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November 8, 2017 FacebookTwitterFlickrRSSSEND TO A FRIENDPRINT
Inside this issue
Franchised Dealerships Create Lasting Career Opportunities for Veterans, Military Families
Senate GOP Tax Bill Could Delay Corporate Tax Cut and Make Other Major Changes That Break Sharply with House Plan
House Passes Bill to Overturn Controversial Joint-Employer Ruling
Last Chance to Register for NADA Academy Seminar on Advanced Parts Management
Southern California Auto Dealership Group to Pay $1.4 Million for Violating FTC Order Requiring Clear Financing and Leasing Disclosures in its Advertisements
The Biggest Problem with Electrified Cars May Be Car Buyers
Ally Provides $2 Billion in Financing to Carvana
Cars.com Users Rate Vehicles, Dealerships and Now Individual Salespeople
Subaru, Volvo and Nissan Execs Slated for NADA / J.D. Power Conference in Los Angeles on Nov. 28
Expo at NADA Show 2018 in Las Vegas is Sold Out
Top Stories
Franchised Dealerships Create Lasting Career Opportunities for Veterans, Military Families



JACKSONVILLE, N.C. – Military veterans John Yun, general sales manager, and Erin McKinney, executive assistant, both work at Marine Chevrolet-Cadillac in Jacksonville, N.C., near Marine Corps Base Camp Lejeune.
 
“My dealership creates jobs for veterans,” said Yun, who served in the U.S. Marine Corps. “Having served goes a long way. It goes a long way with the customer and it goes a long way with the staff here. Everything is relatable between the customer and the individual helping that customer.”
 
McKinney, who is also a military spouse, estimates that 85 percent of the dealership staff is either directly or indirectly related to the military.
 
“We do understand the unique challenges that military families have to overcome,” McKinney said.
 
For more information, visit mydealership.org.
Source: NADA
 
Editor’s note: Camp Lejeune is commemorating the U.S. Marine Corps' 242nd birthday today at the base in Jacksonville, N.C.

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Senate GOP Tax Bill Could Delay Corporate Tax Cut and Make Other Major Changes That Break Sharply with House Plan

Senate Republicans on Tuesday were considering a starkly different approach to overhauling the tax code than their House colleagues, weighing a delay in the implementation of a major corporate tax cut and other measures to alter the cost and impact of the plan.

Senate leaders were exploring postponing the centerpiece of the effort — an $845 billion corporate tax cut — until 2019, according to four people familiar with a draft of the legislation. The move would make it easier to comply with Senate rules that aim to limit any legislation’s impact on the debt.

No decisions have been made, the people familiar with the negotiations said, but Senate Finance Committee Chairman Orrin G. Hatch (R-Utah) is slated to reveal his proposal Thursday.

“I hope we can get there, that’s for sure,” Hatch said.
Source: Washington Post

Editor's note: NADA has been meeting with Senate Finance Committee members and their staff to ensure they examine the cumulative impact of limiting interest and advertising deductibility and LIFO, so tax reform provides meaningful tax relief for small businesses, such as auto dealers that drive investments and jobs. NADA remains concerned that limiting interest deductibility would make floor planning more expensive, which could threaten future auto sales, dealership jobs and state and local tax revenue. NADA sent a letter to the Senate Finance Committee today to emphasize the importance of preserving the full deductibility for floor plan interest.

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House Passes Bill to Overturn Controversial Joint-Employer Ruling

The House on Tuesday evening passed a bill that would overturn an Obama-era National Labor Relations Board (NLRB) ruling that made companies potentially liable for labor law violations committed by their subcontractors.

The Save Local Business Act, sponsored by Rep. Bradley Byrne (R-Ala.), was approved 242-181 despite pushback from Democrats.

The bill, which passed the House Monday, would change that definition under the National Labor Relations Act and the Fair Labor Standards Act to state a company is only considered a joint employer if it "directly, actually and immediately" has control over essential terms and conditions of employment.

“The legislation simply restores a common-sense joint-employer standard,” House Education and the Workforce Committee Chairwoman Virginia Foxx (R-N.C.) said on the floor.
Source: The Hill

Editor’s note: NADA supports the Save Local Business Act (H.R. 3441), which if passed into law, fixes a loophole where dealers were exposed to liability for the labor law violations of their contractors. NADA has worked with a broad group of trade associations through the Coalition to Save Local Business to advance the bill.

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Last Chance to Register for NADA Academy Seminar on Advanced Parts Management

The NADA Academy will be hosting a weeklong Advanced Parts Management seminar at Northwood University in Midland, Mich., from Dec. 4-8, 2017. Attendees will learn how to transform their parts department into a profitable operation by improving inventory, as well as discuss important topics like parts turn and fill rates.

Participants will analyze and discuss their dealership’s performance and walk away with the tools to make significant improvements. The key areas covered include: perfecting the mix, profit-centering, understanding customer needs, a deep DMS dive, case study and SWOT analysis, sharing best practices and more.

Space is limited. To register, click here. (NADA member log-in is required for registration.) For more information, call 800.557.6232 or send an email to academyseminars@nada.org.
Source: NADA

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Southern California Auto Dealership Group to Pay $1.4 Million for Violating FTC Order Requiring Clear Financing and Leasing Disclosures in its Advertisements

Agency alleged ads misled consumers about the actual prices they would have to pay

A Southern California-based auto dealership group will pay $1.4 million to settle Federal Trade Commission charges that it violated a 2014 administrative order prohibiting it from misrepresenting how much consumers could pay to finance or lease a vehicle.
Source: FTC

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The Biggest Problem with Electrified Cars May Be Car Buyers

The biggest enemy of electric cars in America may be the average car buyer. When news of the GOP tax plan broke, there was plenty of talk that the plan to kill the $7,500 federal tax credit for electric vehicles would make the cars an even tougher sell among mainstream consumers. That may be true for some buyers, but electric vehicles may be facing issues that even an incentive may not solve.

For example, out of 16 million unique users every month, fewer than 5 percent of searches on car-buying site KBB.com are for electric or hybrid vehicles, Kelley Blue Book analyst Rebecca Lindland told CNBC.

The hybrid Toyota Prius was introduced in 1997 and several competitors have since emerged, but hybrid cars have never accounted for much more than 3 percent of total auto sales, Lindland said. In fact, sales have fluctuated over time, sometimes moving up and down with gasoline prices.

"While it is not ideal that the tax credit may go away, it was not the panacea for electric vehicle sales," Lindland said. "It is not like EV sales were on fire because of the incentive."

"Car buyers don't see hybrid and electric vehicles as providing the right solutions for their wants and needs, even though the vehicles often can," she said.
Source: CNBC

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Ally Provides $2 Billion in Financing to Carvana

Ally Financial is tripling its bet on one of the auto industry's disrupters by committing $2 billion to finance retail contracts for online used-vehicle retailer Carvana over the next year. In January, Ally agreed to finance up to $600 million in retail contracts over 2017 for Carvana, known for its used-car vending machines. Under the new agreement, Ally will make the funding available to Carvana for financing and bulk purchases of contracts, a statement said Tuesday.
Source: Automotive News

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Cars.com Users Rate Vehicles, Dealerships and Now Individual Salespeople

An enhanced Cars.com feature lets online consumers establish an early digital connection with car salespeople, rate them and, in turn, learn what other customers think of them. The innovation, Salesperson Connect, aims to bond dealership salespeople to online car shoppers before they visit the store. It also allows – and encourages – consumers to review salespeople, not just dealerships or vehicles.
Source: WardsAuto

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AutoConference LA News
Subaru, Volvo and Nissan Execs Slated for NADA / J.D. Power Conference in Los Angeles on Nov. 28

Tom Doll, president and chief operating officer for Subaru of America, Anders Gustafsson, Volvo Cars USA’s new president and CEO and senior vice president for the Americas, and Jeremy Tucker, vice president of marketing communications and media for Nissan North America, are among the industry speakers at AutoConference LA on Tuesday, Nov. 28, 2017.

Doll

Gustafsson

Tucker

AutoConference LA, hosted by NADA and J.D. Power, will be held at the InterContinental Los Angeles Downtown, the tallest U.S. building west of Chicago. The half-day conference precedes media days at the Los Angeles Auto Show.

Other speakers include Mark Scarpelli, NADA chairman, Finbarr O’Neill, CEO and president of J.D. Power, as well as a panel discussion the future of autonomous vehicles and an analysis on auto retailing in the California market.

The conference starts with a noon luncheon and ends with a networking reception on the 73rd floor of the hotel, which offers unparalleled views of the cityscape and skyline of downtown Los Angeles. For the complete agenda or to register, visit www.autoconferencela.com.
Source: NADA

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NADA Show News
Expo at NADA Show 2018 in Las Vegas is Sold Out

Early-bird $100 registration discount for dealers and managers ends Nov. 17

More than 500 companies occupying 700,000-plus square feet in two halls at the Las Vegas Convention Center will be exhibiting at NADA Show 2018. The show runs from Thursday, March 22, to Sunday, March 25. For the full list of exhibitors, click here.

In addition, the sold out Expo includes the NADA Pavilion – showcasing all of NADA’s key member services; NADA 2018 Live Stage – broadcasting real time interviews and programs; NADA Social Connection Zone – offering daily mini sessions on the best digital tools and practices; Expo Theater – featuring live Las Vegas style entertainment; and NADA’s Lifestyle Program – featuring three pavilions: Relax, Explore and Excite.

Keynote speakers are Mark Scarpelli, 2017 NADA chairman, and Nick Saban, head coach at The University of Alabama (Friday’s general session); Wes Lutz, 2018 NADA chairman-elect, and John Krafcik, CEO of Waymo LLC (Saturday’s general session); and Robert O’Neill, team leader at Naval Special Warfare Development Group (Sunday’s inspirational session).

The NADA Show also offers educational training and networking opportunities for both dealers and their managers as dealer-franchise meetings.

Online registration for dealers and their managers, which includes an early-bird discount and hotel selection, is open. The early-bird $100 registration discount ends Nov. 17. Learn more at www.nadashow.org.
Source: NADA

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Quotable
"My dealership creates jobs for veterans."

    -- Military veteran John Yun, general sales manager at Marine Chevrolet-Cadillac in Jacksonville, N.C., NADA Video, Nov. 8

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