WANADA Bulletin # 37-05 September 14, 2005

KATRINA UPDATE:

Dealers Step Up Donations to Emergency Relief

With NADA showing the way, state and metro dealer associations have pledged nearly $2 million as of last week to the National Automobile Dealers Charitable Foundation’s Emergency Relief Fund to help meet the financial needs of dealership employees impacted by Hurricane Katrina.
NADA announced last Friday that it has pledged up to $1 million to the fund, with another $1 million contributed by dealers associations around the country, including a major donation from WANADA.
“As with the 9/11 tragedy, WANADA has formulated a plan to organize Washington area dealers in the nation’s hurricane relief efforts,” WANADA Chairman Dennis O. Rippeon said in a recent letter encouraging association members to match that effort.
Following 9/11, WANADA was able to organize dealer donations in excess of $100,000, which, in conjunction with NADA’s Charitable Foundation, went to Pentagon victims assistance groups. Additionally, Washington area dealers contributed another $150,000 to assorted 9/11 relief efforts, for a total contribution of $1/4 million.
To dealers nationwide, NADA Chairman Jack Kain said, “We are determined to help our fellow dealers and their families in the Gulf region who have suffered so much from the devastation of Katrina…We're especially grateful to be part of an industry that is showing its compassion across the country to help those in need.”
NADA reports that some state and metro associations are taking additional creative steps to raise funds, such as designating a portion of sales to emergency relief, providing vehicles in needy areas and serving as drop-off and distribution centers for relief agency supplies. California, for example, is asking each dealership employee throughout the state to contribute $10 to the fund and Chicago is matching dealership employee contributions up to $125,000.
Locally, Sheehy Auto Stores raised tens of thousands of dollars for victims by donating $100 to the American Red Cross for every vehicle sold over Labor Day weekend, according to NADA.
Because NADA is picking up the administration costs, the association reminds dealers that “every penny of every dollar contributed to the Foundation Relief Fund will go directly to help dealership employees.”
Beyond its fundraising efforts, NADA is taking a series of actions to help dealer members impacted by Katrina to get back on their feet. These include:
· Communicating closely with both domestic and international auto manufacturers to share ideas on the best ways to help impacted dealers.
· Membership dues and 20 Group dues have been suspended for dealers in the affected areas.
· The National Automobile Dealers Association Retirement Trust (NADART) has streamlined processes for impacted participants and plan sponsors.
· The N.A.D.A. Official Used Car Guide Co. is providing free guide books and/or additional web lookups and e-Valuator for Dealers CDs as a courtesy to affected dealers, as well as extending existing payment schedules.
AIADA also has launched Emergency Relief Auto Jobs, a program with the aim of matching retail automobile salespeople, technicians and related personnel displaced by Hurricane Katrina with temporary jobs at international nameplate auto dealerships. Job seekers can contact AIADA with their job history and contact information and AIADA will match their qualifications with openings submitted by AIADA members. Job seekers and those with job openings are encouraged to contact AIADA’s Emergency Relief Auto Jobs by e-mailing autojobs@aiada.org or by calling (800) GO-AIADA. AIADA anticipates launching an online job bank this week.
WANADA is also working with NADA to relocate displaced gulf coast dealer personnel to Washington area dealerships. Early estimates are that Hurricane Katrina likely damaged more than 200 dealerships and displaced 7,000 dealership employees in Louisiana, Mississippi and Alabama.

2006 WASHINGTON AUTO SHOW

Inside…
Ways to Help With Hurricane Katrina Relief Efforts....p.2
Nearly 60% of Shoppers Influenced By Gas Prices….p.2
WANADA Steps Up Efforts to Recruit Veteran Techs p.3
Death Tax Vote Postponed……………………………….p.4 NADA Dealers Kick Off National Child Passenger Safety Month……………………………………………p.4

Advocates of the
“Congressional” Auto Show
House Whips Roy Blunt (left, center) (R-MO) and Steny Hoyer (D-MD), flanked by D.C. Mayor Anthony Williams (left) and WANADA CEO Gerard Murphy.

Page 2 WANADA Bulletin #37-05 September 14, 2005

Hurricane Relief Efforts

Ways to Help With Hurricane Katrina Relief Efforts
NADCF Emergency Relief Fund Care of
WANADA Community Support Foundation
Make checks payable to WCSF and fax back the response form enclosed with this WANADA Bulletin, or call Barbara Martin at (202) 237-7200.
Dealerships interested in hosting a hurricane relief event as part of AIADA’s Rev-Up America program, going on October 10-22, 2005, can call (800) GO-AIADA or visit: www.aiada.org/rev-upamerica.
Also, any WANADA dealers interested in offering jobs to Gulf Coast dealership employees harmed by Hurricane Katrina should contact Barbara Martin at WANADA, (202) 237-7200.

60% of Shoppers Reportedly
Influenced By Gas Prices
The number of in-market vehicle shoppers who say that gas prices have either changed their minds or strongly influenced their purchase decisions has climbed 13 percentage points to 59 percent since July, according to the August 2005 AutoVIBES, a study from Harris Interactive and Kelley Blue Book Marketing Research.
The study also found that 42 percent of vehicle shoppers indicated that they would seriously consider a more fuel-efficient vehicle if gas prices were to increase another quarter above the current national average ($2.61 per gallon, as of Aug. 26). This is a 12-percentage-point jump since July, and an all-time high since tracking began in April 2004, said study executives.

WANADA Bulletin #37-05 September 14, 2005 Page 3

WANADA APPRENTICE TRAINING

WANADA Steps Up Efforts to Recruit Veteran Techs

WANADA made major gains recently in its effort to recruit more qualified armed forces veterans for the association’s Apprentice Training Program. In meetings with our tech team of Archie Avedisian, Bill Belew and Wil Desjardins, federal, state and local officials voiced support and further assistance and referrals for the WANADA program.
The first was a visit to Montgomery Works, the county’s “One Stop” career center, which recently sponsored a job fair in Wheaton that included about 100 veterans, many having served recently in Iraq and Afghanistan. On hand to discuss job opportunities were several area government and private employers, including the WANADA Apprentice Training program, which has been officially approved as an educational site by the Veterans Administration Office of Veterans Affairs.
WANADA representatives met with Robert Pelletier, the director of veterans services for One Stop career centers, which are located throughout the state and sponsored by the Maryland Department of Labor’s Division of Workforce Development. The centers are well equipped to offer counseling, screening, training and job placement.
Also in attendance was Eric Seleznow, director of Montgomery County’s Workforce Investment Services; Maggie Leedy, lead disability navigator, Montgomery Works; Brenda Baker, labor exchange supervisor for Maryland; and Wayne Miller, the team leader for the Department of Veterans Affairs office in Silver Spring, who counsels returning veterans and refers them for training and jobs.
All three officials expressed strong support for the WANADA program, which could play an important role in helping thousands of returning veterans looking for civilian jobs. In a follow-up meeting, Miller agreed to offer more leads on qualified vets – particularly those with “motor pool” experience who are interested in auto technician careers.
This “re-entry process” is important to veterans, said Miller, who was disabled in the Vietnam War. “It gives them a sense of dignity and pride and duty and country.”
For WANADA dealers, the expanding relationship with federal, state and local agencies set up to assist veterans “opens up a new door for them to get qualified technicians, people who are going to be screened and trained and referred to us for jobs in dealerships,” Avedisian points out. “And it gives us another layer of screening and clearance to help us find really good people.”
Avedisian said thanks to the swelling ranks of returning veterans and he encouraged more dealers to participate in the WANADA Apprentice Training Program. Since commencing, WANADA has placed 116 techs in dealerships throughout the area.
Avedisian, who has spearheaded the effort to recruit veterans and involved area Rotary Clubs in the training program, credits Mary Nagel, a Carroll Creek Rotarian who works for the Frederick One Stop career center “for tipping us off to this great resource.” Nor does it hurt that Pelletier is a member of Elkridge Rotary. Networking pays off.
For more information on the WANADA Apprentice Training Program, contact Archie Avedisian or Bill Belew at WANADA, (202) 237-7200.

At the recent Montgomery Works job fair for veterans, WANADA tech team, Archie Avedisian, Bill Belew and Wil Desjardins, met with county, state and Veterans Administration employment officials. From left, front row are: Eric Seleznow, director, Workforce investment Services, Montgomery County; Maggie Leedy, lead disability navigator, Montgomery Works; and Avedisian. From left, back row are: Dejardins; Belew; Brenda Baker, labor exchange supervisor for Maryland; and Robert Pelletier, Veterans Services, Maryland.

Page 4 WANADA Bulletin #37-05 September 14, 2005

Death Tax Vote Postponed
In light of the tragedy in the US Gulf Coast region and the death of Supreme Court Chief Justice William H. Rehnquist, the expected vote by the Senate last week on the repeal of the death tax was postponed for at least 30 days. Congress and the Administration will focus on “essential” legislation, including emergency measures to deal with the impact of Hurricane Katrina, holding hearings on the confirmation of John Roberts to chief justice of the Supreme Court, and other appropriations bills.
AIADA reports that it has been assured by Congressional leaders that another effort will be made during this session of Congress to fully repeal the death tax. “However, due to the scope of the devastation caused by Katrina and the need to provide immediate assistance to those affected, the Senate most likely will not have time on its calendar before the middle of October. Since Congress will probably recess for the year when members return home for Thanksgiving, there will be about a three week window of opportunity for the death tax bill to be considered,” AIADA said.
NADA Dealers Kick Off National Child Passenger Safety Month
New car dealerships around the country are hosting child safety seat inspections throughout September as part of Child Passenger Safety Month, sponsored by NADA, in partnership with the National Highway Traffic Safety Administration (NHTSA). Child Passenger Safety Month coincides with the back-to-school timeframe, when many children will be on the roads each day.
“It's a national tragedy that so many of our young people are injured or killed in vehicle crashes every year, and auto dealers want to do something about it," said NADA Chairman Jack Kain. “We hope others will join us in this life-saving effort, not just this month, but year-round.”
Dealers selling vehicles made by every manufacturer will participate in the month's activities. Two area dealer organizations already participating with inspections are Fitzgerald Automotive and Tischer Acura Nissan. The Chevrolet brand of General Motors has taken an especially active role, promoting the campaign directly to NADA Chevy dealers and working with Safe Kids Worldwide to host child seat inspection events at many of its dealerships nationwide, in conjunction with its new initiative, "Babies, Boosters and Belts...All Buckled Up."
For more information on child seat safety and the "Boost for Safety" campaign, as well as a partial list of participating dealerships, visit www.nada.org/boostforsafety

Perspective…
(On the dealer practice of requests and incentives to customers to complete and return automaker surveys.)
I don’t find it troublesome either from a survey standpoint or from a business ethics standpoint...I might be incentivised to fill out the form if somebody gives me a free tank of gas or a free car wash.
-- Gerard Murphy, WANADA CEO,
from John Kelly’s Washington column, “Demanding Satisfaction From the Customer,”
The Washington Post, Sept. 8, 2005

Enclosures
Response Form - WANADA Member Hurricane Katrina Relief Effort
Driving Issues - News Briefs from The Washington Auto Show

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