Vol. 19, Issue 4 4 April 2018 Denver Auto Show a big success: Record attendance at Camp Jeep on show week Saturday p. 16 Vol. 19, Issue 4 April 2018 Features Green Car Parade’s 30 vehicles got a lot of attention! 15 Denver Auto Show sets new records 16 Bottom line: It’s just good business to use CADA forms 29 New car dealers’ message spreads to civic groups 30 16 Columns/Departments Chair Column Anthony Brownlee: Thanks for a great Denver Auto Show! 4 Steering Column Warranty reimbursement inches toward passage 6 30 Regulatory/Compliance Supreme Court decides on Navarro 8 Member News KPA buys Environmental Risk, Management & Safety, Inc., AutoNation’s Mike Jackson will be inducted to Automotive Hall of Fame 10 In Memory of Adolf Stammler 12 Clear the Air Foundation Building momentum 14 Upcoming Events 14 Colorado Auto Outlook February results 23 On the cover 4 10 Camp Jeep had record attendance on Saturday of the Denver Auto Show. Photo: Josh Gold Photography. CADA Staff Tim Jackson Rachelle A. Rice Kim Jackson Michelle O’Connor President CFO/Controller Director of Marketing Legislative Grassroots and [email protected] [email protected] and Communications Communications Manager 303.282.1448 303.457.5120 [email protected] [email protected] Marsha Temple Khorrie Luther 303.457.5115 303.457.5113 Chief Operating Officer Business Manager George Billings Katie Buchanan [email protected] [email protected] Clear The Air Foundation Director Member Services Coordinator 303.457.5123 303.457.5122 [email protected] [email protected] Matthew Groves Polly Penna 303.775.8896 303.457.5109 Vice President of Legal, Director, Non-Dues Revenue Craig Gordon Sidney Goulet Regulatory & Compliance and Sponsorships Employee Benefits Sales Manager Member Services Coordinator [email protected] [email protected] [email protected] [email protected] 303.282.1449 Direct: 303.457.5119 303.282.1457 303.457.5117 Cell: 303.945.6426 April 2018 colorado.auto 3 From the Chair Todd Maul 4 Thanks to Chair Anthony Brownlee for a successful Denver Auto Show Colorado Dealer: The Colorado Car Convoy began The Preview Gala was a great event. We’ve had a couple of weeks to process the run up to the show and wherever The Denver Post Community Foundation the results from the Denver Auto Show it stopped, it attracted a ton of atten- and the CADA-supported Clear the and surrounding events. They were a tion. With the help from local Rotary Air Foundation will receive generous resounding success. clubs, newspapers and radio stations, contributions. UMB returned as present- Congratulations and thanks to the Convoy got the greatest audience ing sponsor and Jeremy Bloom — former Anthony Brownlee (Land Rover Denver), participation ever. NFL player, Olympic skier and head of who chaired the show for the second The Green Car Parade on the State Wish of a Lifetime Foundation — as our year. This is the first time we’ve had Capitol Circle showcased our most honorary chair. a repeat chair and the wisdom of that environmentally friendly vehicles and The Show proudly reigns as Colorado’s change is clear. Anthony learned from attracted a lot of people. It got a boost largest consumer show and the biggest and built on last year’s successful show. because Easter Sunday was a slow news single event at the Colorado Convention He worked tirelessly, including putting Center. Some of my high points included in floor time every day of the five-day 37 brands, best-ever showing of 19 pre- run. We simply couldn’t have had a production 2019 units — glimpses of the better candidate for this first two-year An economic impact future — Maxx the Robot and Camp Jeep, chairmanship stint. which had its best single day attendance Perhaps you’re wondering why we study found that the ever in Denver. emphasize these events’ success. It’s Finally, the Automotive Career Fair not exaggerating much to say that our Denver Auto Show on Friday and Saturday was a wonderful businesses continue to thrive because addition. It was organized in response of them. to the challenging time we all are having As you know, one of the main reasons pumped more than getting qualified employees, a major topic CADA exists is to represent our industry at our CADA board strategic planning to Colorado’s policymakers. Event $60 million into session last June. The Elway Dealerships revenues significantly fund CADA’s participated and I thought we got some efforts. For example, CADA has been Colorado’s economy. good candidates. We may get a couple working to pass legislation for full retail of good hires out of it, which would be a warranty reimbursement, which has great return for our time and effort. gotten a massive pushback from manu- day, so every Denver television station, All in all, I’d have to say it was an facturers. This is arguably one of the most 850 KOA Radio and The Denver Post incredible effort. Thanks again to important bills in our history. If we can covered it. Anthony Brownlee for his hard work, get it passed, it could result in as much as The Innovative Dealer Summit along with CADA staff and the auto show $130,000 average additional revenue per is simply the best dealer education production team. dealership rooftop. gathering available. I compare it to a mini Kind Regards, Also, an economic impact report NADA convention, because it has all the showed that the Denver Auto Show different products and cutting-edge ideas pumped more than $60 million into and our key managers are locally exposed Colorado’s economy. Studies have shown to what NADA offers. That means more that auto show attendance drives traffic of the people who really use the ideas, to dealerships and sales several months products and services can learn about afterwards. During the show, additional them. With 273 attendees, we had the manufacturers’ incentives and rebates highest level of sponsorship support in drive traffic and we sell more cars. IDS history. Todd Maul, Chairman 4 Colorado Automobile Dealers Association April 2018 The weather is changing Seven of Colorado’s costliest* 10 hail storms throughout history have happened in the last 10 years. Retractable Hail Canopy The WeatherSolve retractable hail canopy system has been speci cally designed and tested for Hail Alley conditions. Tested to withstand over 4” diameter hailstones with no damage. Designed to handle 120 mph winds . Extend the canopy in April, retract it in September – both at the push of a button. This also allows the canopy to be temporarily retracted if snow heavier than 6” is forecast. 1 (800) 749 2201 weathersolve.com New the Location! presented by Monday, July 23, 2018 Riverdale Golf Club 13300 Riverdale Road • Brighton, CO 80602 8 a.m. Shotgun Start Lunch follows Golf Event Dunes Course Registration opens soon! For sponsorship opportunities, contact Polly Penna at 303.945.6426 or [email protected] Steering Column Tim Jackson President and CEO Warranty reimbursement bill on track for win ur long awaited Warranty vehicle are paid for by the dealership dealership purchase result in profit Reimbursement at Retail fran- in full. The amounts reserved by the to manufacturer. chise legislation is upon us at the manufacturer on the vehicle have • Dealer has built manufacturer- OColorado Capitol. been paid in full by the dealership. mandated facilities, purchased Over the next two weeks — the • Vehicle is sold to consumer. Consumer manufacturer-required special final two of the Colorado General pays dealership for vehicle, which tools, and has complied with all Assembly — we at CADA will seek includes all manufacturer’s service/ manufacturer-requisite training for its passage of Senate Bill 219, sponsored repair commitments. Dealership may technicians. Manufacturer-required by Senator Jack Tate (R-Centennial) profit from sale of vehicle, though training for technicians is paid for by and Representative Tracy Kraft often doesn’t. (Many new car sales dealer to manufacturer. Dealer must Tharp (D-Arvada). have advanced all of these When passed, the legisla- costs to be authorized to tion will create meaningful perform manufacturer- changes in warranty reim- reimbursed warranty and bursement from factories in maintenance work Colorado. This is a primer • Vehicle covered by developed by dealers and staff manufacturer warranty who have been intimately arrives at dealership and and intensely involved in is repaired by dealership. the legislation. Consumer leaves with vehicle. If/when vehicle is Warranty Reimbursement not repaired properly by Primer: What Senate dealership, that dealership Bill 219 addresses is liable (not manufac- A crucial point of education turer), unless problem is that the ‘cradle-to-grave’ is due to manufacturer sequence of events involved defect that was not in warranty reimbursement leads to an do not result in dealer profit, unlike caused by dealership’s failure to economic imbalance that disfavors the dealership purchase from manufac- repair properly. dealer if the manufacturer is allowed to turer stated above.) • Vehicle is properly repaired by dictate the parts and labor rates at the • Vehicle later needs repair or dealership; consumer does not pay very end of maintenance, and work is covered dealership because consumer has the sequence. Here’s the sequence: by manufacturer warranty or main- paid for manufacturer warranty when tenance commitment. To fulfill the purchased vehicle. Dealership has • Dealership pays for the vehicle at manufacturer’s commitment, con- installed parts on vehicle and paid for dealership cost. Manufacturer is sumer takes vehicle to an authorized technician labor to perform repair paid in full, including set profit- franchise dealership, as per warranty work (as in previous bullet).