Thursday, October 25, 2012

EBE Makes News Outside of Automotive Press

Marc Heitz Chevrolet
Earlier this week, Automotive News covered the plight of Marc Heitz Chevrolet  in Norman, OK and their loss of $1 million of EBE funds annually. It is an interesting story (be sure to check out the comments at the bottom of the Automotive News article).

Last night, Lars Larson, a nationally syndicated talk show host, interviewed Chad Baker. Baker is the co-owner and General Sales Manager at Marc Heitz Chevy. It is a compelling interview that is significant because Larson is completely outside the traditional automotive industry media and he introduces the dilemma to the general public.

You can hear the interview here.

You may have seen where NADA Chairman, Bill Underiner, made some pretty strong comments at an Automotive Press Association event this week. He criticized manufacturers for "intrusion" into dealers' operations. Bill's comments were "spot on" and much appreciated by this dealer.

Meanwhile, Automotive News Europe poses a legitimate question about what the dealership of the future will actually look like. Does it look like an EBE store? Or does that matter?

Update 10/26/2012: Here is more coverage of this issue. Be sure to check out the comments at the bottom.

Tuesday, October 23, 2012

October 2012 SDADA Column


You may recall that I told of my visit to the General Motors Renaissance Center headquarters back in August as a member of NADA's Task Force on Facility Image Programs and Multi-Tier Pricing in the space. One of the results of that meeting was a commitment by General Motors to consult with small and rural dealers on the EBE program.

Mark Reuss commented that he wanted to help dealers "do what they COULD do" on a timeline that “worked for them”. I specifically asked if that meant some flexibility going forward. I did not get a straight answer on that question.

So shortly after I returned from Detroit, I called my GM Regional manager and asked him to schedule a visit to my store. I got a call back a few weeks later from my Zone Manager who scheduled a visit to my store in mid-October.

The Zone Manager came to visit my store recently. After introductions, he lusted over my desk for a couple of minutes (more on that later). I found him to be a very pleasant gentleman and we had a very cordial conversation as we learned a bit more about each other.

Eventually, the discussion turned to my facility and the EBE program. I gave him a bit of my background with the EBE program told him of the exceptions that I had asked for.

The short story here is that he had no authority, had no discretion, had no flexibility and was no help in getting relief from the EBE program. I could revisit all my discussion points that I visited with him about (they can be found here and here and here). But the bottom line is that it was a waste of time for both of us.

The irony of whole visit was the fact that he was smitten by my desk. When we discussed "customer touch points" and the fact that the EBE program disallowed the customer from seeing the desk in my office, he was stumped. After he thought about, he realized that the office was a customer touch point and there was no way that a customer could see the desk if my office was in compliance with EBE standards.

He took photos and is going to go through the motions of submitting (again) my requests but we both know that it is an exercise in futility. The requests go to the same group that rejected them before.

So I am much more skeptical about our visit to Detroit now. I feel like the whole notion about GM placing people in the field was more of an appeasement than an actual effort to help RCC dealers.

I will reiterate a point that I made after the Detroit trip: the NADA task force must hold GM accountable for the commitments they made.

I am not done with this. Stay tuned for developments...

NADA Issues Dealer Guidance on Counterfeit Air Bags

The National Highway Traffic Safety Administration (NHTSA) announced in early October a consumer advisory on counterfeit air bags.

Federal investigators have determined that thousands of counterfeit bags have been bought and installed in U.S. motor vehicles over the past three years.

NHTSA also has determined that in the event of a frontal collision, these counterfeit bags are unlikely to deploy properly or may deploy in a manner that can harm vehicle occupants. See below for an NADA dealer Q&A document.

Vehicles with counterfeit air bags installed are believed to constitute less than 0.1% of the total in-use fleet. Nonetheless, dealers should be prepared to respond to inquiries from the public on this matter.

NHTSA is urging concerned owners to start by visiting www.safercar.gov/Air+Bags to determine if they are at risk.

In addition to the NADA guidance, dealers should expect to receive communications directly from the auto manufacturers they represent, addressing how to detect and manage counterfeit air bags.

It's important to note that unlike a safety recall campaign, customers should expect to pay to have their air bags diagnosed, and if necessary, replaced.

Service Advisors Overtime Exemption Extended Through March

Congressional legislation to prevent a government shutdown includes an extension of a federal overtime exemption for service advisors through March.

Since the late 1970s, the U.S. Department of Labor (DOL) has held that the frontline employee-salespersons in the service department remain exempt from federal time-and-a-half pay requirements. In 2011, DOL attempted to reverse this policy. Congress intervened and temporarily stopped the Department from enforcing the change.

The Congressional ban was included in a funding measure that was set to expire at the end of September. Under the new continuing resolution that extends government spending through March 2013, DOL is prevented from enacting the new policy for service salespeople.

Friday, October 19, 2012

More of the Same...

You may recall that I told of my visit to the General Motors Renaissance Center headquarters back in August as a member of NADA's Task Force on Facility Image Programs and Multi-Tier Pricing in the space. One of the results of that meeting was a commitment by General Motors to consult with small and rural dealers on the EBE program.

Mark Reuss commented that he wanted to help dealers "do what they COULD do" on a timeline that “worked for them”. I specifically asked if that meant some flexibility going forward. I did not get a straight answer on that question.

So shortly after I returned from Detroit, I called my GM Regional manager and asked him to schedule a visit to my store. I got a call back a few weeks later from my Zone Manager who scheduled a visit to my store in mid-October.

The Zone Manager came to visit my store recently. After introductions, he lusted over my desk for a couple of minutes (more on that later). I found him to be a very pleasant gentleman and we had a very cordial conversation as we learned a bit more about each other.

Eventually, the discussion turned to my facility and the EBE program. I gave him a bit of my background with the EBE program told him of the exceptions that I had asked for.

The short story here is that he had no authority, had no discretion, had no flexibility and was no help in getting relief from the EBE program. I could revisit all my discussion points that I visited with him about (they can be found here and here and here). But the bottom line is that it was a waste of time for both of us.

The irony of whole visit was the fact that he was smitten by my desk. When we discussed "customer touch points" and the fact that the EBE program disallowed the customer from seeing the desk in my office, he was stumped. After he thought about, he realized that the office was a customer touch point and there was no way that a customer could see the desk if my office was in compliance with EBE standards.

He took photos and is going to go through the motions of submitting (again) my requests but we both know that it is an exercise in futility. The requests go to the same group that rejected them before.

So I am much more skeptical about our visit to Detroit now. I feel like the whole notion about GM placing people in the field was more of an appeasement than an actual effort to help RCC dealers.

I will reiterate a point that I made after the Detroit trip: the NADA task force must hold GM accountable for the commitments they made.

I am not done with this. Stay tuned for developments...

Monday, October 15, 2012

There's ls Lot Riding on It

Like so many other aspects of your automobile, tires are improved, last longer and offer more safety. Well-maintained tires keep your car safer, help it last longer, and save you money, too. So here are some tips from the National Automobile Dealers Association to keep your tires in good shape and your travels safe:
  • Choose your tires carefully. Too many drivers buy a tire based on initial price or appearance. Tire selection should be based on the correct size recommended for the vehicle and its load recommendations. You should consult with a knowledgeable tire or automobile dealer about selecting the proper tire for your typical driving patterns.
  • Buy a tire gauge and keep it handy in your car at all times. It will inform you if you need to add more air to your tires. You can find them at any automotive retailer or supply store.
  • Check your tire pressure at least once per month, and especially before a long trip. Remember, under inflation is a tire's No. 1 enemy, because it can cause damage that may lead to tire failure. However, over inflation can cause uneven wear plus handling and stopping problems. Use the manufacturer's recommended air pressure listed on the sticker of your vehicle's door jamb or owner's manual as a guide. Always check the pressure of your tires when they are cool or cold. Driving heats up tires, making readings incorrect.
  • During wet weather, slow down. As your speed decreases, the tire footprint (the amount of the tire's tread contacting the road surface) increases, providing better traction. You also reduce the risk of hydroplaning should you run into water puddled on the road.
  • Rotate your tires every 6,000 miles. If your tires show uneven wear, ask your automotive service professional to check for and correct any misalignment, imbalance or other mechanical problem involved before rotation.
  • Check your vehicle alignment periodically. It's especially important to have an automotive professional check your alignment if you notice your vehicle is pulling to one side when you're driving.
  • Inspect and measure your tire tread. You can do this yourself by placing a penny in the tread groove and if you can see the top of Lincoln's head, then it is time to replace your tires.
  • Check the tire sidewalls to make sure there are no gouges, cuts, bulges or other irregularities.
  • Make sure you do not overload your vehicle because it can create excessive heat inside your tires. An over-loaded vehicle puts stress on tires that can cause damage and lead to tire failure. Check the manufacturer's load recommendation, which can be found on the vehicle information placard inside the driver's side door post, or in the vehicle owners' manual.
Have your tire balance checked periodically. An unbalanced tire and wheel assembly may result in irregular wear.

If you are one of the 85% of Americans who don't regularly check tire pressure, you should consider nitrogen. We take in nitrogen with every breath. Air is composed of:

1% Water Vapor and Other Gases – Escapes up to 250 times faster than Nitrogen
21% Oxygen – Escapes 3-4 times faster than Nitrogen
78% Nitrogen – The largest molecule in air, dry, non-flammable.

Because of their large size, nitrogen molecules are the least permeable and stay in your tire longer. It's not about the nitrogen. It's about reducing oxygen, water vapor and other gases.

By reducing the percentage of oxygen, water vapor and other gases in your tires from 22% to 7% or lower, your tires will maintain proper pressure longer than if you use “plain old air.” For example, with 95% nitrogen in your tires, they retain optimal pressure three to four times longer.

Remember that by checking your tires regularly, you will keep your travels safe, enjoyable and affordable.

Friday, October 12, 2012

Open Letter to SDHSAA

I sent this letter to the South Dakota High School Activities Association about 3 1/2 years ago. I did not even get an acknowledgement from them. Instead, they chose to make hand checking a "point of emphasis" for about the tenth year in a row. I guess they thought I'd go away if they ignored me.

To whom it may concern:
I have announced boys and girls basketball games at Chamberlain High School since 1991. I have also been a fan and a parent of a high school basketball going back even further.
I have announced and observed over six hundred high school basketball games over the past 22 years. Most of those were viewed from the scorer's table.

I have seen different "points of emphasis" passed down by the South Dakota High School Activities Association. The enforcement of most of these campaigns typically falls on the officials. In most cases, the officials emphasize the rule in question, they get a bunch of negative feedback from the crowds and eventually the "point of emphasis" goes away.

While I understand the sentiment behind most of these efforts, (to make the game easier to officiate in some way) I am always skeptical of these campaigns because I do not believe the game is "broken" and needs to be fixed.

For some time now, I have felt that players need to do a better job of “checking in” to the ball game. The manner in which most players report falls between plopping down near the scorers table and slapping the table.
In order to make the official scorer’s job easier, players should be required to report their number and the number of the player for whom they are replacing. The scorer is responsible for tracking the quarters each player plays. Additionally, each facility should have a prominent "X" on the floor in front of the official scorer so players know to whom they are to report.
Coaches could spend five minutes at the beginning of the season discussing the proper way to check in to a game. After that, if a player does not properly report to the scorer’s table, he or she will not be acknowledged until he or she does so.
Both the official scorer and the scoreboard operator would benefit from this practice. It is not unusual for four or five players to be reporting in to the game while an official is calling a foul. The scorer could note the players entering the game prior to the chaos of foul reporting and substitution. Sometimes a player is sitting close to a coach discussing strategy as he or she awaits a break and the official scorer or scoreboard operator doesn't know he or she wants to enter the game because the player either did not report or did a poor job of reporting to the scorer.
I strongly encourage the SDHSAA to consider this issue as a "point of emphasis". I believe it would improve the flow of the game at the scorers table. I encourage the SDHSAA to canvas scorers and scoreboard operators to see if they feel their responsibilities would be easier. I feel certain those officials would agree.
Respectfully yours,
Doug Knust
I wish everyone could see the process up close. It would be very simple to fix this. If a player did not check in correctly, he or she would not enter the game until they did.

It's pretty easy to be cynical when it comes to the SDHSAA. I have seen some pretty damn dumb rules come from them. But this letter was written sincerely and with a desire to improve the process. I thought it would at least be deserving of a reply.

I guess not. They were too busy looking for socks that were too long or a head band that was the wrong color!

Friday, October 5, 2012

Limited, Not by Our Abilities, But by Our Vision


"The only way you can predict the future is to build it." -Alan Kay

I am a pretty fortunate guy. I have the opportunity to work with quite a few young people in our community in various programs. As I do so, I can’t help but wonder, what reasons do we give them to stay in the Chamberlain-Oacoma area after they complete their education here. What will keep them from moving to Mitchell, Sioux Falls or Rapid City? What will entice them to come home to raise their family in the community where they grew up.

The Chamberlain Area Event and Fine Arts Center is a reason. It is a very strong statement that we believe in ourselves, our community and, most importantly our future and our youth.

Currently, the Chamberlain National Guard Armory hosts most school or communities' events of any size. It is a sixty year old facility that, when built, was a state-of-the-art facility. It has received some upgrades over the years but, in the near future, many more upgrades are going to be needed to allow us to use that facility for all the functions it is being used for today. Uncomfortable temperatures, inadequate parking and treacherous sidewalks prevent people from attending events at the armory throughout the year. As a community, we deserve so much more than what the Armory can now offer.

We currently have a window of opportunity that is unprecedented. Interest rates are at historically low levels - the lowest in my lifetime. Given these current interest rates and price of materials for construction, this is the lowest price tag we’ll be looking at for this project. Waiting five or 10 years could increase the cost of the project astronomically.

Chamberlain-Oacoma is where east meets west in South Dakota. This facility allows us to capitalize on the unique geographical advantage our communities enjoy. There is no facility like it in our area. This event center could become home to trade shows, outdoor shows, community plays, traveling concert or speakers series and much more. Even traditionally outdoor events could find a home indoors!

This is a $13.18 million project. The Chamberlain School District support includes $1 million savings, $4 million in capital outlay certificates and $550,000 federal impact aid funds. The Barger Foundation has committed $1.35 million over 10 years. The proposed bond redemption is $5.28 million. One million dollars will be raised from private entities. The City of Chamberlain and the City of Oacoma may also participate financially. The private funding will not target local businesses who will support the project through their support of the bond redemption.


The the 90 cent levy for the new high school will be paid off on November first of this year (one week before the election). The 2012 taxes (payable in April and October of 2013) will reflect the 90 cent levy reduction. If the bond passes, an 88 cent levy will be reflected on the 2013 tax liability (payable in April and October of 2014 and ongoing).

It is important to note that the current levy will not be in addition to an existing one, but rather will replace it at a lower value. There is not a question of whether or not our taxpayers can afford this because they have for the past twenty years. This levy only impacts private, commercial and agricultural property owners.

Click to enlarge
Another important note is that the levy most probably will decrease. As the bond terms get shorter, the district can refinance at lower rates. As our tax base continues to grow, the tax liability is spread out over that larger base, reducing the tax liability on everyone.

The attached image shows how the levy affects individual property owners or you can use this tax calculator. For just pennies a day, our community can take control of its future.

Everyone knows that working together, we get more done. Sometimes it is difficult to put personal interests or biases aside, but as Helen Keller said, "Alone we can do so little; together we can do so much."

This issue requires a 60% majority plus one vote to pass. If you support this project, it is not enough to just vote "Yes". You need to get involved and become an advocate. You need to talk to your circle of influence, your network and let them know what's at stake. You must explain that their taxes are not going to go up and that this is a bargain in this interest rate environment.

The Chamberlain Area Event and Fine Arts Center is opportunity for our community to seize control of our future. It is a state-of-the-art facility that will serve our communities' needs for fifty plus years. I urge you to vote yes on election day!


Update: Here is KDLT's October 19 story on the Event Center.