09may

NewsFebruary 2017

inside NADA Convention Highlights

New I-9 Form

MADA Insurance Update

Scott Lambert, President • 200 Lothenbach Ave. • West St. Paul, MN 55118 • (651) 291-2400 • 1-800-652-9029 • FAX (651) 291-2894

visit www.mada.org

for details, registration and a complete list of Upcoming Events and

Training

Legislative News

Dealers Drive Results at MADA Day at the Capitol

Title BasicsWest St. Paul

Certified TitleWest St. Paul

upcoming events

Thanks to the more than 60 MADA and SPCC members who attended MADA Day at the Capitol in support of House File 740/Senate File 638, MADA’s initiative to update Minnesota’s Motor Vehicle Franchise Protection Law. Through their participation, we succeeded in having one-third of state legislators meet face-to-face with dealership managers and employees to hear how the factories are taking advantage of Minnesota’s outdated franchise law. These meetings resulted in increased support for MADA’s bill, with several previously “undecided” legislators expressing support and others requesting to sign-on the bill as co-authors.

The day began with a luncheon program, including a keynote address by Speaker of the House Kurt Daudt (R-Crown) who lauded attendees for taking the time to build a relationship with their

local legislators and encouraged them to stay engaged in the process. After lunch, the group spent two hours walking the halls at the Capitol talking to lawmakers about the bill and sharing examples of how dealers are asked to

Day at the Capitol... continued on page 2

11apr

...meetings resulted in increased support for MADA’s bill.

February 2017 / Page 2

The Minnesota Automobile Dealers Association is a non-profit trade association dedicated to the progress of the retail auto

industry in Minnesota.Chair Rick Jensen, Jensen Motors, Inc., New Ulm Vice Chair Michael Stanzak, Key Cadillac, Inc., Edina Treasurer Peter Kolar, Kolar Toyota, Duluth Secretary Steve Whitaker, Whitaker Buick GMC, Forest Lake President Scott Lambert, MADA

200 Lothenbach Avenue • West St. Paul, MN 55118Metro: 651-291-2400 • Toll Free: 800-652-9029

FAX: 651-291-2894 • Web site: http://www.mada.org

Day at the Capitol... continued from cover

subsidize the costs of warranty and recall work, and face uncertainty when it comes to factory demands of dealerships.

MADA Day at the Capitol was an important step in raising visibility about MADA’s bill and the contributions of dealerships to their local communities. If you weren’t able to attend the

event, but still want to engage in the process, there will be several more opportunities as the session moves forward. Please watch your e-mail for legislative action alerts and take the time to contact your lawmakers when asked and encourage them to vote for an updated and fairer motor vehicle franchise law.

State Representative Jim Nash (R-Waconia) hears from constituents Tim Curtis (left) and Deb Letcher of Waconia Ford, and Barb Hilbert (far right) of Luther Automotive Group.

Mike Brown (right) of Harry Browns Family Automo-tive in Faribault checks out the view from the Senate dais with Senator Mike Jasinski (R-Faribault) and Sen-ate President Michelle Fischbach (R-Paynesville).

Speaker of the House Kurt Daudt (cen-ter) poses with MADA President Scott Lambert and Board Chair Rick Jensen (right) of Jensen Motors.

SPCC members Dave Meling of Inver Grove Hyundai (left) and Cliff Adee of Walser Burnsville Mazda (right) get face time with their state representative Jon Koznick (R-Lakeville).

February 2017 / Page 3

Do you have a training need or suggestion? We would like to hear

from you!Please call Alice

at 651-789-2956 or email alice@mada.org.

Minnesota truck dealer Bob Nuss, President of Nuss Truck Group, was named American Truck Dealer (ATD) of the Year. The Award came at the ATD Annual Meeting during the NADA Convention in New Orleans. Nuss’s dealership sells Mack, Volvo, and Isuzu trucks. He took over the dealership in 1979, and over the years, has expanded his operation to six other locations in Minnesota employing 325 individuals.

The annual NADA Convention had special significance as NADA celebrated its 100 year anniversary. The celebration was highlighted by a $2.4 million blowout party on the first night of the convention that featured eight bands, including Foreigner, on three stages and a fireworks display over the Mississippi river.

The Convention also featured line-make meetings, presentations from Ford’s Mark Fields, and a hilarious appearance by comedian Jim Gaffigan.

Besides the victory by Bob Nuss, MADA’s presence was notable for its reception at the World War II museum and Greg House’s walk across the stage as our TMQDA nominee.

MADA News

Nuss Win Highlights NADA

Put on your seatbelt and hold on tight, we are in for a wild ride. The Affordable Care Act (ACA) is still in place, but we all know that the new Trump Administration and its Republican allies in Congress have plans to change it or even have it eliminated. MADA Insurance hopes that whatever the changes, they will result in a return to lower premiums, more flexible choices, and the continuation of our affordable group policy. Regardless of where the new administration’s policy will take us, MADA Insurance is asking our participants to wait for the dust to settle before reacting.

MADA Insurance’s contract is set to be negotiated soon, and we are anticipating a return to the old format of composite-tiered rating. Some may remember that there was a bit of a shock when the plan went to age-based pricing, but it did work out. Futhermore, because of the MADA Insurance group policy and excellent experience ratings, we have not had to endure the 20-50% rate hikes that others have felt. Look for more information regarding our group policy in upcoming editions of MADA News.

Gentle reminder that we can only insure new car dealerships.

Insurance News

Get Ready for Change

Bob Nuss accepts an award the size of the Superbowl trophy for his win as Truck Dealer of the Year.

February 2017 / Page 4

MADA has been talking a lot about the new FTC Buyers Guides. But there’s still confusion in the dealer community about the effective date. The new rule was effective on January 27, 2017. However, dealers have a grace period of 12 months to use up their existing stock of forms.

The new Buyers Guide is similar in look and feel to the old form. Some of the more significant

changes include an updated description of what “As Is” means, a section to permit dealers to disclose third party warranties, words to encourage consumers to visit government websites for vehicle history and recall reports, and a statement in Spanish letting customers know that they may obtain a Buyers Guide in Spanish if the dealer is conducting the sale in Spanish.

Legal News

Dealers Have a Year to Use Up Old Buyers Guides

Beginning January 22, 2017, the United States Customs Office requires all employers to use an updated version of Form I-9, Employment Eligibility Verification, to verify the identity and work eligibility of every new employee. The new I-9 form is dated “11/14/2016.”

The new version includes expanded instructions, the ability to add multiple preparers and a handful of changes to various fields. The new version is being called the “smart I-9” because an interactive PDF contains enhanced features to reduce errors and allow for easier completion. The “smart” features include:

• drop-down menus for filling in fields and selecting dates;

• prompts to ensure information is entered fully and correctly;

• embedded instructions for completing each field (a clickable question mark); and

• a barcode unique to each form (QR code) to identify it for audit purposes.

Note: The new I-9 should be used on a go forward basis. Unless otherwise required to recertify, employers do not need to update existing employee files.

Visit I-9 Central for more information: https://www.uscis.gov/node/41230

Legal News

New I-9 Form Now Mandatory

GET GOING! And look for these signs throughout the 2017 Twin Cities Auto Show!

Council News

SPCC Will have a presence at the Auto Show

Factory-trained technicians who repair hundreds of

vehicles like yours. Quality repair with

competitive pricing.

NOBODY KNOWS YOUR CAR BETTER THAN YOUR DEALER

Service, Parts & Collision CouncilA Clear Voice for Dealership Service, Parts & Collision

Scan this QR code to find your dealer!

2017_TCAS-SPCC.indd 1 2/24/17 2:19 PM

February 2017 / Page 5

Minnesota New Retail Car and Light Truck RegistrationsMost Recent Two Months Annual Totals* Annual Market Share

11/15 & 12/15 11/16 & 12/16 % change 2015 2016 % change 2015 2016 changeIndustry Total 35,107 36,772 4.7% 210,594 216,943 3.0%

Cars 9,338 8,773 -6.1% 66,559 60,836 -8.6% 31.6 28.0 -3.6Light Trucks 25,769 27,999 8.7% 144,035 156,107 8.4% 68.4 72.0 3.6

Japanese Brands 12,019 13,161 9.5% 72,279 76,222 5.5% 34.3 35.1 0.8Honda 3,034 3,387 11.6% 18,877 19,771 4.7% 9.0 9.1 0.1Nissan 1,629 1,794 10.1% 11,077 10,759 -2.9% 5.3 5.0 -0.3Toyota 4,473 4,819 7.7% 25,670 27,308 6.4% 12.2 12.6 0.4Other 2,883 3,161 9.6% 16,655 18,384 10.4% 7.9 8.5 0.6

Domestic Brands 19,033 19,330 1.6% 113,043 115,547 2.2% 53.7 53.3 -0.4FCA (excl. FIAT) 4,257 4,335 1.8% 26,815 28,635 6.8% 12.7 13.2 0.5Ford 5,982 5,921 -1.0% 37,765 36,601 -3.1% 17.9 16.9 -1.0General Motors 8,749 9,023 3.1% 48,215 49,896 3.5% 22.9 23.0 0.1Other 45 51 13.3% 248 415 67.3% 0.1 0.2 0.1

European Brands 2,280 2,486 9.0% 12,646 13,205 4.4% 6.0 6.1 0.1BMW 527 519 -1.5% 2,912 3,157 8.4% 1.4 1.5 0.1Mercedes 407 406 -0.2% 2,075 2,163 4.2% 1.0 1.0 0.0Volkswagen 1,001 1,239 23.8% 5,976 5,973 -0.1% 2.8 2.8 0.0Other 345 322 -6.7% 1,683 1,912 13.6% 0.8 0.9 0.1

Korean Brands 1,775 1,795 1.1% 12,626 11,969 -5.2% 6.0 5.5 -0.5

-7.6%-10.1%

-6.5%

-11.7%

-4.5%-6.7%

-3.8%

1.5%

6.0%

22.4%

15.6%17.2%

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16*

% c

hang

e vs

. yea

r ear

lier

Last month in period

6.4%

8.4%

-8.7%

-8.6%

-30.0% -10.0% 10.0% 30.0%

U.S.

Area

Cars

Trucks

Minnesota Auto OutlookCovering the Minnesota automotive market Data thru December 2016

Released by:Minnesota AutomobileDealers Association

Data InformationAll data represents new vehicle retail registrations in Minnesota and excludes fleet and wholesale transactions. Please keep in mind that monthly registration figures can occasionally be subject to fluctuations, resulting in over or under estimation of actual results. This usually occurs due to processing delays by governmental agencies. For this reason, the year-to-date figures will typically be more reflective of market results. Data Source: IHS Markit.

Percent Change in Three Month Moving Average of New Retail Registrations versus Same Period Year Earlier

The graph above provides a clear picture of the trending direction of the state market. It shows the year-over-year percent change in the three month moving average of new retail light vehicle registrations. The three month moving average is less erratic than monthly registrations, which can fluctuate due to such factors as the timing of manufacturer incentive programs, weather and title processing delays by governmental agencies.*Figures for December 2016 were estimated by Auto Outlook. Data Source: IHS Markit.

Percent Change in State and U.S. New Retail Light Vehicle Markets

2016* vs. 2015

Brands included above: Domestic Brands: GM (Buick, Cadillac, Chevrolet, and GMC), Ford (Ford and Lincoln), Chrysler (Chrysler, Dodge, Jeep, and Ram). Japanese: Toyota (Toyota, Lexus, and Scion), Honda (Honda and Acura), Nissan (Nissan and Infiniti), Other (Mazda, Mitsubishi, and Subaru). European: VW (Audi, Bentley, Porsche, and Volkswagen), BMW (BMW, Rolls Royce, and MINI), MB (Mercedes Benz and smart), Other (Alfa Romeo, Aston Martin, Ferrari, Fiat, Jaguar, Land Rover, Lotus, Maserati, and Volvo). Korean: Hyundai and Kia.*Figures for December 2016 were estimated by Auto Outlook. Data Source: IHS Markit.

The graph above compares the change in new retail car and light truck registrations in both the state and U.S. markets. *Figures for December 2016 were estimated by Auto Outlook.Data Source: IHS Markit.

February 2017 / Page 6

MinnesotaNew Retail Light Vehicle Registrations

Registrations Market share

2015

Annual

2016*

Annual % change

2015

Annual

2016*

Annual

TOTAL 210,594 216,943 3%

Acura 1,435 1,271 -11% 0.7% 0.6%

Audi 1,659 1,873 13% 0.8% 0.9%

BMW 2,443 2,673 9% 1.2% 1.2%

Buick 3,909 4,135 6% 1.9% 1.9%

Cadillac 1,327 1,320 -1% 0.6% 0.6%

Chevrolet 34,202 35,415 4% 16.2% 16.3%

Chrysler 3,758 3,535 -6% 1.8% 1.6%

Dodge 5,471 5,313 -3% 2.6% 2.4%

FIAT 227 200 -12% 0.1% 0.1%

Ford 36,669 35,375 -4% 17.4% 16.3%

GMC 8,777 9,026 3% 4.2% 4.2%

Honda 17,442 18,500 6% 8.3% 8.5%

Hyundai 5,729 4,962 -13% 2.7% 2.3%

Infiniti 769 758 -1% 0.4% 0.3%

Jaguar 63 150 138% 0.0% 0.1%

Jeep 9,729 11,133 14% 4.6% 5.1%

Kia 6,897 6,992 1% 3.3% 3.2%

Land Rover 535 512 -4% 0.3% 0.2%

Lexus 2,535 2,701 7% 1.2% 1.2%

Lincoln 1,096 1,226 12% 0.5% 0.6%

Mazda 4,476 4,785 7% 2.1% 2.2%

Mercedes 2,052 2,143 4% 1.0% 1.0%

MINI 469 482 3% 0.2% 0.2%

Mitsubishi 1,876 2,124 13% 0.9% 1.0%

Nissan 10,308 10,001 -3% 4.9% 4.6%

Other 185 176 -5% 0.1% 0.1%

Porsche 283 323 14% 0.1% 0.1%

Ram 7,857 8,654 10% 3.7% 4.0%

Subaru 10,294 11,469 11% 4.9% 5.3%

Tesla 193 388 101% 0.1% 0.2%

Toyota 23,135 24,607 6% 11.0% 11.3%

Volkswagen 4,034 3,777 -6% 1.9% 1.7%

Volvo 760 944 24% 0.4% 0.4%

0.0 5.0 10.0 15.0 20.0

Volkswagen

Buick

Mazda

Hyundai

Dodge

Kia

Ram

GMC

Nissan

Jeep

Subaru

Honda

Toyota

Chevrolet

Ford

1.9

1.9

2.1

2.7

2.6

3.3

3.7

4.2

4.9

4.6

4.9

8.3

11.0

16.2

17.4

1.7

1.9

2.2

2.3

2.4

3.2

4

4.2

4.6

5.1

5.3

8.5

11.3

16.3

16.3

Market Share

2016*Annual

2015Annual

Minnesota Auto Outlook Data thru December 2016

This report is sponsored by the Minnesota Automobile Dealers Association and produced by Auto Outlook (800-206-0102).

Auto Outlook, Inc. is not responsible for management decisions based on the content of Minnesota Auto Outlook. Copyright Auto Outlook, January 2017.

Reproduction, including photocopying of this publication in whole or in part, is prohibited without the express permission of Auto Outlook, Inc. Any material quoted must be attributed to Minnesota Auto Outlook, pub-lished by Auto Outlook, Inc. on behalf of the Minnesota Automobile Deal-ers Association and must also include the statement: “Data Source: IHS Markit.”

State Market Share for Top 15 Selling Brands 2016* vs. 2015

Top ten ranked brands in each percent change category are shaded green.*Figures for December 2016 were estimated by Auto Outlook.

Data Source: IHS Markit.

*Figures for December 2016 were estimated by Auto Outlook.

Data Source: IHS Markit.

February 2017 / Page 7

Endorsed Service & Vendors

MADA Services sells a wide variety of products directly to the dealers including business forms, clothing and promotional items. For a full review of options, contact your sales representative at 651-291-2400 or go to www.mada.org

Check Guarantee/Credit Card Processing FIS / CertegyComputerized Vehicle Registration CVR

Dealer Bond Program Ensure Agency

Disability Income Insurance & Section 125 Cafeteria Plans American Fidelity Assurance

Employee Placement Hireology

F&I Products Protective

Fleet Fueling Program SuperAmerica

Group Health Insurance Blue Cross Blue Shield of MN Delta Dental ReliaStar Life

Hole-In-One Insurance Hole-In-One-USA

Lighting LED Supply Company

Office Supplies InnovativeOfficeSolutions

OSHA, EPA & DOT Compliance/Training ComplyNet CorporationPre-Paid Legal, Jim Gavin Identity Theft Shield & Pre-Paid Legal Services Uniforms and Linen Services AmeriPride Linen & Apparel Services

Workers Compensation Ensure Agency

Member News Greg House of House Chevrolet purchased Walser Chevrolet Buick in Owatonna, adding a second Chevrolet store in southeastern Minnesota to his portfolio. Congratulations Greg!

Rihm Family Companies, Inc. (RFC) kicked off its 85th year in business and acquired LTX, Inc., owner of Lawrence Leasing, Inc., and operator of Lawrence NationaLease. Congratulations Kari!

Todd Asa purchased the Buick, Chevrolet and GMC dealership in Austin from Usem Inc. renaming it Asa Auto Plaza of Austin. Congratulations Todd!

There are over 17,000 automotive dealerships in North America and on average, they use up to 18% more energy annually than a typical commercial building and consume $1.9 billion dollars in energy costs per year. Lighting can represent up to 45% of those costs as dealerships emphasize marketing their inventory and differentiating their store from the competition. Dealership profits in 2015 averaged just 2.7%, meaning that a lighting retrofit that can reduce energy use will make a meaningful impact on your profits, without sacrificing the quality of light needed to highlight your dealership. For example, if a dealership with an industry average of $110,000 in annual energy costs (45% attributed to lighting) conducts a lighting retrofit that results in a 60% reduction in lighting cost, that could translate to savings equivalent to a 4% increase in earnings.Article contributed by LED Supply, Tony Beman

Article contributed by LED Supply, Tony Beman

MADA Vendor Viewpoint

The Challenge and the Opportunity

Scott Lambert, President • 200 Lothenbach Ave. • West St. Paul, MN 55118 • (651) 291-2400 • 1-800-652-9029 • FAX (651) 291-2894

200 Lothenbach AvenueWest St. Paul, MN 55118

ADVOCACY • EXPERTISE • EDUCATION • COMMUNICATIONMADA NEWS • February 2017

FAQQ: We took a vehicle in on trade. The catalytic converter is gone. We have a local customer who is willing to buy the vehicle “As-Is” without the pollution control equipment. Is it okay for us to sell it to this customer?

A: No. MADA attorneys are getting this call more and more frequently, particularly regarding trucks. Vehicles are being stripped of their pollution control equipment in order to enhance performance. That is illegal. Minnesota Statute §325.E.0951 prohibits the sale of any vehicle (old or new, car or truck) by a seller who has “knowledge that any air pollution control system is either not in place or not functional.” This is a criminal statute which provides for misdemeanor penalties. The law is designed to protect the public at large. Even if the buyer knows and agrees, the sale is still illegal. Your legal options are:

1. Fix it

2. Junk it

3. Sell it out of state

That statute can be found at: https://www.revisor.leg.state.mn.us/statutes/?id=325E.0951