Minnesota Automobile Dealers Association

News
January 2015
C&S Council News
inside
Collision & Service Council
None other like it
175 members large and still growing strong…
No Withdrawal Liability Relief
Granted in 2014
NLRB Updates
DVS Systems on Hold
What were we getting into? Where would this go? MADA had no
FAQ on Buyer’s Guide
other auto dealer association after which to model creation of a
collision and service group.
We were starting from
Watch for your invitation to the Council’s Third
scratch and hoping it would
Annual Auto Show Preview and Reception which will
launch. What we did know
be held Thursday, March 12th in our exhibit area.
is that MADA dealerships
wanted a home that
upcoming events
would advocate on behalf of the nucleus of their business: fixed
mar
operations… service, collision and parts. What started out as a
Legislative Reception
10
mission to be more competitive with the independent shops has
Twin Cities Auto Show
since morphed into an entity that has become much bigger and
mar
Twin Cities Auto Show
more significant than ever imagined.
7-15
As with anything new, and no history to go on, it’s a risk not
knowing what lies ahead and “what’s in it for me.” But with the
confidence and trust of those who signed on to the Collision &
Service Council (CSC), our members embraced the Council’s
vision for dealership fixed operations.
The strong leadership of the Council’s Advisory Committee has
been the clear voice of their peers. The Council has tackled
insurer-mandated parts procurement programs and continues
efforts to overcome insurance steering. It continues to expand
our member library on regulatory, compliance and labor issues.
It works with automotive schools to enhance their programs
through our Trash-to-Treasure parts donation program. At the state
level, the Council will be expanding the recruitment platform by
advocating for stronger automotive programs in the high schools.
Minneapolis
mar
Title Basics
Minneapolis
mar
Certified Title
Minneapolis
10
10
visit
www.mada.org
for details, registration
and a complete list of
Upcoming Events and
Training
C&S Council... continued on page 3
Scott Lambert, Executive Vice President • 200 Lothenbach Ave. • West St. Paul, MN 55118 • (651) 291-2400 • 1-800-652-9029 • FAX (651) 291-2894
MADA News
Legislative News
Watch your Mailbox
No Withdrawal Liability
Relief Granted in 2014
Hot off the press - the annual Yearbook and
Buyer’s Guide Directory.
2-9029
0 • 1-800-65
651-291-240651-291-2894
Fax
da.org
www.ma
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-291-289
0 • Fax 651
651-291-240 .gmada.com
www
2015
Congress has passed very few bills this year,
but made up for the lack of activity in a postelection lame duck session. In order to keep
government running, Congress had to pass
continuing resolutions (“CR”) to fund all functions
of government. However, the CR legislation
became a magnet for all types of bottled-up policy
provisions and morphed into a what is now being
referred to as a “CRomnibus” spending bill.
YEARBOOK AND
BUYER’S GUIDE
DIRECTORY
Unfortunately, efforts by a national coalition of
dealers to find relief from pension withdrawal
liability were not on the list and ended in
disappointment when Congress instead passed a
union-backed pension bill.
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The new law allows opportunities for multiemployer pension plans in critical condition to
cut some benefits and give themselves a longer
lifespan. However, the new law contains nothing
on withdrawal liability.
The two authors, John Kline (GOP-MN) and
George Miller (Dem-CA), negotiated the proposal
in secret, allowing no input from anyone, even
Senators involved in the debate. The proposal
was slipped into the $1.1 trillion CRomnibus
package in the House just two days before the
final vote. No amendments were allowed.
The Minnesota Automobile Dealers Association is a
non-profit trade association dedicated to the progress of the retail auto
industry in Minnesota.
President
Greg House, House Chevrolet, Stewartville
President-Elect
Mike Saxon, Inver Grove Ford Lincoln, Inver Grove Heights
Treasurer
Rick Jensen, Jensen Motors, Inc., New Ulm
Secretary
Michael Stanzak, Key Cadillac, Inc., Edina
Executive Vice President
Scott Lambert, MADA Executive Vice President
200 Lothenbach Avenue • West St. Paul, MN 55118
Metro: 651-291-2400 • Toll Free: 800-652-9029
FAX: 651-291-2894 • Web site: http://www.mada.org
January 2015 / Page 2
The final bill was essentially the proposal
advanced by the National Coordinating
Commission on Multi-Employer Pension Plans
(NCCMP). While a few employers belong to this
group, it was housed and run by powerful union
interests.
MADA, along with other automotive trade groups
around the country, are assessing the possibility
of further action on this issue in 2015.
C&S Council... continued from cover
To address the needs of our future workforce,
the Council was elated to have been awarded
a $25,000 grant to pilot an automotive summer
NitroX camp for youth, with plans to expand this
program statewide over
the next few years.
And most recently, the
Council was pleased
to have been invited to
serve on a committee to
request federal grants
for apprentices entering or currently in automotive
programs.
As you can see, the efforts and successes of
the Council’s initiatives are quickly establishing
a presence in the industry, gaining recognition
among our leaders and educators. Of course, we
couldn’t do all that we do without the continued
support of our members, committee volunteers,
and sponsors. The Council has maintained 100%
membership retention since its inception. Thank
you, members!
So you ask, what’s next? Watch for a
Recruitment “Tool Kit” in the coming
months, a resource for members
to use in the search for quality
mechanics and technicians. And be
sure not to miss our exhibit at the Twin Cities Auto
Show in March. The Council is excited to unveil
a consumer interactive and educational exhibit
to demonstrate the advantages of taking their
vehicle to a dealership for repair work and proper
vehicle care. Watch for your invitation to the
Council’s Third Annual Auto Show Preview and
Reception which will be held Thursday,
March 12th in the CSC exhibit area.
In a little more than two years, what started out as
a reaction to negative dealership advertising has
developed into a strong and growing organization
that has taken the high road for the benefit of
dealerships and the entire industry: MADA’s
Collision & Service Council.
“Nobody knows your car
better than your dealer”
...what started out as a reaction to negative dealership
advertising has developed into a strong and growing
organization that has taken the high road for the benefit
of dealerships and the entire industry
Shell of the RC Car NitroX Summer Camp students will build,
paint and decal.
January 2015 / Page 3
Legal News
Fraud Alert Leads to Arrest
Late last year, an outstate Chrysler dealer
contacted MADA about a crook passing bad
checks at his store.
MADA published a Fraud Alert via email to our
900 or so email list subscribers. We had a police
report in hand which allowed us to name names
in the Fraud Alert notice.
As it turns out, a Mankato dealer had just
delivered three used trucks to the bad guy, saw
the MADA alert and contacted the police. The
police worked with the dealership to set up
surveillance which lead them to the suspect and
the arrest.
Every so often there’s a success story. We’re
pleased about this one.
Interested in seeing MADA Fraud Alerts in your
inbox? Sign up here: http://bit.ly/MADAmail
Legislative News
Business as Usual at Driver and Vehicle Services
In late December, MADA staff met with top officials from Minnesota’s Driver and Vehicle Services (DVS)
to discuss any agency initiatives that could impact dealer operations. The good news: no additional
changes are planned that could adversely impact dealers. The bad news: no immediate developments
are planned that could enhance motor vehicle transactions.
The Good News
After last legislative session’s contentious fight on
the release and use of motor vehicle records in
bulk, the agency is planning no further initiatives
on the use of bulk data. This is welcome news,
as the agency had been contemplating creating
a new subscriber system for accessing the
data, which could have added cost and delays
to its retrieval. One note of caution: while the
agency has no plans to change the system,
legislators may have other ideas. The Legislative
Commission on Data Practices has been charged
with reviewing the protocols for using the data as
allowed under federal law and could produce its
own proposal for accessing motor vehicle records
in bulk.
January 2015 / Page 4
The Bad News
The Minnesota Licensing and Registration System
(MNLARS ) project which was authorized in 2008
to create a Web-based system to streamline and
integrate vehicle title, registration and inspection
processes is still a few years from launching.
MNLARS has been plagued by hiccups, the most
recent of which was the cancellation of its contract
with Hewlett Packard (HP), the vendor who was
overseeing development of the new system. In
the fall of 2014, DVS took over management of
the project and has reprioritized the four stages
of project implementation. Finance, dealer
licensing and inspection functions, which were
underway when the HP contract was canceled,
have been postponed so the agency can work on
vehicle titling and registration functions in order
to meet deadlines established by the Legislature.
Advancement of dealer programs is still over a
year away, with outreach and training to system
users at least two years. Until MNLARS is fully
functional, additional efficiencies like electronic
lien release will not be incorporated into the
system.
Minnesota Auto Outlook
Covering the Minnesota automotive market
Data thru October 2014
Released by:
Minnesota Automobile
Dealers Association
Minnesota New Retail Car and Light Truck Registrations
Industry Total
Cars
Light Trucks
Most Recent Two Months
9/13 &
9/14 &
10/13
10/14*
32,978
35,599
12,958
12,781
20,020
22,818
%
change
7.9%
-1.4%
14.0%
YTD thru Oct*
2013
169,590
70,850
98,740
2014
175,847
66,491
109,356
%
change
3.7%
-6.2%
10.8%
YTD Market Share (thru Oct)*
Japanese Brands
Toyota
Honda
Nissan
Other
11,187
4,133
2,827
1,916
2,311
12,763
4,544
3,171
2,109
2,939
14.1%
9.9%
12.2%
10.1%
27.2%
57,735
22,012
15,727
8,922
11,074
61,892
22,226
16,218
9,460
13,988
Domestic Brands
General Motors
Ford
Chrysler
Other
17,195
7,303
6,460
3,400
32
18,535
7,811
6,313
4,387
24
7.8%
7.0%
-2.3%
29.0%
-25.0%
87,996
37,109
32,210
18,517
160
European Brands
Volkswagen
BMW
Mercedes
Other
2,202
1,055
562
331
254
2,076
1,029
548
287
212
-5.7%
-2.5%
-2.5%
-13.3%
-16.5%
Korean Brands
2,394
2,225
-7.1%
2013
2014
change
41.8
58.2
37.8
62.2
-4.0
4.0
7.2%
1.0%
3.1%
6.0%
26.3%
34.0
13.0
9.3
5.3
6.5
35.2
12.6
9.2
5.4
8.0
1.2
-0.4
-0.1
0.1
1.5
92,031
37,356
31,895
22,620
160
4.6%
0.7%
-1.0%
22.2%
0.0%
51.9
21.9
19.0
10.9
0.1
52.3
21.2
18.1
12.9
0.1
0.4
-0.7
-0.9
2.0
0.0
11,501
5,655
2,916
1,576
1,354
10,582
5,196
2,593
1,663
1,130
-8.0%
-8.1%
-11.1%
5.5%
-16.5%
6.8
3.3
1.7
0.9
0.8
6.0
3.0
1.5
0.9
0.6
-0.8
-0.3
-0.2
0.0
-0.2
12,358
11,342
-8.2%
7.3
6.4
-0.9
Brands included above: Domestic Brands: GM (Buick, Cadillac, Chevrolet, and GMC), Ford (Ford and Lincoln), Chrysler (Chrysler, Dodge, and Jeep). Japanese: Toyota (Toyota, Lexus,
and Scion), Honda (Honda and Acura), Nissan (Nissan and Infiniti), Other (Mazda, Mitsubishi, and Subaru). European: VW (Audi, Bentley, Porsche, and Volkswagen), BMW (BMW, Rolls
Royce, and MINI), MB (Mercedes Benz and smart), Other (Aston Martin, Ferrari, Fiat, Jaguar, Land Rover, Lotus, Maserati, and Volvo). Korean: Hyundai and Kia.
*Figures for October 2014 were estimated by Auto Outlook. Data Source: Polk.
Percent Change in Three Month Moving Average of
New Retail Registrations versus Same Period Year Earlier
% change vs. year earlier
15.0%
11.7%
7.8%
10.0%
5.0%
Percent Change in State and U.S.
New Retail Light Vehicle Markets
YTD ‘14 thru October* vs. YTD ‘13
9.4%
6.1%
2.0%
-6.2%
State
10.8%
0.0%
-0.9%
-5.0%
-10.0%
-6.9%
-2.4%
-4.9% -5.0%
Cars
-8.7% -9.3%
2.3%
Trucks
U.S.
-15.0%
10.3%
-20.0%
Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14Oct-14*
Last month in period
-15.0%
The graph above provides a clear picture of the trending direction of the state market. It shows the year-overyear percent change in the three month moving average of new retail light vehicle registrations. The three
month moving average is less erratic than monthly registrations, which can fluctuate due to such factors as
the timing of manufacturer incentive programs, weather and title processing delays by governmental agencies.
*Figures for October 2014 were estimated by Auto Outlook. Data Source: Polk.
-5.0%
5.0%
15.0%
25.0%
The graph above compares the change in new retail car and light
truck registrations in both the state and U.S. markets.
*Figures for October 2014 were estimated by Auto Outlook.
Data Source: Polk.
Data Information
All data represents new vehicle retail registrations in Minnesota and excludes fleet and wholesale transactions. Please keep in mind that monthly registration figures can occasionally
be subject to fluctuations, resulting in over or under estimation of actual results. This usually occurs due to processing delays by governmental agencies. For this reason, the yearto-date figures will typically be more reflective of market results.
Data Source: Polk.
January 2015 / Page 5
Minnesota Auto Outlook
Data thru October 2014
Minnesota
New Retail Light Vehicle Registrations
Registrations
TOTAL
Acura
Audi
BMW
Buick
Cadillac
Chevrolet
Chrysler
Dodge
FIAT
Ford
GMC
Honda
Hyundai
Infiniti
Jaguar
Jeep
Kia
Land Rover
Lexus
Lincoln
Mazda
Mercedes
MINI
Mitsubishi
Nissan
Other
Porsche
Ram
Subaru
Tesla
Toyota
Volkswagen
Volvo
YTD '13 YTD '14
thru Oct thru Oct* % change
169,590 175,847
4%
1,305
1,342
3%
1,160
1,420
22%
2,301
2,134
-7%
3,386
3,342
-1%
1,316
1,238
-6%
26,354
26,254
0%
3,390
2,922
-14%
5,745
5,905
3%
272
236
-13%
31,282
30,931
-1%
6,053
6,488
7%
14,422
14,876
3%
5,781
5,280
-9%
687
743
8%
44
49
11%
4,455
7,636
71%
6,577
6,082
-8%
311
279
-10%
1,767
1,937
10%
928
920
-1%
3,607
3,748
4%
1,554
1,659
7%
615
456
-26%
878
1,820
107%
8,235
8,694
6%
232
201
-13%
182
235
29%
4,927
6,170
25%
6,502
8,442
30%
79
69
-13%
20,245
20,293
0%
4,313
3,535
-18%
685
511
-25%
State Market Share for Top 15 Selling Brands
YTD ‘14 thru October* vs. YTD ‘13
Market share
YTD '13 YTD '14
thru Oct thru Oct*
0.8%
0.7%
1.4%
2.0%
0.8%
15.5%
2.0%
3.4%
0.2%
18.4%
3.6%
8.5%
3.4%
0.4%
0.0%
2.6%
3.9%
0.2%
1.0%
0.5%
2.1%
0.9%
0.4%
0.5%
4.9%
0.1%
0.1%
2.9%
3.8%
0.0%
11.9%
2.5%
0.4%
0.8%
0.8%
1.2%
1.9%
0.7%
14.9%
1.7%
3.4%
0.1%
17.6%
3.7%
8.5%
3.0%
0.4%
0.0%
4.3%
3.5%
0.2%
1.1%
0.5%
2.1%
0.9%
0.3%
1.0%
4.9%
0.1%
0.1%
3.5%
4.8%
0.0%
11.5%
2.0%
0.3%
17.6
18.4
Ford
14.9
15.5
Chevrolet
11.5
11.9
Toyota
8.5
8.5
Honda
Nissan
4.9
4.9
Subaru
4.8
3.8
4.3
Jeep
2.6
GMC
3.7
3.6
Ram
3.5
2.9
3.5
3.9
Kia
Top ten ranked brands in each percent change category are shaded green.
*Figures for October 2014 were estimated by Auto Outlook.
3.4
3.4
Dodge
Source: Polk
3.0
3.4
Hyundai
This report is sponsored by the Minnesota Automobile Dealers Association and
produced by Auto Outlook (800-206-0102).
Volkswagen
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 Minnesota Auto Outlook, published by Auto Outlook, Inc. on behalf of the Minnesota Automobile Dealers Association and must also include the statement: “Data Source: Polk.”
Buick
YTD '13
thru Oct
2.1
2.1
Mazda
Auto Outlook, Inc. is not responsible for management decisions based on the content of Minnesota Auto Outlook. Copyright Auto Outlook, November 2014.
YTD '14
thru Oct*
2.0
2.5
1.9
2.0
0.0
5.0
10.0
15.0
Market Share
*Figures for October 2014 were estimated by Auto Outlook.
Source: Polk.
January 2015 / Page 6
20.0
Member News
Condolences are extended to the friends and family of Bruce
Roger Cressy of Cokato who passed away on January 7. Bruce
was the owner of Cokato Motor Sales from 1966-2003.
Legal News
NLRB Quickie Election Rule Adopted
and Immediately Challenged in Court
The National Labor Relations Board adopted a final rule on
December 12, 2014 changing union election procedures and
streamlining dispute resolution. The rule is scheduled to take effect
on April 14, 2015.
Endorsed Service & Vendors
Computerized Vehicle Registration
CVR
F&I Products
Protective
Dealership Marketing
Visible Customer
Group Health Insurance
Blue Cross Blue Shield of MN
Delta Dental
ReliaStar Life
The most controversial portion of the new rule calls for what
opponents dub as “quickie elections,” substantially shortening
the time between a union election petition and the election itself.
Telling the management story takes time. Under existing NLRB
procedures, once the union files an election petition, it’s typically
42 days until the actual election occurs. The final rule provides
for elections to be held as soon as 10 to 21 days after the union
files the petition with the NLRB. These “quickie elections” are
unfortunate for dealerships and their employees; there’s just not
enough time to fully discuss and air out the issues.
Workers Compensation
Ensure Agency
Several business trade groups responded immediately by filing a
lawsuit on January 5, 2015 to block the new rule alleging that the
NLRB overstepped its authority. The plaintiffs allege that the new
rule violates federal law, in part by curtailing an employer’s right
to communicate with employees. The groups, which filed suit in
U.S. District Court for the District of Columbia, say they collectively
represent millions of employers and human-resource professionals
throughout the United States.
OSHA, EPA & DOT Compliance/Training
ComplyNet Corporation
Dealer Bond Program
Ensure Agency
Collections
Springer Collections
Check Guarantee/Credit Card Processing
FIS / Certegy
Disability Income Insurance & Section 125
Cafeteria Plans
American Fidelity Assurance
Fleet Fueling Program
SuperAmerica
Office Supplies
S & T Office Products
Uniforms and Linen Services
AmeriPride Linen & Apparel
Services
Hole-In-One Insurance
Hole-In-One-USA
Pre-Paid Legal, Jim Gavin
Identity Theft Shield &
Pre-Paid Legal Services
MADA Services sells a wide variety of
products directly to the dealers including
business forms, clothing and promotional
items. For a full review of options, contact
your sales representative at 651-291-2400
or go to www.mada.org
January 2015 / Page 7
200 Lothenbach Avenue
West St. Paul, MN 55118
ADVOCACY • EXPERTISE • EDUCATION • COMMUNICATION
MADA NEWS • JANUARY 2015
FAQ
Q: The Buyers Guide window stickers that we put on used cars - I heard that the federal
government is changing the look and content of this required form. I don’t want to get stuck with a
bunch of obsolete forms. Should I start working my supply down now?
A:
Not yet. The Buyers Guide discloses whether a dealer is offering to sell a used car with a
warranty or “as is.” If the vehicle comes with a warranty, the Buyers Guide discloses the terms and
conditions and the vehicle systems that the warranty covers.
It’s true that the Federal Trade Commission (FTC) is looking to change the form which has been
around since 1985.
The biggest proposed change concerns vehicle history reports - CARFAX, AutoCheck and the like.
The FTC plans to require dealers who obtain a vehicle history report to indicate that fact on the
Buyers Guide and provide a copy to consumers upon request.
This is all “proposed” right now; more changes could well be in the offing. Any final rule with
mandatory compliance is almost certainly at least a year away. The MADA forms department is
closely monitoring the FTC action.
Scott Lambert, Executive Vice President • 200 Lothenbach Ave. • West St. Paul, MN 55118 • (651) 291-2400 • 1-800-652-9029 • FAX (651) 291-2894
Education
Fax Registration
FAX REGISTRATION TO: 651-291-2894
Denise Anderson denise@mada.org
Title Basics
The Certified
Title &
Registration
Program
Class Options
Circle Preferred Date
Title Basics – Minneapolis
March 10, 2015
Location
Doubletree by Hilton Park Place
Class Options
Sales Tax
Circle Preferred Date
Location
9:30 a.m. - 11:30 a.m. $199
9:00 a.m. - 10:00 a.m. $129
New to Fleet
10:30 a.m. - 12:30 p.m. $129
March 10, 2015
March 10, 2015
Minnesota Titles and Transfers March 10, 2015
1:00 p.m. – 3:00 p.m. $129
1500 Park Place Blvd
Minneapolis, MN 55416
Doubletree by Hilton Park Place
1500 Park Place Blvd
Minneapolis, MN 55416
Name__________________________________________ Title____________________________
Name__________________________________________ Title____________________________
Dealership______________________________________ Customer ID #____________________
Address________________________________________________________________________
Phone______________________________ E-mail______________________________________
For Information on these classes or to register online go to www.mada.org/training