Publication

AUTO SHOW RECAP 6
BLACK TIE TAILGATE 8
ANNUAL GOLF OUTING 16
Automobile
mobile Dealers Association of Greater Philadelphia
2014 AUTO SHOW
“The show floor looked
fantastic, the buzz was
contagious and our
manufacturers
were thrilled. ”
Donald Franks, Chairman
2014 Auto Show
$?
WE NEED YOUR HELP!
ECONOMIC
CO O C IMPACT
CT SU
SURVEYY PGG 16
APRIL 2014
Auto Dealers Association of Greater Philadelphia
A Message from the
ADAGP President
3311 Swede Road, Suite A
East Norriton, PA 19401
T: 610.279.5229
F: 610.279.5240
ADAGP.com
OFFICERS
President
Michael Chapman
Chapman Auto Group
Vice President
Donald J. Franks
J.L. Freed Honda
Secretary/Treasurer
David P. Kelleher
David Dodge Chrysler Jeep
Immediate Past President
Dominic M. Conicelli
Conicelli Autoplex
DIRECTORS
Kevin Dunphy
Dunphy Ford
Drew Fitchett
North Penn Mazda
North Penn Volkswagen
Raymond Glanzmann
Glanzmann Subaru
Fellow
w Dealers and Associate Members,
First and foremost, congratulations to Donald Franks and the entire ADAGP Board off Directors and staff
ff on providingg the people
off Philadelphiaa with another world-class Auto Show. We all know
w this was one off our more challengingg shows courtesyy off the
weather but, in the end, we finished strongg and for that, I tip myy hat to everyone involved.
Inside this issue off The Drivingg Force Magazine, you will fifind a number off important articles related to the 2014 Philadelphia
Auto Show, includingg insightful exit surveyy results from Analytic Business Services and a recap off this year’s Blackk Tie Tailgate. In
addition, I also encourage you to read the latest news and event updates from the Auto Dealers CARingg for Kids Foundation as it
continues to grow
w and do great workk in our communities. Examples include its $446,000 donation to The
Th Children’s Hospital of
Philadelphiaa viaa proceeds from the 2014 Blackk Tie Tailgate and production off the 21st Annual Greater Philadelphiaa Automotive
Technologyy Competition, which benefifits a number off areaa students preparingg to enter the automotive industry.
Last, but certainlyy not least, iff you haven’t signed up for our 99th Annual Golff Outing, please do so. This year’s event is set for
Mayy 20th at RiverCrest Golff Club in Phoenixville. It’s always an enjoyable dayy amongst peers, industryy partners and friends. All
proceeds benefit
fi our Foundation and allow
w it to do the workk mentioned above, as well as sustain our Drivingg Awayy the Cold eff
fforts,
which, after this year’s winter, have never been needed more.
Until then, I wish all off you a safe and successful spring. Mayy your showrooms and businesses be full and continue to flourish. As
always, should you have anyy questions or comments regardingg the information discussed in this issue off The Drivingg Force, please
let myselff or Kevin Mazzucolaa know.
Take care,
Richard A. Harrisson
C & C Ford
Chapman Chrysler Jeep Dodge
Jay Haenn
Fiat of Montgomeryville
Lansdale Chrysler Jeep Dodge
Mi h l Chapman
Michael
Ch
Bradley W. Hendrixson
Garnet Ford
Bryan O’Reilly
O’Reilly Buick GMC
Maria Pacifico
fi
Pacifico Hyundai
Pacifico Mazda
Irv Stein
Keystone Motors
HONORARY DIRECTORS
Jay Dunphy
Dunphy Ford
Markk A. Frankel
Joseph P. Moore, Jr.
Kerry T. Pacifico
fi
Pacifico Ford
David B. Penske
Penske Buick GMC Truck
James A. Peruto
Keenan Motor Group
Daniel H. Polett
Lexus of Chester Springs
Wilkie Lexus
Ad Index
.
Pg. 08 Ardex Laboratories, Inc.
Pg. 12 Automotive Training Center
Pg. 05 AutoTrader.com
Pg. 15 Boyerr & Ritter
Pg. 23 Daniel Ferrari & Co.
Pg. 16 David Lewis & Associates
ociates Inc.
Pg. 22 Dilworth Paxson, LLP
Pg. 20 Eisnerr Amper, LLP
Pg. 24 JM&A
A Group
Pg. 23 Key Bank
Pg. 21 Lincoln Technical Institute
Pg. 17 Maxim Automotivee
Pg. 15 McNees Wallace & Nurick, LLC
Pg. 18 The Mironov Group
up
Pg. 19 PHL17
Pg. 08 NBC10
Pg. 19 US Hole In One
Pg. 22 Voynow, Bayard & Co.
Pg. 15 WPVI - 6abc
Pg. 02 Zurich American Insurance Co.
.
Features
06 Spot in the Record Books 16
18
10 #BLACKTIETAILGATE
2014 Auto Show Recap
The BTTG Receives Top Ratings
Tech Comp
$750,000 in Prizes
ADAGP News & Events
Important Dates and FYIs
Peter H. Watson
EXECUTIVE DIRECTOR
Kevin Mazzucola
This year’s BTTG
had its share of local
celebrities like Miss
Philly 2013 and
the Mummers!
Driving
Dr
Dri
D
rriiving F
Force
orrc
orc
o
rce 3
From The Executive Director.
Members and Friends,
The books on the 2014 Philadelphiaa Auto Show
Th
w are slowlyy closingg and I’d be remiss iff I didn’t take a minute to thankk your 2014 Auto
Show
w Chairman, Mr. Donald Franks. While not a surprise to anyy off us, Don went above and beyond as both your chairman off the
Show
w this year as well as co-chair off the Blackk Tie Tailgate Committee. His enthusiasm was infectious and his will to do the best job
possible did not go unnoticed. Don, on behalff off the entire Auto Show
w staff
ff, thankk you for a job well done and we lookk forward to your
continued guidance in 2015. Mayy Mother Nature be one off our closest allies next year.
Despite the weather challenges we faced at this year’s Auto Show, we ultimatelyy finished strongg with new
w records set and expectations
w recap article featured on page 6.
met. You can read all about them in the Auto Show
In addition, I’d like to use the rest off this letter to ask, and hopefullyy not beg, for support off our 2014 Economic Impact Survey. We
will be administeringg this surveyy in late April viaa regular mail and email, although you are welcomed to fill out the forms online now,
to help gather important dataa that is vital to our lobbyingg eff
fforts. Everyy year, whether it’s in a meetingg with Cityy Council members or
in discussions with the Pennsylvaniaa Convention Center, I find
fi myselff referencingg the massive impact that our industryy has at both the
state and local level on a number off topics. You name it and I’ve had to address it. Th
Therefore, this studyy is a critical legislative and public
relations tool that we desperatelyy need to keep up-to-date and conduct annually. However, we can onlyy do this with support from you,
our dealer members responsible for this impact. With that said, I kindlyy askk you, please take a few
w minutes to fill out this year’s survey
when you receive it. All information is confidential
fi
and we will share a full report with everyy participatingg dealer once it’s complete.
Information will be broken down byy countyy so you mayy even find it helpful in your own lobbyingg eff
fforts.
In closing, thankk you again to everyone who joined us at this year’s Philadelphiaa Auto Show
w and Blackk Tie Tailgate. Both events were
superb and that was largely, in part, due to the companyy present.
Regards,
g
Kevin Mazzucola
Executive Director
Auto Dealers CARin
g
For Kids Foundation
Golff Outing May 20
th
4 Driving Force
DO YOU KNOW TODAY’S CUSTOMER?
You mayy thinkk that you can trackk all off your Internet customers simplyy through calls or emails. The truth is most
shoppers don’t contact dealers at all. In fact, ONLY ONE-THIRD OF CAR BUYERS CALL OR EMAIL BEFORE WALKING INTO A DEALERSHIP.
That leaves millions off shoppers who just walkk in unannounced. Find outt whyy there’s so much more to the story
than just clicks and leads at WeWorkForYou.com/Brian.
©2014 AutoTrader.com, Inc. All Rights Reserved. “AutoTrader.com” is a registered trademark of TPI Holdings, Inc. used under exclusive license.
2014 Auto Show
Earns a Spot in the
Record Books!
And, no it wasn’t for the worst weather
on record during our 9-day run at the
PA Convention Center, but close!
Despite icy conditions, massive power outages, a nor’easter and an
all-day closure of the PA Turnpike, the 2014 Philadelphia Auto Show
closed with a record-breaking crowd on Sunday, February 16th. Nearly
43,000 people came through the doors on closing day, making it the
largest Sunday attendance ever recorded in the 113-year history of the
event. Further and even more important, is the percentage of attendees
that reported that they were in the market to buy a new vehicle over the
next 12 months, which jumped to 40 percent from 30 percent (in 2013)
and strongly supports the theory of “pent up demand” and should
bode well for the remainder of the sales year. Additionally,
93 percent of attendees in the market said that the Show
helped with their purchase decision.
RECORD BOO
“When Mother Nature finally gave us a break, our
attendance numbers were extremely strong and
people were having a great time,” said Donald
Franks of J.L. Freed Honda and 2014 Philadelphia
Auto Show Chairman. “In addition to setting a
record on our closing day, the Show also received
its highest event rating to date--a 4.04 on a 5-point
scale. The show floor looked fantastic, the buzz was
contagious and our participating manufacturers
were thrilled. Despite the weather challenges, we
proudly hosted more than 204,000 people this year.
That is impressive.”
Other highlights from the comprehensive exit survey annually
conducted by Analytic Business Services (AnaBus) at the 2014
Philadelphia Auto Show include:
Q
Ride & Drive activities became a more important reason to attend the Show.
QThere was a notable shift away from sedans as the top vehicle to buy and a
more varied response that also referenced SUVs and convertibles.
Q Ford was most frequently cited as the top manufacturer for purchase intent.
Q The top 5 favorite vehicles at the Show were (in order) the Mustang,
Corvette, Wrangler, Camaro and Cherokee. The American sports cars are
always at the top of the list, but the fact that the Wrangler managed to
push its way into the top 3 and a second Jeep (the Cherokee) came in fifth,
indicates once again the value of a heavily-interactive and experiential
aspect to their display. The Wrangler came in fourth last year and 19th the
year before.
Q The three manufacturers voted as “Best Presented Manufacturer” were Jeep,
Ford and Toyota, respectively.
New rules coming in 2014! Call for a free compliance evaluation!
Show Highlights Continued
L A B O R ATO R I E S
the better solution
THE ONLY MANUFACTURER
Other fan favorites of the 2014 Philadelphia Auto Show included
the increasing popularity of the DUB Show Tour, which focuses
on aftermarkett productt and accessories. In addition, a new feature,
JUMPSTART by Harley-Davidson, putt attendees in the saddle off a
running Harley-Davidson motorcycle and lett them experience Àrsthand
the “thrill off the throttle.” And the classic carr displays perfectly presented
by Buckingham Concours d’Elegance, Antique Automobile Club of
America, LRA
A Auto Museum and Simeone Automotive Museum were
a huge draw.
The Philadelphia Auto Show also proudly welcomed back the Face-Off
feature this yearr afterr the success off the inaugural Face-Offf between Ford
Mustang and Chevrolett Camaro in 2013. This “competition” is designed
to be a unique challenge thatt invites local carr club enthusiasts to display
whatt they considerr theirr “bestt off the best,” as well as differentt models
off each competing namesake thatt tell the story off the niche brand and
how itt has evolved overr the years. This year’s duel, which was powered
by Carlisle Events, was a showdown between Ford (lastt year’s winner)
and Mopar. Auto Show attendees voted and proclaimed Moparr victorious
in 2014! As the winner, Moparr will have $2,500 donated in theirr name
to a local child-related 501(c)(3) charity off theirr choice and $1,000 to
be divided between the participating clubs, courtesy off the Philadelphia
Auto Show.
SELLING DIRECT IN TRI-STATE AREA
THE FINEST PROFESSIONAL DETAIL PRODUCTS
Call Shawn 1.800.442.7339 ardexlabs.com
Plans forr the 2015 Philadelphia Auto Show are currently being discussed.
Please be sure to monitorr phillyautoshow.com forr updates and add info@
phillyautoshow.com and mike@phillyautoshow.com to your address
book so you can receive the latestt information.
And The Award Goes To...
PHILLYAUTOSHOW.COM recently took
home a silver ADDY in the Digital Advertising
website category! And the exit survey showed
an increased on-line engagement. 58% of
respondents reported using the Show website.
This was a significant
fi
increase from last year.
And the website rating continued its positive
momentum, rising to its highest level off 3.63
out off 5.
By The #
#PHILLYAUTOSHOW
W ON-LINE PRESENCE:
1,844
TWITTER
FOLLOWERS
8 Driving Force
7,658
FACEBOOK
LIKES
10,576
INSTAGRAM
TAGS
Camp Jeep continues to be a crowd
favorite! The 25,000-square foot
exhibit gave attendees a chance
to experience the extreme off-road
capabilities of Jeep vehicles
#BLACKTIETAILGATE
The BTTG Receives Top Ratings & Sets Attendance Record!
10 Driving Force
“Simply put, this was the highest
rated Black Tie Tailgate ever,”
Kevin Mazzucola, Executive Director, ADAGP
To the 4,000 ticket holders of this
year’s Black Tie Tailgate, thank
you! You helped us set a new
attendance record and together,
we raised approximately
$446,000 for the Division of
Neonatology at The Children’s
Hospital of Philadelphia…
We knew the eventt was great, we heard others say
itt was great, butt every year, we like to be sure. That
is exactly why the ADAGP
P began conducting event
surveys nine years ago forr nott only the Philadelphia
Auto Show butt the Black Tie Tailgate as well. While
the mostt importantt aspectt off this very special night
will always be the amountt off supportt shown forr and
given to The Children’s Hospital off Philadelphia via
the automotive industry and otherr guests, as the event
organizer, it’s importantt forr the ADAGP
P and Auto
Dealers CARing forr Kids Foundation to have a good
pulse on whatt people are saying afterr theirr Black Tie
Tailgate experience. Will they tell their friends to
come? Whatt did they think off the food? Afterr all, as we
all know, a betterr experience means return customers,
which means more money ultimately raised forr the best
pediatric hospital in the world.
“Clutch and company rocked the house! Simply put,
this was the highestt rated Black Tie Tailgate ever,” said
Kevin Mazzucola, Executive Directorr off the ADAGP
and Auto Dealers CARing forr Kids Foundation. “The
numbers speak forr themselves. There isn’tt much more
I can say to validate how terriÀc
À this year’s eventt was.”
The date off the 2015 Black Tie Tailgate is January 30th.
Please be sure to monitorr phillyautoshow.com forr the
latestt updates and details.
By The Numbers
The overall satisfaction, the
recommendation to friends
metric and the quality of the
staff all had their highest ratings
recorded in nine years of data.
The numbers speak for
themselves - 93% of respondents
rated the event as either excellent
or outstanding.
With the new event caterer,
Garces Group Catering, the food
rating came in at 4.17 this year
(on a 5-point scale).
Another theme picked up in this
year’s survey is a rather dramatic
increase in respondents stating
that they had a CHOP affiliation.
This number went from 11% last
year to 20% this year.
One of the reasons for the high
satisfaction was most
levels of satisfac
likely the fast serv
service for both the
food and bevera
beverage. Only 4% of
respondents said the wait in line
for food w
was long.
The “Would yo
you recommend
fri
the event to a friend?”
question
received the highest
hig
rating of
ratin questions
any of the ratings
su
asked on the survey
coming in
at 4.67, which is also
a
based on a
5-point scale.
William
W
W. Fox,
M.D & Phyllis
Dennery, M.D.
of the CHOP
Neonatology
Unit
Ne
with Clutch the
B
Bear. (Left page)
Instagram photos
Ins
of the event were
more popular this
mo
year than ever.
Driving Force 11
Driving Force 12
#CLUTCH: The Making of a Mascot!
Iff there were history books aboutt the Black Tie
Tailgate att the Philadelphia Auto Show, 2014 would
go down as the yearr off “Clutch.” Nott only did the
Auto Dealers CARing forr Kids Foundation produce
an exactt replica off “Clutch” in two loveable sizes
thatt were available forr sale (with proceeds beneÀ
Àting
The Children’s Hospital off Philadelphia (CHOP)),
the Foundation also broughtt him to life via a custommade, one-of-kind mascott costume. Afterr fourr months
off designing and back and forth idea exchanges with
the production team att BAM Mascots, “Clutch” the
mascott was ofÀ
fÀcially born.
“We all know it’s really aboutt organic social media
these days,” said Kevin Mazzucola, Executive
Directorr off the ADAGP
P and Auto Dealers CARing for
Kids Foundation. “So when we started brainstorming
ways to increase both our Black Tie Tailgate
awareness and ourr affÀliation with CHOP
P on social
1.
media, we thoughtt we’d give this conceptt a shot. We
neverr thoughtt itt would take offf as well as itt did.”
Awareness on social media about the Black Tie
Tailgate soared this yearr via photos off guests with
Clutch, use off speciÀc hashtags, etc. This was evident
while onsite att the eventt because you were hardpressed to Ànd Clutch withoutt a line off eagerr guests
waiting to take theirr photo with him, give him a high
À etc.
Àve,
If you haven’t met Clutch yet, you will. In the
meantime, take a look att the developmentt process!
Maybe it’s something you will considerr forr yourr own
business one day?
1. Samples of fur were carefully chosen based on
color and texture. 2. The head was sculpted using
lightweight, un-crushable foam and has a tiny built
in fan to help keep the head cool. 3. The body is
constructed from a removable inner nylon suit and
has three support rings to give the body shape. A
CamelBak hydration system allows the wearer to
drink while the suit is on. Add the signature black
bow tie and Clutch is ready for the red carpet!
2.
3.
Driving Force
TECH COMP DISTRIBUTES $750,000
IN SCHOLARSHIPS & PRIZES!
“Ourr regional competition has been widely
recognized as one off the bestt in the country,”
Steve Kelly, chairman of the Greater Philadelphia
Automotive Technology Competition
The Auto Dealers CARing for Kids
Foundation proudly announces the results
of its 21st Annual Greater Philadelphia
Automotive Technology Competition. The
Foundation congratulates High School
Seniors David Andrews and James Wiestt of
Gloucester County Institute of Technology
on capturing Àrstt place att this year’s event,
which took place on February 28th. The
winning duo will now move on to represent
the Greaterr Philadelphia region att the National
Automotive Technology Competition in New
York this month. Approximately 30 teams
from around the country are also expected to
participate in the national event.
Underr the guidance off Instructorr Glenn Hubert
and with supportt from Holman Ford Lincoln,
David and James competed againstt 11 other
technical schools in the area att the competition
and walked away with approximately $187,000
in scholarships and prizes, collectively.
14 Driving Force
Each team had to complete 10 different
work stations, which focused on emissions,
automotive
fundamentals,
diagnostics,
information technology, communication
skills and more. In addition, the students
were challenged to perform a 60-minute, predelivery inspection on a previously-bugged
new vehicle. The Àrstt place duo will use the
information they learned through this event
and apply itt to theirr training forr the National
Competition where they will be tested on a
Toyota Corolla. Toyota off Runnemede will
help them prepare forr the eventt by providing
access to selectt vehicles forr training purposes.
“Ourr regional competition has been widely
recognized as one off the bestt in the country,”
said Steve Kelly, chairman of the Greater
Philadelphia
Automotive
Technology
Competition and dealer principal of Kelly
Chevrolet. “It’s a terriÀ
Àc accomplishment
to compete in this event let alone win it.
Congratulatory wishes are certainly extended
to David and James and we wish them much
luck as they prepare to compete againstt some
off the bestt high school automotive education
students from across the country and vie for
the title of The Nation’s Bestt Automotive
Technicians.”
Created in 1994, the purpose off the Greater
Philadelphia
Automotive
Technology
Competition, as well as the National
Automotive Technology Competition, is
to build awareness for the important role
of auto technicians in today’s workforce
and to spotlightt theirr specialized skills and
professionalism. The Àrstt partt off the regional
competition involved an 80-question written
exam. Off the approximately 100 students who
took the exam, the twenty-fourr individuals
who received the highestt marks advanced to
the hands-on portion off the event.
Continued on page 23
{and the experience to go with it}
As one of the largest specialized auto dealership accounting
practices in the Mid-Atlantic community, our team has
provided business solutions to more than 160 dealerships
for over 50 years. LET’S GO FOR A DRIVE!
GUIDANCE IN THE IRS
MAZE OF THE FINAL
TANGIBLE PROPERTY
REGULATION
Assurance Services
Internal Process Reviews
Succession Planning | Tax Strategies
Risk Assessment | Cash Flow
Contact our dealership services group today!
Daniel P. Thompson, CPA • 717.761.7210
www.cpabr.com
info@cpabr.com
Driving Force 15
ADAGP News
& Events.
FORE!
99TH ANNUAL GOLF OUTING & TOURNAMENT IS MAY 20TH
As a reminder, the Automobile Dealers Association of Greater
Philadelphia’s golf outing is back for its 99th year. In 2012, this event
raised over $24,000 for the Auto Dealers CARing for Kids Foundation.
These funds were used to support our Driving Away the Cold program,
which has provided over 140,000 new winter coats to local children in
need since 2008.
This spring, we return to RiverCrest Golf Club in Phoenixville for the
event. Established in 2004, RiverCrest golf course has quickly gained
recognition in the Philadelphia area as an outstanding course and a true
test of golf for players of all skill levels. This 6,750 yard, par 71 course
has a traditional Áair among a natural setting featuring rolling hills,
lakes, waterfalls and an incomparable variety of holes.
The day will be Àlled with great food, fun contests and several
chances to connect with fellow dealers and other members of Greater
Philadelphia’s retail automotive industry. Golf is limited to Dealer
Members and sponsors. All are welcomed to attend the cocktail hour,
awards reception and buffet dinner at the end of the day. Sponsorship
opportunities are still available! If you are interested in participating
in this great golf tradition, please complete the sponsor registration at
caringforkids.com. A portion of each sponsorship is tax deductible and
will be acknowledged upon receipt of payment. For additional questions,
please contact Kelsey Hinkle at kelsey@adagp.com or 610.279.5229.
WE NEED YOUR HELP!
ECONOMIC IMPACT SURVEY NOW AVAILABLE ONLINE
Attention all Dealer Members! The ADAGP is again administering its
Economic Impact Survey to provide statistics on a local level about the
retail automotive industry and its widespread economic impact on the
City of Philadelphia as well as the Commonwealth. This is critical data
that we need to collect as we continue our lobbying efforts regarding
a number of issues, including the importance of the Philadelphia Auto
Show to consumers in the region as well as you, the region’s strongest
small business owners.
Continued on page 18
YOU DON’T HAVE TO
sell more
CARS
IN ORDER TO
make more
MONEY
F&I TRAINING & ONGOING SUPPORT FROM
MAXIM IS PROVEN TO DELIVER RESULTS!
LOCAL PEOPLE DELIVERING WORLD CLASS RESULTS
Profit By Design® is a customer-focused process that helps
guarantee customer satisfaction.By focusing on buyers and
seeing things from their perspective, your dealership can actually
become more prosperous, while giving the customer a more
enjoyable buying experience.
Call today for your free assessment
and goonfrom
good to great!
Continued
next page.
JIM MAXIM. 610-721-1010
www.maximautomotive.com
Driving Force
ADAGP News & Events Cont.
ACCOUNTING & AUDIT
Below you will see a sample of the form that will be mailed and
emailed to you shortly. You may also Àll out the survey online at
www.adagp.com/econ-survey. If you choose to do so online, please
Àll out an entry form for each store if you represent more than one. All
participants who complete the survey will be entered into a drawing for a
$250.00 Visa gift card, which you can use to buy your staff or colleagues
lunch, do a good deed in your dealership’s name or whatever you see Àt.
TAX PL ANNING
BUSINESS VALUATIONS
CONSULTING SERVICES
BUSINESS SUCCESSION
As a reminder, all surveys are conÀdential and data is collected solely by
Auto Outook, Inc. For any questions, please contact the Association at
610.279.5229. The ADAGP thanks you in advance for your participation!
AUTOMOTIVE STRENGTH...
INTEGRIT Y DRIVEN
What makes The Mironov Group stand out from the
pack? For 50 years, our teams of industry specialists
have been dedicated to serving the unique needs off our
clients within the retail automotive industry and other
closely held businesses.
Trusted since 1963, our name and logo have changed
throughout the years – but never our firm’s endless
commitment to client service and integrity.
SPECIALIZING IN:
REDIRECT YOUR PA
BUSINESS TAX LIABILITY
HELP LOW-INCOME CHILDREN GET A QUALITY EDUCATION
ACCOUNT RECONCILIATIONS
INTERNAL CONTROLS
REGULATORY ISSUES
TAX ISSUES
OPERATIONS ANALYSIS
FIXED OPERATIONS ANALYSIS
PLANNING & DEVELOPMENT
For pennies on the donated dollar, your dealership can help secure the
educational future of hundreds of low-income children who are trapped in the
15% of lowest-performing public schools in PA (nearly half of these failing
schools are in Philadelphia). Pennsylvania has expanded and reÀned the
popular Educational Improvement Tax Credit (EITC) program. Under this
new, more targeted program – the PA Opportunity Scholarship Tax Credit
(OSTC) – businesses can receive a 90% state tax credit and a federal gift
tax deduction for donations made to an approved scholarship organization.
And, there is over $22 million in unclaimed Pennsylvania OSTC tax credits
available right now that can be applied to 2014 business taxes owed.
Join the more than 3,000 businesses that have redirected over $400 million
in tax dollars to educational organizations that provide low-income children
with Ànancial access to quality schools. It is an easy way to make a difference
in the life of a child, family and our community.
Contact: Chuck Diegel, Ralph Diodata or Mike Mulhearn
653 SKIPPACK PIKE | STE 18 | BLUE BELL PA 19422
p 800.572.7101 w M IRONOV G ROUP . COM
NEW JERSEY
NEW YORK
PENNSYLVANIA
Member of Auto Team America
18 Driving Force
FLORIDA
To apply for this tax credit, you simply complete an online application
through the PA Department of Community and Economic Development’s
(DCED) at: www.newpa/com/OSTC). Once approved, you have sixty
(60) days to make your donation to an approved scholarship organization.
Eligible scholarship organizations are listed on the DCED website, but
they include groups like Children’s Scholarship Fund Philadelphia (CSFP)
(www.csfphiladelphia.org).
The tax credit can be applied to seven different state taxes, including the Corporate
Net Income Tax, the Capital Stock and Franchise Tax, and can be passed through
to owners of S corporations. To learn how your business can provide our most
disadvantaged children with hope, go to: www.newpa.com/OSTC
AutoTeam America
Releases New
White Paper on 2025
Dealership Vision
AutoTeam America (ATA)
released its white paper “2025
Dealership Vision: What Lies
Ahead!” at this year’s NADA
Convention and Expo in New
Orleans. The ATA white paper
presents key Àndings from an
opinion survey of automotive
dealers throughout the country
as well as brainstorming
sessions with dealers, ATA
members and other auto
industry specialists on the
strategic vision of dealerships
for the year 2025.
“The issue this paper seeks
to address is ‘What will the face of a typical dealership in 2025 look
like?” said Rob Campbell, lead writer for the white paper and dealer
analyst with The Mironov Group. “Will it be part of a large group? Will it
be factory owned? Or will it be a traditional locally owned and operated
store?”
According to Campbell, the study considers the shift in consumer demands,
desires and habits regarding new vehicle shopping and purchasing, and
supports the concept that there will continue to be different paths to
proÀtability in the dealership. “While consolidation will continue, there
will still be room in the market for single-point operators.”
OTHER KEY FINDINGS FROM THE SURVEY INCLUDE:
There will be a higher turnover of stores in the next decade as current
ownership retires.
Factory influence over the day-to-day operations of the dealership
will be expanded. The most costly requirements will cause some
dealerships to sell.
Dealership value will increase as the earnings multiple will continue
to climb.
Shrinking gross profit margins will be offset by a lower cost structure.
Smaller staffing requirements will result from the use of technology to
be more efficient.
Technology will continue to allow greater communication to occur with
the consumer.
The F&I department will face the greatest transformation from
technology and regulatory changes. Increasing consumer regulations
will continue to shape the dealer’s business model.
ATA’s 14-page white paper covers additional key issues auto dealers
expect to face in 2025, including the physical size/appearance of
dealerships, sources of income, sales process, human resources/stafÀng,
proÀtability and more. To download a PDF of the white paper, visit The
Mironov Group website at mironovgroup.com.
Driving Force 19
From NADA:
NADA USED CAR GUIDE NAMES TOP TRUCK
AND SUV RETENTION VALUES
According to a March 24th news release, large pickup trucks have the
highest retained value of all three-year-old light duty trucks and SUVs at
62.5% of the Manufacturer Suggested Retail Price (MSRP) for a typically
equipped model, says the National Automobile Dealers Association
(NADA) Used Car Guide in the March edition of NADA Perspective, a
monthly industry trends report. Mid-size vans ranked the lowest at 49.2%.
GROW. WISELY.
“Americans have always had a penchant for pickups,” said Jonathan Banks,
executive automotive analyst of NADA Used Car Guide. “A recovering
housing market, better fuel economy and a wide range of trim levels have
helped increase demand and keep retention values among the highest in
the industry.”
The highest retaining vehicle of all the segments is the Toyota Tacoma in the
mid-size pickup segment at 80.7%, while the lowest retaining vehicle is the
Suzuki Grand Vitara in the mainstream compact utility segment at 41.5%.
Auto dealerships today are looking to drive growth.
How can you safely steer your business through the
demands of a turbulent marketplace? How can you plan
effectively for the future? And what assistance do you
need today to reach your financial goals?
To grow wisely, you need an advisor who really knows
the automotive business...and knows you. Who can
deliver tailored solutions that create opportunities,
maximize efficiency and help your bottom line.
EisnerAmper is that advisor. We roll up our sleeves
to get to the bottom of your toughest challenges, so
you get the advice and strategies you need to create
sustainable growth.
TM
Let’s get down to business.
Dawn P. Rosoff
Partner, Automotive Dealerships Group
dawn.rosoff@eisneramper.com
In the mid-size utility segment, the Toyota 4Runner topped the list with
retention at 79.8%, which made it the second-highest retaining vehicle
in the industry behind the Toyota Tacoma mid-size pickup. Toyota brand
vehicles placed within the top two highest retention values in each of the
mainstream segments. Toyota also topped the luxury large SUV segment
with its Land Cruiser.
The Audi Q5 led the luxury compact utility segment with 67.8% retention
and is also among the segment’s top sellers. Although the segment is
limited in supply, the leap in sales for the most-liked models is evidence of
its booming demand.
The hybrid SUV and truck segment on average retains at a rate of 54.3%,
which is lower than nearly all other respective segments, with the exception
of mid-size vans. Toyota has two vehicles in the top three spots; in Àrst
place, the Highlander’s retention score of 64.4% beat out the GMC Yukon
Denali and Lexus RX by a combined average of 6.3 points.
“Although hybrid truck retention was lower than that of most other
segments, it was almost six points higher than hybrid car retention,” said
Banks. “This is consistent with overall truck performance, as the group’s
retention largely outperformed that of cars.”
NADA calculated retention Àgures for the most prevalent trim level of
three-year-old light duty trucks and SUVs. For the purposes of this report,
retention is a function of a three-month average (Jan. 2014 – March
2014) of NADA’s average trade-in value divided by a vehicle’s typicallyequipped MSRP, not including any incentives or rebates available at time
of purchase. For more information, visit nadafrontpage.com.
215.881.8800
www.eisneramper.com
EisnerAmper LLP
Accountants & Advisors
Independent Member of PKF International
The highest retaining
vehicle off all the segments
is the Toyota Tacom
ma.
20 Driving Force
When You’re Looking for Skilled Technicians,
Look No Further than Lincoln Tech!
Trained technicians are in demand* across the country. In orderr too give
yourr customers and vehicles the properr service, yoourr stafff must bee up
to speed with the latest skills in automotive repairr technollogy. Linccoln
Technical Institute offers its technicians trainingg yoou can trrust through ASE
Certified
fi Instructors.
Call (215) 335-0800 and askk forr ourr Careerr Seervices Departmeent to
find outt how
w we can place ourr skilled, qualified
fi tecchnicians in yourr hands.
r.BTUFS$FSUJàFE
"VUPNPUJWF5FDIOPMPHZ
r"VUPNPUJWF4FSWJDF
.BOBHFNFOU
Lett ourr graduatess puutt theiir skilllss too work...forr you!
CALL NOW! 215-335-0800
www..lincolntech
h.com
1IJMBEFMQIJJB$BNQVT
1
5PSSFTEBBMF"WFOVFrr1IJMBEFMQIIJB1"
05/84950909
*U.S. Bureau off Laborr Statistics, Occupational Outlook Handbook, 2008-2009 Edition.
Continued on page 22
Driving Force 21
VOYNOW, BAYARD, WHYTE
& COMPANY, LLP
CERTIFIED PUBLIC ACCOUNTANTS
STEERING YOU
IN THE RIGHT DIRECTION.
Financial Reporting & Projections/Forecasts Q Internal Control Design Q Employee Benefit Plans Q Tax & Estate Planning
Lifo Inventory Applications QCash Management & Budgeting QManagement Advisory Services QPerformance Evaluation & Cost
Analysis QBuy/Sell Agreements & Succession Planning QMergers & Acquisitions QPersonnel Evaluation & Compensation Planning
ACCOUNTANTS & MANAGEMENT ADVISORS TO THE AUTOMOTIVE INDUSTRY SINCE 1954
P: 215-355-8000 voynowbayard.com 4HE.ORTHBROOK#ORPORATE#ENTERs.ORTHBROOK$R3UITE4REVOSE0!
22 Driving Force
Support Continued
Otherr top honors att the 2014 Greaterr Philadelphia Automotive
Technology Competition went to Randall Grois and Vishal
Ramharrack off Mercerr County Technical Schools - Sypek Center
who came in second place and received approximately $142,000
in scholarships and prizes, collectively. Instructorr Michael Cramer
led the team with the supportt off Haldeman Ford as the sponsoring
dealership.
Third place wentt to Christopherr Dellmyerr and Anthony Mascia of
Bucks County Technical High School. Sponsored by McCafferty
Ford and under the guidance of Instructor Bryon Cesari,
Christopherr and Anthony were awarded approximately $82,000
in scholarships and prizes.
“This eventt would simply nott be possible withoutt the supportt of
ourr dedicated committee members, sponsors and partners,” said
Mary Lynn Alvarino, Directorr off Operations forr the Auto Dealers
CARing forr Kids Foundation. “To each and every one off them,
thank you!”
Educational Sponsors
Gift Sponsors
Automotive Training Center
Lincoln Technical Institute
Ohio Technical College
Universal Technical Institute
University off Northwestern Ohio
American Honda Acura
Applebee’s
Ardex Laboratories
Castrol/BP
P Lubricants
Chrysler
Clearr Channel Outdoor
Clearr Channel Radio
Comcastt Sportsnet
Comcastt Spotlight
Del Toyota
EisnerAmper
Ford Motorr Company
Fox Chase Bank
General Motors Northeastt Region
Jack Williams Tire
Kia Motors America
KYW-AM
M & T Bank
Mac Tools
Matco Tools
Mazda North America
Penske Shocks
PetroChoice
PNC Bank
Quick Lane Tire & Auto
Siegel Distributing
Snap-On
Subaru off America
Thompson Toyota
Titan Outdoor
Viamedia Cable
WCAU-TV
WMGK-FM
WPHL-TV
WRDW-FM
WRFY-FM
WXTU-FM
Dealer Sponsors
Brynerr Chevrolet
Chapman Nissan
Faulknerr Hyundai
Haldeman Ford
Holman Ford Lincoln, Maple Shade
L Freed Honda
JL
Keystone Motors
Manderbach Ford
McCafferty Ford
Millerr Ford
SpringÀeld
À Ford
Tom Masano Ford
Corporate Supporters
Chryslerr Group LLC
Community College off Philadelphia
Hunterr Engineering Company
Mitchell 1
New Auto Solutions
Thompson Toyota
Toyota Motorr Sales
Volvo Cars off North America
Driving Force 23
3311 Swede Rd. Suite A Q East Norriton PA, 19401
TRAIN TO EXCEL
ACHIE
MORE
VE
36
YEARS
Having a great coach means everything. In our 36 years, JM&A Group
has emerged a world-class F&I leader by making dealers more
profitable. Our 300-associate field force gives us the ability and
resources to provide your team with process, efficiency, performance
and production on your sales floor, in your F&I office and service drive.
With JM&A Group as your coach, your F&I aspirations can become
achievements. We salute our 2014 Olympic athletes for their
dedication and commitment.
High-speed performance requires precision. Performance is our promise.
Call (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 sixteenth consecutive year.
© 2014 Jim Moran and Associates, Inc.
&)
&)8%$ď/03
42!).).'
&2/.4˶%.$ď
3!,%3
).˶34/2%ď
SUPPORT
/0%2!4)/.3
).#%.4)6%3