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Speakers set for Public Policy Days at Auto Show;
Show opens to public Friday, big crowds expected
The Washington Auto Show is ready to open against a backdrop of another spectacular year just past for the auto industry, an improving economy and the lowest gas prices in years. In a year when economists are forecasting record auto sales of 17 million for the first time since 2001, area residents are expected to flock to the Walter E. Washington Convention Center for the region's premier automotive event, known on the auto show circuit as the Public Policy Show. [FULL ARTICLE]

Energy Secretary Moniz to deliver U.S. keynote
at Auto Show
U.S. Energy Secretary Ernest Moniz will deliver the keynote address at the Washington Auto Show (WAS) next week, January 22, during Industry/Media Day. Moniz drew a big crowd last year when he announced a new program at the WAS offering $50 million in federal funding for fuel-efficient vehicles. [FULL ARTICLE]

VIP tours with auto experts to be
offered again at Auto Show
Back by popular demand The Washington Auto Show will again offer VIP tours of the various new car exhibits at the upcoming 2015 exposition. The Auto Show happens Jan. 23 - Feb. 1 at the Walter E. Washington Convention Center. Two auto experts and longtime industry observers will be the tour guides: John Davis, the Emmy-Award winning producer and creator of the PBS show MotorWeek, and Les Jackson, auto journalist and new vehicle evaluator who reviews 100s of new vehicles a year. [FULL ARTICLE]

Public Policy Days shaping up for industry reps
and media at 2015 Washington Auto Show
Industry leaders and the media will find a range of unprecedented activities during Public Policy Days at the 2015 Washington Auto Show - and, with any luck, better weather than last year. Made Across America: The schedule kicks off at 12:30 p.m., Wednesday, January 21, with a "Made Across America" press event. Based on the theme "How America Works," this program will celebrate the jobs and resources created by the auto industry in the U.S. and the communities that benefit. [FULL ARTICLE]

Duck Dynasty star Sadie Robertson
to appear at the Auto Show
After winning the hearts of countless admirers in the latest season of Dancing with the Stars, 17-year-old charmer Sadie Robertson is headed to meet her fans at the Washington Auto Show. The star of A&E's cult hit Duck Dynasty will appear on Friday, January 23, at the show, where she will spread her message to "live original". A motivational speaker, Robertson spends her summers on church mission trips and working at a Christian youth camp where she urges kids to "live original" by learning to express themselves with confidence. [FULL ARTICLE]

Cadillac president de Nysschen to keynote Auto Show
One of today's most admired automotive leaders, Johan de Nysschen, will present the industry keynote address at the 2015 Washington Auto Show, Thursday, January 22. The address will kick off Public Policy Preview Day at the Walter E. Washington Convention Center. As president of the leading American luxury brand of Cadillac, with a history of leadership with several of the world's top luxury automakers, de Nysschen exemplifies a key thrust of the 2015 Auto Show: The resurgence of the auto industry. [FULL ARTICLE]

George Will cites CFPB as government overreach while
extolling the value of American individualism
Political analyst and unabashed baseball fan, George Will, entertained and enlightened WANADA members at the dealer organization's 2014 Annual Meeting and Luncheon at the Ritz-Carlton in Tysons Corner last Tuesday, December 2. He spoke of the endangered spirit of American individualism and its entrepreneurial philosophy, jeopardized by a creeping statism, or big government, which by design will increase dependency on government. [FULL ARTICLE]

WANADA Area Report:
Washington area sales up 9 percent in 3rd quarter
Washington area sales rose more than 9 percent in the third quarter, but just 2 percent year to date, according to WANADA's Area Report based on R.L. Polk new-vehicle registration data. U.S. sales rose more slowly than Washington area sales in the third quarter, at 7.8 percent, but at a more rapid pace than local sales year to date, at 5.4 percent. United State figures are from NADA/Ward's. [FULL ARTICLE]

Schedule set for 2015 Washington Auto Show;
hotel rooms open
The latest in new vehicle technology, design, innovation and alternative fuel solutions from more than 40 automakers worldwide will be on display at the 2015 Washington Auto Show. Public Policy Days unite auto industry leaders with public policy makers to drive a smarter, greener, clear and safer automotive future. [FULL ARTICLE]

WANADA Annual Lunch with George Will coming up, Dec. 2nd
Will to analyze American politics, post mid-terms
Renowned syndicated columnist and political commentator George Will is poised to speak on the new politics in America when he speaks at the WANADA Annual Meeting on December 2. The lame duck session of Congress will have 10 days to go, and judging by past experience Congress will still have plenty on its plate. Will received an enthusiastic reception when he spoke at the WANADA Annual Meeting several years ago, and dealers will be interested to hear his views on how the new Congress will affect the politics of Washington. [FULL ARTICLE]

Expanded Green Car Awards at 2015 Washington Auto Show
The 2015 Washington Auto Show will host an expanded Green Car Awards program that will include the Luxury Green Car of the Year, the Green Car Technology Award and the Green SUV of the Year. Winners will be announced at the show's Public Policy Day at the Washington Convention Center January 22. "As the central address where the auto industry meets public policy, the Washington Auto Show recognizes the critical role of sustainability in this sector and our role in promoting progress," said Kevin Reilly, Auto Show chairman. "We are delighted to expand our longstanding relationship with the Green Car Journal in putting these issues front and center." [FULL ARTICLE]

Charlie Stringfellow: WANADA's choice for 2015 Time Dealer
WANADA is proud and pleased to announce to the membership that Charles S. Stringfellow, Jr, chairman of Brown Automotive, will represent the Metropolitan Washington region for the Time Magazine Dealer of the Year to be bestowed January 23, 2015 at the NADA Convention in San Francisco. The Time Dealer of the Year Award is a high honor in the automotive retailing industry and the dealers who are so recognized are among the most successful. WANADA's CEO John O'Donnell nominated Mr. Stringfellow for the TDoY award. [FULL ARTICLE]

Ben Bradlee's reach was wide and inclusive and hands-on with WANADA dealers
The storied executive editor at The Washington Post, the late Ben Bradlee, was remembered warmly at his funeral this week at the National Cathedral in an event rivaling those of former presidents in terms of pomp and circumstance and turnout. He died a week ago on Oct. 21 at the age of 93. Typical of Mr. Bradlee, he reportedly choreographed his own funeral arrangements, which reflected a full church turnout of notables and the ordinary. He made history early into his 23 year stint as executive editor at The Post when he won the bet supporting his reporters Bob Woodward and Carl Bernstein as they broke the story in the Post in 1971 on the Watergate break-in to Democrat campaign headquarters which ultimately brought down the Nixon Administration. [FULL ARTICLE]

Md. MVA now has electronic safety inspection certificates
The Maryland Motor Vehicle Administration has started using electronic safety inspection certificates. The new process is a result of House Bill 246 passed in the 2014 legislative session. This legislation removes the requirement for a written inspection but still requires dealers to have vehicles inspected, before sale. There are currently two formats available to present the Maryland Safety Inspection Certificate: a paper certificate (no changes) and a paper electronic certificate. For the paper electronic certificate, the control number begins with "E" and the signature is machine printed. It is accepted using the same process as a paper certificate. [FULL ARTICLE]

Dealer associations convene on public policy,
gov't relations and the franchise system
New auto dealer associations making up the Automotive Trade Associations network (ATAE) came together last week in Chicago to focus on state and national level public policy initiatives for their automotive retailer members in the context of external industry relations with the government; internal industry relations between OEMs and dealers; the integrity of the franchise system; and plaintiffs' lawyer- inspired consumer protection initiatives. [FULL ARTICLE]

Two auto shows, two national capitals:
WANADA reps present Washington to OEMs in Paris
A delegation of WANADA dealers attended press days for the Mondial de l'Automobile in Paris, which opened to the public there this week, for the purpose of meeting with OEM executives, industry leaders and industry observers to present plans for the 2015 Washington Auto Show. As one of the grandest events of its kind in the world, the Paris Motor Show is an important venue to visit because of the scores of industry pacesetters and OEM auto show organizers who turn out. [FULL ARTICLE]

George Will to speak at WANADA's Annual Luncheon
Dec. 2, Ritz Tysons Corner
Members may buy tickets now for WANADA's Annual Meeting and Luncheon December 2, which this year will feature distinguished columnist and commentator George F. Will. The event will take place at the Ritz-Carlton, Tysons Corner, Va. Will is not only known for his authoritative and lively commentary on national news shows, but is also America's most widely read columnist. His column has been syndicated by the Washington Post since 1974 and appears twice weekly in 500 newspapers in the United States and Europe. He received an enthusiastic reception when he spoke at WANADA's Annual Luncheon ten years ago and will surely have plenty to say about the gridlock in Congress and the difficulties on the international stage. [FULL ARTICLE]

CFPB looks to expand regulatory reach
to finance captives on auto loans
NADA offers its fair lending program as an alternative
The Consumer Financial Protection Bureau proposed rulemaking last week that would extend its supervisory authority to overseeing auto lending practices by finance captives because the agency continues to believe that minorities are being discriminated against. Challenging CFPB on the discrimination charges, NADA proposed that the agency instead accept the association's Fair Credit Compliance Policy as an alternative to rule making that NADA believes is unnecessary. The policy, issued by NADA earlier this year, was based on a 2007 model developed by the Department of Justice to resolve a discrimination case. NADA's proposal was made jointly with the National Association of Minority Automobile Dealers (NAMAD) and the American International Automobile Dealers Association (AIADA). [FULL ARTICLE]

Renowned commentator George Will to keynote
WANADA Annual Luncheon
Tuesday, Dec. 2, 2014, Ritz Tysons
WANADA is delighted to announce that esteemed political commentator and syndicated columnist George F. Will is scheduled to be the keynote speaker at WANADA's Annual Meeting and Luncheon which is set for Tuesday, December 2, 2014 at the Ritz Carlton, Tysons Corner, Va. Well known for his authoritative and lively commentary on any number of national news shows, along with his many contributions as a syndicated writer with 400 news organizations, Will's perspective couldn't be more timely than it will be when he shares it at WANADA's Annual Lunch given Washington's dysfunctional politics and America's place in an ever more menacing and turbulent world. [FULL ARTICLE]

August sales beat expectations, break records: 17.5 m. SAAR
Despite analysts' expectations that August sales would drop slightly and automakers forecasting an overall 3 percent rise, sales for the month were up 5.5 percent from a year ago. The seasonally adjusted annual sales rate was an impressive 17.5 million. Many factors contributed to the strongest sales in eight years: increasing consumer confidence, the prevalence of 0 percent financing with long loan terms, continuing pent-up demand, attractive lease deals. It helped that Labor Day weekend fell in August giving the month five weekends. [FULL ARTICLE]

Millennials moving from small cars to crossovers
In one way, at least, millennials are just like their parents: As they get older and earn a little more income, they are moving from small cars to crossovers. The change, recorded in a new study by Maritz Research, comes as many millennials are entering their early 30s, starting families and moving to the suburbs. Half of the young people in the survey said they plan to buy a vehicle in the next four years, and 80 percent of them want a new one. As one might expect, being connected in their cars is very important for this group. [FULL ARTICLE]

Washington area sales up 3% for second quarter
Continuing their upward curve since the Great Recession, Washington area sales rose 3 percent in the second quarter. Figures are from WANADA's Area Report, based on R.L. Polk new-vehicle registration data. Nationwide, where sales had fallen much farther during the recession, second quarter sales were up 7 percent in the second quarter. (U.S. figures are taken from NADA/Ward's Automotive.) The second quarter increase here and nationwide also represents a reprieve from the sluggish sales of the first quarter of the year that were hampered by harsh winter weather. [FULL ARTICLE]

Last call to sign up for ADEI Tech Training term
Classes start next week for line tech
refresher courses & tech development
WANADA is proud to count 12 of its distinguished dealer members as part of the most prestigious wing of NADA's Dealers Election Action Committee, the President's Club. Dealers are so recognized for their continuously strong and longstanding support of the organization that gets behind congressional incumbents or prospective candidates for office in the House of Representatives and U.S. Senate, who are open to the auto dealer, federal level political perspective. [FULL ARTICLE]

Dealers Election Action Committee enjoys strong support,
here and nationwide
12 WANADA dealers are in President's Club
WANADA is proud to count 12 of its distinguished dealer members as part of the most prestigious wing of NADA's Dealers Election Action Committee, the President's Club. Dealers are so recognized for their continuously strong and longstanding support of the organization that gets behind congressional incumbents or prospective candidates for office in the House of Representatives and U.S. Senate, who are open to the auto dealer, federal level political perspective. [FULL ARTICLE]

OEMs commit to Washington's 2015 Auto Show
as they have for 3 decades: By space draw
"It's fair and it works for our OEM exhibitors," said Bob Yoffe, Washington's Auto Show manager, referring to the Space Draw process for the event WANADA produces annually in DC. "Drawing for space in the Auto Show here was going on before I came -- and that's been a while. But I can say, without hesitation, that the draw gets the job done with the floor space the OEMs lease year in and year out, and that's where our business begins." In fact, WANADA dealers began using a space draw with the Auto Show that was the first event to open the first Washington Convention Center in DC in 1983, which was 31 years ago. So how does the Auto Show Space Draw actually work? [FULL ARTICLE]

Appeals court setback on Obamacare could
curtail impending employer mandate
The much publicized decision about the Affordable Care Act by the U.S. Court of Appeals for the District of Columbia last week, could mean that employers in Virginia, along with employers in surrounding states with employees who live in Virginia, will no longer be penalized for failing to provide health insurance to their employees. The same holds true for states like Virginia, which opted not to create ACA state healthcare exchanges. This will only result, of course, if the DC Circuit decision stands after the legal challenge that is likely coming. By way of background, the employer mandate section of the ACA provides that employers with 50 or more employees must offer health insurance to their employees. [FULL ARTICLE]

Attacks on franchise system and dealer financing
top dealer assns. agenda at summer meeting
Senior executives from auto dealer associations across the U.S. and Canada, which comprise the Automotive Trade Associations network (ATAE), met last week on the West Coast to sort out industry issues before Congress, state legislatures and between dealers and automakers. High on the list of government relations and industry concerns for the dealer association representatives was the ongoing assault on state dealer licensing laws by high end, electric car maker Tesla, and the media fallout it has caused calling into question the relative utility and public interest of the franchise system. While the overall impact of Tesla sales in the industry is small, the continuing media flurry stirred up by the company's flamboyant owner, Elon Musk, in furtherance of his agenda that Tesla be dealerless, remains bothersome. [FULL ARTICLE]

Daniel Jobe, Capitol Cadillac, places in "Great Race"
with vintage car
Event marks Capitol's 80th year in business
In celebration of Capitol Cadillac Company's 80th anniversary, dealer Daniel Jobe drove in this year's Great Race from Maine to Florida. Driving a 1946 Cadillac Series 62 convertible 2,400 miles, Jobe and his team finished third out of 39 entries in the Rookie Division. The Great Race is an eight-day journey of vintage cars 1972 or older on public roads and is described by organizers as a "competitive controlled-speed speed endurance road rally." Instructions are given for each turn, speed change, stop and start, usually 220 to 250 of them a day. The course has four to seven checkpoints, and the goal is to arrive at each one at the correct time, not the fastest. Congratulations to Daniel Jobe, his navigator David Prueitt and third teammate Brian Love. [FULL ARTICLE]

O'Donnell officially becomes WANADA CEO this week
For the first time in 32 years, WANADA has a new chief of staff. Effective Tuesday of this week, July 1, 2014, John P. O'Donnell officially became president & CEO of the Washington Area New Automobile Dealers Association taking over from Gerard N. Murphy, who held the post since 1982. "To be sure, I'm new as chief of staff here at WANADA, but I'm anything but new to WANADA or its staff," President O'Donnell said, referring to his 13 year tenure as a WANADA executive and an earlier business relationship with the WANADA dealer organization that antedates that experience by an additional 10 years. [FULL ARTICLE]

Employers cannot use pre-tax payroll deductions to fund employee health coverage they don't sponsor
According to the IRS, the only acceptable way to take payroll deductions from staff on a pre-tax basis for health coverage is when it goes to fund the employer sponsored health plan. The Affordable Care Act (ACA) does not permit employers doing pre-tax payroll deductions on health care coverage funding for employees with coverage outside the company's health care plan; either by funding it through an outside vendor, or returning it in cash to the employee for him or her to do so. [FULL ARTICLE]

NADA presents value of franchised system to the media
In an effort to defeat attacks on the dealer franchise system by Tesla's Elon Musk and Federal Trade Commission officials, NADA has launched a media campaign showing the benefits of the current way of selling cars. As part of the campaign, the NADA is showcasing a report it commissioned on the consumer benefits of the franchise system by none other than Maryann Keller, longtime Wall Street analyst and now managing partner of Maryann Keller & Associates LLC. "The consumer benefits of an independently owned franchise system arise not only from each dealer's ability to support the elements of every car purchase beyond simply determining the purchase price, but also from the fact that national franchise networks foster competition and therefore ensure fair market pricing in new and used cars and with service," the report says. [FULL ARTICLE]

Sunshine and blue, cloudless skies greet dealer group golfers
2014 WANADA Open, Lakewood Country Club, Mon., June 16
"I've officiated my share of shotgun starts for WANADA Outings over the years, but never has God delivered any better golf weather than now," longtime CEO Gerard Murphy (right) told soon-to-be tournament players queuing up in carts to seize the day.
Indeed, Lakewood Country Club in Rockville, Md., the site of the 2014 WANADA Open, provided the ideal setting for a day of friendly competition among Washington area auto dealers and allied industry representatives who took advantage of the opportunity to catch up with colleagues while networking and sharing unforgettable golf moments. [FULL ARTICLE]

Click here for pictures.

A Special Thank You to Our 2014 Sponsors

ABC7/News Channel 8
B&R Associates
BB&T Dealer Financial Services
BG Products
BMO Harris Bank
Capital One Auto Finance
CareFirst BlueCross BlueShield
Charapp & Weiss, LLP
Chesapeake Contracting Group
Chesapeake Employers Insurance
Chesapeake Petroleum & Supply
Comcast Spotlight
Councilor, Buchanan & Mitchell, PC
Group Benefit Services
Hamilton and Hamilton
JM&A Group
Kaiser Permanente
Penney Design Group
PNC Dealer Finance
RBC Wealth Management, Paul and John Keats
SunDun Office Refreshments
SunTrust Bank
The Washington Post
US Trust/Bank of America Private Wealth Management
Wells Fargo Dealer Services
WorkForce Tactix, Inc.

Bank of America becomes WANADA's first Kindred-line member to donate a grant to dealer career ed.
WANADA salutes US Trust/Bank of America Private Wealth Management for stepping forward with funding for the Automobile Dealer Education Institute's Technician Development Program, thereby becoming the first Kindred-line member in the association to do so. Kindred-line representative John Devine presented a generous donation to ADEI this week at WANADA headquarters in a check for $10,000 from the BoA Charitable Foundation. Devine personally organized the grant pursuant to his leadership position on the board of the Montgomery Students Automotive Trades Foundation where he serves with WANADA dealers and other county business leaders in overseeing the award-winning MCPS “Mini Dealership” that trains and motivates public high school students toward careers in auto technology and body repair. [FULL ARTICLE]

Evening marking the transition to WANADA's next CEO
evokes 82 years of Washington auto business memories
Historical fact: The new car dealer association in Washington began in DC almost 100 years ago. The first chief executive officer, however, didn't come on board until 1932, or 82 years ago, and his name was Richard Murphy. In the 1920s, Dick Murphy was one of a number of successful auto dealers in the City of Washington, who, along with his dealer colleagues, was a member of the Washington Automotive Trade Association, the forerunner group to today's Washington Area New Automobile Dealers Association (WANADA). These were but several of scores of factoids presented, discussed and bandied about over cocktails and dinner on May 29, 2014 at the newly opened Marriott Marquis to mark the occasion of the “Passing of the Key” to the WANADA office from the association's current CEO of 30 plus years, Gerard Murphy, to his successor, John O'Donnell. [FULL ARTICLE]

WANADA dealers turn out for fair credit briefing
Regulatory overreach by Feds raises prospect of legal actions
WANADA dealer principals and finance and insurance directors came together last week to gain a full understanding of where the highly publicized assault on the automobile business by the newly established Consumer Financial Protection Bureau is headed with its claims that dealers discriminate against minorities in arranging credit for car buyers. The charges by CFPB, which began in earnest last year, are curious as they are troublesome. Curious, with the new regulatory agency -- created pursuant to President Obama's signature Finance Reform law -- not having any direct jurisdiction over auto dealers. Troublesome, because the CFPB is working to impact the automobile business by pressuring the financial institutions it does regulate to modify their business relationships with dealers. [FULL ARTICLE]

Washington Auto Show reps visit OEMs at LA offices
While others are planning summer vacations, WANADA remains hard at work organizing the 2015 Washington Auto Show which begins with OEM exhibitor relations. Toward that end, WANADA's Auto Show Committee and show producer staff take care each year that OEMs understand Washington's Public Policy Auto Show mission, no less than the importance of being properly represented at the show that each year rolls out to one of the strongest, most affluent and reliable automotive markets in the world. Besides interacting with OEMs at other major auto shows, WANADA representatives visit them at their offices, which occurred most recently in Los Angles where a WAS producer team led by Auto Show Chairman Kevin Reilly traveled to see OEM executives at Honda, Acura, Toyota, Lexus and Hyundai. “We are acquainting them with our new plans and programs for Washington's Auto Show in 2015 and beyond,” said Reilly. [FULL ARTICLE]

Va. DOT chief testifies on Hill about need for highway funds
All eyes in the transportation community are on Congressional efforts to pass a federal transportation bill and replenish the Highway Trust Fund, which is projected to run out of money as early as August. Virginia's Transportation Secretary Aubrey Layne, Jr., testified before the Senate Finance Committee about the urgent need for federal funding for highways and bridges. U.S. Transportation Secretary Anthony Foxx warned that DOT would have to stop payments to states and 700,000 construction jobs would be lost if Congress didn't appropriate money for the Highway Trust Fund. A committee in the House of Representatives passed a transportation bill, and a Senate committee chair promises a bill this week. “While states like Virginia are stepping up and raising revenues, states can only do but so much,” Layne told the Senate Finance Committee. [FULL ARTICLE]

Evening to mark WANADA CEO transition
and spotlight DC area auto business
Thursday, May 29, New Marriott Marquis/Convention Center
WANADA's members along with other industry and community leaders, have been invited to celebrate 70 years of the automobile business in Washington when the association will mark the occasion of Gerard Murphy stepping out as WANADA's president and CEO on May 29, 2014 at the newly opened Marriott Marquis Hotel adjacent to the Washington Convention Center in downtown DC. Seventy years comes from the legacy Gerry Murphy has carried forward at WANADA in successively following his father, Mike, and grandfather, Richard, as CEO of WANADA. Besides the program commemorating the Washington area auto business, a dance band will perform for those so inclined. The current Murphy, whose tenure as chief executive officer at WANADA goes back to 1983, officially “passes the keys to the office” on July 1st to John O'Donnell who has been the organization's executive vice president since 2006. [FULL ARTICLE]

Dinner set to mark CEO transition at WANADA
Thursday, May 29, New Marriott Marquis/Convention Center
WANADA's members along with other industry and community leaders, have been invited to celebrate 70 years of the automobile business in Washington when the association will mark the occasion of Gerard Murphy stepping out as its president and CEO on Thursday, May 29, 2014 at the newly opened Marriott Marquis Hotel adjacent to the Washington Convention Center in downtown DC. Seventy years comes from the legacy Gerry Murphy has carried forward at WANADA in successively following his father, Mike, and grandfather, Richard, as CEO of WANADA. The current Murphy, whose tenure as chief of staff at WANADA goes back to 1983, officially “passes the keys to the office” July 1st to John O'Donnell who has been the organization's executive vice president since 2006. [FULL ARTICLE]

NADA chairman defends franchise
system at Automotive Forum
In the wake of national publicity over Tesla's efforts to go around state franchise laws, NADA Chairman Forrest McConnell explained last week why the dealer franchise system is vital to the auto industry. He spoke at the 2014 Automotive Forum, presented by NADA and J.D. Power during the media days for the New York Auto Show. Dealers helped pave the way for startup brands such as Honda and Toyota, McConnell said. Manning the pivotal retail position, dealers are as invaluable as they are indispensable to automobile business stakeholders, especially consumers. The franchise system keeps competition up and costs down for car buyers, said McConnell, a Honda/Acura dealer in Montgomery, Alabama. Addressing an issue frequently raised by Tesla proponents in the media, McConnell asserted that, “cutting out dealers would not lower car prices, because a factory-owned retail network would have to put in the same investment in physical assets and the same operating expenses that dealers now shoulder.” [FULL ARTICLE]

Virginia budget standoff over Medicaid
shows no sign of abating
Will the Virginia government shut down with the start of the fiscal year drawing near on July 1, as the federal government did? Both Republicans and Democrats are using that threat as they stick to their respective positions on Medicaid expansion. Governor Terry McAuliffe has made expansion of the health care program his signature issue. Republicans say that although the federal government is slated to pay the program's future costs, they believe the feds will back off that guarantee and Virginia will be stuck with the tab. In a compromise of sorts, the state Senate passed a bill that expands Medicaid eligibility through Marketplace Virginia, which uses federal money to provide private insurance to low-income residents, reports the Associated Press. Participants must pay up to 5 percent of their income to buy insurance through the program. [FULL ARTICLE]

Warranty reimbursement assurance passes Md. Legislature
Phased-in minimum wage increase approved for the state
With the Maryland General Assembly concluding its 2014 legislative session this week, dealers statewide gained helpful warranty reimbursement protection from automaker franchisors which skirt the existing requirement to pay retail for warranty repairs dealers perform for them. The legislation -- which passed in The General Assembly thanks to MADA with WANADA's support -- establishes a definitive time allowance on labor and a parts markup based upon a retail repair order history designed to compel all automakers to fully comply with the law on reimbursement to dealers. The legislation also includes provisions prohibiting automakers from requiring dealers to use the automakers vendors and contractors when dealers are striving to come into line with automaker facility upgrades and program implementation, such as website design. This “second generation” warranty reimbursement law will take effect October 1 when the governor signs the legislation in the next few weeks. [FULL ARTICLE]

Dealers and Tesla come to terms in NY
and Ohio while other states review options
New York Governor Andrew Cuomo announced an agreement late last week between Tesla and the two state dealer associations that was praised by all parties. Tesla will keep the five stores it already has in New York, and additional Tesla retail locations will be established under a strengthened dealer franchise law. “This agreement will serve as a model for other states as they consider how to accommodate Tesla and a distribution system that has served the public well,” said Lou Roberti, chairman of the New York State Automobile Dealers Association. Neale Kuperman, chairman of the Greater New York Automobile Dealers Association added, “This reaffirms the state's longstanding goal that cars sold through the dealer franchise system serve the consumer and their best interests.” [FULL ARTICLE]

Ohio dealers fight Tesla; bill allowing
direct sales moves in Ariz.
As predicted, Tesla Motors CEO Elon Musk has far from given up his fight for direct sales in various states. The battle has recently moved to legislatures in Ohio and Arizona. In the meantime, Tesla is dangling the promise of a $5 billion battery production plant, that could employ up to 6,500 people, to be located in a Sunbelt state. Arizona, Nevada, New Mexico and Texas are competing to host the factory. Texas has banned Tesla's direct sales model, Arizona is considering allowing it. As for the other two, who knows? In Ohio, the Bureau of Motor Vehicles has issued a license to Tesla allowing it to open direct-sales stores in Cincinnati and Columbus. Joe Cannon, a lobbyist for the Ohio Automobile Dealers Association, told legislators the decision means the state's franchise rules “have been thrown upside down,” reports the Associated Press. [FULL ARTICLE]

New Jersey aligns with other states,
denying Tesla's bid to retail cars directly
The New Jersey Motor Vehicle Commission last week denied Tesla's most recent attempt to persuade state regulators that it should be allowed to retail its vehicles without dealers, despite auto retailing laws there to the contrary. The Motor Vehicle Commission told Tesla it may no longer sell cars from its two retail locations after April 1. In so doing, New Jersey joins Maryland, Arizona and Texas, which earlier had rejected Tesla's automaker retail model that operates by selling new vehicles directly to the consumer without a dealer or retail dealer network, which is called for by a number of state motor vehicle licensing laws. Tesla's response, through its outspoken CEO, Elon Musk, was swift and predictable, accusing Governor Chris Christie of setting up a “backroom” arrangement with auto dealers. [FULL ARTICLE]

Here we go again with Tesla and its media blitz
NADA to respond to Post editorial slamming dealers
Just when everyone thought Elon Musk's one man crusade to exempt his Tesla EV sales from state auto retail licensing laws had gone away, alas it's back. Washington Post editorial writer Charles Lane's write-up in last Thursday's Washington Post confirms it (“Tesla vs. the dealerships,” Mar. 13). Curiously, TWP editorialist Lane disavows anything positive about Musk's high-end, electric sports cars -- which he condemns principally for being government subsidized. But there's one place where “Tesla stands on the side of the free market angels,” and that's in “the company's business plan ‚Ķfor selling cars directly to consumers, rather than through auto dealers” which Lane sees as nothing more than a “costly, outmoded monopoly on new car sales in the U.S.” [FULL ARTICLE]

Strong Washington area sales got even
stronger in 2013, up 2.6%
Washington area auto sales never experienced the effects of the recession as much as the rest of the nation. So 2013 sales here reflected modest gains in an already robust market. Sales for the year rose 2.6 percent, which included a small dip in the fourth quarter. U.S. sales, by contrast, were up 7.5 percent for the year and 6 percent for the quarter. But, here again, they had much farther to climb. Washington area figures for 2013 are from WANADA's Area Report, based on R.L. Polk new-vehicle registration data. U.S. sales figures are from NADA and Ward's Automotive. [FULL ARTICLE]

2014's top legal trends for dealers:
regulation, franchise demands
The year's top legal trends for dealers, compiled annually by attorney Eric L. Chase of Bressler, Amery & Ross, Florham Park,NJ, bring good news & bad news. In the bad news column for dealers and the private sector generally, 2014 will be what Chase calls “the high water mark” of regulatory activity.
The regulatory elephant in the room, of course, is the Affordable Care Act. The regulations are extremely complex and problematic, as much so as ACA's dysfunctional rollout. “As of late 2013,” says Chase, “those regulatory pages totaled 30 times the pages of the actual legislation.” Other regulatory thickets that are more dealer-specific will continue to come from the Consumer Financial Protection Bureau, the EPA and the FTC. The FTC is likely to act against dealer advertising practices where regulators find deceptive price quotes; and spot delivery, where delivery occurs before financing is final. [FULL ARTICLE]

Vice President Biden treats family to hometown Auto Show
Joe Biden: “I'm a car guy!”
The phone call came into the Washington Auto Show office Saturday afternoon, Feb. 1, on the show's final weekend, that the vice president was coming by for a visit. Within an hour of that phone call, Joe Biden, Dad and Granddad, arrived at the show with his sons and grandchildren. And, but for the extensive Secret Service detail that came, too, the vice president was like any other local visitor enjoying Saturday afternoon at the Auto Show with his boys, albeit son Beau Biden is attorney general for Delaware.
“It all happened so fast, without notice or fanfare, the likes of which we had year before last when President Obama toured the show,” said Auto Show manager Bob Yoffe, who got the phone call and handled the logistics with the Secret Service. [FULL ARTICLE]

NADA dealers upbeat in New Orleans amid upbeat auto sales
In some ways, the 2014 NADA/ATD Convention was almost like old times, back in New Orleans with auto sales likely to return to pre-recession levels this year in an improving economy. Attendance to the Convention was robust, too, at 22,000. Unlike the old days, there's a female president at the head of General Motors, Mary Barra, who was First Lady Michelle Obama's guest at the State of the Union address recently. And although it's not unusual to hear a major political figure speak at the Convention, there have been few women or Democrats. Hillary Clinton was a controversial choice when first announced, but her hour long speech appeared to be well received by dealers. [FULL ARTICLE]

Snow in Washington doesn't slow Auto Show Preview
Media mingle with operatives from
industry, Congress, agencies
Despite snowy streets and sidewalks, closed schools and delayed office openings early last week, Washington's 2014 Auto Show Media and Industry Preview commenced as scheduled on Jan. 22. And even though planned activities for the day before had to be rescheduled, there was no setback for the Preview with the Walter E. Washington Convention Center filled with reporters & automaker operatives. (Left: Kevin Reilly, WAS Chairman, opens the Media Preview Day).[FULL ARTICLE]

Click below to view images from:
Industry/Media Day

Hot on the heels of Detroit's Auto Show preview, Washington is
poised to preview and open its Auto Show here next week
Past success bodes well for Washington the Public Policy Show
and the Consumer Show
This year's Washington Auto Show follows the North American International Auto Show which previewed this week in Detroit. Specifically, Washington's Auto Show for 2014 previews next Tues. and Wed., Jan. 21-22, opening to the public Thurs., Jan. 23 and running until Sun., Feb. 2. The 2014 WAS follows the milestone Auto Show from last year that turned out the highest attendance ever in WANADA's 97 year span. [FULL ARTICLE]

Sec. of Energy to join Ford COO Mark Fields
as keynoter on WAS Media Day, Jan. 22
Media Day at the 2014 Washington Auto Show has been rounded out with confirmation of the second keynote presenter, Dr. Ernest Moniz, the Secretary of Energy. Sec. Moniz will be the U.S. government keynoter in the morning slot at 10:20 a.m. The OEM keynoter is Ford Motor Company COO Mark Fields, who will headline the Newsmaker Breakfast, co-sponsored by the International Media Press Association and the Washington Automotive Press Association. [FULL ARTICLE]

WANADA ADEI Tech Development Program earns
NATEF accreditation
The Auto Technician Development Program of WANADA's Automobile Dealer Education Institute (ADEI) has earned a five-year renewal of its Master Automobile Service Technology Accreditation. That is the highest level of achievement recognized by the National Automotive Technician Education Foundation (NATEF), the educational arm of ASE, the National Institute for Automotive Service Excellence. “It's quite an accomplishment,” says Steve Boden WANADA's educational curriculum advisor on ADEI programing who is also executive vice president of the Automotive Trades Foundation. ATF is the partnership between Montgomery County Public Schools and the local business community, including WANADA, that trains high school students by having them man a licensed used-car dealership. [FULL ARTICLE]

2014 Washington Auto Show Preview Days coming into focus
Industry/Media Preview, Jan. 21-22;
Public Days Jan. 23- Feb. 2
With 2014 and the Auto Show in Washington coming up next month, WANADA dealers, OEM executives, U.S. lawmakers and the press are looking ahead to Industry/Media Days that will be a week and a day earlier than in 2013. What follows is an outline of what's on tap, especially for the information of WANADA dealers, with more in the pipeline to be reported shortly. [FULL ARTICLE]

Ally Financial settlement with U.S. on auto loan
discrimination signals more regulatory reprisals
Action gives wing to CFPB charge that banks and dealers
rate minorities higher
Last weekend's announcement that Ally Financial settled with the federal government for $98 million triggered statements from the highest levels of the Obama Administration, starting with Attorney General Eric Holder who described it as the “largest settlement ever in an auto loan discrimination case, ” followed by CFPB Director Richard Cordray's promise to return $80 of the $98 million to the “hard working consumers who paid more for their cars and trucks based on their race and national origin.” The remaining $18 million of the $98 million payout from Ally will go to the Consumer Finance Protection Bureau's civil penalty fund. [FULL ARTICLE]

2014 Washington Auto Show
Public Policy Day & Preview, Wed., Jan. 22
Ford COO Mark Fields to kick off 2014 Washington Auto Show
Mark Fields, chief operating officer of Ford Motor Co., will deliver the keynote address at the 2014 Washington Auto Show's Newsmaker Breakfast Wed., Jan. 22. The breakfast, cosponsored by the Washington Automotive Press Association and the International Motor Press Association, is part of the Show's Public Policy Day Preview. [FULL ARTICLE]


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