6 minute read
MEMBER SPOTLIGHT KANSAS AUTOMOBILE DEALERS ASSOCIATION
SHIFTING GEARS IN THE MOTOR VEHICLE INDUSTRY
By Jewlissa Frickey, editor, KSAE magazine
Since 1932, the Kansas Automobile Dealers Association (KADA) has been dedicated to the goal of promoting better business conditions for those engaged in the motor vehicle industry through advocacy, education and regulatory compliance.
As a political, economic and educational association created for Kansas dealers by Kansas dealers, it has continued to be managed by Kansas dealers who are dedicated to protecting the interests and increasing the value of automotive dealerships throughout the state.
KADA offers a variety of services and products to its members, from insurance products to dealership supplies. “KADA established the Kansas Automobile Dealers Association Workers Compensation Insurance Fund in 1991, which now ensures over two-thirds of our membership,” said KADA President Don McNeely. “To date, the fund has returned over $15.7 million in surplus reserves to the membership and has collected over $77 million in premiums.”
Additionally, KADA provides educational programs, such as title service training for Kansas dealerships and its title clerks in order to give customers the ultimate buying experience. There are many aspects to a dealership that are impacted under the Kansas Capitol. “Like other state trade associations, KADA advocates on behalf of the industry it represents by continuing to educate the members of the Kansas Legislature and the various state regulatory agencies on our issues and challenges,” said McNeely. “It is very important that each legislator understands what their vote on our industry means and how it affects their local dealer.”
Like many other industries, the retail motor vehicle industry has faced a lot of changes. This includes changes prior to the pandemic, for instance consolidation and the move to e-commerce, as well as those prompted or accelerated by the pandemic, such as various operating restrictions and revised business practices.
Beyond the pandemic-related changes, KADA is excited about the steps toward new technologies in the industry. “There is a ton of buzz about new technologies, from electric vehicles to autonomous vehicles, buying cars online or concierge options for service and repairs, to name a few,” said McNeely. “Automakers bringing new EV’s to the market
continued from page 20 is all over the news, with more than 20 EV models available just this year.”
Despite these challenges, KADA is optimistic about its future. “We do not look at these as challenges, we see them as opportunities,” said McNeely. “As with any new technology, consumers will need to be educated on owning and operating an EV. Customers also will need a reliable nationwide network of qualified service technicians to service their EV or perform safety recalls.”
With the new electrified products being announced, dealers are excited to see the sales and service opportunities that are going to come alongside having numerous new EV models to sell. McNeely noted that, “Kansas franchised dealers are already installing electric chargers, purchasing special equipment, parts and tools, and investing in training sales and service personnel in order to prepare for selling and servicing the dozens of new EVs that automakers already are or will soon be bringing to market.”
McNeely was hopeful for the future of the industry and noted that, “Kansas’ franchised dealers look forward to helping usher in the next chapter of America’s automotive history by doing what dealers do best: selling and servicing automobiles that provide their customers with reliable and affordable private transportation, and KADA will be an integral part of this adoption.”
As was the case with most all industries, KADA had to navigate the waters of the COVID-19 pandemic with constant communication and adjustments. “Our members relied on the association tremendously during COVID-19, as the information seemed to be changing by the minute, we were sending out emails daily to our membership and giving them direction,” said McNeely.
Deemed an essential business by Gov. Laura Kelly, KADA worked together on how to make the buying process safe and comfortable to consumers, made of both essential workers and non. These modifications included home delivery of vehicles to consumers and even picking up vehicles to be serviced at the dealership. “The dealers relied on our daily “news alerts” to make sure they were in compliance with the various executive orders,” said McNeely.
Not only does KADA work to serve dealers, it also benefits the Kansas community. On average, a Kansas dealership employs about 50 locals in good paying jobs in sales, service and management – allowing for living wage jobs with opportunities for advancement. “It’s one of the last places in America where someone without a college degree can work hard and make a great living,” noted McNeely. “There are 213 dealerships in Kansas that employ 10,700 people directly, and another 10,000 people indirectly. The average employee at a Kansas dealership, in sales or service makes nearly $55,000 per year.”
According to KADA, Kansas new car and truck dealers generated $6.2 billion in annual total retail sales and collected $458 million in sales tax in 2020 alone.
When asked the goals for KADA in the next two-five years, McNeely remarked, “We will continue to assist our membership in navigating the rapid changes that are occurring within in our industry that are brought about by technology, from e-commerce to the adoption of EV’s.” He continued with how KADA must also continue to evolve to meet the needs and demands of its membership to remain a relevant and trusted asset.
For those who may be interested in joining KADA or are new to the dealership industry, McNeely encourages potential members to learn more about the organization. “Dollar for dollar, membership with KADA is one of the best investments a dealer can make in their business,” concluded McNeely. “KADA exists for the sole purpose of protecting and promoting the interests of the Kansas franchised motor vehicle dealerships.” F
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