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Dealers’ Choice SPRING 2010 Volume 50, Issue 1 O F F I C I A L P U B L I C AT I O N O F T H E T E X A S AU TO M O B I L E D E A L E R S A S S O C I AT I O N Frank N. Boggus 2010 10 TADA L Legend Fr ank N. Boggus Earnest A. Kinsel Joe Bob Kinsel, Sr. Joe Bob Kinsel, Jr. Craig Kinsel The Legacy of Leadership The Kinsel Family Beaumont, Texas TADA Dealers: Trust the Energy Experts at APPI As the endorsed energy consultant for the Texas Automobile Dealers Association (TADA), APPI can assist your dealership with all of your energy needs, including: • Electricity Procurement • Supplier Contract Negotiations • Demand Side Services • Facility Audit • Lighting Redesign/Retrofits • Demand Response Programs For the past eight years, APPI has been trusted by TADA as their endorsed provider of energy consulting services. APPI has served over 2,500 clients and managed over 2.2 billion kWh for businesses across the country. Join the hundreds of TADA dealers who work with APPI by calling 800-520-6685 today. 224 Phillip Morris Dr. • Suite 402 • Salisbury, MD 21804 800-520-6685 • wwwappienergy.com Dealers’ Choice O F F I C I A L P U B L I C AT I O N O F T H E T E X A S A U T O M O B I L E D E A L E R S A S S O C I AT I O N The Dealers’ Choice is a publication of Newsletters Ink and is the official publication of Texas Automobile Dealers Association. The Dealers’ Choice is published 4 times per year by Media Communications Group, Inc. The statements and opinions expressed herein are those of the individual authors and do not necessarily represent the views of Dealers’ Choice, or its publisher Media Communications Group, Inc. Any legal advice should be regarded as general information. It is strongly recommended that one contact an attorney for counsel regarding specific circumstances. Likewise, the appearance of advertisers does not constitute an endorsement of the products or services featured by Media Communications Group, Inc. 14 Donna Norton, Managing Editor 24 About the cover: 2010 TADA Legend - Frank N. Boggus. The Legacy of Leadership: The Kinsel Family, Beaumont, Texas. 15 6 2010 TADA Leadership 8 2010 TADA Board of Directors 9 2010 TADA Regions and Districts 13 Sames Motor Company, Inc. Celebrating 100 Years 14 Preventing Dealership Fraud The opportunity to commit fraud is a weakness in a company’s internal controls. 15 Social Media: What’s All the Fuss About? Social media has prompted a fundamental shift in the way we communicate. 17 Dealer Pays $1.5 Million to Settle HR Lawsuit! TADA recently endorsed KPA’s HotlinkHR to provide an automated process using easy to use software and expert advice to reduce the risk of non-compliance and lawsuits. 18 Dennis Hooks Receives the James H. Doss Award Dennis Hooks was recognized recently as the recipient of the James H. Doss Award. 24 4 20 2010 TADA Chairman’s Workshops 22 Dealers in The News 24 2009 Chamber of Commerce Community Achievement Award: Crenwelge Family 28 A Legacy of Leadership 30 Frank A. Boggus - TADA Legend: Lending a Helping Hand and Leading the Way 2010 TADA LEADERSHIP Stephen Cavender David Alderson Chairman-Elect Jim Janke Chairman Immediate Past Chairman 2010 TADA EXECUTIVE COMMITTEE Q Mary Rose Cardenas Q Q Bryan Hardeman Q Central Bill Wolters President 6 Rick Cavender Q Q David S. Houston Q Q Q South Southwest Q East Q John Zwiacher Q Northwest Tim Crenwelge Q Q West Steve Prather Q Southeast Duane Kyrish Texas Truck Dealers Chairman Mark Daniels Q Northeast Q David Schoemaker Q North Karen Phillips Executive Vice President General Counsel 2010 TADA LEADERSHIP TADA REGIONS AND DISTRICTS Chairman, David Alderson Chairman Elect, Stephen Cavender Immediate Past Chairman, Jim Janke Texas Truck Dealers Chairman, Duane Kyrish Q NORTHWEST Vice Chairman, John Zwiacher District Directors 28 Brent Brown 31 Joe Street 30 John S. Roley Q NORTH Vice Chairman, David Schoemaker District Directors 10 Tony Pack 23 Harry Patterson 22 Charlie Gilchrist 34 Sonny Morgan Q CENTRAL Vice Chairman, Bryan Hardeman District Directors 11 Tim Light 13 Bill Kliewer Q SOUTHWEST Vice Chairman, Rick Cavender District Directors 19 Jon Hill 24 Sean F. Gunn 21 Paul S. Kane 26 April Ancira Q EAST Vice Chairman, David S. Houston District Directors 2 Craig Sisk 4 Craig W. Kinsel 3 7 Robin T. Mercer Andrea Gibbs Pickens Q SOUTH Vice Chairman, Mary Rose Cardenas District Directors 17 Cary T. Wilson 20 Bob Crow 18 Milton S. Greeson, Jr. 27 Kirk A. Clark Directors At-Large Brian M. Bruckner Tom Durant Joe Chastang Erik Maund 12 David L. Brinson 14 Nancy Harper Q WEST Vice Chairman, Tim Crenwelge District Directors 16 Diane Connell 29 Doss Rogers 25 Larry Hall 32 Dennis R. Neessen Q NORTHEAST Vice Chairman, Mark Daniels District Directors 1 Joe W. Sandlin, Jr. 8 Don Herring, Sr. 9 Bob Tomes 35 Jim Snell Q SOUTHEAST Vice Chairman, Steve Prather District Directors 5 Mike Smith 15 Marvin Marcell 6 Mike Calvert 33 Donnie Buckalew 2010 SPRING 7 2010 TADA BOARD OF DIRECTORS April Ancira Southwest District 26 David L. Brinson Brent Brown Brian Bruckner, Jr. At-Large Donnie Buckalew Bob Crow Tom Durant At-Large Charlie Gilchrist Milton S. Greeson, Jr. Craig W. Kinsel East District 4 Bill Kliewer Central District 13 Tony Pack Harry Patterson Central District 12 Diane Connell West District 16 South District 20 Donald R. Herring North District 22 Northeast District 8 Southwest District 19 Jon Hill Paul S. Kane Southwest District 21 Robin Mercer Sonny Morgan Dennis Neessen East District 3 North District 34 Joe W. Sandlin Jr. Northeast District 1 8 Northwest District 28 West District 32 Craig Sisk East District 2 Mike Smith Southeast District 5 North District 10 Mike Calvert Southeast District 6 Joe Chastang At-Large Kirk A. Clark Sean Gunn Larry Hall West District 25 Nancy Harper Central District 11 Tim Light Marvin Marcell Southeast District 15 Erik Maund At-Large Andrea Gibbs Pickens Doss Rogers John S. Roley Southeast District 33 South District 18 North District 23 Jim Snell Northeast District 35 Southwest District 24 Joe Street Northwest District 31 East District 7 West District 29 Bob Tomes Northeast District 9 South District 27 Central District 14 Northwest District 30 Cary T. Wilson South District 17 TADA Regions and Districts Q CENTRAL REGION • Vice Chairman Bryan Hardeman, Austin Director, District #11 Tim Light, Bryan 1-01-09 12-31-11 Area Directors John Allen, College Station Don Hewlett, Georgetown Allan G. Miller, Rockdale Director, District #12 David L. Brinson, Corsicana Director, District #13 Bill Kliewer, Killeen 1-01-08 12-31-10 Area Directors Harry Adams, Temple Jerry E. Miller, Temple Director, District #14 Nancy Harper, Austin 1-01-08 12-31-10 Area Directors Wayne Gloff, Clifton 1-01-08 12-31-10 Area Directors James Bagan, Austin Bill Henline, Austin Brad Elliott, Austin Director At-Large Erik Maund, Austin 1-01-08 12-31-10 Q EAST REGION • Vice Chairman David S. Houston, Longview Director, District #2 Craig Sisk, Longview 1-01-09 12-31-11 Area Director John W. Cooke, Carthage Director, District #3 Robin T. Mercer, Lufkin Director, District #4 Craig W. Kinsel, Beaumont 1-01-10 12-31-10 Area Directors Robert E. Allison, Jr., Jasper Bill Bracken, Liberty J. Drew Donalson, Silsbee 1-01-10 12-31-12 Area Directors Brian Bounds, Livingston Dan H. Fussell, San Augustine Director, District #7 Andrea Gibbs Pickens, Mabank 1-01-08 12-31-10 Area Directors Wylie Musser, Terrell Alex Harrill, Mabank Q NORTH REGION • Vice Chairman David Schoemaker, Irving Director, District #10 Tony Pack, N. Richland Hills 1-01-09 12-31-11 Director, District #22 Charlie Gilchrist, Weatherford 1-01-09 12-31-11 Area Directors Jack L. Powell, Mineral Wells Jerry Durant, Weatherford Director, District #34 Sonny Morgan, Dallas 1-01-09 12-31-11 Area Directors Jerry Griffin, Dallas Clark Richardson, Irving Director At-Large Tom Durant, Grapevine 1-01-08 12-31-10 Director, District #23 Harry Patterson, Wichita Falls 1-01-10 12-31-12 Area Directors Charles D. Brown, Gainesville Larry Slack, Bowie 2010 SPRING 9 TADA Regions and Districts Q NORTHEAST REGION • Vice Chairman Mark Daniels, McKinney Director, District #1 Joe W. Sandlin, Jr., Mt. Pleasant 1-01-10 12-31-12 Area Directors Gerald G. Bawcum, Paris Director, District #8 Don Herring, Sr., Plano 1-01-08 12-31-10 Area Directors Charles L. Fairbanks, Jr., DeSoto Jim McNatt, Denton Director, District #9 Bob Tomes, McKinney Area Directors Bob Utter, Sherman Matt Johnson, Whitesboro Director, District #35 Jim Snell, Dallas 1-01-10 12-31-12 1-01-08 12-31-10 Q NORTHWEST REGION • Vice Chairman John Zwiacher, Lubbock Director, District #28 Brent Brown, Lubbock Area Directors Frank P. Brown, Lubbock Director, District #30 John S. Roley, Littlefield Area Directors Robert E. Hall, Jayton 1-01-10 12-31-12 1-01-08 12-31-10 Director, District #31 Joe Street, Amarillo Area Directors Daniel Bradley, Amarillo Director At-Large Brian M. Bruckner, Amarillo 1-01-10 12-31-12 1-01-09 12-31-11 Q SOUTHEAST REGION • Vice Chairman Steve Prather, Houston Director, District #5 Mike Smith, Houston Area Directors W.C. Smith, III, Pasadena Brian Kelledy, Baytown Director, District #6 Mike Calvert, Houston Area Directors Jack Kendall, Houston Arlene G. Catania, Manvel Director, District #15 Marvin Marcell, Houston Area Directors Jeffrey L. Haas, Houston Kevin McGinnis, Houston Steven Wolf, Houston 10 1-01-10 12-31-12 1-01-09 12-31-11 1-01-10 12-31-12 Director, District #33 Donnie Buckalew, Conroe 1-01-09 12-31-11 Area Directors Roger Elswick, Baytown George A. DeMontrond, III, Conroe James Masten, Houston Director At-Large Joe Chastang, Houston 1-01-09 12-31-11 TADA Regions and Districts Q SOUTH REGION • Vice Chairman Mary Rose Cardenas, Brownsville Director, District #17 Cary T. Wilson, Alvin 1-01-10 12-31-12 Area Directors Mitchell M. Dale, Dickinson Rick Davis, El Campo Director, District #20 Bob Crow, Corpus Christi Area Directors Phillip Neessen, Kingsville Al Willeford, Portland Director, District #18 Milton S. Greeson Jr., Victoria Area Directors Cliff Weber, III, Cuero Mike Weber, Cuero Director, District #27 Kirk A. Clark, McAllen Area Directors Luke Fruia, Jr., Brownsville Roland F. Smith, McAllen 1-01-09 12-31-11 5-01-09 12-31-10 1-01-09 12-31-11 Q SOUTHWEST REGION • Vice Chairman Rick Cavender, San Antonio Director, District #19 Jon Hill, Brenham Area Directors W. P. Clark, Jr., Lockhart Jeffry Michelson, Lockhart 1-01-10 12-31-12 Director, District #21 Paul S. Kane, San Antonio 1-01-08 12-31-10 Area Directors Dan Ramirez, Rio Grande City Director, District #24 Sean F. Gunn, San Antonio 1-01-09 12-31-11 Area Directors Dwight A. Koepp, LaVernia William B. Cavender, Jr., San Antonio Hunter Hale, San Antonio Rob Sabom, San Antonio Director, District #26 April Ancira, San Antonio 1-01-10 12-31-12 Area Directors Christie L. Kahlig, New Braunfels Robert M. Cavender, San Antonio David Kemp, Schertz Q WEST REGION • Vice Chairman Tim Crenwelge, Kerrville Director, District #16 Diane Connell, Copperas Cove 1-01-08 12-31-10 Area Directors Scott T. Wilson, Boerne Lee Hoffpauir, Lampasas Trey Ratliff, Llano Gregory Bruner, Stephenville Director, District #25 Larry Hall, Abilene Area Directors Mark Hanner, Baird Ray Lubke, Brady 1-01-09 12-31-11 Director, District #29 Doss Rogers, Midland 1-01-09 12-31-11 Area Directors Sandra Wheeler Evans, Stanton James E. Wheeler, Stanton Director, District #32 Dennis R. Neessen, El Paso 1-01-08 12-31-10 Area Directors Steve Fox, El Paso Clay Lowenfield, El Paso 2010 SPRING 11 The power of the right people beside you In these uncertain economic times it's more important than ever that you have a trusted advisor by your side. One who has been working with and understands the needs of the automotive industry in Texas. All the Planning in the World Can Never Prepare You for the Unexpected From expansion to recession, Lane Gorman Trubitt, L.L.P. has been a trusted leader helping dealerships in the Lone Star State weather economic climates for almost 60 years. LGT - the power of the right people beside you. www.lgt-cpa.com Dallas, TX 75204 Toll Free 877.231.7500 Fax 214.871.0011 Auto TeamAmerica Our attorneys can help you steer through the labor laws affecting the car business. Since 1943, we have been the labor lawyers of choice for automobile dealers. Fisher & Phillips is dedicated to helping the members of the Texas Automobile Dealers Association with their labor and employment legal matters. We’re driven to help you succeed. Fisher & Phillips attorneys at law LLP Solutions at Work® Representing employers nationally in labor, employment, civil rights, employee benefits, and immigration matters Dallas Thanksgiving Tower 1601 Elm Street Suite 4343 Dallas, Texas 75201 phone (214) 220-9100 fax (214) 220-9122 Houston Two Allen Center 1200 Smith Street Suite 620 Houston, Texas 77002 phone (713) 292-0150 fax (713) 292-0151 www.laborlawyers.com Atlanta • Charlotte • Chicago • Columbia Dallas • Denver • Fort Lauderdale • Houston • Irvine Kansas City • Las Vegas • Louisville • New Jersey New Orleans • Orlando • Philadelphia • Phoenix • Portland, ME Portland, OR • San Diego • San Francisco • Tampa 12 Sames Motor Company Celebrating 100 Years L aredo Auto Sales Company was founded in 1910 by William J. Sames and J. R. Moore, a flourishing partnership that dealt in brokerage, wholesale, farm and city property, and onion growing. They ordered their first three Ford Model T vehicles and sold them from a grain warehouse behind their wholesale headquarters. By 1914 a new location was needed for the growing business, and they then moved to a new location and sold Ford, Cadillac, Overland, Willis and Dodge automobiles. After the end of WWI and the soldiers returned, business began to boom. Ford, Mr. Sames, and Mr. Moore agreed then that the dealership would sell Ford exclusively. The partnership dissolved in 1925 with the Sames family owning the dealership. In 1926 the dealership sold 1085 cars. The dealership continued to thrive and grow under a succession of Sames and family members, including W.J.’s son Harry Sr., grandson Harry Jr., greatgrandson Hank, to the fifth generation of ownership and first female, Evelyn Sames Cain. Today, Sames Auto group sells over 2,500 new vehicles and an excess of 3,500 used vehicles a year. Sames Auto Group • is an automotive business selling Ford, Lincoln, Mercury, Mazda and Honda products • created three Sames Budget Center used car locations in Laredo, TX • expanded into Corpus Christi, TX with Sames Budget Center and Sames Crow Ford in 2004 and opened Sames Red Barn Motors in Austin, TX in 2007 • provides a state of the art collision center and a Quick Lane in Laredo, and owns an inhouse finance comd pany, Thunderbird Auto Finance p • Sames Auto Group has “kept it in the family” amidst wars, recessions, and manufacturer downturns. In recent years, many family dealers have sold off their dealerships to large chains such as Auto Nation. Throughout the years and through many changes Sames has remained a family owned dealership. Since 1910, Sames has offered quality automobiles to the people of Laredo, South Texas, Corpus and Austin. “I came into a set of values that were passed on through my ancestors. I operate my business on those very same values. My great-grandfather, grandfather and father were all very good, honest businessmen and ethical people. If our customers had to describe Sames Auto Group in one word, it would be ‘honest,’” tells Hank Sames. Sames Auto Group provides over 400 jobs, and considers its staff a family. This tradition has made for a loyal employee base and makes Sames a great place to work. “They’re our business partners here and it’s always been that way. My father started one of the first profit sharing plans at a dealership. Plus, we have excellent benefits, in addition to a year-end bonus plan for our management staff. That’s somewhat unusual in the car business” Hank Sames says. Sames Auto Group promotes education and participates in numerous charitable programs and events including the Ford Salute to Education, Sames Scholars Program, and the Driven for Success pro- gram gram. Hank Sames III was the founder of Sames Scholars and the Driven to Success programs and these education based initiatives are the only ones of their kind in South Texas. He is a co-founder of the Jalapeno Festival, a community event showcasing Hispanic music artists attracting thousands of enthusiasts across Texas and beyond. Evelyn Sames Cain continues to the tradition of giving as chairperson of the Jalapeno Festival. Evelyn conceived and implemented a unique program, “Mission: Give Laredo”, that benefits Bethany House, a local homeless shelter and is developing the Tires for Life recycling and wellness program in conjunction with the City of Laredo. I n 2010, Sames Motor Company proudly celebrates its 100th Anniversary. With a calendar of great events for its team and community and Ford products winning top accolades as the North American car (Ford Fusion) and truck (Transit Connect) of the year, it is shaping up to be a year to remember. Q 2010 SPRING 13 Preventing Dealership Fraud – Outline the circumstances under which purchases and/or decisions are approved in advance. • Budgets – Establish and prepare on a department-by-department basis. • Passwords – Should never be shared or written down; should be of appropriate length and consist of a combination of letters, numbers, and special characters. Passwords should be changed periodically—typically every 90 days. • Document Control Numbers – Prenumber invoices and receipts and account for every number. • Computer Backups – Back up data on a regular basis and periodically verify the reliability of the backup. • Job Rotation – Rotate jobs periodically to ensure adequate coverage in the event of employee turnover, as well as to change who is handling sensitive information on a regular basis. • Drug Testing – Conduct before an individual is hired, upon promotion, or on a random basis. An individual with a drug problem will need money to purchase drugs. T he opportunity to commit fraud, plainly stated, is a weakness in a company’s internal controls that has been exploited by the fraudster. Whenever fraud occurs, there are three aspects prevalent—the incentive to commit fraud, the rationalization of one’s actions, and the opportunity to commit fraud. While incentive and rationalization are difficult to control, management can prevent many opportunities for fraud by monitoring and updating its system of internal controls. Preventive controls are put in place before a transaction is entered into the company’s books, and include: 14 • Credit Check – Conduct before an individual is hired or promoted into a more sensitive position. If hiring for a financial position, be wary of hiring an individual with bad credit—he/she will be coming into the company with incentive to commit fraud. • Segregation of Duties – Ensure no one individual has complete control over any one process. • Policies and Procedures – Address appropriate behavior, expectations, and consequences. • Spending Limits – Assign based on the individual’s role within the company. Thresholds for a second or third reviewer should be defined in company policies and procedures. • Preapprovals/Required Approvals If you implement one new control, let it be the perception of increased detection and the assurance that the company is willing to impose consequences appropriate to the situation, up to and including prosecution. Q This article is adapted from A Dealer Guide to Preventing and Detecting Fraud (BM42), the first publication to be delivered to members online upon the launch of NADA University in February. Available only through NADA University’s Resource Toolbox, all publications will include an executive summary, electronic routing to the staff you choose, and online tracking to ensure the material was reviewed and understood. There are various advantages for dealers who engage in social media, but creating, implementing, and maintaining a social media strategy does take serious work. These new channels can be effective business tools when used properly, but they don’t create instant results. It takes months of dedication to build your network and establish a reputation. A dealer’s commitment to social media should be well aware of this reality. Social media management may or may not be right for your dealership. This article discusses relevant topics to consider before deciding on whether to enter your dealership in the social media world. Social media management is all about engagement. Its function isn’t to create a direct sale through traditional advertising methods. The purpose of social media management is to create a two-way conversation and a long-term relationship with your customers and the community. These channels allow dealers to engage and respond to customer feedback. Social media gives offers the opportunity to listen to your customers, so that dealership can tailor to its customers needs. Social Media: What’s All the Fuss About? BY COURTNEY SAMES Social media has prompted a fundamental shift in the way we communicate. Its explosive growth and reach are unlike any other media in history. It took the internet 4 years before reaching 50 million users while Facebook added 100 million users in less than 9 months. M illions of people engage with friends, family, organizations and businesses on a daily basis via their social media accounts. One can connect with a long lost friend on Facebook or network with a business affiliate on Twitter. This social media phenomenon has created exciting opportunities for car dealers looking to engage with their customers and communities. Many dealers are signing onto these social networking platforms; however, not all are clear on the tenants of social media management and how to move forward. Branding plays a crucial role in social media management. It’s essential to clarify your brand before entering these websites. Identifying your brand, your dealership’s message and your company’s current mission statement will help those managing your social media accounts to broadcast your dealership’s image appropriately. Your online engagement should reflect your brand and the personality of your dealership in real life. If your commercials are typically humorous and offbeat, then maintain the same personality online. If you sell luxury vehicles and want to carry out a more corporate engagement, this also works. Just be conscious of keeping your image appealing and avoid allowing your content from getting too dry. it is imperative that you carefully select an appropriate employee to take ownership and manage your social media acQ social media — continued on page 16 2010 SPRING 15 social media — continued counts. This employee should be trustworthy, internet savvy and capable of keeping up with technology trends. They should fully comprehend your brand and be able to easily translate it online. This person should be familiar with social media marketing and should have the skills necessary to create a workable strategy with attainable goals. If you decide to work with a third party vendor to create a social media strategy, this also is fine. Just make sure that you assign an internal employee to work with and learn from the vendor. It’s preferable to manage your social media accounts internally once a strategy and skilled employee are in place. Try to keep your social media employees to a select few. This will help manage your social media presence and will allow you to keep a reign on what is being published, minimizing the liability in the online and real communities. A minimum of 20 minutes a day, 4 days a week should be dedicated to your social media accounts. This time can be spread out in 5-minute intervals throughout the day. Social media duties include: researching and updating relevant content, responding to online feedback, emailing unsatisfied customers and monitoring your online reputation. Providing interesting content is key in gaining a strong social network. Posts or updates should offer valuable information like car care tips, community information, specials and relevant industry news. One to two updates a day is sufficient. Avoid from updating too often as it might overwhelm your network. Social media websites are useful to gain customers and sales, but not to sell directly to your network. If a dealership does not offer interesting content, it can easily be considered spam. Spam is something your social media strategy should target avoiding. Social media users are very sensitive to spam and will remove you from their network if they feel like you are soliciting unwanted information to them. Avoiding repetition and over exposure are two helpful approaches that will prevent you from being labeled a “spammer”. Don’t post similar links and messages over and over. Keep your content and posts fresh, original and useful to your followers. You should also make an effort to maintain a balance between the content that promotes your dealership and the content that does not. Your network will still find value in your posts, even if they do not mention your dealership, products or services. There is still much to be learned about the preferable methods and approaches to managing your social media presence so take these thoughts into consideration when planning or revamping your social media strategy. Q Learn more about social media from Erik Qualman’s Socialnomics: How social media transforms the way we live and do business or visit http://www. dealerrefresh.com/ for more relevant articles on this topic. 16 Dealer Pays $1.5 Million to Settle HR Lawsuit! (How much did you budget this year for litigation?) BY CRAIG DOWNEY Yes, you read the headline correctly. Last month The Denver Post (www.denverpost. com/business/ci_14142747) reported that a CO dealer agreed to pay $1.5 Million to settle a sex and age discrimination lawsuit. T he suit was filed by the federal government on behalf of ten former employees. The Equal Employment Opportunity Commission (EEOC) reported that employees were subjected to sex discrimination and sexually hostile work environment while employed by the dealership. It also said employees were fired because of their age and replaced with younger less experienced workers. TADA recently endorsed KPA’s HotlinkHR, the only HR management and compliance program designed specifically for dealerships. HotlinkHR provides an automated process using easy to use software and expert advice to reduce the risk of noncompliance and lawsuits. Q To learn more about HotlinkHR, please contact KPA via the website at www. kpaonline.com or call Craig Downey, at 877-964-6310. The settlement required the dealership to put discrimination training in place, post its anti-discrimination policy, provide training about anti-discrimination laws to its employees/managers, and make periodic reports to the EEOC. The EEOC has hired over 90 new investigators and in the past 60 days has settled 2 additional cases with auto dealerships making it clear that non-compliance with HR regulations will not be tolerated. TADA is concerned about our members being subject to the economic hardship and the public relations nightmare attached to a HR issue of this nature. Listed below are some steps you should take to reduce your risk: 1. Understand the law and your responsibilities as an employer. 2. Establish policies and training so all employees understand their rights and obligations. Make sure you keep complete and accurate records. 3. Consider using HR management software to automate and force compliance in the hiring, employee management and termination process. Yes it is an added expense in a tough economic climate for dealerships – but the expense is a fraction of the cost of a discrimination or wage and hour violation lawsuit. 4. Purchase EPLI (Employment Practices Litigation Insurance) coverage for your dealership. 2010 SPRING 17 James H. Doss Award Dennis Hooks was recognized recently as the recipient of the James H. Doss Award Dennis Hooks was recognized recently as the recipient of the James H. Doss Award, the highest community service award granted by the Weatherford Chamber of Commerce. The award is given to those individuals who support the community through philanthropic activities and principled business practices. T exas dealers are the bedrock of every Texas city and town. They do much more than run a business and provide essential transportation. The good works of Dennis Hooks, Jerry Durant and Charlie Gilchrist affect the lives of every person who lives in Weatherford, Texas and Parker County. Dennis Hooks is not only the winner of the Doss Award, but also the Mayor of Weatherford. He has served the city for many years as a City Councilman and is in his second term as the Mayor. Fittingly, the banquet where Dennis received his award was held in Charlie Gilchrists’ dealership. Over 350 community leaders were welcomed to Southwest Ford to honor Charlie’s fellow dealer, the Honorable Dennis Hooks. This is what Texas dealers do, in 300 Texas towns throughout the state. They give their time, talent and volunteer leadership to make Texas a better place for us all. Q ® The FEDERATED Insurance Companies Home Office: 121 East Park Square • Owatonna, Minnesota 55060 Phone: (507) 455-5200 • www.federatedinsurance.com 18 2010 TADA Chairman’s Workshops T ADA Chairman of the Board David Alderson and TADA Legislative Chairman John Zwiacher travelled the state in February and March to deliver “The State of the Association Report” to over 250 Texas dealers. Alderson, a third generation Lubbock dealer, outlined the resources and commitment required of TADA members to maintain a unified voice in Austin and Washington, D.C. He discussed dealers rights, the importance of strong relations with the manufacturers and distributors and the critical role that political involvement serves in being a franchised dealer. He further discussed the landscape of the dealer body in the current economic downturn and the re-structuring of Texas dealerships that has occurred in order to maintain the viability and the profitability of Texas dealers. Legislative Committee leader John Zwiacher outlined his plans for the upcoming session of the Texas Legislature and reviewed the positive results of the 81st Session in 2009. Chairman Zwiacher presented the strategy for his committee and the plan to involve dealers statewide as issues develop in the off-year. Texas Motor Vehicle Board Chairman, Victor Vandergriff spoke at the Dallas/Fort Worth Chairman’s Workshop, providing dealers with his insight into the successful launch of the revitalized Texas Department of Motor Vehicles and his experience to date as the leader of the nine member Texas Motor Vehicle Board. TADA staff also participated in the seven city tour of the state as Executive Vice President and General Counsel Karen Phillips discussed current legal and regulatory issues affecting dealers, VP/CEO of Legislative Affairs Rob Braziel joined John Zwiacher in the legislative and government relations update and President Bill Wolters provided an industry overview. The overall theme of the discussions centered upon the ability of Texas dealers to respond in a positive way to today’s many challenges and to prepare for the recovery that will be experienced in the coming months. The elected leaders of TADA headed by dealers such as David Alderson and John Zwiacher are already working on behalf of 1300 dealers statewide to ensure their interests are served and their rights under state law are preserved. Q 20 TADA Business Forms • TADA Approved • Special Member Pricing • Buy Direct From TADA SAVE MONEY!!! Our survey of Texas dealerships revealed significant savings with TADA business forms. Examples: Buyer’s Guides .................... 31% Below Average Cost Odometer Statements .......... 33% Below Average Cost E E L MP SA L MP SA E L MP SA E L MP SA Buyers Guide TADAEBG1 Odometer Disclosure Statement for Vehicle Sales TADA-OD-1 Application For Employment TADA001 Motor Vehicle Buyer’s Order TADA013B These and many more forms are available at www.tada.org or call 512-476-2686 DEALERS IN THE NEWS Community Involvement Texas auto dealers are local businesses that are often family owned and operated. However, franchised new car and truck dealerships aren’t simply a business. Dealerships are an integral part of our society whose scope extends to schools, hospitals, non-profits, chambers of commerce, libraries, neighborhood parks and nearly every other community cause in existence. Listing the endless support that Texas dealers provide to their communities would not be a simple task. The reach of auto dealers in their local, state and national communities has been wide and deep for decades. In this issue of Dealers’ Choice, we have highlighted several of our member’s contributions and participation in their community. Bob Tomes, President of Bob Tomes Ford Lincoln Mercury, McKinney and Alan Mulally, President and CEO of Ford Motor Company. Bob Tomes Recognized by Ford Motor Company Bob Tomes, President of Bob Tomes Ford Lincoln Mercury in McKinney, Texas, was chosen by the Ford Motor Company as a nominee for the 2010 Salute to Dealers award. Bob and his wife, Barbara, were recognized in Orlando, Florida at Ford’s Salute to Dealers reception held for the 2010 nominees. Salute to Dealers is a company-wide initiative that recognizes Dealer Princi- pals who generously work to improve the lives of those in need in their communities. Tomes was one of 69 nominees from 31 states and two countries for the tenth annual award. Nominations are submitted by Ford Motor Company’s regional managers. Q TADA is very proud of the on-going service and community achievements of our members. We want to publish your dealership’s story to share with your fellow members. To be included in a future Dealers’ Choice issue, please send your information to TADA or contact Donna Norton at dnorton@tada.org or call 512-476-2686. 22 2009 Chamber of Commerce Community Achievement Award Crenwelge Family F or anyone who has ever traveled to Fred-ericksburg, Texas, you know what a jewel of a city lies in the Hill Country of Texas. Whether it’s for the famous Stonewall peaches, the wineries, the Sunday House B&B’s, the Nimitz Museum, the festivals, the music, the unique shops, the incredible restaurants, or the old world architecture, customs and hospitality, Fredericksburg is m a special place that thousands of visitors from across America enjoy year after year. Fredericksburg is also one of those 300 Texas towns that has franchised new vehicle dealerships. The Crenwelge family of dealerships has been in Fredericksburg since 1927 and the Immel family since 1969. b businesses and visitors of Fredericksburg, th the Crenwelge’s have also been a driving fo force behind the civic, governmental and ch charitable fabric of central Texas. Milton and Mickey’s older son Tim, wh who has dealerships in nearby Kerrville, wa was the youngest City Councilman in the his history of Fredericksburg, as well as its you youngest Mayor. As the recent recipients of the Chamber of Commerce Community Achievement Award, Mickey and Milton Crenwelge were recognized for their devoted commitment to their community and to their fellow man. Mickey Crenwelge Mickey and Milton Crenwelge, more than any of the other German families which immigrated to Fredericksburg in the late 1800’s, have helped make this quaint Texas treasure a thriving part of the Hill Country landscape. Community Achievement Award winner Mickey Crenwelge was born in Gillespie County and is a native of Fredericksburg, she is a member of St. Mary’s Catholic Church. Crenwelge Motors is now in its third generation of family ownership with son Jon upholding the family tradition in Fredericksburg. As in family owned and operated dealerships all across Texas, Crenwelge Motors is much more than a business. Besides providing essential transportation to the citizens, She attended public school in Fredericksburg and graduated from Fredericksburg High School. After graduation, she studied the art of dance in Dallas, Houston and San Antonio, Texas. She was a teacher and a member of the National Association of Dance and Affiliated Artists of America. firs encounter with the Chamber of ComHer first m merce was when she represented them aas Miss Fredericksburg for several local an and out-of-town pageants. Little did she 24 know at that time that she would one day grow up to represent them as a Chamber ambassador . After she married automobile dealer Milton Crenwelge, Mickey started her own dance studio and for almost 20 years, she taught the Hermann Sons dance classes in Fredericksburg, sponsored by the Hermann Sons Lodge out of San Antonio. During those 20 years, she was the dance instructor for the famous Easter Fires Pageant, working with younger children, who portrayed the hill country bluebonnets, and the high school students who portrayed the other beautiful wild flowers of the local country side. She also helped organize and conduct an area baton twirling competition for the Gillespie County Fair Association as part of its night time show at the fair. She trained the contestants, competing for “Miss Rural Electrification” for state competition. One contestant from Comfort won state and another from Harper went on to win the national title in California. She was involved in the festivities which brought Chancelor Conrad Adenhauer of Germany to Fredericksburg to be honored by President Lyndon Johnson and Lady Bird Johnson. She is a charter member of the Women’s Auxiliary of Hill Country Memorial Hospital, which helped raise funds for its opening in 1971. She has been a member of the Jaycee’s Women’s Club and the Fredericksburg Music Study Club serving both as its Secretary and President. She is a member of the Gillespie County Historical Society and has served on its historical board. She was involved in several functions including Founder’s Day, Christmas Tour of Homes and Stars of Texas luncheon. In earlier days, long before tourism was what it is today, she served as a tour guide and docent when the society hosted the Garden Clubs from Dallas, Houston and San Antonio, arriving in chartered buses to view the historical homes in Fredericksburg. Active in helping plan Fredericksburg’s 125th Anniversary celebration, she was the folk dance director in the live pageant and taught 15 couples two dances, one called the Spirit of the Town, a Virginia Reel and the other was a courtly dance depicting the days of the 1890’s inside the Nimitz Hotel Ballroom. This accomplished woman has also served on the Board of the Market Square Redevelopment Commission since its inception in 1986. She worked as a Co-Chairman of the History Walk Committee, raising funds for the Beautification of the area in back of the Vereins Kirche. She was also in charge of the booth and coordinated volunteers whenever functions were held to sell brick name pavers. She has worked with the Fredericksburg Food and Wine Fest patron’s party luncheon for fifteen years. She is a member of the Hill Country and State Cattle Women’s Association, and the Women’s Auxiliary of Sheep and Goat Raisers Association. Both organizations’ goals are to promote our Agricultural Industry and both raise funds for scholarships awarded to eligible students each year. One can certainly say that she has been involved in and played many roles in the community, but for those of us that know her well, we know the role which is most important to her is the role of wife and mother. She loves her family above all else and there is nothing she wouldn’t do or sacrifice for them. Q Milton Crenwelge This award winner literally grew up in his father’s auto service station business. He was born in the house attached to his father’s first business, “Tourist Park Service Station” at Q crenwelge — continued on page 26 2010 SPRING 25 crenwelge — continued the entrance of the city’s first park. By the time he was 10 years old, he was helping out in the family business after school by filling gas, checking tires and washing windshields at their second location called “Fredericksburg Drive-in Station” at the corner of E. Main and S. Llano Street. in the U.S. Army, serving one year in San Antonio and one year in Germany. After his military duty, he returned to Fredericksburg to join his father in the DeSoto-Plymouth automobile business he had grown up in. In 1956, he received his formal automotive training with Chrysler Corporation in Detroit, Michigan. He attended and graduated from St. Mary’s High School in Fredericksburg and received his business and accounting certification from Durhams Business College in San Antonio. After the death of his father, Ruben H. Crenwelge, on December 30, 1961, he became the franchised Plymouth dealer of the family business in 1962. He was subsequently awarded Jeep, Chrysler, AMC, Plymoth, Dodge and Chevrolet Dealerships. In 1953, our recipient was inducted During these years as a business leader in our communit y, our recipient has served our community, his church and automotive profession in many different capacities. As a young man, he was active in the Fredericksburg Jaycees. He is a member of the Chamber of Commerce and has supported its various projects and fundraisers throughout the years. He served as president of the St. Mary’s Church Council and it’s School Board. As a member of the Fredericksburg Lions Club, he has served as its president 3 times. He currently ser ves on the Hill Country Memorial Hospital Foundation Board. He has served as an Area Director of the Texas Automobile Dealers Association, Director of the Texas Chrysler/Plymouth and Jeep advertising Boards and the Chrysler Dealer Council. His employees have earned him numerous awards from the automotive industry including the “Best of Class” award several times at his General Motors store and both of Chr ysler Cor poration’s highest awards, its “Award for Excellence” and 5-Star Award continuously for the past 40 plus years at the Chrysler/ Jeep dealership. His dealerships provide jobs for 60 to 80 people in the area and these businesses have and continue to support countless organizations in our community: The Boy and Girl Scouts, the Gillespie County Historical Society, the Gillespie County Youth 4-H and FFA livestock sale, Volunteer Fire Dept., Admiral Nimitz Center, Hospital. In fact, many young kids learned how to drive in one of the dealership’s vehicles as they provided Driver’s Education vehicles for over 20 years to Fredericksburg, Kerrville, Harper and Llano. Q 26 2010 Houston Automobile Dealers Association Officers From Left to Right: Cary T. Wilson, Chairman, Ron Carter Autoland, Alvin; Virgil M. Skinner, Jr., Vice Chairman, Southwest Infiniti, Houston; Rocky McCullough, Chairman-Elect, Goodson Auto Group, Houston; Arlene Catania, Secretary-Treasurer, Southern Ford, Manvel; Wyatt Wainwright, President, HADA; Mac DeLaup, Immediate Past Chairman, John Eagle Honda of Houston, Houston. Accept Checks with Confidence We can customize a program for your speci¿c needs to help increase sales, reduce overall processing fees and eliminate risk and fraud. 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Nineteen members of today’s TADA Board of Directors are second, third and fourth generation members of the Association’s Board. Our look back into the leadership history is 30 years. Two of the most remarkable examples of this legacy are the Smith and Kinsel families. Since 1985, there has been a member of the W.C. Smith family on the TADA board. Father W.C. Smith served as a director in his Houston District from 1985 to 1991, son Charles actually preceded his father on the Board by one year and served both as a Director and a Regional Vice-Chairman from 1984 to 2000. Mike Smith, another of W.C.’s sons, began his Board service in 1989, and has been elected for a new term beginning this year in his third TADA District. Yet another son of W.C. Smith, Bill, just completed two full three year terms on the Board of Directors in December of 2009. This remarkable family has performed, in total, almost 40 years of leadership on 28 the statewide Board and is entering the 25th consecutive year of service to the Association and to Texas dealers. When Ernest A. Kinsel became Chairman of the TADA Board in 1952, he had no idea how much pressure he was creating three generations later for his great-grandson Craig. Craig Kinsel, currently in his second term on the Board, has been preceded by three generations of TADA Chairmen. It just doesn’t get any better than that for TADA, and Craig is the mirror image of the quality, character, and leadership skills of every preceding family member. After greatgrand father Ernest led TADA in 1952, his grandfather, Joe Bob Kinsel Sr., was Chairman in 1962, and his father Joe Bob Kinsel Jr., today’s TADA Legal Defense Fund Chairman was Chairman of the TADA Board in 1991. With every generation before him achieving the position of Chairman of the Board, young Craig is highly motivated to never miss a Board meeting. The Smith family with dealerships in the Houston metroplex and the Kinsel family in Beaumont and the Golden Triangle are certainly a key ingredient of the success of this association, but there are many others whose family members before them were great leaders of TADA. Incoming Chairman for 2010, David Alderson, was preceded in that position by his grandfather W.G. Alderson, in 1948. Chairman-Elect for 2010, Stephen Cavender and Vice-Chairman Cavender ender, Vice-Chairman, Rick Cavende y in San Antonio, follow their father, Jimmy, who was TADA Chairman in 1982. Lubbock Vice-Chairman John Zwiacher’s father-in-law, John Scoggin, was TADA Chairman in 1977. Newly elected Director for her San Antonio district, April Ancira, continues the legacy of leadership established by her father Ernesto Ancira, TADA Chairman of the Board in 2007. Tarrant County Director Tony Pack’s father, Sam Pack, led TADA as Chairman in 2008. Doss Rogers the Director for the Midland-Odessa district was preceded on the Board by his father Bill Rogers, TADA Chairman in 1976. Austin dealer Nancy Harper’s father, Charles Nash, was the leader of the TADA Board in 1978. Sean Gunn from San Antonio is the grandson of 1961 TADA Chairman of the Board C.C. “Pop” Gunn. Conroe’s Donnie Buckalew is the son of 1985 TADA Chairman Don Buckalew. Charles D. Clark, Kirk Clark’s father, served on the Board of Directors in the early 60’s and was Vice Chairman from 1975-1978. He was also the author of the TADA Code of Ethics. The Legacy of leadership continues with TADA Directors whose fathers preceded them as members of the TADA Board; Milton Greeson Jr., and his father Milton S. “Bully” Greeson from Victoria; Tim Light and his father Tom from Bryan; Andrea Gibbs Pickens and her father Andrew Gibbs from Mabank; Joe Sandlin, Jr., and his father Joe Sandlin Sr., from Mt. Pleasant; and Jim Snell and his father Don Snell from Dallas. New Board member Bob Tomes from McKinney and his father-in-law, Bill Utter Sr., who represented Denton. From every corner of the state, representing every make and size of dealership, these great leaders have kept our association intact and moving forward in a way that serves every dealer in every dealership throughout Texas. TADA is grateful for this legacy of leadership just as we are blessed to have thirty three Board members in their first generation of service to begin new legacies of leadership for the franchised dealers of Texas. Q A Legacy of Leadership W.C. “Smitty” Jimmy Charles Smith Stephen Cavender Sam Bill Rick Mike Joe Sr. Ernest A. Joe Jr. W.G. David Bill Don Donnie Bob Tomes Bill Sr. Utter Nancy Charles Charles D. Kirk Buckalew Harper Nash Alderson Clark Joe Bob Jr. Craig Kinsel Jim Sandlin Tony Pack Joe Bob Sr. Snell Don Ernesto April Ancira Doss C.C. “Pop” Sean Milton Jr. Milton “Bully” Sr. Tom Tim Andrew Andrea John Rogers Greeson Gibbs Pickens Gunn Light John Scoggin Zwiacher 2010 SPRING 29 Frank Boggus - 2010 TADA Legend Lending a Helping Hand and Leading the Way W hen Lewis Boggus moved into his Harlingen neighborhood in the mid 1930’s he happened to buy a house next door to the family of Henry Butt. Little did these two gentlemen realize that over the next 75 years they would build iconic Texas business empires and become synonymous with the thriving lower Rio Grande Valley. Two youngsters from these families who were neighborhood playmates were Frank Boggus and Charles Butt. Charles Butt is today the CEO of the family owned HEB food store chain and Frank Boggus is the patriarch of the Boggus family dealerships in Harlingen and McAllen. As their careers and businesses grew and prospered so did the Valley. Each succeeding generations making their mark and providing benefit to their communities and to Texas. Frank Boggus is a giant in the automobile industry and throughout his life has blessed our state through his leadership and good works. Frank Boggus’ influence in education, medical services, retailing, banking and economic development along with his contribution as a community volunteer and role model for youth is unparalleled. Born in Brownsville, Frank Boggus has spent his entire life in the Texas Rio Grande Valley. His integrity, character and leadership skills were developed on the football field as a halfback for the Harlingen Cardinals, on the campus of Texas A&M University and in the United States Air Force where he served as a 1st Lieutenant. The stadium where Frank scored touchdowns for the red and white is today J. Lewis Boggus Stadium. Frank went from Harlingen high school student to eventually become President of the Harlingen Independent School District. He went from salesman in his fathers’ Ford dealership to President of the Harlingen Chamber of Commerce, from playmate of Charles Butt to Chairman and life member of the Salvation Army Advisory Board, founder of the Boggus Education Pavilion at Valley Baptist Medical Center, the Harlingen Boys and Girls Club and the Ronald McDonald House for which his daughter Barbara Sue Tucker was the building Chairman. If you were to ask Frank Boggus for his greatest achievement it would be his marriage to his Harlingen High School sweetheart Peggy Jean Long. If you were to ask TADA that same questions it would be having Frank Boggus’ son, Bob Boggus as Chairman of the Board of the association in the time of transition when he changed the course of history for all Texas dealers. If you ask the folks in south Texas for Frank Boggus greatest achievement it would be his recognition as Border Texan of the Year for 2010 which he received in March at a dinner with 1,500 Rio Grande Valley dignitaries. Following in the footsteps of former Border Texans of the Year including his childhood friend, Charles Butt, Senators Lloyd Bentsen, Kay Bailey Hutchison, Phil Gramm and John Cornyn as well as Texas Governors Rick Perry and George W. Bush, Frank Boggus has spent his entire life putting others needs ahead of his own, lending a helping hand whenever asked and leading the way for Texas and Texans. For these reasons and so many more Frank Nelson Boggus is a TADA Legend. 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Nokes, P.C., CPA, CVA .......................................Page 20 Finance & Insurance Development First Innovations, Inc. ..............................................................Page 5 F&I Training/Products American Financial & Automotive Services, Inc. ........................................................Page 31 & Page 35 Foresight Services Group .......................................................Page 2 Insurance American Fidelity Assurance................................................Page 32 Federated Insurance ..............................................................Page 18 The Midlands Companies .....................................................Page 17 Texas Mutual Insurance Co. .................................................Page 34 Texas Auto Dealers Self Insurers Group .......................................................................Page 30 Labor/Employment Attorneys Fisher & Phillips LLP ..............................................................Page 12 Sales Training Foresight Services Group .......................................................Page 2 Service Contract First Innovations, Inc. ..............................................................Page 5 Transportation/Internet ShipCarsNow. ........................................................................Page 23 Uniforms & Facility Services UniFirst....................................................................................Page 16 Utility Consultant APPI ...........................................................................................Page 3 34 Drive new profit in your dealership. New profit center t Increase CSI t Maximize customer loyalty Texas Automobile Dealers Association P.O. Box 1028 Austin, TX 78767-1028 PRSRT STD U.S. POSTAGE PAID SALT LAKE CITY, UT PERMIT NO. 508 THIS MAGAZINE IS DESIGNED AND PUBLISHED BY MEDIA COMMUNICATIONS GROUP 1.888.745.4003 REACH YOUR TARGET AUDIENCE AFFORDABLY Advertise and get results with Don F. Brown, Project Manager Media Communications Group Spectrum Ink Sales & Marketing 813-914-0383| don@spectruminkpublishing.com
