Let`s Ride! - Hawaii Automobile Dealers Association

The Official Publication of the Hawaii Automobile Dealers Association
2015 Convention Edition
Maui
Let’s
Ride!
The 56th HADA Convention s October 8-11, 2015
Fairmont Kea Lani s Wailea, Maui
Other Stories in this Edition...
2015 Sales
predicted to
be up 4.3%
WORK IS GOOD
UNDER THE HOOD
JOBS
Surf’s (Sales’r) Up...
Total Jobs are up, from 3,949 LY to
4,215 TY (total, all 75 dealerships)
THE EFFORTS TO GO
PAPERLESS
HADA efforts to help the counties design and
implement electronic vehicle registration are
underway after SB233 passed.
Proud to be
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7 10
REACH
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with the Star-Advertiser
Source: Nielsen-Scarborough 2015 R1 – 56,855 out of 82,605 (7-day reach)
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JANUARY.23.2015
M GUNN C O M
By MALCOL
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LBASEMED
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began life in Novemhe vehicle that
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Storage is everythin‘n Go system helps
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MICHAEL
KITCHEN
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HONOLULUSTREETPU
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AN EDITION OF
Scan or text
STARAPP to 43766
to download the
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Hawaii Automobile Dealers Association
1100 Alakea Street, Suite 2601
Honolulu, HI 96813
‡)D[
2014-2015 HADA
2012-2013
OFFICERS & DIRECTORS
Let’s Ride!
PRESIDENT
RESIDENT
P
Bill van
den Hurk
Mike
Niethammer
If you are going to go out in the surf it’s a
good idea to have someone with you.
PRESIDENT
RESIDENT-ELECT
P
-ELECT
Brian
Bill
vanKitagawa
den Hurk
In HADA we have 70 associate member companies that serve as great partners.
VICE
ICE PRESIDENT
V
PRESIDENT
Eric Fukunaga
(ULF)XNXQDJD
SECRETARY
ECRETARY
S
Wayne
DeLuz
Joe Nicolai
TREASURER
REASURER
T
NickUekawa
Cutter
John
NADA DIRECTOR
NADA DIRECTOR
Stan
JoeMasamitsu
Hanley
HAWAII DIRECTOR
HAWAII DIRECTOR
Jackie De
DeLuz
Wayne
Luz
MAUI DIRECTOR
MAUI DIRECTOR
Damien
Farias
'DPLHQ)DULDV
OAHU DIRECTOR
OAHU DIRECTOR
Stan
Masamitsu
Stan Masamitsu
OAHU DIRECTOR
OAHU DIRECTOR
Morrie
Stoebner
Morrie Stoebner
OAHU DIRECTOR
OAHU DIRECTOR
Kenny
Ching
Jack
Jackson
Duke Kahanamoku who surfed frequently
with George “Dad” Center caught one of the
legendary bluebird waves back in 1917 that
led to the Duke’s now-famous mile-long-ride.
Bluebirds are created when underwater seismic quakes occur—even by quakes occurring
offshore in Japan waters.
Bluebirds are rare. They only come around every decade or two.
It takes determination, daring, and skill to ride them.
Duke had the determination and daring... and he was fortunate to have
someone to accompany him and to help him develop his skills.
In HADA we are so fortunate to have associate member companies helping us.
We take this time, during period of the HADA convention, to thank all our
dealer members for their participation in the association this year and for
our associate members, whose assistance with our businesses throughout the year and HADA convention sponsorships at this time of year have
helped us be successful.
OAHU DIRECTOR
OAHU DIRECTOR
Dan Keppel
Keppel
Dan
We’re taking on the big waves together, in the spirit of one for all and all
for one.
KAUAI DIRECTOR
KAUAI DIRECTOR
Ryan
Mackey
Dan Mackey
Here’s to a great 2016! Hopefully, the big swell will continue for a bit
longer.
AT LARGE DIRECTOR
AT LARGE DIRECTOR
Keoni Hansen
Hansen
Keoni
AT LARGE DIRECTOR
IMMEDIATE PAST PRESIDENT
Marc
Cutter
Nick Cutter
Let’s ride!
Bill van den Hurk
HADA president 2015, 2016
IMMEDIATE PAST PRESIDENT
HADA
STAFF
Mike Niethammer
([HFXWLYH'LUHFWRU
HADA
DaveSTAFF
Rolf
EXECUTIVE DIRECTOR
'HDOHU6HUYLFHV0DQDJHU
Dave Rolf
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HawaiiDealer is designed & published by Custom Publishing Design Group, Inc.®
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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
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Our Mission Statement
Exceed Dealer’s Expectations!
For More Information Contact: Linda Fisher
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AUTO SALES
REV UP
WORK IS GOOD
UNDER THE HOOD
if you are someone who likes good pay and likes solving problems
...there are good jobs in automotive technology
It’s one of the fastest career paths because dealerships provide the training.
A modern new car dealership is as spotless as a creamery and loaded with the latest in technology and computerized analyzing tools.
Six week summer automotive experience for Juniors and Seniors.
Intern at a Cutter Dealership and learn theory at Honolulu Comunity College.
Receive 4 college credits towards an Associate of Applied Science degree in Automotive Technology.
A running start for 2015
HAWAI‘I SALES
JOBS LONGTERM
TEACHING THE
D U C K T O F LY
$3
BILLION
Figure
r 1
Illustrative Daily Load in 2020
4,000
3,500
3,000
Sunday Closing Law Summary
The HADA board of directors, citing an interest in seeing employment in the Hawaii retail auto industry appeal to a
broader base of potential employees (including those who want to be assured of Sunday’s off), and noting that many
neighbor island auto dealerships already post Closed on Sunday signs, is examining the ramifications of a “Closed on
Sunday” statute for the Hawaii retail auto industry.
Here is a summary, provided by NADA, of the states with closed on Sunday laws:
Alabama
No
Nebraska
No
Arizona
No
Nevada
Yes
Arkansas
No
N. Hampshire
No
Colorado
Yes
New Jersey
Yes
Connecticut
No
New Mexico
No
Florida
No
New York
k
No
Georgia
No
N. Carolina
No
Hawaii
No (currently)
N. Dakota
Yes
Illinois
Yes
Ohio
No
Indiana
Yes
Oklahoma
Yes
Iowa
Yes
Oregon
No
Kansas
No
Pennsylvania
Yes
Kentucky
No
Rhode Island
Yes
Louisiana
Yes
S. Carolina
No
Maine
Yes
S. Dakota
No
Maryland
Yes
Tennessee
No
Massachusetts
No
Texas
Yes
Michigan
Yes
Utah
No
Minnesota
Yes
Vermont
No
Mississippi
No
Washington
No
Missouri
Yes
W. Virginia
No
Montana
No
Wisconsin
Yes
MW
2,500
2,000
1,500
1,000
Total Load
T
500
Load Net of W
Wind and Solar
0
1
401Ks
2
3
4
5
6
7
8
9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
Hours
24
Figure
r 15
Duck Curve With All Ten
T Strategies
4,000
3,500
3,000
MW
2,500
2,000
1,500
1,000
10 Strategies T
Total Load
Pre Strategy T
Total Load
10 Strategies Net Load
Pre Strategy Net Load
Total number of states that responded to NADA surveys in 1990 and 1994 = 45.
500
0
NADART
1
2
3
4
5
6
7
8
9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
Hours
Yes = 18 — No = 27
24
ENERGY SUNDAYS
Points presented at the August 13, 2015 HADA exec committee meeting
A quick look at the points presented at
the most recent HADA exec committee
meeting:
the state market predicted to increase
4.3% from 2014 to 2015.
3. JOBS
1. HAWAII
Congresswoman Tulsi Gabbard was
selected to serve as the keynote
speaker at the NextGen segment of
the NADA Washington (D.C.) Conference, September 28-30. Hawaii plays
an increasing role in national public
policy relating to the auto industry.
2. SALES
Light vehicle sales (registrations)
continue on an upward trend – with
8
Some 4,215 employees are working in
HADA-member dealerships – all of the
state’s new car dealerships. The number has increased by 266 employees
over last year.
4. LONGTERM
Going forward dealers know the rise
and fall of the new vehicle sales has
followed the so-called Golden Gate
Bridge pattern in Hawaii for decades
and decades. As far back as records
have been kept. HADA added (red and
blue bars) to show what uptake was
NEEDED in renewable fuel vehicles to
reach the goals of the Hawaii Clean
Energy Initiative – a tall order of
400,000 vehicles by 2030. This is a
power of magnitude (10x) what is currently trending, in best-case scenarios.
An educational campaign about
renewable fuel vehicles is a HADA-offered proposal to boost sales of these
vehicles.
5. NADART
NADA has recently changed its dealership retirement trust. The highly-vetted
It’s about the
and
s s
1 0
HADA executive committee: (counterclockwise around the table) Brian Kitagawa,
pres.-elect, Bill van den Hurk, pres., Nick Cutter, treas., Stan Masamitsu, NADA dir.,
Eric Fukunaga, vice pres., and Mike Niethammer, immed. past pres.
THE FUTURE
partnership between a utility company
and vehicle owners would help reduce
electric power costs for everyone. Who
knew?
8. SUNDAYS
new trust management agency EMPOWER charges significantly less (roughly
half) of the previous fee and has a track
record of significantly higher dollar returns for dealers who participate.
Ph: NADA’s Virginia Graham 657-4640880
6. PAPERLESS
HADA president Bill van den Hurk has
made electronic vehicle registration the
association’s highest priority this year.
EVR will save many a trip to the DMV,
when fully implemented. It will take a
continuous association-wide effort to
get it done, though.
7. ENERGY
The famous “duck” graph – produced
by all electric utilities shows that oil
burned by the power company (top line)
will be reduced – streamlining the graph
like a duck flying – when electric vehicles
and hydrogen fuel vehicles provide energy storage and grid feedback capabilities
allowing the utility to take advantage of
access to so-called “waste” energy –
the energy produced by renewable generation which cannot be used at certain
times by the power company, but which
could be stored in electric car batteries
for later use with feed-in tariffs credited
back to the vehicle owner. This unique
Many neighbor island new-car dealerships are closed on Sundays. Recently,
on Oahu, following the lead of Honolulu
Ford, which posts a freeway-visible sign
“SUNDAY, WE REST” other new car dealerships have begun closing on Sundays,
including the Aloha Kia, and Infinity of
Honolulu.
9. THE 1s AND 0s
Most people are aware that 1s and 0s
are the foundation for everything that
happens inside a computer. Binary code
uses two digits – 0 and 1 – and nowadays, pretty much EVERYTHING, including dealership DMS systems, service bay
vehicle diagnostic tools, much dealership
marketing, and soon, dealership-based
electronic vehicle registration... takes
advantage of the light-speed of the 1s
and 0s. Autonomous cars will take this
phenomenon to another level. Some automakers, this year, are making moves in
this direction with automatic braking.
9
IT’S YOUR LOCAL
AUCTION
LANE.
BUT IT’S THE WORLD’S LARGEST
Manheim Hawaii
SERVING HAWAII’S AUTOMOTIVE INDUSTRY FOR OVER 25 YEARS
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DID YOU KNOW? 7 out of 10 Dealer cars sell through the lanes at Manheim Hawaii.
'(# $')'3
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©2014 Manheim, Inc. All rights reserved. Manheim BUY. SELL. WIN and the M logo are trademarks of Manheim, Inc.
10
The View Of The Upcoming
2016 LEGISLATIVE SESSION
An ACTION ALERT system helped dealers quickly log in
Last year, HADA dealers logged in with emails quickly and in large
numbers, to stop the extremely flawed sick leave legislation that
had moved to its final committee.
Dealers testified that, over the decades, they have developed extensive company benefit plans for employees, including paid time
off for vacations and sick leave, and the sick leave bill’s ill-advised
“one-size-fits” was clearly flawed legislation.
Legislators responded to dealer input, and killed the bill.
However, because bills are carried over, in two-year cycles, the
flawed bill remains precariously close to final passage, even though
stopped last year, and could be brought up again in 2016, with
little time to react.
It will take vigilance and the ability to quickly log in if the bill is
brought up for reconsideration. Much thanks goes to the Chamber
of Commerce of Hawaii for providing HADA use of their ACTION
ALERT system which automatically fills in legislator email addresses
and forwards emails to the appropriate members in the legislature.
Again, the 1s and 0s, an efficient digital solution,
the ACTION ALERT system, helped dealers log in.
On the pro-active legislation front, dealers initiated
and shepherded to passage SB233, a bill to modernize county DMVs, helping to eliminate dealer
personnel standing in line by providing electronic
vehicle registration, on-site from dealerships. This
legislation will help DMV customers, by reducing
lines, DMVs themselves, by freeing up hours to serve
other customers, and dealerships by reducing time
to register vehicles.
DEALER DAY AT THE CAPITOL also saw dealers support legislation to set up a task force to recommend
ways to develop infrastructure for hydrogen fueling
stations (SB1296). The bill passed. Now, HADA is
participating in the 5-member task force and working group.
11
Providing exceptional service for you and your clients.
MIKE WARING
WAYNE ARAKAKI
EDSON TOMA
Vice President & Manager
Ph: 544-3731 Fax: 532-4200
michael.waring@centralpacificbank.com
Vice President, Dealer Center
Ph: 544-5282 Fax: 532-4200
wayne.arakaki@centralpacificbank.com
Assistant Vice President, Dealer Center
Ph: 544-5284 Fax: 532-4200
edson.toma@centralpacificbank.com
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.
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Need Answers?
www.HawaiiAutoDealer.com
YOUR HADA INFO
RESOURCE
Cavanah Associates, Inc.
II
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An Independent Insurance Agency Specializing in:
O
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13
The future of electric vehicles
Hawaiian Electric wants to help our customers reduce their total monthly household
energy expense by encouraging customers to switch to plug-in electric vehicles and
take advantage of our proposed new discount charging rates.*
Why are the Hawaiian Electric Companies proposing these new time-of-use EV
charging rates*?
t 5PFODPVSBHFNPSF&7VTFCZNBLJOHUIFEJTDPVOUSBUFTTJNQMFSBOEFBTJFSUP
sign up for. Our proposed new rates* offer more hours at the lower rate.
t 5PNBLFHPPEVTFPGUIFFYDFTTFMFDUSJDJUZJOUIFNJEEMFPGUIFEBZGSPNSPPGUPQ
solar on thousands of homes. Using this electricity more effectively will benefit all
our customers as we move to our clean energy future.
Note: We’ve proposed new commercial time of use EV charging rates* as well.
Example of a Typical Household Energy Budget
Before EV
After EV
Household Budget
Household Budget
Gasoline
Electricity
Total Expenses
$88
$140
$228
Gasoline
Electricity
$0
$154
Total Expenses
Total Savings
$154
$74
For illustration purposes only.
Estimates based on a typical
Oahu residential customer
switching from an internal
combustion engine vehicle to
an equivalent model plug-in
electric vehicle, signing up for
proposed new time-of-use
EV charging rates and NOT
charging the vehicle during
peak demand hours from 5
to 9 pm.
* New rates subject to Hawaii Public Utilities Commission approval.
www.hawaiianelectric.com/GoEV
BIG TABLE…
BIG ISSUES
The Motor Vehicle Industry Licensing Board sits at a big table
and acts on some big issues.
The recent meeting of the Motor Vehicle
Industry Licensing Board, (counterclockwise
around the table) Carl Johnsen, public
member; Dennis Short, industry member;
Wayne De Luz, industry member and 20152016 MVILB chair; Christine Rutkowski,
administrative officer; Rod Tam, Hawaii
state attorney general’s representative; Tick
Lam, MVILB secretary; Byron Hansen, public
member; and Russ Wong, industry member
and vice chair. Not shown, Wendee Wilson,
public member. One public member position
is unfilled.
This association much appreciates the board reviewing the
recent legislation on electronic vehicle registration and assisting
with legislation in year’s past that clarified the “right” of possession of the vehicle title.
The board approves the following:
LICENSE CATEGORIES
UÊ
Motor Vehicle Dealer
UÊ
Motor Vehicle Salesperson
UÊ
Motor Vehicle Auction
UÊ
Motor Vehicle Consumer Consultant
UÊ
Motor Vehicle Manufacturer
UÊ
Motor Vehicle Distributor
Renewal is Biennial June 30 every even numbered year.
The administrator has stated that late renewals will
no longer be accepted.
Failure to timely renew by the renewal date will
result in the forfeiture of the license and will require
licensees to reapply as a new applicant, meet all
current requirements, and submit all documents and
fees again.
Motor vehicle broker (CB) licenses ONLY, will not
be able to reapply for another CB license. Due to
changes in the law, the board is no longer authorized to approve and issue new motor vehicle
broker licenses.
15
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Aloha Kia’s “Closed-Sundays” sign greets customers who visit the company’s Nimitz Hwy/Lagoon Drive location
near the airport. Many neighbor island dealerships have been closing on Sundays for years, and this past
year, Honolulu Ford began closing on Sundays, and erected a large freeway-visible sign, “SUNDAY, WE REST.”
Recently, Infiniti of Honolulu has been closing on Sundays also.
EVERY DAY IS GAME DAY.
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17
HAWAII
CONVENTION CENTER
1801 Kalakaua Ave
Honolulu, HI 96815
MARCH 18-20, 2016
September 30, 2015 – Email completed space
order form
October 23, 2015
January 22, 2016
– 50% deposit and
executed contract due
– Payment in full due
Square footage charge includes:
> Themed carpet in public aisles
> Themed manufacturer identity sign over your
Exhibitor Info Online
HiAutoShow.com/Exhibitor
> Up-to-date floor plan
> Specific move-in and move-out
information
> Exhibitor Services Manual
Show Hours
public aisle to guide visitors into your display
> Daily vacuum service for all exhibit carpet
> Daily emptying of all exhibit area waste containers
Friday
Saturday
Sunday
Exhibitor Move-In
Hotels Near the
Convention Center
Electric & Carpet - Tuesday, March 15
Freight/Set Up - Wednesday, March 16
Vehicles - Thursday, March 17
Vehicle move-in must be completed by 5 pm
Exhibitor Move-Out
Move-out will begin at the close of the show on
Sunday, March 20 from 7:30 until 9:30 pm and
Monday, March 21 from 8 am until 5 pm.
12 noon - 10 pm
10 am - 10 pm
10 am - 7 pm
Title Sponsor
DoubleTree Alana Hotel Waikiki
1956 Ala Moana Boulevard
Honolulu, HI 96815
Tel
Guest Fax
Sponsored By
808.941.7725
808.949.0996
Hilton Hawaiian Village
Produced By
2005 Kalia Road
Honolulu, HI 96815
Tel
Guest Fax
808.949.4321
808.951.5458
HIAutoShow.com
Sales & Marketing
LISA GELB
Tel 248.594.2537
Cell 313.363.7899
LGelb@enthusiastnetwork.com
HI - TECHNOLOGY at the
FIRST HAWAIIAN International Auto Show
The Power of Hawaii
The First Hawaiian International Auto
Show returns March 18-20, 2016 to the
world-class Hawaii Convention Center.
Our HI-Tech theme makes the auto show
the ideal place to showcase all of your
latest models, alternative fuel vehicles
and newest in-car technology!
The First Hawaiian
International Auto
Show Influences
Customers’ Purchase
Decisions
> More than one in five new car buyers
attends an auto show in the months prior
to their new auto purchase.
Free Ocean Shipping!
> Nearly two-thirds of auto show at-
In order to assist with bringing your specialty vehicles, concept cars, pre-production
models, tricked out SEMA vehicles and new alternative fuel technologies to display,
show management is offering FREE OCEAN SHIPPING for these show features. Please
alert show management at least 60 days in advance of opening to take advantage of
this offer and be included in the extensive marketing and public relations campaign.
tendees have made up their minds about
which vehicle to purchase by the time they
leave the auto show.
>
New car buyers ranked auto shows
one of the highest influences on their
purchase decision – bested only by prior
experience or personal recommendation.
Host A Test Drive!
Our auto show attendees come with buying on their minds - 51% of visitors say an
auto show influences their new vehicle purchase. That number goes up to 64% when
the visitor has taken a test drive. The drive
staging areas are visible centers of activity at the
show, with many display and branding opportunities. Sponsoring a test drive is a great way
to get the attention of qualified customers.
A Motor Trend Auto
Show Promotes
Your Brand
> Your display highlights will be
included in the show’s extensive marketing, public relations and social media
campaigns.
> Tell us about any special pre-production or concept vehicles to be featured in
your display, so we can include them in our
show promotions.
> A FREE 12-month subscription to MOTOR TREND Magazine comes with
every paid admission!
New vehicle buyers who attended an auto show reported:
Time Until
New Vehicle Purchase
Most Influential Aspects of an
Auto Show Display
AUTO SHOW
RETURN ON
INVESTMENT
*Data Copyright 2014 Foresight Research. All Rights Reserved. 2015-Model Motor Trend Auto Expo Surveys.
Test Drives Influence
Purchase Decisions
t
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$SFBUFBCFUUFSDVTUPNFSFYQFSJFODFBOEBDIJFWFEPDVNFOUFE$4*
%FWFMPQBGVMMZEPDVNFOUFEDVMUVSFPGDPNQMJBODFXJUIDPOUJOVPVTFUIJDTUSBJOJOH
0QFSBUFNPSFQSPmUBCMZXJUIPVUEFDFQUJWFNFUIPET
College off Automotive Management
The World’s Premier Automotive Management & Lending School
“We needed a solution to standardize our Sales, Desking and
F&I process at each location and create a team atmosphere
where everyone has the same objective of 100% happy
customers, in order to continually increase profits per sale,
closing ratios and repeat business. We also wanted a training
platform where we could customize and use to train, test
and support ALL employees on the values, policies and
best practices of our organization, while taking advantage
of The College’s world class training, coaching, and career
development programs. The College is helping us build our
own customized Aloha Auto Group training center online and
accomplishing all of our training objectives. The ACT program
and its emphasis on ethics are also helping us attract, develop
and retain top talent with good character at our organization.”
Russ Wong, Aloha Auto Group COO
“I have to admit we were a little skeptical in the beginning.
The College made some pretty bold claims. Their promises to
create happier employees that have less stress at work while
achieving higher profits and 100% happy customers 100% of
the time sounded too good to be true. But the results speak for
themselves. What mattered most to me was what my employees
thought of the program, and then the program’s effect on our
bottom line. After seeing that every employee, without exception, agreed with the
content and was happy to be participating in the training and after watching our
profits in the first store increase by several hundred percent more than we invested
in the training in just the first 30 days, I was sold. After 18 months, we continue to
utilize the services of The College Training Program and are achieving our goals of
happier customers and increased profits. I highly recommend all dealers in Hawaii
use the training services provided by The College of Automotive Management,”
stated Bill van den Hurk, Owner of Aloha Auto Group
Note: The College of Automotive Management is so confident that all H.A.D.A. members and their employees (Sales & Management) will be
completely satisfied with their Automotive Career Training experience that the College will gladly provide a 100% Money Back Guarantee.
20
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21
The Official Publication of the Hawaii Automobile Dealers Association
The Official Publication of the Hawaii Automobile Dealers Association
The Official Publication of the Hawaii Automobile Dealers Association
2015 Summer Edition
2015 First Quarter
2014 Fourth Quarter
Dealer Day at the Capitol
HADA
Logs in
on TPP
The Official Publication of the Hawaii Automobile Dealers Association
2014 Convention Edition
Niki van den Hurk
Issues worth flying to
gton D
C for…
Washington
D.C.
Hawaii’s 2015
Dealer of the Year
see cover story page 8
HADA president Bill van den Hurk
greets House Speaker Joseph Souki
during Dealer Day at the Capitol
February 12, 2015
See pictorial feature
on pages 8 – 15
Stan Masamitsu (left) and Keoni Hansen
brought HADA’s requests for help to the Hill
Niki with a picture of her great
grandfather P.E. Martin, who developed
the automotive assembly line concept for
Henry Ford in the early 1900s.
On the Trade Pact—Reserve Currency is the Key
(Page 8)
Other Stories in this Edition...
Hawaii Auto Outlook
Let’s
Ride!
2015 First
Hawaiian
International
Auto Show
Register at
www.hawaiiautodealer.com
Hawaii’s show scores high
on Motor Trend’s auto show
benchmarks.
18
56th HADA Convention
Oct. 8-11, 2015 Fairmont
Kea Lani, Maui
11
54,095
48,705
Other Stories in this Edition...
™
56,400
Hawaii Auto Outlook
™
Other Stories in this Edition...
Hawaii Auto Outlook
™
AUTO SALES
REV UP
32,649
Other Stories in this Edition...
113TH CONGRESS
2D SESSION
Hawaii Auto Outlook
113TH CONGRESS
1ST SESSION
H. R. 5403
To nullify certain guidance of the Bureau of Consumer Financial Protection
and to provide requirements for guidance issued by the Bureau with
respect to indirect auto lending.
42,463
35,576
IN THE HOUSE OF REPRESENTATIVES
Sales continue
upward for 2015
3.7% improvement
predicted for the year
26
A running start for 2015
New vehicle registrations
were up 18% in the last
quarter of 2014.
26
First Hawaiian International Auto Show,
March 13-15
…features 350 new cars and
trucks including the first
hydrogen fuel cell electric
vehicle to be offered in Hawaii
23
IN THE SENATE OF THE UNITED STATES
SEPTEMBER 8, 2014
Mr. STUTZMAN (for himself, Mr. PERLMUTTER, Mr. BACHUS, Mr. DAVID
SCOTT of Georgia, Mr. BARR, Mr. SHERMAN, Mr. CAMPBELL, Mr.
PETERS of Michigan, Mr. LUETKEMEYER, Mr. MURPHY of Florida, Mr.
POSEY, Mr. KILDEE, Mr. WILLIAMS, and Mr. COSTA) introduced the following bill; which was referred to the Committee on Financial Services
Which comes first, the
chicken or the egg?
Answer: Both. Simultaneously.
HADA supports bill for government fleet
hydrogen fueling station, which can jump
start the transition to the new clean fuel.
18
Robert Zarco was the keynote speaker
at the 2014 HADA convention which
saw a record 253 attendees.
18
Pure Joy. Bill Hart, right, of Cavanah
& Associates shot a hole-in-one at the
convention’s golf tournament He is shown
here with Bank of Hawaii’s Craig Ito.
18
More Joy. Hawaii’s State Teacher
of the Year receives her new car
(use for a year)
26
CFPB Guidance raising
cost of loans
8
™
C ONGRESSIONAL
P ROPOSAL :
S. 921
To amend chapter 301 of title 49, United States Code, to prohibit the
rental of motor vehicles that contain a defect related to motor vehicle
safety, and for other purposes.
Elimination of
Advertising
Deduction
MAY 9, 2013
Mr. SCHUMER (for himself, Ms. MURKOWSKI, Mrs. BOXER, Mrs. MCCASKILL,
Mr. BLUMENTHAL, Mrs. FEINSTEIN, Mrs. GILLIBRAND, and Mr. CASEY)
introduced the following bill; which was read twice and referred to the
Committee on Commerce, Science, and Transportation
Bill that would ground loaner cars
for minor open recall issues
9
Measure that would eliminate
advertising as a deductible
business expense
20
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.
Also see the HADA website at www.hawaiiautodealer.com
Call us if you’re interested in
your own magazine, or if you’d like
to buy an advertisement in this magazine!
Custom Publishing Design Group has
assisted many companies in producing
beautiful, full-color magazines...
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22
1-800-246-1637
www.MyCompanyMagazine.com
Stan Osserman, standing with
yellow “coordinator” name tag, is
shown with members of the task
force formed by the legislature
through SB1296 to examine ways
for Hawaii to develop hydrogen
fueling station infrastructure to
support the incoming hydrogen
fuel cell electric vehicles.
HADA has been named to the task
force. HADA’s Stan Masamitsu,
shown at the right, was present at
the meeting held at the Free Trade
Zone building near Pier 2 adjoining
downtown Honolulu. Dave Rolf,
HADA executive director, not
shown, was also present. The
meeting included representatives
from the U.S. Dept. of Energy, the
State Dept. of Transportation, the
State Department of Business,
Economic Development and
Tourism, the State Energy office,
the State Attorney General’s office,
and the State Hydrogen Projects
director. The hydrogen fuel station
task force bill was one of two bills
emphasized during HADA’s Dealer
Day at the Capitol this year.
23
24
Call our local team
(800) 553-7146
Online at jmagroup.com
F&I
A division of
FIXED OPS
TRAINING
FRONT-END
SALES
IN-STORE
SUPPORT
OPERATIONS
INCENTIVES
JM Family is a diversified automotive company ranked on the
FORTUNE® 100 Best Companies to Work For® list, its seventeenth
consecutive year. © 2015 Jim Moran and Associates, Inc.
25
CFPB’s Attack on Auto Financing is
Flawed and has Drawn the Attention
of Hawaii’s members of Congress
The National Automobile Dealers Association members and HADA
members applaud the continued bipartisan efforts in Congress to
rescind a flawed guidance from the Consumer Financial Protection
Bureau that would harm consumers by limiting their ability to obtain
discounted auto financing.
Hawaii members of the U.S. House of Representatives, Reps. Tulsi
Gabbard and Mark Takai, have joined a group of bi-partisan cosponsors of H.R. 1737, the bill Reps. Frank Guinta (R-N.H.) and Ed
Perlmutter (D-Colo.) introduced as the Reforming CFPB Indirect Auto
Financing Guidance Act of 2015. The legislation would repeal a CFPB
bulletin from 2013 that was designed to pressure lending institutions
into eliminating the availability of auto financing discounts.
These discounts save consumers millions of dollars every year.
"Consumers have the right to obtain auto financing at discounted
rates, and those rights should be protected, not threatened," said
NADA President Peter Welch. "There is bipartisan support in Congress to require the CFPB to consider how harmful its guidance could
be to consumers, and we applaud Reps. Guinta and Perlmutter for
their leadership on this issue."
The CFPB's lack of transparency and accountability has prompted
130 members of Congress (76 Republicans and 57 Democrats) to
request additional information from the agency on how it arrived at
the conclusions it used to justify its original March 2013 guidance,
but none of these requests have been completely fulfilled, and many
have gone unanswered altogether.
The Reforming CFPB Indirect Auto Financing Guidance Act was initially introduced at the end of the 113th Congress and garnered the
support of many House Republicans and Democrats.
In addition to rescinding the CFPB's flawed guidance, H.R. 1737
would require the Bureau to follow a transparent process - including
providing for a public comment period, consulting with the agencies that share jurisdiction over the indirect auto financing market,
and disclosing its testing methodologies - prior to issuing any future
guidance related to indirect auto credit.
The CFPB has acknowledged that it did not analyze or estimate the
economic impact its guidance would have on consumers. Additionally, while the Bureau's own report showed that its model for mea-
26
NADA’s Andy Koblenz speaking at the 100th
Anniversary of the Automotive Trade Association
Executives meeting held this summer in Detroit. The
background screen showed members of Congress
questioning an official from the CFPB during
congressional hearings.
suring fair credit risk is flawed, it has not responded
to a major peer-review study by Charles River
Associates that found several significant flaws in the
Bureau's methodology, which have led to inaccurate,
incomplete and unreliable conclusions about pricing
disparities in the auto finance market.
Bill van den Hurk’s
Aloha Kia dealerships are
on all islands. The dealerships
have donated a KIA Electric Soul
(use for a year) for the 2016 Hawaii
State Teacher of the Year, to be named
in mid-October during Department of
Education ceremonies.
27
VEHICLE RECALL LEGISLATION
IS OVERBROAD
ISSUE
KEY POINTS
Congress is considering measures that would ground all
rental and used vehicles under any open recall. These bills
are overly broad because the majority of vehicle recalls do
not require the drastic step of grounding the vehicle. Congress should focus on strategies to boost recall completion
rates instead of grounding vehicles for minor recalls.
UÊ
Recall bills under consideration are overbroad since
they indiscriminately ground all rental and used vehicles
under recall at a dealership, no matter how minor the
impact on safety. The current vehicle recall process was
not designed to differentiate among potential levels of
risk.
BACKGROUND
UÊ
Franchised auto dealers play a vital role in ensuring that recalled vehicles are fixed. According to the National Highway
Traffic Safety Administration (NHTSA), the average recall
vehicle completion rate is 75 percent. Often recalled vehicles
are not repaired because the customer ignores or does not
receive the recall notice, or parts are unavailable.
Should safety data on recall related vehicles demonstrate legislation is warranted, Congress should take
a more targeted approach focusing on serious safety
related recalls.
UÊ
Policies should be tailored to boost consumer recall
response and completion rates. Dealers support a 100%
vehicle recall completion rate. NHTSA could improve
the recall process by designing the database to handle
multiple VIN requests as a single inquiry.
Proposals that would ground all vehicles under open recall at
a dealership fail to differentiate between recalls that involve
a defect that should be immediately addressed and those
with a negligible impact on safety. These recalls have included an incorrect phone number in the owner’s manual, or
an airbag warning sticker that might peel off the sun visor.
A recent survey of 2,100 vehicle recalls revealed that 80 percent of recalls do not come with any recommendation from
the manufacturer or NHTSA to stop operating the vehicle.
Additionally, there has not been any analysis or data on
recall-related vehicle crashes and injuries. As there will be
major costs related to these recall proposals as drafted,
it seems prudent to first ascertain the safety benefit and
cost to consumers and businesses if millions of vehicles are
grounded -- potentially for months. A better approach to
grounding all vehicles under open recall is to improve the
recall process to maximize safety recall completion rates.
NHTSA’s new online recall database allows consumers and
dealers to check the open recall status of a vehicle by VIN.
This new online resource may impose on dealers a heightened standard of care, given this new ability to determine
whether a non-brand vehicle is subject to an un-remedied
safety recall. NADA has urged all dealers to consult this website prior to selling any used vehicle.
28
STATUS
The Senate passed its version of the transportation bill (H.R.
22) on July 30. H.R. 22 included a provision offered by Sen.
Claire McCaskill (D-Mo.) and accepted by Senate Commerce Committee Chairman John Thune (R-S.D.) that would
prohibit “rental car companies” from renting vehicles (and
dealer loaners) under open recall. Sen. Blumenthal (D-Conn.)
filed a related amendment that would ground all used vehicles under recall sold at a dealership (but not private sales).
The Senate Commerce Committee rejected the Blumenthal
amendment by a vote of 13-11. Sen. Blumenthal’s used
car amendment was not considered on the Senate floor.
The House Energy and Commerce Committee is expected
to start writing a transportation bill shortly. NADA strongly
urges Congress to focus on recall provisions that measurably
benefit safety, and oppose legislation that raises costs for
consumers and small businesses without a commensurate
safety benefit.
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
The power of global connections
29
Following the HADA exec committee meeting, Brian Kitagawa
(left) and his wife Nan, (to right of Brian) joined State Culture and
the Arts director Jonathan Johnson, shown with HADA briefing
book, and Mike Niethammer and Sheri Rolf, who was assisting
with refreshments, for a look at the state’s sculpture garden – part
of the State Art Museum.
HADA is unique in America in that the association frequently uses
Hawaii’s public art to help communicate public policy. (For example:
The HADA-City and County of Honolulu Sky Gate Press conference
featuring electric vehicles, held in 2011, during the Lahaina Noon
phenomenon, one of two moments in the year when the directly
overhead sun interacts with the sculpture).
115 YEARS OF SERVICE
................................................................................................
YOUNG BROTHERS is proud
to be a part of Hawai‘i‘s communities
The group is shown in front of the sculpture
“Picasso Triggerfish” (background) which has
photovoltaic cells embedded to create electric
power. The sculpture roughly approximates the
profile on the “Teaching the Duck to Fly” graph
used in the HADA POINTS briefing. Note: Hawaii
was the first state in the nation to dedicate 1%
of state public works capital expenditures for
the creation of public art.
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In a word, we’re driven.
For decades, Matson has supported Hawaii’s auto
dealers as both a friend and partner. We have more
sailings, more often, to and from Hawaii than any
other carrier. The Hawaii Auto Dealers Association
can rely on Matson to continue its proud tradition of
providing regular, reliable delivery of automobiles and
outstanding service, including up-to-date technology
for vehicle status reporting and tracking. And after 130
years of service to the islands, members can continue
to count on Matson to deliver.
For more information, call our Customer Support Center at (800) 4-MATSON or visit matson.com.