HawaiiDealer

Page 1

The Official Publication of the Hawaii Automobile Dealers Association

2018 Convention Edition

Looking back….at the 2018 First Hawaiian International Auto Show. See auto show pages 10-18

Also in this Edition...

FACT OR FICTION?

Looking back at this past year’s auto show… The HADA board of directors reviews big plans for next year’s HADA convention on Maui.

First Hawaiian Bank CEO Robert Harrison (left) and his wife Lori enjoy a moment at the show’s VIP Preview Night with Joe Nicolai, who, in 2000 as president of HADA, helped move the show to the See president’s remarks on page 4 Hawaii Convention Center. See the auto show pages 10-18

The legislature intends to only tax $1 million second homes with the proposed property tax on the ballot? (well….not necessarily) See the facts about the Nov. 6 ballot issue.

See page 22


E ASY CHA RGING

640

Miles EPA-Estimated Total Driving Range 3

133

EPA-Estimated MPGe 4

5 Hours and 30 Minutes Charging Time (Standard Outlet) 1,2

2 Hours and 10 Minutes Charging Time (240V)

54

EPA-Estimated Combined MPG 5

PRIUS PRIME E V MODE OR H Y BR ID P O W E R . I T ’S YOUR CHOIC E .

It has the power to run in either EV or hybrid driving mode making it the most efficient Toyota hybrid yet. Plus, Toyota Safety SenseTM P (TSS-P) 6 comes standard. Why compromise when you can have a harmonious balance between necessity and desire? VISIT YOUR TOYOTA H AWA II D E A L ER TODAY.

1. Charge time is standard 120V outlet. Always plug-in in accordance with Owner’s Manual. 2. A heavier-duty wall receptacle with GFCI (Ground-Fault Circuit Interrupter) and a dedicated circuit are recommended but not required. 3. 2018 Prius Prime EPA-estimated range rating when fully charged and with a full tank of gas. Excludes driving conditions. Actual mileage will vary. 4. 2018 Prius Prime EPA-estimated combined MPGe. Actual MPGe will vary depending upon driving conditions, how you drive and maintain your vehicle, and other factors. Battery capacity will decrease with time and use. For more information, see www.fueleconomy.gov. 5. 2018 Prius Prime EPA-estimated mpg. Actual mpg will vary based on driving habits, weather, temperature and road/traffic conditions. For more information on mpg, please see www.fueleconomgy.gov. 6. Drivers are responsible for their own safe driving. Always pay attention to your surroundings and drive safely. System effectiveness is dependent on many factors including road, weather and vehicle conditions. See Owner’s Manual for additional limitations and details.


What’s worse than fleet fuel fraud? Not catching it. Easily track and restrict real-time fleet spending online with the Hele 76® Universal Fleet Card Program. You won’t just have a better chance at eliminating fraud, you’ll save time and money in the process—all for free.

To learn more, email Hele76Fleet@parpacific.com or call (808) 547-3929.

F U E L D I S C O U N T S O F F E R E D AT A L L H E L E A N D PA R T I C I PAT I N G 7 6 B R A N D E D R E TA I L S TAT I O N S .


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

2017-2018 HADA Officers & DirectOrs President Brian Kitagawa President-elect John Uekawa Vice President Eric Fukunaga secretary Wayne De Luz treasurer Kenny Ching nada director Stan Masamitsu Hawaii director Jackie De Luz Watanabe Maui director Jim Falk Kauai director Mike Niethammer

This year’s convention serves as a springboard With HADA and the UH Engineering Department, being two of the three founding organizations in the Hawaii Autonomous Vehicle Institute (HAVI), and joining in the request for $10 million in federal funds in a proposal submitted to USDOT Fed Highway Admin (FHWA) – Advanced Transportation & Congestion Management Technologies Deployment program, the association and its members are leading in the efforts to build the Future of Transportation in Hawaii. As a fourth generation dealer it’s a joy to see so many NextGen dealers on the HADA board who are joining with our seasoned veteran dealers in tackling this tall task that was given to us by Governor David Ige, who issued executive order 17-07 which tasked HADA dealers and the UH College of Engineering with helping to bring connected autonomous vehicle technology to the islands. The HADA board has voted to hold next year’s convention at the Fairmont Kea Lani and is asking all HADA dealers to invite high level officials from their respective auto manufacturers to join us in reviewing the progress Hawaii has made in developing increased vehicle customers’ embrace of the new automotive technology.

oaHu director Stan Masamitsu oaHu director

The big HADA convention we are holding this year, in effect, is serving as the springboard for this effort to bring the automotive world to Hawaii. Next year’s First Hawaiian International Auto Show also will play a role.

Michael Stoebner oaHu director Heather Cutter oaHu director

Much thanks to all, and especially our sponsors for making this all possible. Brian Kitagawa HADA President 2017–2018

Brad Nicolai at-large director Marc Cutter at-large director Keoni Hansen iMMediate Past President Bill van den Hurk

HADA STAFF executiVe director Dave Rolf

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

4


FHB.CO M / YES

The fast lane to fast approvals. Boost sales With our fast credit approvals and competitive rates, your customers are in, out, and on their way in no time. Partner with us, and let’s speed through your business milestones, together. It all starts with Yes. Call our Dealer Center at 844-3860.

FHIB-34585_Hawaii Dealer_7-625x10_MECH.indd 1

9/13/18 4:39 PM


You Have the Power We’ll Show You How to Use It

For More Information Contact: Linda Fisher, President Phone: (714) 612-6176 • E-Mail: linda@dealerassurancegroup.com


Have questions about going electric? The Hawaiian Electric Companies can help

h money ectric ave you?

understand alculator to t ect the righ ential and sel needs.

electric.watt

plan.com/ev

EV m anelectric.co

at: EV ric.com/GO

Benefits of Dr u ng ering Yoivi wctr mpo Ean Ele hiclele vehic ricVe ctic

How much mone can an electric y vehicle save yo u?

Drive an ele green ey and go to save mon /GOEV ectric.com hawaiianel

re at ER COS Learn moLOW T TO DRIVE

Save with less main tenance and lower cost per mile.

FEDERAL TAX INCENTIVE Qualify for a fede ral income-tax credit of up to $7,5 00. FREE PARKING Park for free at state and municipal garages and in metered stalls.

Use our online calc ulator to understan d your savings pote ntial vehicle for your need and select the right s. Visit hawaiianelec

Auto dealers, salespeople and your customers have questions about EVs: Empowering Yo u

Learn more at haw

tric.wattplan.com /ev

Contact us: (808) 543-GOEV GOEV@hawaiiane lectr

ic.com

Learn more at: hawaiianelectric.c om/G

• what choices are available • how and where to charge • how to save money

Drive an electric veh to save money and icle go green

OEV

HOV/ZIPPER LAN E ACCESS Use high-occupan cy and zipper lanes with out passengers.

aiianelectric.com/G

OEV

For free copies of this brochure to give your customers, or answers to any questions or concerns regarding electric vehicles, please contact (808) 543-GoEV (4638) or GoEV@hawaiianelectric.com. Maui Electric Company 808-871-8461 ext. 2445 GoEV@mauielectric.com

CLEAN AIR Produce fewer emis sions, and charge with rene wables.

Hawai‘i Electric Light Company 808-969-0358 GoEV@hawaiielectriclight.com Benefits of Driving an Electric Vehicle LOWER COST TO DRIVE Save with less maintenance and lower cost per mile. FEDERAL TAX INCENTIVE Qualify for a federal income-tax credit of up to $7,500. FREE PARKING Park for free at state and municipal garages and in metered stalls.

How much money can an electric vehicle save you? Use our online calculator to understand your savings potential and select the right vehicle for your needs. Visit hawaiianelectric.wattplan.com/ev Contact us: (808) 543-GOEV GOEV@hawaiianelectric.com Learn more at: hawaiianelectric.com/GOEV

HOV/ZIPPER LANE ACCESS Use high-occupancy and zipper lanes without passengers. CLEAN AIR Produce fewer emissions, and charge with renewables.

www.hawaiianelectric.com/GoEV

Empowering You

Drive an electric vehicle to save money and go green Learn more at hawaiianelectric.com/GOEV


llstate

Western Insurance Hawaii Serving Hawaii Since 1994 rosalie@westerninsurancehawaii.com | 808-722-5491

vices division of American Heritage Life Insurance Company (Home Office:Jacksonville, FL), mber of the Allstate family of companies. Š 2016 Allstate

Automotive solutions for

peAce of mind And increAsed

deAler profits Vehicle Service Contracts | GAP | Tire and Wheel Ancillary Products | E-Solutions | Reverse Sensors


YOU DON’T NEED TO SELL CUSTOMERS ON

THE ONE BRAND

THEY’RE ALREADY SOLD ON. With Allstate, you get a 125-billion-dollar brand and 30 years of F&I and underwriting expertise. Put the power of a leading brand to work at your dealership with Allstate Dealer Services.

AllstateDealerSer vices.com

VSC • GAP • TIRE & WHEEL • COMPLETE PROTECTION • PAINT & FABRIC DEFENSE • EXCESS WEAR & TEAR

Call Rosalie J. Middleton from Western Insurance Hawaii to add Allstate to your product lineup.

808-722-5491 rosalie@westerninsurancehawaii.com

Allstate Dealer Services is a marketing name for Pablo Creek Services, Inc., E.R.J. Insurance Group, Inc. (d/b/a American Heritage Insurance Services), Northbrook Indemnity Company (Home Office: Northbrook, IL), and First Colonial Insurance Company (Home Office: Jacksonville, FL). Each of these entities is a member of the Allstate family of companies. ©2014 Allstate


Study shows auto show influ that of global markets like NY

Hawaii’s auto show has the highest crowd density of all the MotorTrend- produced shows in the U.S. — (MTAS benchmark report 2018)

} Hawaii State Representative Gene Ward and his wife Faradah inspect the KIA concept car.

10


uence in Hawaii is high, like Y, LA, Chicago and Detroit The Old…

Paul Olivas, “Mr. Mustang,” is a regular attendee at the First Hawaiian International Auto Show “Mr. Mustang” Paul Olivas, co-founder of the Aloha Mustang and Shelby Club, which exhibits each year at the show since it has moved to the Hawaii Convention Center in 2000, owns, drives, and works on his 1964 (and a half) red Mustang.

} “Dad, when did cars have fins like this?” “That’s a ’59 Pink Cadillac..a classic.”

and the New…

} The “i” cars in the front window were a crowd pleaser. JN’s Velocity display included Lamborghini, Ferrari, Maserati, and more high end exotics.

} Paul Olivas, Mr. Mustang, (shown 2nd from left) enjoys a moment at the show with show attendees Dave Watts, left, and Roy Ogasawara, 3rd from left, and Rick Hamada, KHVH radio host of the Rick Hamada Show.

} Paul is shown here posing with Toyota product specialists.

11


*Garage Insurance is written by a 3rd party insurer, unaffiliated with Ally Insurance Group © 2018 Ally Financial Inc.

Zack-Ally s ince

Streamline your business with auto financing, F&I and GARAGE*& INVENTORY insurance. That’s one-stop shopping, dealership style – just another example of how determined we are to do whatever it takes to build your business.

gary spinella auto finance 925-785-8089

Mike orton insurance 760-402-9222

2015


MAHALO FOR PARTNERING WITH COX AUTOMOTIVE.

We’re happy to have you on the Cox Automotive team! Cox Automotive Inc. is transforming the way the world buys, sells and owns cars with industry-leading digital marketing, software, financial, wholesale and e-commerce solutions for consumers, dealers, manufacturers and the overall automotive ecosystem worldwide. FOR MORE INFORMATION VISIT COXAUTOINC.COM

©

2018 Cox Automotive. All Rights Reserved. 2018_432794


2018 First Hawaiian International Auto Show

} The show sparkled‌ anytime, day or night, thanks to the beauty of the Hawaii Convention Center, considered by many to be America’s most beautiful convention center.

} One of the 70 press interviews and stories run on the show; total run times for all the TV and radio news stories was 3 hours and 21 minutes.

} Hawaiian Electric displayed a Nissan LEAF with plug-in information about electric rates.

14

} Hawaiian Electric Company provided information on the electric car ownership experience.


} The Texaco exhibit was at the front of the show and drew delighted show attendees for pictures.

} A new feature, the Texaco-sponsored KIDS TEST DRIVE was a hit with parents and kids.

} MotorTrend’s copywrited themed carpet helped show-goers travel between exhibits.

} A virtual experience allowed show attendees to test their skills under extreme driving conditions.

} A popular video driving experience was one of the highlights of the Ford exhibit.

} A Chinese car by BYD was featured in Hawaii. No other Motor Trendproduced show has had this vehicle on display yet.

15


16

} The show also featured 2019 pre-production models like this 2019 Ford Ranger model.

} The Aloha Shelby and Mustang Club has exhibited at the show for years and always draws an interested crowd.

} A First Hawaiian Bank promotion helped create a large opening day crowd on Friday.

} Classic cars look like the day they came from the factory and gleamed under the convention center lights.

} Moms and kids both enjoyed the First Hawaiian Bank exhibit. The kids are spelling “YES.�

} Students from the University of Hawaii proudly displayed the vehicle they created for a project.



VIP Preview Night

} Nine HADA “legacy” dealers were honored with inscribed koa paddles for their involvement with the First Hawaiian International Auto Show over the last 40 years.

} Miss Hawaii 2018 Julianne Chu helped host the VIP Preview Night ceremonies.

} Miss Hawaii 2018, Julianne Chu presents a koa paddle to Joe Nicolai as Nick Cutter looks on. Joe, as HADA president, helped move the auto show to the convention center in the year 2000.

18

} First Hawaiian Bank’s Chris Dods, on behalf of his father, Walter Dods, Jr. accepts a Hawaiian voyaging canoe model from HADA president Brian Kitagawa. Walter Dods founded the show in 1977. The show was not held one year when show dates moved forward from the Fall to Spring dates. This year’s show marked its 40th year.

} The HADA board of directors, representatives of honorees, and VIP Night sponsors gathered for the official seat belt opening and received instructions from Kahu Kordel Kekoa at the completion of the show’s Hawaiian blessing.


As JM&A Group celebrate its 40th Anniversary, we realize that you’re our greatest gift. You’ve made us part of the Hawaiian community and trusted us to provide the highest quality of service to those that matter the most to you, your customers. Looking back, we’re proud to be one of the nations leading independent F&I providers, but we’re truly grateful for the wonderful relationships and professional friendships we’ve forged among Hawaii’s auto dealers. As we mark this milestone and look toward tomorrow, here’s to your success and another 40 years of exceptional performance and profitability.

Call our local team (800) 553-7146 | Online at jmagroup.com

A division of

JM Family is a diversified automotive company ranked on the FORTUNE® 100 Best Companies to Work For® list, its nineteenth consecutive year. © 2018 Jim Moran and Associates, Inc.


Our Success is our Dealers’ Success! Cavanah Associates, Inc. Cavanah Associates represents premier insurance, F&I products and services for Hawaii dealers. As a local company with 35 years of expertise, we provide: • Quality insurance and auto aftermarket products • Customer service responsiveness • Time tested aftermarket reinsurance solutions • Dealer training

1100 Alakea Street, Suite 2600 Honolulu, Hawaii 96813 808.537.1970 www.Cavanah.com Cavanah Associates is proud to represent


17-CPB-0631 Hawaii Dealers Mag V2.indd 9/8/17 2:44 PM - 1 -

(Cyan) (Magenta) (Yellow) (BlacK)

Providing exceptional service for you and your clients. COMPETITIVE RATES FLEXIBLE TERMS QUICK LOAN APPROVALS MIKE WARING

Senior Vice President & Manager Ph: 544-3731 michael.waring@centralpacificbank.com

WAYNE ARAKAKI

Vice President, Dealer Center Ph: 544-5282 wayne.arakaki@centralpacificbank.com

SEAN TANAKA

Assistant Vice President, Dealer Center Ph: 544-6815 sean.tanaka@centralpacificbank.com

RESPONSIVE SERVICE

We have the loans that get your clients in your cars and out the door. Contact us today to see how our auto loans can work for you. EDSON TOMA

Assistant Vice President, Dealer Center Ph: 544-5284 edson.toma@centralpacificbank.com

JONATHAN TORRES

Loan Officer, Dealer Center Ph: 544-3532 jonathan.torres@centralpacificbank.com

Member FDIC

centralpacificbank.com

Matsumoto The Enterprise Way & Clapperton Advertising Client: Central Pacific Bank Pub: Hawaii Dealer Magazine Size: 7.675” x 4.9”

Serving with Aloha in Hawaii since 1994.

Date: 9.8.17 Job# 17-CPB-0631 Run date: 3rd Qtr. 2017 Mtls: PDF-X/1a

Pick-up subject to geographic and other restrictions. ©2013 Enterprise Rent-A-Car E01923 11.13

21


FACT OR FICTION? The legislature’s intent is to only tax homes worth $1 million or more.

No one wants to tax “mom and pop” establishments under this new tax.

FICTION. The Facts: The proposed amendment would allow the legislature to establish a new tax on all “investment real property” – residential, commercial and agricultural – regardless of their value. There is NOTHING that indicates the legislature’s intent is to only tax homes worth $1 million or more. In fact, the legislature removed specific language from the ballot question that would have limited the tax to “residential investment property valued at one million dollars or greater, excluding a homeowner’s primary residence.”

FICTION. The Facts: Because there is no clear definition of “investment real property,” small businesses that rent also could be affected by this new tax.

This new tax only affects rich, out-of-state investors. FICTION. The Facts: As it stands, this new tax would affect all property owners regardless of where they live and what their property is worth. This new tax will help our keiki and public school classrooms. FICTION. The Facts: There is no guarantee of additional money for public education or that the money raised from this new tax will go to K-12 public school classrooms. The legislature could use the new funds to replace a portion of the nearly $2 billion in General Funds that currently goes to education and divert it to other priorities. In addition, the language of the bill indicates the money could go toward “public schools free from sectarian control, a state university, public libraries and such other educational institutions as may be deemed desirable, including physical facilities therefor.”

22

Hawai‘i is the only state in the country that does not use property taxes to fund schools. FACT. The Facts: Hawai‘i is the only state in the country that has a single, statewide education system which is funded at the state level and not by local counties. Elsewhere in the country, local school jurisdictions are supported by local property taxes. All of the counties are against the ballot measure. FACT. The Facts: It’s true. The Hawai’i state constitution gives the counties exclusive authority to tax real property. It is a critical source of revenue to pay for core services like police, fire, street repairs, garbage pickup and park maintenance. Giving the state authority to tax real property would undermine and interfere with this authority and will make it even more difficult for county officials to balance their budgets and will hurt the counties’ bond ratings, which means borrowing costs will go up. Hawai‘i public schools are chronically underfunded. FICTION. The Facts: According to the Education Week Research Center’s 2018 Quality Counts survey, Hawai’i spends $13,436 per pupil, which is higher than the national average of $12,526 per pupil.

Money raised from this new tax will go toward raises for Hawai‘i’s teachers.

This new tax is about making the 1% pay their share to help our keiki.

FICTION. The Facts: The bill does not guarantee money from this tax will go toward raises for teachers. As it stands, this new tax could actually hurt teachers who live in rented homes and make it even more difficult to afford to live in Hawai‘i. It is critical to remember, when taxes go up, so does rent.

FICTION. The Facts: This new tax will raise the cost of living for 100% of Hawai’i residents by increasing the cost of residential rents and increasing the cost of goods and services. All of the language that guaranteed the money would help our keiki was taken out of the bill before it passed.


Your Complete

Service Retention Program Following up with customers who decline services doesn’t have to be difficult. Let Reynolds help you: • Send effective print and email declined service reminders. • Check your advisors’ recommendations for proper spelling and grammar. • Track your ROI with online reporting and monthly, in-person reviews.

Contact your Reynolds Document Consultant, Kyle Madison, today to start bringing valuable customers back to your dealership.

619.577.0527 Kyle_Madison@reyrey.com


T:7.625”

Introducing Your new digital retailing solution from Autotrader.

Work deals online, with flexibility

Offer consistent payments and pricing

Know more about every customer

T:10”

Turn every listing into a done deal, only with your . Amplify your online engagement

Demand more from your third-party sites. YourNewGOTO.com/Accelerate

Cars for Sale

Sell My Car

Trade in My Car

Car Research & Reviews

Find Local Dealers

Finance

Loans

$338/mo

Insurance

Lease

$301/mo

Offer Price / 30,000 Search For Specials

Credit Score / 700

Financing / 72 mo. @ 4.9% APR

Trade in / 5,000

Cash Down / 2,400

© 2018 Cox Automotive, Inc. All Rights Reserved. Autotrader is a registered trademark of TPI Holdings, Inc. used under exclusive license.

CAT201800023_Autotrader_DRad_HawaiiADA_FP.indd 1

Send Offer

9/4/18 3:54 PM


Self-Driving Vehicle Legislation Must Preserve a State’s Right to License and Regulate Vehicle Commerce (H.R. 3388/S. 1885)

Issue Congress aims to finalize legislation to advance self-driving vehicles (H.R. 3388/S. 1885) by preempting certain state laws to avoid automakers having to build different self-driving vehicles for different states. Historically, the federal government has preempted only state laws that impact vehicle design, construction and safety. Congress must ensure self-driving vehicle legislation retains a state’s traditional role to provide consumer protections, and license and regulate vehicle commerce within its borders. Background The Senate Commerce, Science, and Transportation Committee approved S. 1885 last year. While the bill clarifies that state laws regarding the sale, distribution, repair or service of self-driving vehicles are not preempted, the bill lacks a technical amendment to ensure that state vehicle licensing/franchise laws protecting the rights of dealers and consumers are not nullified. NADA expects this technical issue will be corrected before full Senate consideration to ensure these state vehicle laws are fully protected. The House-passed bill, H.R. 3388, includes bipartisan language to clarify that state vehicle licensing/franchise laws as applied to self-driving vehicles are not preempted. Ensuring the correct federal/state relationship is critical, as states have traditionally had the right to license and regulate the distribution, sale and service of vehicles in their state, based on the states’ desire to protect consumers and businesses that provide price competition, local jobs, and significant local and state tax revenue. These rights are reserved to states under the 10th Amendment to the Constitution. For decades, state vehicle franchise laws have included important consumer protections and regulated the disparity in size and power between local dealers and multinational automakers to help level the economic playing field. Such protections for state residents are especially important, as there are new risks, as well as opportunities, associated with self-driving technologies, and new entrants rapidly entering the auto market. Traditionally, the federal government has preempted only state laws that impact vehicle design, construction and safety to ensure uniform rules across all 50 states. Auto dealers support this defined and well-established federal role regarding self-driving vehicles. Key Points • • •

Congress should enact a balanced federal preemption (as in H.R. 3388/S. 1885) that enables states to continue to exercise their right to license and regulate the distribution of vehicles. H.R. 3388/S. 1885 properly clarify that state laws regarding the sale, distribution, repair or service of AVs are not preempted to preserve state vehicle franchise laws protecting the rights of dealers and consumers. S. 1885 should include a technical “conforming” amendment before Senate consideration to fully ensure that state vehicle licensing and franchise laws are not preempted.

Status The House passed H.R. 3388 in September 2017. Senate sponsors of S. 1885 are seeking agreement to attach the committee-passed bill to a must-pass measure on the Senate floor. Congress must ensure that final self-driving vehicle legislation fully and explicitly preserves state vehicle licensing/franchise laws.

September 6, 2018

25


New Auto Tariffs Will Threaten U.S. Jobs and Hurt Consumers In May 2018 the Trump Administration initiated an investigation that could result in tariffs of up to 25% on imported automobiles and auto parts. The President has been crystal clear: He wants to negotiate better trade deals for America, and he’s right to want that. But steep, new tariffs on autos and auto parts, if implemented broadly, would hurt the auto industry and our customers. New tariffs would increase prices, stifle demand for new cars, and cost dealership jobs. And new tariffs would impact both domestic and international brands.

Most new vehicles sold in the U.S. are made in the U.S. by both international and domestic brands.

No vehicle is 100% domestic. On average, vehicles assembled in the U.S. have an international parts content of 40%.

24% of new vehicles sold in the U.S. are made in either Canada or Mexico, mostly by domestic brands.

40

%

Sourcing of U.S. Light Vehicle Sales, 2017 OTHER GERMANY SOUTH KOREA JAPAN

CANADA

10%

11%

% 3% 5

5%

U.S. FIRMS

29%

48%

U.S. Sales of Imported Vehicles

14% MEXICO

INTERNATIONAL PARTS

52%

U.S. Sales of U.S. Produced Vehicles

23% INTERNATIONAL FIRMS Source: The Center for Automotive Research

Source: The Center for Automotive Research

New tariffs would hit both U.S.-built and imported vehicles. A 25% tariff applied to all imported autos and auto parts would lead to an increase in the price for all vehicles sold in the U.S.

Average Increase

$4,400

$2,270

$6,875

ALL VEHICLES

U.S.-BUILT

IMPORTED

$78 INCREASE IN AVERAGE MONTHLY CAR PAYMENT Sources: The Center for Automotive Research; NADA

N A T I O N A L

26

A U T O M O B I L E

D E A L E R S

A S S O C I A T I O N


CONNECT, CLOSE, AND GET TO THE NEXT DEAL with CU Direct’s Automotive and Aftermarket Solutions

CUDL Credit Union Financing Platform

AutoSMART Online Auto Shopping

VERO Vehicle Aftermarket Solutions

Mahalo for 14 years! CU Direct proudly serves 66 dealers and 21 credit unions on all four major Hawaiian Islands. Aloha Pacific FCU // Big Island FCU // Gather FCU // Hawaii Schools FCU // Hawaii State FCU // Hawaiian Tel FCU // Hawaii USA FCU Hickam FCU // Honolulu FCU // Honolulu Fire Department FCU // Kauai Government EFCU // Matanuska Valley FCU // Maui County FCU // Maui FCU // Oahu FCU Operating Engineers FCU // Pearl Hawaii FCU // Pentagon FCU // University of Hawaii FCU // Valley Isle Community FCU // Windward Community FCU

For more information, call Andrea Hussey-Leong at (808) 782-4960 or visit CUDirect.com

Connect with

87%

of all online shoppers*

Your COMPLETE digital media, marketing, and deal-making solution. Proud Supporters of HADA and the entire automotive community of Hawaii. To learn more, please contact: Leah.Hookala@coxautoinc.com

*Source: 2017 Cox Automotive Car Buyer Journey Study; based on use of Autotrader, Kelley Blue Book, Dealer.com.

27


MOVING HAWAI‘I EVERY DAY FREQUENT, AFFORDABLE INTER-ISLAND SERVICE SINCE 1900 www.YoungBrothersHawaii.com

Photo: Kaiwi Channel by William Renio

Hotel Linen Restaurant Linen

Hotel Linen • Restaurant Linen Hotel Linen Uniforms Uniforms • Dust Control Restaurant Dust Control Linen Janitorial Supplies Janitorial Supplies

Automated UniformsRestroom Products Automated Restroom Products

www.alsco.com Janitorial . . 808 Supplies834 7500 Dust Control

www.alsco.com 808 . 834 . 7500 28

Automated Restroom Products Serving Hawaii Since 1964


This year’s HADA-initiated bill updating Hawaii’s Motor Vehicle Franchise Act with 6 new provisions became law July 10, 2018 This legislative session more than 2,000 bills were submitted by Hawaii’s 76 legislators adding to the many bills carried over from last session. Some 200 bills or so, have become law, as of July 10, 2018—including our HADA-initiated bill, SB2490. Now, 6 new provisions have been added to Hawaii’s motor vehicle industry franchise law. Seamless transfer of sales staff Under the new law, dealerships with common ownership can transfer sales staff seamlessly between dealerships without the need to apply and pay for a sales license transfer. An MVILB form must be approved.

During this past legislative session the HADA board met with Gary Slovin, the local representative for the Alliance of Automobile Manufactures and the Alliance’s Curt Augustine, who is based out of California. They are shown at the end of the table. Brad Nicolai, far right, and Wayne De Luz, far left co-chaired the legislative committee’s franchise law subcommittee.

1% Payment/Month for used vehicles on stop-sell When a replacement part for a used vehicle on stop-sell is not made available, a payment of 1% of the value of the use vehicle per month will be paid by the manufacturer to the dealer, if requested by the dealer.

Facility upgrade applicable for 10 years A manufacturer or distributor may not require a dealer to construct, renovate, or make substantial alterations to the dealer’s facility if the dealer has completed a construction, renovation, or substantial alteration to the same component of the facility that was required and approved by the manufacturer or distributor within the previous ten years. “Substantially similar” goods or services may be used If goods, building materials, or services of a substantially similar appearance, function, design, and quality are available from other sources; and the franchised motor vehicle dealer has received the

manufacturer’s or distributor’s approval then such may be used in renovations or construction. Fairness in sales and service performance requirements If the sales or service performance standard is to be used as the basis for a termination of a dealer, then the performance standard shall be deemed unreasonable, arbitrary, or unfair if the standard does not include material and relevant local market factors. Data access by manufacturer Under the new law, a manufacturer or distributor may not require a dealer to grant the manufacturer or distributor access to the dealer’s data management system to obtain consumer and proprietary data. The data access provision is relatively new law in this relatively new area. Hawaii is one of the first states with such a provision. See SB2490 for all the details at www. capitol.hawaii.gov 29


Advertise In The

HawaiiDealer Established under HADA president Charlie King in 2002, the HawaiiDealer is a quarterly magazine that provides information on the activities of HADA members to a wide audience, including the membership of the Association, key employees at the dealerships, legislators, city council members, Hawaii media, the Congressional Delegation, and many Hawaii sister organizations. HADA appreciates the “sponsorship” of the official publication through the provision of sixth, third, half, and full-page color messages.

The Official Pub lication of the H awaii Automobi le Dealers Assoc iation

2018 1st Quarter Edition

The Official Pub lication of the H awaii Automobi le Dealers Assoc iation

... soon, to everything.

Mahalo!

See story pages 8, 9, and 10

5G LTE

For more information, contact Custom Publishing Design Group, Inc. Tel 860-513-1213  Fax 860-513-1216 MyCompanyMagazine.com

2018 Summer Edition

The big “if” in tariff…

See story pages 8-10

(small wave) broadband

Covering Data thru June

2018

Hawaii Auto Outlook

if f

Sponsored by: Hawaii FORECAST

Automobile Dealers

r Ta

State New Vehicle Market

Remains Strong in First

Below is a list of 10 key trends and developments in the Hawaii vehicle market: new

Also in this Edition...

1. State new retail registrations declined a slim 1.6% in the first half of this year versus a year earlier. The U.S. market fell by less than 1%.

2. As shown on the graph below, the market has plateaued during the past several years, with sales remaining at elevated levels. 3. Auto Outlook’s annual forecast for 2018 new retail light vehicle registrations: 58,750 units, down slightly from 2017. 4. Light truck market share increased from 63.4% during the first six months of 2017 to 67.2% this year. 5. Registrations for European brands were up 4% so far this year, while the overall market declined.

sara@ HADA recognizes Walter Dods, First Hawaiian International Jr.—founder of the Auto Show. This year marks the show’s 40th year. See auto show story pages 8–10

The First Hawaiian International Auto Show annually keeps Hawaii “connected” with new automotive styles and new technology. See story on pages 8–10

Volume 17, Number TM

Association

Market Outlook for next two years: New vehicle sales should remain above average; uncertainties increasing

Dealer Day at the Capitol was held February 15, 2018. Please see the multi-page pictorial on pages 13–18

or

NO

Also in this Edition... Annual Trend in State

Market

Market Summary

Also see the HADA website at www.hawaiiautodealer.com

The Big Bang for EV Uptake or Epic Pile-up? Global consulting firm AlixPartners predicts “a pile-up of epic proportions” but HADA proposes a solution.

New light vehicle registrations

70,000 60,000 50,000 40,000 30,000 20,000

48705

54039

57094 58485 59137 58750

10,000 0

2010 2011 2012 2013 2014 2015 2016 2017 2018 Historical Data Source: IHS Forecast Markit. The graph above shows annual See the Hawaii new retail light vehicle registrations in Auto thru 2017 and Auto the state from 2010 Outlook’s projection for allOutlook. of 2018.

See pages 12, 13, and 14

Cavanah Associates, Inc. Cavanah Associates, Inc. An Independent Insurance Agency Specializing in: An Independent Insurance Agency Specializing in:

II

A U T O M

29

O

B

H

A

E IL N

hada IO

A

E

30

www.cavanah.com www.cavanah.com

A

L

E

R

Domestic European Japanese Korean

YTD '17 thru June 29,740

YTD '18 % Chg. thru June '17 to '18 29,258 -1.6%

Mkt. Share YTD '18

10,893 18,847

9,603 19,655

-11.8% 4.3%

32.8% 67.2%

6,340 2,782 18,683 1,935

6,283 2,892 18,219 1,864

-0.9% 4.0% -2.5% -3.7%

21.5% 9.9% 62.3% 6.4%

Source: IHS Markit. Domestics consist of vehicles sold by GM, Ford, FCA (excluding Tesla. Historical FIAT and Alfa), and See the figuresinformation were revised by IHS on Markitthe and will differ slightly from shown in previous releases. those

Nov. 6th ballot issue.

See pages 22, 25, 26, and

D

Phone: (808)537-1970 Phone: (808)537-1970

Vehicle Service Contracts Vehicle Service Contracts GAP Protection Programs GAP Protection Programs Homeowners Insurance Homeowners Personal AutoInsurance Insurance Personal Auto Insurance Dealer Enhancements Dealer Enhancements Group Life and More! Group Life and More!

W

TOTAL Car Light Truck

42463 32649 35576

Protecting Our Customers' Assets Commercial & Personal Insurance Protecting Our Customers' Assets Serving & Supporting HawaiiÕ s Auto Dealers Since 1976 Serving & Supporting HawaiiÕ s Auto Dealers Since 1976

Full Dealer Package Full Dealer Package Garage Liability Garage Liability Property Insurance Property Damage Insurance Physical Physical Damage Workers Compensation Workers Compensation Employment Practices Liability Employment Practices Liability

Strong economic growth, rising employment, and increasing incomes have helped keep new vehicle sales at elevated levels. Some potential storm clouds are on the horizon, however. Negative fallout from tariffs, rising interest rates, and inflationary pressures are concerns for the market.

6. Alternative powertrain (hybrid and electric vehicle) market share was 6.1% thru June of this year, up slightly from last year. 7. Three biggest segments in the state are Compact SUV, Compact/ Mid Size Pickup, and Compact Car.

YES

Half of 2018

8. Brands with the largest percentage increases in registrations during the first six months of this year (among top 30 brands): Tesla, Land Rover, Volkswagen, Volvo, and Subaru 9. State market share leaders in the first Honda, Nissan, Ford and Chevrolet. half of 2018 were Toyota, 10. Top ten selling vehicles in state market: Toyota Tacoma, Toyota 4Runner, Honda CR-V, Honda Civic, Toyota RAV4, Nissan Rogue, Toyota Camry, Ford F-Series, Toyota Corolla, and Honda HR-V.

I A A S S O C

T

Please see page 18

3


From Ship to Showroom Pasha Hawaii offers Hawaii auto dealers and rental car companies versatile ocean transportation services between Hawaii and the Mainland, with fully enclosed decks on our roll-on/roll-off vessels for maximum protection of all vehicles. Direct Ro/Ro service available from Los Angeles and San Diego, CA to Hilo, Kahului, and Honolulu, HI.


YOU’RE GOING TO LOVE OUR 2019 MODEL.

On the roadways or the sea lanes, there’s no denying the importance of a top-of-the-line fleet. The first of our two new Kanaloa Class con-ro vessels is coming in late 2019, as we begin to roll out a $500 million investment to better serve you, our friends and partners in Hawaii’s auto dealerships. We’ve been shipping automobiles to Hawaii for almost as long as there have been cars, and HADA members can continue to count on Matson to deliver. Visit Matson.com.


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.