PO Box 68 • Dublin OH 43017 • Ph: 800-606-6332 • Fax: 614-889-0463 • www.kiawa.org • info@amgllcusa.com

KIAW NEWSLETTER JULY 2019

KIAW Kentucky-IndianaAutomotive Wholesalers

In the fight for access to the treasure trove of data generated by new vehicles, failure is not an option for the automotive aftermarket.

That was one of the key takeaways from a presentation at the Automotive Aftermarket Suppliers Association’s (AASA) 2019 Vision Conference in Dearborn, Michigan. Bill Long, the newly minted president and CEO of the Motor & Equipment Manufacturers Association (MEMA) [and longtime president and COO of AASA], called data access “the top must-win issue” for the automotive aftermarket.

“Some might refer to it as telematics. Some might refer to it as data ownership. Some might refer to it as Right to Repair. And in our view, at the end of the day, the goal is to ensure that motorists have the right to maintain their vehicles and have them serviced where they want and with the parts they want,” Long said.

Bill Hanvey, president and CEO of the Auto Care Association, joined Long on the stage. Long emphasized that AASA -- MEMA’s light-vehicle aftermarket division -- and the Auto Care Association are aligned in their position on data access.

“We both know that it’s going to be hard enough to win this battle period, let alone try to win it alone,” Long said. “It’s going to take all of us in the room, and not just the two of us on the stage. There are other associations and groups that are certainly in this battle.”

The Auto Care Association has been one of the most prominent. The association scored a major victory in Massachusetts with the passage of H 3757 in 2013. The legislation, which the association calls Right to Repair, paved

the way for a 2014 national memorandum of understanding between the Auto Care Association, the Coalition for Auto Repair Quality (CARE) and automakers. In the memorandum, the OEMs agreed to make the same service information and tools available to independent repair shops that they provide for their franchised dealers.

However, the 2013 Right to Repair legislation didn’t address telematics -- the umbrella term that encompasses the repair and maintenance data generated wirelessly by today’s connected vehicles. At the time, neither the automakers nor the aftermarket had a firm grasp on the definition of telematics or its potential, Long noted. The automakers have staked their claim to the data, placing aftermarket repairers at a competitive disadvantage.

Hanvey added, “We knew this battle was looming the minute we signed the [memorandum of understanding] in 2013.”

In late 2018, the Auto Care Association and CARE introduced legislation in Massachusetts that would require automakers to create a standardized “open-access platform” for telematics data in vehicles, and, starting with the 2022 model year, allow vehicle owners and lessees to access that data with a mobile device. The bill also would require the state attorney general to notify consumers that they have the right to allow independent repairers to access telematics data for the repair of their vehicles.

If the bill doesn’t make it through the state legislature, the Auto Care Association and CARE will try to put the issue on the November 2020 ballot to let Massachusetts voters decide.

Continues on page 3 . . .

Access to Vehicle Data a ‘Must-Win’ for the Automotive Aftermarket

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MISSION STATEMENT: The mission of KIAW is to advance the interests of the automotive aftermarket industry by providing benefits and services that improve business prosperity and efficiency..

The groups employed the same two-pronged strategy in 2013. However, the original Right to Repair bill passed before they could remove the coinciding ballot measure. (Voters overwhelmingly approved it.)

The groups are running ads in Massachusetts to raise awareness of Right to Repair and to educate consumers on their right to access and control the telematics data generated by their vehicles.

“We’re building on that Right to Repair brand that we built in 2013,” Hanvey said. “… The voters are very, very well-aware of the Right to Repair brand in Massachusetts.”

At the time of the AASA Vision Conference, the legislation had 55 co-sponsors. “We figure we need about 100, so we feel that we’re in pretty good shape,” Hanvey added.

Hanvey expects fierce resistance from the automakers, who have “hired a significant number of lobbyists” in Massachusetts to fight the legislation.

“We started this discussion three or four years ago by bringing all the vehicle manufacturers together at AAPEX, and we shared our desire to collaborate with the car companies on a solution,” Long said. “Their pushback was, ‘We can’t open the door to the vehicle because of the threat of cybersecurity.’”

Hanvey added: “If I’m a carmaker, my defense is, ‘Well, you guys are great. However, until you can prove that you can access that data cybersecurely, we are the best guardians of your data, Mr. and Mrs. Consumer.’”

The aftermarket’s response to the challenge is the Secure Vehicle Interface, or SVI, a series of ISO standards allowing cybersecure access to a vehicle’s data. Compatible with intelligent transportation systems, the SVI “allows cybersecure, bidirectional communication with the vehicle,” according to Hanvey.

The next step, Hanvey said, will be to develop a certificate-management system that determines what type of data and how much data a particular device can access. “So if I’m a shop, I can access certain amount of data,” he explained. “If I’m an insurance company, I can access this amount of data. If I’m a consumer, I can access X amount of data.”

Industry Support Needed

Legislation is just one part of the fight to enable consumers’ access to their vehicle data. Long urged aftermarket participants to offer their support for the cause on other fronts.

The industry also needs to prepare independent repair facilities “to treat the data securely.”

“When you download that diagnostic information onto a laptop or even a diagnostic tool in an independent repair garage, how do we ensure that it’s protected?” Long asked.

Given that there are some people in the aftermarket who still might not be aware that data access is an issue, Long said the industry needs to spread the word and raise the awareness level among industry stakeholders and consumers.

“It’s incumbent upon us in this room that we educate our staff and our consumers about not just the threat, but the opportunity that this data brings to all of us,” Hanvey added.

The aftermarket is up against some “formidable foes,” and not just the automakers, Long asserted. Cellphone providers also have a stake in the data-access fight. That’s all the more reason for the aftermarket to be engaged and unified in support of consumers’ right to control their vehicle data.

-Courtesy of MEMA Industry News

Continued from Page 1...

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While it’s true that a driver’s skills, training, and experience are key to safety on the road, there’s plenty that can be done before a vehicle leaves the garage to help a driver stay safe between Point A and Point B. Make sure all your vehicles are prepared — inside and out — for their intended use before you send employees out into traffic.

In the Cab

Ditch the distractions — Distracted driving is a leading cause of accidents, injuries, and deaths on the road. Train your drivers to refrain from using their mobile devices while operating a vehicle and avoid using communication devices (even hands-free ones) unless absolutely necessary.

Keep it clean — It’s common knowledge that a clean workspace is a safe and efficient workspace. Make sure to remove clutter that can draw a

This article is for general information and risk prevention only and should not be considered legal or other expert advice. The recommendations herein may help reduce, but are not guaranteed to eliminate, any or all risk of loss. The information herein may be subject to, and is not a substitute for, any laws or regulations that may apply. Qualified counsel should be sought with questions specific to your circumstances. © 2019 Federated Mutual Insurance Company.

driver’s attention away from the road or impede the use of pedals. Make sure windows are clean, and mirrors and back-up cameras are clear.

Prepare for an emergency — Even a vehicle with an impeccable service record can break down, so keep an emergency roadside kit in each vehicle. Equipment recommendations include a cell phone and charger, a first-aid kit, flashlight, flares or reflectors, jumper cables, water, and blankets.

Under the Hood

Get a grip — When the rubber meets the road, your vehicles’ tires can mean the difference between disaster and safe arrival. Make sure the tire tread, inflation level, and overall tire condition are safe for use. Swap the tires with new ones if they’re getting old or worn. If you do business in a cold-weather state,

VEHICLE PREPAREDNESSmake sure your vehicles are equipped with the proper tires for the weather.

Practice constant care — Regular maintenance will help ensure that your vehicles are in proper working order. Oil changes, transmission service, and brake service are just a few of the recommended procedures. Consult a trusted technician for frequency and extent of service.

Watch for recalls — Manufacturers often send out notices when a safety recall is ordered, but taking an active role in safety is always the best policy. The National Highway Traffic Safety Administration offers a vehicle identification number look-up tool so you can check if your vehicles are under any safety recalls. Simply visit www.nhtsa.gov/recalls and enter your vehicles’ VINs.

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ASKING “WHAT MAKES YOU STAY?” "Stay" Interviews Can Improve Retentioin and Productivity

Hiring interviews and exit interviews are a very common, if not completely unavoidable,

part of any employer’s business operations. What is less known and less talked about, however, are stay interviews—even though they could be the most important interviews your organization could ever have. This begs the question: what is a stay interview?

A stay interview is simply asking your employees: “What makes you stay?” Their answers almost always prove a useful tool in employee management.

What It Means To Ask Why Employees Stay

In essence, a stay interview is a conversation between a manager and a direct report employee which explores those things that foster the employee’s decision to stay with an employer. A stay interview can also cover more discrete issues like why an employee stays within a particular department, on a project, or with a particular manager or supervisor.

Typically formal, these interviews are intended to promote open and honest dialogue with the employee in order to identify what the employer is currently doing right and uncover issues that could cause an employee to decide to leave. As a whole, stay interviews work to improve an employer’s organizational structure, develop more effective policies and procedures, and promote increased employee satisfaction, engagement, and retention.

A stay interview is intended to explore what it takes to keep an employee. The stay interview focuses on current employees that, as far as the employer knows, have not yet developed a reason to leave.

Many employers rely solely on exit interviews to fix employee turnover issues, but the information gained is often learned far too late to make a difference. The stay interview occurs before an employee can get to this point and, if done properly, reduces the chance the employee will get to the point of wanting to leave.

Why Ask “Why”?

One of the most compelling reasons for incorporating stay interviews is the positive impact that they can have on employee retention. There are high sunk costs

associated with recruiting and hiring new employees. Once a company makes this investment in a new hire and cannot retain that employee, all of those resources are essentially wasted. If this cycle happens more than a couple of times a year, the costs become astronomical for an employer.

A stay interview is an important tool in staving off this kind of turnover because it provides employers with specific, relevant, and forward-facing information that enables them to retain practices that need to be retained and fix things that need to be fixed. By identifying this information, employers are able to increase employee job satisfaction, reduce turnover, and improve employee retention.

Another benefit of the stay interview is increasing employee productivity. “A happy employee is a productive employee,” is often quoted for a reason; that’s because it is true. One of the goals of the stay interview is that it promotes employee engagement and satisfaction.

More than the typical employee satisfaction surveys and questionnaires, stay interviews are more intentional, intimate, and interactive. For these reasons, they are usually more effective. Employees are more fulfilled when they work for an employer that cares about their needs and makes a marked effort to engage them in the improvement of company culture. With stay interviews, employers can assess the degree of employee satisfaction and engagement that exists in their company, and can take immediate and relevant steps to address concerns in order to promote employee happiness and, in turn, productivity.

Before You Ask Why

Even knowing all the benefits of a stay interview, it is important not to just jump into the process. Before conducting stay interviews, you need to ensure that you are implementing the best process for your organization. A few considerations to keep in mind:

Who To Ask

The scope of employees with whom you should conduct stay interviews will generally depend on

The Association has retained the legal services of Fisher & Phillips to provide members access to the expertise of Fisher & Phillips involving employment and labor law issues. Through the Association Legal Hotline, 614-889-1309, members can call to get answers to employment law, labor and human resource questions. Members will get responsive, accurate answers to employment law questions about issues including Americans with Disabilities Act, Family Medical Leave Act, Hiring and Firing, OSHA, Wage and Hour Issues, and more. The Association Employment & Labor Law Hotline does not claim to offer a comprehensive legal service. If your situation requires legal research and consultation, an attorney from Fisher & Phillips will advise you. There is no charge for the initial telephone conference. If specific legal advice to a specific situation is needed, Fisher & Phillips will explain your options and any potential fees. The information in this article is provided for informational purposes only. It does not constitute legal advice. You should consult with a qualified lawyer of your choice who is familiar with all of the facts of your situation before making a decision about any legal matter.

Continued on Page 7

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your organizational structure and business needs. While the focus is mostly on key, valued employees, you can choose to broaden the

target group according to your needs.

A typical target group for stay interviews are those highly skilled, high-performing, and high-potential employees whose loss and replacement costs your business financially and otherwise. You can also focus on employee groups with the highest rates of turnover, as there may be unknown issues impacting that group.

When To Ask

Again, the nature of the business will dictate the frequency with which stay interviews can and should be conducted. A good rule of thumb is at least once a year, but it can be more frequent if your business model or turnover history calls for it. It is important to conduct these interviews around the same time for fairness and efficiency.

Who Does The Asking?

It is usual for the stay interview to be conducted by a direct supervisor or manager. This is because an employee’s manager is usually the one that can most readily have an impact on the employee’s everyday working conditions. It is also usually a more familiar relationship, so the employee can be candid and provide your organization with honest and useful information.

Continued from Page 6

It is important to note, however, that the existing nature of the relationship between a manager and employee should be taken into consideration. If there is already a negative or distrustful relationship, you should strongly consider the alternative of using a Human Resources manager or outsourcing to an external agency.

You’ve Asked…Now What?

Don’t just talk the talk. Your organization must have the intention of following through before you decide to implement stay interviews. Once you start asking employees about what makes them stay and what it would take to continue to keep them, they expect to see evidence that there is an intent to do the things that they have suggested. Failing to follow through only leaves disenchanted employees, which may leave you worse off than when you started.

Conclusion

The choice to incorporate stay interviews as an entirely new way to engage employees is not an easy one or one that should be taken lightly. But because stay interviews have the potential to positively impact employee retention, happiness, and productivity, you should strongly consider adding them to you operations. However, you should not proceed without considering all the potential implications of implementing stay interviews.

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Every Tuesday, KIAW provides members with industry news and information that is important to equipment dealers. Here are just a few of the facts you have received in the last month. Check your email every Tuesday for the latest.

Aftermarket industry heard before

USTR on China tariffs

Last week, Bill Hanvey, president and CEO, Auto Care Association, testified before the Office of the U.S. Trade Representative (USTR) as a part of a seven-day hearing on the fourth China Section 301 tariff list. This fourth list of imported products, worth approximately $300 billion, soon to be subject to a 25% tariff. Hanvey voiced the industry’s continued support of the Trump administration’s efforts to address China’s unfair trade policies related to forced technology transfer, while relaying the negative impacts of these tariffs on both the global automotive supply chain and U.S. consumers.

- Auto Care Capital Report

ermarket industry heard before

TR on China tariffs

t week,, B Biill Hanvey, prresesident and O, Aututoo Care Association, tet stified oree the Office e ofo the U.SS. Trade reesentativeve (USTR) ) asa a paart of

eevven-daayy hearing on the fouurth na Secttion 30011 tataririff fflist. TThis fouurth

of immportrted prooductss, woorthroximmatelyy $300 billlion, soon to subjeect too a 25% taariff. Hanvvey ced tthe iindustryy’s coontinuued port off the Truumpmp adminnistratioon’s rrts to adddress China’s uunfair trrade ciiese relateded to forceded technoologysferer, while rellaying the neegative acts ofo these tariffs on bboth the

bal automomotive suppplyly chain and consumers.

- Auto Care Capital Report

What to expect

when OSHA is inspecting

The likelihood of receiving a visit from an OSHA inspector is slim. Still, experts – including former OSHA staffers – say having a plan in place goes a long way. Read more. @ www.s a f e t ya n d h e a l t h m a g a z i n e. co m /articles/18400-

- National Safety Council

at to o exexpect Wha

enn OSHA A isis i inspectctininggwhe

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- NaNatitiononalal Safety y CoCouncil

U.S. Senator presses automakers

on data collection

U.S. Senator Jeff Merkley (D-Oregon) sent a letter to executives at BMW, Daimler, Ford, Fiat, General Motors, Honda, Hyundai, Nissan, Subaru, Te-sla, Toyota, Volkswagen and Volvo calling upon major car manufactur-ers within the next 30 days to tell Congress whether or not their cars collect personal data from drivers, what data they collect, who owns that data, and whether data col-lected is securely stored to protect consumers’ privacy. The letter cites a New York Times opinion piece from Bill Hanvey, president and CEO of the Auto Care Association, titled “Your Car Knows When You Gain Weight.”

-The GreenSheet

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U.S. Senator ppreressssese automakers

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U.S. Sennaator Jeff Merkley (D-OrO egon)sent aa letter r toto execuutitivev s at BBMW,Daimmler, FFoord, Fiat, Generrala Mottors,Hoonda, HHyunddaai, Nissanan, Subab ru, TTe-slaa, Toyoyota,, Volksswaw gen and d Volvvocaallingg uppoon mmajor carar maanuffaca turr-eers wwithinn thhe nnextt 300 dayys too telll CConggresss whhettherer o r noot theirr carss ccollecct pperssonal ddaataa frromm driivers, wwhat datta ttheyy collelect,, whho oownss thhat ddata,a, annd whethher ddataa coll-leectc ed is seecureelyly s stotored to pprotecct consn ummere s’ pprir vacy. The e lletterer citess aNeww Yorkk T imes oopipinion ppieiece frromBill HHana vey, ppresident andnd CEO ooff theAuto CCara e Asso ici tatiion, titled d “YourCar Knowwss When You Gain n WWeight.”

-ThThe GreenSheet

Weekly Bytes In ReviewIndustry News and Information

OSHA: The ‘Scary 13’

Here are 13 records/documents that employers should be able to produce during an OSHA inspection, according to John Newquist, former OSHA area director, and an agency employee from 1983 to 2012, that he calls the “scary 13”: lockout authorized employee training; a current list of chemicals used at the facility; temporary employees’ OSHA 301; training records for electrical safe work practices; annual respirator training; lockout/tagout audits; personal protective equipment training; noise exposure training; bloodborne pathogens training; confined spaces – non-permit certification; forklift recertification; written PPE hazard assessment with certification; and hazard communication training for all employees with current chemicals. Read more at www.safetyandhealthmagazine.com

- NSC Safety & Health

OSHA: The ‘Scary 13’

Here are 13 records/documents that employeyersrs shhoululd d be able toproduce duduring an OSHAA i insn pection, accordinngg to John Newquistst, , formerOSHA aarea director, and an aagencyemplooyee from m 119833 tto o 2012, thhat he calls tthe “scarry 13”: lockouut tauthorrized empployee training; a ccuru rent listof cchemiccals uussedd at thehe facillity; temmporarry emmployeees’s OSSHA 3301; traiining rreecordds for electtrical ssafe woork praacticess; annnual respirrator traininng;locckout/ttagouut auditts; personnalprootectivee eequq ipmeent training;noisse expoosure ttraraininiing; blooodboorne pathhogens s training; confinned spaaces– noon-permmit certificatatiion; foorkliftrecerttifii cation; wrw ittetenn PPE hhazard assessmment with certifification;and hah zard commuunicationtraining fforo all emplooyyees with current chemmicicalals.s. R Reead more atwww.safetyandhealthmagazine.com

- NSC Safety & Health

Why attend AAPEX 2019?

“The automotive aftermarket has changed drastically -- and it isn’t quite as easy anymore,” says Craig Meadows, 4M Parts Warehouse, Cleburne, Texas. “In order to stay on top of the evolving technology, we have to network with our vendors and OE suppliers. We have to stay passionate and engaged, and most importantly, we have to take the knowledge we learn and pass it down to our customers, whether that be a DIY’er, professional technician, or the parts professional. AAPEX enables us to learn what’s new, get information on new products/product segments, and helps us prepare our inventories so we have the parts our customers need. I am excited about AAPEX 2019. See you there!”

y attend AAPPEXEX 2 2019?Why

e auttoomotive aftermmara ket has “Thengeedd drastically y -- and it isn’tchante e as eassyy anymore,e,” says CCraig quitadadows,s, 4M Parts WaWarehoousu e,Meaaburnee, Texaxass. “In ordrder to o stay oon Cleeb

of tthe eevolving g techhnoloogyg , wwetoop e tto nnetwwoork withth ouur veendorrshaave

OOE ssupppliersrs. WeW hhave e too stayy and sioonatte aandd engaggedd, aand mostppassoortanntly,, wwe hhavee tto ttakee thee immpwwledgge wwe llearn aannd ppasss it ddownn kknow

ourr cusstommerss, whwhetthher tthatt be aa too o’er, profofessiiono al tecchhnicciian, or thheDDIY’ts prprofesssis onall. AAPEX X enabables uuspaartearn wwhat’t’ss nen w, g geet infoormatiionto llennew proroducts/product ssegmeents, on n

hehelps uss p prepare oouur invennttories and we hah ve the parts our cussttomers so wd. I amam excited aboouut AAPEXneed9. See you ththerere!e!”2019

Employers, beware:

SCOTUS ruling creates Title VII

litigation trap

Last week, the U.S. Supreme Court unanimously ruled that Title VII’s administrative exhaustion requirement—whereby an aggrieved employee first must file a claim with the Equal Employment Opportunity Commission (“EEOC”) or a state agency before filing a lawsuit—is merely a claim-processing rule, rather than jurisdictional. As a result, an employer who does not assert “failure to exhaust” as an affirmative defense to a lawsuit might waive the ability to seek dismissal on that basis. In light of today’s decision, employers must ensure they identify an employee’s failure to exhaust at the outset of any Title VII litigation to preserve their ability to dismiss the claims on that ground (Fort Bend County v. Davis). Upon receipt of any complaint asserting a Title VII claim, employers (and their lawyers) must immediately and carefully review and assess the claim and administrative history. Your Association recommends you contact legal counsel immediately to preserve your rights.

9

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weeeek, the U.S. Supremme e Court Last nimmously ruruleled d that Title unan

admiinnistrative exhauustion VII’s uuiremenent—whereby ann a ggrieeved requu

employeee first mumustst fi file a clal im wwith emppthee Equaual Emmpploymentt O pporo tunnity thee

mmisissionn (“EEOC”) oro aa staatetCoomncyy beefore filfilining g a lal wsuiu t——isaggerelyy a cllaimm--processini g rurule, rar theer mmern jjurissdictctionanall. Ass a rresult, ann thhanplooyerr whho ddoes noot aasseert “faailuree eempxhaust” aas aan affiaffirmmattivee deffensee tto exlaawsuuit mmigghtt wwaivve tthe ability too tto a

k dismmisssal on tthatt baasiss. In lightt sseekodday’s’s deecission, eempployyers mustt oof tourere thhey idenntitifyfy ann emmplooyee’s’s eensuuree to eexhauaust at thee outtset oof anyy faailue VVII lititigationon t too presservee theeir Tiitlt eity tot dissmiss the claaiims oon thahatabbiliund ((Fort BBend Couunty vv. Davivis). groouon reeceipt ooff any cocomplaaintUpooeertr ing a a Title VII claim,, e emplooyyersassed ttheir lawwyey rs) mustt i immeddiiately(and

caarefully reviviewew and asseess theand m aand administrative history. claimr Assocociation recommemends you Youtact legall coc unsel immmmediately to contserve your righhts.pres

10

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BEST WISHES TO MARTI SMITH

Association staff member Marti Smith announced her retirement. lt was effective May 31, 2019. She has served our members as Marketing Assistant since 2011. Wearing many hats during her work days, she was the friendly voice that often greeted you on the phone, the creative one assembling the monthly newsletters, the helpful person fulfilling your calendar, business forms and special supply orders. Marti shared this farewell note , “I appreciate having had the opportunity to work with the members of the Association ... I will truly miss the interaction between myself and them. Thanks for everything. It is/was greatly appreciated!” Likewise, she will certainly be missed around the office. We thank her for her past service to members and, we all wish her the best as she looks forward to spending retirement with family and friends. We are sure that she’d love to hear from you at martifarm@hotmail.com.

WHEN YOU AND EMPLOYEES DISAGREE

Are you prepared to handle this scenario? The employee sitting in front of you disagrees with your comments during a performance evaluation. Use these tips to deal with that situation:

usually obvious. Before the session, review your evaluation with an eye for trouble spots.

Then ask yourself “What am I going to say when William disagrees with my comments on ...?”

satisfactory performance. Employees are much more likely to accept criticism when they see that you are satisfied with their overall performance.

offact - the employee was tardy five times, but you wrote seven. In that case, gather the facts and make corrections. It may be a matter of judgement - you wrote that the person’s teamwork skills are weak, but your employee begs to differ. In that case, ask the person to supply evidence is sufficient, amend your evaluation.

-Adapted from:“Employee Performance Reviews Dealing with Disagreements.”

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after October 15th. It’s just that easy!

Mail: PO Box 68, Dublin, OH 43017

Fax: (614) 889-0463

Email: info@amgllcusa.com