Chairman Korengold speaks of industrys mercurial year, noting highs and lows of 2013

Chairman Korengold speaks of industrys mercurial year, noting highs and lows of 2013

WANADA Chairman Danny Korengold, who will continue in his post in 2014, offered association members a reflection on the highs and lows of the past year in his Chairmans Report at the associations Annual Meeting and Luncheon, Nov. 25.

Korengold started by invoking the Chinese curse May you live in interesting times, where interesting is usually taken as a euphemism for navigating the highs and lows of life. Among this years challenges, he said, were chronic high unemployment, creating an unstable economy and political gridlock leading the nation to the edge of the fiscal cliff, sequestration and a government shutdown.

Despite these challenges, said Korengold, the stock market hit new highs, and new vehicle sales are approaching heights not seen since the early 2000s. Even with the furloughs and layoffs of many government employees and contractors in the Washington area, he said that vehicle demand remains robust, with consumers out and about in growing number buying cars and having their old ones serviced.

Two areas of continuing difficulties come from President Obamas signature public policy accomplishments, the Affordable Care Act and Finance Reform, which Chairman Korengold said are increasingly looking like they will set back small business and dealers in particular.

Although Democrats and Republicans agree that the rollout of Obamacare is a disaster, Korengold said, the worse problem for dealers comes from the Consumer Financial Protection Bureau (CFPB) and its unfounded position that auto dealers, as credit arrangers for car buyers, discriminate against minorities.

But heres the bottom line in what Korengold called an unprecedented attack on our industry: CFPB wants dealer credit arrangers – that they have no authority to regulate directly – to be forced by their bank partners – that they do regulate – to settle for reduced or flattened compensation for the dealers longstanding job as credit arrangers.

Looking at the regional issues that WANADA dealt with this year, Korengold mentioned Teslas effort to set up direct sales in Virginia, starting with a storefront in Tysons Corner mall. He thanked the Commonwealth of Virginia and VADA for working out an arrangement that doesnt compromise state law or the franchise system.

On the state front, correspondingly, he reported that both Maryland and Virginia this year approved major transportation plans aimed at easing the areas major traffic congestion. Going forward WANADA is working with MADA on a bill that would establish a motor vehicle dealer board in Maryland, similar to the one that has operated successfully in Virginia.

The Washington Auto Show continues to be a grand success, with record attendance in 2013 and a coveted industry certification by the International Organization of Motor Vehicle Manufacturers (OICA) as one of the major events of its kind in the industry. A potential threat to the Auto Show arose earlier this year when the City agency charged with booking future dates in the Washington Convention Center determined it should be able to sell future dates already booked for the Auto Show to other convention-style events.

In response, WANADA has commissioned research documenting the shows substantial economic benefit to DC through hotel and restaurant bookings and convention center services and taxes. City Councilman David Catania, who attended the Annual Luncheon, is one of a number of D.C. leaders who appreciates the importance of a tier one auto show in the City and is working with WANADA and the booking agency to keep the Auto Show secure in its dates for years to come.