HawaiiDealer by Traveler Media

The Official Publication of the Hawaii Automobile Dealers Association

2016 1st Quarter Edition

Why Auto Dealers Matter... see story on page 8

Kauai new car dealerships. Note: Kauaiâ&#x20AC;&#x2122;s Grand Hyatt will be the site for the 2016 HADA convention.

Also in this Edition...

2016 First Hawaiian International Auto Show March 18-20,2016 page 11

HADA dealers lunch with Bob Lutz

page 14

Bill van den Hurk greets Rep. Cynthia Theilen at Dealer Day at the Capitol. page 20

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Hawaii Automobile Dealers Association 1100 Alakea Street, Suite 2601 Honolulu, HI 96813 (808)593-0031 • Fax (808)593-0569

2015-2016 HADA 2012-2013 irectors Officers & DirectOrs President resident P Bill van den Hurk Mike Niethammer President resident-Elect P -elect Brian Bill vanKitagawa den Hurk Vice ice President President V Eric Fukunaga Secretary ecretary s Wayne DeLuz Joe Nicolai Treasurer reasurer t Kenny Ching John Uekawa NADA Director nada director Stan JoeMasamitsu Hanley Hawaii Director Hawaii director Jackie De DeLuz Wayne Luz Maui Director Maui director Damien Farias Damien Farias Oahu Director oaHu director Stan Masamitsu Stan Masamitsu Oahu Director oaHu director Morrie Stoebner Morrie Stoebner

An Interim Solution The association is working with City and County of Honolulu officials to be on the same page with regard to prioritizing the auto industry’s and driving public’s need for speedy, accurate and efficient electronic vehicle registration. It seems that the process is going at a gradual process, while a brisk process is what most feel is needed right now. Lines at DMVs continue to pose problems for everyone. That’s why dealers have proposed an interim solution that brings electronic vehicle registration for USED cars online quickly, while the City and County officials continue to work on the multiyear task of reshaping the City’s antiquated computer network system. The HADA-proposed interim solution asks that City officials authorize use of the current online Fleet-Dealer/Registration process that is in place and working for new vehicles, and adapt it, with what we understand is minimal programming needed, to also allow electronic transfer of registration for dealer-owned used vehicles—which are already in the dealer’s name. The efficient, electronic transfer of vehicle registration to used vehicle owners’ names, from computer terminals located in admin offices in auto dealerships, would dramatically speed up the transfer and registration process.

Oahu Director oaHu director NickJackson Cutter Jack

Dealers are problem solvers. Dealers, and our customers, Hawaii’s driving public, need the help of the City right now.

Oahu Director oaHu director Mark Benson Dan Keppel

HADA continues to fully support the complete kiosk-based system at DMV sites and dealership sites that City officials are creating and which will be possible for transfer of vehicle registrations in 2-3 years (while being useful for annual registration renewal for vehicle owners in a shorter period of time).

Kauai Director Kauai director Ryan Mackey Dan Mackey At Large Director at large director Keoni Hansen Hansen Keoni At Large Director iMMediate Past President Marc Cutter Nick Cutter Immediate Past President

HADA STAFF Mike Niethammer

Because of the years of programming development needed for DMV and dealership-based kiosks to offer full transfer capabilities, we respectfully ask City officials to implement the currently in-place electronic F-D/R system for used vehicles at this time. Bill van den Hurk 2015, 2016 HADA president

Executive Director

HADA DaveSTAFF Rolf Executive Director Dealer Services Manager DaveCochard Rolf George

HawaiiDealer is designed & published by Custom Publishing Design Group, Inc.® 800.246.1637 • www.MyCompanyMagazine.com. To advertise in an upcoming issue contact Sara Russell, 800.246.1637 ext. 315 or e-mail sara@mycompanymagazine.com.

HawaiiDealer is published quarterly by the Hawaii Automobile Dealers Association, 1100 Alakea Street, Suite 2601, Honolulu, HI 96813 Phone: 808 593-0031 Fax: 808 593-0569 Email: drolf@hawaiidealer.com

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Why Auto Dealers Matter Note: The following is an email I received from an NADA membership official after I mentioned on the phone that it was a joy and a privilege for me, at HADA, to work with auto dealers. “It has something to do with working together…. and something to do with working to create a better country,” I said. Lyn Withers, said things much better than I did, in the email she sent as a follow up: Hey Dave, I found the little set of notes I jotted down about dealers. I was thinking on the question of why dealer should join and participate in a national organization like NADA, which can seem removed from their day-to-day and local issues. It came down to supporting efforts to advocate on their behalf in the regulatory, public affairs and industry relations sectors at a national level.

MSRP Customer Incentives

Inventory

Model Options

Dealer Incentives

And why would they do that? Because they are problem solvers. They tend to be people who are proactive in confronting issues.

Protection Plans

Lease vs. Buy

In my experience, they share certain characteristics as a group. They’re hard-working , energetic and dynamic. They’re patriotic. They believe in the American dream and strive to live it out. They’re builders. They’re pragmatic dreamers.

Dealer Installed Options

Yes, they can be competitive – but they are often competing not just against the other guy but to better themselves.

Extended Waranty

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Yes, they are often driven to succeed – but it’s in every arena of life, not just financially. Most of them have very high standards of personal conduct – and little tolerance for slackers, whiners or cheats. The public can be wary and distrustful of car dealers. A few bad apples crop up in every industry. On my own part, I’ve gained a great deal of respect and even admiration for them as a group over my time at NADA. Just a few thoughts, Dave. I’m still thinking on it. Hope one or two words spark an idea for you. — Lyn Withers Lyn Withers is the NADA Membership Coordinator. She added, however, that this is a personal opinion she shared in an email. We at HADA, much appreciate Lyn giving HADA authorization to reprint it.

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All HADA members and a guest are invited to VIP Preview Night, at the First Hawaiian International Auto Show, 6:30 to 8 p.m. Thursday, March 17, 2016 at the Hawaii Convention Center. Invitations with RSVP request were mailed in February.

The latest automotive technology will be featured in exhibits of 350 cars and trucks HONOLULU, Hawaii - More than 350 of the newest cars, crossovers, trucks, SUVs, luxury cars and classics will add to the family fun at this year's First Hawaiian International Auto Show, held Friday, March 18 through Sunday, March 20 at the Hawaii Convention Center. The annual event is the ideal setting for showgoers to fuel their automotive passion while researching some of the hottest new models and in-car technology, all in a no pressure environment. From plug-in electric vehicles to a dazzling collection of ultra-high-end exotics, everyone's dream car will be on display over the weekend! Several pre-production and 2016-model-year vehicles will also be on display including the Toyota Mirai Fuel Cell Vehicle, All-new 2016 Toyota Prius, 2016 Chevrolet Camaro and Colorado (Motor Trend’s 2016 Car of The Year and Truck of The Year), 2016 Hyundai Tucson, and 2016 Jaguar F-Pace. The auto show is the only place on the islands to get up-close and hands on with these new vehicles. The Multi-Million Dollar Exotic Vehicle display will feature some of the most unique, fastest - and not to mention most expensive vehicles, from Ferrari, Maserati, Lamborghini and Bentley, courtesy of JN Automotive Group. These high-end models feature sticker prices well into the six figures, can rocket to 60 mph in under 3.5 seconds and offer an escape from the ordinary commute.

Showgoers will also have the chance to explore all of the new technology currently being offered on automobiles. Significant upgrades in safety, entertainment and convenience features have made new models more sophisticated than ever. From 360-degree cameras, crash avoidance systems and inflatable seatbelts to massive multimedia screens, integrated smartphone Apps and even the ability to open the rear hatch by just waving your foot, the auto show is the perfect place to get the scoop on the latest technology making commutes safer and more enjoyable. Several battery electric vehicles and hybrid-electric vehicles will be on display including models Kia, Hyundai, Nissan, Chevrolet, Ford, Toyota, and others. Following are the details on additional special promotions: • Car Club Displays - Eye candy, including rare collections of antique vehicles from the Aloha Region AACA, Mustangs, Corvettes, Volkswagens, and tricked-out Supras will be stopping traffic as they collect oohs and aahs this year. • Free Pizza Sampling - Visit the gazebo to sample a variety of pizza offerings on all show days, served hot by Papa John's. • Military Two-Fer Day - On Saturday only, all Department of Defense - reservists, National Guard and retired with a military ID can gain admission "Two for the price of One": Buy one $8 military admission with a military ID & receive a second military admission free, with a second valid military ID. Must present two military IDs at the box office. Not valid with any other offer.

• Shop at Ala Moana Center, then Visit the Auto Show - Present a receipt from any merchant and get $2 off one adult admission. Valid all show days. • FREE Subscription to Motor Trend Magazine - Showgoers will receive a FREE one-year subscription to Motor Trend magazine just for attending. Simply sign up at the auto show and receive 12 issues of the world's #1 automotive authority direct to your mailbox. The First Hawaiian International Auto Show will be open to the public Friday, March 18 through Sunday, March 20, at the Hawaii Convention Center in Honolulu. The First Hawaiian Bank continues as the auto show's title sponsor. The auto show is also sponsored by the Hawaii Automobile Dealers Association and the Honolulu Star-Advertiser and produced by Motor Trend Auto Shows, LLC, the nation's largest auto show producer and part of TEN: The Enthusiast Network. Automotive technology continues to improve the safety and entertainment value of vehicles. Attendees visiting the 2016 First Hawaiian International Auto Show will get a first-hand look at these innovations. Rated as some of the most popular with consumers, these technological advancements are currently available in select new model vehicles: • Inflatable Rear Seat Belts - When these new air bag seat belts deploy, they provide added protection for both children and adults in the back seat. (Available in several models from Ford) • Accident Avoidance Sensors - State-of-the-art sensors monitor other vehicles around the car, as well as the driver's reactions to preemptively prepare for collisions, and in some cases, prevent them. In addition, some cars are now equipped with radar-guided cruise control to minimize rear-end accidents and chime alerts to wake sleepy drivers. (Available in select models from Acura, BMW, Ford, Mercedes-Benz, Infiniti, Toyota, Subaru and more) • Smartphone Applications - With smartphones quickly overtaking the mobile market, auto manufacturers have developed Apps to integrate with their product. Many of the Apps enable owners to lock/unlock doors, check tire pressure and even remotely start the vehicle. Some electric cars, like the Nissan LEAF, enable drivers to check the car's charge through the App as well. (Available in select models from Chevrolet, Ford, GMC, Nissan and more) • Pushbutton Gear Selector - With many automatic transmissions now being electronically controlled, the old analog shift lever is quickly becoming unneeded. Shifting into gears can be accomplished with the push of a button or twist of a knob. This new spin on an old concept frees up center console space by providing buttons to engage park, neutral, reverse and forward gears. (Available in models from Acura, Ram, Chrysler, Jaguar, Land Rover and more) • Parking Assist - Ideal for drivers who struggle with parallel parking, sensors maneuver the vehicle into a parking spot with the push of a button. (Available in several vehicles from Ford, Lexus, Toyota, Chevrolet and more) • Hands-Free Power Liftgate/Trunk - The latest twist on remote vehicle access uses neither a keyfob control nor a pushbutton. Rather, the owners burdened with baggage can engage the avail-

able power- operated liftgate or trunk via a simple kicking motion with one's foot under the rear bumper (provided the vehicle's keyfob is in a pocket or purse). The same process closes the hatch or trunk. (Available on select vehicles from Ford and Mercedes-Benz) • Built-in WiFi - From inside a car, weather, navigation, show times, email and even gaming are just a click away. Passengers can surf the web from their laptops while the car is moving and drivers can access the Web from the navigation screen while the vehicle is parked. (Available in several Audi, BMW, Chevrolet, Chrysler and Ford vehicles) • Natural Language Voice Activation - Voice-recognition technology continues to improve, and is available in a greater variety of languages. Natural language voice activation is designed to recognize normal speech patterns, allowing the driver or vehicle occupants to issue commands outside of a predetermined list of specific words and phrases, or to compose messages that communications systems can convert into text and send to a recipient. (Available on models from Chevrolet, Ford, Kia and more) • Engine Start-Stop Systems - To improve fuel economy, automakers are installing start-stop systems in many hybrid models, and they are catching on for non-hybrid models as well. The system automatically shuts down and then restarts the engine to minimize idling, improving fuel economy by anywhere from 5 to 15% and reducing emissions. (Available on select models from Chevrolet, Ford, Toyota and more) • Inductive Charging - In addition to a variety of ways to connect with mobile phones and other devices inside the passenger compartment, manufacturers are looking at ways to keep such electronics charged without having to plug them into an outlet. The new inductive wireless charging system allows drivers to simply set electronic devices in a specified charging zone to keep the juice flowing. (Available in select models from FCA, Chevrolet, Toyota and more) Many of these technology options can be found in vehicles displayed on the auto show floor. For more information on a specific vehicle or technology, please speak with a manufacturer representative at the show or visit a local new car dealer. For the second year in a row, Soderholm Mobility, Inc. will showcase the latest in adaptive driving equipment with a fullfledged Mobility Booth! Show hours are Friday noon to 10 p.m., Saturday 10 a.m. to 10 p.m. and Sunday 10 a.m. to 7 p.m. Admission is $10 for adults (13 and older), $8 for military (with any D.O.D. ID), $7 for senior citizens (62 and older) and FREE for children 12 and younger. Save time and money, purchase E-tickets in advance at www.AutoShowHawaii.com and receive a $1 discount off regular adult admission. Discount coupons are available while supplies last at Oahu branches of First Hawaiian Bank. Additional information can be found on the official auto show website, www.AutoShowHawaii.com.

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Bob Lutz, with lei at center of table, shares stories and insights regarding the auto industry with HADA dealers and museum officials.

Dealers enjoy lunch with renowned GM, BMW, Ford, Chrysler, and Fisker auto executive Bob Lutz

Pacific Aviation Museum officials, who have enlisted the help of renowned auto exec Bob Lutz for the museum’s fundraising efforts during the period of the commemoration of the 75th making the attack on Pearl Harbor, asked Hawaii new car dealers to join the famed former U.S. Marine jet aviator and longtime auto executive for international automakers for lunch at the Pacific Club January 28, 2016. At 85 years old Lutz began by saying he thought that he was “the oldest jet fighter pilot in the world.” He owns a Czechoslovakian fighter jet, which he still flies regularly.

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Hotel Reservations are now open for the 2016 HADA Convention Kauai Convention Chair, Ryan Mackey, encourages everyone to make reservations early as only a limited number of rooms are available at discounted HADA rates. They are offered on first come, first served basis. The 57th Annual HADA Convention will be held Oct. 13 -16, 2016 at the Grand Hyatt Kauai Resort and Spa on the beach in Koloa, Kauai. Ryan has obtained a special HADA block room rate. Please go to the HADA website (www.hawaiiautodealer.com) to register. Just click on the link in the convention story to make your hotel reservations. The convention registration itself, and golf and tennis registration materials will be sent out in June. Again, please book your rooms early. It’s an exquisite hotel, with extraordinary golf courses nearby and championship tennis courts. We’re looking forward to an extraordinary 2016 HADA convention. Much thanks also goes to Byron Hansen and Pete Luke, for chairing the golf tournaments. They will be assisted by help from the Hawaii Association of Broadcasters. And much thanks too, goes to Bob Gardiner, for again hosting the tennis tournament.

Beautiful waterfalls and gardens grace the lazy river that allows swimmers, even those just treading water, to traverse the area in one of the world’s greatest pools.

Stunning oceanside

views rim part of the nearby course.

Fine dining at 7

restaurants exemplifies the Grand Hyatt’s 4-star-plus experience. Some HADA convention goers to Kauai will likely remember the “Fantasy Island” waterfall in the TV show of the same name. Kauai’s famed Spouting Horn is nearby abound from the exquisite guest rooms.

Beach view Beautiful artwork

throughout the hotel adds to the special experience at the extraordinary hotel.

Shipwrecks Beach Poipu is a long stretch

of golden sand fronting the Grand Hyatt Kauai.

An inviting

Jacuzzi alongside the meandering pool river.

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The Hawaiian Electric Companies’ electric vehicle fast charger program is well underway. In 2015, Hawaiian Electric installed four utility-owned and operated fast chargers at locations around O‘ahu and we are looking for more sites for 2016, including on Hawai‘i Island and Maui. Your business could be on the map. Hawaiian Electric Companies will operate the equipment at no cost to the host for installation, maintenance, or electricity. Want to participate? Call (808) 543-GoEV or email GoEV@hawaiianelectric.com.

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HADA dealers and senior managers join Hawaii legislators for

Dealer Day

The association was able to provide House members who came up to Room 329 a hot Kakaako Kitchen plate lunch after the unexpectedly long House floor session. A smiling HADA executive director, Dave Rolf, sixth from left, was happy to see the extra plate lunches arrive in time to serve the many House members who came, following the large turnout earlier by Senate members and staff who picked up lunches for legislators who couldnâ&#x20AC;&#x2122;t stop by because of extended committee hearings. L-R, Rep. Jo Jordan, Speaker of the House Joe Souki, Rep. Bob McDermott, Rep Lynn DeCoite, Rep Isaac Choy, Dave Rolf, Rep. Sylvia Luke, Rep. Richard Onishi, Rep. Tom Brower, Rep. Bert Kobayashi, Rep. Kaniela Ing, Speaker Emeritus Calvin Say, and Rep. Henry Aquino.

Dealer Day at the State Capitol was a huge success this year. We ordered 160 lunches, but ran out and had to emergency order 70 more, which arrived hot, and just in time for the House members, who had a longer-than-expected floor session. All in all, some 230 Kaka'ako plate lunches were enjoyed by legislators, their staff members, dealers and senior management in Room 329. The HawaiiDealer was distributed earlier to all legislative offices along with an invitation to Dealer Day at the State Capitol. Dealers delivered a reminder by going door-todoor on all floors to all the legislators' offices. The House session went long, but dozens of House members came up afterwards to enjoy a plate lunch. City and County of Honolulu officials brought their new DMV kiosk which will soon be providing remote online vehicle renewal and other services.

Much thanks goes to HADA president Bill van den Hurk, Sherilyn Kajiwara, the Cityâ&#x20AC;&#x2122;s Director of Customer Services, all HADA dealers and senior managers, and all the legislators and staff members who came for the HADA-sponsored event. Dealer Day is the largest business organization event held each year at the Capitol. Much thanks to Joe Hanley, who, as president in 2003, started the tradition. Speaker Joe Souki arranged for the room for HADA. House Sgt. at Arms Kevin Kuroda coordinated with the Capitol staff. Maui Senator Roz Baker made the announcement about Dealer Day on the Senate Floor, and Representative Gene Ward made the announcement about Dealer Day on the floor of the House of Representatives. Much good food, and many good conversations were enjoyed by dealers and members of the Hawaii House and Senate.

at the State Capitol

Dealer early arrivals at 11:30 a.m. enjoyed their Kaka’ako Kitchen plate lunch while awaiting legislators who were in session.

230 P l at e

L-R Sen. Will Espero, Sen. Suzanne Chun-Oakland and Sen. Kalani English examine the City and County of Honolulu’s DMV kiosk.

Lunches Served Sen. Roz Baker examines the DMV kiosk pre-production demo model. Her sponsored bill, SB233 in the 2015 legislative session provided that the City Director of Finance may develop initial vehicle registration and vehicle transfer of registration through an electronic vehicle registration which allows the processes to be facilitated through remote sites, like kiosks for DMV customers at DMV locations, and kiosks (or admin office terminals) at Hawaii dealerships. City and County of Honolulu’s Keith Ho is shown at left.

L-R, Bill van den Hurk discusses the Cityâ&#x20AC;&#x2122;s new DMV kiosk with Sherilyn Kajiwara, the City and County of Honoluluâ&#x20AC;&#x2122;s Director of Customer Services.

L-R, Rep. Angus McKelvey, with Mike Niethammer. Rep. McKelvey was the House sponsor of the HADA-initiated EVR bill to reduce

lines at DMVs by allowing dealers to use online register and transfer registrations for used cars. Rep. Scott Nishimoto, and Mike Niethammer. Hansen and Rep. Cindy Evans.

Rep. Lauren Matsumoto and Keoni Hansen.

Keoni Hansen and Rep. Ty Cullen.

L-R, Ryan Takata, and Aiyez Dean.

L-R,

L-R, Russ Wong, Rep Derek Kawakami, Keoni

L-R, Mike Niethammer and Rep. Marcus Oshiro.

L-R, Dane Wicker, from Sen. Dela Cruz’s staff, who helped coordinate the Keep Hawaii’s Heroes campaign is shown with Stan Masamitsu and Dave Rolf

L-R, Rep. Tom Brower, Dave Rolf and Rep. John Mizuno

L-R, City and County of Honolulu’s Melvin Tomas and Precious Binas,

Sen. Suzanne Chun-Oakland, Keith Ho, City and County of Honolulu deputy director of the department of information and technology, Sen. Kalani English and Sen. Will Espero.

Rep. Richard Creagan, M.D., considering HADA comments on the message found in the HawaiiDealer.

L-R, Rep. Tom Brower, shares a comment about the floor session to the enjoyment of Speaker Souki, Dave Rolf, Rep. Richard Onishi and Rep. Bert Kobayashi

L-R, Rep. Aaron Johanson, and Rep. Justin Woodson.

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L-R, Mike Chigami, Kenny Ching, Russ Wong, Rep. Mark Nakashima, Mark Benson and Mary Benson. Morikawa

Rep. Ken Ito, Heather Cutter and Sheri Rolf

Michael Stoebner and Rep. Dee

Michael Stoebner, Sen. President Ron Kouchi, Russ Wong, Brad Nicolai

Rep.

Gene Ward, Aiyez Dean, Ryan Takata, Mike Niethammer, Keoni Hansen. Note: Rep. Ward earlier made an announcement on the House floor acknowledging Dealer Day in Room 329.

Rep. Cindy Evans and Kenny Ching.

L-R, Stan Masamitsu and Rep. Mark Hashem

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Rep. Bert Kobayashi, standing in front of the HawaiiDealer magazine poster comments on the public art HADA often shows on Dave Rolf and Senator Brian Taniguchi; who helped initiate the Art at the Capitol event.

the covers. Yamane.

Dave Rolf and Rep. Henry Aquino discuss hydrogen fuel cell vehicles.

Keohokalole.

Stan Masamitsu and Rep. Ryan

L-R Rep. Ken Ito, Stan Masamitsu and Rep. Jarrett

L-R, Ryan Takata, Aiyez Dean, Rep. Greg Takayama, Mike Niethammer.

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growth engine Accelerating business performance with a range of financial solutions for Hawaii dealers. Rolf Sorenson | 310.990.5108 | rolf.w.sorenson@baml.com baml.com/dealerservices

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Get started today! Call Andrea Hussey-Leong at 808.782.4960 or visit CUDIRECT.com Mahalo! CU Direct proudly serves 65 dealers and 20 credit unions on all four major Hawaiian islands: West Maui Community FCU • Kauai Government EFCU • OTS EFCU Aloha Pacific FCU • Big Island FCU • HawaiiUSA FCU • Hawaiian Tel FCU • Honolulu Fire Department FCU • West Oahu Community FCU • Hawaii Schools FCU • Pearl Hawaii FCU Kauai Community FCU • Maui FCU • University of Hawaii FCU • Hawaii Central FCU • Hickam FCU • Hawaii State FCU • Maui County FCU • Valley Isle Community FCU • Honolulu FCU

Covering Data thru June 2015

Volume 14, Number 3

Hawaii Auto Outlook

Sponsored by: Hawaii Automobile Dealers Association FORECAST The Official Publication of the Hawaii Automobile Dealers Association

2015 4th Quarter Edition

2015 Convention Edition

Maui hawaii’S StatE DEalEr Of thE YEar see story on page 8