WANADA Bulletin # 7-03 February 17, 2003 DEALERS IN THE SPOTLIGHT Pohanka Joins NADA Executive Committee As IT Chairman, Goal is to Improve Efficiency, Reduce Costs ADA The primary responsibility our time, effort and costs and N Chair- of the IT Committee is the make communications more man Alan - STAR (Standards for Technol- flexible and effective,” said ling has ap- ogy in Automotive Retail) pro- Pohanka. pointed Metro- gram, a joint venture between Through The Cobalt Group, politan Wash- dealers, manufacturers, com- NADA helps dealers create or ington NADA puter vendors and dealership upgrade their Web sites to Director service providers to develop steer Internet traffic to their Geoffrey P. and promote voluntary IT stan- dealerships, and invites more Pohanka as dards that will improve com- dealer input to IT system de- Geoff Pohanka chairman of munications between dealers velopment decisions. There are NADA’s Information Technol- and manufacturers. “The bene- also special purchase programs ogy (IT) Committee, a position fit to dealers will be to reduce (Continued on page 2) that puts him on the influential NADA Executive Committee. McInerney, Smith Take Office at AIADA Pohanka will also continue to serve as vice chairman of the IADA introduced its Industry Relations Committee, A new president, a post he held last year as well. Marianne McInerney, 2003 “It’s an honor to be Chairman Tim Smith, and a appointed to chair a committee new slate of officers at the after only a year as an NADA association’s annual meeting director. Information technol- in San Francisco on Feb. 3, ogy is an area of increasing 2003. importance to all dealerships “This is the beginning of and a high priority at NADA,” an exciting new time for AI- said Pohanka, president of the ADA,” said Jamie Auffen- Pohanka Automotive Group, berg, outgoing AIADA From left, 2003 AIADA Chairman Marlow Heights, Md. Chairman. “We look forward Tim Smith and new President to new leadership that will Marianne McInerney with outgoing Chairman Jamie Auffenberg Inside… add even more value to mem- bership in this organization ART Satisfaction Survey..…p.3 munications, development and Vehicle Finance Brochure…p.3 and further enhance opportuni- government affairs programs What if Guard & Reserve ties for our dealers." within nonprofit, corporate and Employees are McInerney has over 17 government sectors. Most re- Called…..p.4 years experience in managing cently, she served as the execu- Panoz Joins DC Grand Prix.p.4 and directing operations, com- See AIADA, page 2 Page 2 February 17, 2003 WANADA Bulletin #7-03

vice chairman, Region I, Tully Peace Corps and on the Fed- Pohanka //GMC/BMW/ (continued from page 1) eral Housing Finance Board. /VW, Nashua, NH; Bert A graduate of the Univer- Allen, vice chairman, Region sity of Dayton, McInerney fol- II, Bert Allen Pontiac/GMC lows Walter Huizenga, who through Compaq and Gateway Truck Inc., Gulfport, MS; Wil- computers, NADA’s online serves as president through liam J. Adamson, vice chair- March 31, 2003. dealer and inventory locators, man, Region III, Adamson and informative resources to A third-generation dealer, Motors, Inc., Rochester, MI; Tim Smith is a BMW and guide dealers in selecting IT Richard L. Morrison, vice products and services. Toyota dealer in Canoga Park, chairman, Region IV, Eero CA. A graduate of Santa Clara NADA's IT initiatives have VW of Anchorage, Alaska and already resulted in valuable University, Smith has been an Stuart Hollingshead, American AIADA director since 1995 tips for dealers on topics such Truck Dealers chairman, as hardware, e-mail, voice and and currently serves as presi- BridgeHaven Truck Sales, dent of the Greater Los Ange- data communications, mainte- Milford, CT. nance and support, training les New Car Dealers Associa- In addition to IT Chairman tion; He also was chairman of and dealer system providers, Pohanka, other committee with links to IT sites that pro- the BMW National Dealer Fo- chairmen on the Executive rum, president of the Califor- vide a wealth of information to Committee include: Larry T. dealership staff who support nia Motor Car Dealers Asso- Brown, Dealership Operations, ciation, and three-time presi- IT systems. Star Toyota, Merrillville, IN; The Information Technol- dent of the Southern California Fritz Hitchcock, Government BMW Dealers Advertising ogy Committee encourages Relations, Puente Hills Ford, dealer input. Comments and Association. City of Industry, CA; Wesley Smith received the questions about NADA’s IT L. Lutz, Industry Relations, activities should be sent to Time Magazine Quality Dealer Extreme /Dodge Trucks, Award in 1992 and the AI- [email protected], or call (703) Jackson, MI; W. Carroll 821-7270. ADA All-Star Dealer Award Smith, Public Affairs, Monu- in 1996, which recognizes ment , Pasadena, 2003 NADA Officers dealers for their community Texas; and Dale Willey, service and civic volunteerism. NADA’s 2003 officers NADA/ATAE Committee, In addition to Smith, were installed at the recent Dale Willey Automotive, Law- AIADA installed the following NADA Convention in San rence, KN. 2003 executive officers: Chair- Francisco. Joining Chairman man-Elect Buzz Rodland, Alan Starling are: Vice Chair- Rodland Toyota/Daewoo in man Charley R. Smith, Watson AIADA (from page 1) Everett, WA; and Secretary/ Truck & Supply Inc., Hobbs, Treasurer John Hawkins, Great

NM; Secretary Raymond J. Metro Autogroup in Montclair, tive director of the National Ciccolo, Village Automotive CA. Business Travel Association. Group, Boston, MA; Treasurer During its annual meet- Prior to that, McInerney served Jack Kain, Jack Kain Ford, ing, AIADA’s “Top Gun” as director of public and media LM & , Versailles, KY; award was presented to dealer relations at several national Immediate Past Chairman H. Mike Dever for his lobbying non-profit organizations in- Carter Myers III, Colonial efforts. Industry veteran Yale cluding the United Way of Auto Center, Charlottesville, Gieszl, vice-chairman and sen- America. McInerney also VA. ior adviser of Toyota, received served in the Bush Administra- Other Executive Committee the David H. Gezon Lifetime tion as press officer for the members are John E. Tulley II, Achievement Award. WANADA Bulletin # 7-03 February 17, 2003 Page 3 ART Study Shows consumers who have purchased or leased a new vehicle within the last 18 months, including 253 94% Satisfied with Dealers minorities. In addition to consumers who pur- chased or leased new vehicles recently and the New car dealers can give themselves a pat news media, 400 dealership managers were on the back. A new study finds that a major rea- polled to ascertain their views of the process. son U.S. consumers continue to buy new vehicles ART conducted nearly identical surveys in 1998 at a near-record pace despite tough economic and 2000, documenting significant improvement times is a growing satisfaction with automobile in each. For a full report, visit dealers and the car buying experience. In fact, www.autoretailing.com. high customer satisfaction levels were found to be prevalent across all ethnic and gender categories AFSAEF, NADA Publish and especially strong among women buyers. The new national opinion poll conducted by Financing Brochure

Wirthlin Worldwide for Automotive Retailing As mentioned in last week’s Bulletin, dealers Today (ART), a coalition that includes all major will soon be receiving a new brochure to help educate automobile manufacturers and dealer organiza- consumers on the basics of vehicle financing. Intro- tions, showed that, overall, 94 percent gave duced at the recent NADA convention, thumbs up to the purchase experience. “Understanding Vehicle Financing,” is a joint effort The survey also showed: by NADA and the American Financial Services Asso- • 95 percent of women are satisfied by their ex- ciation Education Foundation (AFSAEF), prepared in perience, besting men who reported 91 percent cooperation with the Federal Trade Commission positives, disproving the myth that women are (FTC). It provides information to help consumers intimidated by the buying experience. learn about dealership financing and evaluate their own financial situations before financing a new or • Asians have the highest satisfaction level with used vehicle, including: their dealership experience (96%), followed by • A checklist of recommended actions to take be Caucasians and African-Americans (each 94%), fore, during and after visiting the dealership; and Hispanics (90%). • A worksheet to determine a monthly payment • Interviews with 100 normally skeptical auto- amount that the borrower can afford; motive journalists found 52 percent today believe • A worksheet to allow borrowers to compare that consumers would report a positive new car terms from up to three creditors; buying or leasing experience – up considerably • A glossary of common financing terms; and from 39 percent in 1998, which shows their • A list of federal laws regulating dealership attitude is improving. financing and leasing. • When asked to list their top “likes” involving NADA will distribute copies of the brochure the purchase process, most consumers listed the to its 20,000 members later in February. AFSAEF will offer the brochure through personal finance car (24%); sales/service (11%); price workshops, trade show exhibitions, partnerships with (8%); and ease of purchase (6%). community organizations, links to the Web sites of ART's findings track with other recent industry AFSA’s auto finance members and its own Web site. research, including the American Customer Satis- The FTC will include the brochure among a list of faction Index released in August 2002 by the Uni- consumer resources posted on its Web versity of Michigan Business School, which site (www.ftc.gov). found consumers are more satisfied with their Consumers and dealers may obtain a free copy of autos than they are with most other major prod- “Understanding Vehicle Financing” by downloading ucts. J.D. Powers & Associates also found “very, it from AFSAEF’s Web site (www.afsaef.org), calling the Foundation’s toll free phone number (888-400- very high levels” of satisfaction with the industry th overall, as well as high marks for vehicles and the 2233) or by sending a request to: AFSAEF, 919 18 sales process at dealerships. Street, NW, Dept. UVF, Washington, DC 20006. Or- ganizations interested in bulk orders should contact The survey included 1,112 interviews with the Foundation or visit its Web site for pricing infor- Page 4 February 17, 2003 WANADA Bulletin #7-03 FOOTNOTES: What if Dealership Guard & Reserve Employees are Called Up? With many already being called back to active duty, dealerships with essential employees who are members of the Reserve and National Guard are reminded that they should have a plan in place to work through any potential disruption that may result from a broad call-up to active duty. To assist in those efforts, the U.S. Small Business Administration's Office of Veterans Business Devel- opment has created a Web site where small businesses with key employees who are members of the Reserve or National Guard can find relevant information on SBA programs and services aimed at reducing the problems caused by the loss of one of these employees. The Web site is www.sba.gov/ reservists/.

Panoz Joins DC’s Grand Prix, June 27-29 The Panoz Motor Sports Group, promoter of some of the world’s most successful professional sports car racing events, has joined with the event organizers for the second annual Cadillac Grand Prix of Washington, D.C. The event, featuring the , will be held June 27-29 on a purpose-built racing circuit constructed in the north parking lots adjacent to RFK Stadium. The event will be televised by CBS Sports (live) and Eurosport. The Panoz Motor Sports Group (PMSG) , which includes many of the motorsports holdings of entrepreneur , is best known for promoting The Mobil 1 Twelve Hours of Sebring at Se- bring International Raceway and at . PMSG also owns the Sebring and Road Atlanta racing facilities, as well as Mosport International Raceway near Toronto, the Panoz Racing School and the American Le Mans Series. “The Washington, D.C., event set the standard for other events to follow in its inaugural year,” said Panoz. “We look forward to working with the DC Sports and Entertainment Commission and others in the District to add to the success and take the event to even higher levels.”

Northwood to Offer Accounting, Financial Statement Courses in March Northwood University will be offering two classes in March: Automotive Dealership Ac- counting, March 3-7, 2003, and Financial Statement Analysis, March 13-14. For more information and registration, contact Susan Woodcock, Northwood Continuing Education Department, (800)

Staying Ahead…

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