October 2013 SDADA Column

The can has officially been "kicked down the road". While headlines read Crisis Over Shutdown and Debt Limit Ends, if you read between those headlines, they have funding until Jan. 15, 2014. The debt ceiling has been raised until February 7, 2014. So the debt ceiling discussion will happen again next year, when 2014 primaries will be in swing.

But the deal also includes an agreement to appoint members to a bipartisan group of members of Congress to negotiate future spending levels. The hope is they will come to a consensus by early December, so theoretically they will hammer out their differences without the threat of economic disaster hanging over everyone’s head - because that’s always worked so well in the past. Call me a cynic.

Take the most recent debate and add in the stakes of a campaign and you have the formula for another fiasco. I've heard it said that our government spends money like a drunken sailor. Not true. The drunken sailor is spending his own money!!

Winter's Early Call

Earlier in October, I was stranded in my cabin in the Black Hills for four days. While the 50+ inches of snow inconvenienced me, it had a far more devastating effect on residents and businesses of the northern Black Hills and the ranchers in the northwest part of our state.

Had this type of tragedy happen in other parts of our country, the cry for federal help would have come from all corners. Instead, we have local organizations and other business groups starting relief funds to help. Businesses and ranchers got back to business within days. Though it was a terrible disaster, these people prevailed.

Forrest McConnell Elected NADA Chairman for 2014

As I sat in my cabin without television and water (I was fortunate to have electricity for most of the time), I missed my first NADA board of directors meeting. While I awaited the snowcat and skid loaders to dig me out, I thought it might be nice to be at the NADA meeting in Santa Barbara rather than up to my a** in snow the first week in October.

At the California meeting, the NADA board elected Forrest McConnell, III, chairman for 2014. Forrest is a smart guy and he will be a great chairman. I look forward to working with him. Bill Fox (New York) was elected NADA vice chairman. They take office at the 2014 NADA Convention & Expo in New Orleans.

NADA Convention Ranked as One of the Most Innovative Meetings for 2013

BizBash, an industry magazine and online resource for event planners, listed the past NADA Convention & Expo as one of the most innovative meetings for 2013—ranking 10th out of 15 conferences held by corporations and trade associations this year in North America.

BizBash says the strategy and design of conferences and conventions continues to evolve as hosts embrace new models for engagement to create an experience that provides value for attendees by addressing their needs and interests.

There’s plenty to get jazzed about with the upcoming 97th annual NADA Convention & Expo in New Orleans next January. For one thing, the city has invested billions of dollars in major restoration projects, and the convention center was updated just this year. Plus, there’s been a 55 percent increase in the number of restaurants over the past seven years, nearly $800 million in hotel upgrades and $77 million in street improvements, including a new streetcar line.

The NADA convention runs Friday, Jan. 24, to Monday, Jan. 27. This will be the 10th time the convention has been held in the Big Easy since 1973. Considered the “Automotive Industry Event of the Year,” the convention includes dealer-manufacturer franchise meetings, educational workshops, hundreds of exhibits on the expo floor and numerous networking events. Dealers and their managers who register in advance by Jan. 16 will receive a $75 discount from the on-site rate. For more information or to register, visit www.nadaconvention.org.

September 2013 SDADA Column

As that great American philosopher Mike Tyson said, "Everyone has a plan until they get punched in the
mouth". Sometimes things don't work out like they are supposed to. Despite our plans and intentions, life gets in the way and screws things up.

As many of you know, I had a deal to sell my stores. My stores were not for sale. But someone came to me early this year and offered me a deal that I felt was good for me and my family. So I pursued it. We signed an asset purchase agreement, got approval from the factories and had everything ready to close. Four days before the closing date, my buyer pulled the plug on the deal.

I will spare you all the bloody details but suffice it to say that it was quite a blow. My wife, Judy, and I had mentally transitioned to the next stage - though we did not know what that was. It was tough on the emotions to reel that back in and start over again.

But we have done it because that's what dealers do - we adapt and adjust. I am happy to be a car dealer. I have never seen myself as anything but a car dealer - and that's a good thing - because it looks like that is where I'll be and what I'll do for some time yet!

Perhaps the most difficult part of the decision making process was idea of missing out on the relationships with those of you in the South Dakota car industry. Judy and I have made some wonderful friends through the years and the thought of falling away from those friendships was the "dark side" for us. We are pleased that since we are staying in the business, we do not have to worry about keeping in touch with our friends in the auto industry!

I believe this is an appropriate time to thank you for the opportunity of representing you on the NADA board. I and am proud to serve as the South Dakota director. Representing my fellow dealers has been the most noteworthy privilege of my automobile career. I look forward to working with each of you in that capacity going forward.

Washington Conference
I just returned from Washington where I was part of the South Dakota delegation to this year's NADA Washington Conference. We had a great group: Scott Peterson, Trace Beck, Bruce Eide and our Next-Gen dealer, Nick Prostrollo joined Myron and me.

We heard an impassioned speech from Senator Ted Cruz on the funding of ObamaCare and shutting down the federal government. Karl Rove added an interesting political perspective to those issues. Rep. Cathy McMorris Rodgers (R-Washington) also addressed the group and answered questions (sort of) on those two topics.

We heard from several other speakers but what struck me about those three Republican speakers was that on the two key issues of the day, ObamaCare and the federal budget, there was absolutely no consensus on what to do. If fact, it would best be characterized by saying they were "all over the board". It did not instill confidence that we were going to be resolving either of these two issues anytime soon!

Our primary issue as we visited the Hill was trying to protect our financing model. The assault by the Consumer Finance Protection Bureau on the dealer financing model is not justified in any way and we sought to carry that message to our South Dakota elected officials. Senator Thune agreed to sign the Portman-Shaheen letter to the CFPB asking for some insight as to their methodology. While our visit with Senator Johnson was more productive that in the past, I don't know that we moved the needle much.

I enjoyed my time with my fellow dealers in DC. Our association is fortunate to have great leadership - Scott, Trace and Bruce did a superb job. Myron always represents us well and is so respected among his peers. Nick did a great job of offering the NextGen perspective - I was grateful to have him join us.

FTC Announces Advertising Enforcement Actions Against Dealers
The FTC issued a press release Sept. 3 stating that it has entered into proposed consent orders with a Cleveland dealership and a Baltimore area dealership for alleged advertising violations that appeared on their respective websites. In the former case, the FTC alleged that the dealer advertised that particular Ford models are available at a specific dealer discount when “in fact, once consumers reach the dealership, they find out that [the dealership] has failed to disclose that the specific discounts are available for some, but not all, of the Ford models advertised.”

In the latter case, the FTC alleged that the dealer advertised specific dealer discounts and prices as being generally available to consumers when “in fact, once consumers reach the dealership, they find out that there are significant restrictions on obtaining the advertised discounts or that the advertised discounts are not available in full.” In particular, the FTC alleged: “In numerous instances, the advertised discount and price are subject to various qualifications and restrictions … for example, being a member of the military, being a recent college graduate, possessing a bank account at a particular bank, or owning a vehicle that has a lien on it. In numerous instances, even if consumers meet all of these qualifications or restrictions, they cannot obtain the advertised discount and price.”

The FTC alleged that these are deceptive practices which violate Section 5 of the FTC Act. In the proposed consent orders, the dealerships (which neither admit nor deny the alleged violations) agree to several provisions such as avoiding certain advertising representations, retaining their ads and promotional material for 5 years, and filing compliance reports with the FTC. The FTC’s press release, which contains links to its complaints, the proposed consent orders and the ads that gave rise to these actions, is available here: www.ftc.gov/opa/2013/09/autoads.shtm.

August 2013 SDADA Column

Like most of you, I was proud of South Dakota's billing as America's Top State for Business for 2013 by CNBC in July. It was something that we, as business people, already knew. It was great to see the rest of the world let in on that well-kept secret and the coverage provided invaluable exposure for our state.

The fact that we have no corporate income tax, no personal income tax, no business inventory tax, no personal property tax and no inheritance tax played into South Dakota's high rating. But let us not take any of this for granted. Every year, there are bills submitted in the legislature that go right at the heart of these advantages we enjoy. We need to be vigilant in protecting these strengths.

We must continue to work hard to ensure that our regulations and laws are reasonable and eliminate unnecessary burdens for our businesses and for those entrepreneurs who want to start a business. Governor Daugaard made these points in an editorial published in many of the states' newspapers.

As community leaders, let us work to continue to build the South Dakota tradition of being "great place to do business".

Why the Dealer Franchise System Is Here to Stay

Franchised auto dealers are on track to sell more than 15 million new cars and trucks this year, including a half million electric, natural gas, hybrid and other alternative technology vehicles. These Main Street businesses – the backbone of their communities – are leading America’s economic recovery. Franchised auto dealers employ nearly a million Americans, provide good jobs that can’t be shipped overseas and engage in robust market competition.

For more than 100 years, automakers have contracted with franchised dealers to sell and service their vehicles for one simple reason – it’s the most efficient and cost effective way of doing so. Franchised auto dealers’ cumulative investment in land, equipment and facilities exceeds $200 billion – expenses that auto manufacturers would otherwise have to incur. Ford and GM tried owning their own dealerships and failed. These experiments proved that factory stores did not deliver better customer service or reduce consumer costs.

A question has been raised as to whether automakers should be licensed to sell directly to consumers. A better question is who should decide this licensing issue – and the answer is the states. In our federal system, states have the right to license lots of important retail industries – everything from eyewear to alcoholic beverages. The states are best positioned to decide what level of accountability, regulation and competition is best for their citizens. Although all states regulate the auto retail marketplace, their approaches differ widely: many allow automakers to sell direct; others require a local licensee as an additional layer of accountability. This reflects the fact that, when it comes to auto retailing, one size doesn’t fit all.

It is easy to understand the rationale behind state laws that foster the presence of a well-capitalized, independent dealer network. New vehicles are expensive, generally require financing and often involve a trade-in. Consumers are better served by multiple retailers competing for their business. A Ford dealer’s biggest competitor, for example, is usually the other Ford dealer down the street. Most buyers, according to the Harvard Business Review, value a combination of online service, personal service and physical locations over standalone Web distribution – which sounds exactly like the dealer franchise system that’s currently in place.

2014 ATD Convention: Online Registration and Housing for New Orleans Now Open

The city of New Orleans will host the 51st annual ATD Convention & Expo next January. The Big Easy has recently undergone major restoration projects, such as $800 million in hotel upgrades, $77 million in street improvements that includes a new streetcar line connecting the Sports District to the Central Business District and French Quarter, and a 55 percent increase in the number of restaurants over the past seven years. “There’s a limited number of hotel rooms available at the Hilton Riverside, which is the ATD headquarters hotel, so we're encouraging dealers to register as soon as possible,” said ATD Convention Chairman Steve Parker. “A benefit of staying at the Hilton Riverside is that ATD dealers, managers, spouses and relatives can attend the daily continental breakfasts and evening receptions sponsored by Eaton.” The ATD convention runs concurrently with NADA from Friday, Jan. 24 to Monday, Jan. 27. ATD attendees who register by Oct. 7 will receive a $150 discount from the onsite rate. For more information or to register, visit www.atdconvention.org.

July 2013 SDADA Column

As summer winds down, the CFPB's assault on dealer reserve continues to gear up. On July 16, 2013, the U.S. Senate confirmed Richard Cordray, a man who is quoted as saying, "consumers should not have to pay more for a car loan simply based on their race" (as if to insinuate that car dealers believe that they should), to a five-year term as the CFPB's director. Sen. Tim Johnson, who chairs the Senate Banking Committee, called the vote "a win for the American people."

From its website, here are the CFPB's definition of "buy rate" and its tips for negotiating a loan:

"A buy rate is the interest rate that a lender quotes to your dealer when you seek a loan directly through the dealer. Your dealer may offer you a rate that is higher than the buy rate. The rate the dealer offers you is called the 'contract rate.' Sometimes the lender pays the dealer a fee that is based on the difference between these two rates, which can give the dealer an incentive to charge you a higher interest rate than you qualify for.

"TIP: Ask the dealer what the buy rate is and offer to pay the buy rate plus a flat fee, rather than paying an interest rate that is above the buy rate. This could save you thousands of dollars over the life of the loan.

"TIP: The dealer may offer you a higher interest rate than you can get directly from a bank or credit union. Shop around to find out who offers the best interest rate."

As we dealers know, indirect loans at the dealership can often undercut the rates on direct-to-consumer loans. I think most dealers would encourage consumers to shop around and see who offers the best and most convenient deal on a loan -- a bank, a credit union or a dealership.

Getting the best overall deal is not as simple as securing the lowest interest rate. Trade-in value; down payment; manufacturer incentives that are exclusive to a captive finance company; the convenience of having multiple lenders bid for the dealership's business; etc. are all factors that affect the value of the deal.

How long before our customers show up at dealerships demanding a loan at the buy rate and not a cent more?

NADA Moves Dates for 2015 – 2018 Conventions

Beginning in 2015, the NADA Convention and Expo will be held Thursday to Sunday, instead of Friday to Monday. “After surveying the membership and exhibitors, the consensus was to end the convention on Sunday, instead of Monday,” said Desmond Roberts, chairman of NADA’s convention committee and a Chevrolet dealer in Hodgkins, Ill. “The Thursday to Sunday timeframe will allow convention attendees to be back at work earlier the following week.” The 2014 NADA and American Truck Dealers (ATD) conventions will be held concurrently in New Orleans from Jan. 24-27 as scheduled from Friday to Monday.

Here are the revised dates for the NADA and ATD conventions:

2015 – San Francisco (Jan. 22-25)

2016 – Las Vegas (March 31 - April 3) 2017 – New Orleans (Jan. 26-29) 2018 – Las Vegas (March 22-25)

For more information on the NADA convention, visit www.nadaconventionandexpo.org. For more information on the ATD convention, visit www.atdconventionandexpo.org.

OSHA Targeting Dealerships

OSHA is targeting automotive repair and maintenance businesses, including new-car dealerships, through a Region 8 (http://www.osha.gov/oshdir/r08.html) Local Emphasis Program. This focused inspection activity, scheduled for between April 16 and at least Sept. 30, 2013, stems from five complaints OSHA Region 8 received in FY 2010, all of which resulted in citations. NADA urges dealerships nationwide to review the inspection directive (http://www.osha.gov/oshdir/r08.html) and their health and safety compliance. Dealerships with specific questions regarding their compliance should contact Lauren Bailey, NADA Regulatory Affairs, at regulatoryaffairs@nada.org or (703) 821-7040 or contact their state or local dealer association.

June 2013 SDADA Column

I just returned from the Broadmoor Resort in Colorado Springs where I attended the NADA summer board meeting. The two burning issues with NADA currently remain the Consumer Finance Protection Bureau's "disparate impact" accusation and Tesla's attempt to skirt state franchise laws.

As I mentioned at our SDADA board meeting in Pierre, the threat from Tesla is not their ability to sell $100,000 plug-in cars in South Dakota; but rather their desire to avoid state franchise laws in selling automobiles without utilizing dealers. There is a very real threat of Tesla CEO, Elon Musk, trying to do an end run around the state courts and filing a lawsuit in federal court to nullify our franchise laws.

As you know, we have spent a lot of time and money fortifying our franchise law to protect our very significant investment. The thought of a federal court striking these laws down distresses me immensely!

Do you trust your franchise with a federal judge? If not, please stay engaged on this issue.

Talking Points on CFPB’s Disparate Impact Initiative

The Consumer Finance Protection Bureau (CFPB) continues its all out assault on automobile dealers. The CFPB wants to change the way finance sources compensate dealers for arranging financing. This is an obvious critical attack on our business model. At our NADA Board Meeting in Colorado Springs, NADA attorneys, Andy Koblenz and Paul Metrey, provided an in depth overview of this issue,  why the CFPB’s approach is both procedurally and substantively flawed, and what Congress and the media should be demanding from the Bureau to support its initiative.

They  have prepared talking points that summarize this issue.  These can be used with lenders, lawmakers, the media or other members of the automotive industry. You can find these talking points here.

If you need additional information, please contact Paul or Andy at (703) 821-7040.

Letter to CFPB Demands Release of Information Supporting its Fair Lending Allegations

A letter circulated by Rep. Terri Sewell (D-Ala.) and signed by 12 of her Democratic colleagues on the House Financial Services Committee was sent to CFPB director Richard Cordray on May 28. The letter asks for the analysis and methodology supporting the CFPB’s assertion in recent fair lending guidance issued to finance sources that there may be disparate impact discrimination in indirect auto lending. The CFPB is using this allegation to push finance sources to compensate dealers with flat fees instead of dealer reserve. Despite numerous requests, the CFPB has steadfastly refused to release this information or any data supporting its efforts to eliminate the dealer’s ability to discount the interest rate offered to consumers. This lack of transparency, coupled with the members’ concern that “credit markets function competitively and efficiently,” prompted this inquiry. The other signers of the letter were Reps. Joyce Beatty (Ohio), William Lacy Clay (Mo.), John Delaney (Md.), Bill Foster (Ill.), Denny Heck (Wash.), Dan Kildee (Mich.), Gregory Meeks (N.Y.), Patrick Murphy (Fla.), Ed Perlmutter (Colo.), Gary Peters (Mich.), David Scott (Ga.) and Kyrsten Sinema (Ariz.) A copy of the letter can be found here.

Rivera Hired as NADA VP of Legislative Affairs

Ivette Rivera has been hired to replace David Reagan as the vice president of Legislative Affairs.  Ivette returns to NADA most recently held the position of executive director of Legislative Affairs and was involved in many critical issues and played a key role in dealer exemption from CFPB and the Cash for Clunkers program. This is a great hire for NADA. Ivette will do a great job.

New NADA President Testifies before Senate on Rental Car Recall Bill

NADA President Peter Welch testified May 21 before a Senate consumer protection subcommittee on S. 921, a bill concerning rental car recalls. During his testimony, Welch emphasized the vital role that auto dealers play in fixing recalled vehicles. While supporting the purpose behind the bill, Welch informed Senators that recall work can sometimes be delayed because the part needed to remedy the recalled vehicle has not yet been designed or manufactured. Under the bill, a rental vehicle would have to be put out of service if the part needed was unavailable. NADA’s president cautioned Senators against regulating “multinational corporations with fleets of hundreds of thousands of rental vehicles” the same as “auto dealers with fleets of five loaner vehicles.” Welch also raised concerns that the bill would subject dealers to new federal inspections, new federal reporting requirements and stiff new penalties. For a copy of Welch’s testimony, click here.

Explorers featured on Simply South Dakota tour

The Explorers were featured on the 6:00 pm edition of KSFY's "Simply South Dakota" on Thursday, June 27.

That's the Way It Is...er...Was

Walter Cronkite was an icon of American broadcasting. He was a legend and anyone over fifty years of age remembers Cronkite's famous announcing the death of President John F. Kennedy or his reporting the assassination of Martin Luther King or his reporting on the moon landing among many others.

Douglas Brinkley's biography of Cronkite took me on a journey that evoked many memories and emotions from my first twenty years on this planet. I enjoy biographies and historical books, but nothing I have read before has inspired so many memories from my childhood. Cronkite was the one who delivered the news of every significant national or world event from my early days.

The very mention of Cronkite's name reminds me of my maternal grandmother who, in a supreme understatement, was not Cronkite's biggest fan. Grandma Theresa was an avid reader. Her conservative politics were fueled by her favorite publications, Human Events and the US News & World Report. Both were popular conservative magazines in the sixties and seventies.

Grandpa Frank was a Goldwater-conservative. Though he died when I was just seven years old, I knew, even then, of his political activism. He was a small businessman/entrepreneur who served many years as Tripp County, South Dakota Republican Chairman. But Grandma took a backseat to no one when it came to Republican politics.

It was Grandma who first put the thought in my mind that a news broadcast might have an ideological slant. As a young boy, I naively thought that the news was the news. But Grandma made it crystal clear that she did not agree with Cronkite's version of the news. She rarely made it through an entire CBS Evening News broadcast without calling Cronkite a "bastard" (her favorite moniker for those with whom she did not agree).

This was long before satellite or cable television. In rural South Dakota, your choices were Cronkite's CBS or a snowy, noisy broadcast of ABC that depended very much on weather conditions and the height of your external television antenna. NBC was not an option. Cronkite's early evening news broadcast was almost the exclusive source of television news in that area.

So Grandma loved to hate Walter. I remember her talking back to the television, telling Walter to quit editorializing and just deliver the news! That was the filter through which I read this book.

Grandma was not the only conservative who never forgave Walter Cronkite for editorializing in early 1969 that the Vietnam War would end in a “bloody stalemate". But Cronkite’s editorializing made him into part of the story. That is not the newsman's role.

As Matthew Sheffield notes, according to Brinkley's book, during the time he was anchoring the CBS Evening News, Cronkite secretly begged liberal senator Bobby Kennedy to run for president and then later interviewed Kennedy about his plans, never disclosing his private pleadings. That's not all, however, Cronkite planted recording devices inside the Republican Party's convention in 1952 and then later had the audacity to go after president Richard Nixon for Watergate.

At the time of Cronkite's death, James Taranto examined how a great newsman helped undermine his profession’s ethos. By taking sides, Cronkite compromised his role as a newsman. The line between editor and newsman since Cronkite has gone from blurred to erased.

Brinkley portrays both the traditional and objective journalist who Jack Kennedy distrusted and the egotist and emphatic liberal who lost his moorings after he retired too early. The revelation that Cronkite was a liberal and talked with liberal politicians, such as Bobby Kennedy, really shouldn't come as a surprise to anybody and pales in comparison with the politicization of the media today.

Grandma had no use for any of Cronkite's colleagues either. Dan Rather, Harry Reasoner, Morley Safer, Eric Sevareid, Mike Wallace, et al were all thorns in her side. Even when cable gave Grandma some choices, I don't think she held Howard K. Smith or Franks Reynolds (ABC) or John Chancellor (NBC) in any higher esteem!

Despite widespread criticism of Brinkley's editing, I found "Cronkite" to be a very interesting read. It was a step back into a time which seemed less political at the time. But looking back, I'm not so sure it was.

It is ironic that a book about the life and times of Walter Cronkite would cause me to write about my Grandma Theresa, but as Walter would say...

April SDADA Column

The theme of this column is government regulation and how it continues to impact every facet of our business.  You will find below three more intrusions: one in advertising, one in service and one in the finance office.

In March, I attended an NADA Public Affairs meeting that really got my attention. In addition to the Tesla discussion (see my column in last month's SDADA bulletin), we learned that the Consumer Finance Protection Bureau (CFPB) has indirect lending through dealerships square in its bull's-eye. With the way the profits are distributed in most new vehicle stores, that should scare the hell out of us!

Lat month, the CFPB released a bulletin that claims indirect lending through dealerships may result in minorities paying more for auto loans. Though dealers are exempt from CFPB oversight, auto lenders are not. So the CFPB’s guidance could drastically change how auto finance sources compensate dealers for arranging auto loans. In other words, banks could get rid of finance reserve.

It would be very interesting to see the methodology by which the CFPB has come to this conclusion. They are not accusing anyone of intentional discrimination. The CFPB issued its guidance based on a theory called disparate impact. If minorities end up paying more for credit than non-minorities in the same credit tier, then it is considered unintentional discrimination. But how does CFPB determine disparate impact exists in today’s marketplace?

Disparate impact can only be proven through a statistical analysis of past transactions, but the CFPB has not revealed how it is conducting its analysis or what data it’s relying upon. There is also no indication that the Bureau has studied how moving to a “flat fee” compensation method would impact the marketplace.
We know that dealer-assisted financing—which is optional—increases access to and reduces the cost of credit for millions of Americans. Our customers overwhelmingly choose dealer-assisted financing because it’s convenient and competitive.

Before this consumer-friendly model is disrupted, the CFPB should explain how it is conducting its analysis. The Bureau also should demonstrate the effect flat fees would have on today’s intensely competitive auto financing market.

The regulatory beast that is the federal government continues to extend its ugly tentacles into every facet of our business and our lives. This is an issue that’s not likely to go away, so stay tuned.

FTC Staff Revises Online Advertising Disclosure Guidelines 

Our second example of intrusive government regulations is the Federal Trade Commission's release of a  new guidance for mobile and other online advertisers that explains how to make disclosures clear and conspicuous to avoid deception. Updating guidance known as Dot Com Disclosures, which was released in 2000, the new FTC staff guidance, .com Disclosures: How to Make Effective Disclosures in Digital Advertising, takes into account the expanding use of smartphones with small screens and the rise of social media marketing. It also contains mock ads that illustrate the updated principles. Like the original, the updated guidance emphasizes that consumer protection laws apply equally to marketers across all mediums, whether delivered on a desktop computer, a mobile device, or more traditional media such as television, radio or print.

Connecticut Body Shop Faces More Than $50,000 in OSHA Fines

Finally, if you don't do what "Big Brother" wants you to, this is what happens. Hoffman Auto Body Shop has been cited by the U.S. Department of Labor’s Occupational Safety and Health Administration for nine alleged violations of workplace safety standards at its Connecticut Avenue facility in East Hartford. The auto body repair shop faces proposed fines of $54,300. OSHA’s Hartford Area Office began their inspection on Dec. 6, 2012, to verify correction of hazards cited during a 2011 inspection. In the 2012 inspection, OSHA identified hazards similar to those cited during the 2011 inspection. Specifically, equipment and materials, some of it flammable, were stored near paint spray booths and electric panels. The stored materials limited access to extinguish potential fires, presented fire and shock hazards and impeded cleaning around the booths, which allows potentially combustible materials to accumulate.

Charred to Perfection

In the spring of 2007, we did a backyard project that included a new wood fired pizza oven. I love outdoor cooking so this addition was right in my wheelhouse. I couldn't wait to start making pizza in the new oven...and so I did.

Looking back now, I made some awful pizza. The fact that people ate it and I actually got some positive reinforcement is a testimony to making them wait to eat and serving lots of beer while they're waiting!

My last several efforts, however, have shown some real promise. I recently made six pizzas for my daughter's 17th birthday party. Teenagers will eat ANY pizza (including the frozen stuff served on a cardboard crust), so I let their compliments go in one ear and out the other.

But I ate a couple slices and they were pretty good (if I say so myself!). I am becoming particularly fond of the chicken pesto we now make.

Since a picture is worth a thousand words, I thought I would post some photos of the most recent effort:

This is a photo of several crusts ready to go. I tried several different recipes (including a whole wheat crust) before I finally landed on this more traditional recipe. The secret here is the flour. My crusts were always tough and chewy until I bought Antico Molino Caputo pizza flour. It is used in most Pizza Napoletana restaurants. This special finely ground flour yields a tasty crisp crust with a moist interior.

The next important ingrediant is a hot oven. You can see my fire here is about 800 degrees. I like to cook in a 700 degree oven. That will cook the pizza in 90-120 seconds. It takes a good hour to 90 minutes to get the oven to this temperature. The roof of the oven is white and the flame will peek out the top of the mouth of the oven. This fire is ready to go!

Here is a cheese pizza (the kids' favorite) cooking. It needs to be turned about 4 times during the 90-120 seconds that it is cooking. I like to finish the pie off with the "Jimi Hendrix" method. I take the pizza peel and "Kiss the Sky" (hold it about 5 inches from the top of the oven) to brown the cheese across the entire pie.

Here is a pizza after about one minute in the oven. It is a little black on the near side (too many photos and not enough turning of the pie!). "Charred to Perfection."

Here is a chicken pesto pizza in the oven. Time to put the camera down and start spinning the pizza!

Here is a chicken pesto pizza still on the peel and ready to be sliced and consumed.

Here is another chicken pesto pizza. It has been sliced and it appears someone got a piece before I got my picture!

While I have found that red wines go pretty well with pizza (cab with cheese pizza, a big zin with pepperoni, pinot noir with the chicken pesto, etc.), nothing goes with pizza like beer. For me, the hoppier the beer, the better it compliments the pizza.

So after six years, many experiments and some undeserved compliments, my wood-fired pizza is finally ready for "prime time". I'm still making them wait and serving plenty of beer while they wait, but now the pizza is worth the wait as it is "charred to perfection"!

March SDADA Column

I hope you have been following the electric-car manufacturer Tesla Motors' battle with dealer associations in Massachusetts and Minnesota over its retail model. Tesla is aggressively lobbying policymakers, reaching out to fans to foster public support and even countering with its own franchise law proposals. 

The Minnesota Auto Dealers Association is opposing Tesla's market entry because the California-based automaker wants to sell cars directly to consumers without using local franchisees like other manufacturers do. The company plans to open a store at Mall of America and a service center in Edina, MN.

MADA recently recently withdrew a bill at the Minnesota Legislature that would have clarified the state's franchise law. Instead, it's now bracing for a court battle.

Do I think Tesla Motors will come to South Dakota to threaten our state franchise law? No, not yet. But the money they spend fighting franchise laws in other states could serve to weaken them and make all dealers more vulnerable. It is fair to assume that Tesla is not spouting positive remarks about franchised dealers as they attempt to dismantle our franchise laws. 

The franchised dealer model has been proven many times over to be the most efficient model for the sales and service of new vehicles. Dealers have been concerned about manufacturers and distributors owning dealerships for a long time. This makes publicizing the benefits of the franchise system a top priority for NADA and state dealer associations.

I hope you're following this because I can promise you that your manufacturer is!!
Dealer Operations Brings Many new Offerings
One of my committee assignments this year is Dealership Operations. Not only does Dealer Ops have perhaps the widest reach in NADA, it probably offers you the most direct value for your membership.

NADA University falls under Dealer Ops and NADA U has been busy! They are currently rolling out several new products and services that you need to be aware of:

NADA University Online Launches ‘My Career Path’ to Facilitate Training

The new “My Career Path” for dealership employees features job-specific training recommendations, links to relevant content from NADA University and tracking capabilities for a growing list of job positions. Career paths are organized into six areas of training, which includes core courses, dealership basics, marketing and operations, legal and regulatory, customer relations and employee relations. Career paths are now available for the general manager, new- and used-vehicle sales consultant, service advisor, F&I manager, service manager, sales manager and parts manager, with more on the way. Sign into www.NADAuniversity.com to take a look and begin.

Special Ops Training Programs in Academy, Allows Managers to ‘Zero In’ on Departments

If you are looking for top notch training for key personnel, NADA University has introduced an all-new Special Ops training program that allows dealership managers to hone their skills for specific departments by attending individual weeks of NADA-ATD Academy programs. The training focuses on the following areas of dealership operations: Financial Management; Fixed Operations I – Parts; Fixed Operations II – Service; Variable Operations I – Used vehicles; and Variable Ops II – New vehicles.

NADA U FUEL

NADA U Fuel is a private online community, is being launched by NADA University exclusively for the following NADA and ATD members: Academy students and alumni, 20 Group members and NextGen ATD members. The online community was created to enhance and expand the collaboration and idea-sharing that already exists among these groups. FUEL provides community members with instant access to peer discussions, subject matter experts and NADA University’s comprehensive education and training resources. It’s a way to exchange ideas and tips for doing business, discuss trends in the marketplace, resolve business problems, give and get advice and keep in touch. FUEL’s custom online platform is powered by DrivingSales, whose technology creates an individualized profile and view, displaying only the content that is relevant and useful to each user.

NADA U Enhances the HR Essentials Product, Adds it to the Learning Hub Premium Subscription

The HR Essentials management tools, with content powered by Bloomberg BNA, have proven invaluable to users over the years. Job Descriptions Online enables managers to customize job descriptions quickly and easily. The product contains descriptions for more than 100 dealership-specific jobs—and thousands of additional jobs. Recently, NADA University engaged Northwood University to review the dealership-specific jobs. Completely new and updated descriptions are now available in the online product. Coming soon, NADA U will add an entirely new feature to HR Essentials: Fast Answers™ Online provides fast and reliable answers to more than 2,400 questions on thousands of everyday HR topics. HR Essentials also includesPerformance Evaluations Online and HR Policy Handbooks Online. The package is included in the Learning Hub Premium Subscription. The package and the individual components are also available separately as an annual subscription.

NADA Members can log intowww.NADAuniversity.com or call (800) 557-6232 for more info on any of the services.