HawaiiDealer

The Official Publication of the Hawaii Automobile Dealers Association

2017 1st Quarter Edition

START THE

EXCITEMENT! AT THE TAKING THE SHOW TO A WHOLE NEW LEVEL...

More supercars than ever A hot concept car that was one of the stars of the SEMA show Lots of brawny trucks Sculpted-body sportscars Wall-to-wall displays

MARCH 24–26 See President's remarks page 4

Also in this Edition...

Dealer Day at the Capitol See pictorial, pages 14–17

See how online vehicle registration will speed up commerce.

Page 8

HADA Convention room reservations are open.

See page 30

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The 2017 Corolla iM. Available now at your Toyota Hawaii Dealers.

The Official Publication of the Hawaii Automobile Dealers Association

2016 1st Quarter Edition

Sponsors of the

HawaiiDealer help HADA dealers fulfill the association’s mission.

Why Auto Dealers Matter...

Kauai new car dealerships.

Note: Kauai’s Grand Hyatt will be the site for the 2016 HADA convention.

see story on page 8

Also in this Edition...

HADA dealers lunch with Bob Lutz

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

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

page 14

The Official Publication of the Hawaii Automobile Dealers Association

2016 Summer Edition

Q: Will dealers operating in the blind bring down State Tax Revenues?

A: Yes

THE HADA Mission: "To help auto dealers comply with the laws, to make car buying (and servicing) by the general public, trouble free.”

See Story Page 8.

Registered vehicle data, which has not been available for 10 months is now slowly starting to flow.

See Hawaii Auto Outlook pages 20, 21, 22, and 23.

Also in this Edition...

Communications are key. Mahalo to all of the 25 sponsors of the official publication of the Hawaii Automobile Dealers Association.

Here’s to a great 2017!

HADA provides featured presentation for visiting Japan Auto Dealers Association page 14

HADA board discusses convention plans and other agenda items. See story on long lines at DMVs. page 27

Come to Kauai. Learn what’s ahead for the auto industry at the HADA 57th Convention Oct. 13-16 page 12

The Official Publication of the Hawaii Automobile Dealers Association

2016 Convention Edition

At the 57th HADA Convention October 13-16, 2016 Grand Hyatt Kauai

Advertise In The

HawaiiDealer

KAUAI 2016

At the 2016 HADA convention you’ll be provided insights on the No. 1 word on top-selling dealer websites, p. 8 See President Bill van den Hurk’s comments, p. 4 See Hawaii Auto Outlook pages 20, 21, 22, and 23.

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.

Also in this Edition...

Providing a Solution: Hawaii dealers met with Senator Brian Schatz to discuss S. 2663 — a solution to CFPB’s flawed guidance. page 11

Sponsors provide record $100,000-level of support for the HADA convention. page 4

Hawaii Forecast …remains positive.

The Hawaii Auto Outlook provides numbers useful for planning. page 20

The Official Publication of the Hawaii Automobile Dealers Association

2016 4th Quarter Edition

Mahalo!

Jim Falk is Hawaii’s 2017 Dealer of the Year

For more information, Contact Custom Publishing Design Group, Inc. Tel 860-513-1213

Fax 860-513-1216

sara@MyCompanyMagazine.com

Jim Falk’s Maui dealerships provide 400 to 500 bicycles and helmets to kids at Christmastime. See story page 14

Also in this Edition...

Also see the HADA website at www.hawaiiautodealer.com Pete Luke and Byron Hansen emceed the Awards Night at the HADA convention on Kauai which drew a record 262 attendees.

See page 10

New vehicle registrations leveling off — see Hawaii Auto Outlook.

Page 26

The “Bloody Thorn” — a story shared at the annual meeting of the association. See page 11

Hawaii Automobile Dealers Association 1100 Alakea Street, Suite 2601 Honolulu, HI 96813

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2012-2013 2016-2017 HADA HADA O FFICERS & DIRECTORS OFFICERS & DIRECTORS PRESIDENT Mike Niethammer Brian Kitagawa PRESIDENT-ELECT Bill vanUekawa den Hurk John VICE ICE P PRESIDENT RESIDENT V (ULF )XNXQDJD Eric Fukunaga SECRETARY ECRETARY S Joe Nicolai Wayne De Luz TREASURER TREASURER Kenny Ching John Uekawa NADA DIRECTOR NADA DIRECTOR Stan JoeMasamitsu Hanley HAWAII DIRECTOR HAWAII DIRECTOR Jackie De Luz Watanabe Wayne De Luz MAUI DIRECTOR MAUI DIRECTOR Jim Falk 'DPLHQ )DULDV KAUAI DIRECTOR O AHU DIRECTOR Mike Niethammer Stan Masamitsu OAHU DIRECTOR OAHUMasamitsu DIRECTOR Stan Morrie Stoebner OAHU DIRECTOR Michael OAHU DStoebner IRECTOR Jack Jackson OAHU DIRECTOR NickDCutter OAHU IRECTOR Keppel ODan AHU D IRECTOR Brad Nicolai KAUAI DIRECTOR AT-L ARGE DIRECTOR Dan Mackey Marc Cutter AT LARGE DIRECTOR ATKeoni -LARGEHansen DIRECTOR

A Feeling of Enthusiasm and Eagerness There’s lots of enthusiasm in the air here in Hawaii.

The 2017 First Hawaii International Auto Show’s theme “START THE EXCITEMENT!� captures the feeling.

As I get behind the HADA wheel as president this year, and push the start button, I’m deeply grateful for the many dealers and associate members who have worked so hard to make HADA a respected industry trade association.

Over the years, your solid contributions to our PAC. Your high participation rate in our annual HADA convention. Your active involvement with Dealer Day at the Capitol. Your support for the Teacher of the Year.

Your involvement in national issues at NADA’s Washington Conference. All have made HADA well known and respected for standout leadership with regard to providing solutions.

If HADA can help the City and County of Honolulu get online vehicle registration up and running at full strength by July 1, as called for in the bill we recently initiated, and helped shepherd to passage, then there will deďŹ nitely reason for excitement this year.

I look forward to working with fellow dealers and our associate members to provide solutions for the many issues facing our state and our industry. Here’s to a great 2017!

Brian Kitagawa 2017, 2018 HADA president

Keoni Hansen IMMEDIATE PAST PRESIDENT IMMEDIATE PAST PRESIDENT Nick Cutter Bill van den Hurk

HADA STAFF HADA STAFF ([HFXWLYH 'LUHFWRU Dave D Rolf EXECUTIVE IRECTOR Dave Rolf 'HDOHU 6HUYLFHV 0DQDJHU *HRUJH &RFKDUG

HawaiiDealer is designed & published by Custom Publishing Design Group, Inc.Ž ‡ ZZZ 0\&RPSDQ\0DJD]LQH FRP 7R DGYHUWLVH LQ DQ XSFRPLQJ LVVXH FRQWDFW 6DUD 5XVVHOO H[W RU H PDLO VDUD#P\FRPSDQ\PDJD]LQH FRP

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

F H B . C O M / Y E S

Move cars at the speed of Yes. Boost sales Our quick approvals keep your customers happy and business moving in the IDVW ODQH 3DUWQHU ZLWK XV DQG OHWȇV FKHFN RÎ? \RXU Č´QDQFLDO PLOHVWRQHV WRJHWKHU It all starts with Yes. Call our Dealer Center at 844-3860.

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&Žƌ DŽƌĞ /ŶĨŽƌŵĂƟŽŶ ŽŶƚĂĐƚ͗ Linda R. Fisher, President WŚŽŶĞ͗ ;ϳϭϰͿ ϲϭϮͲϲϭϳϲ ͻ ͲDĂŝů͗ ůŝŶĚĂΛĚĞĂůĞƌĂƐƐƵƌĂŶĐĞŐƌŽƵƉ͘ĐŽŵ

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HADA’s Letter to Mark Wong

March 9, 2017 Mr. Mark D. Wong Chief Information Officer Director, Department of Information Technology City and County of Honolulu Frank Fasi Municipal Building, 650 S. King St., 5th floor Honolulu, Hawaii 96813 Subject: DIT’s request for our industry to provide a “Dream List” showing the desired features of a DMV online registration system for new and used motor vehicles Dear Director Wong: The members of our industry much appreciated the opportunity to meet with you Friday, February 25, 2017 in your office, along with third-party service providers, to discuss the launch of a DMV online registration system for new and used motor vehicles.

We also appreciate Councilmember Kymberly Pine’s attendance at the meeting and her offer to coordinate with the City and County of Honolulu Corporation Counsel regarding authority for DIT to request and use dealer-provided account number information for a beta test of an ACH system that would allow dealers to pay by check online, for City registration services.

With regard to DIT’s request for our industry to provide a “Dream List” showing the desired features of a DMV online registration and ownership transfer system for new and used motor vehicles, please see the following overview statement, provided by Greg LeLesch of Manheim/Cox Automotive, describing a desired system: A motor vehicle buyer signs an electronic version of the title form at purchase that conveys the buyer’s name, address, and miles on the vehicle. The title information is completed by the dealer once the financing (if any) is finalized, and is submitted to DMV for review and approval. The approved file triggers a fee deduction from the dealer’s account and an email is sent to the buyer and dealer recording title transfer and reference number.

Registration, inspection sticker, and plate (for new car) are printed and provided to the customer by the dealer, with the assistance of a bonded third-party service provider of registration services.

8

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HADA’s Letter to Mark Wong

page 2/3

In the short-term, our industry is pleased to offer help in launching the Automated Clearing House (ACH) feature by providing account numbers for a beta test of the system. We understand that DIT is seeking approval from Corporation Counsel, through Councilmember Pine, one of the co-sponsors of Bill 64 (2016) CD1 relating to motor vehicle registration.

The industry “wish list” for the modification of the existing Fleet-Dealer Registration process for new motor vehicles, to be able to accommodate registration and ownership transfer of used motor vehicles, which are free of “stoppers” and already registered in the dealers’ names, would ideally be a system that would: (1) have third-party service providers who would train dealership title office personnel, help equip and service the system for dealerships on a 24/7 basis, thus relieving the counties from any responsibility for keeping the system running smoothly at dealerships, (2) record transfer of the current plates on a used vehicle from the dealer to the new owner (3) have secure online access to the DMV system, or have a separate screen-scrape (air gap) system, that allows dealerships through bonded vendors to edit data fields including: UÊ registered owner’s name field UÊ registered owner’s address field(s) UÊ lienholder name field UÊ lienholder address field UÊ vehicle inspection field UÊ date of sale field UÊ odometer notation field UÊ and perhaps several other existing data fields (4) have online payment capability through ACH (5) have the capability to print a vehicle inspection sticker (6) have the capability for the dealer to send any needed documents to DMV digitally (7) have eSignature documents, sent digitally, carry the same legal authority as hard-copy documents (8) have an online signature library for all counties to compare signatures with one Power of Attorney that is good in all counties.

(9) Have the ability to electronically surrender plates, or put plates in storage for a vehicle that will be put in storage or scrapped.

Director Wong, the above is the information provided to HADA so far for transmission to your office in response to your request for “wish list” information by March 10. NOTE: TAGS owner, Donna Smallwood’s one-page summary of the desired EVR process, sent earlier to you by Donna, is also attached.

HADA dealers much appreciate the opportunity to work with the City and County’s Department of Motor Vehicles, your office at DIT, Councilmember Pine and her office staff, and Hawaii’s experienced third-party service providers of information technology services to create an online registration and ownership transfer system that will allow commerce to flow smoothly and efficiently in Hawaii, and our dealerships’ customers to quickly possess the documents needed to legally operate their vehicles on Hawaii’s roadways.

10

HADA’s Letter to Mark Wong

page 3/3

I can be reached at the HADA office at 808 593-0031 or anytime on cell at 808 223-6015.

With best regards, David H. Rolf, for the members of the Hawaii Automobile Dealers Association

DMV Drop-Off Pick-up Later ___x days (limit 1 at some)

Stand in Line at Satellite City Halls ___x hours (limit 1 at some)

Dealership Clerk/ 3rd part clerk w/ DMV online system (quick, efficient)

Bank pays Dealer

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11

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© 2017 Manheim, Inc. All rights reserved. Manheim M logo is a trademark of Manheim, Inc. *In 2016, Manheim Hawaii sold 5004 dealer vehicles for a 70% sale rate.

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D E A L E R D AY Rep. Cynthia Thielen points to a picture of her X friend Joe Nicolai as Eric Fukunaga looks on

Bill van den Hurk shows how “Commerce Occurs” but notes that it can be delayed in the currently cumbersome DMV registration process. Sen. Mike Gabbard, right, wrote a letter inquiring of City officials about progress on the online registration system.

Rep. Aaron Johanson, right, is greeted

by Ivan Nakano. Rep. Sean Quinlan is shown in the center.

Rep. Jimmy Tokioka is shown a HADA relic, “the bloody thorn” by Dave Rolf. The thorn X symbolizes a tax problem for dealers removed by legislators, with Rep. Tokioka’s help.

L-R John Uekawa, Sen. Gil Rivera, Sally Uekawa, Sen. Russel Ruderman

L-R Mike Niethammer and Sen. Roz Baker Note: Sen. Baker was the Senate sponsor of the Franchise Bill in 2010.

14

L-R Brian Kitagawa, Eric Fukunaga, Rep. Ryan Yamane, Stan Masamitsu

Rep. Bert Kobayashi and Stan Masamitsu

AT THE CAPITOL

L-R, Mike Niethammer, Rep. Lauren Matsumoto, Rep. Scott Saiki, and Keoni Hansen

11:30 a.m.- 1:30 p.m.

Thursday, February 16, 2017, Hawaii State Capitol

HADA president Brian Kitagawa and Rep. Marcus Oshiro

Rep. Richard Creagan, Rep. Nicole Lowen, Michael Stoebner and Ivan Nakano Dave Rolf shows HawaiiDealer story on the economy to Sen. Donna Kim (middle) and Rep. Sylvia Luke

L-R Sen. President Ron Kouchi, John Uekawa, Bill van den Hurk, Sen. Michelle Kidani

Stan Masamitsu, Sen. Clarence Nishihara, Brian Kitagawa

L-R Michael Stoebner, Russ Wong, Rep. Cindy Evans, Alan Ueyoka

Rep. Nadine Nakamura and Mike Niethammer

15

Dealer Day at the Capitol

L-R Sen. Clarence Nishihara, Russ Wong, Sen. Roz Baker, Keoni Hansen, Brad Nicolai, Michael Stoebner

16

page 3/4

Rep. Sam Kong and Brian Kitagawa

L-R, Rep. Mark Nakashima, Brian Kitagawa, Sen. Michelle Kilani, Rep. Sylvia Luke

Rep. Jarrett Keohokalole and Dave Rolf

L-R, Rep. Cedric Gates, Brian Kitagawa, Rep. Lauren Matsumoto, Mike Niethammer, Russ Wong

L-R Dave Rolf, Sen. Kalani English, Sen. Will Espero, Sen. Donovan Dela Cruz, Stan Masamitsu

Dealer Day at the Capitol

page 4/4

Rep. Isaac Choy, Bill van den Hurk (right), Alan Ueyoka, middle

L-R, Brad Nicolai, Keoni Hansen, Rep. Mark Hashem, Mike Niethammer, Rep. Roy Takumi, Michael Stoebner

L-R Alan Ueyoka, Bill van den Hurk, Rep. Scott Saiki, Rep. Ty Cullen, Russ Wong, Rep. Cedric Gates

L-R, Rep. Marcus Oshiro, Rep. Romy Cachola, Dave Rolf, Sen. Laura Thielen

Rep. Romy Cachola, Sen. Les Ihara

L-R Russ Wong, Rep. Isaac Choy, Rep. Dee Morikawa, Bill van den Hurk

Mike Niethammer and Rep. Linda Ichiyama

Brian Kitagawa and Rep. Takashi Onishi

Sen. Maile Shimabukuro, Rep. Jimmy Tokioka and Russ Wong

17

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Assistant Vice President, Dealer Center Ph: 544-6815 Fax: 532-4200 sean.tanaka@centralpacificbank.com

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See if you can save money with time-of-use rates Hawaiian Electric now offers a way you may be able to save money on your electric bill if you can use more electricity during the day – when solar power is abundant – and less in the evening or at night.

How much? It depends. The more you shift your electric use to mid-day from the evening peak or overnight, the more you may save. How? Simple things like installing a water heater timer or doing laundry at mid-day on the weekend can help. If you run a pool pump or charge an electric vehicle, doing it at mid-day may save, too.

,QWHULP 7LPH RI 8VH 5DWHV

These rates are available for residential customers of Hawaiian Electric, Maui (OHFWULF RU +DZDL¶L (OHFWULF /LJKW &RPSDQ\ Participation is voluntary and limited to 5,000 customers. If you sign up, your bill will contain information comparing your cost and the normal residential rate. You may opt out DQ\ WLPH LI \RX IHHO LW LVQ·W ULJKW IRU \RX

To enroll, or for more information www.hawaiianelectric.com/timeofuse TOU@hawaiianelectric.com CALL: 2¶DKX

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45 40

Price (¢ per kWh)

This chart shows how time-of-use rates work, seven days a week, based on October ZKHQ WKH HIIHFWLYH UDWH RQ 2¶DKX ZDV 24.1 cents/kWh. Rates will likely change up or down each month, but relative savings will be about the same.

35

37.3¢

30

24.1¢/kWh – Oct 2016

25

23.7¢

20 15

14.9¢

10

Off-Peak

5 12

1

2

MIDNIGHT

3

4

5

6

Mid-Day 7

8

9

10 11 12

1

NOON

2

On-Peak 3

4

5

6

7

8

9

10 11

EVENING

Hours *Illustration reflects October 2016 Interim Time-of-Use rates. Neighbor Island rates may vary.

To understand how charging an electric vehicle at home may affect a FXVWRPHU·V WRWDO HQHUJ\ FRVWV YLVLW www.hawaiianelectric.com/wattplanforEV.

News from NADA Damien Farias Honored by NADA

N

ADA’s President’s Club members join with an initial $5,000 donation to the NADA PAC and contribute $2,500 a year thereafter to remain a member.

Longtime HADA member and former NADA director from Hawaii, Damien Farias, received this plate from NADA in recognition of 25 years as a President’s Club member.

Much thanks to Damien for his longtime service on the NADA board of directors and the HADA board of directors and for his longtime support of NADA’s PAC. Other active President’s Club members from Hawaii are Eric Fukunaga and Stan Masamitsu. Hawaii dealers contribute annually to the NADA PAC which provides contributions to office seekers for seats in the U.S. Congress.

NADA Dealership Workforce Study (DWS) is open for participation now through April 28

H

awaii dealers are asked to participate in the NADA Workforce Study. Dealers can participate by logging in at www.nadaworkforcestudy.com. The Dealership Workforce Study provides analysis, by state or market area, of dealership pay plans and benefit packages, retention and turnover, employee benefits, work schedules and demographics. The study is based on actual payroll data and questionnaire responses submitted by NADA members. In return for participating in the study, dealerships receive two complimentary reports: (1) Automotive Retail: National and Regional Trends in Compensation, Benefits and Retention and (2) a custom report, which includes comparisons of the dealership(s) to peers nationally, regionally, by state and brand. All data must be submitted by April 28, 2017. To participate in the study, dealers should go to www.nadaworkforcestudy.com to begin. For questions, please email WorkforceStudy@nada.org.

21

Covering Data thru December 2016

Volume 16, Number 1

™

Hawaii Auto Outlook

Sponsored by: Hawaii Automobile Dealers Association FORECAST

Hawaii New Vehicle Market Moved Higher in 2016 New vehicle sales predicted to remain strong in 2017 Below is a summary of eight trends and developments in the Hawaii new vehicle market.

State new retail light vehicle registrations exceeded 58,000 units in 2016 As shown on the graph below, the state new vehicle market has fully recovered from the low point in 2010. Registrations in 2015, 2016, and 2017 should exceed ‘10 levels by more than 24,000 units.

New vehicle sales likely to stabilize in 2017 As mentioned in the previous release of Auto Outlook, there are many uncertainties related to the forecast for this year, but the basic outlook has not changed. Registrations are expected to even off, but should remain strong based on historical standards.

Trucks grab a larger share of state market Light truck market share increased from 56.5% in 2015 to 61.4% last year.

Alternative powertrain market declines State registrations of hybrid and electric cars and trucks slipped 1.8% in 2016, while the overall market was up 2.4% for the entire year.

Toyota, Honda, Nissan, Ford, and Chevrolet are leaders in state market Toyota was the best selling brand last year, with a 27.8% share. Honda’s state share was 14.3%, well above its 10% share in the U.S. Jaguar, Buick, Chevrolet, GMC, Audi, and Chrysler gained a lot of ground during past year New retail registrations for each of these six brands were up more than 13% from 2015 to 2016.

Small SUVs account for 17.5% of market Combined market share for Subcompact and Compact SUVs increased to more than 17% during 2016. Small Car market share fell by three points.

Percent Change in State Light Truck and Car Registrations 2016 vs. 2015 Light Trucks (Pickups, SUVs, and Vans) UP 11.3%

Honda Civic best-selling car in state market; Toyota Tacoma is light truck leader Corolla and Accord were ranked second and third behind Civic in the car market, while 4Runner and CR-V trailed the Tacoma.

Passenger Cars DOWN 9.1% Source: IHS Markit.

Annual Trend in State Market

Market Summary

New light vehicle registrations

60,000 57,094 54,039

50,000

42,463 32,878

35,576

Mkt. Share 2016

Car Light Truck

24,828 32,266

22,566 35,919

-9.1% 11.3%

38.6% 61.4%

32,649

Domestic European Japanese Korean

11,276 5,695 36,092 4,031

12,469 5,613 36,584 3,819

10.6% -1.4% 1.4% -5.3%

21.3% 9.6% 62.6% 6.5%

20,000 10,000 0

22

2016 % Chg. Annual '15 to '16 58,485 2.4%

48,705

40,000 30,000

TOTAL

2015 Annual 57,094

58,485 59,250

2009 2010 2011 2012 2013 2014 2015 2016 2017 Forecast Historical Data Source: IHS Markit.

Source: IHS Markit.

The graph above shows annual new retail light vehicle registrations in the state from 2009 thru 2016 and Auto Outlook’s projection for 2017.

Domestic brands consists of vehicles sold by GM, Ford, FCA (excluding FIAT and Alfa Romeo), and Tesla.

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24

Hawaii Auto Outlook

Page 2

MARKET TRACKER: QUARTERLY RESULTS

MARKET TRACKER: SEGMENT MARKET SHARE

State Market Up in 4Q ‘16

Pickup Share Moves Higher

QUARTERLY TREND

CHANGE IN SEGMENT MARKET SHARES - 2016 VS. 2015

Percent Change in State and U.S. New Vehicle Market

% change versus year earlier

15.0%

Pickup

10.0%

Small SUV

5.0%

Luxury Mid Size and Large SUV Luxury Small SUV

0.0%

Mid Size and Large SUV

-5.0%

Van

State

-10.0%

Mid Size and Large Car

U.S. -15.0% State

Q1 '16 4.1%

Q2 '16 -0.2%

Q3 '16 -1.6%

Q4 '16 8.2%

U.S.

2.4%

-1.4%

-2.3%

2.5%

-3.0 Data source: IHS Markit.

MARKET TRACKER: STATE MARKET VERSUS U.S.

State Domestic Brand Share Trails U.S. Hawaii Market

U.S. Market

2.4%

0.2%

Passenger car market share 2016

38.6%

39.0%

Domestic brand market share 2016

21.3%

41.3%

Top 10 brands and market share 2016 First Second Third Fourth Fifth Sixth Seventh Eighth Ninth Tenth

Toyota Honda Nissan Ford Chevrolet Kia Subaru Lexus BMW Hyundai

27.8% 14.3% 9.8% 7.9% 5.1% 3.9% 3.1% 3.0% 2.7% 2.6%

US

Small Car

Data source: IHS Markit.

Percent change in registrations 2016 vs. 2015

Hawaii

Luxury and Sports Car

Toyota Ford Chevrolet Honda Nissan Jeep Subaru Hyundai Kia GMC

-2.0

-1.0

0.0

1.0

2.0

3.0

Change in market share

Hawaii Auto Outlook Covering data thru December 2016 Published for: Hawaii Automobile Dealers Association 1100 Alakea Street, Suite 2601 Honolulu, HI 96813 Phone: 808-593-0031

13.1% 12.1% 11.2% 10.0% 7.4% 5.2% 4.0% 3.9% 3.7% 3.3%

Published by: Auto Outlook, Inc. PO Box 390 Exton, PA 19341 Phone: 800-206-0102 EMail: jfoltz@autooutlook.com Editor: Jeffrey A. Foltz Reproduction, including photocopying of this publication in whole or in part, is prohibited without the express permission of Auto Outlook, Inc. Any material quoted must be attributed to Hawaii Auto Outlook, published by Auto Outlook, Inc. on behalf of the Hawaii Automobile Dealers Association, and must also include the statement: “Data Source: IHS Markit.” Unforeseen events may affect the forecast projections. Consequently, Auto Outlook is not responsible for management decisions based on the content of Hawaii Auto Outlook.

Copyright Auto Outlook, Inc., February 2017

Source: IHS Markit

25

Hawaii Auto Outlook

Page 3

BRAND SCOREBOARD

Light Truck Registrations Increase for 13 of Top 15 Brands Mercedes light trucks were up 24%, while cars were off 17% The graph on the right shows the percent change in new retail car and light truck registrations from 2015 to 2016 for the top 15 selling brands in the state. Brands are positioned from top to bottom based on the change in truck registrations.

Percent Change in New Car and Light Truck Registrations for Top 15 Selling Brands 2016 vs. 2015 Chevrolet

27%

Mercedes

24%

-17%

BMW Lexus

23%

-15% 20%

-25%

Kia Hyundai

16%

-7%

15%

-21%

Ford

The primary trend in the industry (increasing light truck market and sagging passenger car sales) is clearly depicted on the graph. Of the 13 brands that sell both cars and trucks, Dodge was the only brand where trucks did not out-perform cars.

14%

-13%

Honda

10%

-1%

9%

-15% 6%

Ram Mazda

6%

-14%

Nissan

% chg trucks % chg cars

2%

-10% -1%

Jeep Dodge

12%

2%

Subaru Toyota

34%

-16% -16%

-30% -20% Data source: IHS Markit.

-10%

0%

10%

20%

30%

40%

COUNTY SCOREBOARD

All Four Island Markets Improve in 2016 Oahu market increased 1.8% The table on the right provides a summary of each of Hawaii’s four retail light vehicle markets. The table is divided into four sections.

Market Summary shows total new retail light vehicle registrations during 2015 and 2016 and the percent change. The second and third sections show Light Truck and Detroit Three market share. The fourth section shows market share figures for the top 10 selling light vehicle brands in the state. The top rated county in each category is shaded.

Maui had the largest percentage increase, up 7.9%. Detroit Three market share was highest in Kauai (26.2%) and lowest on the Big Island (17.3%).

26

New Vehicle Markets Summary Hawaii Kauai Market Summary 2015 Annual 7016 2016 Annual 7056 Percent change 0.6% Light Truck Market Share 2015 Annual 63.6% 2016 Annual 67.9% Change (share points) 4.3 Detroit Three Market Share 2015 Annual 17.3% 2016 Annual 19.8% Change (share points) 2.5 Market Share for Top 10 Selling Brands in State - 2016 Annual Total Toyota 32.8% Honda 15.1% Nissan 11.2% Ford 7.5% Chevrolet 3.3% Kia 7.1% Subaru 5.6% Lexus 0.8% BMW 2.0% Hyundai 2.4%

Maui

Oahu

2359 2440 3.4%

6959 7512 7.9%

40760 41477 1.8%

69.7% 75.6% 5.9

62.8% 67.4% 4.6

53.5% 58.4% 4.9

26.2% 30.4% 4.2

23.1% 24.6% 1.5

19.2% 20.5% 1.2

29.2% 11.0% 8.8% 14.6% 7.0% 8.8% 4.3% 0.9% 0.2% 3.3%

26.5% 18.7% 11.1% 9.7% 6.0% 2.9% 3.7% 2.0% 1.8% 1.2%

27.0% 13.6% 9.4% 7.2% 5.2% 3.3% 2.5% 3.7% 3.1% 2.8%

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© 2016 The Reynolds and Reynolds Company. All rights reserved. Confidential and Proprietary Information. 9/16

27

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Hawaii Auto Outlook

Page 4

Hawaii New Retail Car and Light Truck Registrations Fourth Quarter

TOTAL

Registrations 4Q '15 4Q '16 13,770 14,905

% change 8.2

Annual Totals

Market Share (%) 4Q '15 4Q '16

Change

Registrations 2015 2016 57,094 58,485

% change 2.4

Market Share (%) 2015 2016 Change

Cars Light Trucks

5,603 8,167

5,431 9,474

-3.1 16.0

40.7 59.3

36.4 63.6

-4.3 4.3

24,828 32,266

22,566 35,919

-9.1 11.3

43.5 56.5

38.6 61.4

-4.9 4.9

Domestic Brands European Brands Japanese Brands Korean Brands

2,735 1,275 8,771 989

3,412 1,494 9,088 911

24.8 17.2 3.6 -7.9

19.9 9.3 63.7 7.2

22.9 10.0 61.0 6.1

3.0 0.7 -2.7 -1.1

11,276 5,695 36,092 4,031

12,469 5,613 36,584 3,819

10.6 -1.4 1.4 -5.3

19.7 10.0 63.2 7.1

21.3 9.6 62.6 6.5

1.6 -0.4 -0.6 -0.6

Acura Audi BMW Buick Cadillac Chevrolet C/D/J/R Total Chrysler Dodge Jeep Ram FIAT Ford GMC Honda Hyundai Infiniti Jaguar Kia Land Rover Lexus Lincoln Mazda Mercedes MINI Mitsubishi Nissan Other Porsche Subaru Toyota Volkswagen Volvo

243 123 339 18 34 622 836 62 257 308 209 28 1,076 143 1,977 421 95 3 568 56 400 6 375 315 83 25 1,390 31 51 412 3,853 217 30

185 137 465 78 45 907 934 100 240 377 217 23 1,128 186 2,186 344 74 34 559 53 517 12 330 387 112 29 1,429 143 47 509 3,829 183 40

-23.9 11.4 37.2 333.3 32.4 45.8 11.7 61.3 -6.6 22.4 3.8 -17.9 4.8 30.1 10.6 -18.3 -22.1 1033.3 -1.6 -5.4 29.3 100.0 -12.0 22.9 34.9 16.0 2.8 361.3 -7.8 23.5 -0.6 -15.7 33.3

1.8 0.9 2.5 0.1 0.2 4.5 6.1 0.5 1.9 2.2 1.5 0.2 7.8 1.0 14.4 3.1 0.7 0.0 4.1 0.4 2.9 0.0 2.7 2.3 0.6 0.2 10.1 0.2 0.4 3.0 28.0 1.6 0.2

1.2 0.9 3.1 0.5 0.3 6.1 6.3 0.7 1.6 2.5 1.5 0.2 7.6 1.2 14.7 2.3 0.5 0.2 3.8 0.4 3.5 0.1 2.2 2.6 0.8 0.2 9.6 1.0 0.3 3.4 25.7 1.2 0.3

-0.6 0.0 0.6 0.4 0.1 1.6 0.2 0.2 -0.3 0.3 0.0 0.0 -0.2 0.2 0.3 -0.8 -0.2 0.2 -0.3 0.0 0.6 0.1 -0.5 0.3 0.2 0.0 -0.5 0.8 -0.1 0.4 -2.3 -0.4 0.1

714 490 1,633 148 153 2,280 3,561 258 1,152 1,416 735 105 4,392 545 7,851 1,717 297 36 2,314 181 1,760 72 1,585 1,352 499 118 5,957 243 223 1,696 16,109 904 159

739 575 1,583 244 144 3,011 3,432 293 963 1,395 781 94 4,617 658 8,387 1,518 278 80 2,293 196 1,773 45 1,497 1,397 475 107 5,754 411 227 1,816 16,230 753 151

3.5 17.3 -3.1 64.9 -5.9 32.1 -3.6 13.6 -16.4 -1.5 6.3 -10.5 5.1 20.7 6.8 -11.6 -6.4 122.2 -0.9 8.3 0.7 -37.5 -5.6 3.3 -4.8 -9.3 -3.4 69.1 1.8 7.1 0.8 -16.7 -5.0

1.3 0.9 2.9 0.3 0.3 4.0 6.2 0.5 2.0 2.5 1.3 0.2 7.7 1.0 13.8 3.0 0.5 0.1 4.1 0.3 3.1 0.1 2.8 2.4 0.9 0.2 10.4 0.4 0.4 3.0 28.2 1.6 0.3

1.3 0.0 1.0 0.1 2.7 -0.2 0.4 0.1 0.2 -0.1 5.1 1.1 5.9 -0.3 0.5 0.0 1.6 -0.4 2.4 -0.1 1.3 0.0 0.2 0.0 7.9 0.2 1.1 0.1 14.3 0.5 2.6 -0.4 0.5 0.0 0.1 0.0 3.9 -0.2 0.3 0.0 3.0 -0.1 0.1 0.0 2.6 -0.2 2.4 0.0 0.8 -0.1 0.2 0.0 9.8 -0.6 0.7 0.3 0.4 0.0 3.1 0.1 27.8 -0.4 1.3 -0.3 0.3 0.0 Source: IHS Markit.

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