using what was called Bayesian Generalized Linear Mixed models.

It found that drivers’ “off-road glances were longer with AP active than without and that their frequency characteristics changed.”

The study concluded that visual behavior patterns of drivers changed before and after AP disengagement: “Visual behavior patterns change before and after AP disengagement. Before disengagement, drivers looked less on the road and focused more on non-driving related areas compared to after the transition to manual driving. The higher proportion of off-road glances before disengagement to manual driving was not compensated by longer glances ahead.”

SEPTEMBER 2021

Massachusetts Auto Dealer www.msada.org

LONGMEADOW

TommyCar Auto Group Holds Annual Charity Golf Tournament In memory of their father, western Massachusetts auto dealer Tom Cosenzi, his son and daughter raised money this month for neuro-oncology research.

Tom Cosenzi, founder of TommyCar Auto Group, was only 52-years-old when he died from brain cancer in 2009. Since then, the “Tom Cosenzi Driving For the Cure” charity golf tournament has raised more than $1 million.

Daughter Carla Cosenzi spoke with 22News as more than 180 golfers began this years’s 13th annual fundraiser, “It’s a very emotional day. It’s a day to remember my dad, and my dad’s memory, with a lot of our associates playing as family. It’s a day when we raise money for Dana-Farber Cancer Institute.”

Carla estimates Tuesday’s charity golf at Longmeadow’s Twin Hills Country Club raised close to $100,000 for neuro-oncology research at Dana Farber.

MSADA

NEWS from Around the Horn

WESTWOOD

Group 1 Purchases Thirty Prime Automotive Dealerships Group 1 Automotive Inc. of Houston entered into an agreement to purchase 30 Prime Automotive dealerships from New York-based GPB Capital Holdings for $880 million, the company announced in September.

Several Prime dealerships in Massachusetts have previously been sold to others over the course of 2021.

“Group 1 has successfully operated in the Northeastern U.S. for many years. We are pleased to have this opportunity to leverage our existing cost structure and to further diversify our U.S. footprint,” said Earl J. Hesterberg, Group 1’s President and Chief Executive Officer.

Group 1 owns and operates 188 dealership in the U.S., United Kingdom, and Brazil, and already operates dealerships in Massachusetts and New Hampshire. The sale price was disclosed in a filing with the Securities and Exchange Commission.

BOSTON

Ciccolo Makes BBJ TopCharitable Donor List The Boston Business Journal recently compiled a list of companies that paid out at least $100,000 to Mass.-based charitable organizations in fiscal 2020, with Village Automotive Group earning 77th place among heavyweights such as major hospital systems and major banks.

Village Automotive owner Ray Ciccolo is widely known for his contributions to charity, including long-running orphanage work and frequent donations to those in need from natural disasters.

PITTSFIELD

Haddad Auto Group Donates to Area Teachers The Haddad Auto Group is giving back to the teachers of Berkshire County for the 2021-2022 school year. The Haddad Auto Group will be giving eight Berkshire County teachers $500 each towards their classroom wish lists.

The dealership group used K-12 teacher wish lists posted on Amazon to make the donations across Berkshire County.

“Our teachers were asked to go above and beyond the last year,” Haddad Auto Group President George Haddad said.

“They already do so much for our kids. We would like to help make this school year a little easier for them.” t www.msada.org

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Information Security

Why You Should Not Trust Your IT Team By Michael Couillard OCD Tech

“If cyber attackers are actively working to hack [my small organization], we have way bigger problems.”

This was a direct quote during a consultation with a prospective client recently, with which those of us in the cybersecurity realm are all too familiar. I had to focus hard to conceal the eye rolling and face palming that was going on in my head. Cyber criminals actively seek out “soft targets” such as an automobile dealership, rental business, or logistics company in large part due to the neglect in cybersecurity compared to other industries such as healthcare and banking. This lack of prioritization can have devastating consequences, not only in near-term financial losses while systems are down, but also in the long term through litigation and loss of client trust.

A prime example of this was the 2015 breach of Starwood Hotels’ reservation system. Prior to this attack there was not much attention being paid to the hospitality industry outside of banking information being protected. Reward status, itineraries, home addresses, email addresses, and other important information was not seen as sensitive. The breach was investigated internally and reported as being isolated to a few systems which were contained and remediated. It was not until 2018 that the true extent of the attack was discovered, as the bad guys had effectively hidden themselves within the network and laid low for several years SEPTEMBER 2021

before striking fast and hard. The attack cost the company $28 million directly in the US, and then another 18.4 million Euro in fines.

Need something more directly related to drive the point home? The Canadian division of Enterprise rent-a-car was breached just this year with a crippling ransomware attack, compromising over 120 GB worth of data and a minimum of 10,000 records of customer data. The attackers threatened to release all information publicly if the ransom was not paid.

The problem with this is that there is no guarantee that the attackers are properly securing that data themselves and will not go out and share it anyway.

The same types of information stored by the hospitality and rental car industries are, of course, also kept by automobile dealerships, and there is a fundamental responsibility to actively work to protect this information. In terms of cost, it is far cheaper to properly secure your organization on the front end than it is to pay for incident response. In addition to the very real risk of a security breach, there is a likelihood of substantial fines for not being in complete compliance.

How do you do this? A complete, formal assessment by an independent firm specializing in IT auditing and cybersecurity is your first step.

“Jane the IT person” has one goal every day: To make everyone’s life easy. Jane doesn’t want to make you change passwords or even remove the sticky note that has them written on it and stuck to your monitor. “Jane” does not want to hound you about multifactor authentication or encrypting your files. “Jane” does not even want to bother interrupting your meetings with a reminder not to leave the company laptop in your unlocked car during lunch. “Jane” wants to make everyone happy and be a team player. This

Massachusetts Auto Dealer www.msada.org

is why everyone loves “Jane”, and this is precisely why we should not be relying on “Jane” to be the bad guy. Aside from not wanting to burden her coworkers with seemingly cumbersome and unnecessary barriers to selling good people fine automobiles, “Jane” may not have the expertise or motivation to add to her already significant workload of fixing “Jim” the salesman’s laptop after he dropped it for the fourth time this month. Bringing in an independent firm specializing in being the “bad guy” solves all of these challenges.

Next, you will need to implement the recommendations of the independent assessment. This typically consists of patching and hardening the physical hardware, properly segmenting and securing the network, and training of personnel.

And finally, you will need to make routine evaluations and improvements. We all know what happens during audit season.

From suddenly being reminded to actually log out of your computer before leaving for lunch to making sure customer files are locked away, human nature typically kicks in immediately following the “bad guys” leaving. The files come back out; the sticky notes get put back on. A whopping 98 percent of cybersecurity attacks rely on social engineering. This makes it even more important for routine follow ups, ongoing training, and continuous internal and external check ups on compliance.

Cyber security does not need to be the enemy of productivity. An independent firm can work with your current IT team, rather than against it, and help them implement a personalized integration plan tailored to meet the needs of the unique organization, spearheaded by the current IT team. t Michael Couillard is an IT Security Analyst at OCD Tech. He can be reached at mcouillard@ocd.com.

MSADA

LEGAL

Ready for a Domestic Violence Leave Request?

By Joseph W. Ambash, Jeffrey A. Fritz, and Joshua Nadreau of Fisher Phillips, LLC The Massachusetts legislature enacted the Domestic Violence and Abuse Leave Act (DVLA) back in August 2014. Some seven years later, we finally have some guidance from the Supreme Judicial Court on how it should be interpreted. Not surprisingly, the court sided with the employee, holding (1) an individual who has not yet started working may be an employee for purposes of the statute, and (2) an employee need not actually request leave to be protected from the law’s anti-retaliation and interference claims. The holding, in essence, means you may be on notice of a need for domestic violence leave and not even know it.

The DVLA Generally Substantively, the DVLA requires all employers with 50 or more employees to provide up to 15 days of leave in any 12-month period if (1) the employee, or his or her family member, is a victim of abusive behavior, and (2) he or she takes the leave for purposes closely related to such behavior, including obtaining medical attention or counseling, securing housing, attending court proceedings, and obtaining other victims’ services. The leave may be paid or unpaid at the employer’s discretion.

As for notice of an employee’s need for such leave, the law provides that, except in cases of imminent danger to an employee’s (or his or her family member’s) health and safety, an employee seeking leave “shall provide appropriate advance notice of the leave to the employer as required by the employer’s leave policy.”

And like most employment statutes, the DVLA prohibits employers from (1) interfering with, restraining, or denying an employee’s exercise of rights under the law, and/or (2) retaliating against employees (i.e., disciplining or discharging them) for doing so.

Missteps here can be costly. Employees aggrieved by any related employment

practices may recover treble damages, as liquidated damages, for any lost wages and other benefits, as well as attorneys’ fees and costs.

SJC Interprets DLVA Broadly In August 2021, the SJC issued its decision in Osborne-Trussell v. Children’s Hospital Corporation. The facts of the case can be summarized as follows. In short, the plaintiff claimed to have accepted an offer of employment but had not yet started working. During the time between acceptance and her first day, her abuser posted false statements about her on social media and “tagged” the employer. The plaintiff alleges she told the employer about her abuser’s behavior, provided to HR a copy of a harassment prevention order she had previously obtained against her abuser, and shared she was pursuing enforcement of the order. Importantly, the plaintiff never requested any leave (under the DVLA or otherwise). A couple of weeks later, the employer rescinded the offer of employment.

The plaintiff sued, claiming, among other things, the employer interfered with her rights under the DVLA and/or retaliated against her exercising them. The employer moved to dismiss, in part on the basis that she was not yet an employee and, in part, based on fact that the plaintiff never requested any leave (and, accordingly, there was nothing with which to interfere and/or for which to retaliate).

The SJC (predictably) concluded, under these circumstances, the plaintiff was an “employee” even though she had not started working. The SJC reasoned this conclusion is consistent with the remedial purpose of the law.

The SJC then articulated the standard to be applied to DVLA retaliation claims.

In short, and not surprisingly, the plaintiff must allege (1) he or she availed him or herself of a protected right under the DVLA, (2) he or she was adversely affected by an www.msada.org

employment decision, and (3) a causal connection exists between the former and the latter. The employer, then, would need to show a legitimate, non-retaliatory reason for taking the adverse action.

The SJC then considered whether the plaintiff gave “appropriate advance notice” of DVLA leave when she informed the employer her abuser had violated the harassment prevention order and she was cooperating with law enforcement. The court again considered the remedial purpose of the statute and held these facts were enough to put the employer on notice that the plaintiff might need a DVLA leave in the future, which, it concluded, was sufficient “notice” under the statute. Thus, the case was allowed to proceed.

Takeaways for Employers For employers generally, this decision means they may be on notice of a “leave request” regardless of whether an employee (or applicant) requests leave. Given the SJC’s decision, an employee’s report of domestic violence could be considered, in effect, an implicit request for leave under the DVLA, regardless of whether the employee actually requests leave. That the circumstances suggest they might need a leave in the future appears to be enough. If you are contemplating or take any adverse employment action against any employee who suggests or implies they are dealing with domestic violence issues, you should consult employment counsel before doing so, as missteps can be very costly. t

Joe Ambash, Jeff Fritz, and Josh Nadreau are Partners in the Boston office of 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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AUGUST 2021

Patrick Manzi

NADA Senior Economist

Boyi Xu

Economist

New light-vehicle sales in August continued to decline amid still-shrinking inventory on dealer lots. Sales in August totaled a SAAR of 13.1 million units, the lowest level since June 2020’s 13 million. August’s sales rate reduced the year-to-date SAAR to 16.1 million units from 16.5 million last month. August began with record-low inventory levels, and by month’s end total

SEPTEMBER 2021

inventory had fallen an additional 5.2% for a new record low of 1.06 million units. Given the continuing announcements of plant shutdowns throughout the industry, sales for the rest of the year will likely be limited by these inventory constraints.

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ACCOUNTING

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AIADA Brief

MSADA MSADA

International Nameplate Dealers Are Under Fire

By Cody Lusk AIADA President & CEO

For several months now, there has been a federal budget provision working its way through Congressional committee rooms both in the Senate and the House of Representatives that would offer consumers additional tax credits if they purchase an electric vehicle assembled in a union-represented plant. It is a proposal so ludicrous, so offensive to the majority of American workers, and so at odds with the goal of addressing climate change through EV purchases, that most auto industry insiders have dismissed it out of hand.

Even as we here at AIADA wrote opeds, gave interviews, and raised the alarm through our grassroots network, we were told again and again that this thing had no

trillion spending bill. In fact, the latest version of this scheme actually ups the offer for union-built vehicles to $4,500 in tax credits while lowering the tax credit value of American-built vehicles (like the Hondas built in Ohio and the Toyotas built in Indiana and Kentucky).

This should be of particular interest to Massachusetts dealers because: 1) International brand nameplates assembled in non-union plants make up 75% of the Massachusetts new vehicle market share.

2) The 1st District of Massachusetts

“You only need a fair and level playing field in which to operate your stores and serve your customers.” legs and would never make it off Capitol Hill. Such a blatant transaction between UAW lobbyists and Democratic politicians had no chance of withstanding even the lightest public scrutiny.

And yet the union EV language was never scrapped. Instead, the provision has gained steam, recently passing through the House Ways and Means committee to be included in the Democrats’ $3.5 SEPTEMBER 2021

is represented by Congressman Richard Neal, the Chairman of the House Way and Means Committee, which just approved this provision.

3) That means YOUR Representative is using YOUR tax dollars to make international nameplate brand vehicles less affordable for Massachusetts consumers.

Why is any of this happening? Primarily because in the political reality we cur-

Massachusetts Auto Dealer www.msada.org

rently inhabit, the only good American worker is a union worker. Everyone else is expendable. And when I say everyone, I include the 131,000 international nameplate employees in the U.S. and the 542,000 International nameplate dealership employees.

If you think those jobs and communities should matter to Richie Neal – if you think YOUR store and employees should matter to him – I ask you to stop what you are doing and call his district office directly at (413) 785-0325. He needs to understand that the automotive retail marketplace functions just fine without his putting his thumb on the scale in favor of a specific type of American worker. In Massachusetts, you do not need government interference to succeed. You only need a fair and level playing field in which to operate your stores and serve your customers. You can contact your own Congressional lawmakers directly at AIADA.org/EV and hit the “take action” button.

Richie Neal and his fellow Democrats need to stop playing politics with the lives of American workers and leave car sales to those who know what they are doing – dealers. t

MSADA

TRUCK CORNER

Dealer Advocacy Starts in Our Own Backyards

By Steve Bassett Chairman, American Truck Dealers Steve

is

the

dealer

General Truck Sales in Muncie, Indiana. He also has locations in Indianapolis, I ndiana , and T oledo , O hio . H e sells V olvo , Isuzu, H ino, and M ack trucks. principal

of

It takes concerted effort and unified voices to effectuate positive change It takes concerted effort and unified voices to ef- our local communities or how our truck dealerships fectuate positive change in the commercial truck operate. But when they hear from you or when they dealer world. And today, with an onslaught of new visit your dealerships, they gain a better undergovernment regulations and Congress considering standing of what we do and what we provide for one of the largest tax and spending bills in history, our communities.

This is the work that starts with as little effort as I am calling on my fellow dealers to advocate for our industry: Start by joining your state dealer as- an email or a few phone calls, and hopefully results in an in-person meeting. The more of us that are sociation. involved and engaged, the more impactful our work ATD’s legislative and lobbying efforts have always been fueled by our truck dealer members, but will be later down the road.

Registration for ATD Show 2022 our work cannot be done alone. We need engaged and informed dealers to coalesce and build grassIs Now Open ATD Show 2022 is back in Las Vegas and offers roots efforts at home in state congressional districts across the country. I have seen this time and time a full program of comprehensive education, innovative products for all areas of the dealership, and again: The groundwork we solidify at home is the numerous networking opportunities. first step in building a strong network that can tackThe Show takes place le critical issues that Thursday, March 10, often start at the state “I encourage all ATD members through Sunday, March level. But it is up to each of us to begin to be aware of our most recent 13, with all events held laying a brick in the challenges and stay up to date exclusively at the Encore Las Vegas. foundation. on your local issues.”

Attendees will also If you are already have access to NADA part of your state dealer association, I applaud you and encourage Show 2022 events and activities. Visit the NADA you to take it a step further: be an active member; Show 2022 website for more details at www.show. run for a seat on the board; and cultivate long-term nada.org. relationships with your state elected officials. As I August Class 8 Retail Sales Rise 2.8% have said before, get to know your state association Year-Over-Year executive and find out how you can help in current U.S. Class 8 retail sales in August inched slightly campaigns, grassroots activities, or even emergency higher as truck makers posted mixed results comrelief efforts for your state dealers. pared with a year earlier, WardsAuto.com reported.

There is never any down time in our industry. At this very moment, your state dealer association is Class 8 sales bumped up 2.8% to 18,176 compared battling a hotbed issue, whether it is franchise laws with 17,685 in the same 2020 period, according or the future of electrification throughout the truck to Wards. The modest gain unfolded as “the chip shortage may have some light at the end of the tunindustry.

I encourage all ATD members to be aware of our nel, but it continues to slow equipment capacity most recent challenges and stay up to date on your growth,” Tim Denoyer, vice president of ACT Research, said in a release. local issues. The reality is many elected officials do t not always understand the contribution we make in

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NADA Update

By Scott Dube

Making a Difference Nationwide Scott Dube, President of Bill Dube Hyundai and MSADA Immediate Past President, represents NADA’s Massachusetts members on the NADA Board of Directors. He can be reached at scott@dubecars.com.

While September is usually a busy month for NADA as we host hundreds of dealers from around the country in our Nation’s capital for our Washington Conference, COVID-19 has upended most of those plans for a second year. Rest assured that the substance of our continued legislative advocacy remains unchanged, and, as always, both MSADA and NADA continue to urge you to make your voice heard with your representatives in Washington. Now, more than ever, your voice matters. And if you are not bending the ear of your representative, someone else with an entirely different agenda will gladly take the time instead.

In addition to the details below, I wanted to share the recently updated franchise meeting schedule at the NADA Show in Las Vegas next March. In addition to the “wow” factor this year’s event promises, these meetings provide an important opportunity for dealers to make their voices heard.

The 2022 franchise meeting schedule is as follows: • Friday, March 11, 2022: Mazda, Mercedes-Benz, Nissan, Porsche, and Stellantis • Saturday, March 12, 2022: Acura, BMW, Buick-GMC & Chevrolet, Cadillac, Ford, Genesis, Honda, Infiniti, Kia, Lincoln, MINI, Subaru, and Volkswagen • Sunday, March 13: Audi, Hyundai, Lexus, Mitsubishi, Toyota, and Volvo If you have any questions about these meetings or any aspect of next year’s show, please do not hesitate to reach out.

NADA Show Registration Now Open Registration opens in two weeks for the Auto Industry Event of the Year, NADA Show 2022. Starting September 13 through November 11, take advantage of a $100 savings and preferred hotel selection with early bird registration.

Before registration opens, check out some of the exciting new offerings in store for attendees at NADA Show 2022 in Las Vegas.

Enjoy the Grammy Award-winning band Train as they perform at an epic, tailgate-style celebration in Vegas’s state-ofthe-art football stadium! NADA Show registration includes SEPTEMBER 2021

tickets to the Welcome Kickoff Reception for NADA dealers, managers, and their guests.

New this year, Resorts World Las Vegas has been added to the extensive list of NADA official discount hotels. This 88-acre complex is the first completely new resort-casino on the Las Vegas Strip in over a decade, combining three separate Hilton affiliated hotels of Hilton, Conrad, and Crockfords (LXR), restaurants, entertainment, and gaming. Plus, it is the only hotel that is connected to the LVCC Loop which is complimentary and a two-minute ride to the Show.

There is more space than ever for face-to-face business connections at the Las Vegas Convention Center, now with over 14 million square feet, including the newly renovated West Hall, which boasts an open-air atrium with a gigantic 10,000-square-foot digital screen.

NADA Show delivers the most comprehensive education programming in the auto industry. Hear from NADA Academy instructors and other industry experts about trending topics and global issues affecting your dealership(s) at the department-focused educational workshops. Interact with peers and share real solutions in the Exchange. Topics will include employee hiring/retention, digital marketing, legal and regulatory overviews, fixed ops, and much more.

Plus, this year, NADA education will feature a new Business Essentials and Innovation track with workshops featuring the latest, most vital information and innovations to your operations.

Learn the latest from your franchise representatives, get to know other successful dealers under your brand, and talk directly to automakers at the 2022 Franchise Meetings. Celebrate the return of the in-person NADA Show in Las Vegas with an exciting Welcome Kickoff Reception at the brandnew, state-of-the-art Allegiant Stadium where you can reconnect with the auto industry’s dealers, OEMs, and other key players. Plus, returning this year, meet your peers and dive into timely discussions on topics selected by attendees at The Exchange.

Be a part of NADA Show 2022 in Las Vegas! Register at www.nadashow.org.

Dealers Donate to Education Initiatives Across the country, students are embarking on a new school year. While coronavirus has continued to impact school procedures and formats, America’s franchised new-car dealers remain committed to supporting education in the local communities where they live and work. From supporting teachers to donating directly to schools, dealers know the value of education in helping the next generation. Here are some examples.

Massachusetts Auto Dealer www.msada.org

MSADA “For more than a decade, the Emergency Relief Fund has Haddad Auto of Massachusetts made a donation to the helped dealership employees and their families weather all teachers that shape the lives of students. The Pittsfield-based kinds of natural disasters and tragedies, from Hurricane Kadealership group, which includes Toyota, Subaru, Hyundai, trina and Harvey, to wildfires, tornadoes, and floods,” said and Nissan franchises, recently donated $4,000 to support Sykora, who is a Ford dealer in West Texas and a former teachers of Berkshire County. The donation will offer eight NADA chairwoman. “The foundation is poised and ready to teachers $500 each to use toward their classroom wish lists. help dealership employees with needed financial assistance “Our teachers were asked to go above and beyond the last — and fast.” year. They already do so much for our kids. We would like NADA has been in close contact with Will Green, Louto help make this school year a little easier for them,” said isiana Automobile Dealers Association President, who has Haddad Auto Group president George Haddad. toured the state to assess damages at dealerships and among Laird Noller Ford in Topeka, Kansas, recently donated dealership employees. $20,000 to Topeka Public Schools in memory of the dealer“The NADA Foundation is a truly unique way to help dealship’s recently deceased namesake. “Laird was always a big ership employees and their families impacted by Hurricane part of the community and he knew, without the community, Ida,” said Green. “The Foundation was pivotal in helping we would not be here the 60-plus years we have been,” said Louisiana families after the Baton Rouge floods of 2016, and Chelsea Ramirez, Laird Noller Ford business development going back to Hurricane Harvey. It is the best way for dealers manager. The dealership’s most recent donation will be used to help America’s network of dealership families.” for uniforms and other supplies for students at Lowman Hill NADA is also working College Prep Academy. with dealer associations in In Lynchburg, Virginia, “As a new school year kicks off the Northeast to help employWilliam Marvin Bass Elees impacted by Hurricane ementary School received with some uncertainty, one Ida. Employees impacted by support from a local auto thing is for sure: Dealers will Hurricane Ida can apply for dealer with a $3,000 grant continue to support education.” assistance on the Foundation from Terry Subaru. website at www.nadafoundaTo thank Lakeview Midtion.org. Emergency grants up to $1,500 are given based on dle School in Cortland, Ohio, Apostolakis Honda presented need and a sliding scale developed by the Foundation. a $2,000 check to the school. The school’s principal plans to use the dealership’s donation to support the education for stuNADA Statement on Auto Innovators’ EV dents who have been impacted by the COVID-19 pandemic.

In advance of the 2021-2022 school year, Apostolakis Honda Charging Infrastructure Principles donated school supplies to students at the middle school as NADA released the following statement in connection students prepared to get back in the classroom. with the Alliance for Automotive Innovation’s EV Charging Holmes Honda in Shreveport, Louisiana, also provided Infrastructure Principles: school supplies to local students. The dealership recently “America’s franchised new-car dealers are all-in on EVs, donated 300 backpacks filled with school supplies for local and more importantly are absolutely essential to the widefamilies. “Our goal here at Holmes Honda is to make things spread adoption of EVs by mass-market car buyers. Dealeasy and make the school year easier for families during ers are making massive investments in the charging stations, these difficult times. We are really excited to have this for training and equipment that will be necessary to sell and serthe community,” said Holmes Honda general sales manager vice the dozens of exciting new EV models that are coming Cody Crowder. to showrooms over the next few years, including the many These are a handful of ways local dealerships support new EVs that are being built for the bulk of the American teachers and students across the country. As a new school car market. year kicks off with some uncertainty, one thing is for sure: “Buyers of these next-generation EVs will need even more Dealers will continue to support education. assurance than current EV owners that their transition away from ICE drivetrains will be a smooth one. An expansive and NADA Foundation’s Emergency Relief Fund convenient nationwide recharging network is a key compoPoised to Help Dealership Employees nent of any successful transition for millions of future EV The NADA Foundation’s Emergency Relief Fund is buyers, and we are working closely with their automakers to “poised and ready” to help dealership employees and their ensure a smooth transition for consumers from ICE vehicles families impacted by the devastation of Hurricane Ida, anto EVs.” t nounced Foundation Chairwoman Annette Sykora. www.msada.org

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