Volume 113, No. 20 October 10, 2016 Bill would delay new overtime pay rule for 6 months How amended Legislation to delay for six buzz, but also a lot of con- Department should with- MLA Regulation months the implementation fusion about who will qualify draw its rule and work to date of the new overtime for additional pay. responsibly modernize the affects dealers rules for workers passed The new rule doubles the nation’s overtime rules. The Department of De- the U.S. House in late Sep- salary threshold for over- However, the department fense recently amended a tember. It now is before the time eligibility and requires has refused to heed these regulation known as the Senate, which is scheduled to automatic adjustments every concerns and plans to imple- Military Lending Act Regula- meet for just 24 more days three years. ment the rule on Dec. 1. tion, which imposes certain this year. Concerns have been The National Automobile restrictions and requirements House Resolution 6094 raised that the rule change Dealers Association, which on creditors — including, would push back the start will stifle workplace flexibil- supports H.R. 6094, said potentially, auto dealers — date of the U.S. Department ity and opportunity, impose delaying implementation of when they extend credit to of Labor’s rule on overtime significant burdens on small the rule by six months would service members and their pay, scheduled to take effect businesses, jeopardize cru- provide workers, small busi- dependents. Dec. 1. The new rule is ex- cial nonprofit services, and nesses, nonprofits and col- Significantly, the amended pected to impact more than increase the cost of higher leges and universities more regulation, which took effect 4 million workers within the education. To prevent these time to prepare for dramatic Oct. 3, excludes from its cov- first year of implementation. consequences, backers of changes brought on by the erage “any credit transaction That’s creating a lot of H.R. 6094 said the Labor department’s final rule. that is expressly intended to finance the purchase of Families still need help after Louisiana flooding a motor vehicle when the Seven weeks after the devastating floods damage until you see it for yourself,” Carlson credit is secured by the ve- that swept through southern Louisiana, fi- said. hicle being purchased.” On nancial assistance for hundreds of dealership “Here’s the ask: I would like for you to do its face, this exclusion would employees and their families is still needed. what we have done,” said Carlson, in a plea seem to address any claim Jeff Carlson, the 2016 chairman of the to dealers across the country to donate to that the MLA Regulation ap- National Automobile Dealers Association, the National Automobile Dealers Charitable plies to auto dealers originat- visited All Star Ford in Denham Springs, Foundation’s Emergency Relief Fund. “Each ing motor vehicle financing. La., to survey the flood damage more than of my dealerships has adopted a family and However, a recent De- a month after the storm, which has been contributed $1,000 per store to the charita- fense Department interpre- categorized as the worst U.S. natural disaster ble foundation, so that we can help people tation of a separate exclusion since 2012. restore their lives down here in the Baton to these requirements has “You don’t realize the magnitude of the SEE RELIEF FUND, PAGE 2 SEE MLA, PAGE 4 2 CATA Bulletin October 10, 2016 Dealership revenues, earnings up in latest NADA analysis Weekly earnings at U.S. which was relatively un- The NADA study ana- in Compensation, Benefits new-car dealerships in 2015 changed year-over-year and lyzed more than 385,000 & Retention, also provides were up an average $1,341, still well below the U.S. pri- payroll records from 1,956 comparisons by luxury and or 1.4 percent, compared to vate sector average of 46 new-car and -truck dealer- non-luxury dealer franchises. the previous year, accord- percent. ships. Each dealership pro- Dealers who provided in- ing to the latest Dealership • Dealership productivity, vided information on sales put to the study will obtain Workplace Study, which is measured as gross profit per volume, work schedules a complimentary copy of administered by the National employee, increased 0.4 per- and employee benefits. The the results. Nonparticipants Automobile Dealers Asso- cent, to $8,446. report, Automotive Retail: can buy the report by calling ciation. • Millennials comprised 42 National & Regional Trends (800) 557-6232. The analysis showed percent of all new-car deal- growth rates in the service ership employees, up from and parts departments rang- 38 percent in 2014. Millen- Relief fund CONTINUED FROM PAGE 1 ing from 6.7 percent to 8.2 nials represented 60 percent percent. Average weekly of new hires at new-car deal- Rouge area.” earnings for sales consultants erships, and that percentage Matt McKay, president of All Star Ford, said 130 out of grew 2.7 percent year-over- is expected to continue to his 800 employees at 11 dealerships, lost their homes. “It’s year. increase in the future. gone. It’s totaled. “About 70 percent of my employees lost The NADA study, now • The ratio of women their cars.” in its fifth year, continues to working at new-car dealer- “We’re working very hard trying to identify the ones show a U.S. retail-auto in- ships was 18.6 percent, a who’ve had the biggest problems and visit with them first to dustry with strong growth slight increase in 2015. Wom- try and help them with their paperwork, with the state, with and earnings opportunities. en accounted for 20 percent FEMA and all those things,” McKay added. “Just to have a Other findings: of all new hires in 2015, the light at the end of the tunnel.” • Overall employee turn- same figure reported the pre- Will Green, president of the Louisiana Automobile Deal- over rate was 39 percent, vious year. ers Association, added that donations to the NADA Founda- tion are critical to help dealership employees get back to work quickly and establish normalcy. Fisker launches electric car company “Donations are not only vital now, but it’s vital to have Henrik Fisker, whose previous automotive venture a resource always and to have it solvent with funds readily collapsed in 2013 owing U.S. taxpayers $139 million, said available to help people quickly,” Green said. Oct. 4 he plans to launch a new electric car company next The CATA donated $10,000 to the relief fund following year to compete with Tesla. the flooding. Fisker declined to say who is funding his new Califor- To donate, visit www.nada.org/emergencyrelief or call nia-based venture, called Fisker Inc.; and a new battery (703) 821-7233. Personal or corporate checks can be mailed subsidiary, Fisker Nanotech. to NADCF Emergency Fund, c/o NADCF, 8400 Westpark The Danish automotive designer’s previous venture, Drive, Tysons, VA 22102. (Donations to the NADA Founda- Fisker Automotive, once was a rival to Tesla Motors in the tion are generally tax-deductible; contributors should consult nascent market for electric luxury cars. Founded in 2007, their tax advisors for details.) Fisker Automotive built fewer than 2,000 cars through 2012 while burning through $1.4 billion in private invest- The CATA Bulletin is published by the ments and taxpayer-funded loans from the U.S. Depart- Chicago Automobile Trade Association ment of Energy. Fisker left the company in March 2013, 18W200 Butterfield Rd. Oakbrook Terrace, IL 60181-4810 before it filed for bankruptcy protection. The CATA Bulletin is distributed via blast e-mail every other Friday In 2014, Fisker was purchased out of bankruptcy by except during the Chicago Auto Show, when it is not produced. Listings of items for sale are subject to the approval of the CATA. Chinese auto parts maker Wanxiang Group, and renamed Candidates for employment must submit a full resume to the Editor. Karma Automotive. Wanxiang also acquired bankrupt Review past editions dating to 1998 or search by subject at U.S. battery maker A123. It relaunched the Fisker Karma www.cata.info. gasoline-electric hybrid sports car in August as the Karma David E. Sloan President, Publisher Revero. Erik K. Higgins Editor, Director of Dealer Affairs October 10, 2016 CATA Bulletin 3 Future auto regulations are ‘flawed,’ industry group says An automotive industry trade now and are based on assumptions several years ahead of schedule,” he group said two federal agencies erred about consumer buying preferences said. in a July draft report that concludes that have changed in recent years. Sales U.S. Rep Fred Upton, R-Michigan, automakers are on track to meet fu- of cars have dropped in recent years in September urged regulators to ture mileage and emissions standards while sales of crossovers and SUVs consider the potential damage that and complained that the industry and have soared as they have become more tougher auto regulations could have public should be given more time to fuel efficient. on the industry if the future stan- comment. “It’s important to get the Midterm dards are not dialed back. The Alliance of Automobile Evaluation right,” the Alliance said “The industry is doing well now, Manufacturers said the U.S. Environ- in its comments. “If proposed stan- thanks in large part to pent-up de- mental Protection Agency and the dards are inconsistent with consumer mand after the last recession and very National Highway Traffic Safety Ad- behavior, we’ll jeopardize the health low interest rates that make financing ministration were “overly optimistic” of this industry, cost thousands of about as cheap as it has ever been,” and relied on “flawed assumptions” jobs, diminish environmental gains and Upton said during a Congressional about automaker readiness to meet sacrifice improved safety outcomes.” hearing that he chaired.