NADA Director’s Update (February 2014) Here’s the NADA Director’s Update for February, which includes articles for re-publication under the NADA director’s byline. For the latest NADA Chairman’s Column, click here. NADA’s Service Provider Data Access Addendum Now Available for Download Last month, NADA’s Legal and Regulatory Affairs department issued a sample Service Provider Dealer Data Access Addendum (“Addendum”) and cover memo for dealers to use with their third party service provider vendors. This follows a memo sent last August from NADA to all members that contained an overview of the primary regulatory issues surrounding dealer data, numerous practical tips for dealers to consider when protecting their data, as well as samples of the contract provisions required under federal law when a dealer wishes to allow access to dealer data with a third party service provider. The Addendum is now available to dealers as a Word document at www.nada.org/dealerdata. Enroll Today in NADA’s Dealership Workforce Study http://www.nadafrontpage.com/Enroll_NADA_Dealership_Workforce_Study_2014.xml Stay ahead of the competition. Participating dealerships will receive two complimentary reports designed to improve recruiting and hiring decisions. A major challenge facing new-car and -truck dealers is attracting and keeping talented employees. To assist dealers with this task, NADA offers the Dealership Workforce Study, now open for enrollment to NADA and ATD members. There is no cost to participate. Participating dealers will receive a complimentary: 2014 Dealership Workforce Study Basic Report, a custom report that compares the individual dealership’s compensation for 60 job positions, employee benefits programs, hours of operation, work schedules, and retention and turnover to the aggregated data of other participating dealerships, both regionally and nationally; and 2014 Dealership Workforce Study Industry Report, which provides an overall industry-wide analysis of the aggregated DWS data, including hiring and retention trends, demographics such as generational differences and the gender gap, compensation, tenure, employee benefits statistics, plus hours of operation and work schedules for all U.S. regions, as well as an economic overview of 2013 and forecast for the future. Dealers can enroll as individual dealerships or dealer groups using a secure, web-based process that involves completing a survey and uploading payroll data. Enrollment closes on April 30, 2014. Eligible dealers can enroll at www.nadaworkforcestudy.com. For more information, send an email to [email protected] or call (800) 557-6232. McConnell Ready to Lead NADA in 2014 http://www.nadafrontpage.com/Forrest_McConnell_NADA_Convention_2014.xml Although new-car dealers continue to face a host of challenges from the government and industry, Forrest McConnell, III, 2014 NADA chairman, said dealers are risk-takers and they can rely on NADA just as he and his family have done for generations. “NADA is working through some of the toughest regulatory and legislative challenges that Washington throws at us,” said McConnell, in keynote remarks at the NADA Convention & Expo in New Orleans on Jan. 27. “Many of you know that the government has been trying to impose more regulations over our $783 billion finance market. Why? Because they don’t understand our business,” he said. Eighty percent of customers come to us because our financing system is convenient and competitive. We provide credit avenues that they didn’t even know existed. NADA will keep hammering Washington that dealers don’t add to customers’ credit costs. We save our customer’s money. Period.” NADA Defends In-Dealership Financing http://www.nadafrontpage.com/NADA_Defends_In-Dealership_Financing.xml Despite an auto sales turnaround over the past year, new-car dealers still face major industry and regulatory challenges, said David Westcott, 2013 NADA chairman. “Last year, we faced a new threat to dealer-assisted financing and our business model,” said Westcott, in remarks at the 2014 NADA Convention & Expo in New Orleans on Jan. 25. “In dealership financing has been enormously successful in increasing access to auto credit, and reducing the cost for millions of Americans. Consumers overwhelmingly choose dealer-assisted financing because it’s convenient and affordable.” ATD Chairman: ‘Let’s Tackle Regulations’ http://www.nadafrontpage.com/ATD_Chairman_Dick_Witcher.xml Dick Witcher, outgoing chairman of the American Truck Dealers (ATD), urged dealers to meet with their members of Congress as “the first step in combating regulatory burdens,” and that the work of securing the future of dealerships begins with each of them. “One of the continuing challenges in the months ahead will be advancing our agenda in Washington. We have worked extensively with our elected officials to communicate our challenges and identify solutions,” said Witcher in remarks at the ATD Convention & Expo in New Orleans on Jan. 25. “And in a time of a divisive Congress—and when regulators are eager to pass on new rules and regulations—we are called to protect your interests more than ever.” Eric Jorgensen Takes the Helm as Chairman of the American Truck Dealers http://www.nadafrontpage.com/Eric_Jorgensen_2014_ATD_Chairman.xml Eric Jorgensen, president and CEO of JX Enterprises in Hartland, Wis., is the new chairman of the American Truck Dealers (ATD). He replaces Dick Witcher, chief executive officer of Minuteman Trucks in Walpole, Mass., who served as chairman for two years. “We’ve made so much headway these last few years thanks to this man here,” said Jorgensen, referring to Witcher, in remarks at the 51st annual ATD Convention & Expo in New Orleans on Jan. 27. Jorgensen urged the nation’s commercial truck dealers to continue to reach out to their members of Congress to inform them about the industry and what it does. He also highlighted the importance for dealers to be active and learn the key issues. “It’s vital that we provide continuing education for our dealers and managers,” he said. “When people have the tools they need to do their jobs, success is easily achievable.” Senate Committee Passes Bill to Cut Outdated Paperwork Mandate at Auto Dealerships http://newsmanager.commpartners.com/nadah2/issues/2014-02-07-email.html A U.S. Senate committee on Feb. 6 approved a bipartisan, NADA-supported bill that eliminates some red tape required by the Environmental Protection Agency when a new car or truck is sold. The legislation, which passed the Senate Environment and Public Works Committee, now goes to the floor of the Senate for consideration. The bill, H.R. 724, which has no known opposition, was passed by the House of Representatives early last month 405 to 0. The bill would repeal a 1977 mandate that requires dealers to certify that a vehicle complies with the Clean Air Act. A dealer is required to present this form to the purchaser of a new vehicle even though all vehicles must comply with the Clean Air Act before being sold in the United States. Additionally, a Clean Air Act certification sticker can be found under the hood of most vehicles, or in the owner's manual, making an additional certification by the dealer redundant. NADA: Rising Home Values, Residential Construction and Employment to Boost Auto Sales http://www.nadafrontpage.com/NADA_Convention_Szakaly_New_Orleans_2014.xml Increasing home values, residential housing construction and rising employment are key factors that will drive the U.S. economy this year, says Steven Szakaly, NADA chief economist. “These factors are also critical to maintaining the pace of auto sales growth, which has been an integral part of the economic recovery,” said Szakaly at the NADA Convention & Expo in New Orleans on Jan. 25. NADA predicts 16.4 million new cars and light trucks will be purchased or leased in the U.S. this year, a 5.8 percent increase from 2013. NADA Used Car Guide: Used Vehicle Prices to Slip in 2014 http://www.nadafrontpage.com/NADA_Banks_New_Orleans_2014.xml A sharp rise in the supply of late-model used cars and light trucks is expected to end a five-year run of price growth, according to the NADA Used Car Guide. Late-model used vehicle supply will be more plentiful, in large part due to an 18 percent surge in off-lease volume. The supply of units six to eight years in age, though, will continue to fall as a byproduct of the new-vehicle sales decline from 2006 to 2009. “These diverging trends will result in late-model used-vehicle prices dropping more substantially than their older counterparts,” said Jonathan Banks, executive automotive analyst for the NADA Used Car Guide, at the 2014 NADA Convention & Expo in New Orleans on Jan. 25. NADA: Used-Vehicle Price Index Remains Unchanged in January http://www.nadafrontpage.com/NADA_Used_Car_Guide_Guidelines_February_2014.xml After a slight 0.1 percent uptick in January, NADA’s used-vehicle price index remained unchanged at 124.6, tied with August 2013 and December 2013 as the third-highest figure ever recorded. The index measures the change in used-vehicle prices up to eight-years-old. “The arctic weather that impacted large swaths of the country did little to push used-vehicle prices off their expected course in January,” said Jonathan Banks, executive automotive analyst of NADA Used Car Guide, in the February edition of Guidelines, a monthly report on new- and used-vehicle sales trends and price movement. Price movement for the majority of vehicle segments fell between a tight range of -0.3 percent to 0.4 percent, with compact utility, large SUV and mid-size van prices dropping slightly, while compact car, large pickup and mid-size utility prices inched up; and mid-size car prices were flat over the month.
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