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CELEBRATING 100 YEARS OF SUPPORTING DEALERS LIKE YOU.
On May 19, 1921 the Michigan Automobile Trade MADA Fast Facts Association was incorporated. In 1937 the January 8, 2021 • Vol. 23, No. 1 association moved from Detroit to Lansing and changed its name to the Michigan Automobile Dealers Association.
NEWSLETTER SPONSOR 100100 YEARS!YEARS! 2021 welcome from incoming president, Bill Perkins
What an honor to serve as the MADA president during our 100th anniversary!
Specialized Dealer-ops Insurer | Robust We are starting this momentous year, F&I offerings following one of the most challenging times for businesses and employees in Side-by-side & virtual training… recent history. COVID-19 impacted F&I, Sales, Service Advisor nearly every person across the globe in Traditional F&I products & Vehicle one way or another. Throughout that marketing programs time, this association worked a lot of 6 Profit participation options - long days to advocate for dealerships, unprecedented returns obtain information and interpret All products built, backed & continuously changing regulations and administered by 1 source guidelines. I have never depended on the association more than I did in 2020. Stop the confusion. Eliminate the middleman. GO DIRECT! zurichna.com continue reading below
Based on the quick responsiveness of dealers to this year's MADA membership renewal, nearly every franchised dealer in Michigan feels the same way.
Thank you for showing how much you value MADA's services!
MADA is YOUR association. Our only focus is new car and truck dealers in Michigan, which means your business is always our top priority. So make sure you are getting the most of your membership.
Give us a call (800.292.1923) or email when you have a question or need assistance. Read our weekly newsletter and occasional advisories, and let us know if there is a topic you want covered. Chances are, if you are curious, 100 other dealers in Michigan are looking for clarification about the same thing. We are here to support you and your entire dealership team.
Thank you for celebrating 100 years with us in 2021. I'm excited to see what's in store for the automotive industry this year!
P.S. We'd like to share other "100 years" photos in the upcoming issues of this newsletter. Have a historical photo to share or maybe something from a past association event? Email it to [email protected] with a brief description and we would be happy to include it.
WHAT'S NEW IN 2021?
Is Your Bank or Auction Requiring Proof of License Renewal?
We have heard from a number of dealers whose auction or financial institution is requiring proof of dealer license renewal. As MADA and the SOS notified dealers previously, COVID-19 has caused SOS delays in processing and mailing some 2021 dealer licenses. As long as the appropriate renewal application and payment was received prior to the expiration date, the state will consider the dealer active, and the state's website will continue to show the dealer’s status as “Active” with an Expiration date of “31-Dec-2020.”
The state understands this is a challenge, and to assist dealers in communicating with banks/auctions, the SOS has prepared a document that dealers can provide to those requiring proof of renewal. Here's what to do...
Print this SOS letter: continuation of dealer license pending renewal
Print a copy of your license status from CARS eServices You do not need to be logged into your account Go to Business Services > Dealer Services > Search Dealer > enter your Dealer Number (keep other fields empty) > Search Print the page, showing your dealership name and active license status
Provide the two pages to those requiring proof that your dealer license is active.
If your dealer license status shows "expired" on the eServices website, please contact MADA at (800) 292-1923 or email [email protected].
New Version of RD-108, Updated Dealer Manual
As we previously notified dealers, the new version of the RD-108 must now be in use. Chapter 7 of the Dealer Manual has also been updated to reflect the new RD-108, the new plate transfer fee, and references how to use your eServices account to obtain plate fees. (The Business Regulation Section emailed licensed dealers on Wednesday with a detailed list of Chapter 7 updates. Please email MADA if you need another copy.)
Dealer Manual, Chapter 7 (Rev. Jan. 2021) RD-108 (Rev. 12/3/2020) Video walk-through of changes Additional Dealer Manual & Repair Facility Manual Updates Make sure your printed copies are current!
A new year is a good time to compare all chapters of your printed versions of the Dealer Manual and Repair Facility Manual to the most current versions posted online. (The repair manual was fully updated in Dec. 2020 to incorporate various housekeeping issues.)
The Michigan Department of State reminds dealers that changes in law or policy may require periodic updates to the Dealer Manual and the Repair Facility Manual. Revised chapters are no longer mailed to licensees.
CONFIRMED: Minimum Wage Remains $9.65/hr in 2021
There is no increase to the minimum wage in 2021. The wage increase is tied to a calculation based on unemployment rate and it did not validate an increase this year.
Michigan's Minimum Wage & Overtime web page Revised Michigan Employment Law Poster (dated 1/2021)
New Federal Odometer Rule for 2011 & Newer Model Years
There are new requirements in place for odometer disclosure upon a transfer of vehicle ownership. The new federal rules require a seller to disclose the mileage of the vehicle being sold for a period of 20 years following the production model year of the vehicle (previously 10 years).
As of Jan. 1, 2021, model year 2011 vehicles become subject to the new rule, requiring odometer disclosure for those vehicles when sold, through calendar year 2031 (20 years).
The new rule will be handled on a phase-in process, so one model year will be added to the rule each year (i.e. model year 2012 is added in 2022, etc.), until all model years are phased into the 20 year disclosure rule.
Model year 2010 and older vehicles are EXEMPT from odometer disclosure requirements. Mileage disclosure at time of ownership transfer is voluntary.
Questions? Email [email protected]
CVR Inventory Count Jan. 12; Obsolete Tabs Must Be Returned
Side Note: check the date on your CVR dealer stamp. If the year has expired please contact Jill Wigger, CVR Account Executive, at [email protected] to request an updated stamp.
Jan. 12 Count Day Instructions
Dealers are reminded to submit the Q1 inventory count on Tuesday, January 12, 2021, before processing any new CVR transactions. Dealers will not be able to process CVR transactions until the count is submitted. 1. Print an inventory available report from the CVR computer.
2. Verify the report by physically checking the actual inventory to ensure that each plate or tab/permit is present. Sealed boxes do not need to be opened, simply check the labeling on each package.
3. If there are no discrepancies between the printed report and the physical verification, type the inventory numbers (beginning, ending and totals for plates, tabs and permits) into the CVR system. Remember to enter each line separately.
4. Submit the report.
Dealers who do not submit the required information are in violation of their agreement with the Michigan Department of State and risk losing the ability to use the CVR program.
If you have questions, or if you are having difficulty meeting your requirements, please contact your CVR account representative or call CVR Support (800) 333-6995 so that we can help you stay in compliance.
Return Unused 2020 Serialized Tabs 2021 CVR Count Day Schedule Dealers are also reminded that obsolete tabs Q1- Tuesday, Jan. 12, 2021 must be returned to the CVR warehouse by Q2- Tuesday, Apr. 13, 2021 Jan. 22, 2021. See detailed instructions here. Q3- Tuesday, Jul. 13, 2021 Q4- Tuesday, Oct. 12, 2021 Need a handy CVR contact sheet? click here
HEADLINES FROM THE INTERNET news and information you may find interesting
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Read more Read more www.nicb.org www.fisherphillips.com Michigan Legislative News from MIRS
Provided by the Auto Dealers of Michigan, LLC
What 6 MI Residents Arrested On D.C. Have In Common Lasinski Calls For Resignations, Discipline In GOP Caucus Dems Call For Ban On Weapons Before Session Starts Why 60% Of MI’s Unemployed Are Temporarily Without Benefits KEEP READING
CALENDAR, REMINDERS & EDUCATIONAL OPPORTUNITIES
NADA (4-part series) 2021 Auto Executive Outlook The Presidential Transition: What Will it Mean for Franchised Dealers and the Country? Cyber Ransom: How You Can Protect Yourself and Your Dealership Consumer Outlook: Increasing Loyalty in the Next Your 2020 allotment of Chapter of Mobility dealer plates remains active Policy Outlook: What Changes Can Be Expected in through Feb. 28, 2021. The the New Administration? state continues to process and mail the new tabs for Plante Moran (Jan. 12) Personal wealth roundtable: 2021 dealer plates. in view ~ What does comprehensive wealth management look like in 2021? The Gov. has announced that Michiganders over age UHY (Jan. 14) 2021 Automotive Outlook ~ global auto 65 can receive the COVID- update, impact of electrification and sustainability 19 vaccine starting Jan. 11 strategies.
Question: Who may use a dealer plate?
Answer: The law defines “dealer” to include three types of individuals, beyond the dealers themselves, who may use a dealer plate: “employee, servant, or agent” of the dealer.
Simply being a family member does not permit a person to use a dealer plate. However, a family member may be considered an agent of the dealership if he or she is acting on behalf of the dealer. Family members who are not already employees of the dealership must be designated as agents in order to drive a dealer-plated vehicle.
As you will remember, in Jan. 2020 the Secretary of State issued updated guidance on proper use of dealer plates, including who may drive on a dealer plate, appropriate use of a dealer plate, and suggested documentation to keep in the vehicle.
As dealers are receiving 2021 dealer tabs to affix to their allotment of dealer plates, it's a good time to review the current rules for proper and improper use of dealer plates.
Definitions, for clarification: Please Click These Links! Employee: employed by the dealer DADA/MADA Dealer Plate for wages or salary Advisory (Dec. 2019) Agent: acts on behalf of a dealer Servant: performs duties for the dealer SOS Guidelines
WHEN YOU REVIEW YOUR VENDOR RELATIONSHIPS... please consider some of the many companies that support our association
With nearly 100 years of experience, Ally is one of the largest providers of ADESA Flint provides over 2,000 vehicles running automotive financing in the U.S. Our weekly in lane and on LiveBlock. Featuring GM extensive experience and deep (closed/open sales), Budget Truck Rental, understanding of the auto industry Chrysler Capital, credit acceptance/VRS, allow us to offer unrivaled expertise Enterprise, Fleet Lease Disposal, GM Financial, and support. www.ally.com GTB, PAR North America, U.S. Bank, U-Haul. Over 250 vehicles online on DealerBlock. www.adesa.com/Flint
Want to learn more? Email [email protected]
Michigan Automobile Dealers Association Have a topic suggestion for a future www.michiganada.org newsletter? Send us your ideas. Trouble viewing this message? View as Webpage
The original 1907 business card for a young Guy. S CELEBRATING 100 YEARS OF Garber. He was one of the original 13 Buick SUPPORTING DEALERS LIKE YOU. distributors, personally hired by William (Billy) Durant, founder of General Motors. Mr. Garber would later become the first president of MADA. (photo provided by Garber Management Group) MADA Fast Facts January 15, 2021 • Vol. 23, No. 2
NEWSLETTER SPONSOR 2021 OFFICERS thank you for serving!
With 2020 now officially behind us, MADA would like to thank Mr. Steve Brown for serving as our 2020 association president. The "behind-the-scenes" effort this past year was more demanding Specialized Dealer-ops Insurer | Robust than the average year! In addition to keeping his Petoskey dealership F&I offerings operating during a pandemic, Mr. Brown made himself available Side-by-side & virtual training… whenever the association needed his F&I, Sales, Service Advisor input, guidance and advocacy. Traditional F&I products & Vehicle marketing programs We appreciate his commitment to 6 Profit participation options - dealers throughout Michigan and look unprecedented returns forward to working with him in his final All products built, backed & year on the executive committee, as he administered by 1 source transitions into his role as MADA's immediate past president. Stop the confusion. Eliminate the middleman. GO DIRECT. zurichna.com continue reading below
2021 MADA Executive Leadership Team
Each year, the MADA executive committee works closely with the MADA board and association staff to guide and advise on issues important to dealers. They communicate with their colleagues around the state, speak to government officials when regulatory topics require dealer involvement, help guide association policies and procedures, and stay informed on many other topics and issues. The support and involvement of these individuals is critical to the success of our association and helps us maintain a positive and prominent presence in Michigan. Next time you have the opportunity to speak with the following dealers, please express your appreciation for their leadership.
President Bill Perkins Second Vice President Chris Graff First Vice President Cliff Cicotte Immediate Past President Steve Brown
MOTOR BELLA 2021 - AN OUTDOOR MULTI-SENSORY EXPERIENCE
A New Mobility Event While NAIAS Pauses for 2021
The North American International Auto Show (NAIAS) announced it will not hold its 2021 auto show as planned. Instead, show officials revealed a “bridge to the future” with an auto-centric event called Motor Bella. The new event will bring next- generation mobility and exciting vehicle debuts to media, show-goers and the automotive enthusiasts’ world in a never before experienced way while also addressing continued COVID-19 concerns about indoor events.
All-outdoor venue with track activities and a full complement of OEM and technology exhibits 1.6 million square feet of dynamic vehicle and technology display space including terrain ideal for showcasing off-roading capabilities 1.5-mile hot track on the grounds for technology and vehicle demonstrations Offers the sights, sounds and even the smell of all that the new world of mobility has to offer
Motor Bella will be held from Sept. 21-26, 2021, at the M1 Concourse in Pontiac, often referred to as an “87-acre playground for auto enthusiasts.”
AutoMobili-D, Tuesday, Sept. 21 through a half-day Thursday, Sept. 23 Industry Preview, Wednesday, Sept. 22 and a half-day Thursday, Sept. 23 Public Show, Thursday, Sept. 23 through Sunday, Sept. 26
A charity initiative will also be part of the six-day Motor Bella.
COVID-19 Vaccines & Registration Schedule
Most local Michigan health departments have moved into Phase 1B of the COVID-19 vaccine timeline (click here or see graphic below) and many are also scheduling vaccines for residents 65+. Guidelines differ from one county to the next so please refer to the health department in which you live or work to see the specific requirements.
Some health departments also have a registration option to notify residents when they become eligible for the vaccine. View the Michigan vaccine webpage here for links to all local health departments (scroll down the page a bit). Please note that it is requested that individuals do not call their local health departments for information unless the department has listed a phone number on the page linked above. Form 8300 Cash Reporting Customer Notification
As part of the IRS cash reporting rule, on or before the January 31st following the calendar year for which the Form 8300 was filed, dealerships must provide a written statement to each individual who has been identified on a Form 8300.
Therefore, for transactions that were reported to the IRS for 2020, it is necessary to inform any customer of the Form 8300 filing on or before January 31, 2021. This notification must include the name, telephone number and address of the dealership, the amount of cash that was received by the dealership and that the information has been reported to the IRS. Please note: The law requires written notification. Merely informing the customer at the time of the sale that you will be filing the Form 8300 is not sufficient. If you sent the customer the notice letter at the time of the transaction, you do not need to send a notice at this time.
Click Here for a sample letter that the dealership can use to notify the customer of the Form 8300 reporting. Failure to send written notice to customers as specified above can result in civil penalties ranging from $250 to $500 per customer. The IRS recommends that businesses keep a copy of every Form 8300 it files and the required statement sent to each customer for at least five years from the date filed.
NADA Issues Analysis of 2020 Auto Sales, 2021 Sales Forecast
2020 came to a close with new-light vehicle sales of 14.46 million units, down 14.7% compared to 2019
The National Automobile Dealers Association (NADA) issued its 2020 analysis of U.S. auto sales and the economy.
“The coronavirus pandemic certainly impacted new light-vehicle sales in 2020, not to mention the U.S. economy as a whole,” said NADA chief economist Patrick Manzi. “Our forecast at the start of 2020 estimated new light-vehicle sales would fall by one to two percent compared to 2019 for a total of 16.8 million units sold, but once COVID hit, we knew this would be a different year than anticipated.”
2020 came to a close with new-light vehicle sales of 14.46 million units, down 14.7% compared to 2019. Despite the lowest monthly SAAR on record of 8.7 million units in April, signs of the new-vehicle sales recovery began in the second half of the year as retail consumers returned to dealer lots. While the overall new-vehicle market fell by 14.7%, consumer retail sales only declined by an estimated 9%.
Given a stronger than anticipated sales recovery, manufacturing facility shutdowns, and robust new-vehicle demand, most U.S. dealerships faced significant inventory constrains on popular models and popular segments during the second half of the year, including crossovers and pickups.
By mid-summer, tight inventory meant that OEMs and dealers pulled back incentive spending. Coupled with consumer preferences for more expensive light-trucks, this pushed average transaction prices to record highs throughout the year.
In March, the Federal Reserve slashed interest rates to the 0% to 0.25% lower bound, helping vehicle buyers...
Keep reading More from NADA: Virtual NADA Show, Feb. 9-11 here Make new connections and enjoy games and entertainment at the receptions and happy hours Franchise meetings offer dealers prime opportunity to connect and ask OEMs Sneak peek to many of the features of the virtual NADA Show platform
HEADLINES FROM THE INTERNET news and information you may find interesting
Fire station, school among 8 Michigan workplaces fined... Michigan's Slow Economic Momentum is Not Wholly... Michigan has issued eight workplaces, including a school district and fire Michigan’s economic activity is department, citations totalling more lagging that of most other states, but than $25,000 for failing to meet the state government has been able coronavirus safety precautions. In to manage its finances, balance its another round of COVID-19 safety budget, and minimize fiscal stress. This fines, the eight businesses were... is the finding of...
Read more Read more www.freep.com crcmich.org Michigan Legislative News from MIRS
Provided by the Auto Dealers of Michigan, LLC
Snyder, Ex-State Officials Arraigned On Charges In Flint Water Crisis Detroit Chamber Calls Charges Against Snyder 'Incredulous' KEEP Revenues Are Going Up; Are Happy Days Here Again? READING Washtenaw County Decriminalizes Consensual Sex Work
CALENDAR, REMINDERS & EDUCATIONAL OPPORTUNITIES
Deadline Reminders NADA (Jan. 27) Protecting Your Dealership From Cyber Threats Michigan: driver's licenses and vehicle registrations that expired on or after BCBS (Jan. 21) Stay motivated and keep your March 1, 2020 are valid until March 31, 2021 physical, mental and dietary goals on 2021. (See SB 73) track with the weekly BCBS webinar chat. Register now for next week's 30 minute session . Federal: while no longer mandatory, employers who voluntarily provide (Jan 21, 9-9:30 am) DADA invites emergency paid leave to eligible dealers to a virtual legislative employees (as though FFCRA had presentation. Q'd Up will begin been extended) will continue to with "The Berryman Top 5" from receive reimbursement from the the Capitol, an update of 5 federal government through tax things you must know from Lansing, followed by credits and/or refunds through March a live interview and Q&A with Senate Minority 31, 2021. (See US DOL #104) Leader Jim Ananich.
WHEN YOU REVIEW YOUR VENDOR RELATIONSHIPS... please consider some of the many companies that support our association
The automotive sector is on the rebound, with OEMs and dealerships in all tiers working through recovery from the global pandemic that shook the market. Automotive retailers are adjusting to a “new normal” that’s here to stay as the industry transforms.
Forward-thinking auto brands are staying two steps ahead of consumer expectations, changing the way cars are sold by rolling out innovative technology – both online and offline – and challenging the traditional dealer franchise system. Combined with maintaining ad spend and visibility, strategic auto dealers are successfully continuing to grow throughout the pandemic. Download this guide with key marketing learnings.
Michigan Automobile Dealers Association Have a topic suggestion for a future www.michiganada.org newsletter? Send us your ideas. Trouble viewing this message? View as Webpage
CELEBRATING 100 YEARS OF SUPPORTING DEALERS LIKE YOU.
July 1936 Motor Age magazine ad featuring Snethkamp Auto Sales on Gratiot Ave. in Detroit. MADA Fast Facts (Photo provided by Snethkamp Automotive Family. January 22, 2021 • Vol. 23, No. 3 Click image to see full advertisement.)
NEWSLETTER SPONSOR 21 FOR '21 Legal Update from Charapp & Weiss, LLP
What a difference a year makes. Last year’s article, Twenty for ’20, was upbeat. It warned of challenges for Specialized Dealer-ops Insurer | Robust dealers but noted that dealers’ F&I offerings resiliency would lead them to success because of the strength of the overall Side-by-side & virtual training… economy. F&I, Sales, Service Advisor Traditional F&I products & Vehicle We could not foresee how resilient marketing programs dealers would have to be. Once the 6 Profit participation options - pandemic struck, dealers had to unprecedented returns change to address limitations imposed All products built, backed & at the federal, state, and local levels administered by 1 source and dramatically different consumer behavior. Stop the confusion. Eliminate the middleman. GO DIRECT. zurichna.com keep reading below
2021 brings a new set of challenges
It is not clear when the pandemic conditions will finally recede. The pandemic is not the biggest driver of challenges for 2021, however. The federal election results will have an enormous impact on dealers and will require them to change the way they have done business over the last four years.
ELECTION FALLOUT. From 2008 to 2016, dealers dealt with significant changes in the way they had to do business because of federal mandates. The last four years saw a dramatic shift away from those mandates. Given the results of the 2020 federal election, however, the 2008-2016 mandates are coming back, and dealers must know what they must do.
1. Use a Fair Lending Program. The last four years saw a change in emphasis on fair lending programs. Earlier, the Consumer Financial Protection Bureau had challenged dealer reserve practices. The CFPB actions were highly controversial and ultimately led to congressional disapproval of the CFPB’s attempt at regulation. To deal with the criticisms, the National Automobile Dealers Association developed a template program for fair lending. It requires a dealer to establish a standard starting point above buy rate for all customers, with downward deviations for non-discriminatory factors. Fair lending oversight at the federal level is returning. If you did not adopt a policy, or if you adopted one and stopped using it because of lack of emphasis by the Trump administration, take steps to adopt the NADA Fair Lending Policy.
2. Sale of Voluntary Protection Products. Before the inauguration of the Trump administration, the federal government was reviewing pricing practices for voluntary protection products such as extended service contracts and GAP. The regulators claimed that inflated pricing was evidence of credit discrimination, since one has to analyze the overall costs of lending for a vehicle buyer under credit discrimination laws. To answer the criticisms, NADA, along with the National Association of Minority Auto Dealers, developed a template program for sale of voluntary...
Keep reading here for all 21 issues to consider in 2021, including more on election fallout, as well as:
POST-PANDEMIC OPERATIONS. Dealers were consumed in 2020 by the pandemic. For much of 2021 they will face similar concerns. However, there will come a point when dealers need to look beyond the pandemic to see what changes will be permanent and how to adjust to those.
FRANCHISE CHALLENGES. Vehicle manufacturers and distributors were not exempt from pandemic-driven changes. Changes undercut many assumptions that drive manufacturer policies, yet they will continue to insist on implementation of policies to achieve their goals.
Additional resources from NADA (login codes required):
Fair Credit Compliance Policy & Program A Dealer Guide to Federal Truth in Lending Requirements Voluntary Protection Products: A Model Dealership Policy A Dealer Guide to Federal Advertising Requirements
Saturday, January 23, 11:00 am - 1:00 pm Planned outage for SOS MiLogin affects eServices
On Saturday, January 23, 2021, there is a planned outage of MiLogin from 11:00 am to 1:00 pm for system upgrades. During this period, users will not be able utilize MiLogin to access their dealer eServices account. However, if an authorized user logs into their eServices account prior to 11:00 am they will be able to maintain account access.
Please note, eServices is programmed to automatically log a user off after 30 minutes of inactivity. If a user selects anything on the eServices screen before 30 minutes has lapsed they will remain logged in. Failure to maintain activity on the eServices screen for 30 minutes or more will automatically log the user off. The user will not be able to log back in until MiLogin is operational again, after 1:00pm.
The state appreciates your understanding and apologizes for any inconvenience this may cause. Please contact the Business Regulation Section at [email protected] with any questions you may have regarding the MiLogin planned outage.
Seeking Input: are there other ways MADA can support your dealership?
The COVID-19 pandemic forced some quick rethinking of business operations last year. We all learned a lot - what worked, what didn't, what we need to do differently. Now that business is getting back to whatever "normal" is, we ask you to reflect on your relationship with MADA. We'd like your feedback on what benefits of our service you have found really helpful. On the other end, what else could we do to bring more support to you and your team? We are completely open to your thoughts and suggestions - big ideas or small changes.
We created this short, anonymous questionnaire to get your feedback.
ALERT: Catalytic Convertor Theft
A mid-Michigan dealer would like to alert MADA members that they recently had 10 catalytic convertors cutoff or attempted to be cutoff.
The local authorities have been notified, but as you know, this is likely not an individual incident. These criminals tend to target multiple dealerships.
Please contact MADA if you have questions. As always, thank you for keeping us informed so we are able to spread the news and hopefully minimize this activity.
MADA Partners with BCBSM to Help Members Maintain Their Health
Take charge of your health care plan
Many people use the new year as a fresh start to implement healthy goals, which makes this a great time to check out the tools in your online BCBS account. (And remind employees of the available resources.)
Find the right information to manage your health care plan and your health securely online. Use your Blue Cross member account to:
Check your coverage, claims and out-of-pocket *Cost estimates are balance. available for most non- Search and find an in-network primary doctor or Medicare members. specialist. Show your member ID card, and order more when you need them. Don’t have an account? Compare health care service costs* and doctor and Register for one hospital quality. Track authorizations and referrals, if your plan at bcbsm.com/register. requires them. Or, text REGISTER to Find savings on gym memberships, fitness gear, 222764. Message and recreation and more. Check your account. data rates may apply.
And, use MIBlue Virtual Assistant SM — an interactive, Visit bcbsm.com for Terms automated chat feature — to get answers fast to questions and Conditions of about your plan. Use and Privacy Practices.
In Memory: Tom Hallam
We are saddened to inform you that Thomas Hallam passed away on January 11, 2021 at the age of 72. Many of you know Tom from his years with Dealers Resources Inc., where he began working in December 1986. He joined Michigan dealers at numerous MADPAC golf outings and association meetings throughout his time with DRI.
Mr. Hallam is survived by his wife, Sharon; and children William (Jennifer) and Virginia. A private family memorial will be planned to honor Tom and his life at a future date. See his complete obituary here.
HEADLINES FROM THE INTERNET news and information you may find interesting
MDOT asks residents to help New Legal and Regulatory name snowplows Updates for Dealers...
MDOT is hopeful to name each of the Heading into a new year and a new more than 250 MDOT plows statewide presidential administration, dealers in the near future. Current snowplow can expect even more legislative and names include Plowasaurus Rex, regulatory activity in areas that will Winter Snowdier, Sir Salts-A-Lot, affect dealer operations in the coming Snowboni and - of course - Plowy months and years. At NADA Show McPlowface... 2021, our Legal and...
Read more Read more www.clickondetroit.com blog.nada.org Michigan Legislative News from MIRS
Provided by the Auto Dealers of Michigan, LLC
No House Freshman Chairs; First Time Since '09 What Industry Is Listed As Having The 3rd Most COVID Outbreaks? Hall: Johnson Will Keep Whitmer Administration 'Honest' As KEEP Oversight Head READING U.S. Attorney Resigns; Will Join Detroit Firm
CALENDAR, REMINDERS & EDUCATIONAL OPPORTUNITIES
Maximum allowable doc fee Cox Automotive (Jan. 25 - Feb. 5) A free, 10-day increased to $230 for 2021 and virtual event. Some of the best minds in the industry 2022. will share new insights on consumer behavior, dealership operations and the digital trends that will Fun side note -- MADA shares a shape the future of the industry. centennial anniversary with the DNR! In Feb. 1921, Gov. Alex NADA (Jan. 27) Protecting Your Dealership From Groesbeck sent bills to the Cyber Threats With 85% of car dealerships globally Legislature that provided for becoming victims of cybersecurity incidents, reorganization of numerous proactive preparedness is crucial to mitigating components of state government business risk. into three separate departments. Those bills created the state SOS (multiple dates) The Office of Investigative departments of agriculture, Services offers training to help repair facilities and industrial and labor, and their employees with their requirements under the conservation. Motor Vehicle Service and Repair Act. (Also check out this repair facility compliance checklist.)
WHEN YOU REVIEW YOUR VENDOR RELATIONSHIPS... please consider some of the many companies that support our association
An industry leader specializing in Retail Warranty Reimbursement submissions. Michigan based Finance & Insurance Armatus' proprietary software and data agency with over 120 years of combined management techniques offer clients the experience in the automotive sales and F&I only true mark-up and labor rate fields. Our mission is to bring to our clients a optimization process in the market. The level of intensity, process, and integrity Armatus team has extensive retail unsurpassed in the industry through automotive experience, superior continuous service, training, knowledge of manufacturer protocols, and implementation of the latest processes and has provided the framework for 10 retail technology, and regular guidance on warranty reimbursement industry best practices and compliance. statutes. www.dealeruplift.com www.associateddealer.com Trouble viewing this message? View as Webpage
While the family didn't begin selling CELEBRATING 100 YEARS OF automobiles until 1914, Schaefer & Bierlein in SUPPORTING DEALERS LIKE YOU. Frankenmuth has been around since 1852 when George M. Schaefer (second from left, next to son George A.) opened a blacksmith and woodworking shop. This photo was taken MADA Fast Facts in front of the shop on Main Street, near the January 29, 2021 • Vol. 23, No. 4 current Frankenmuth River Place Shops.
NEWSLETTER SPONSOR Feb.Feb. 9-119-11 NADA show 2021 is coming to a screen near you!
With this virtual platform, the whole dealership can attend and get The New Standard in Online Dealer convenient access to best-in-industry Auctions. ACV Auctions is a full-service, education. Every department from coast-to-coast, wholesale automotive marketing managers to parts and marketplace, providing unmatched service managers, the finance team transparency that thousands of dealers and sales can all access the tools to trust. Historically, buying and selling improve your store’s business now and in wholesale vehicles is time consuming, the months to come. expensive and loaded with risk. Our 20- minute online auction provides The new virtual format will allow access immediate access to thousands of to live sessions, plus on-demand access dealers while delivering trusted, ACV- after the Show. backed vehicle condition reports. ACVauctions.com continue reading below
There is still time to register for...
Exclusive keynote sessions, the latest industry news and updates, as well as tools and solutions for the new era of automotive business.
Attendees will still get all of the excitement you’ve come to expect from the NADA Show, including:
Distinguished Speaker Series More than 60 educational workshops and sessions; All of the franchise meetings with our OEM partners; An online NADA Expo – where business gets done; and Key industry news, networking opportunities and receptions you’ve come to expect at the Show.
The auto industry event of the year is coming directly to you and NADA can’t wait to have you at this first-ever virtual NADA Show.
P.S. NADA is offering advance orientation dates to give you a head start on understanding the virtual platform. You do not have to be registered to attend NADA Show orientation, so if you’re on the fence about registering, this is the full preview you’ve been waiting for!
News from NADA... OSHA Injury and Illness Electronic Reporting Deadline Looms
Dealerships required to electronically file 2020 employee workplace injury and illness records with the Occupational Safety and Health Administration must do so by March 2. The deadline for posting Form 300A in the workplace is Feb. 1. Form 300A must be posted in a location that is clearly visible to all employees and new applicants, and it must be kept posted until April 30.
Dealerships required to post and electronically file Form 300A (or state equivalent) include: Commercial-truck dealerships with 20 to 249 employees working at a single "establishment," defined as "a single location where business is conducted or where services or industrial operations are performed"; and Light-duty and commercial-truck dealerships with 250 or more employees at a single establishment.
Electronic filing must be done using OSHA's Injury Tracking Application. and a FAQ on the ITA submission process is available on OSHA's website. A North American Industry Classification System (NAICS) number is required for filing: commercial-truck dealerships are NAICS 42311; light-duty dealerships are NAICS 44111.
Light-duty dealerships with fewer than 250 employees at a single establishment must annually record workplace injuries and illnesses, but are not required to file electronically with OSHA. For more information on OSHA's injury and illness recordkeeping and reporting mandates, visit OSHA’s website or contact NADA Regulatory Affairs at [email protected].
Question: When do I renew my finance license for 2021?
Answer: To keep you on your toes, DIFS will revert back to renewing your installment seller license (finance license) and reporting your volume of activity at the same time. (Last year volume of activity was reported first, then license renewal at a later time.)
In the next few weeks, DIFS will EMAIL information about your ISL renewal and instructions for completing the volume of activity report. Once the department has confirmed the process and dates for 2021, MADA will also email our members and provide tips for completing your renewal paperwork and the accompanying report.
Here's what to do NOW: Confirm your dealership contact person. If your contact email for ISL renewals has changed since last year, please update MADA and we will pass the information on to DIFS. If changed, complete this form and return to MADA.
Check your access to the DIFS portal. (This is different than your SOS e-Services account.) The system automatically disables inactive user accounts and system accounts after a certain length of inactivity. If this happens, simply attempt to login. You will be taken through a process akin to the ‘forgot password’ process, after which a temporary password will be emailed to the address on file. Complete the sign in and change your password to reactivate your account. More information is available within the User Manual, here.
COVID-19 RESPONSE STRATEGY UNDER BIDEN ADMINISTRATION
National COVID-19 Response Strategy
Fisher Phillips has released new legal alerts, as the firm closely follows the workplace-related actions of the Biden administration.
The new administration's plan includes 12 initial executive actions, many of which have already been issued, and several of which could impact the workplace.
Snapshot of Biden’s Strategy. The Biden administration’s strategy is organized around seven goals which include:
Restoring trust with the American people; Mounting an effective and comprehensive vaccination campaign; Mitigating the spread the COVID-19 through masking, testing, and other standards; Expanding emergency relief under the Defense Production Act; Safely reopening schools, businesses, and travel while protecting workers; Protecting those most at risk and advancing equity across racial and ethnic lines; and Restoring U.S. leadership globally and building better preparedness for future threats
Employers will want to watch for the executive orders that follow from these seven goals as the new administration is moving quickly to put processes in plan to address the COVID-19 crisis. Several executive orders have already been issued putting these plans into motion. Should a temporary COVID-19 emergency standard be issued, employers will need to review and adapt their current plans to ensure compliance.
Full legal alert: President Biden Releases National COVID-19 Response Strategy Also see: Biden Administration Orders OSHA To Increase Enforcement Efforts, and What Will A Federal OSHA COVID-19 Emergency Temporary Standard Likely Require?
Auto Thefts Surge In 2020 According to New NICB Report
Thieves Exploit Opportunities
A preliminary analysis by the National Insurance Crime Bureau shows auto theft took a dramatic leap upward in 2020 compared to 2019, reversing two years of auto theft declines. According to its initial study, there were 873,080 auto thefts in 2020, a 9.2 percent increase over 2019 which had 799,644 thefts, a boost of more than 73,000 thefts.
“Preliminary reports indicate a sharp increase in automobile thefts for 2020,” said NICB President and CEO David Glawe. “All indications are 2020 will be the largest theft year in the past decade by a significant margin.”
According to the findings, every month in 2020 showed increases compared to 2019. Overall, the yearly increase was 9.2 percent, however each month from June through December showed double digit gains... keep reading here
Tips from an Auto Theft Police Team
This past year in Michigan, groups of teens and young 20-somethings repeatedly broke into dealerships, stole keys, drove through showroom doors if needed, then used the stolen vehicles to commit other crimes. Just last week a Michigan dealer alerted us to multiple catalytic converter thefts. (And we got a similar alert from the Missouri dealer association this week.) Criminals are becoming more brazen. The Kent County automotive theft team has informed local dealers that key control, accurate inventory systems and quality video systems are critical to those who want to help police and hold criminals accountable. They also said good lot lighting is important to make sure the cameras can capture clear images. Check out this helpful handout.
Specialized Lot Lighting to Drive Criminals Away
Unfortunately, we have heard from many dealers who have found it necessary to increase their vehicle security plans. While MADA does not endorse any particular security system company, we know many dealerships across the country are using ChaseLight™ from Trydon as a proactive deterrent network to drive criminals away before they do damage. This system utilizes existing outdoor lighting to continuously monitor dealership lots after hours. If a trespasser walks or drives under a light pole, ChaseLight flashes and sounds an alarm. If your dealership is considering improved lot lighting, you may want to give Trydon a call to learn more. See details here.
In Memory: James D. Vetter
With sadness, we inform you of the recent passing of James D. Vetter on January 9, 2021 at the age of 86. He was the former owner of Jim Vetter Chevrolet in Three Rivers (now Vetter-McGill Chevrolet). He purchased the dealership in 1971, after working a few years for General Motors. Mr. Vetter continued working at the dealership until he retired full-time at the age of 80.
He is survived by his wife, Roxie; daughters Terri Vetter (husband John) and Kimberly French (husband Paul).
There will be an open house to honor Jim’s life after the COVID-19 restrictions are lifted. Details will be posted at that time. Read his full obituary here.
HEADLINES AROUND THE INTERNET news and information you may find interesting
January 2021 Market Update
Traverse City's Auto History 2020 was a roller coaster ride, but in the end, it rewarded investors A speed limit of eight miles per hour. who stuck it out. Listen in as Traverse City's first automobile fatality. The CAPTRUST reviews the highs and Napoleon. A look back at the history of the lows of 2020 and outlines the automobile in Traverse City showcases impacts that policy changes from technological advances and business the new administration may have failures, the foibles of early driving... on the market.
Read more Read more www.traverseticker.com www.captrustadvice.com
CALENDAR, REMINDERS & EDUCATIONAL OPPORTUNITIES
Need an SOS appointment for one of the 700Credit (Feb. 2) DriveCentric and six types of in-person transactions? 700Credit have partnered to provide Remember that each branch opens a integrated credit, compliance and limited number of next-day appointments prescreen (soft pull) solutions for at 8am and noon. They are typically gone automotive dealers. within an hour! Schedule here. NADA (Feb. 17) Retention, The Fuel To Feed (Feb. 4, 9-9:30 am) DADA Recovery in 2021 This data-driven invites Michigan dealers to presentation will dive into what happened Q'd Up Live. The program in 2020 automotive retail, what will likely begins with "The Berryman happen next and the critically important Top 5" from the Capitol, an strategies that enable dealers to update of 5 things you must know from proactively promote customer loyalty Lansing, followed by an interview and Q&A with State Rep. Angela Witwer, who is ATD (SaveSave the date! Jun. 22-23) ATD will serving her second term representing the host the inaugural ATD Truck Industry Forum 71st House District. in Washington, D.C. Registration opens Feb. 22.
WHEN YOU REVIEW YOUR VENDOR RELATIONSHIPS... please consider some of the many companies that support our association
For 98 years, Zurich has been a leader in the automotive industry. We remain a sought-after option as a specialized Dealer-ops Business Insurer. Our F&I offering has become even more robust and we quickly found ways in 2020 to deliver solutions to serve you in these unprecedented times.
Adapted our F&I selling system for virtual presentations Conducted hundreds of training webinars and personal/1-on- 1 virtual training sessions Complimentary access to online F&I consumer education resources and Zurich University (Sales/Compliance/Service online training portal) Generating service contract sales through our after-sale direct marketing & service lane programs
We've built and delivered tools to help you succeed, and we stand stronger than ever in our commitment to help dealerships thrive and increase profitability. zurichna.com
Want to learn more? Email [email protected]
Michigan Automobile Dealers Association Have a topic suggestion for a future www.michiganada.org newsletter? Send us your ideas. Trouble viewing this message? View as Webpage
CELEBRATING 100 YEARS OF VerHage family in 1939. Henry & Grace (front) SUPPORTING DEALERS LIKE YOU. opened a Maxwell & Chalmers dealership in 1914. Dick, Harold & Henry J. (back) brought Chrysler Plymouth to Hudsonville in 1925, while Lloyd (front, center) followed with a dealership in Holland in MADA Fast Facts 1963. Eugene (left) took a different route as a February 5, 2021 • Vol. 23, No. 5 school teacher - and a summer wash boy.
NEWSLETTER SPONSOR New Fed. OSHA Guidance
The Occupational Health and Safety Administration has released new guidance for employers and workers With 30 years of experience in the designed to help identify risks of COVID- energy industry, the IGS family of 19 exposure in the workplace and to companies provides natural gas, help determine appropriate control electricity, solar, LED lighting solutions measures to implement. The good and alternative fueling options to over news? Michigan already has some of one million customers across the the strongest MIOSHA requirements country. related to COVID-19 workplace protections so you may have all the new As the preferred energy partner to the federal guidelines in place. MADA, IGS is focused on helping members make the best energy decisions for their business. igs.com keep reading below
NADA has provided this overview...
The new federal guidance states that employers should implement COVID-19 prevention programs in the workplace to mitigate exposure risks including several elements such as:
conducting a COVID-19 workplace hazard assessment; ensuring that infected or potentially infected workers are separated and sent home from the workplace; communicating COVID-19 policies and procedures to both English- and non- English-speaking workers; and explaining that face coverings and social distancing remain important practices for vaccinated workers.
Each of these elements, as well as other protective measures, is discussed in detail in the guidance. Like other OSHA guidance published in the last year, this guidance is not mandatory and creates no new legal obligations. However, OSHA has considered an employer’s good faith efforts to comply with safety and health standards and guidance when determining whether to cite a violation. This guidance is likely the first step toward increasingly detailed and possibly mandatory requirements by OSHA to address COVID-19 in the workplace. Dealerships should have already taken many of the steps in the guidance to ensure the safety of their employees and customers, but should review it for ways to strengthen their current workplace safety programs.
For more information from NADA, see NADA’s Coronavirus Hub, including FAQs: Dealership Health and Safety Concerns During a Pandemic.
Reminder to Update Your Preparedness Plan, As Needed
As you know, MIOSHA requires all businesses to maintain a COVID-19 Preparedness and Response Plan. This plan should be updated as needed, and dealers must make sure employees have access to and understand the plan. When you look at the violations cited during MIOSHA inspections, lack of a written preparedness plan is one that frequently shows up.
Many dealers developed their preparedness plan using the template from Colombo & Colombo, PC. This template was updated this month to reflect the new Michigan statute and CDC guidance on the reduced home isolation periods for employees after a close contact situation. The section referencing the FFCRA has also been removed since it is now voluntary. Dealers are encouraged to review and update their preparedness plan when needed.
Colombo & Colombo preparedness plan template, updated Feb. 2021
NADA Releases New Guide on Buying and Selling Dealerships
NADA has added to its suite of learning products a new Driven guide that provides a comprehensive overview of key planning considerations when buying and selling automobile and truck dealerships. A Dealer Guide to Buying and Selling a Dealership applies the planning considerations to each phase of the buying and selling process and includes a detailed checklist of action items for both buyers and sellers. The guide was prepared for NADA by nationwide buy/sell experts Alan Haig and Erin Kerrigan.
Vaccine Timeline in Michigan
While the timeline for getting the COVID-19 vaccine into the arms of Michigan residents will continue to be a moving target due to availability issues, we do have some guidance from the state. Nearly all Michigan health departments have moved into Phase 1B of the COVID-19 vaccine timeline and many are also scheduling vaccines for residents 65+. Guidelines differ from one county to the next so please refer to the health department in which you live or work to see the specific requirements. Some health departments also have a registration option to notify residents when they become eligible for the vaccine.
Other* essential frontline workers are expected to be eligible for the vaccine beginning in early May, as part of Phase 1C. All remaining essential workers will begin to phase-in this summer. Again, this may change based on vaccine availability. See the vaccine timeline here. (*Frontline workers such as emergency personnel and teachers qualified in earlier phases of essential workers.)
As we get closer to May, we hope for more clarification from the state about who qualifies for Phase 1C. Michigan has classified automotive repair and maintenance workers as essential from the beginning of this pandemic so we are hopeful this group of workers will soon have access to the vaccine. MADA will continue to watch the vaccine progress in Michigan and keep dealers updated as new information is provided.
View the Michigan vaccine webpage here for links to all local health departments with more information about vaccines in your community.
Employers Ask EEOC For COVID-19 Vaccine Incentive Guidance
Feb. 3 Legal Alert from Fisher Phillips
Citing the uncertainty surrounding the state of the law when it comes to offering incentives to employees who receive the COVID- 19 vaccination, a collection of over 40 business groups and associations just submitted a letter to the Equal Employment Opportunity Commission seeking guidance on what’s allowed and what might violate federal law. The February 1 letter is the product of significant concern regarding the legality of a vaccination incentive program as summarized in a recent FP Legal Alert and highlighted in a just-released FP Flash Survey which revealed 43% of employers are unsure about how to proceed. What do employers need to know about this development?
Employers Want To Play A Pivotal Role – But Need Direction “We are hopeful that COVID-19 vaccines will provide a pathway to safely restart the economy,” said the consortium of business groups including healthcare, hospitality, manufacturing, dealership, retail industries and others, “and we want to help facilitate and expedite the vaccination process.” But in order to do so, the groups said, they need to the EEOC to “quickly issue guidance” clarifying the extent to which they can offer vaccination incentives without running afoul of the Americans With Disabilities Act (ADA) and other laws enforced by the EEOC.
The groups noted that employer-provided incentives can assist in the speedy and efficient distribution of vaccines. But the legal uncertainty about providing such incentives, has many employers concerned over liability – and therefore created unnecessary hesitancy...keep reading here.
NADA Show - Get a Virtual Head Start Today!
NADA has developed an A-Z Guide to NADA Show 2021 to help you understand the virtual platform. A video orientation will also be posted online soon - no registration needed.
NADA Show 2021 takes place Feb. 9-11, with special pre-Show access happening now through Feb. 8. Register today to take full advantage of everything the virtual NADA Show experience has to offer, and we’ll see you there!
MADA encourages dealers to 2021 NADA & ATD Dealership Workforce participate in this NADA study. The Study - Payroll & Retention, is now OPEN! compensation report is something dealers are always looking for, PLUS, Go to nadaworkforcestudy.com to see what FREE the data shows the important role resources you will receive as a thank you for your franchised dealers play in our participation. economy.
HEADLINES FROM THE INTERNET news and information you may find interesting
Women Driving Auto Retail... Mark Wahlberg and Jay Semifinalists Announced Feldman Join the NADA Show Main Stage Now in its fourth year, NADA's Women Driving Auto Retail video contest Just added to the Main Stage lineup, celebrates women (like those at Mark Wahlberg and his dealership Maple Hill Auto Group in Kalamazoo!), partner Jay Feldman will join the who work in all areas of car or truck Opening General Session on Tuesday, dealerships, and aims to encourage Feb. 9, in conversation with 2020 more women to pursue... NADA Chairman Rhett Ricart.
Read more Read more blog.nada.org blog.nada.org
Question: What are Michigan's requirements for disclosing damage to a new vehicle?
Answer: Dealers must disclose damage to the consumer if the amount exceeds 5 percent of the MSRP or $750 for surface coating repairs, corrosion restoration or a combination of the two. The disclosure must be made before the consumer signs the RD-108.
From the Michigan Dealer Manual, Chapter 3, Section 3-7.2 Disclosure Requirements – New Vehicle Damage
Written disclosure of damage and repairs are required when a new vehicle dealer is selling a new, demonstrator, executive or manufacturer, or program vehicle has been damaged and repaired, and meets the following criteria: a) The dealer has knowledge of the damage and repairs to the new vehicle; and, b) The cost of the cumulative repairs – calculated at the rate of the dealer’s authorized warranty rate for labor and parts – exceeds either of the following threshold criteria:
1. Five percent (5%) of the manufacturer’s suggested retail price (MSRP) of the vehicle; or, 2. Seven hundred fifty dollars ($750) in surface-coating repairs or corrosion protection restoration, or a combination of these items.
Note: The disclosure must include an itemization of the repairs performed. A disclosure statement is not required for any damage or repair of glass, tires, wheels, bumpers, audio equipment, in-dash components or components contained in the living quarters of a motor home. Disclosure of material facts is always necessary, regardless of the cost or extent of repairs.
CALENDAR, REMINDERS & EDUCATIONAL OPPORTUNITIES
NADA (Feb. 8) Business Relief Reboot: The New Payroll Protection Program and Employee Retention Tax Credit. This webinar will review the key eligibility criteria for the new PPP and revised ERTC, will highlight the deductibility of expenses paid using PPP loan proceeds, and will touch DEALER PLATES (& TABS) on the process and factors involved with applying for and Your 2020 allotment of obtaining PPP loan forgiveness. dealer plates remains active through Feb. 28, 2021. The UHY (Feb. 24) The CARES Act and it's impact on your state asks for your patience business and benefit plan. One year later, we reflect on while they continue to the tumultuous year and the legislation passed that has process and mail the new since impacted business and benefit plans across the tabs that will be affixed to nation. dealer plates.
WHEN YOU REVIEW YOUR VENDOR RELATIONSHIPS... please consider some of the many companies that support our association
700Credit is the automotive industry leader Abbott Nicholson has a large presence as in delivering the most robust, bureau- a legal counsel for one of the most exciting inclusive credit, compliance, prescreen and dynamic sectors of the Michigan and consumer pre-qualification solutions economy – motor vehicle dealerships. Our on the market today. We offer powerful yet dealership team has the unique knowledge simple access to all of the information you and experience to serve the legal needs of need about your customers so you can this energetic industry, including corporate, make the right funding decisions, while transactional, regulatory, and litigation keeping a close eye on compliance. matters. www.abbottnicholson.com www.700credit.com
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CELEBRATING 100 YEARS OF SUPPORTING DEALERS LIKE YOU.
How the styles have changed... MADA Fast Facts Garber Buick at one of its earliest locations, February 12, 2021 • Vol. 23, No. 6 operating at 206 N. Washington Ave in Saginaw from 1915 until 1963.
NEWSLETTER SPONSOR FIRST BOARD MEETING of 2021 join us virtually on March 10!
The MADA officers have scheduled the first 2021 board meeting. All dealers are With 30 years of experience in the welcome to attend the meetings; it is energy industry, the IGS family of not necessary to serve on the board. We companies provides natural gas, are finalizing details with our speaker electricity, solar, LED lighting solutions and will announce the exact time and alternative fueling options to over shortly, but in the meantime please mark one million customers across the your calendar for a mid-morning virtual country. meeting.
As the preferred energy partner to the MADA Board Meeting, via Zoom MADA, IGS is focused on helping March 10, 2021 (time TBA) members make the best energy Registration will open Feb. 26 decisions for their business. igs.com keep reading below
Additional meetings in 2021 somewhat tentative, because...well, planning in advance is tricky right now
Feb. 23 - educational webinar: e-Services updates (details coming soon) May 19 - virtual board meeting, followed by general membership meeting with speaker from NADA Sept. 15 - MADPAC golf outing at Eagle Eye Dec. 8 - board meeting...hopefully in person, with virtual option
In-person vs. virtual meeting determinations will be made prior to each meeting due to the unknows of the COVID-19 environment and Michigan restrictions. However, regardless of what comes this year, we are also working with association leadership to schedule various virtual opportunities. This includes regional dealer / management meetings and staff training opportunities. Stay tuned! We will follow up once topics, speakers and dates have been confirmed.
P.S. We've enjoyed the photos and history you have been sharing for our newsletter. Please keep it coming! Have a historical photo or maybe a fun picture from a past association event? Email it to [email protected] with a brief description and we would be happy to include it.
Update on Tabs for Your Dealer Plates
The Michigan Department of State (MDOS) continues to process and mail dealer tabs, which will be affixed to your current allotment of dealer plates. As I'm sure you can understand, COVID-19 has caused some challenges this year.
Most dealers have already received their dealer plate tabs. If you have not received your tabs, please wait a little longer. They are being processed, plus USPS mail is still a little slow in some areas. Due to the way the MDOS system prepares tabs for mailing (and potential USPS delays), there will be a few instances where a single location receives the tabs in separately mailed packages, on different days.
The state asks for your patience as they continue the process. At this time there is no need for concern if you have not received the tabs - or have only received a portion or your tabs. Even without the new dealer plate tabs, existing dealer plates remain active through Feb. 28, 2021.
If you renewed your dealer license, that license remains active, and your dealer plates remain active. As a reminder, you can check your license status through CARS e- Services. Under the Business Services heading, select Dealer Services, then Search Dealer. For the best results, enter your dealer number only then click search.
If you have questions or do not receive your dealer plate tabs by Feb. 25, 2021 please email Michelle Brenke at [email protected].
Note: the state's first priority is dealer plate tabs ordered with license renewal. Lost or additional plate/tab requests will be reviewed and processed once the renewal tabs are completed.
MIOSHA Announces Another Round of Violations
Just a small note of recognition for our new car and truck dealers. We have read the MIOSHA press releases that are released every month or so and have seen an extensive list of businesses around Michigan that are cited for violations of the state's COVID-19 workplace safety requirements. (See the Feb. 5 notice of the latest 20 companies cited.) We know a number of dealers have been randomly inspected as part of Michigan's emphasis program on retail businesses. And you have proven time and again that you take the CDC and Michigan rules seriously.
It has certainly been a long 11 months. Dealers around the state have stepped up, made necessary operational changes, and continue to do the right thing to support employees and residents of this state. There have been added costs for PPE and heightened cleaning efforts. I am sure many dealers have heard from frustrated employees and customers, but you have stuck with it. We applaud you. It hasn't always been easy.
New-Vehicle Inventory Rises through January; Average List Price Retreats
New-vehicle inventory edged higher throughout January but remains far lower than a year ago, while the average list price retreated from its early January peak, according to a Cox Automotive analysis of vAuto Available Inventory data. 2.79M 66 $40,474 Total Inventory Days’ Supply Average List Price
The total U.S. supply of available unsold new vehicles stood at 2.79 million vehicles as January closed. That compares with 3 million near the end of December. Still, as has been the case for many months, inventory remains well below year-ago levels when 3.35 million vehicles were available in the comparable timeframe.
A global shortage of computer chips for vehicles has forced automakers around the world to trim production. Nearly every major automaker in every region has been hit, including automakers operating in the U.S. Most recently, GM said it would trim production at three North American plants into mid-March. So far, with a few exceptions, the affected models are those with ample or, in some cases overabundant, inventory...keep reading
HEADLINES AROUND THE INTERNET news and information you may find interesting
Prevent and detect insider cyberattacks Addressing Loneliness at Work
In one recent cybercrime scheme, a Human beings have an innate desire mortgage company employee to be connected to others and to accessed his employer's records belong, but loneliness pulls people without authorization, then used stolen away from social connections and is customer lists to start his own becoming a serious concern for mortgage business. The perpetrator employers. When loneliness is not hacked the protected records by addressed quickly, it can impact sending an... office...
Read more Read more www.fmdcpas.com www.mibluesperspectives.com MEMBER NEWS
We are saddened to inform you that Beverly June O’Brien passed away on Friday, January 29, 2021. She was the wife of the late Roy E. O’Brien, Jr., who founded Roy O’Brien Ford in St. Clair Shores. Their children own and operate the dealership.
MADA sends our condolences to the O'Brien family, friends and colleagues. View obituary here.
CALENDAR, REMINDERS & EDUCATIONAL OPPORTUNITIES
Information on the COVID-19 NADA (on-demand) Post-Show Access to NADA vaccine in Michigan Show 2021. Just $99 for Members.
CDC quarantine and isolation Zurich (Feb. 16) How to Disclose a Lease and Limit guidelines (Michigan law refers to Your Legal Risk. Learn how the new administration is these) raising concerns about increased oversight to the retail automotive industry, particularly the finance NADA & ATD Dealership and lease process. Workforce Study - Payroll & Retention - participation is free BCBS (Feb. 18) Connect to Others to Thrive, Not Just Survive in 2021. Humans need connection. Join us for tips based on research to create connections that improve your physical and mental health. MADA ASSOCIATE PARTNERS: Have a webinar you would like to Fisher Phillips (Feb. 24) How Employers Are Tackling promote? Send details and a link the COVID-19 Vaccine and the Latest Developing to [email protected] Issues. This seminar will provide guidance to help employers navigate the minefield of employment- related issues created by the vaccination process.
WHEN YOU REVIEW YOUR VENDOR RELATIONSHIPS... please consider some of the many companies that support our association
Count on our dealer finance experts for guidance over the long term. From Headquartered in Bay City, we are one of the floor plan and cash flow auto industry's leading innovators in technology, management to real estate and consulting, financial services, and vehicle acquisition financing solutions, we management. Since 1998, our proven systems help put your vision into action. and methods have helped car dealers www.bmoharris.com throughout the country increase volume and gross. www.newtechdealerservices.com
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CELEBRATING 100 YEARS OF Lewis and Floyd Brown were among the first to SUPPORTING DEALERS LIKE YOU. drive across the newly opened Mackinac Bridge in 1957. Second generation dealers, their father, Ben Brown, founded Brown Motors MADA Fast Facts in Charlevoix in 1898. Initially a harness shop, February 19, 2021 • Vol. 23, No. 7 Dodge was added in 1924 - making it one of the earliest Dodge dealerships.
NEWSLETTER SPONSOR THE SAD, LAZY MYTH of the 'MIDDLEMAN' Feb. 17 NADA blog post
Many first year MBA students learn a marketing concept called the “Iron Law Serra Benefits SPECIALIZES in the design, of Distribution.” The idea is that when implementation and management of you bring a product to market, you can employee benefits for Michigan Auto change who owns the distribution Dealers. From health, life, dental, and channel for that product — but vision to disability, we handle it all. changing who distributes the product doesn’t change the cost structure We are the only agency in Michigan associated with distributing the product. that has a full and practical understanding of the needs of That is, you can change whether a Michigan's Auto Dealers. We offer 24/7 factory or an independent company availability, personal hands-on service, owns the retail outlet — but that by itself unique and creative solutions and much doesn’t change or make retailing costs more! serrabenefitsgroup.com disappear.
This is a stumbling block for lots of factories that are looking for ways to reinvent themselves. It’s also a huge source of misunderstanding for business reporters who cover companies seeking to “sell direct.” If factories own their own stores, the narrative goes, then there will be no “middleman,” their costs and profits will go away, and the savings will get passed along to customers.
Except for the Iron Law. Changing retail ownership doesn’t actually create any savings in and of itself, because the factory store becomes the new “middleman.” The factory will need to make its own profits retailing. And worst of all, customers are usually hurt when factories vertically integrate sales with manufacturing, because it raises prices by reducing retail price competition. The Myth of the Middleman
The fact is that when a factory decides to sell its products directly to customers, they incur costs of selling those products to customers — in the exact same way that an independent distributor would incur costs.
In the automobile business, that means factories “selling direct” would incur the costs of running a dealership. That is, they would incur the costs of buildings, land, equipment, inventory, insurance policies, utility bills, and all the human capital needed to run the operation.
And the auto dealership business is complex. Longtime auto industry analyst Glenn Mercer calls the dealership business, “the most complex retail business in America today.”
That’s because local dealerships don’t just sell new cars. They service them. They arrange financing for them. They handle registrations and titles. They take trade-ins. They advertise and collect sales data and customer lists. They often also sell used cars. This is another reality that gets completely lost in the “direct sales” debate: Dealerships take care of their customers for the entire lifetime of the automobile across the entire automotive ecosystem, not just the point of sale.
Manufacturers that experiment with selling directly always eventually run into that reality... keep reading
Virtual HAZMAT Shipper Certifications for MADSIF Members
Dealers who participate with MADSIF are reminded that HAZMAT shipper certification is now available - and this year it will be offered virtually. Please keep in mind at least one certified employee is to be on site during all working hours of the day. It is always best practice to have at least two employees certified per location with regard to vacation and sick days taken.
Multi-employee discount ($150 for first employee- $95 per additional) Self-paced training modules (~3 Hours in total) Full access to a MADSIF Loss Control representative for any training or technical questions Completion Certificate (good for 3 years) View this handout for additional details and registration information
MADSIF was created more than 35 years ago by Michigan auto dealers to provide workers' compensation insurance and proactive loss control services. For more information about MADSIF please visit their website or email Jennifer Monkiewicz, fund administrator, at [email protected].
DEALER ALERT: Vehicles Stolen During Test Drives
MADA has been informed of a vehicle theft situation that recently took place in SE Michigan.
A “customer” with a fraudulent Maine driver's license was visiting dealerships and taking test drives. Once the individual left the dealership, he disabled the modem and stole the vehicle. These criminals are skilled at their trade and continue to find new ways to drive off with your vehicles. We thank dealers for keeping us informed of fraudulent activity you experience or hear about. Any information or new scams we can pass along benefits our entire membership.
COVID-19-Related Tax Credits: Basic FAQs
The Internal Revenue Service has posted updated FAQs about recent legislation that extended and amended tax relief to certain small- and mid-sized employers under the Families First Coronavirus Response Act (FFCRA). The updates to the FAQs cover how the COVID-related Tax Relief Act of 2020, enacted Dec. 27, 2020, extends the availability of the tax credits created by the FFCRA to eligible employers for paid sick and family leave provided through March 31, 2021, as well as other amendments to the credits.
Following is the updated guidance for two questions we often hear from dealers. Dealers are also encouraged to view this complete list of FAQs.
#2. When can employers start claiming the credits? (Updated January 28, 2021) Eligible Employers may claim tax credits for qualified leave wages paid to employees on leave due to paid sick leave or expanded family and medical leave for reasons related to COVID-19 taken for periods of leave beginning on April 1, 2020, and ending on March 31, 2021.
Eligible Employers may claim the credits on their federal employment tax returns (e.g., Form 941, Employer's Quarterly Federal Tax Return PDF), but they can benefit more quickly from the credits by reducing their federal employment tax deposits. If there are insufficient federal employment taxes to cover the amount of the credits, an Eligible Employer may request an advance payment of the credits from the IRS by submitting a Form 7200, Advance Payment of Employer Credits Due to COVID-19.
For the circumstances, amounts, and period for which the credits are available, see "Determining the Amount of the Tax Credit for Qualified Sick Leave Wages", "Determining the Amount of the Tax Credit for Qualified Family Leave Wages" , and "Periods of Time for Which Credits are Available."
#6. What is the amount of the refundable tax credits available to Eligible Employers? (Updated January 28, 2021) The credits cover 100 percent of up to two weeks (up to 80 hours) of the qualified sick leave wages and up to ten weeks of the qualified family leave wages (and any qualified health plan expenses allocable to those wages) that an Eligible Employer paid during a calendar quarter, plus the amount of the Eligible Employer’s share of Medicare tax imposed on those wages. Qualified sick leave and qualified family leave under the EPSLA and the Expanded FMLA, respectively, are in addition to employees’ preexisting leave entitlements. See the Department of Labor's Families First Coronavirus Response Act: Questions and Answers for rules regarding the FFCRA paid sick leave and expanded family and medical leave and other leave entitlements. Eligible Employers may only claim a credit for qualified leave wages. Example: An Eligible Employer pays $10,000 in qualified sick leave wages and qualified family leave wages in Q2 2020. It does not owe the employer’s share of social security tax on the $10,000, but it will owe $145 for the employer’s share of Medicare tax. Its credits equal $10,145, which include the $10,000 in qualified leave wages plus $145 for the Eligible Employer’s share of Medicare tax (this example does not include any qualified health plan expenses allocable to the qualified leave wages). This amount may be applied against any federal employment taxes that Eligible Employer is liable for on any wages paid in Q2 2020. Any excess over the federal employment tax liabilities is refunded in accordance with normal procedures. Eligible Employer must still withhold the employee’s share of social security and Medicare taxes on the qualified leave wages paid, except to the extent the employer opts to defer the withholding and payment of the employee’s share of social security tax in accordance with Notice 2020-65 PDF, as modified by Notice 2021-11 PDF.
For more information, see "What is included in "qualified sick leave wages"?" and "What is included in "qualified family leave wages"?"
YOUR RESPONSE IS REQUESTED: NADA Data Survey Now Open
NADA needs your help to gather data for the 2020 NADA Data report. Take NADA’s two-question survey that takes no more than five minutes. Your participation will inform NADA Data, an annual report examining 2020 dealership sales, financial trends and more. Responses will be used anonymously.
To participate in the 2020 NADA Data Survey, click here.
HEADLINES AROUND THE INTERNET news and information you may find interesting
Many tax amounts affecting Energy Policy Affects businesses have increased for Michigan's Health - Citizens......
As we near the end of an especially A number of tax-related limits that frigid week, many Michiganders have affect businesses are annually indexed found themselves eyeing their for inflation, and many have thermostats and contemplating their increased for 2021. Some stayed the next energy bill. After nearly a year same due to low inflation. And the spent mostly at home during the deduction for business meals has coronavirus pandemic... doubled for this year after a new law...
Read more Read more crcmich.org www.fmdcpas.com MEMBER NEWS
Jeff Williams nominated for Time Dealer of the Year award
MADA congratulates Jeff Williams, who was one of a select group of 40 dealer nominees from across the country honored at the NADA Show, held virtually last week. A past president of MADA, Mr. Williams is vice president at Williams AutoWorld in Lansing. Recipients of the Time Dealer of the Year award demonstrate a long-standing commitment to community service. Read more here.
Nick Ruffolo of Todd Wenzel Buick GMC in Davison has been recognized by GMC as the number one volume sales consultant in the state of Michigan under the GMC brand. Mr. Ruffolo has worked in automotive sales for 26 years, the past 17 with Todd Wenzel, and said he is “very grateful and very humbled” to receive the award.
Do you have something special to share about your dealership or staff? MADA is happy to include your story. Please email [email protected].
CALENDAR, REMINDERS & EDUCATIONAL OPPORTUNITIES
Information on the COVID-19 MADA & SOS (Feb. 23) An upgrade to CARS e- vaccine in Michigan Services will be released in March with new options related to electronic liens and titles. It is going to be CDC quarantine and isolation important for dealers to understand the changes, the guidelines (Michigan law refers to new user screens and how to properly input data. these) Register for the webinar. (A Zoom link will be emailed to registered attendees Monday morning.) NADA & ATD Dealership Workforce Study - Payroll & Fisher Phillips (Feb. 24) How Employers Are Tackling Retention - participation is free the COVID-19 Vaccine and the Latest Developing Issues. This seminar will provide guidance to help employers navigate the minefield of employment- related issues created by the vaccination process. NADA (on-demand) Post- Show Access to NADA Show BCBS (Feb. 25) The Effects of Random Acts of 2021. Just $99 for NADA Kindness. Join us to learn how random acts of members. kindness can be contagious in spreading joy and gratitude to others, while creating positive effects on your well-being.
ADM CAPITOL CORNER
Gov Calls Army Secretary After National Guard Served Undercooked Chix, Meatloaf Winter Storms Delay Vaccine Shipments Eatery Owners Call For An End To Dine-In Restrictions Read Banning Cellphones While Driving Gets Bipartisan Look Here WHEN YOU REVIEW YOUR VENDOR RELATIONSHIPS... please consider some of the many companies that support our association
UHY LLP offers financial and tax services We understand your business, and including internal control, cybersecurity and offer the financial products and merger and acquisitions. With 50 years of services you need to manage and experience in the dealership industry, UHY is grow your dealership’s bottom recognized for their ability to understand line. www.huntington.com business goals and assist in making practical decisions that support the objective of the client. www.uhy-us.com
Michigan Automobile Dealers Association Have a topic suggestion for a future www.michiganada.org newsletter? Send us your ideas. Trouble viewing this message? View as Webpage
For the June 1958 Mackinac Bridge dedication, CELEBRATING 100 YEARS OF Oldsmobile provided 103 white convertibles, which SUPPORTING DEALERS LIKE YOU. were used to transport dignitaries and beauty queens across the bridge. Each of Michigan's 83 counties was represented with a queen, who chose a Cub Scout to escort her. A young Dave Kring was MADA Fast Facts one of those scouts...many years before he owned February 26, 2021 • Vol. 23, No. 8 his own Oldsmobile dealership (now Chevrolet Cadillac) in Petoskey.
NEWSLETTER SPONSOR CARS UPGRADE ON MARCH 16 more info. will be available soon
We had an amazing turnout for this week's virtual meeting with the Michigan Serra Benefits SPECIALIZES in the design, Department of State, discussing implementation and management of changes coming to CARS e-Services on employee benefits for Michigan Auto March 16. We realize that dealers and Dealers. From health, life, dental, and staff still have questions about the vision to disability, we handle it all. system upgrade and new electronic lien titling (ELT) options. We are working with We are the only agency in Michigan MDOS to get feedback on questions that has a full and practical asked during the Zoom meeting and will understanding of the needs of follow up with registered attendees Michigan's Auto Dealers. We offer 24/7 soon. The state is also working on an availability, personal hands-on service, instructional handout to further detail unique and creative solutions and much the new user screens and processes, as more! serrabenefitsgroup.com well as an explanatory document dealers will provide their customers.
For those who would like to review the initial information, the meeting was recorded and can be viewed on demand HERE. (The Q&A section has been condensed because the information will be available in printed version shortly.)
Electronic Titles Minimize Successful Scammers
A significant reason for the implementation of this new electronic lien titling system is to cut down on fraud. There are an increasing number of bad apples in the barrel. This system will help minimize scammers who provide a "clean" trade-in, when in fact the customer still owes money on the vehicle. It's also another step toward streamlining processes between the SOS, dealerships and financial institutions.
The state plans to have more details on the upgrade by March 8, plus an FAQ sheet to address many of the questions raised during the virtual meeting. We will provide this information to dealers and webinar attendees once available.
A few things to remember:
CARS e-Services will completely shut down the evening of March 11 (exact time to be announced) through March 15. CVR will also be down, as it cannot integrate when CARS is offline. Guidance for processing vehicle sales during the shutdown will be provided soon. The new system should be live when you walk into the dealership on March 16. There is a possibility it may be up and running sooner. MADA will keep you updated as we learn more.
Financial institutions. With the electronic lien titling process, dealers will include the electronic lien ID for the financial institution on the RD-108. In this early stage, there are only a few financial institutions involved. When new companies sign on to the program it will be the financial institution's responsibility to notify the dealership of their electronic lien ID.
Buying a vehicle with an electronic title. The initial work done on this new process won't be realized for months down the road as vehicles with an electronic title and lien are later sold or traded in. The state is planning additional training opportunities closer to the summer that will provide more guidance on taking in a vehicle with an electronic title.
The state understands the temporary CARS shutdown is not ideal and causes some challenges when processing sales during that time. They ask for your patience as this needed system update is implemented.
March 10 MADA Board Meeting via Zoom
MADA dealers are invited to join us on March 10 at 10:00 am for the first board meeting of 2021. You do not need to be a board member to attend, but participation is limited to MADA dealers or a manager designated by the dealer. The meeting will also include a special presentation on training and marketing of electric vehicles.
Register here for the board meeting. Those registered will receive the Zoom link prior to the board meeting.
How Does Your Dealership Compare? Find out how your dealership compares in compensation, benefits and retention
NADA’s 2021 Dealership Workforce Study is open for enrollment. Your participation is valuable in offering insights into demographic trends, employee compensation, benefits and retention. All data submitted is confidential.
Participation is the only way for you to receive:
Complimentary custom report comparing your dealership against aggregated data from your peers across the nation and region, right down to dealerships selling your brand in your state. Complimentary Payroll and Retention Report with analysis of workforce data across the nation and by region. EXCLUSIVE one year access to the DWS Database Search Tool: An online based customizable search tool with archived tenure and compensation data from all NADA Dealership Workforce Studies for over 60 positions!
The deadline is April 15, 2021. To participate in the 2021 Dealer Workforce Study, click here. Questions can be directed to [email protected].
New SOS online, self-service options coming soon The March 16 CARS upgrade is tied to new options for Michigan residents
The Department of State will enable new online services for customers and expand the capability of self-service stations to include driver’s license and state ID transactions next month.
The new customer conveniences will be available when a massive upgrade of the department’s driver records system is launched on March 16, following two years of preparation. Branch appointments, online and self-service station transactions will be unavailable from 5 p.m. Thursday, March 11 to 9 a.m. Tuesday, March 16 while the system is brought online.
The project securely combines tens of millions of driver and vehicle records into one integrated customer record system and moves the department from a decades-old legacy system to greatly improved customer service technology. The department’s vehicle records system was modernized in February 2019, and work to upgrade the driver records systems began shortly thereafter...
Keep reading for more details on the new services that will be available at Michigan.gov/sos and through the self-service stations.
Upper Peninsula Dealers: In coordination with the new technology launch, four Upper Peninsula branch offices that are located in the Central Time Zone (Bessemer, Iron River, Iron Mountain and Menominee) will shift their hours to 8 a.m. to 4 p.m. CST to match the operating hours of the rest of the department’s branch offices, which are open from 9 a.m. to 5 p.m. EST.
Michigan DOT: How to Handle a Roadside Emergency
Looking for an interesting social media post for your dealership? This recent newsletter from the Michigan DOT is a great way to pass along some important driver information to your customers...
For the last 5 years (2014-2018), approximately 10% of all pedestrian-related traffic crash fatalities have involved a roadside emergency. For example, a driver getting out of their car after a crash and then getting hit and killed, or a driver running out of gas and getting hit while walking to the gas station. Generally, the safest thing to do if you are involved in a roadside emergency is to stay in your car, with your seat belt buckled, until help arrives. If you are involved in a crash: If the vehicle is disabled or out of gas:
Stay in your car. Put your vehicle in park. Keep your seat belt buckled. Activate your vehicle’s emergency Drive your car to the shoulder or next flashers. exit safely, if possible. Michigan is a Call for roadside assistance, or a “Clear It or Steer It” state. friend to bring you some gas. Activate your vehicle’s emergency Stay in your car with your seat belt flashers. buckled while you wait. Call 911 or the local police If you get out of the vehicle (to department for help. change a tire for example), make Remember you must report a crash sure you and the part of the car you that involves a motor vehicle, causes are working on does not face traffic. injury, or causes more than $1,000 in damages. Moving your vehicle to a safe place Keep reading here for more roadside on the shoulder or nearby exit or emergency guidance. parking lot is not leaving the scene of a crash.
HEADLINES AROUND THE INTERNET news and information you may find interesting
Car Buying Process Improved A 10-Step Action Plan For During COVID-19 Pandemic Employers
Cox Automotive released its 11th The time is now for employers to annual Car Buyer Journey Study. The develop detailed vaccination plans to extensive study is based on a survey of meet the goal of protecting consumers who bought or leased a workforces while at the same time new or used vehicle and is designed remaining fully operational. You should to offer a detailed look at the vehicle develop your plan with the help and buying process in America... advice of...
Read more Read more www.coxautoinc.com www.fisherphillips.com
CALENDAR, REMINDERS & EDUCATIONAL OPPORTUNITIES Information on the COVID-19 vaccine Plante & Moran (Mar. 2) Taking advantage of in Michigan the employee retention credit. The employee retention credit has seen recent expansions and CDC quarantine and isolation modifications. Make sure you’re up to date and guidelines taking advantage of the credit.
Retirement calculator (provided by BCBS (Mar. 9) Importance of Praising Your CAPTRUST) Employees. Discuss the science behind praising your employees and hear ideas on how to do it effectively. MIOSHA: 16 employers cited for COVID-19 workplace safety violations Great Lakes Co. (Apr. 6-7) AFIP Boot Camp. State and Federal Consumer Regulation MSP: Car thieves programming new Education for Sales Managers, Desk Personnel, keys to steal vehicles and F&I Practitioners. Certify in just 2 days!
ADM CAPITOL CORNER
Your legislative update from the Auto Dealers of Michigan, LLC.
MEDC CEO Leaving For Honigman; National Search For Replacement Wrapping Up Read No Sales Tax On PPE Under Bills On The Move Here No Smoking At Cigar Bars, Hookah Lounges Under Current COVID Order Speaker Puts Name To Lowering Prescription Drug Costs Drive
WHEN YOU REVIEW YOUR VENDOR RELATIONSHIPS... please consider some of the many companies that support our association
Providing a full range of commercial banking services. Serving Michigan dealerships for more than www.bankofamerica.com 75 years, Lewis & Knopf CPAs, P.C. offers accounting, assurance, and business consulting services. www.lewis-knopf.com
Michigan Automobile Dealers Association Have a topic suggestion for a future www.michiganada.org newsletter? Send us your ideas. Trouble viewing this message? View as Webpage
CELEBRATING 100 YEARS OF In 1914, with $600 and high hopes, Otto P. Graff SUPPORTING DEALERS LIKE YOU. and his wife Flora launched the Ford Sales Company on N. Saginaw Street in Flint. He signed an agreement with the Ford Motor Company to sell 125 cars a year -- he reached MADA Fast Facts 150 the first year. March 5, 2021 • Vol. 23, No. 9
NEWSLETTER SPONSOR TV, MOVIES AND COPYRIGHTS...oh my! Did you get a letter? It's not a scam
Many Michigan dealerships received a MADA's Bankcard Advantage program letter from the Motion Picture Licensing offers Michigan dealers a cost-effective, Corporation (MPLC), firmly reminding group rate on credit card processing. business owners that recorded movies or Our partnership with the Michigan TV programming played in dealership Retailers Association (MRA) saves sitting areas and other public spaces participants an average of 23% on may be copyright-protected content. credit card processing fees using an This is a legitimate letter and dealers easy-to-understand approach. The should take notice. program services all major credit cards and offers a variety of deposit options. U.S. copyright laws allow owners of For more information or for a original movies, television shows and complimentary cost comparison, please music to collect license fees for "public reach out to Chris Smith at MRA. performances" of those copyrighted materials.
Copyright laws look at personal/private use and public viewing completely different. Buying copyrighted material on a DVD and watching at home with family and friends is different than playing that same DVD in a public setting. In most cases, licensing is required whether the content is shown from broadcast, cable or satellite television, DVD, Blu-ray, download, or streaming platforms. In order to show these materials in your lobby, waiting area, employee break room or other public areas, you may need to obtain the appropriate license.
The MPLC is an organization that represents many movie, TV and audiovisual copyright holders (Disney, Discovery, Food Network, etc.). MADA has reached out to MPLC to discuss the licensing requirements, as have other state associations. We are also working with our attorneys to review the information and determine how dealers should proceed. In the meantime, we recommend that dealerships use caution when showing media programming, unless you already have licensing. Stay tuned for more information!
CARS eServices Upgrade -- More Information to Come
MADA continues to be in contact with the Michigan Department of State to help ensure dealers will have necessary guidance to handle vehicle transactions during the March 12-15 shutdown of CARS, plus instructional resources to use when the new system goes live on March 16. We will have more information for dealers soon.
For those interested, the state is holding another ELT webinar. Please note that MADA is NOT involved with this webinar; it is open to all class A, B, and W dealers. If you missed the ELT webinar hosted by MADA, or if you want to review the information again, you are welcome to log in for this upcoming webinar.
ELT Webinar on Tuesday, March 9 10:30 am to 12:00 pm
To access the webinar:
1. Select this link: https://bit.ly/30bEIox. 2. Select the "Watch on a Web Browser Instead" option. DO NOT DOWNLOAD THE MICROSOFT TEAM APPLICATION. 3. Select the "join anonymously" below the sign in button. 4. You may present your questions using the "My Questions" tab in the upper right corner of the presentation, and scrolling to the bottom of the box marked "ask a question."
Since MADA is not involved with this webinar, we are not able to provide technical assistance. We are simply forwarding the details along.
Michigan Expanding Access to COVID-19 Vaccine
Following the announcement by President Biden that ramped-up vaccine production will provide enough doses for 300 million Americans by the end May, Michigan is now expanding eligibility for the vaccine. Beginning Monday, March 8, MDHHS is expanding vaccination eligibility for Michiganders age 50 and older with medical conditions or disabilities and caregiver family members and guardians who care for children with special health care needs. Beginning Monday, March 22, vaccine eligibility will expand to include all Michiganders 50 and older. To date, more than 40% of Michiganders age 65 and older have been vaccinated.
Those eligible to receive a vaccine should:
Check the website of the local health department or hospital to find out their process or for registration forms; or Check additional vaccination sites, such as local pharmacies like Meijer, Rite Aid or Cardinal Health (U.P. residents); or Residents who don’t have access to the internet or who need assistance navigating the vaccine scheduling process can call the COVID-19 Hotline at 888- 535-6136 (press 1), Mon-Fri from 8 a.m. to 5 p.m., Sat-Sun, 8 a.m. to 1 p.m. or can call 2-1-1. While supplies are increasing, there remains a limited amount of vaccine available, so there may be a waitlist for available appointments. As more vaccine becomes available, the state will continue to move more quickly through the priority groups.
Read the complete press release here.
More information from other sources:
Blue Cross Blue Shield of Michigan has created resources to help answer questions about the coronavirus Fisher Phillips: The Widespread Availability Of COVID-19 Vaccines May Be Here Sooner Than You Think: A 10-Step Action Plan For Employers CDC COVID Data Tracker: up to date vaccination data for the US
Updated MDHHS Orders Increase Gathering and Capacity Limits
Changes to the Gatherings and Mask Order went into effect Friday, March 5, and remain in effect through Monday, April 19.
Gatherings and Face Mask Order Capacity Limits Fact Sheet Epidemic Order FAQs Mar. 2 Press Release
Increased limits on attendance at non-residential gatherings Reminder: “gathering” means any occurrence where two or more persons from more than one household are present in a shared space.
Indoors: up to 25 persons (up from 10). Outdoors: up to 300 persons (up from 100). Gatherings at a retail setting, library or museum, may not exceed 50% of total occupancy limits established by the fire marshal (increased from 30%). Consumption of food or beverages is permitted only while seated in a designated area with a group of no more than 6 people, and groups must be separated by at least 6 feet; groups may not intermingle. (Think: employee lunch room.)
Face masks are still required. Businesses may not assume that someone who enters the business without a face mask falls in one of the exceptions; but may accept an individual’s verbal representation that they are not wearing a face mask because they fall within a specified exception.
In-person work restrictions remain the same: work from home when possible. In-person work is permitted when a worker is unable to physically complete required job tasks from a remote setting (e.g., like an auto mechanic, or a job involving protected data that cannot be accessed remotely). For more information see MDHHS's Guidance for Employers.
Restaurants. While not directly related to your business, we know many are following the restaurant restrictions. Restaurants and bars are now allowed to be at 50% capacity up to 100 people. Tables must be six feet apart with no more than six people per table. There is now an 11 p.m. curfew.
Metrics Monitored by the MDHHS The MDHSS has been monitoring three metrics for stabilization or declines over the past several weeks. In recent days: Hospital capacity dedicated to COVID-19 is now at 3.9%. This metric peaked at 19.6% on Tuesday, Dec. 4. Overall case rates: After declining for six weeks, this metric is plateauing at 91.2 cases per million. The rate is similar to what we were at the beginning of October. Positivity rate: is now at 3.7% having increased slightly from last week (3.5%). This metric is similar to where we were at the beginning of October.
Also in the news...Feb 26 MIOSHA notice, 23 employers cited for COVID-19 workplace safety violations.
The MADA Website -- Bookmark Us!
Have you bookmarked the MADA website for quick access to important state licensing documents? If not, click here. Over the years we have updated the MADA website to include frequently referenced links to licensing and regulatory documents you want to have readily available, such as:
Dealer Manual (with chapter revision dates) Repair Facility Manual (with chapter revision dates) FAQ on Vehicle Sales Tax Trade-in Credit (for 2021) Documentary Processing Fee (for 2021 and 2022)
We also provide information and reminders about license renewals, changing information on your license such as officers or address, plus links to forms for things like lost dealer plates or off-site sales. Of course, MADA is always happy to help you complete and submit any dealership licensing paperwork needed. We have a lot of experience working with the various state departments and know what information needs to go where. We're here to make your job a little easier!
Check out some of our other member benefits here.
HEADLINES AROUND THE INTERNET news and information you may find interesting
Will Employees Need To Demonstrate “More Than A Feeling”
President Biden wants to "help ensure unemployed Americans no longer have to choose between paying the bills and keeping themselves and their families safe from COVID-19." Specifically, he has instructed the U.S...
Read more www.fisherphillips.com
Future of work arrives early, demands reskilling The time for those critical skills you thought employees would need in five years? It's here, now. The COVID-19 crisis rewrote the script on how people work and the way companies deal with their customers. Forced to work remotely because of...
Read more www.zurich.com NADA Market Beat: New Light- Vehicle Sales Fall Slightly...
Following a strong start to 2021 in January, new light-vehicle sales fell slightly in February to a SAAR of 15.7 million units. Sales were hampered by severe weather throughout much of the country that caused prolonged power outages, temporary...
Read more blog.nada.org
CALENDAR, REMINDERS & EDUCATIONAL OPPORTUNITIES
UPCOMING: DIFS is planning MADA (Mar. 10 at 10am) Board Meeting. Open to all to email installment seller member dealers or a manager designated by the dealer. license renewal and volume Register to receive the Zoom link. of activity paperwork to dealerships in early April. DADA (Mar. 11 at 9am) Kurt Berryman will More info to come. be joined by Rep. Jim Lilly. First elected to the Michigan House in 2016, he represents Information on the COVID- the 89th District. Register for the virtual 19 vaccine in Michigan meeting.
Retirement calculator Fisher Phillips (Mar. 15) Hindsight is 2020 – A Proactive (provided by CAPTRUST) Reflection of the Last Year and What to Expect in the Auto Dealership Industry in 2021. Also see other webinars covering various legal and federal regulatory issues.
ADM CAPITOL CORNER
Your legislative update from the Auto Dealers of Michigan, LLC.
Why Badly Injured MI Drivers May Not Stay In Good Hands Of Allstate Read Nesbitt Emerging In Senate R Leadership Here Pressure Builds On DHHS Director Confirmation Vote House Panel Wants Student Athlete Parents In The Stands
WHEN YOU REVIEW YOUR VENDOR RELATIONSHIPS... please consider some of the many companies that support our association
Transforming the way the world buys, sells Fraser Trebilcock’s Auto Dealer practice is and owns cars. With auto dealer clients led by Edward Castellani who has across five continents, we strive to concentrated his practice in representing understand your needs by pairing our dealers and dealer trade associations. As insights and research with your business an attorney, CPA and counsel to MADA, goals - delivering inspired results to bridge Mr. Castellani has a unique background the gap between consumers, enabling him to provide services unique to manufacturers, dealers and auto dealers. www.fraserlawfirm.com lenders. www.coxautoinc.com
Michigan Automobile Dealers Association Have a topic suggestion for a future www.michiganada.org newsletter? Send us your ideas. Trouble viewing this message? View as Webpage
While not the flashy technology we advertise today, 1928 had its own exciting CELEBRATING 100 YEARS OF advancements. From a 1928 Detroit Free Press SUPPORTING DEALERS LIKE YOU. ad: "In the Chrysler "62," for instance, chassis spring ends are now mounted in rubber shock insulators instead of metal shackles. It is the only MADA Fast Facts car of its price with this equipment." (Click the March 12, 2021 • Vol. 23, No. 10 image to view the full advertisement.) Provided by Snethkamp Automotive Family.
NEWSLETTER SPONSOR MDOS ANSWERS YOUR QUESTIONS additional guideance about the CARS e-Services upgrade
The Michigan Department of State MADA's Bankcard Advantage program (MDOS) has provided an extensive FAQ offers Michigan dealers a cost-effective, document answering dealership group rate on credit card processing. questions asked during the ELT webinar Our partnership with the Michigan on Feb. 23. These are the actual Retailers Association (MRA) saves questions asked so there is some overlap participants an average of 23% on and repetitive answers, but MADA credit card processing fees using an attempted to group similar questions easy-to-understand approach. The together for ease of reviewing. There program services all major credit cards are many pages of Q&A so you may and offers a variety of deposit options. want to use your "search" function to For more information or for a find information on a specific topic. complimentary cost comparison, please Note: We are still working with the reach out to Chris Smith at MRA. department to clarify some of these questions and answers.
The FAQ link will be updated as needed (with revision dates noted) so please refer back to the original link on occasion to see if anything new has been added. If you have questions not answered here, please reach out to MADA by email or call (800) 292-1923.
MDOS has also provided a link to the webinar that was presented for dealers on March 9, 2021. Click here for the YouTube video.
Please reference the MADA/DADA advisory from March 10 for information on vehicle transactions during the shutdown. We also remind dealers that customer's should keep the following documentation in their new vehicle until you are able to provide them with the temporary tag or physical plate: Application for Title and Registration Statement of Vehicle Sale (RD-108) Proof of valid insurance E-services outage email from MDOS (see sample)
Thank you for working with us as the state rolls out this significant update to its driver and dealership database. We know there is a lot of new information to process and the state appreciates your involvement.
MADA will send an advisory with additional information on Monday, as the state prepares to go live with the new CARS e-Services program.
Plate Fee Chart for Use During the Shutdown
Dealers are not able to access the plate fee calculator within their CARS e- Services account during the shutdown. To calculate new plate fees and transfer renewal plate fees, please use this Ad Valorem Fee Chart. Fee categories may be obtained from the existing Michigan title if one has been issued, or use the base MSRP of the vehicle in order to calculate the proper fee category. If you have questions contact Debbie Stapleton-Korn at [email protected] or call (800) 292-1923.
Installment Seller License Renewals & Volume of Activity Reports Coming to your inbox in 3 weeks
The Department of Insurance and Financial Services (DIFS) sent an email to dealerships last week notifying dealers of the upcoming installment sellers license (ISL) renewal. The message was sent to the email address on file for each dealership. Any dealer that finances vehicle purchases must have a current ISL license.
DIFS will be emailing your Motor Vehicle Sales Finance Act (MVSFA) annual renewals on or about April 1, 2021 . Also known as your installment sellers or finance license. Submission of your installment sellers license renewal and the filing of your company's Annual Activity Report will be required at the same time this year. The due date for both is June 16, 2021. (Last year the activity report was submitted first, and the ISL was submitted at a later date.) Instructions on how to renew your license and how to file your annual activity will be provided with your renewal packet.
Later this month, MADA will also email helpful tips and reminders for renewing this license. If you have questions, please contact Michelle Brenke at (800) 292-1923 or email [email protected].
Payment With a $100 Bill? You May Want to Check it for Counterfeit
A west Michigan dealer would like to remind others to check $100 bills for potential counterfeit. This dealer recently accepted payment with a $100, which was returned as counterfeit by their bank.
The bank mentioned they are seeing an increase in fake money coming through. It was suggested that businesses check money carefully with a counterfeit pen.
ATD Performance Measurement 2021 is Available
The annual ATD Performance Measurement (NADA login required) provides commercial truck dealers with comparative performance guides to help them assess their dealerships’ performance. This new Driven guide analyzes 60 Critical Operating Variables (COVs) for calendar years 2018 through 2020, and also provides expert commentary on the current and future state of the industry.
News from NADA: SBA Issues Updated PPP Loan FAQs
The Small Business Administration has updated its Paycheck Protection Program (PPP) FAQs to address changes made in December 2020 by the Economic Aid Act. Among other things, the Act extended until March 31, 2021, the date by which new PPP loan applications may be filed, including from certain existing PPP borrowers seeking a second-draw PPP loan. Note that until March 10, 2021, new PPP loan applications may only be filed by certain borrowers with fewer than 20 employees.
SBA’s revised FAQ #46 offers new clarity for borrowers seeking second-draw loans. To be eligible for a second-draw PPP loan, applicants must have had a 25% drop in gross revenues between a comparable calendar quarter in 2019 and 2020. As a matter of law, a second-draw loan applicant also must certify in good faith that “[c]urrent economic uncertainty makes this loan request necessary to support the ongoing operations of the Applicant.” According to FAQ #46, if a second-draw PPP loan applicant can show the required 25% drop in gross revenues, it will be deemed to have made the statutory “necessity certification” in good faith. Simply put, while necessity certifications are required of second-draw loan applicants, SBA apparently does not intend to review or audit certifications made by applicants that show the required gross revenue drop in their loan applications.
FAQ #46 also states that SBA will not combine first- and second- draw loan amounts for purposes of the $2 million loan threshold that triggers the need for a Form 3509 certification questionnaire when filing for loan forgiveness.
Reminder: all dealers, including those who took out PPP loans, should discuss with their financial advisors their eligibility to claim Employee Retention Tax Credits (ERTC). The Economic Aid Act retroactively allows PPP loan borrowers to claim the ERTC for qualified wages not paid for with PPP loan proceeds. It also extended ERTC eligibility through June 30, 2021. To claim the ERTC, a dealership must have had to experience either 1) a full or partial shutdown due to a government order related to the coronavirus pandemic or 2) a significant decline in revenue in a calendar quarter. Regarding the latter, gross receipts must have fallen by at least 50% for the same calendar quarter from 2019 to 2020, or at least 20% for the same calendar quarter from 2019 to 2021. The IRS recently issued updated guidance on this matter.
As always, dealers should discuss the foregoing issues with their financial and legal advisors. Dealers can access more information through the SBA PPP website and NADA’s Coronavirus Hub.
HEADLINES AROUND THE INTERNET news and information you may find interesting
First Lawsuit Challenging Mandatory COVID-19 Vaccine...
Contending that he could not be forced to be a "human guinea pig," a New Mexico detention center officer has filed a federal lawsuit challenging the right of his employer to require first responders to receive the COVID-19 vaccination...Read more
Also from Fisher Phillips: What Employers Need To Know About Biden’s American Rescue Plan...Read more
Granholm says Energy Dept Catalytic Converter Theft to 'double down'... Skyrocketing Nationwide
To aid the administration's clean- According to the National Insurance energy agenda, Granholm said the Crime Bureau (NICB), catalytic department is going to invest billions converter thefts have seen a over the next few years in significant increase across the country technologies that will speed the since March of 2020, the start of the adoption of EVs... global pandemic...
Read more Read more www.autonews.com www.nicb.org
CALENDAR, REMINDERS & EDUCATIONAL OPPORTUNITIES
Information on the COVID-19 vaccine The deadline to complete the 2020 NADA Data in Michigan: Monday, March 22, survey is this Friday, March 12, 2021. Take vaccine eligibility expands to include NADA’s two-question survey, that takes no more all Michiganders 50 and older. than five minutes, to inform NADA Data, an annual report examining 2020 dealership sales, MDHHS Epidemic Orders financial trends and more. Responses will be used anonymously. To participate in the 2020 MIOSHA Workplace Safety Guidance NADA Data Survey, click here.
ADM CAPITOL CORNER
Your legislative update from the Auto Dealers of Michigan, LLC.
Whitmer Pushes Back On GOP’s Nursing Home ‘Talking Point’ Macomb Prosecutor Announces Process For Reviewing Nursing Read Home COVID Deaths Here State Jobless Down To 5.7%, But So Was The Workforce MI In Line For $10.3B From Biden’s COVID-19 Aid Bill
WHEN YOU REVIEW YOUR VENDOR RELATIONSHIPS... please consider some of the many companies that support our association
For more than 60 years, Fenner, Melstrom & Dooling, PLC has provided strategic business Increasing dealer profit, customer consulting, tax, and audit services to privately- retention, CSI, and legal compliance held companies and business owners seeking to by delivering superior products, maximize profits and minimize tax liabilities. We strategic development, and world take pride in providing proactive services, class service. www.glcompanies.com including personal attention and involvement with our engagement team resulting in consistent, quality service. www.fmdcpas.com
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Boyne City first welcomed Ford motor cars in CELEBRATING 100 YEARS OF 1917, and customers of Northern Auto Co. had SUPPORTING DEALERS LIKE YOU. one option - the Ford Model T. The dealership has changed owners through the years (now MADA Fast Facts Bob Mathers Ford), but Ford has maintained its March 19, 2021 • Vol. 23, No. 11 presence at the same address on Water Street in Boyne City for more than 100 years.
NEWSLETTER SPONSOR CARS e-SERVICES MDOS is working to improve system performance
Dealers Resources, Inc. has adopted the The Michigan Department of State is Philosophy of “A Personal Commitment” aware dealers are experiencing to our clients. We are committed to intermittent slowness in e-Services achievement and success in the F&I following this week's system update. This industry. We believe the benchmark F&I may also affect some CVR processes. company is a service and results oriented organization that accomplishes The department has been working with established goals through hard work, DTMB and the vendor to improve determination and effective operating performance and expand communication. processing capacity to alleviate the www.dealersresources.com slowness experienced with the new system over the last few days.
The state apologizes for any inconvenience this may cause and appreciates your patience as they work to get the system operating consistently. MADA will continue to stay in communication with the state and update dealers as needed. If you have questions please contact MADA at (800) 292-1923 or email [email protected].
REMINDER ABOUT ELT AND VEHICLE TRANSACTIONS
Participating lenders - electronic title will be created. It is the responsibility of the financial institution to provide their Lien Code ID to the dealer. MDOS does not provide a lookup for ELT IDs. At launch, not all lenders are participating, but if they are, the title must be processed as electronic. Not processing correctly may lead to the need to recall the title down the road. Letter from SOS for dealers to provide to customers.
Non-participating lenders - paper title will be created. There are currently only a few participating lenders but that number will increase quickly, and eventually it will be mandatory for all lenders to participate. However, if a lender is not currently participating, the transaction should be processed as normal and a paper title will be issued.
American Rescue Plan Act Contains New Business Items
President Biden signed into law the American Rescue Plan Act (ARPA), which expands and extends many of the economic aid programs enacted in 2020. Note: the following summaries are not intended to be exhaustive and only focus on key business issues addressed in the ARPA.
Families First Coronavirus Response Act (FFCRA) The emergency paid leave mandate established by the FFCRA expired on December 31, 2020. Thus, covered employers no longer have an obligation to provide emergency paid sick or family and medical leave. Importantly, the Economic Aid Act (EAA) of December 2020 extended the fully refundable credit against payroll taxes for employers who voluntarily provide such paid leave through March 31, 2021. The ARPA re-extends the tax credit for voluntarily provided emergency leave through September 30, 2021. In addition to all pre-existing FFCRA leave justifications, the ARPA states that the refundable tax credits are available for emergency leave voluntarily provided for (1) employees obtaining COVID-19 immunization (vaccination); (2) employees recovering from any injury, disability, illness or condition related to such vaccination; or (3) employees seeking or awaiting the results of a diagnostic test or medical diagnosis for COVID-19 (or their employer has requested such a test or diagnosis).
The ARPA also increased the wages covered by the leave credit from $10,000 to $12,000 per worker and increased the value of the credits to match an employer’s share of contributions to defined benefit plans and registered apprenticeship programs. New non-discrimination rules make the tax credit unavailable to employers that, in determining the availability of paid leave, discriminate in favor of highly compensated employees, full-time employees or employees based on tenure. Lastly, on April 1, 2021, the 80-hour limit for emergency paid sick leave and 10-week limit for the emergency paid family leave will re-set, enabling employers to voluntarily provide an additional emergency leave to employees who reached those limits prior to that date...
Other Business-Related Provisions Among other things, the ARPA: Subsidizes 100% of COBRA premiums for individuals who involuntarily lose their jobs or have their hours reduced between March 11, 2021, and September 30, 2021. An employer or health plan can claim a refundable tax credit against its Medicare payroll tax liability for the cost of these premiums. COBRA premium assistance ceases once an individual becomes eligible for coverage under another group health plan or Medicare. Individuals who fail to notify their plans when they are no longer assistance-eligible are subject to penalties... Keep reading here
Fisher Phillips: The American Rescue Plan Act Includes Fully Subsidized COBRA Coverage Fenner, Melstrom & Dooling, PLC: Business Highlights In The New American Rescue Plan Act UHY LLP: President Biden Signs American Rescue Plan Act
State Workgroup to Recommend In-person Office Work Policies
To support the return to in-person office work process, the state has established a new Return-to-Office Workgroup. This group consists of business, labor, and public health experts, who will provide Gov. Whitmer with recommendations and best practices for employers to use in planning their own phased reopening.
The state has stated that an extension of the emergency rules is expected, consistent with a phased-in return based on guidance from the group, updated health data, and consultation with appropriate health experts. MIOSHA will soon begin the formal rulemaking process for COVID-19 workplace safety rules. More information about this workgroup is available in the state's Mar. 15 press release .
Sean Egan, Michigan COVID-19 Workplace Safety Director, hosted a live Q & A about the new Return-to-Office Workgroup and answers questions about the recommendations this workgroup will develop for a phased return to office work. View the full video and the presentation for additional information.
Data Point from Cox Automotive The Service Business is Returning, Just in Time
Late last month, according to data compiled by Xtime, a Cox Automotive software brand, the service department business at an average dealership was down approximately 8% from year-earlier levels. An 8% drop in business is serious but, in fact, it’s a big improvement from much of 2020. As the pandemic took hold, mileage dropped and service demand slowed. Business was down by 20% or more for much of last year, severely impacting what are typically strong profits from fixed operations.
The service business is not back to pre-pandemic normal, but it’s getting close, or at least dealers feel that way. In the latest Cox Automotive Dealer Sentiment Index (CADSI), our team began asking franchised auto dealers to describe their current fixed operations business. In Q1, a slight majority reported service business was better than a year ago (index score of 51). Importantly, the same dealers were far more optimistic about their fixed operations business in the coming 90 days, with an index score of 72.
The fact the service business is showing signs of life is good news for dealers. Sales profitability surged to all-time highs in 2020, but those days are likely in the rearview mirror now. According to recent CADSI data, dealers reported record levels of profitability in Q3 and Q4 of 2020 – index scores of 66 and 70, respectively – but lower levels in Q1, as the profit index, at 63, was directionally heading back to a normal level. In 12 quarters stretching from Q2 2017 to Q2 2020, the average index rating was 49.4.
HOW WOULD YOU DESCRIBE YOUR PROFITS OVER THE LAST 3 MONTHS?
Dealers also reported in Q1 that competition was beginning to hold back business, unlike in Q2 and Q3 of 2020 when competition was of little concern... keep reading HEADLINES AROUND THE INTERNET news and information you may find interesting
Vital Role of Dealers to EV CDC: What You Can Do Sales Once You Receive Your COVID Vaccine ... NADA President and CEO Mike Stanton sat down to discuss the More freedom to socialize and a coming transition to electric vehicles return to routine activities are among and the role of dealerships in making the benefits of receiving a COVID-19 that transition a reality. "Franchised vaccine, under guidelines released dealers are making big investments in March 8 by the U.S. Centers for the future of selling EVs. We're ... Disease Control and Prevention.
Read more Read more blog.nada.org www.mibluesperspectives.com
Federal Stimulus Shines New Light on Michigan’s Income Tax Trigger
In A Nutshell The State of Michigan and Michigan local units of government will receive $10.3 billion from the federal government through the American Rescue Plan Act. A rate trigger added to Michigan’s personal income tax law in 2015 will likely reduce the state’s income tax rate in 2023; that could threaten the state’s ability to tap into all of the federal COVID relief funding. The rate trigger is pegged to Fiscal Year (FY) 2021 revenue, which is likely to be unusually below trend because of the pandemic. This could affect Michigan’s state revenue picture far into the future...Read more
CALENDAR, REMINDERS & EDUCATIONAL OPPORTUNITIES
Treasury/IRS extend Fed. Tax Day NADA (Mar. 24) Brand Market Share: From Retail filing & payment deadline for Trends to Recovery individuals to May 17. Info from Plante Moran Fisher Phillips (Mar. 25) HR Investigations: The Good, The Bad, and the Very Important Infon on the COVID-19 vaccine in Michigan Eligibility: Mar. 22 opens BCBS (Mar. 30) Positive Psychology & the Workplace for all 50 and older; Apr. 5 opens for 16 and up NADA (Mar. 30) Cover Your Assets – Safety & Environmental Compliance The White House American Rescue Plan See additional educational opportunities (associate members: have a training program to include? email [email protected] with details.) ADM CAPITOL CORNER
Your legislative update from the Auto Dealers of Michigan, LLC.
R's Consider Special Prosecutor To Explore COVID Deaths As Senate Denounces AG Read Gov. 'Concerned' As COVID-19 Numbers Comfortably Back In Here 2,000+ Range Detroit Mass Vaccination Clinic Teed-up Charges Stand Against Ex-Gov. Snyder
WHEN REVIEWING YOUR VENDOR RELATIONSHIPS... please consider some of the many companies that support our association
Key Bank provides a broad range of AmeriLabs24 offers pre-employment, sophisticated corporate and investment random, post accident & DOT drug testing. banking products, such as merger and Also offer on-site drug testing, Hazmat, Twic acquisition advice, public and private & TSA pre-check interviews, background debt and equity, syndications and fingerprinting with Identogo. Collection site derivatives to middle market companies in for blood work with Quest and Labcorp. selected industries throughout the United https://amerilabs24.com States. www.key.com
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In 1933, William "Bill" H. Berger II moved Berger CELEBRATING 100 YEARS OF Chevrolet to Lake Drive in Grand Rapids. Sales SUPPORTING DEALERS LIKE YOU. volume soon went up to 400 cars a year. People knew that if the U.S. joined the fight overseas, auto production would grind to MADA Fast Facts a standstill. The result was a boom of March 26, 2021 • Vol. 23, No. 12 consumers rushing to get a new vehicle before they couldn't get their hands on one.
NEWSLETTER SPONSOR VACCINE INCENTIVE PROGRAMS information from Colombo & Colombo, P.C.
Dealers Resources, Inc. has adopted the We have received several inquiries Philosophy of “A Personal Commitment” recently relating to providing incentives to our clients. We are committed to to employees in exchange for agreeing achievement and success in the F&I to receive the COVID-19 vaccine and industry. We believe the benchmark F&I whether a dealership, as an employer, company is a service and results would be exposed to any risk or liability if oriented organization that accomplishes it decided to commence some type of established goals through hard work, incentive program. determination and effective communication. Please note that although a vaccine www.dealersresources.com incentive program is not “illegal” or “prohibited” under state or federal law,
it could expose a dealership to employee claims arising under the American’s With Disabilities Act (ADA), Title VII of the Civil Rights Act, the Health Information Portability and Accountability Act (HIPAA), and/or the Fair Labor Standards Act (FLSA) and possibly similar state laws.
The EEOC may construe an incentive program as a “wellness plan” that could subject the dealership to regulation on the types of incentives it can provide and subject it to HIPAA privacy rules. With respect to the ADA, if an employee is unable to be vaccinated for medical reasons, making the employee ineligible for the incentive under the dealership’s program, the employee may be entitled to ask for an accommodation or alternative to be able to earn the incentive.
Additionally, Title VII protects employees with sincerely held religious beliefs preventing them from being vaccinated. In order to avoid a discrimination claim being brought by an employee, the dealership would again need to come up with an alternative way that such a protected employee could earn the incentive. An example of an alternative way to earn the incentive would be completing a training program about the ways in which COVID-19 is spread or watching a COVID-19 workplace safety video.
Finally, incentive payments could be construed as non-discretionary bonuses under the FLSA, which would, in turn, affect overtime rates for those employees eligible to be paid overtime. Therefore, during the pay period in which the employee receives the vaccination, the employee’s regular rate of pay would be increased, thereby increasing any overtime pay earned during that pay period.
If you decide to establish a vaccine incentive program for your dealership employees, we strongly advise that the program be well thought through, drafted and implemented to account for these risks.
For a more in-depth overview of this topic, please see this legal alert from Fisher Phillips: Charting The Risk Associated With Common Workplace COVID-19 Vaccine Incentive Programs
News from NADA: PPP to Stop Taking Applications March 31
Unless extended by Congress, applications for new first- or second- draw PPP loans must be filed by March 31, 2021. Ample funds remain in the PPP and are unlikely to be exhausted prior to the deadline. To be eligible to apply for a second-draw loan, a business must:
have received a first-draw PPP loan and fully used the proceeds for authorized expenses only; have no more than 300 employees; have had at least a 25% reduction in gross receipts between comparable calendar quarters in 2019 and 2020; and certify that the loan is “necessary to support ongoing business operations in light of current economic conditions.”
See key information from the Small Business Administration. Dealers can also find more information on the NADA Coronavirus Hub. As always, dealers interested in a new PPP loan should discuss these issues with their attorneys and financial advisors.
New Business Items in the American Rescue Plan Act
We remind dealers of NADA's recent overview of the American Rescue Plan Act (ARPA), which re-extends the tax credit for voluntarily provided emergency leave through September 30, 2021. The ARPA states that the refundable tax credits are available for emergency leave voluntarily provided for:
(1) employees obtaining COVID-19 immunization (vaccination); (2) employees recovering from any injury, disability, illness or condition related to such vaccination; or (3) employees seeking or awaiting the results of a diagnostic test or medical diagnosis for COVID-19 (or their employer has requested such a test or diagnosis).
Also of note, on April 1, 2021, the 80-hour limit for emergency paid sick leave and 10- week limit for the emergency paid family leave will re-set, enabling employers to voluntarily provide an additional emergency leave to employees who reached those limits prior to that date.
NADA's full overview provides much more information. Please see the link above for many issues that may affect your business. MIOSHA Submits Request for Formal Rulemaking to Preserve Emergency Rules Previously Established
MIOSHA has submitted a Request for Rulemaking to the Michigan Office of Administrative Hearings and Rules that would preserve requirements to mitigate and control the spread of COVID-19 in the workplace. MIOSHA has stated that, once established, the COVID-19 rules will continue to accommodate a smooth transition back to normal while protecting workplace safety and health of employees until such time as these provisions are no longer necessary.
MIOSHA issued emergency rules for COVID-19 which will expire on April 14, 2021. These emergency rules may be extended for an additional 6 months, at which time formal rules would need to be implemented.
As part of the rulemaking process, MIOSHA has established a standards advisory committee that will be working with the agency over the next several weeks to review and advise on a draft rule. This process is separate from other workgroups focused on shorter term COVID-19 needs such as the Return-to-Office Work group, recently launched by the Dept. of Labor and Economic Opportunity.
Read the press release here.
Rebuilding Michigan Program Progress
The Michigan Department of Transportation (MDOT) has launched a new dashboard to track road projects and make information easily accessible to the public as construction continues under the governor’s Rebuilding Michigan program. The program will finance new projects throughout the state and free up funding to expand the scope of other projects or reduce construction times. The new dashboard will be available at Michigan.gov/RebuildingMichigan.
The Rebuilding Michigan Program (2020-2024) objective is to rebuild the state highways and bridges that are critical to the state’s economy and carry the most traffic. The investment strategy is aimed at fixes that result in longer useful lives and improves the condition of the state’s infrastructure.
Member News
With sadness, we inform you of the passing of Daniel Pfeiffer, " the Big Hearted Savings Champ," on March 19, 2021 at the age of 89. For more than 50 years, he was the owner of Pfeiffer Lincoln in Grand Rapids.
Mr. Pfeiffer is survived by daughters Stephanie, Sarah and Stacey. He was preceded in death by Eunice in December 2020, his wife of 64 years. A funeral service was held at the Zaagman Memorial Chapel in Grand Rapids.
Those wishing to make a memorial contribution are asked to consider Faith Hospice.
WOOD TV: Late auto dealer Pfeiffer remembered for generosity View Mr. Pfeiffer's obituary Reminder: Finding EFT information on CARS e-Services
The new CARS e-Services site has a completely new layout and a few dealers have mentioned they are having trouble finding their EFT information on the new site.
From the main CARS page, scroll down to Additional Services and select EFT Management and Miscellaneous. From there, you will need to log in, then select Manage Bank Account.
On a related topic: in case you still need a copy... SOS letter for customers purchasing a vehicle when an electronic title will be issued.
HEADLINES AROUND THE INTERNET news and information you may find interesting
NICB's 'The Informer' Highlights Women in Automotive History 2020 Auto Crime Spikes For over a century, cars and The National Insurance Crime Bureau automobiles have been seen as a (NICB) has released its latest edition of stereotypically male pastime. But The NICB Informer. This edition focuses historically, that's simply not the case. on the alarming increase in crimes Women have been involved in involving vehicles in 2020 and the transportation innovation since the reasons behind this troubling trend... invention of the wheel. In fact, many of the... Read more www.nicb.org Read more magazine.northeast.aaa.com
(associate members: have a blog with articles of interest to auto dealers? send the link toMADA and we will bookmark your content for future newsletter consideration.)
CALENDAR, REMINDERS & EDUCATIONAL OPPORTUNITIES
Fed. Tax Day extension Fisher Phillips (Mar. 30) Potential Insurance Coverage & Employment Implications from COVID-19 Mich. Tax Day extension NADA (Mar. 31) How to Make your Accounts Payable Info on the COVID-19 Paperless for the Automotive Industry vaccine in Michigan Current eligibility: 50-plus; Apr. 5 DADA (Apr. 1 at 1:30pm) Navigating the Path opens for 16 and up to an All-Electric World with Three Parts of the EV Value Chain CDC Guidance for fully vaccinated individuals See additional educational opportunities
ADM CAPITOL CORNER
Your legislative update from the Auto Dealers of Michigan, LLC.
MI's Recent COVID Spike Ranks Among Nation's Highest Senate Wants $1.25M To Investigate Nursing Homes; Hornberger Read Wants $5M Here Senate R's Restaurant Bill Would Have Eateries At 50%, Which They're At '22 Filing Deadline Would Be May 14 Under Map-Drawing Date Proposal
WHEN REVIEWING YOUR VENDOR RELATIONSHIPS... please consider some of the many companies that support our association
Northwood University specializes in managerial and entrepreneurial education, preparing With over 10,000 products available, students for success in their careers and Reynolds and Reynolds offers forms communities by promoting critical thinking skills, and supplies for every department in personal effectiveness, and the importance of your dealership, including ethics, freedom and responsibility. Many standardized, legally-reviewed F&I successful graduates of Northwood's compliance documents. Reynolds Automotive Marketing and Management also offers a variety of products and program have gone on to own or manage services to meet your marketing dealerships or excel in top automotive needs. reysource.com companies. northwood.edu
Michigan Automobile Dealers Association Have a topic suggestion for a future www.michiganada.org newsletter? Send us your ideas. Trouble viewing this message? View as Webpage
Nearly a hundred years ago, Andrew Leutheuser settled in Somerset, MI and opened a store offering dry goods, hardware, appliances, farm implements -- plus sales and service of automobiles. Returning CELEBRATING 100 YEARS OF from Army service after WWII, son Paul was SUPPORTING DEALERS LIKE YOU. managing that store when a customer suggested he represent the Buick franchise in Hillsdale. Now Hillsdale Buick GMC, the dealership got started in MADA Fast Facts late 1950, with just one new Buick. April 2, 2021 • Vol. 23, No. 13
NEWSLETTER SPONSOR MYTHBUSTERS 2021 by Charapp & Weiss, LLP
There are many myths in the car business – things that “everybody knows” that are not necessarily true. Occasionally, we like to bust those The New Standard in Online Dealer myths. Here is mythbusters #1 for 2021. Auctions. ACV Auctions is a full-service, coast-to-coast, wholesale automotive #1. We have a car we took in trade. It’s marketplace, providing unmatched been in a serious accident, but the body transparency that thousands of dealers work is very good. The only way to see trust. Historically, buying and selling evidence of an accident is from the wholesale vehicles is time consuming, unibody damage apparent on the expensive and loaded with risk. Our 20- undercarriage. We plan to sell this used minute online auction provides car without disclosing the damage on immediate access to thousands of an “as is” basis to protect against a dealers while delivering trusted, ACV lawsuit if the buyer discovers the backed vehicle condition reports. previous damage. ACVauctions.com
Facts: Selling a used vehicle “as is” is no protection against a lawsuit if it has known, undisclosed repaired damage that could affect its structural integrity or useful life. Courts have ruled that a dealer who sold a vehicle knowing of such prior damage had an obligation to disclose it. Failure to disclose repaired damage on a used vehicle that could affect its structural integrity or useful life can be the basis for a lawsuit for fraud and for violation of the state unfair and deceptive acts or practices statute.
Sale of a vehicle “as is” means simply that express and implied warranties are waived. Sale of a vehicle “as is” does not immunize a dealer from lawsuits for certain common law or statutory claims. If you sell a used vehicle that has repaired damage that affects its structural integrity or its useful life, disclose the nature and extent of the damage. Selling it “as is” may protect the dealership from a breach of warranty claim, but it will not protect the dealership from a lawsuit with more serious claims.
#2. When we sell a used vehicle with a warranty, we need not give the customer a separate warranty since the warranty information is on the FTC buyer’s guide.
Facts: The FTC buyer’s guide is not a substitute for a written warranty document. The federal Magnusson Moss warranty law requires that a dealer provide a separate warranty document that includes disclosures not on the buyer’s guide.
Any warranty under the Magnusson-Moss Warranty Act must have this specific disclosure that does not appear on the buyer’s guide: “This warranty gives you specific legal rights, and you may also have other rights which vary from state to state.”
Keep reading... Note: articles are for information only and do not constitute legal advice.
Virtual Webinar for MADA Members: ACV Auctions Webinar Optimize Your Used Car Business Wednesday, April 14 11:00 am - 12:00 pm
Webinar Take-Aways *New Sources of Inventory Every day our industry is rapidly adapting to the * How to Acquire Direct from digital world and it’s making sourcing inventory Consumers harder and harder. Do you have a plan to * How to Increase Your Turn combat the big guys buying up your trade-ins * Better Marketing Methods directly from consumers? * Reducing Your Expenses * Enhance Online Transactions In this webinar, industry experts Randy Barone and Stu Zalud will show you how to break away Speakers from ACV Auctions: from the pack and optimize your used car * Randy Barone, VP of Business business. Development * Stu Zalud, Director of Register today and receive an email from MADA Strategic Partnerships prior to the webinar with the Zoom link.
Reminder That the Driver's License Extension Has Expired
The Michigan Department of State reminds Michiganders that March 31 was the last day of the state legislature’s expiration extensions for driver’s licenses, state ID cards, temporary instruction permits, and registrations for vehicles, recreational vehicles and trailers that expired on or after March 1, 2020.
The legislature is currently on spring break so we do not expect a legislative extension in the short-term. MADA will continue to communicate with our MDOS contacts and keep dealers updated with any new information.
Online or self-service renewals. Drivers who haven’t renewed are encouraged to visit Michigan.gov/SOS to renew online or find one of the more than 145 self-service stations across the state. Most customer needs can be handled through this service.
In-person renewals. Customers who are required by law to update the photo on their license or ID are encouraged to book an appointment at Michigan.gov/SOS. Each weekday at 8 am and noon thousands of next-day appointments become available for in-person appointments at branch offices across the state.
CVR Inventory Count is April 13
Count Day Instructions
Dealers are reminded to submit the Q1 inventory count on Tuesday, April 13, 2021, before processing any new CVR transactions. Dealers will not be able to process CVR transactions until the count is submitted.
1. Print an inventory available report from the CVR computer.
2. Verify the report by physically checking the actual inventory to ensure that each plate or tab/permit is present. Sealed boxes do not need to be opened, simply check the labeling on each package.
3. If there are no discrepancies between the printed report and the physical verification, type the inventory numbers (beginning, ending and totals for plates, tabs and permits) into the CVR system. Remember to enter each line separately.
4. Submit the report.
Dealers who do not submit the required information are in violation of their agreement with the Michigan Department of State and risk losing the ability to use the CVR program.
If you have questions, or if you are having difficulty meeting your requirements, please contact your CVR account representative or call CVR Support (800) 333-6995 so that we can help you stay in compliance.
Installment Seller Renewals Are in Process
Example email from DIFS... New for 2021! Your Annual Activity Report must be filed before your license renewal will be processed The Michigan Department of Insurance and Financial & accepted. Services (DIFS) has begun sending installment seller (finance) license renewals by email. The renewal packet is sent to the email address on file for the Important Reminder dealership. Please also see this MADA handout with The bottom of your DIFS helpful tips and guidelines for renewing. email will include unique codes needed to submit If you have not done so already, please view the DIFS your paperwork. email and print the attachments. To renew, you will complete and sign the required renewal documents and electronically submit. Deadline The activity report, MADA would be happy to answer any questions you ePayment & license may have about your renewal paperwork. You may renewal must be contact Michelle Brenke at (800) 292-1923 or email submitted by June 16. [email protected].
How Much do Franchised Dealerships Support our Economy?
MADA encourages Michigan dealers to take part in the NADA Workforce Study. The information collected from dealers will later be used to show the economic importance of franchised dealers in Michigan and the nation. Especially now, as our dealerships are again facing an attack on the franchise system, this economic data is important to show the value of Michigan's dealerships to our state's economy.
The data is also a valuable resource for dealers who use it to compare their dealerships against aggregated data from peers across the nation and region.
There is no cost to participate. In order for Michigan dealers to get the greatest benefit, we need a large percentage of dealers to participate. If you participate annually - thank you. If you have not done so previously, please consider doing so this year.
The results to your dealership and our association are worth the effort put in. Learn more at www.nadaworkforcestudy.com. Enrollment for the 2021 Study closes promptly on April 15, 2021.
"Swipe In" Systems as a COVID-19 Screening Tool?
MIOSHA recently posted a new FAQ to its website addressing the use of "swipe in" systems as a COVID-19 screening tool:
Question: Is the swiping of an ID badge/access card sufficient health screening under MIOSHA COVID-19 Emergency Rule 6(1) where a sign is posted next to the controlled access point instructing employees that by swiping their access badge/card they are confirming that they have performed the self-screening questionnaire and are not at risk of having COVID-19? Is the swipe log an adequate record of the health screening under Rule 11(b)?
Answer: No, this is not a sufficient health screening. Rule 6(1) requires, at a minimum, the completion of a questionnaire covering symptoms and suspected or confirmed exposure to people with possible COVID-19. A questionnaire is a list of questions with a choice of answers which require the person completing it to provide distinct, independent, and individual responses. The questionnaire can be administered to an employee verbally, or by paper or electronic means, provided the employee must indicate responses to each question. An employee viewing signage is not equivalent to the completion of a questionnaire because the individual responses to the questions are not discernable and the act of swiping the identification badge is capable of being completed without the employee having completed the questionnaire. Swiping of an identification badge is insufficient because it is a stand-in or proxy for the act of administering the questionnaire; the screening program must ensure that the questionnaire is administered in actuality. Because a swipe log used in this fashion is capable of capturing employees who have not in fact completed the health screening questionnaire, the swipe log alone is not an adequate record of the health screening for purposes of Rule 11(b).
On a related topic, MIOSHA has launched a COVID-19 enforcement actions dashboard, which will be updated at Michigan.gov/MIOSHACOVIDCitations each Friday at 3 p.m.
Nominate a Deserving Dealer
Please help us recognize MADA dealers who exemplify what it means to be upstanding community members. Review the dealer nomination form and nominate a dealer you believe deserves to be recognized for one of the following awards:
Northwood Dealer Education Award TIME Dealer of the Year Award Recipients of this award have made In addition to exhibiting exceptional noteworthy contributions to education, performance in their dealerships, nominees inside or outside of the industry. They are perform heroic community service and are recognized for substantial dedication to the strong advocates for improving the world educational process and the field of around them. automotive marketing.
HEADLINES AROUND THE INTERNET news and information you may find interesting
New COVID-19 Stimulus - 5 Things You Need To Know
The latest COVID-19 stimulus package, Historic Michigan lighthouses the American Rescue Plan Act receive preservation grants (ARPA), contains a myriad of provisions to provide relief to Three historic Michigan lighthouses will individuals and employers - including receive repairs and restoration with some important changes to employer the help of $126,667 in Michigan tax credits that have somewhat flown Lighthouse Assistance Program (MLAP) under... grants...
Read more Read more www.fisherphillips.com www.michiganbusiness.org
CALENDAR, REMINDERS & EDUCATIONAL OPPORTUNITIES
Coming up! EEO-1 Data NADA (Apr. 7) Tax and Succession Planning Under the Collection begins Apr. 26 Biden Administration
IRS extends additional tax BCBS (Apr. 13) Anxiety in the Workplace. Join Dr. Beecroft deadlines for individuals as he talks about how anxiety impacts the workplace. Mich. Tax Day extension Fisher Phillips (Apr. 15) OSHA Update and Expected Additional Changes Under The Biden Administration COVID-19 vaccine in Mich. Apr. 5 opens for 16+ Zurich (April 19-21) Virtual Service Advisor Training. Each day covers a different training segment on the key CDC Guidance for fully elements of the Service Drive. vaccinated See additional educational opportunities
April is Distracted Driving Awareness Month. Though traffic has dropped significantly since the start of the COVID-19 pandemic, our roads have only gotten more dangerous . On a typical day, more than 700 people are still injured in distracted driving crashes. Talking on a cell phone – even hands-free – or texting or programming an in-vehicle infotainment system diverts your attention away from driving. Join NSC during Distracted Driving Awareness Month in April to help make our roadways and our people safer.
WHEN REVIEWING YOUR VENDOR RELATIONSHIPS... please consider some of the many companies that support our association
Rehmann has provided one-on-one Providing integrated technology solutions, financial services to businesses throughout making it easy for dealers to achieve Michigan since 1941. Offering a specialized measurable results and drive additional team of business consultants, corporate profit in every area of investigators, tax service providers & operations. Integrated products and dealership CFOs who understand the solutions provide accurate, real-time unique needs of auto dealers. information to make faster, better decisions rehmann.com for your dealership. cdkglobal.com
Michigan Automobile Dealers Association Have a topic suggestion for a future www.michiganada.org newsletter? Send us your ideas. Trouble viewing this message? View as Webpage
Roy Edwin O'Brien Sr., opened a Ford dealership on March 14, 1946 at the corner of Nine Mile Rd and Mack Ave in St. Clair Shores. CELEBRATING 100 YEARS OF He had a $50,000 investment, ten employees, and no new cars for sale! World War II was SUPPORTING DEALERS LIKE YOU. ending, but new vehicles were hard to come by since war had shifted auto production to MADA Fast Facts war munitions and equipment. (Check out the April 9, 2021 • Vol. 23, No. 14 original Nine Mile & Mack jingle.)
NEWSLETTER SPONSOR FAIR CREDIT and VOLUNTARY PRODUCT PROTECTION Merchants Bonding Company is among Zoom meeting on May 19 the top 15 surety writers in the United States. For more than 80 years, MADA dealers and dealership staff are Merchants has honed its expertise in invited to join us for a virtual meeting surety, offering first-class service and a with Paul Metrey from NADA. Mr. Metrey common sense underwriting approach is the vice president of Regulatory Affairs to give our agents an edge. and chief regulatory counsel, financial services, privacy and tax for NADA. He Contact MADA at (800) 292-1923 for represents dealer interests before, and more information about dealer bonds. educates dealers on regulations promulgated by, federal executive branch agencies that oversee dealer operations.
This special speaker program will be held in conjunction with the MADA board meeting.
Wednesday, May 19, 2021 via Zoom (register)
MADA Board Meeting at 9:30am We ask our board members to join us at 9:30am for an update on the association, plus a review of current legal and state regulatory issues. You do not need to be a board member to attend, but participation in the board meeting is limited to MADA dealers or a manager designated by the dealer.
NADA Presentation from 10:30-11:30am, with time for Q&A The meeting will then open to all (including dealership staff) at 10:30am. The presentation from Paul Metrey with NADA will cover two issues that are becoming increasingly important for dealers and staff to understand -- fair credit compliance and voluntary protection product rules. NADA has worked with other dealer advocacy groups to develop policy guides that dealers can adopt to maintain compliance. Mr. Metrey will review these guides and help dealers understand their federal responsibilities.
Fair credit compliance. Consumer Voluntary protection products. advocacy groups have long argued that Many consumer advocacy groups the portion of the APR that dealers earn for have also advanced a series of originating a credit contract - known as concerns about voluntary dealer participation or dealer reserve - is protection products and called on charged by dealers in an arbitrary and the government to enact new inconsistent manner that can lead to measures to address them. It’s unlawful credit discrimination against important to understand the threat consumers. The Department of Justice has to voluntary protection products. stated that exercising pricing discretion presents this risk, but that there are also The optional Model Dealership ways to manage it. Voluntary Protections Products Policy addresses each major area The optional Fair Credit Compliance Policy of concern by offering dealerships & Program adopts and builds on the DOJ a series of principles and actions it approach to both ensure consumers are can adopt to strengthen its offered fair access to credit and protect selection, offering, presentation, dealers against pricing discrimination and sale of VPPs. Coupled with claims. As this issue is expected to gain any additional requirements at the considerably more attention in the months state or local level, this can foster a ahead, it is essential that dealers better customer experience while understand this threat and an effective way helping to protect the dealership. to address it.
Dealership Spring Cleaning
Spring is a great time to take a fresh look at your operational checklists, remind staff as needed, and make sure everyone is up-to-date. Here are a few compliance reminders:
Dealer and repair facility compliance checklists
For a comprehensive list of compliance requirements, the Michigan Department of State(MDOS) reminds dealers to consult the dealer and repair facility manuals. However, for your convenience MDOS has created checklists that can be used for a quick reference of items that will be inspected when a MDOS compliance inspector shows up at your store.
Vehicle Dealer A & B Checklist Repair Facility Checklist
Also see the dealer manual (various chapters revised in 2021) and repair facility manual (all chapters revised 12/20 or 3/21). The repair facility manual received significant changes in December 2020 and was again updated in March. Please see this overview of the chapter revisions.
For additional guidance, dealer and staff training is available through the state. See dates for dealer training and repair facility / mechanic training.
Proper licensing for your finance companies Dealers should always make sure the finance companies being used are properly licensed to do business in Michigan. Installment sellers subject to the MVSFA may not assign or sell a Motor Vehicle Installment Sale Contract to an entity unless that entity is licensed as a Sales Finance Company under the MVSFA or is licensed under the Consumer Financial Services Act, MCL 487.2051 et seq.
Dealers have been cited during past state inspections for using finance companies without a proper Michigan license.
Dealers can verify if a company has a Sales Finance license here. (P.S. This is the same link dealers use to look up their own installment seller license.)
Federal advertising requirements
This dealer guide from NADA assists new-car dealers in complying with federal advertising requirements on the sale, financing and leasing of automotive products and services. There are examples of "bad" and "good" ads, and chapters on 41 different federal advertising topics, such as discount claims, email advertising, "green" claims, Internet advertising, satisfaction guarantees and trigger terms. Readers can access the content and references easily by means of hyperlinks throughout.
There are plenty of examples of "bad advertising" cited by the FTC.
Webinar Reminder: Optimize Your Used Car Business Wednesday, April 14 from 11:00am - 12:00pm
Please forward this webinar information to your GM, used car manager or others in your dealership who may benefit from the discussion!
There is still time to register for this webinar hosted by MADA and presented by ACV Auctions. The Zoom meeting link will be emailed to pre-registered attendees on Monday.
Every day our industry is rapidly adapting to the digital world and it’s making sourcing inventory harder and harder. Do you have a plan to combat the big guys buying up your trade-ins directly from consumers? In this webinar, industry experts Randy Barone and Stu Zalud will show you how to break away from the pack and optimize your used car business.
The Detroit Pistons organization has offered MADA members, their family and friends special Detroit Pistons ticket offers during the 2021 season. All offers this season include a free ticket to the 2021-22 inaugural season of the Motor City Cruise. These prices are not available to the general public and there is limited availability. (Current Health & Safety Guidelines only allow for 750 fans at each home game.) See this handout for more information, or visit pistons.com/specialoffer (promo code: MADA).
Note: MADA is not involved with coordination of this promotion or event attendance, we are simply passing along an opportunity for dealers. EEO-1 Data Collection Begins April 26
After delaying the opening of the 2019 EEO-1 Component 1 data collection because of the COVID-19 public health emergency, the EEOC has announced that the 2019 and 2020 EEO-1 Component 1 Data Collection will open on Monday, April 26th, 2021. Filers should begin preparing to submit 2019 and 2020 data in anticipation of this opening. The deadline for submitting both 2019 and 2020 data will be Monday, July 19th, 2021.
The EEOC requires dealerships with more than 100 employees to file annually an Employer Information Report (EEO-1 Report). The EEO-1 Report asks for the number of employees sorted by job category, race, ethnicity and gender. Dealerships must also display an “EEO is the Law” poster.
When the collection opens, resources to assist filers with their submissions will be available on a new dedicated website for the EEOC’s data collections at https://EEOCdata.org. The EEOC Filer Support Team will also be available to respond to filer inquiries and to provide additional filling assistance. Filers will receive notification emails. A notification letter will also be sent to EEO-1 Component 1 filers closer to the data collection opening.
New from the CDC: Variants of the Virus that Causes COVID-19
Viruses constantly change through mutation, and new variants of a virus are expected to occur over time. Sometimes new variants emerge and disappear. Other times, new variants emerge and persist. Multiple variants of the virus that causes COVID-19 have been documented in the United States and globally during this pandemic.
There are currently five variants of concern (VOC) in the United States.
B.1.1.7: This variant was first identified in the US in December 2020. It was initially detected in the UK.
B.1.351: This variant was first identified in the US at the end of January 2021. It was initially detected in South Africa in December 2020.
P.1: This variant was first detected in the US in January 2021. P.1 was initially identified in travelers from Brazil, who were tested during routine screening at an airport in Japan, in early January.
B.1.427 and B.1.429: These two variants were first identified in California in February 2021 and were classified as VOCs in March 2021.
As of April 6 in Michigan , 1,998 B.1.1.7 (U.K.) cases have been identified, with 513 of those (26%) connected to a Michigan Department of Corrections outbreak. Additionally, eight cases of the B.1.351 or South African variant have been identified, three cases of P.1 or the Brazilian variant and 16 cases of the B.1.427 and B.1.429 or California variant have been discovered.
Visit the CDC's New COVID-19 Variants web page for additional information. Michigan also has an FAQ document with updated information on the variants in our state. (See page 7.) MDHHS Eliminates Option for 10-Day Quarantine
Also included in the Michigan FAQ is updated guidance on the quarantine timeframe for "close contacts." The document now states that people who have been exposed to someone with COVID-19 must quarantine and monitor themselves for symptoms for 14 days following exposure. If you show any symptoms of the virus, you should immediately isolate and get tested. (See page 13.)
Due to increasing case rates and variant spread in Michigan, MDHHS has reinstated a standard 14-day quarantine for close contacts of COVID-19 cases effective April 5, 2021.
HEADLINES AROUND THE INTERNET news and information you may find interesting
March New Light-Vehicle Auto Sales Incredibly Strong Three Things You Can Do to Feel Healthier Right Now New light-vehicle sales in March 2021 were stellar. March's SAAR of 17.75 While you can’t wave a magic million units is the second highest of all wellness wand over every aspect of time for the month and just shy of your life, there are some small steps March 2000. March 2021 sales were that can make a difference in how likely spurred on by delayed sales you look and feel in as little as a caused by severe winter... week...
Read more Read more blog.nada.org www.ahealthiermichigan.org
CALENDAR, REMINDERS & EDUCATIONAL OPPORTUNITIES
Individual SOS branch Fisher Phillips (Apr. 14) Summer Work Can Be Fun, But closings / re-openings (due Don’t Assume the FLSA is on Vacation to COVID-19 exposure, etc.) are often posted on the SOS NADA (Apr. 21) How to Make Your Dealership's Payments Facebook page or "alerts" Work for You on the branch locator DADA (Apr. 22) Kurt Berryman will begin with NADA Workforce Study - "The Berryman Top 5," followed by an Apr. 15 deadline interview with State Rep. John Cherry , who is serving his second term representing the Nominate a dealer! 49th House District.
Michigan's FAQ on COVID- Fisher Phillips (Apr. 22) Advanced HR Webinar Series: The 19 (rev. Apr. 5) Importance of Conclusions in Investigations CDC COVID-19 weekly data tracker See additional educational opportunities
ADM CAPITOL CORNER
Your legislative update from the Auto Dealers of Michigan, LLC.
MRG Poll: 63% Support Limiting Gov's Emergency Powers Police Scanner Chatter Gives Some Details On Jones' Incident Read Fewer COVID-19 Tests Than Fall 2020, Surge Makes Investigation Here Need Hard To Keep Up With Credit Unions Weigh In On State's Online Betting Wager
WHEN REVIEWING YOUR VENDOR RELATIONSHIPS... please consider some of the many companies that support our association
A pioneer and leading dealer advocate Our customized dealer finance solutions for Retail Warranty Reimbursement, having offer competitive interest rates and floor successfully obtained hundreds of millions plan terms. Finance options include the of dollars in retail warranty increases over improvement or expansion of your facilities the past 30 years for dealerships across the as you grow. We strive to add compelling nation. Belavia Blatt, P.C. provides a unique value to our relationship by helping your expertise and understanding of Michigan's business via: succession planning, treasury warranty reimbursement statutes, so management and personal banking. dealers can maximize their Retail Warranty www.53.com Reimbursement. www.DealerLaw.com
Michigan Automobile Dealers Association Have a topic suggestion for a future www.michiganada.org newsletter? Send us your ideas. Trouble viewing this message? View as Webpage
In the 1920s Matt Urka (pictured in 1966 with Bob Urka) started in the car business in CELEBRATING 100 YEARS OF Scottville as a mechanic. He sold used vehicles SUPPORTING DEALERS LIKE YOU. for a bit before getting the Nash franchise in 1937. Now a Buick Chevrolet store in MADA Fast Facts Ludington, Urka Auto Center's fourth April 16, 2021 • Vol. 23, No. 15 generation continues to serve customers.
NEWSLETTER SPONSOR MIOSHA EMERGENCY RULES EXTENDED now in place through Oct. 14, 2021
I think we all knew this update was coming. MIOSHA's emergency rules for Merchants Bonding Company is among workplace safety and COVID-19 the top 15 surety writers in the United mitigation have officially been States. For more than 80 years, extended through October 14, 2021. Merchants has honed its expertise in surety, offering first-class service and a Under the emergency rules, businesses common sense underwriting approach that resume in-person work must, to give our agents an edge. among other things, have a written COVID-19 preparedness and response Contact MADA at (800) 292-1923 for plan and provide training to their more information about dealer bonds. employees that covers, at a minimum, workplace infection-control practices,
the proper use of personal protection equipment (PPE), steps workers must take to notify the business or operation of any symptoms of COVID-19 or a suspected or confirmed diagnosis of COVID-19, and how to report unsafe working conditions.
Employers must continue to implement policies for remote work when feasible. While in-person work is permitted when remote work is not feasible, remote work is recommended as a strategy to minimize in-person contacts.
The rules establish workplace safety requirements and employers should coordinate these requirements with the MDHHS Emergency Order restricting gathering sizes, requiring face coverings in public spaces, placing capacity limitations on stores, and providing safer workplaces.
Employers and employees with questions regarding workplace safety and health may contact MIOSHA using the new hotline at 855-SAFE-C19 (855-723-3219). To learn more about the efforts to support a safe reopening in Michigan, visit Michigan.gov/COVIDWorkplaceSafety. View the full MIOSHA press release
On a related topic... Unemployment Extended Benefits program ends April 17
Due to the State of Michigan's lower unemployment rate, the U.S. Department of Labor notified the Michigan Unemployment Insurance Agency to confirm that our state's Extended Benefits (EB) program will no longer be payable after the week ending April 17, 2021. Extended Benefits are available when a Michigan's total unemployment rate averages 6.5% or higher for three consecutive months...keep reading
MDOS Requests Technician Feedback on New Mechanic Tests
A number of Michigan dealers recently recommended a few of their technicians to participate in a workgroup with MDOS to discuss technician training and testing. The goal was to get additional insight into the information being tested, real-world experience, advancing technology and other issues of importance to repair facilities. With this information, the Michigan Department of State has revised the state certification testing for mechanics and technicians. At the moment, the new test is still in beta form for all testing categories.
Before releasing the new mechanic tests, especially the more sophisticated test categories, MDOS would like to again get dealership input to make sure the rewritten tests perform and score properly when a technician is actually taking the test. From an experienced technician viewpoint: do the questions read properly, are the instructions easy to understand, does scoring add up correctly?
Sign up to take a test and give your feedback...
MDOS is specifically in need of technicians to take the testing levels that generally require more knowledge and experience in automotive repair. Dealers who may be interested in scheduling a proctored test at their dealership with one or two of their technicians are asked to sign up here. MDOS will follow up with interested dealers and provide more information and scheduling opportunities. Questions can be directed to MADA at [email protected].
BONUS! A few of our corporate sponsors want to support dealers who choose to help the state. They are offering a $50 food gift card to the first 20 dealers allowing two technicians to take the beta test. We all appreciate your willingness to allow your techs to help, and want to say thanks with the basic necessity...food!!
MDOS thanks you in advance for your assistance. We realize that automotive technicians are in high demand and proper testing is important. Consumers and dealers both want highly qualified technicians and the updated testing through MDOS is just one of the methods to advance that process.
Recent Legal Alerts from Fisher Phillips Discuss Key COVID-19 Employer Issues
April 8 -- A Pointed Question: How To Ask Employees If They’ve Been Vaccinated Without Having To Call Your Lawyer First
A Simple Vaccine Question is Okay, But Be Wary of Going Further. The EEOC has indicated in recent guidance that it is generally permissible for employers to ask employees about COVID-19 vaccination status. That’s because this simple question alone is not likely to elicit information from the employee about possible medical conditions, an inquiry that otherwise would invoke federal or state disability laws...keep reading
April 8 -- DOL Issues Guidance to Help Employers Understand Obligations Regarding COBRA Premium Assistance Provisions in the American Rescue Plan Act
The DOL has now issued a set of Frequently Asked Questions and a series of Model Notices to help clarify how employers must comply with ARPA’s COBRA assistance provisions. What do employers need to know about this April 7 release?...keep reading
April 8 -- Facemasks Add New Twist To Reasonable Accommodation Debate, Demonstrated by Latest COVID-19 Lawsuit
...although federal and state disability law requires employers to address both legal and practical issues relating to reasonable accommodations in connection with employees’ disabilities, employers must now be mindful of these statutes’ implications on one of COVID-19’s most widespread prevention measures: facemasks. Handling this issue incorrectly could lead to a lawsuit, as an Ohio retail establishment recently discovered...keep reading
April 14 -- COVID-19 Employment Lawsuits Premised on State Law Violations on the Rise
While many COVID-19-related employment lawsuits are based on federal laws such as the Families First Coronavirus Response Act, it is important to be aware that state laws are also the subject of many pandemic workplace lawsuits. South Carolina, for example, has seen five recent COVID-19 actions filed alleging violations of state law that were in effect prior to the pandemic. This is part of a nationwide trend of plaintiffs’ attorneys bringing state law claims on behalf of employees alleging their termination violated state laws and regulations, which are often far kinder to workers than employers...keep reading
Dealerships Drive the Economy
NADA's recently released state-by-state retail data shows the auto industry's impact on the overall U.S. economy, including employment and payroll figures, tax data and more.
Based on 2020 data, Michigan dealerships created 70,725 total jobs (which includes induced jobs) and supported a $2.1 billion payroll. This includes $575 million paid toward state and federal income taxes (based on direct, indirect and induced jobs). Michigan accounted for 3.9 percent of total U.S. new- vehicle registrations, and $2.3 billion in state sales tax paid! Read more:
Michigan report U.S. report
SOS COVID-19 Close Contact Closures It appears the Secretary of State branch closings are coming at a quicker pace right now, and often on short notice. (As of Friday morning, the list shows 9 closed branches.) The Michigan Department of State has been emailing a notice to dealerships when their designated branch is closed, but we realize the email might not get forwarded to the person at the dealership who needs to see it.
Before heading to the branch for a drop-off, you may want to check the "alerts" posted on the branch office locator. (After opening the web page, click the drop down on the alerts box.)This seems to be updated regularly.
The search locator can also be found from the CARS e- Services main page. Scroll to the bottom Visit a Branch box and select Find a Secretary of State Branch. These closings are often posted to the SOS Facebook and Twitter pages, as well, sometimes with additional information.
HEADLINES AROUND THE INTERNET news and information you may find interesting
With COVID's Fiscal Impact Ideas for building a better Clearer, Lawmakers Should... county tax system...
In A Nutshell A rate trigger added to This article appears in the Michigan Michigan's personal income tax law in Counties newsletter of the Michigan 2015 will likely reduce the state's Association of Counties If we were income tax rate and associated creating county government today, income tax revenues in 2023. The rate we would likely design governance, trigger is pegged to Fiscal Year revenue, and service structures (FY)2021 General Fund revenue... different from the current model. We...
Read more Read more crcmich.org crcmich.org
CALENDAR, REMINDERS & EDUCATIONAL OPPORTUNITIES
Nominate a Michigan DADA (Apr. 22) Kurt Berryman will open with "The dealer! Berryman Top 5," followed by an interview with State Rep. John Cherry, who is serving his second term representing Michigan's FAQ on COVID- the 49th House District. 19 (rev. Apr. 15) CAPTRUST (Apr. 22) Preparing Your Financial and Personal CDC COVID-19 weekly data Health “Portfolios” for Longevity tracker MADA (May 19) Board meeting followed by presentation Michigan vaccine from Paul Metrey with NADA, covering fair credit information compliance and voluntary protection product rules.
See additional educational opportunities
ADM CAPITOL CORNER
Your legislative update from the Auto Dealers of Michigan, LLC.
9 SOS Branches Closed Due To COVID Exposure Third COVID Surge Labeled A 'Runaway Train' Read Benson: MI GOP Election Reforms More Restrictive Than Georgia Here Package Redistricting Commission Has 'Work To Do' In Introducing Itself To Public
WHEN REVIEWING YOUR VENDOR RELATIONSHIPS... please consider some of the many companies that support our association
David B. Parmenter & Associates, Inc.
Paul V. Engstrom & Co., L.L.P. provides a Human Resource consulting firm offering wide range of services to individuals and dealer specific services, including businesses in a variety of industries, employee handbooks, supervisory training, including dealerships. Our firm strives to employee relations troubleshooting, meet each client's specific needs in managerial coaching for improved planning for the future and achieving their performance. We have provided services goals in an ever-changing financial and to franchise dealers for nearly 40 years. regulatory environment. pvecpa.com
Please contact Debbie Stapleton-Korn for more information on our many associate partners.
Michigan Automobile Dealers Association Have a topic suggestion for a future www.michiganada.org newsletter? Send us your ideas. Trouble viewing this message? View as Webpage
Detroit traffic officer William Potts created a three-color, four-way traffic signal in 1920. Previous illuminated signals used only red and CELEBRATING 100 YEARS OF green lights. The addition of an amber SUPPORTING DEALERS LIKE YOU. "caution" light made driving safer and the three-color signal became the standard by the MADA Fast Facts mid-1930s. This first traffic light was installed at April 23, 2021 • Vol. 23, No. 16 Woodward Ave. and Fort Street in Detroit.
NEWSLETTER SPONSOR WANTED! YOUR HISTORICAL KNOWLEDGE share your photos and memories
MADA has heard from many dealers who are enjoying the dealership and With over 10,000 products available, automotive history highlighted in Fast Reynolds and Reynolds offers forms and Facts each week. A number of dealers supplies for every department in your have sent photos, and Google has dealership, including standardized, been a friend, but it would be great to legally-reviewed F&I compliance receive more photos, stories and documents. Reynolds also offers a dealership history directly from members variety of products and services to meet to keep the history going throughout our your marketing needs. reysource.com 100th anniversary. Please send your information to [email protected].
Share fun memories and brag about your family! If you have a fond memory of a past convention...great story of a friend who is no longer with us...or a special story about your dealership...we want to share your memories. Michigan has a long and strong automotive history and our dealerships are a big part of that history.
Dealerships closing in on the 100 year mark (or already made it) NADA also recognizes dealer families with the Century Award. If you haven't been recognized for being in business for 100 continuous years, or if you are closing in on that number, please let MADA know. We will notify NADA so you receive the proper recognition for your long and proud history in the automotive industry. MADA enjoys the opportunity to celebrate with you!
To share your story or ask questions, please email [email protected].
NADA Calling On Dealers to Complete the Human Capital Management Survey NADA is launching the first-ever Human Capital Management Survey, designed to collect data on the healthcare benefits dealers are offering, how new hires are trained and paid, scheduling, retirement benefits and more. Dealers are asked to participate in this 30-minute survey by May 28, 2021. Participating dealers will receive a complimentary copy of the Human Capital Management Survey Report.
Click here to participate.
Safe Harbor to Claim Deductions Relating to First-round PPP Loans
The Treasury Department and the Internal Revenue Service issued Revenue Procedure 2021-20 for certain businesses that received first-round Paycheck Protection Program (PPP) loans but did not deduct any of the original eligible expenses because they relied on guidance issued before the enactment of tax relief legislation in December of 2020.
Under prior guidance, businesses that received PPP loans to cover payroll costs, interest on covered mortgage obligations, covered rent obligation payments, and covered utility payments could not deduct corresponding expenses.
With the Dec. 27, 2020, enactment of the Consolidated Appropriations Act, 2021, businesses now may claim these deductions even though they received PPP loans to cover original eligible expenses. These businesses can use the safe harbor provided by this guidance to deduct those expenses on the return for the immediately subsequent year.
Michigan Dealerships Set a New Record for Sales Tax Collections
The Michigan Senate Fiscal Agency released its newest monthly revenue report, which shows how much Michigan dealerships are supporting the reopening of our state economy.
SALES TAX March 2021 sales tax receipts increased 7.1% from March 2020 but were $29.3 million below the forecasted level. Fiscal year-to-date sales tax collections through March 2021 were up 1.8% from fiscal year (FY) 2019-20, and $23.2 million above the forecasted level.
Sales tax collections from vehicle sales reached an all-time record in March 2021, at $129.3 million. On a fiscal year-to-date basis, collections from vehicle sales were up 24.1% while other sales are down 1.2%.
USE TAX Use tax collections were up 42.7% from March 2020 and $57.4 million above the forecasted level, although there was a transfer this month of approximately $60.0 million from sales tax to use tax, which lowered sales tax collections and increased use tax collections. Fiscal year-to-date use tax collections were up 51.5% from FY 2019-20 and $203.6 million above the forecasted level
CDC Science Brief: Surface Transmission of COVID-19 Word of the day! FOMITES: objects or materials which are likely to carry infection.
The U.S. Centers for Disease Control and Prevention (CDC) recently announced that studies of surface (fomite) transmission have shown that the risk for catching COVID-19 from surfaces is low. Findings have shown that "each contact with a contaminated surface has less than a 1 in 10,000 chance of causing an infection."
The principal mode by which people are infected with SARS-CoV-2 (the virus that causes COVID-19) is through exposure to respiratory droplets carrying infectious virus.
It is possible for people to be infected through contact with contaminated surfaces or objects, however the risk is generally considered to be low. In most situations, cleaning surfaces using soap or detergent, and not disinfecting, is enough to reduce risk. Disinfection is recommended in indoor community settings where there has been a suspected or confirmed case of COVID-19 within the last 24 hours. The risk of fomite transmission can be reduced by wearing masks consistently and correctly, practicing hand hygiene, cleaning, and taking other measures to maintain healthy facilities.
Stay Vigilant and Avoid Scams
News headlines across the country show an increase in crimes targeting dealerships... stolen vehicles, stolen parts, identity theft and fake documents. The typical players are taking advantage of the pandemic and using many of their old tricks.
Recently a West Michigan dealer’s policies paid off when a potential customer used a fake paystub and fake credit card to try and purchase a vehicle. Nice work! Especially now, while we are maintaining distance and offering more remote and electronic options, we remind dealers to have policies in place for verifying a person's identity - and make sure staff are familiar with your policies.
The FTC's Data Book 2020 shows 72,535 reported incidences of identity theft related to auto loans / leases (page 14). That is a whopping +88% difference from the previous year!
REMINDER: EEO-1 Data Collection Begins April 26
After delaying the opening of the 2019 EEO-1 Component 1 data collection because of the COVID-19 public health emergency, the EEOC has announced that the 2019 and 2020 EEO-1 Component 1 Data Collection will open on Monday, April 26th, 2021. Filers should begin preparing to submit 2019 and 2020 data in anticipation of this opening. The deadline for submitting both 2019 and 2020 data will be Monday, July 19th, 2021.
The EEOC requires dealerships with more than 100 employees to file annually an Employer Information Report (EEO-1 Report). The EEO-1 Report asks for the number of employees sorted by job category, race, ethnicity and gender. Dealerships must also display an “EEO is the Law” poster.
When the collection opens, resources to assist filers with their submissions will be available on a new dedicated website for the EEOC’s data collections at https://EEOCdata.org. The EEOC Filer Support Team will also be available to respond to filer inquiries and to provide additional filling assistance. Filers will receive notification emails. A notification letter will also be sent to EEO-1 Component 1 filers closer to the data collection opening. Charapp & Weiss, LLP: Service Department Fees
NOTE: this is the last month we will be including a copy of the 2021 Charapp & Weiss, LLP articles in Fast Facts. After this month, the newsletter will return to a complimentary publication for MADPAC contributors. If you have not yet made your 2021 MADPAC contribution, please call MADA at (800) 292-1923 for additional information.
Chances are that you include fees to your service customers in addition to parts and labor charges. It has been nearly two decades since there was a major challenge to a fee added to repair orders. There, the national chain Jiffy Lube was charging an “environmental fee” or an “environmental service fee” for each oil change. Jiffy Lube was a defendant in several lawsuits charging that the fee was not disclosed before services were completed. The plaintiffs also contended that the label of the fee suggested it was a governmental and/or a regulatory charge when that was not the case. The lawsuits charged that while customers believed the fees were connected with the governmental obligations to dispose of used oil and filters, the stores sold the used oil to recyclers and the charges were simply “profit enhancers”. The Jiffy Lube class action, like many do, ended by settlement with a $5.00 coupon for each class member and attorneys’ fees of $2.75 million.
Don’t wait to review the fees on your ROs until you are challenged. Analyze them now, and be sure that you can justify them.
Here are tips to avoid claims resulting from service department fees:
Before imposing any fee on a repair order, carefully consider whether state law or local ordinances may regulate the practice. Dealers are used to searching out state laws that apply to them, but with vehicle repairs, many localities have regulated the practices of repair shops. Dealers should be as mindful of local regulations as they are of state legislation.
To avoid the claim that customers are not made aware of the fees of the service department, consider disclosing the applicability of fees in the service lane, on night drop tickets, on estimates, and on repair orders....keep reading
Also in the April 2021 Charapp & Weiss, LLP Newsletter
Recalls – Best Practices. As a franchised dealer, you regularly deal with issues arising from factory recalls. As a best practice, you should involve all departments of your dealership. Under federal law, you cannot deliver a new car subject to a recall unless it is repaired. Unfortunately, we sometimes see deals involving new cars delivered with open recalls because the vehicle was not flagged as undeliverable in the dealership’s system...
A Lawyer is Paid More for a Letter than a Phone Call. We sometimes get a call from a client claiming that a customer’s lawyer called the dealership looking to discuss the client’s deal (or most often to discuss terminating the deal). The first question to our client is how the dealership knows the caller is really an attorney...
EEO-1 Filing Dates. Motor vehicle dealers with more than one hundred employees, or those that are affiliated through common ownership and/or centralized management of more than one entity in an enterprise with a total of one hundred or more employees, are subject to the EEO-1 component 1 report obligations....
HEADLINES AROUND THE INTERNET news and information you may find interesting
Tax advantages of hiring your Electrified Vehicle Growth child at your small... Energized in Q1
As a business owner, you should be Q1 2021 was big for electrified aware that you can save family vehicles. In all, electrified vehicles - the income and payroll taxes by putting combined total of EVs, hybrids and your child on the payroll. Here are plug-in hybrids - accounted for 7.8% of some considerations. You can turn the total sales last quarter, up from some of your high-taxed income into... 4.8% in the same period one...
Read more Read more www.fmdcpas.com www.coxautoinc.com
CALENDAR, REMINDERS & EDUCATIONAL OPPORTUNITIES
Individual SOS branch NADA (Apr. 28) NextGen Mobility: The Revolution is Already closings: see branch Here locator "alerts" (6 active) Fisher Phillips (Apr. 29) A Reflection on the Last Year and a Look Nominate a dealer! Forward to Next Year in the Automotive Dealership Industry
Sign up to review new MADA (May 19) Register for the fair credit compliance & SOS mechanic voluntary products rule webinar with NADA. See the Apr. 9 Fast certification tests Facts for webinar details. before they go live CAPTRUST (on demand) April 2021 Market Update This webinar Apr. 19 Gatherings & outlines the impact of the vaccine, the recently passed Face Mask Order (in stimulus bill, and consumer savings, in addition to overviewing effect through May 24) the concept of inflation and its potential effect as the economy begins to reopen. CDC COVID-19 weekly data tracker 700Credit (on demand) Are you Ready for your Credit Reporting Compliance Audit?
See additional educational opportunities
ADM CAPITOL CORNER
Your legislative update from the Auto Dealers of Michigan, LLC.
Whitmer Visited Father For Two Days; GOP Cries 'Hypocrisy' Wentworth, Lasinski Agree To End 'Revolving Door;' Read Supermajority IE Here BSC Party Line Vote Rejects Unlock MI's Sigs 45% Recycling Goal By '32 Supported By Full House
WHEN REVIEWING YOUR VENDOR RELATIONSHIPS... please consider some of the many companies that support our association
Federated Insurance provides personal With nearly 100 years of experience, Ally is service, industry-specific coverages one of the largest providers of automotive customized for your business, and access to financing in the U.S. Our extensive outstanding risk management programs experience and deep understanding of the and services. federatedinsurance.com auto industry allow us to offer unrivaled expertise and support. ally.com
Michigan Automobile Dealers Association Have a topic suggestion for a future www.michiganada.org newsletter? Send us your ideas. Trouble viewing this message? View as Webpage
Cost to launch NADA in 1917: $102.71 NADA was born in 1917 when thirty dealers from state and local associations went to Washington and set up base at the Willard CELEBRATING 100 YEARS OF Hotel. By convincing Congress that cars SUPPORTING DEALERS LIKE YOU. weren’t luxuries as they had been classified, but were vital to the economy, the group prevented total factory conversion to wartime MADA Fast Facts work and succeeded in reducing a proposed April 30, 2021 • Vol. 23, No. 17 5% luxury tax to 3%. The NADA Story
NEWSLETTER SPONSOR EXTENSION of REAL ID ENFORCEMENT new deadline is May 3, 2023
With over 10,000 products available, The Department of Homeland Security Reynolds and Reynolds offers forms and (DHS) is extending the REAL ID full supplies for every department in your enforcement date by 19 months, from dealership, including standardized, October 1, 2021 to May 3, 2023. The legally-reviewed F&I compliance pandemic has significantly impacted documents. Reynolds also offers a states’ ability to issue REAL ID-compliant variety of products and services to meet driver’s licenses and identification cards, your marketing needs. reysource.com with many driver’s licensing agencies still operating at limited capacity.
Beginning May 3, 2023, every air traveler 18+ will need a REAL ID-compliant driver’s license or identification card, state-issued enhanced driver’s license, or another TSA- acceptable form of identification at airport security checkpoints for domestic air travel.
Many state licensing agencies have extended the deadline for renewing expiring licenses due to a widespread shift to appointment-only scheduling protocols during the pandemic. As a result, only 43 percent of all state-issued driver’s licenses and ID cards are currently REAL ID-compliant. Keep reading...
Gov. Unveils Plan to Get ‘MI Vacc to Normal’ Four vaccination-based milestones to get the state back to normal
Governor Gretchen Whitmer has announced a pathway to return to normal by unveiling the ‘MI Vacc to Normal’ plan as the state continues to push toward its goal of vaccinating 70% of Michiganders ages 16 years or older. To facilitate this goal, the Michigan Department of Health and Human Services (MDHHS) will base future epidemic order actions on four vaccination-based milestones that, once achieved, will enable Michigan to take a step toward normalcy. (Click image to view full-size infographic.)
On April 9, Michiganders were asked to double down on smart public health policies. Since then, Michigan has made significant progress to slow the spread of COVID-19 and save lives. The number of daily cases has dropped from 649.9 cases per million to 439.3 cases per million, the percent of positive tests has declined from 18.3% to 13.2%, and the number hospitalizations has fallen from 3,780 to 3,520.
View the press release here.
VACCINATION-BASED MILESTONES
STEP1: 55% of Michiganders (4,453,304 STEP 3: 65% of Michiganders (5,262,996 residents), plus two weeks residents), plus two weeks Allows in-person work for all sectors of Lifts all indoor % capacity limits, business. requiring only social distancing between parties. STEP 2: 60% of Michiganders (4,858,150 Further relaxes limits on residential residents), plus two weeks social gatherings. Increases indoor capacity at sports stadiums to 25%. STEP 4: 70% of Michiganders (5,667,842 Increases indoor capacity at residents), plus two weeks conference centers/banquet Lifts the Gatherings and Face Masks halls/funeral homes to 25%. Order such that MDHHS will no longer Increases capacity at exercise employ broad mitigation measures facilities and gyms to 50%. unless unanticipated circumstances Lifts the curfew on restaurants and arise, such as the spread of vaccine- bars. resistant variants.
Return-to-Office Workgroup Provides Recommendations
The first step of the 'MI Vacc to Normal' plan (see above) will bring more employees back into the office. The state's Return-to-Office Workgroup, comprised of business, labor and public health experts, has provided their recommendations for employers to begin a plan for a safe, phased reopening of offices. In addition to encouraging employers to be transparent and communicate frequently with employees on phased return-to-office plans, the workgroup's key recommendations for employers include:
RECOMMENDATIONS for EMPLOYERS
Reducing Office Density: Caregiving Resources for Employees: Focus on task-based collaboration Establish a return policy that provides and specific needs for in-person work employees with caregiving while allowing other tasks and obligations to continue remote work teamwork to be completed remotely regardless of the cohort group when feasible. returning, including caregiving of Consider utilizing hybrid work immuno-compromised persons. strategies to promote social Promote the use of family leave tax distancing. credits available for employers with 500 or fewer employees to provide Addressing Operational Obstacles: paid leave. Daily Health Screenings - stagger entry times to avoid congregation at Vaccines: screening checkpoints, consider Provide up-to-date information to using screening apps to provide prior employees on the vaccines. to entry. Provide links to vaccination sites/sign- Entry/exit through common up information. entrances and elevators - stagger Consider partnering where possible start and end times as practical to with local public health to offer on- avoid congregation. site vaccination. Add COVID-19 vaccination to Quarantine, Isolation and Testing existing wellness programs and Guidelines: benchmarks. Ensure policy clearly articulates the ability of employees to quarantine/isolate/test without risk of Please see the complete return-to- job loss. office recommendations here. Promote the use of sick leave tax Guidelines for MIOSHA and MDHHS credits available for employers with 500 or fewer employees to provide are also included in the full guide. paid leave.
Travel Points Testing at Michigan Welcome Centers and Airports
In an attempt to mitigate the spread of COVID-19, MDHHS, in partnership with MDOT and select Michigan airports, are piloting a Travel Points Testing program - bringing antigen COVID-19 testing to locations with high volumes of travel.
Quick and cost-free testing will be offered at several Michigan Welcome Centers and airports throughout the state, with results available in as little as 15 minutes. As of this week there are only a few locations, but additional sites are being added. Testing locations and more information about MDHHS's antigen pop-up testing is available online.
Blank Title Stock Stolen in 2011 May Still Show Up
Ten years ago in 2011, the Michigan Department of State (MDOS) identified that blank title stock was stolen from the Department resulting in a law enforcement investigation.
With the understanding that some scammers are in for the long-haul, MDOS is reminding dealers of the stolen items. Please view the example here and note the location of the document serial number highlighted, near the bottom right corner of the document for future reference. The stolen title stock contained the serial numbers listed below. Titles did not contain a bar code typically located in the bottom right corner or any vehicle information at the time of theft.
G69998261 through G69998360 G70528361 through G70530360
Any information related to the use or procurement of these titles can be sent to the Michigan Department of State, Office of Investigative Services at SOS- [email protected]. West Michigan - Wheel & Tire Thefts
We have been notified by the Kent County Combined Automotive Theft Team that a number of wheel and tire thefts have recently been reported in West Michigan. The thefts have targeted vehicles on dealership lots and other locations. Please be aware and take necessary precautions.
And in Other States...
An individual contacted a Missouri dealership to purchase a vehicle remotely and have it delivered to a Maryland address. Stolen identity, fraudulent documents...the normal stuff. However, in a new twist, the perpetrator also had a stolen/fraudulent notary public certification which they used to certify and notarize all documents before submitting them to the dealership.
It took one financial institution three weeks before they realized the identity they had approved was stolen. The vehicle was long gone by then and attempts to locate by law enforcement, via GPS, were unsuccessful.
New Guidance from MIOSHA: Vaccinated Employees and Vaccine Clinics
MIOSHA recently added new FAQs to its website, relating to employees and the COVID-19 vaccine...
Question: I have a vaccinated employee who had exposure to someone with suspected or confirmed COVID-19. Does this employee still need to quarantine?
Answer: CDC has updated their guidance on quarantine periods for fully vaccinated individuals in non-healthcare settings.
Fully vaccinated people with COVID-19 symptoms -- isolate from others, be clinically evaluated for COVID-19, and tested for SARS-CoV-2 if indicated. Fully vaccinated people with no COVID-like symptoms following an exposure -- do not need to quarantine or be tested following an exposure to someone with suspected or confirmed COVID-19. Fully vaccinated employees of non-healthcare congregate settings and other high-density workplaces (e.g., meat and poultry processing and manufacturing plants) with no COVID-like symptoms do not need to quarantine following an exposure; however testing following an exposure and through routine workplace screening programs (if present) is still recommended.
Persons who do not meet the above criteria should follow current CDC quarantine guidance after exposure to someone with suspected or confirmed COVID-19. (see FAQ online)
Question: If an employee voluntarily receives the COVID vaccine through my workplace vaccination clinic and has a reaction that involves medical treatment, is this recordable?
Answer: According to R 408.22110a(5) the employer is not required to record injuries and illnesses if... (c) The injury or illness results solely from voluntary participation in a wellness program or in a medical, fitness, or recreational activity such as blood donation, physical examination, flu shot, exercise class, racquetball, or baseball. (see FAQ online)
Information from Fisher Phillips on the topic of Voluntary vs. Required: OSHA states that if you require employees to obtain a COVID-19 vaccine, any side effects from the vaccine will create a recordable event and you have an obligation to include that information on your OSHA 300 log. If you only encourage the vaccine, you will not have that obligation. Keep reading...
NADA Partners with EPA in ENERGY STAR Program to Support Environmental Efficiency
As Earth Day is upon us, NADA is excited to highlight our partnership with the Environmental Protection Agency’s (EPA) ENERGY STAR program to promote energy efficiency practices. Before franchised car and truck dealerships can obtain ENERGY STAR certification, NADA must collect baseline comparative nationwide data on dealership energy use. NADA is calling on dealers to help by having an office or facilities manager complete the voluntary, 20-minute, anonymous survey on their dealership’s energy use.
Help with this important project by taking the survey today! Read more here. The deadline to complete the survey is Saturday, June 5, 2021.
REMINDER: Displaying Copyrighted Content on Your Business TVs Requires Licensing
The Motion Picture Licensing Corporation (MPLC) contacted many dealerships to remind dealers that content displayed on waiting room TVs, in employee break areas, or other common spaces may be copyrighted material. Showing the content in public areas is referred to as a "public performance" (as opposed to watching a movie in the privacy of your own home), and it requires proper licensing. Please see this dealer advisory from DADA and MADA for more information.
Member News
Armatus Dealer Uplift Obtains Certification by the Reynolds Certified Interface Program
"The new certified integration between Armatus and Reynolds will provide dealers with the peace of mind that their data is being handled in a secure and efficient manner,” stated Joe Jankowski, Managing Partner of Armatus Dealer Uplift, “This will enhance service to our customers by streamlining the retail warranty reimbursement process, and in turn, help them achieve substantially increased parts and labor profits.”
HEADLINES AROUND THE INTERNET news and information you may find interesting
American Families Plan Includes Proposal For Federal Paid Leave Program President Biden’s latest infrastructure proposal includes a plan that would establish the nation’s first permanent federal paid leave program. Unveiled on April 28, the proposed legislation would permit workers to receive paid leave for their own health problems, parental purposes, or to care for sick family members, feathering in benefits to eventually offer a full 12 weeks of leave by 2031. What do employers need to know about this groundbreaking proposal? Keep reading...
Also from Fisher Phillips Failure to Accommodate Virus-Related Illnesses Your Employees Are Vaccinated – Now What?
Fun Facts About Michigan The Death of the Death Tax is License Plate History not a Sign of Tax Reform...
The evolution of Michigan’s license A legislative bill is being acted on to plates through the decades captures eliminate Michigan's estate tax. many social and economic changes. Because of the tax's ties to the federal These changes affected the state and tax code and federal law changes the country starting way back in 1903. that phased out the allowable state Let’s take a look at Michigan license death tax credit, Michigan has not plate history... collected any revenue from...
Read more Read more www.awesomemitten.com crcmich.org
CALENDAR, REMINDERS & EDUCATIONAL OPPORTUNITIES
Individual SOS branch Fisher Phillips (May) various opportunities closings: see branch locator The Biden Administration’s First 100 Days: A Brand- "alerts" (2 active) New Employment Equation? Workers’ Comp in a Post Pandemic Workplace MIOSHA Citation Dashboard Workplace Privacy in a Post Pandemic Era What To Do When the DOL Comes Knocking CDC Guidance for Fully Vaccinated (summary of Apr. National Insurance Crime Bureau (podcast) Auto Thefts 27 changes) and Carjackings: The Pandemic Effect
Reynolds & Reynolds (whitepaper) What exactly does May 19 compliance “winning” in the dealership look like? The answer is trickier webinar hosted by MADA than you might assume, because whatever aspect of the and presented by NADA. business you focus on comes with inherent trade-offs. Fair credit & voluntary protection products - two MIOSHA (video tutorial) Completing recordkeeping forms. topics we expect to gain What types of operations come under the recordkeeping more attention during the rule, what types of injury and illness incidents must be Biden Administration. recorded, and what information is to be included? More info / registration See additional educational opportunities
WHEN REVIEWING YOUR VENDOR RELATIONSHIPS... please consider some of the many companies that support our association
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Michigan Automobile Dealers Association Have a topic suggestion for a future www.michiganada.org newsletter? Send us your ideas. Trouble viewing this message? View as Webpage
1947 Ford Repair Truck at the Ralph Ellsworth Dealership, Garden City. In 1915 the Automobile Club of Missouri offered the first CELEBRATING 100 YEARS OF emergency road service for its members. This SUPPORTING DEALERS LIKE YOU. idea caught on quickly, and it soon became a service offered by all AAA affiliates to its MADA Fast Facts members. Photo from The Henry Ford Collection. May 7, 2021 • Vol. 23, No. 18
NEWSLETTER SPONSOR MOTOR CITY CAR CRAWL All new event! Aug. 5-8, 2021
Count on our dealer finance experts for The Detroit Auto Dealers Association guidance over the long term. From floor (DADA) and the Downtown Detroit plan and cash flow management to Partnership (DDP) will be hosting an all- real estate and acquisition financing new event in downtown Detroit, Motor solutions, we help put your vision into City Car Crawl, a walkable, city-wide action. bmoharris.com charity event. The four-day, outdoor event will kick off at noon, Thursday, Aug. 5 and last through Sunday, Aug. 8.
Motor City Car Crawl will showcase new vehicles from metro Detroit area dealers throughout six downtown parks, including Beacon Park, Cadillac Square, Campus Martius, Capitol Park, Grand Circus Park and Spirit Plaza. In addition to seeing a wide assortment of vehicles, attendees can enjoy numerous downtown establishments, all within walking distance, as well as local food trucks, beverage stations and family entertainment in various locations throughout the city during the weekend.
On Saturday, Aug. 7, a ticketed charity event will take place featuring live entertainment and an array of food and beverage offerings. The event will raise money for eight Detroit children’s charities including, Boys & Girls Clubs of Southeastern Michigan, Boys Hope Girls Hope Detroit, Children's Center, The Children's Foundation, Detroit PAL, Judson Center, March of Dimes Metro Detroit and University of Michigan C.S. Mott Children’s Hospital.
Motor City Car Crawl vehicle displays and entertainment will be free throughout the weekend. Ticket prices and the list of featured entertainment for the Aug. 7 Motor City Car Crawl charity event will be announced soon. Press Release
Mask Requirements Lifted for Outdoor Gatherings Under 100 People
The Michigan Department of Health and Human Services (MDHHS) has updated its COVID-19 Gatherings and Face Masks epidemic order to encourage safer outdoor activities as spring and summer bring warmer weather and new opportunities to go outdoors. Under the new order, which continues through Monday, May 31, masks are generally not required outdoors unless a gathering has 100 or more people.
New guidance for organized sports no longer requires routine COVID-19 testing for fully vaccinated participants if they are asymptomatic. Masks continue to be required for contact sports but are no longer required outdoors during active practice and competition for non-contact sports. For example, softball and baseball players will be required to wear a mask in the dugout but not when at bat or playing first base.
Outdoor events with larger capacities are now permitted for entertainment and recreational facilities and for sports stadiums and arenas that hold events outdoors. Residential outdoor gatherings are allowed up to 50 people. Or, where density does not exceed 20 persons per 1,000 square feet of usable outdoor space, up to 300 people may be gathered.
Individuals attending large outdoor events must wear a face mask that covers both their nose and mouth. This requirement applies to all individuals regardless of their vaccination status. Face masks may be removed when eating or drinking in a designated area.
Press release May 6 Gatherings and Face Mask Order Choosing Safer Activities (to mask, or not to mask) Capacity Limits Fact Sheet Enhanced Outdoor Stadium and Arena Guidance
ATD Dealers: Input Needed on Administrative Burden of the FET
In response to a Congressional inquiry, ATD is documenting the administrative burden and costs placed on truck dealers when complying with the federal excise tax (FET). Please complete this brief survey to better inform Congress on the regulatory burdens of the FET on small business dealers and support FET repeal efforts. Your response is requested by May 10, 2021.
5 Steps to Improve Your Dealership’s Workplace Practices
Following is a portion of a new legal insight article from Fisher Phillips. The complete article can be viewed here.
Poor Sisyphus. This unlucky dude from Greek mythology must have really gotten sideways with the powers that be. As the story (myth) goes, the Greek gods sentenced Sisyphus to spend eternity pushing a huge boulder to the top of a steep incline only to have it roll back down each time to the starting point at the bottom. For all of eternity, ol’ Sisyphus will be doing that same thing, that same way, over and over again, hoping each time to achieve a different outcome. If he had some choice in the matter and continued to do the same thing, we would probably say that his actions fit the definition of insanity.
So what should you do if you feel like you’ve been rolling that same rock up that same hill for years now? Here are five action items you should consider to escape that mind- numbing fate.
1. Open Lines of Communication A good start in re-imagining your dealership as a modern-day workplace is to talk to the employees about their workplace experiences and ideas. The purpose of the exercise is not to illicit grievances and complaints but rather to learn how the workplace is viewed from a perspective different than that of management. In addition to revealing the obvious opinions about how they do not appreciate lapses in professionalism, employees may identify small things that they see as an indication of a mindset or world view that management may never have considered. For example, if the dealership plays music through the sales department, what kind of music is it? Is it music that appeals to a wide range of employees or customers who have different tastes or is it a genre that appeals and is linked to one group of people only? Management may have never thought about this issue but there’s a good chance the employees and customers have.
2. Take a Hard Look at Management Another suggestion is to look at the management staff – because your employees and customers sure do...keep reading
Biden Administration Puts Focus on Supporting Workers
The Biden Administration has come out strong in support of worker protections. It is always a good idea to occasionally review your business practices to maintain compliance with state and federal regulations. This year is no different. Following are a few issues that have been highlighted by the new administration.
Fisher Phillips: The First 100 Days The first 100 days of the Biden administration has revealed an extraordinarily ambitious plan to remake the nation’s workplace laws. This report reviews some of the most dramatic changes that have occurred since January 20, including passage of the American Rescue Plan and changes to joint employment, misclassification standards, labor law, immigration, and more. But the White House has also laid out a blueprint for further change that would completely reshape the employment equation, and we also forecast what we expect to happen in the future.
OSHA: Enforcing COVID Safety In March, OSHA launched a national emphasis program focusing enforcement efforts on companies that put the largest number of workers at serious risk of contracting the coronavirus. The program also prioritizes employers that retaliate against workers for complaints about unsafe or unhealthy conditions, or for exercising other rights protected by federal law.
US DOL: Overtime Enforcement A recent investigation by the U.S. Department of Labor’s Wage and Hour Division has recovered $3,852,968 in back wages for 1,100 employees after the division found a company had violated overtime requirements of the Fair Labor Standards Act.
Fisher Phillips: Employee Misclassification Wage and hour litigation remains one of the top types of litigation filed in federal courts. In 2020, in the midst of a pandemic, plaintiffs filed more than 5,000 Fair Labor Standards Act (FLSA) lawsuits. Because many of these cases are brought as collective actions on behalf of large groups of employees, fees can be higher than in single- plaintiff cases. Even a single plaintiff FLSA suit can cost six-figures. There is only limited insurance for these cases and many employers must foot the entire bill for the defense and any resulting verdict. Keep reading from Fisher Phillips...
While not worker related, an issue on the horizon is anti-competitive repair restrictions. A May 2021 report explores means of expanding consumers’ repair options and how the Commission could assist in that expansion, consistent with its statutory authority. In addition, the Commission notes that it stands ready to work with lawmakers, either at the state or federal level, to ensure that consumers have choices when they need to repair products that they purchase and own. See: FTC Report to Congress Examines Anti-Competitive Repair Restrictions, Recommends Ways to Expand Consumers’ Repair Options.
HEADLINES AROUND THE INTERNET news and information you may find interesting
NADA Market Beat: New Light Operating amid COVID-19: A Vehicle-Sales Top 18 Million ... CFO's checklist April's new light-vehicle sales saw an Things have changed since the start of 18.5 million-unit SAAR-the second the pandemic, and our operating straight month (following a March procedures need to reflect that. It’s revision) of sales above 18.0 million time for CFOs to move from short-term units and the highest monthly sales survival mode to long-term planning rate since July 2005 with a 20.6 million as we settle in for a long recovery... SAAR. The April 2021...
Read more Read more www.plantemoran.com blog.nada.org
CALENDAR, REMINDERS & EDUCATIONAL OPPORTUNITIES
Return-to-Office Workgroup NADA Electric Vehicle Webinar Series: recommendations (May 11) EV Charging Simplified - How to Compete with Tesla Vaccination-based (May 12) Electrify! Solar/EV Charging Infrastructure milestones for reopening Q'd Up Live with Kurt Berryman (May 13 at 9am) DADA Michigan's vaccine invites dealers to join Kurt Berryman as he talks with Rep. dashboard John Damoose about hot topics in Lansing, including legislation to remove rebates from being included in the FDA expected to authorize calculation for sales tax on automobile sales. Register the Pfizer vaccine for children 12-15 May 19 compliance webinar hosted by MADA and presented by NADA. Fair credit & voluntary protection NADA Requests Your Input! products - two topics we expect to gain more attention Dealership Energy Use during the Biden Administration. More info / registration Human Capital Management See additional educational opportunities
ADM CAPITOL CORNER
Your legislative update from the Auto Dealers of Michigan, LLC.
RGA Sends Bars Anti-Whitmer Coasters; More News Vaccination Passport Ban Pitched As Preemptive Legislation Read GOP Steps Up Push On Whitmer Florida Trip Details Here Statewide Vaccinations On A Four-Week Slide
WHEN REVIEWING YOUR VENDOR RELATIONSHIPS... please consider some of the many companies that support our association
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Michigan Automobile Dealers Association Have a topic suggestion for a future www.michiganada.org newsletter? Send us your ideas. Trouble viewing this message? View as Webpage
Krum's Livery and Feed Stables was founded in Schoolcraft in 1888 by William Krum and son, Allen. The family signed an agreement with Chevrolet in 1917 and began servicing the CELEBRATING 100 YEARS OF auto needs of southwest Michigan. (William's SUPPORTING DEALERS LIKE YOU. grandson, Ken, would become MADA president in 1972.) While the dealership was sold in 2007, it was renamed Cole-Krum Chevrolet, preserving the now 133 year Krum MADA Fast Facts family history. It was the second oldest May 14, 2021 • Vol. 23, No. 19 continuous agency for Chevrolet at that time.
NEWSLETTER SPONSOR 55% of ELIGIBLE MICHIGANDERS VACCINATED in-person work set to resume May 24
700Credit is the largest provider of credit Governor Whitmer has announced that reports, compliance solutions and soft 55% of Michiganders have received pull products to automotive dealers. Our their first dose of the COVID-19 vaccine. product and service offerings include The announcement marks the first credit reports, prescreen and pre- milestone of the ‘MI Vacc to Normal’ qualification platforms, adverse action plan, which would enable in-person and risk-based pricing notices, Red Flag, work to resume across all employment OFAC search, MLA, Synthetic Fraud sectors on May 24. Detection, Identity Verification, score disclosure notices, and more. We invite On May 10th, Michigan achieved the you to take our website for a spin to first vaccine-based goal; we are now in learn more! 700credit.com the "plus two weeks" stage.
Step 1) 55% of Michiganders vaccinated (May 10) +2 weeks = May 24 Allows in-person work for all sectors of business.
The State's Return-to-Office Workgroup has developed these recommendations so employers can begin to plan for a safe, phased reopening of offices.
The next phase of the plan increases the limits at certain indoor gathering spaces.
Step 2) 60% of Michiganders, +2 weeks Increases indoor capacity at sports stadiums to 25%. Increases indoor capacity at conference centers/banquet halls/funeral homes to 25%. Increases capacity at exercise facilities and gyms to 50%. Lifts the curfew on restaurants and bars.
You can read more about the MI Vacc to Normal Plan and the additional steps here.
Also in Michigan news... MDHHS Alerts Vaccine Providers about Recommendations on Pfizer Vaccine for Michiganders Ages 12 to 15
Face masks and fully vaccinated individuals Effective May 15, MDHHS lifts mask requirement for fully vaccinated
On Thursday, the CDC announced relaxed masking guidelines for fully vaccinated individuals. After reviewing the new CDC information, the Michigan Department of Health and Human Services has adopted the guidance.
The new order will take effect on Saturday, May 15 at 9:00 am.
Under the updated MDHHS Gatherings and Mask Order, Michiganders who are outdoors will no longer need to wear a mask regardless of vaccination status. While indoors, fully vaccinated Michiganders will no longer need to wear a mask, but residents who are not vaccinated, or have not completed their vaccinations, must continue to wear a mask or face covering to protect themselves and others. After July 1, the broad indoor mask mandate will expire.
Note: a person is considered "fully vaccinated" after two weeks have passed since receiving the final dose of the COVID-19 vaccine.
View the press release here. The new epidemic order has not been posted online as of Friday at 2:15 pm, but it will soon be available here.
Follow up question we are already hearing.... Do employees or customers need to provide "proof" of their vaccination status before entering our business without a mask?
We are communicating with our government contacts and attorneys to get clarification and additional guidance on this complicated issue. While this new order pertains to masks, it affects many other issues and how businesses handle them. Once we have further guidance we will provide that information to dealers. Look for a DADA/MADA advisory next week.
If dealers would prefer to wait for formal guidance on the issue of masking up in the workplace, you may continue as you are currently doing.
Parts Department Credit Card Scam
Scammers and criminals are keeping dealerships on their toes lately. It's not just fraudulent documents, smashed windows and stolen keys, or catalytic converters taken in the middle of the night - criminals are taking advantage of "no signature" purchases.
A Michigan dealer was hit twice this month. A person called the parts department, placed an order for some parts, paid over the phone with a credit card and drove to the dealership to pick up the parts. Since the order was paid over the phone, there was no physical credit card signature. That lack of signature for payment made it very difficult to argue the chargeback when the dealership was later notified it was a fraudulent credit card charge.
In our new world of remote and electronic purchases, it can be difficult to spot the fraud...and criminals know this. It has become necessary to be a little overly cautious. If the customer has never done business with you before or the purchase seems unusual or expensive, remind the person that you will need to validate their ID and credit card when they pick up the order. (This is good policy, in general.) Unfortunately there is no way to detect all fraud, but adding an extra validation step will hopefully avoid some of these situations.
In other news... Vehicles are still being stolen from dealership lots - and sometimes significantly damaged in subsequent break-ins. Grand Rapids has made the news again, but we have heard from dealers in other parts of the state with similar stories.
May 11 article -- Police in metro Grand Rapids responded to break-ins at a cellphone shop and auto dealership overnight. Ottawa County authorities pulled over the suspects around 6 a.m. It’s not yet clear whether a third break-in overnight at a marijuana dispensary in Kentwood was related to the earlier incidents.
We have previously provided this document with tips from the police, but it is a helpful reminder if needed. (If your dealership is looking into increased lot security please see additional information at the bottom of this newsletter.)
News from NADA: DOL Withdraws Independent Contractor Rule
The Department of Labor has withdrawn its January 7, 2021, independent contractor rule, effective immediately. That rule set out a simple test that stressed two key factors for employers to use when determining whether to classify workers as “employees” or “independent contractors” for purposes of Fair Labor Standards Act (FLSA) compliance. The FLSA governs when employees must be paid minimum wage and overtime, among other things. Dealerships historically see worker classification issues with respect to dealer exchange drivers, detailers and other workers providing services to dealerships.
After reviewing prior case law and guidance on worker classification, the DOL is stating that businesses, including dealerships, should apply the old “economic reality” test when classifying workers. The test typically involves six factors. The first two relate to whether workers are economically dependent on another’s business or are in business for themselves: The nature and degree of control over the work The worker’s opportunity for profit or loss based on initiative and/or investment
Four other factors typically are considered, particularly when the two factors above do not point to the same classification: The amount of skill required for the work The degree of permanence of the working relationship between the worker and the dealership The amount of the worker’s investment in facilities and equipment The extent to which the worker’s services are an integral part of the dealership’s business
As always, actual worker and dealership practices are more relevant than what may be contractually or theoretically possible. Dealerships are urged to contact labor counsel when worker classification issues arise. Important: state wage and hour laws may treat this issue differently. Questions on DOL’s withdrawal of the independent contractor rule can be directed to [email protected]. Michigan specific note: Michigan long-ago identified exchange drivers as employees so dealerships should already have the proper relationship in place.
Grants for 88 Electric Vehicle Recent grants: Charging Sites -- Sunrise Stores (Fort Gratiot, Smiths Creek, Capac & Kimball): 8 charging outlets Thirty-two locations -- Traverse City Light & Power, 15 across Michigan have -- Red E Charging (Detroit, Waterford & been approved as part Wixom): 6 of the Michigan -- EV Build (Rogers City / Mackinaw City): 6 Department of -- City of Ann Arbor: 4 Environment, Great -- Dean Arbour Ford (West Branch): 2 Lakes, and Energy’s -- Diatomic Energy (Belle Isle State Park): 2 (EGLE) ‘Charge Up’ -- Great Lakes Energy (Scottville): 4 grants. -- Summit Place Properties (Waterford): 4 -- TNT Equipment (Sandusky): 4 The Charge Up Michigan Program is an EV -- Sunrise LLC (Houghton Lake): 2 Charger Placement project that aims to -- Hawks Petroleum (Howard City): 2 build infrastructure to ensure feasibility of -- Ford & Haggerty, Inc. (Canton): 2 long distance trips for EV users. EGLE and -- Lee Road, Inc. (Brighton): 2 partners (electric utilities and applicant) will -- McNichols & Wyoming (Detroit): 2 provide funding for qualified charging -- Royal Gas and Oil (Farmington): 2 equipment, site preparation, equipment -- Speedy Q Market (Port Huron): 2 installation, networking fees and signage. -- Sunny's Food Mart (Pleasant Ridge): 2 -- Wakeland Oil (Brighton): 2 The grants are funded through Michigan’s -- Washtenaw Food & Gas (Ann Arbor): 2 allocation from the Volkswagen diesel -- Zourob Enterprises (Romulus): 2 settlement. The goal is to complete the -- J. McCormick LLC (Whitehall): 2 statewide charging network by 2030. Funding is still available, and applications are Amended grants: encouraged from sites throughout the UP, as -- Blarney Castle Oil (Manistee / Petoskey): 4 well as the NW, SW and SE Lower Peninsula. -- Meijer (Ann Arbor): 2 -- Hage Automotive (Jackson Airport): 3
May 19th -- MADA member webinar: Fair Credit Compliance and Voluntary Protection Product Rules
MADA dealers and dealership staff are invited to join us for a virtual meeting with Paul Metrey from NADA. Mr. Metrey is the vice president of Regulatory Affairs and chief regulatory counsel, financial services, privacy and tax for NADA. He represents dealer interests before, and educates dealers on regulations promulgated by, federal executive branch agencies that oversee dealer operations.
NADA Presentation from 10:30-11:30am, with time for Q&A (register here) Mr. Metrey will cover two issues that are becoming increasingly important for dealers and staff to understand -- fair credit compliance and voluntary protection product rules. NADA has worked with other dealer advocacy groups to develop policy guides that dealers can adopt to maintain compliance. He will review these guides and help dealers understand their federal responsibilities. (Note: this webinar follows the MADA board meeting.) Fair credit compliance. Voluntary protection products. Consumer advocacy groups have long Many consumer advocacy groups argued that the portion of the APR that have also advanced a series of dealers earn for originating a credit concerns about voluntary protection contract - known as dealer products and called on the participation or dealer reserve - is government to enact new measures to charged by dealers in an arbitrary and address them. It’s important to inconsistent manner that can lead to understand the threat to voluntary unlawful credit discrimination against protection products. consumers. The Department of Justice has stated that exercising pricing The optional Model Dealership discretion presents this risk, but that Voluntary Protections Products Policy there are also ways to manage it. addresses each major area of concern by offering dealerships a series of The optional Fair Credit Compliance principles and actions it can adopt to Policy & Program adopts and builds on strengthen its selection, offering, the DOJ approach to both ensure presentation, and sale of VPPs. consumers are offered fair access to Coupled with any additional credit and protect dealers against requirements at the state or local level, pricing discrimination claims. It is this can foster a better customer essential that dealers understand this experience while helping to protect the threat and have an effective way to dealership. address it.
COBRA Subsidy and Tax Credit Dealers who participate with ADA COBRA Services will receive more info. via email
President Biden signed the American Rescue Plan Act of 2021 (the “ARPA”) into law on March 11, 2021. ARPA provides for COBRA premium assistance to help assistance eligible individuals continue health benefits, provided they meet eligibility requirements.
If an individual becomes assistance eligible, the individual will not be required to pay COBRA premiums, for up to 6 months beginning the later of 04/01/21 or their Loss of Coverage date and ending no later than September 30, 2021. Instead, the amounts will be paid by the employer. An employer or plan who takes advantage of the premium assistance by making these payments, may take a tax credit for the amount of premium assistance paid by the employer. It is expected that this credit will be claimed on Form 941 and employers will be able to file Form 7200 to claim an advance on the subsidy. (The IRS has yet to release revised forms and instructions related to this credit.)
Dealers who participate with ADA COBRA Services will receive more information via email and a list of their COBRA eligible employees. Please see the following links for more discussion on this subject:
U.S. Department of Labor: COBRA Premium Subsidy and The American Rescue Plan Fisher Phillips legal insight: DOL Issues Guidance to Help Employers Understand Obligations Regarding COBRA Premium Assistance Provisions in the American Rescue Plan Act UHY news alert: COBRA Premium Assistance & Tax Credit
HEADLINES AROUND THE INTERNET news and information you may find interesting
Changes to premium tax credit could increase penalty... Where you can get your 12- to 15-year-old a COVID-19... The premium tax credit (PTC) is a refundable credit that helps individuals Now that kids ages 12-15 can get the and families pay for insurance Pfizer-BioNTech COVID-19 vaccine, obtained from a Health Insurance here's where you can go to get them Marketplace (commonly known as an immunized in Michigan. Keep in mind "Exchange"). A provision of the that the Pfizer-BioNTech vaccine is the Affordable Care Act (ACA) created only type authorized so far for use in the... people younger than 18...
Read more Read more www.fmdcpas.com www.freep.com
CALENDAR, REMINDERS & EDUCATIONAL OPPORTUNITIES
Michigan's FAQ About 700Credit (May 18 or 19) Soft Credit Pull and Coronavirus (rev. May 10) Prequalification
MDHHS Epidemic Orders CAPTRUST (May 19) Investment Mistakes and How to Avoid Them Michigan's vaccine dashboard NADA (May 25) Tools for the EV Future
NADA Requests Your Input! Dealers Resources Inc. (Jun. 8-11) Financial Services Dealership Energy Use Management Training Customer psychology (the buying Human Capital process), product knowledge, processes & presentations. Management See additional educational opportunities
ADM CAPITOL CORNER
Your legislative update from the Auto Dealers of Michigan, LLC.
Whitmer 48%, Craig 42%; Gov Up 10 Points On John James U of M Prof: Governor Eased Restrictions 6 Weeks Too Early Read Republicans Make Push On Vaccine Passport Ban Here Enbridge Now Dubbed A 'Rogue' Company For Dismissing Gov College Professor Announces Candidacy For SOS In 2022 WHEN REVIEWING YOUR VENDOR RELATIONSHIPS... please consider some of the many companies that support our association
ChaseLight™: Secure Your Lot with Lighting Automation
Risk of damage and theft at automotive dealerships increases after hours. ChaseLight™ by Trydon blends lighting and security into a single, integrated component that works with both new and existing outdoor lighting installations.
Our intelligent system monitors the area beneath each pole and any undesired movement triggers an audible alarm and flashing light, deterring vandalism and preventing theft. ChaseLight understands the difference between the habits of window shoppers and the behavior of vandals. BrowseHours™ allows customers to enjoy the after hours walk through, with custom settings for your preferred amount of ambient light and select hours of operation.
This unparalleled level of inventory protection saves dealers significant repair and replacement costs. In addition, ChaseLight can reduce insurance premiums and self insurance exposure while lowering energy consumption, resulting in reduced operating costs.
Secure your lot today. Contact Trydon at 314-956-7848 or [email protected] for a free estimate and cost savings analysis. trydontrue.com
Michigan Automobile Dealers Association Have a topic suggestion for a future www.michiganada.org newsletter? Send us your ideas. Trouble viewing this message? View as Webpage
CELEBRATING 100 YEARS OF Switchboard Operator at George Holzbaugh Ford, SUPPORTING DEALERS LIKE YOU. West Grand Blvd and Fort, Detroit, 1936. This past year, some of us were answering the office phone from our living room. Quite an advancement from MADA Fast Facts the extensive switchboard systems required in the May 21, 2021 • Vol. 23, No. 20 past to take customer calls! Photo from The Henry Ford Collection.
NEWSLETTER SPONSOR THE LEGAL ADVICE: MASK UP, VACCINATED EMPLOYEES! (at least for now) new MIOSHA guidance on Monday
With nearly 100 years of experience, Ally We understand it is unlikely MIOSHA is is one of the largest providers of currently focused on responding to automotive financing in the U.S. Our complaints or conducting investigations extensive experience and deep about unmasked employees who may understanding of the auto industry allow or may not be vaccinated -- MIOSHA us to offer unrivaled expertise and has said as much. However, from a legal support. ally.com perspective, the "mask up" rules for all employees are still in place.
During a Thursday press conference, the governor announced that "on Monday, we will have a lot more detail to share on the MIOSHA rules for COVID-19 workplace safety." However, as of Friday at 1:00pm, MIOSHA's official message is the same:
"MIOSHA will soon post updated workplace rules reflecting the CDC's recent guidance on face masks for fully vaccinated people. Until then, MIOSHA will consider compliance with the MDHHS order as good faith to comply when responding to employee complaints or conducting investigations related to COVID-19."
A brief legal perspective: MIOSHA’s rules do not yet distinguish between vaccinated and unvaccinated employees, which means the same rules still apply for both sets of employees. Since MIOSHA regulations and rules control workplace safety matters, Michigan employers are still required to implement social distancing and daily screenings of “fully vaccinated” employees pursuant to MIOSHA Rules 6(1) & 7(3). (Read more in Fisher Phillips' legal alert: Michigan Employers Must Still Comply With COVID-19 Requirements – Including Masking.)
Until MIOSHA announces revised rules or formally clarifies its "muddy" position on the topic, Michigan dealers are encouraged to follow the workplace safety rules, including face masks for all employees in shared spaces and when employees cannot consistently maintain 6 feet of separation.
In-person Work Resumes May 24? Due to the current MIOSHA rules, which are in conflict with Step 1 of the Vacc to Normal plan, there is also some confusion about all sectors of business returning to in- person work. During the press conference the governor did comment that in-person work would resume on May 24, 2021 after meeting the first goal for Michigan to reach a 55% vaccination rate. We anxiously await Monday's update from MIOSHA.
Gov. Accelerates 'MI Vacc to Normal' Plan to Move Michigan Forward Towards Normalcy
On Thursday, Governor Gretchen Whitmer announced an updated ‘Vacc to Normal’ plan, which outlines steps Michiganders can take to emerge from this pandemic.
As of June 1st, capacity limits will lift for outdoor events. Additionally, indoor capacity limits will increase to 50%, allowing indoor social gatherings such as weddings and funerals to move closer to normalcy.
As of July 1st, the state will no longer limit capacity at indoor or outdoor gatherings.
To reflect these changes, the Michigan Department of Health and Human Services (MDHHS), will release an updated epidemic order on Monday. Throughout the month of June, people who are not yet fully vaccinated will still be required to mask up while indoors.
Read the press release Fox 2 Detroit video from press conference
Nominate a Deserving Dealer
Please help us recognize MADA dealers who exemplify what it means to be upstanding community members. Review the dealer nomination form and nominate a dealer you believe deserves to be recognized for one of the following awards:
Northwood Dealer Education Award TIME Dealer of the Year Award Recipients of this award have made In addition to exhibiting exceptional noteworthy contributions to education, performance in their dealerships, nominees inside or outside of the industry. They are perform heroic community service and are recognized for substantial dedication to the strong advocates for improving the world educational process and the field of around them. automotive marketing.
Managing Pricing Discretion in Credit Transactions: A Path Forward
One of the most attractive benefits to consumers in any industry is the ability to purchase products and services at a discounted price. Discounting saves customers money, allows companies to earn their business and disciplines the prices competitors offer for the same items. In a normally functioning market, it is a win-win for both consumers and businesses.
At the same time, discounting involves pricing discretion, and pricing discretion that is not carefully exercised by a business can give rise to concerns about arbitrary pricing and, worse, pricing that discriminates against protected groups of consumers. It is this concern that has driven the efforts of many consumer advocates and government officials over the years to eliminate dealer pricing discretion. In the context of dealer financing, this would be attempted by eliminating the dealer participation that dealers earn for originating credit contracts and replacing it with a non-discountable, flat fee.
Many finance sources that are assigned credit contracts compensate dealers with non-discountable flat fees, and the National Automobile Dealers Association takes no position on the form of compensation freely entered into by dealers and their finance sources. Nevertheless, NADA has resisted - and will continue to resist - efforts by the government to prohibit finance sources from being able to compensate dealers with discountable dealer participation for originating credit contracts with their customers. The pro-competitive benefits that dealer participation provides to consumers should not be eliminated by unwarranted and untested government intrusion into the marketplace.
Notwithstanding the flaws of such a mandate, concerns about “unfettered” pricing discretion that have been expressed by the acting chair of the Federal Trade Commission (FTC) and others should not be ignored, and dealers should consider ways to address those concerns while striving to provide their customers with affordable and competitively priced products... keep reading
What Additional Steps Can Dealers Take to Maintain Compliance?
NADA recently developed a custom training video created to assist dealers in adopting fair credit and voluntary protection products programs and training. The video will complement the NADA guides and templates already available. These NADA materials may require your NADA website passcodes.
FAIR CREDIT COMPLIANCE Consumer advocacy groups have long argued that the portion of the APR that dealers earn for originating a credit contract – known as dealer participation – is charged by dealers arbitrarily and inconsistently which can lead to unlawful credit discrimination against consumers. The Department of Justice has stated that exercising pricing discretion presents this risk but that there are also ways to manage it.
Website: www.nada.org/faircredit Includes downloadable guides and an editable compliance program. Webinar: Promoting Fair Credit Compliance For those who joined us for the MADA hosted webinar on May 19, this is a similar presentation.
VOLUNTARY PROTECTION PRODUCTS COMPLIANCE Many consumer advocacy groups have advanced a series of concerns about voluntary protection products and called on the government to enact new measures to address them. It’s important to understand the threat to voluntary protection products.
Website: www.nada.org/voluntaryprotectionproducts Includes a downloadable guide and an editable policy template. Webinar: Promoting Voluntary Protection Products Compliance Provides additional detail on this topic. The American Rescue Plan Act (ARPA) provides for 100% premium assistance to certain qualified beneficiaries for continuation coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) for periods of coverage beginning on Fisher Phillips Legal or after April 1, 2021 and ending September 30, 2021. Alert, May 20 Employers have been grappling with a number of items left unanswered by lawmakers and subsequent IRS Addresses DOL guidance, including: Lingering Employer whether premium subsidies apply to dental and Questions vision plans, Regarding COBRA whether employers can claim tax credits for COBRA payments included in pre-existing Premium Assistance severance agreements, and Corresponding whether premium assistance will continue to Tax Credits under apply to a spouse’s or dependent’s coverage during extended COBRA coverage due to a the American second qualifying event like the death of the Rescue Plan Act former employee, and what constitutes an involuntary termination of employment that would make someone an assistance eligible individual (AEI).
IRS recently released Notice 2021-31 to help answer many of these lingering questions. What do employers need to know about this May 18 Notice?
What Coverage Qualifies for Premium Assistance?
Most observers had inferred from prior guidance that ARPA’s COBRA premium subsidy provisions applied to dental and vision plans as well as group medical plans. IRS has confirmed that COBRA premium assistance is available for COBRA continuation coverage of any group health plan (except a health flexible spending account (FSA) under an Internal Revenue Code (IRC) § 125 cafeteria plan) including vision-only and dental-only plans regardless of whether the employer pays for a portion of the premiums for active employees. COBRA premium assistance is not available for continuation coverage offered by employers for non-health benefits that are not subject to federal COBRA continuation coverage requirements, such as group-term life insurance.
The Notice also explains that certain other coverage is eligible for premium assistance. Specifically, retiree coverage, if offered under the same group health plan as the coverage made available to similarly situated active employees, can be eligible even if the amount charged for the retiree coverage may be higher than that charged to active employees... keep reading
Unsolicited Invoice Scams
If it's not one scam, it's another! MADA has been notified that autoMOBILE Marketing, Inc. (with a Florida address) has sent invoices to dealerships for digital marketing services that were never requested. We are passing this along as a friendly reminder that unsolicited invoices are still an ongoing issue. Please be aware and verify invoices prior to payment.
If you have other information or alerts to share with Michigan dealers please email [email protected]. HEADLINES AROUND THE INTERNET news and information you may find interesting
A Simple Tool for Giving Biden Pitches $174 Bln Electric Mental Health First Aid Vehicle Plan in Michigan
If you witnessed someone getting "We're going to set a new pace for seriously injured or having a heart electric vehicles," Biden said. The attack, you'd likely have a general President spoke to Ford workers and knowledge of what to do. You'd assess executives in front of a display and the person's state of being, offer the map touting the company's "EV- help and comfort you could and call certified dealer network" consisting of for emergency responders to... 2,300+ EV-certified dealers...
Read more Read more www.ahealthiermichigan.org blog.nada.org
CALENDAR, REMINDERS & EDUCATIONAL OPPORTUNITIES
MDHHS Epidemic Orders, NADA (May 25) Tools for the EV Future dated May 15 BCBS (May) Learn to prioritize your basic self-care such as Rapid Public Health Alert: nutrition, exercise, mindfulness, water intake, and sleep. Face Mask May 25 - Basic Self-Care for Leaders Recommendations May 26 - Basic Self-Care for Everyone
Michigan's vaccine Armatus (on demand) Statutory vs factory submissions for dashboard currently 57.1% a dealer’s annual warranty labor rate increase. Info you can use when evaluating factory protocol vs. statutory MSP Click It or Ticket protocol and which is most advantageous. Campaign, May 17-June 6 See additional educational opportunities
ADM CAPITOL CORNER
Your legislative update from the Auto Dealers of Michigan, LLC.
Former SOS: Months-Long Branch Wait Times 'Unacceptable' Governor, Legislative Leaders Reach Agreement Read Gov Condenses Vacc To Normal Plan To 2 Steps; No Longer Here Tied To Vax Rates Mackinac Conference: No Shots. No Go.
WHEN REVIEWING YOUR VENDOR RELATIONSHIPS... please consider some of the many companies that support our association
ADESA Flint provides over 2,000 vehicles running weekly in lane and on AmeriLabs24 offers pre-employment, LiveBlock. Featuring GM (closed/open random, post accident & DOT drug testing. sales), Budget Truck Rental, Chrysler Also offer on-site drug testing, Hazmat, Twic Capital, credit acceptance/VRS, & TSA pre-check interviews, background Enterprise, Fleet Lease Disposal, GM fingerprinting with Identogo. Collection site Financial, GTB, PAR North America, U.S. for blood work with Quest and Labcorp. Bank, U-Haul. Over 250 vehicles online on https://amerilabs24.com DealerBlock.
Michigan Automobile Dealers Association Have a topic suggestion for a future www.michiganada.org newsletter? Send us your ideas. Trouble viewing this message? View as Webpage
Wilt Chamberlain at Story Oldsmobile in CELEBRATING 100 YEARS OF Lansing, 1958. Michigan has its fair share of SUPPORTING DEALERS LIKE YOU. celebrities who visit or are involved with dealerships. But it's not often you see a 7' 1", MADA Fast Facts 250lb basketball phenom, fresh out of college, May 28, 2021 • Vol. 23, No. 21 towering over an Oldsmobile.
NEWSLETTER SPONSOR VEHICLES IMPORTED from ANOTHER COUNTRY additional info required when presented for title at SOS Providing a full range of commercial banking services for dealerships. The Michigan Department of State bankofamerica.com (MDOS) emailed the following information to dealerships on May 27th.
Beginning June 1, 2021, vehicles imported from another country and presented for title at SOS branches will be required to present additional importation documentation.
The National Highway Traffic Safety Administration (NHTSA) HS-7 Declaration Form must be submitted. For vehicles being imported under Box 3 of the HS-7, the following must also be submitted:
the Bond Release Letter from the U.S. Department of Transportation, the stamped U.S. Customs form 7501 Entry Summary, and proof of ownership.
If 30 days has passed since the conformity packet was sent to NHTSA and a Bond Release Letter has not yet been received, the Importer must present the Statement of Conformity for the Vehicle.
If you have any questions, please contact MADA at [email protected] or contact the MDOS Business Compliance and Regulation Division at [email protected].
Kurt Berryman Takes the Top Honor
Congratulations, Kurt! After the votes were tallied in the latest MIRS/EPIC-MRA Insider Survey, our own Kurt Berryman has made the top spot (yet again) as the most effective individual lobbyist. He has taken most effective lobbyist in the biannual survey in 2019, 2017, 2015, 2013 and tied for the honor back in 2011. This year, he secured 9% of the vote.
Reached for comment by MIRS, the never shy Berryman offered up "I would like to thank Zoom, sweat pants, Door Dash and, of course, my wife -- because that is smart lobbying.”
In the category of which membership association is considered "most effective" at lobbying, Auto Dealers of Michigan took the #4 spot with 5% of the vote. (Topped only by the Michigan Chamber, Michigan Beer and Wine Wholesalers and the Michigan Health and Hospital Association.)
Kurt has done an excellent job leading our legislative efforts and promoting the franchised car and truck industry in Michigan. If you have a moment, please reach out and offer your congratulations.
Emergency Rules Webinar
For those looking for more information on the new workplace safety rules, Michigan COVID-19 Workplace Safety Director Sean Egan hosted a webinar with Q&A this week to discuss the updated rules.
MIOSHA webinar links: On-demand webinar recording Presentation slides
The Q&A portion of the webinar begins around 18:00 of the recording. Some of the questions include:
Can we collect and file a copy of an employee vaccine card? (this legal alert from Fisher Phillips is a good follow-up to this question) How do we verify a customer has been vaccinated - is it just the honor system? What screening questions should we ask fully vaccinated persons? If Michigan is fully open with no COVID restrictions starting July 1, will MIOSHA also remove all emergency orders? Are sites still required to have a COVID safety coordinator on-site at all times when work is being done - or just on-call?
FINANCE RENEWALS ARE COMING DUE
If you have already submitted your volume of activity report and installment sellers license renewal this spring, please disregard this message. If you still need to submit the paperwork, please remember the deadline is June 30, 2021 (but we suggest getting it in sooner).
REMINDER: The Michigan Department of Insurance and Financial Services (DIFS) emailed installment seller renewal information to dealerships around April 1, 2021.
We are finding that some email recipients printed the attachments to save and complete at a later date. As the paperwork gets picked back up for completion (possibly weeks later), some are realizing they are missing information required to submit the payment and paperwork.
The original email from DIFS includes unique codes for each license, which are needed to pay the renewal fee through ePayments. The codes are in the body of the email - not the attachments included with the email.
The quickest way to get the information is to look in your past emails to find a message from [email protected] that was received on or around April 1. (See sample image.)
If the email cannot be located, it will be necessary to email DIFS and request a copy of the renewal packet (this may take a few days turn-around). To do this, email DIFS- [email protected] stating you are requesting that the renewal packet be resent, and make sure to note your licensee name and license #.
Questions? Email [email protected]
Associate Member News: Advertising Opportunity
Celebrating our 100th Anniversary -- in Print!
2021 marks a major milestone for MADA: 100 years of supporting dealers! In addition to the regular member contact information, this year’s membership directory will highlight the history of MADA, our dealers and the automotive industry. Showcase your company to an influential group of industry professionals with an advertisement in this special edition! Please see our advertising rates and specs sheet for more information.
State Revenues are Booming, Now Comes the Hard Part
In a Nutshell:
State revenue projections are up by $3.5 billion for FY2021 and FY2022 after last Friday’s Consensus Revenue Estimating Conference The large upward revision is largely the product of unprecedented federal stimulus propping up consumer spending even in the wake of employment declines Even with the added revenue and last week’s deal on a framework for budget negotiations, there will be many issues to resolve before the July 1 statutory deadline for completing the state budget
Michigan’s budget picture just got a lot rosier after state economists met for last Friday’s Consensus Revenue Estimating Conference. General Fund and School Aid Fund revenue projections rose by a combined $3.5 billion for FY2021 and FY2022; a seven percent increase over the estimates from just four months ago. That is a huge influx of money available to support legislative and administration budget priorities as the two branches begin negotiations to meet a self-imposed July 1 statutory deadline for wrapping up the FY2022 state budget. The forecasts were also extremely good for FY2023, with combined revenues expected to increase by $1.8 billion for next year’s budget process.
Federal Stimulus Drives Revenue Growth Forecasters point to the impact of unprecedented federal stimulus provisions as the key driver behind strong consumer spending that is expected to fuel the significant revenue growth. Last Friday’s conference was notably the first to factor in the impact of March’s federal $1.9 trillion American Rescue Plan Act (ARPA), which, among other things, provided for $1,400 stimulus checks; the exclusion of of most unemployment benefits from 2020 income taxes; and temporary expansions to the the Child Tax Credit and Earned Income Tax Credit for 2021. APRA, of course, builds on the stimulus checks and enhanced unemployment benefits approved in prior rounds of federal stimulus in 2020.
For perspective, Michigan shed 409,000 jobs during the pandemic’s peak in 2020 – a decrease of over 9 percent from 2019. Last Friday’s economic forecast suggests Michigan will recover only 35 percent of those lost jobs for 2021, resulting in a 2.7 percent decline in inflation-adjusted wage compensation from 2019 to 2021. Yet, federal transfer payments – led by enhanced unemployment benefits scheduled to continue until Labor Day – are expected to help increase inflation-adjusted personal income by 3.9 percent across the same two years...keep reading
The Citizens Research Council of Michigan is a privately funded, not-for-profit public affairs research organization that was founded in 1916. Donations are welcome in any amount. As a not-for-profit organization, their products are available for all to consume. If you benefit from any or all of the work, please contribute to allow them to continue providing high-quality, impactful, public policy analysis.
Question: I work for a dealership and we have a vehicle with a lost title, how do we replace it?
Answer: If a Michigan dealer loses an assigned Michigan title for a vehicle, the dealer's best option is to contact the previous owner for a replacement title. If unable to do so, the dealer follows one of the two options shown below to apply for a resale title in the dealer's name:
1) If the vehicle is less than ten years old or worth more than $2,500 , the dealer must either contact the previous owner for a replacement title, obtain a surety bond or court order for proof of ownership. (P.S. need a lost title bond? MADA can help.)
The dealer submits an RD-108 resale title application, a TR-121 Surety Bond or court order naming the dealer as owner, a TR-205 Ownership Certification, and a BDVR-108 Odometer Mileage Statement (unless the vehicle is exempt).
2) If the vehicle is ten or more years old, was previously titled in Michigan, and worth less than $2,500 the dealer may use the self-certification of ownership procedure only if the dealer is unable to contact the previous owner for a replacement Michigan title.
If a dealer loses an assigned out-of-state title or an assigned Michigan title for a vehicle that does not qualify for self-certification, the dealer must obtain either a replacement title from the previous owner or a surety bond.
If unable to obtain a replacement title from a previous Michigan owner, the dealer submits...keep reading
HEADLINES FROM THE INTERNET news and information you may find interesting
One Employee's Accidental Email Leads To...
A federal appeals court recently addressed whether employees had standing to bring a lawsuit when their personally identifiable information (PII) was inadvertently circulated to other employees at the company, with no indication of misuse... Cox Automotive May Read more Forecast: As Memorial Day Approaches...
Workplace Compliance According to a forecast released Now Clearer: The 6 Key by Cox Automotive, automobile sales in the U.S. are expected to Requirements be healthy in May, but down from April's historic result. Sales Michigan workplace safety authorities just are expected to finish at a released their highly anticipated revised seasonally adjusted annual... Emergency Rules that streamline employer’s duties when it comes to responding to COVID-19- Read more related concerns and better reflect the most www.coxautoinc.com recent CDC guidance on vaccinated...
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Michigan Legislative News from MIRS
Provided by the Auto Dealers of Michigan, LLC
Stamas, Hertel, House Caucus Leaders Seen As Most Effective Whitmer Campaign Will Cover Florida, Inaugural Flights SOS Appointments Are Working, Benson Says; Lawmakers Push KEEP For Walk-Ins READING Corporate Income Tax Put On The Platter Poll: Duggan 64%, Adams 15%; Winfrey, Young Both Up
CALENDAR, REMINDERS & EDUCATIONAL OPPORTUNITIES
MARK YOUR CALENDAR! BCBS (Jun. 1) Relaxation MADPAC Golf Outing (Sept. 15) Techniques for Computer If ever there was a year to join Michigan dealers for golf - Fatigue this is the year. Celebrate the ability to gather! More info to come soon. NADA (Jun. 2) Accepting Cryptocurrency in May 24 MIOSHA Emergency Rules Dealerships Effective June 1: MDHHS Gatherings and Face Mask Order NADA (Jun. 10) Creating a Diverse Workforce: How to Complete the NADA Energy Star Survey for the Attract and Retain a Opportunity to Win $100 Gift Card! The best 10 completed Different Candidate submissions will win a $100 Amazon gift card. You are eligible to participate even if you have already submitted Federated Insurance (Jun. a survey! Official contest rules can be found here. 15) HR 101: Common HR Mistakes
Tire Safety Webinar (Jun. 22) This webinar from the Michigan Department of Environment, Great Lakes, and Energy (EGLE) may be a beneficial "watch" for tire retailers who want additional resources to help customers understand proper tire maintenance and what potential problems to be aware of.
This session will cover: Ways to extend the life of your tires, increase fuel efficiency, and reduce air emissions. How to avoid commonly overlooked tire maintenance issues and increase safety. Liabilities associated with improper tire maintenance. Tire replacement issues to be aware of. Regulations associated with tire disposal and where to find grants for tire recycling.
The featured Speaker will be T.J. Tennent. He has been designing, developing, and working with tires for over 20 years. During the Ford/Firestone ATX recall, he analyzed and reported on over 300,000 tires. As the Engineering Manager for Bridgestone/Firestone, he worked as the technical liaison for the legal team and served as an expert witness during depositions and court cases. He retired from Bridgestone/Firestone and now owns the Tyre Guy and Tennent and Associates, a tire forensics firm that trains law enforcement, emergency vehicle technicians, insurance claim agents, and fleet managers on tire safety and risk reduction. He is also an expert witness for liability cases involving tire failures that result in personal injury.
Anyone who owns or operates a vehicle will benefit from this webinar, including fleet managers, mechanics, and safety officers. Register here
WHEN YOU REVIEW YOUR VENDOR RELATIONSHIPS... please consider some of the many companies that support our association
CAPTRUST's Clarkston team has been With 30 years of experience in the energy serving Michigan-based auto dealerships industry, the IGS family of companies since 1989 providing fiduciary advice to provides natural gas, electricity, solar, LED auto dealers across the country to help lighting solutions and alternative fueling them, and most importantly, their team options to over one million customers members manage their retirement across the country. As the preferred energy plans/accounts more effectively. partner to the MADA, IGS is focused on captrust.com helping members make the best energy decisions for their business. igsenergy.com
Want to learn more? Email [email protected]
Michigan Automobile Dealers Association Have a topic suggestion for a future Trouble viewing this message? View as Webpage
Robert W. Ford Dealership, Dearborn, 1940. In the mid-1930s, Ford produced the affordable Ford Laboratory Test Set. Mechanics rolled this CELEBRATING 100 YEARS OF portable diagnostic equipment to the vehicle, SUPPORTING DEALERS LIKE YOU. hooked up the unit, and checked the condition of the vehicle's engine or electrical performance. The unit detected problems MADA Fast Facts quickly and eliminated guesswork. Photo from June 4, 2021 • Vol. 23, No. 22 the Henry Ford Collection
NEWSLETTER SPONSOR UPDATING YOUR PREPAREDNESS
The automotive industry is fast-paced, PLAN with high pressure, and tough revised template provided by competition. You want to retain your Colombo & Colombo, P.C. top-performing employees, and offering comprehensive benefits can help. With MIOSHA's recent relaxing of the However, with little downtime to workplace safety rules, many dealers educate employees on their benefits are updating their COVID-19 workplace options, your employees may not preparedness plan. As a reminder, this understand the value you're providing. plan is still a requirement of the new American Fidelity is here to help create MIOSHA emergency rules. and manage your benefits education plan on your schedule so you can focus If your dealership made revisions to on serving your customers. masking requirements or other changes americanfidelity.com following the relaxed MIOSHA rules, your preparedness plan should be updated accordingly.
Colombo & Colombo, P.C. has updated its sample preparedness plan template for dealers who would like to use this version. This is a template only and must be edited to the specific operations of each individual dealership. Your business name and the name of the person(s) responsible for your COVID-19 controls must be typed into the file to be valid for your business plan, plus any additional details specific to your business.
Colombo & Colombo. P.C. Sample Preparedness Plan (rev. June 1, 2021)
Under the recordkeeping portion of the plan, it notes that dealers should maintain records sufficient to verify the vaccination status of employees asserting such.
“Records” sufficient to verify vaccination status may include:
1. Have the employee sign a letter/form similar to that prepared by Abbott Nicholson. 2. The employer records the date that it reviewed the vaccination card for each employee (but does not keep a copy of the actual card). 3. Keep a copy of the vaccination card in such a way that confidentiality is maintained, following EEOC guidelines. (Please note that while this is an option, it may pose significant administrative challenges for a dealership to comply with the law properly.)
MIOSHA also still requires employee COVID-19 training. Colombo & Colombo has revised its employee training outline to follow the new MIOSHA rules.
If you have questions, please contact your association for more information.
Work Share May Benefit Your Business, While Supporting Employees
Michigan’s Work Share program allows employers a temporary option to retain their full workforce - with reduced employee hours - when business is slower than normal. Employees collect partial unemployment benefits to make up a portion of the lost wages. Employers retain their current workforce and are given the flexibility to choose which of their employees are part of a Work Share plan.
On top of state unemployment benefits, qualifying employees will also receive the federal $300 per week through Sept. 4, 2021. Example: max. unemployment is normally $362/wk. A one-day, 20% layoff would normally be $72, but with the federal pandemic pay the employee would receive $372.00 for being off one day.
Eligibility Requirements Employers should be current on wage reports. Employers must have paid wages for at least 12 of the previous quarters. Employee hours/wages may be reduced by a minimum of 15 - 45%. Experience account balance must have a positive reserve.
Work Share Requirements: Employers are given flexibility to organize which employees are in a Work Share plan. A plan must include a minimum of two employees and an employer can have multiple plans. Plans may be approved for a period of up to 52 consecutive weeks. Part-time employees are eligible, but Work Share does not apply to seasonal, temporary, or intermittent employment. Employer must obtain approval of any applicable collective bargaining unit representative. Employers participating in Work Share cannot modify employee fringe benefits.
An employer must submit a work share plan to UIA by Thursday so UIA can confirm the plan to begin the following Monday. The plan may be revised, but it must first be resubmitted and approved.
Since the federal government is currently paying, work share will not affect the trust fund or the amount the employer pays into it.
Another option: employer filed claim layoff (for full layoffs) This is when the employer makes the claim, rather than the employee. This may be an option for employers who cannot maintain their full workforce for a period of time. This is a full layoff, but UIA can process much faster since there is no confusion why the employee is off. If the layoff is capped at 45 days or less, the employee does not have to “look for work.” Plus, they still receive the federal $300.
Get more information from UIA: Work Share. Restart. Retain. Work Share Toolkit
June is Automotive Service Professionals Month
To recognize the automotive service professionals who help keep our vehicles on the road, and our friends and family safe, the National Institute for Automotive Service Excellence (ASE) is hosting Automotive Service Professionals Month. The month-long celebration will highlight the essential service provided by automotive professionals and provide an opportunity for shops, companies and organizations to thank them for their continued service. For more information and to find ways to participate, click here.
Follow ASE on Instagram, Twitter, LinkedIn and Facebook @ASEtests for weekly drawings and giveaways throughout the month of June!
Legislation to Increase Capacity at Branch Offices
Secretary of State Jocelyn Benson announced legislation has been introduced to increase the Department of State’s capacity to serve customers at its branch offices. The bills would address a severe reduction of staff in previous decades and a backlog of transactions that need to be done following extensions of credential expirations throughout the pandemic.
In recent decades, disinvestment and other rollbacks at the Department of State cut offices by 46 percent and staff by 40 percent. Meanwhile, the state’s population grew 10 percent and the number of vehicles in Michigan increased 25 percent, leading to office wait times tripling from 2011 to 2018 to an average of nearly two hours at the ten busiest offices.
In 2020, these challenges were exacerbated by the pandemic, with exposures to the virus forcing staff to stay home and offices to close.
Read more in the SOS press release
News from NADA: Potential Threat to State Franchise Laws and Efforts to Improve EV Incentives for Consumers
NADA is currently focused on three legislative issues: preserving state vehicle franchise laws, ensuring the proposed $100 billion electric vehicle incentive program works in the showroom, and opposing tax increases that will hurt family businesses and the economy.
The Biden administration has proposed a two-part infrastructure bill that includes $174 billion for electric vehicle (EV) consumer incentives and infrastructure. Advocates of direct sales, environmental groups and academics want to add a provision to the infrastructure bill to preempt state dealer franchise laws as applied to EVs. Dealers should tell lawmakers that Congress must preserve a state’s traditional role to license and regulate vehicle commerce. Defending the state dealer franchise model is NADA’s top policy priority. The president’s proposal includes a $100 billion consumer incentive program for EVs. NADA is meeting with congressional staff to ensure an EV incentive program would “work in the showroom.” NADA supports giving consumers an assignable, refundable tax incentive for a down payment instead of making the consumer wait to file a tax return. Also, a mechanism that ensures dealers get reimbursed promptly will be key to a successful EV consumer incentive program.
Read more about NADA's legislative priorities in the NADA Capitol Insider.
HEADLINES FROM THE INTERNET news and information you may find interesting
7 Options for Managing a Partially Vaccinated Workforce
This Insight addresses some of the legal and practical considerations for employers dealing with a partially vaccinated workforce and provides seven options for you to consider as you navigate this rapidly evolving area...
Read more Auto supplier-OEM working relations...
Employers Now Have 2 Clear Supplier relationships directly impact the automotive industry’s Options to Provide Vaccine competitive dynamics. We share Incentives... key findings from the 2021 Plante Moran Working Relations Index® The EEOC kicked off the unofficial start of summer (WRI) Study and what they mean with a bang by clearing the way for employers to for OEM and supplier offer their employees incentives to get the competitiveness... COVID-19 vaccine in new guidance released on the eve of the Memorial Day weekend.... Read more www.plantemoran.com Read more
Michigan Legislative News from MIRS
Provided by the Auto Dealers of Michigan, LLC
Auditor General Asked To Track Nursing Home COVID Deaths Gov To Businesses: We'll Fill The Gap To Help You Pay $15-Per- Hour Wage KEEP COVID Cases Reported In May Down 72% From April Surge READING Gov Vetoes Bills Limiting COVID Order Impact On Graduations; FOIA CALENDAR, REMINDERS & EDUCATIONAL OPPORTUNITIES
DADA (Jun. 17 at 9am) Join Kurt Berryman for the Top 5 from the Capitol and an interview with Rep. Yousef Rabhi from the 53rd House District. Register
BCBS (Jun. 10) Greening Your Workspace. We’ll share the best live plants for your workspace and how to care for them along with the benefits of bringing nature inside.
Mich. Wage & Hour (on-demand) Webinar on youth employment to share information about the recent changes to the Youth Employment Standards Act including work permits, hours, record keeping and If ever there was a year to join wages. Slides / recorded presentation Michigan dealers for golf - this is the year. Celebrate the ability to gather! More info to come soon.
WHEN YOU REVIEW YOUR VENDOR RELATIONSHIPS... please consider some of the many companies that support our association
Reynolds and Reynolds was founded in The Ralph C. Wilson Agency provides a 1866 as a business forms printing company. comprehensive package of risk We entered the automotive market in 1927 management solutions, healthcare with standardized accounting forms. coverage, employee benefits and wealth Today, we are an industry leader supplying management to Auto Dealers addressing nine out of the top 10 private dealership all of their financial and insurance needs. groups. ReyRey.com rcwa.net
Want to learn more? Email [email protected]
Michigan Automobile Dealers Association Have a topic suggestion for a future www.michiganada.org newsletter? Send us your ideas. Trouble viewing this message? View as Webpage
CELEBRATING 100 YEARS OF Workers inside one of the GM Flint plants marks SUPPORTING DEALERS LIKE YOU. day 21 on the strike calendar. On Dec. 30, 1936 GM employees in the GM Fisher Number One Plant began their 44-day sit-in, during which MADA Fast Facts they refused to work or leave the Fisher One, June 11, 2021 • Vol. 23, No. 23 Fisher Two, and Chevrolet Number 4 plants.
NEWSLETTER SPONSOR IMPORTANT! confirm your finance license is processed and renewed
The Michigan Department of Insurance The automotive industry is fast-paced, and Financial Services shows that more with high pressure, and tough than 100 new vehicle dealers have not competition. You want to retain your renewed their installment seller license top-performing employees, and offering for 2021. comprehensive benefits can help. If not renewed prior to the However, with little downtime to June 30 deadline, the dealership educate employees on their benefits will be required to stop financing options, your employees may not vehicles until a brand new license (with understand the value you're providing. new license number) is applied for and American Fidelity is here to help create approved by the state. and manage your benefits education plan on your schedule so you can focus Even if you have submitted paperwork, on serving your customers. please check the online DIFS database americanfidelity.com to confirm your license renewal has been received and renewed.
DIFS Insurance and Financial Services Search Click here >> https://difs.state.mi.us/locators?searchtype=ConsumerFinance
For the best search results, only type in your "license number" when searching. (Entering too much information may result in a "null" response.) Click the record for your dealership after searching to see the Reporting Dates. The Calendar Year row for 2021 will show the date you renewed. If it does not list a date for 2021, your license has not been renewed. (See image.) When your record shows it has been renewed for 2021, it is suggested that you print a copy of the page. Some financial institutions or auctions request the confirmation.
REMINDER! If you have yet to process your installment sellers license renewal and accompanying volume of activity report, please refer back to the original DIFS email sent on or around April 1, 2021. (See sample below.) There are unique codes within the body of the email that are required to submit your renewal payment.
If you have questions about renewing your license or if you cannot locate the original email please contact Michelle Brenke at [email protected].
Dealer Survey: How Are You Investing in EVs?
We have had a great response to this survey with some incredibly valuable feedback from dealers. Thank you! The survey will remain open through June 17th for those who would still like to respond.
The federal government is making a huge push for electric vehicles, including potential funding and big customer rebates. There is no better way to promote EV sales than through the nation's dealer network. Michigan dealers are making significant investments in the EV infrastructure so we are prepared to meet the requirements of an increased demand. However, not everyone thinks on-the-ground dealerships are the best solution to the future of EVs.
In order for MADA to best advocate for the dealer network, we need your feedback. How are you preparing for EV sales? Please complete this anonymous 4-question survey and provide your feedback.
Dealer EV Investment Survey
SOS Increases Branch Office Appointments
On Tuesday, Secretary of State Benson announced that the department would add 350,000 branch appointments. These appointments will be spread out between now and Sept. 30th (the end of the fiscal year.)
Half of these appointments will be added to the "next day" scheduling (spread over the year). Half will be added to the "advance" scheduling calendar.
There are no changes to dealer drop-offs at branch offices. However, the additional appointment times will hopefully make it easier for your technicians to schedule training, and for your customers to renew licenses and registrations.
Scheduling Next Day Appointments Appointments are released every weekday at 8 am and noon. Book online at www.michigan.gov/SOS.
If you know someone requiring a next-day appointment, remind them to get online right at 8 am or noon - there are more appointments, but they still go fast, especially at the busier locations. It may also be helpful to check appointments at more than one branch office.
SOS Benson has also added the option to book appointments in person through a pilot program that will place greeters at the doors of many of the department’s busiest offices this month. When visitors arrive without an appointment, greeters will tell them if any staff are available to serve them, or assist them in scheduling a return visit. The same service will be available at offices without dedicated greeters when counter staff is able to approach the door between appointments.
Residents needing disability placards can now be served as soon as possible after arrival at any office. While these residents are still encouraged to schedule their visit, appointments are no longer required to receive a disability placard.
Read more in the SOS press release.
5 REASONS TO REVIEW YOUR WORKERS COMP PROGRAM
More than 35 years ago, a group of Michigan dealers got together to develop a workers compensation plan for auto dealers; they formed Michigan Auto Dealers Self-Insured Fund (MADSIF). MADSIF's board is comprised of Michigan dealers located around the state who use their insider’s view of the business to lower insurance costs for all MADSIF members. If service and savings is your priority, learn more about the workers' comp plan that approximately half of franchised Michigan dealers are part of.
1) Dividends, Dividends, Dividends Premiums are collected (~$5 million annually), expenses are paid. The remainder goes back to the members. They’ve earned it. 30-40% of premium returned, year-after-year ~$5 million has been returned to our members, 8 years in a row.
2) All Mutual Exposures/Standard Set by Dealer Board of Trustees Our 13 Board of Trustees are all Michigan Auto Dealers with one common goal To give all 233 members what they need to control costs & make money All Services are Geared Towards Michigan Auto Dealers New SDS App | HazCom Shipper Training | Right-to-Know | Slips & Fall Prevention The injury exposures are limited to those within MADSIF, and no other industry.
3) Lower-Cost, Higher-Quality Loss Prevention & Claims Management Services 20-25% lower cost than that of the open market, self-insured groups provide a superior level of claims management and loss prevention services Claims are managed, not processed. We fact-gather with the injured worker, supervisor & treating physician to determine compensability; Steering the claim in the right direction. Safety and loss prevention services coordinated by MADSIF to include accountability, detailed evaluations, modified duty options - all with implementation resources.
4) Member Input and Direction on Claims 20-25% loss ratio is typical for MADSIF. 66% is the industry standard. Lower loss ratios are the result of MADSIF’s strong claims process, requiring input and collaboration from both the member and the claims handlers as soon as the claim occurs.
5) Stable, Permanent Solution MADSIF members don’t shop their workers compensation every year. Member retention rate is just about 100% every renewal. Regardless of pandemics, hurricanes or economic market conditions, neither our appetite for dealerships our service standards change. If you would like more information, please reach out to a dealer on MADSIF's executive committee, or contact Jennifer Monkiewicz, fund administrator, by phone (866-919- 9578) or email ([email protected]).
Printable Handout
NADA Market Beat: May Sales Strong; Slight Fall from April’s Highs
New light-vehicle sales remained strong in May but fell slightly from April’s highs. May’s SAAR totaled 17 million units, as April’s SAAR was revised upward to 18.8 million units. May 2021’s SAAR was up 40.3% from May 2020’s, when light-vehicle sales had just begun to turn around from April 2020’s pandemic lows. In a normal year, a 17 million- unit SAAR would be considered quite solid. But given current market conditions, May’s drop in sales highlights the effects of a supply and demand imbalance.
May 2021 began with total inventory of 1.97 million units, down 17.9% from the beginning of April 2021 and off 39.6% from the start of May 2020. Inventory has been especially constrained in some of the hottest market segments and among the most popular models. Pickups, which were in high demand throughout the past year, represented just 16.6% of new vehicles sold in May 2021, the lowest market share for the segment since March 2019.
But car market share posted its first year-over-year gain since December 2012, rising to 24.2% from 23.1%—another sign that customers may be settling for second- or third- choice vehicles when unable to find a vehicle in their preferred segment. Many dealers have encouraged customers to place orders for the exact vehicle they want if it’s not available on the lot. As a result, many new vehicles arriving at dealer lots have already been sold, and the ones that aren’t spoken for...keep reading
Are You A Cyber Savvy Business Leader?
The recent attack on Colonial Pipeline and resulting impact on our fuel supply re- emphasized the importance of organizations having a resilient and effective cybersecurity plan in place. Often times senior leaders aren’t always aware of the state of their cybersecurity program and/or how to evaluate it. UHY, LLP has developed a Cybersecurity Readiness Guide that contains 6 questions that you can ask your Information Technology (IT) department to help you determine if your company is being adequately protected.
Download the UHY, LLP Cyber Readiness Guide here.
HEADLINES FROM THE INTERNET news and information you may find interesting
More Lawsuits Are Challenging Employer Mandatory Vaccination Policies, Relying More on Fear...
Invoking horrific images of Nazi war crimes and employees allegedly being used as “human guinea pigs,” a new round Update: Visa / of lawsuits are challenging employers’ rights to enforce Mastercard class mandatory COVID-19 vaccination requirements... action lawsuit
Read more If you've been following the process of settling the class action lawsuit 4 Simple Ways Men Can against Visa and MasterCard, you may Improve Their Health have noticed that everything stalled while Men are either being schooled in how they can reduce the parties work to muscle loss, embark on a multi-week strength-training resolve a few appeals challenge, or given a laundry list of specific superfoods they of the approved should be working into their diet if they hope to stay as virile settlement. and sculpted as the models that grace the covers. In reality, there are many more reliable ways that men.... Read more www.retailers.com Read more
Michigan Legislative News from MIRS
Provided by the Auto Dealers of Michigan, LLC
GOP-Lean Poll Has Gov Favorability At 41%; New Results Speaker Looking Into 'Narrowly Tailored' Auto Insurance Adjustment KEEP House Approves Ethics Package Including Closed Review Panel READING Senate Eyes $1.5B For Bridge Repairs; Property Tax Relief Passes Refundable Tax Credit For COVID-Closed Businesses Passes Senate
CALENDAR, REMINDERS & EDUCATIONAL OPPORTUNITIES
(Jun. 17 at 9am) Join Kurt Berryman for the Top 5 from the Capitol and an interview with Rep. Yousef Rabhi from the 53rd House District. Register
BCBS (Jun. 15) Men's Health Month
NADA (Jun. 23) Embracing Your Dealership’s Electric Future Today
Fisher Phillips (Jun. 23) Employment Issues Arising from Mergers & Acquisitions
Fisher Phillips (Jun. 24) Advanced HR Webinar Series: What to Do When a Background Check Has a Hit
WHEN YOU REVIEW YOUR VENDOR RELATIONSHIPS... please consider some of the many companies that support our association
For more than 60 years, Fenner, Melstrom & Historically, buying and selling Dooling, PLC has provided strategic business wholesale vehicles is time consuming, consulting, tax, and audit services to privately- expensive and loaded with risk. Our held companies and business owners seeking to 20-minute online auction provides maximize profits and minimize tax liabilities. FMD immediate access to thousands of takes pride in providing proactive services to its dealers while delivering trusted, ACV- clients which include personal attention and backed vehicle condition reports. involvement with our engagement team acvauctions.com resulting in consistent, quality service. fmdcpas.com
Want to learn more? Email [email protected]
Michigan Automobile Dealers Association Have a topic suggestion for a future www.michiganada.org newsletter? Send us your ideas. Trouble viewing this message? View as Webpage
1959 Pontiac Service Poster. Artist Jacqueline Bergey Ward worked for several Detroit-based CELEBRATING 100 YEARS OF commercial art studios, where auto manufacturers and dealerships were clients. In SUPPORTING DEALERS LIKE YOU. the late 1950s, she created posters advertising auto maintenance and repair services -- an important source of revenue for dealers. MADA Fast Facts ImageImage fromfrom thethe HenryHenry FordFord Collection.Collection. June 25, 2021 • Vol. 23, No. 24
NEWSLETTER SPONSOR SAFE and HEALTHFUL WORKING CONDITIONS For over 75 years, Colombo & Colombo, employers have flexibility again P.C. has been extensively involved in representing automobile dealerships Federal and state OSHA rules are and their trade associations. Many designed to ensure safe and healthful Michigan dealerships rely on Colombo & working conditions for employees -- free Colombo for litigation matters as well as of recognized hazards, by setting and advice on matters involving the legal enforcing standards. The pandemic aspects of operating a dealership. Our brought MIOSHA regulations to the experience makes the difference. forefront, but even now that the colombopc.com extensive COVID-19 specific rules have mostly been suspended in non- healthcare settings, employers of course still need to provide a safe and healthy work environment.
As we notified dealers earlier this week in a DADA/MADA advisory, the Michigan Occupational Safety and Health Administration (MIOSHA) filed revised COVID-19 emergency rules to align with Federal OSHA's Emergency Temporary Standard (ETS). The updated MIOSHA rules are currently in effect and are set to expire Dec. 22, 2021. (For more information see: MIOSHA press release, federal OSHA guidance for non- healthcare settings and CDC guidance for COVID-19 .)
The federal OSHA guidance is technically not mandatory and creates no new legal obligations. However, there is still an expectation and requirement that employers will maintain a safe and healthy workplace.
What does this mean for Michigan dealers? COVID-19 spread is still a concern and many workplaces have unvaccinated workers and people in at-risk categories. It is expected that each dealer will have procedures in place to ensure all employees are provided a safe and healthy work environment. These procedures may look different from one business to the next because Michigan is now allowing employers flexibility in what is best for your employees (and customers). Use your best judgment in determining whether to maintain daily health screenings, face-covering requirements (regardless of vaccination status) and social distancing requirements, especially in communal areas such as break rooms.
Whatever you choose, be consistent in your procedures, make sure your employees are aware of the expectations and back-up your reasoning in case of questions or potential MIOSHA inspection. Dealers should continue to have a person in place to handle employee questions or concerns.
OSHA will consider an employer’s good faith efforts to comply with its guidance in the context of enforcement.
A Little Side Note...
We have heard from a few people that links in our newsletters and advisories don't open for them. After a bit of research, it sounds like this may be due to the recipient's email security settings. There have recently been major cyber attacks across the country (Colonial Pipeline, JBS meat supplier, etc.). In response, many tech companies and email providers have increased security settings. If newsletter links have become an issue in the past month (or if messages are going to "junk" mail), you may want to reach out to your IT and ask if an internal setting is blocking the links or messages.
Help Wanted: U.S. Automobile Dealers Struggle to Hire Employees While Business Booms
The U.S. economy is showing signs of returning to pre-pandemic levels, and the auto business is booming. Like many industries, U.S. automotive retail is struggling to find enough employees for dealerships to be fully staffed, much less meet their 2021 growth goals. In the 2021 Cox Automotive Dealership Staffing Study published today, 72% of franchised auto dealers surveyed say that finding and hiring the right employees is currently a challenge.
A majority of dealership leaders – approximately 65% – report that they plan to increase the total number of employees in the dealership this year, while ~34% said they plan to maintain their staffing level. Expanding the number of service technicians is the highest priority for dealership leaders, with 60% planning to increase the number of service technicians this year, followed by new-vehicle sales associates (54%) and used-vehicle sales associates (48%).
Dealers’ desire to grow their operations comes at a time when business is strong. According to the Q2 Cox Automotive Dealer Sentiment Index, sentiment related to the current market reached a record high in Q2 for both franchised and independent dealers, and the profit index set a record high as well. The 3-month market outlook index reading is an increase from last quarter and, importantly, equal to Q1 2020, the final pre-COVID-19 reading.
“While the outlook for dealerships has never been better, dealers state that finding employees is a challenge due to people not returning to their positions or the workforce post-pandemic,” said Angela Drake, senior industry intelligence manager, Cox Automotive. “The traditional lack of interest in working at dealerships is exacerbated this year by pandemic-related stimulus money and enhanced unemployment benefits. The good news is that our study found overall interest in working at dealerships is growing, and a growing number of employees in non- automotive jobs view their skill sets as transferable to the dealership.”
JOB SEEKERS MAY HAVE SKILLS DEALERS DESIRE, AND NOT KNOW IT When asking potential job seekers why they would not want to work at a dealership, 32% indicate they did not have the necessary skills. However, the 2021 Dealership Staffing Study finds that Heavy Digital Dealers, those dealers that significantly invest in digital retailing tools, say the right employee doesn’t need automotive experience. Instead, they are looking for the following characteristics:
Willing to go above and beyond their specific job responsibilities Good communicators across all communication channels (verbal, written, video, etc.) Can easily adapt to a quickly changing work environment Tech-savvy and comfortable with learning new technology
“As pandemic unemployment assistance winds down, dealers have the opportunity to promote their job openings to a new group of job seekers who may not have considered working in a dealership,"...keep reading
CLICK: Cox Dealership Staffing Study
NADA Releases New Guide on Online Financing and eContracting
NADA's new Driven guide addresses an important part of the online sales process: electronic contracting, or eContracting. A Dealer Guide to Online Financing and eContracting discusses both in-dealership and remote eContracting, together with the corresponding best practices to help dealers manage compliance obligations. The guide also provides basic information on beginning the online process and applying for credit; vehicle delivery with online sales; and post-sale assignment, distribution, and funding. The guide was prepared for NADA by attorneys Daniel Doman and Joseph Karam of RouteOne LLC.
Motor City Car Crawl - Tickets Now On Sale for the Charity Event
The Motor City Car Crawl is an all-new event in downtown Detroit produced by the Detroit Auto Dealers Association (DADA) and the Downtown Detroit Partnership (DDP). The event will showcase new vehicles from metro Detroit area dealers throughout six downtown parks. In addition to seeing a wide assortment of vehicles, attendees can enjoy numerous downtown establishments, all within walking distance, as well as local food trucks, beverage stations and family entertainment in various locations throughout the city during the weekend. Vehicle displays and entertainment will be free throughout the weekend.
As part of the event, a ticketed charity event will take place on Saturday, Aug. 7, featuring singer-songwriter and nine-time Grammy Award winner Sheryl Crow and an array of food and beverage offerings. CLICK HERE TO PURCHASE TICKETS. The event will raise money for nine Detroit children’s charities including, Boys & Girls Clubs of Southeastern Michigan, Boys Hope Girls Hope Detroit, Children's Center, The Children's Foundation, Detroit PAL, Judson Center, March of Dimes Metro Detroit, University of Michigan C.S. Mott Children’s Hospital and Detroit Auto Dealers Association Charitable Foundation Fund, a fund of the Community Foundation for Southeast Michigan.
Ticket prices for the Motor City Car Crawl Charity Gala are $250 each. HEADLINES FROM THE INTERNET news and information you may find interesting
Regulatory Changes Bring Iowa dealership shares video Updates to ID Cards... of break in In December of last year, the Consolidated Appropriations Act "They were able to break in and find (CAA) was signed into law and three keys to three specific vehicles in included several provisions for health a matter of 15 seconds to be in and plans and insurers. Two of those out." The thieves stole a 2019 Silverado, changes are discussed below and a 2014 Silverado double cab and a affect ID cards and how people 2017 Highlander... receive care...
Read more Read more www.kcci.com www.mibluesperspectives.com
Michigan Legislative News from MIRS
Provided by the Auto Dealers of Michigan, LLC
Investigation Finds No Fraud, But 'Vulnerabilities' In '20 Election Results $10M Set Aside For Providers Impacted By New Auto Insurance KEEP Law READING Dems Stop Effort To End Federal $300 Unemployment Top-Off Early Rolling 90-Day Grace Period For Expired Driver Licenses Clears House Panel
CALENDAR, REMINDERS & EDUCATIONAL OPPORTUNITIES
NADA (Jun. 30) Strategies to Maximize Absorption Rates at Your Dealership
BCBS (Jul. 1) Aging in the Workplace
AFIP (Jul. 20-21 in Okemos) 2-Day AFIP Boot Camp conducted by AFIP and sponsored by ADS and Great Lakes Companies
CAPTRUST (on demand) As the cost of trading stocks has dropped to zero, more individuals are feeling empowered to purchase and trade stocks, bonds, and other investments. But how much risk you are willing to take with your portfolio may determine if you are acting as an investor or a speculator.
WHEN YOU REVIEW YOUR VENDOR RELATIONSHIPS... please consider some of the many companies that support our association
Dealers Resources Inc. is an independent agency focused on the unique needs of Michigan's Dealer indirect financing and automotive dealers. Our 18 field employees across financial products. msgcu.org the state specialize in process development, training, and management support - including the "Digital DRI Process". DRI provides a wide range of superior F&I products and various reinsurance structures focused around the needs of the individual dealer. dealersresources.com
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