News August 2014

Industry News inside /DEAC Status Update Minnesota Dealers Prepare Unclaimed Property Reports Due for “Quickie” Minimum Wage Rules Elections BBB Endorsement Minnesota new car and truck stores are great places to work. Wages and benefits are great. The work environment is clean and efficient. Service and ... dealers should be carrying a favorable parts departments in most MADA member dealerships message to their employees all the time are union free with the upcoming events majority of their employees sep OSHA & your Automotive Lifts recognizing that the costs 4 of collective bargaining far webinar outweigh the potential gain. sep Title Basics 9 Dealership owners agree Minneapolis and if a union attempts to sep Certified Title organize at their store, management tells their side of the story - 9 Minneapolis how unions impact employees and business, existing wages and sep Title Basics benefits, the realities of collective bargaining, strikes and work 18 stoppages. Brainerd But telling the management story takes visit time. Under www.mada.org current National for details, registration Labor Relations and a complete list of Board Rules (NLRB), once Upcoming Events and the union files Training an election Minnesota Dealers Prepare... continued on page 3

Scott Lambert, Executive Vice President • 200 Lothenbach Ave. • West St. Paul, MN 55118 • (651) 291-2400 • 1-800-652-9029 • FAX (651) 291-2894 Legislative News GMADA News ‘Tis the Season of (Political) GMADA Funds BBB Ad Giving Review Thank you to the 92 individuals who have The GMADA Board of Directors gave its contributed to CAR and DEAC, the state unanimous support to the BBB Automobile and federal political action committees of the Advertising Standards Program by providing . There is a lot of outside funding for the upcoming year. This financial money in politics and candidates need resources support will continue to fund the dedicated BBB to be able to counter the noise and control their staff to monitor and act on complaints related to own messaging. CAR and DEAC funds are used misleading motor vehicle the BBB auto to support pro-dealer candidates for office who advertising. want to work with the industry, not against it. So advertising program far this year, we have raised $40,150 from 27% The Better Business is an important asset of our members. With three months to go until Bureau auto advertising to the Minnesota the General Election, we need 100% member program is an important dealer community participation to make an impact and ensure the asset to the Minnesota voice of dealers is heard. Another round of dealer community. The BBB provides education invoices to members who haven’t made their for dealership employees. The Bureau provides CAR/DEAC contributions yet will be going out in same-day advance review of broadcast and September. Please respond with a donation so print ads, checking for compliance with the BBB we can elect a majority of pre-dealer candidates Code of Advertising, the Automobile Advertising to St. Paul and Washington this fall. Standards and Federal Trade Commission guidelines. In addition, the BBB requests substantiation of advertised claims and will examine any questionable advertisements or trade practices brought to its attention.

During the first 6 months of 2014, the BBB reports: • Prior-to-Publication Ad Reviews: 198 (15 dealers participated) The Minnesota Automobile Dealers Association is a • Ad Review Cases: 72 (63 dealers contacted) non-profit trade association dedicated to the progress of the retail auto industry in Minnesota. • Secret Shops: 37 (36 dealerships visited) President The BBB Automotive Liaison is Steve Farr. If Morrie Wagener, Morrie’s Automotive Group, Minnetonka you have concerns, questions or a complaint President-Elect Greg House, House Chevrolet, Stewartville about advertising, please contact Steve: sfarr@ Treasurer thefirstbbb.org or 651-695-2430. Mike Saxon, Inver Grove Ford Lincoln, Inver Grove Heights Secretary Rick Jensen, Jensen Motors, Inc., New Ulm Executive Vice President Scott Lambert, MADA

200 Lothenbach Avenue • West St. Paul, MN 55118 Metro: 651-291-2400 • Toll Free: 800-652-9029 FAX: 651-291-2894 • Web site: http://www.mada.org

August 2014 / Page 2 Minnesota Dealers Prepare... continued from cover Industry News petition, it’s typically 42 days until the actual Minnesota’s TIME election occurs. Dealer of the Year However, the NLRB proposed changing the election rules. Under the proposed rule, elections candidate chosen could be held as soon as 10 to 21 days after the The Selection Committee reviewed all of the union files the petition with the NLRB. These nominations made by MADA members and a very “quickie” elections are unfortunate for dealerships qualified candidate has been chosen. and their employees; there’s just not enough time to fully discuss and air out the issues. The honor has gone to Todd Snell of Snell Indoor Auto Center in Mankato. The TMQDA program Although the “quickie” election rules are not recognizes outstanding new car dealers for final, Minnesota dealers are getting prepared. exceptional performance in their business and for GMADA labor attorney, Steve Burton conducted distinguished community service. a very well attended seminar earlier this month. One of his main points is that dealers should be The Time Dealer of the Year will be announced at carrying a favorable message to their employees the opening ceremony of the NADA Convention, all the time. His recommendations included a Friday, Jan. 23, 2015 at the Moscone Center in “top down” philosophy of fairness, managing by San Francisco, CA. walking around, maintaining competitive wages and benefits and setting clear expectations for supervisors regarding positive employee relations. A webinar recording of this program is available; contact [email protected].

Legislative News It’s Johnson vs Dayton in November On Aug. 12, Republican voters picked Jeff have given him the upper hand, as he benefited Johnson as their candidate for Governor. from party resources such as voter lists and Johnson, a former legislator and current get out the vote efforts. Johnson received just Hennepin County Commissioner, will face over 30% of the vote, with Zellers trailing by 6%, Governor Mark Dayton in the November General followed by Marty and Honour. Election. The primary election caps off months of speculation about who would challenge Dayton, MADA has a strong relationship with Johnson, as as four GOP candidates vied for the job: Johnson, he authored our pivotal eminent domain reform Former House Speaker Kurt Zellers, former in the 2006 legislative session. Over the next Representative Marty Seifert, and businessman three months, expect the campaigns to heat up Scott Honour. The campaign was low-key and along with the rhetoric. Within hours of the polls uneventful, with no breakout candidate as the four closing, pro-DFL expenditure groups had already focused on beating up Dayton rather than each launched online attack ads against Johnson – other. with many more to come. Johnson received the Republican endorsement at the party’s May convention – and this appears to

August 2014 / Page 3 Legislative News Unclaimed Property Reports Due October 31st Dealers with unclaimed property to report - unclaimed property statutes. In addition to the or who receive a reporting notice from the Department’s own audit team, third party auditors Minnesota Department of Commerce - are are being used on behalf of the Department to aid required to file an Unclaimed Property Report no the state in its enforcement of the statutes. later than Oct. 31, 2014. Your 2014 report should Dealers who believe they are out of compliance include items outstanding before June 30, 2011 with the statutes for one reason or another have that are still unclaimed. the ability to enter into the Department’s Voluntary Common types of unclaimed property for dealers Disclosure Program and report past unclaimed include accounts payable vendor checks, property free from penalties and interest while customer credit balances, service contract limiting the amount of time they need to look back refunds, DVS fee refunds and prepaid order at old records. out parts. Property is typically considered Check the Minnesota Department of Commerce abandoned when the account is three or more website for additional information at years old. http://bit.ly/14WmPdB. Or get the MADA recorded The Department has implemented an audit seminar about Unclaimed Property at program in order to enforce Minnesota’s http://bit.ly/Xw5WEf

visit us online at www.mada.org

MADA News NADA 2015 Convention NADA has announced the details of the 2015 NADA Convention and Expo in San Francisco. The Convention has moved to a Thursday-to-Sunday schedule starting in 2015 (January 22-25). Watch for registration materials coming to you from NADA. MADA is very happy to announce that our popular member brunch will be held on Sunday, Jan. 25 from 11am – 2pm atop Nob Hill at the Fairmont San Francisco’s Crown Room. This location boasts some of the most spectacular views of the city and the bay. Be sure to put this on your schedule of activities at the NADA Convention.

August 2014 / Page 4 Released by: Minnesota Auto Outlook Minnesota Automobile Dealers Association Covering the Minnesota automotive market Data thru June 2014

Minnesota New Retail Car and Light Truck Registrations Most Recent Two Months YTD thru June* YTD Market Share (thru June)* 5/13 & 5/14 & % % 6/13 6/14* change 2013 2014 change 2013 2014 change Industry Total 33,462 35,553 6.2% 98,115 99,213 1.1% 14,823 14,817 0.0% 41,572 38,482 -7.4% 42.4 38.8 -3.6 Light Trucks 18,639 20,736 11.3% 56,543 60,731 7.4% 57.6 61.2 3.6

Japanese Brands 11,531 12,542 8.8% 32,247 34,241 6.2% 32.9 34.5 1.6 Toyota 4,471 4,650 4.0% 12,267 12,215 -0.4% 12.5 12.3 -0.2 Honda 3,338 3,573 7.0% 8,911 9,232 3.6% 9.1 9.3 0.2 Nissan 1,639 1,817 10.9% 4,852 5,286 8.9% 4.9 5.3 0.4 Other 2,083 2,502 20.1% 6,217 7,508 20.8% 6.3 7.6 1.3

Domestic Brands 17,048 18,114 6.3% 52,049 52,275 0.4% 53.0 52.7 -0.3 6,999 7,317 4.5% 21,887 21,264 -2.8% 22.3 21.4 -0.9 Ford 6,370 6,441 1.1% 19,227 18,525 -3.7% 19.6 18.7 -0.9 3,650 4,325 18.5% 10,834 12,396 14.4% 11.0 12.5 1.5 Other 29 31 6.9% 101 90 -10.9% 0.1 0.1 0.0

European Brands 2,415 2,343 -3.0% 6,748 6,067 -10.1% 6.9 6.1 -0.8 Volkswagen 1,188 1,153 -2.9% 3,251 3,018 -7.2% 3.3 3.0 -0.3 BMW 643 544 -15.4% 1,837 1,392 -24.2% 1.9 1.4 -0.5 Mercedes 321 402 25.2% 887 1,003 13.1% 0.9 1.0 0.1 Other 263 244 -7.2% 773 654 -15.4% 0.8 0.7 -0.1

Korean Brands 2,468 2,554 3.5% 7,071 6,630 -6.2% 7.2 6.7 -0.5 Brands included above: Domestic Brands: GM (Buick, Cadillac, Chevrolet, and GMC), Ford (Ford and Lincoln), Chrysler (Chrysler, Dodge, and Jeep). Japanese: Toyota (Toyota, Lexus, and Scion), Honda (Honda and Acura), Nissan (Nissan and Infiniti), Other (Mazda, Mitsubishi, , and Suzuki). European: VW (Audi, , and Volkswagen), BMW (BMW, Rolls Royce, and ), MB (Mercedes Benz), Other (, Ferrari, Fiat, Jaguar, Land , Lotus, , and Volvo). Korean: Hyundai and Kia. *Figures for June 2014 were estimated by Auto Outlook. Data Source: Polk.

Percent Change in Three Month Moving Average of Percent Change in State and U.S. New Retail Registrations versus Same Period Year Earlier New Retail Light Vehicle Markets YTD ‘14 thru June* vs. YTD ‘13 40.0% 33.0%

30.0% 23.7% 23.8% 23.1% -7.4% State 20.0% 7.4%

10.0% 4.1% % change vs. year earlier 0.0% Cars -1.0% -2.3% 0.6% -4.8% -3.3% Trucks -10.0% -6.8% U.S. -8.6% -9.2% 8.7% -20.0% Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14Jun-14* Last month in period -15.0% -5.0% 5.0% 15.0% 25.0%

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 The graph above compares the change in new retail car and light month moving average is less erratic than monthly registrations, which can fluctuate due to such factors as truck registrations in both the state and U.S. markets. the timing of manufacturer incentive programs, weather and title processing delays by governmental agencies. *Figures for June 2014 were estimated by Auto Outlook. *Figures for June 2014 were estimated by Auto Outlook. Data Source: Polk. Data Source: Polk.

Data Information All 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: Polk.

August 2014 / Page 5 Minnesota Auto Outlook Data thru June 2014

Minnesota New Retail Light Vehicle Registrations State Market Share for Top 15 Selling Brands Registrations Market share YTD ‘14 thru June* vs. YTD ‘13 YTD '13 YTD '14 YTD '13 YTD '14 thru June thru June* % change thru June thru June* TOTAL 98,115 99,213 1% 18.1 Acura 701 818 17% 0.7% 0.8% Ford 19.0 Audi 695 845 22% 0.7% 0.9% BMW 1,420 1,160 -18% 1.4% 1.2% Buick 2,002 1,949 -3% 2.0% 2.0% 15.1 Cadillac 691 693 0% 0.7% 0.7% Chevrolet 16.0 Chevrolet 15,655 14,972 -4% 16.0% 15.1% Chrysler 2,054 1,588 -23% 2.1% 1.6% 11.3 Dodge 3,548 3,459 -3% 3.6% 3.5% Toyota 11.5 FIAT 159 132 -17% 0.2% 0.1% Ford 18,686 17,991 -4% 19.0% 18.1% GMC 3,539 3,690 4% 3.6% 3.7% 8.5 Honda 8,210 8,427 3% 8.4% 8.5% Honda 8.4 Hyundai 3,326 3,094 -7% 3.4% 3.1% Infiniti 410 430 5% 0.4% 0.4% 4.9 Jaguar 23 27 17% 0.0% 0.0% Nissan 4.5 Jeep 2,532 3,988 58% 2.6% 4.0% Kia 3,745 3,537 -6% 3.8% 3.6% 191 184 -4% 0.2% 0.2% 4.5 Lexus 968 1,040 7% 1.0% 1.0% Subaru 3.8 Lincoln 541 528 -2% 0.6% 0.5% Mazda 1,961 2,150 10% 2.0% 2.2% 4.0 Mercedes 880 977 11% 0.9% 1.0% Jeep 2.6 MINI 417 227 -46% 0.4% 0.2% Mitsubishi 428 918 114% 0.4% 0.9% Nissan 4,442 4,846 9% 4.5% 4.9% 3.7 Other 172 125 -27% 0.2% 0.1% GMC 3.6 Porsche 109 129 18% 0.1% 0.1% Ram 2,700 3,350 24% 2.8% 3.4% 3.6 Subaru 3,746 4,438 18% 3.8% 4.5% Kia 3.8 Tesla 42 34 -19% 0.0% 0.0% Toyota 11,299 11,177 -1% 11.5% 11.3% Volkswagen 2,447 2,021 -17% 2.5% 2.0% 3.5 Volvo 376 269 -28% 0.4% 0.3% Dodge 3.6

Top ten ranked brands in each percent change category are shaded green. 3.4 *Figures for June 2014 were estimated by Auto Outlook. Ram 2.8 Source: Polk YTD '14 thru 3.1 June* Hyundai 3.4 YTD '13 thru June 2.2 Mazda 2.0 This report is sponsored by the Minnesota Automobile Dealers Association and produced by Auto Outlook (800-206-0102). 2.0 Auto Outlook, Inc. is not responsible for management decisions based on the con- Volkswagen tent of Minnesota Auto Outlook. Copyright Auto Outlook, July 2014. 2.5

2.0 Reproduction, including photocopying of this publication in whole or in Buick 2.0 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- 0.0 5.0 10.0 15.0 20.0 ers Association and must also include the statement: “Data Source: Polk.” Market Share *Figures for June 2014 were estimated by Auto Outlook. Source: Polk.

August 2014 / Page 6 Member News Feldmann Nissan in Bloomington has been purchased by Steve McDaniels, Midwest Motors Group and will do business as Eden Prairie Nissan. The business will be move to Eden Prairie in the Endorsed Service & Vendors future. Computerized Vehicle Registration CVR Jerry Aman of the Manheim Auto Auctions has retired after 43 F&I Products years with the company. Carter Theissen will take over the GM Protective position at both Manheim Minneapolis and Manheim Northstar Dealership Marketing Auto Auctions. Visible Customer Group Health Insurance Blue Cross Blue Shield of MN Delta Dental ReliaStar Life Workers Compensation Ensure Agency Dealer Bond Program “Obama specializes in Ensure Agency knocking down straw men. ‘I Collections reject the view that says our Springer Collections Check Guarantee/Credit Card Processing problems will simply take FIS / Certegy care of themselves,’ he said, Disability Income Insurance & Section 125 Cafeteria Plans implying that’s the view of Republicans. American Fidelity Assurance It’s the view of almost no one.” OSHA, EPA & DOT Compliance/Training --Fred Barnes ComplyNet Corporation Fleet Fueling Program SuperAmerica MADA Annual Meeting Keynote Speaker Fred Barnes on Office Supplies Friday, Dec. 5th. Mark your calendar now. S & T Office Products Uniforms and Linen Services AmeriPride Linen & Apparel Services Hole-In-One Insurance Hole-In-One-USA Pre-Paid Legal, Jim Gavin Identity Theft Shield & FAQ Pre-Paid Legal Services Q: Please repeat the new minimum wage rates effective Aug. 1, 2014 for Minnesota new vehicle dealers.

$8.00 - General minimum hourly rate for full and part time MADA Services sells a wide variety of A: products directly to the dealers including employees business forms, clothing and promotional $7.25 - Youths ages 17 and under items. For a full review of options, contact your sales representative at 651-291-2400 $6.50 - Youths ages 19 and under during the first 90 days of or go to www.mada.org employment

August 2014 / Page 7 200 Lothenbach Avenue West St. Paul, MN 55118

ADVOCACY • EXPERTISE • EDUCATION • COMMUNICATION MADA NEWS • AUGUST 2014

2nd Annual MADA Council Event

The Council will be holding this popular event on Wednesday, Oct. 8. Watch for registration materials early September, but mark your calendars now! Don’t miss it!

Collision & Service Council

Scott Lambert, Executive Vice President • 200 Lothenbach Ave. • West St. Paul, MN 55118 • (651) 291-2400 • 1-800-652-9029 • FAX (651) 291-2894 Education Fax Registration FAX REGISTRATION TO: 651-291-2894 Denise Anderson [email protected]

Class Options Circle Preferred Date Location OSHA and Your OSHA and Your Automotive Lifts - Webinar Automotive 10:00 a.m. – 11:00 a.m. September 4, 2014 Webinar Free to Council Members Lifts $49 non-members

Class Options Circle Preferred Date Location Doubletree by Hilton - Title Basics – Minneapolis September 9, 2014 Park Place Title Basics 9:30 a.m. - 11:30 a.m. $199 1500 Park Place Blvd Minneapolis, MN 55416 Title Basics –Brainerd Grand View Lodge September 18, 2014 23521 Nokomis Ave 1:00 p.m. - 3:00 p.m. $199 Nisswa, MN 56468

Class Options Circle Preferred Date Location Sales Tax The Certified September 9, 2014 9:00 a.m. - 10:00 a.m. $99 Title & Doubletree by Hilton - New to Fleet September 9, 2014 Park Place Registration 10:30 a.m. - 12:30 p.m. $99 1500 Park Place Blvd Program Minneapolis, MN 55416 Minnesota Titles and Transfers September 9, 2014 1:00 p.m. – 3:00 p.m. $99

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Name______Title______

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For Information on these classes or to register online go to www.mada.org/training

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