Posted on 30 January 2017.
Posted on 30 January 2017.
NEW ORLEANS – In his first official speech as 2017 chairman of the National Automobile Dealers Association, Mark Scarpelli on Saturday unveiled a new initiative designed to help local dealerships showcase all the benefits they bring to their millions of customers, the 1.1 million dealerships employees in the U.S., and to countless communities across the nation.
The initiative – MyDealership.org – utilizes videos, social media platforms and PSAs to communicate the significant benefits of a strong and vibrant franchised dealership network.
“There are five hallmarks of any local dealership in America today: We are local; We are modern; We are diverse; We save people money; And we create great jobs,” Scarpelli told the audience at the NADA Convention and Expo in New Orleans on Jan. 28, 2017.
“But MyDealership.org doesn’t come from the perspective of dealers,” said Scarpelli, explaining what makes MyDealership.org so unique. “It comes from the perspective of our customers, who benefit through lower prices on sales, financing and service. When local dealerships compete against each other, customers win.”
“It comes from the perspective of dealership staff, who benefit from gainful employment at all levels, with opportunities for advancement. Did you know that local dealerships employ more than 1 million people nationwide?” he asked.
“And it comes from the perspective of local community leaders, who benefit when local businesses like ours plant roots, contribute to the tax base and give back to local community. “
Scarpelli stressed that the bottom line is the auto industry is “a people business, no matter what. Period.”
“It starts with the people we employ,” he said. “The ones who sometimes get in at 6 a.m. and don’t leave until 9 p.m. or even later. It starts with the customers we see, walking through our doors and then coming back when they need help over the life of the car. And it starts with all of us: Dealers who have pledged our lives and our livelihoods to this business – come hell or high water.”
Scarpelli said the new initiative is just the next step for an industry that for more than 100 years has been the conduit to reliable and affordable personal transportation for American consumers from all walks of life.
“Auto dealers carried the privilege and burden of answering one question: How could we sell an automobile to everyone? We knew from the beginning that this engine with four rubber tires wasn’t a luxury or even a fad: It was a necessity, and it was here to stay,” he said, noting the founding of NADA, which is now celebrating its 100th birthday. “So when the government proposed a luxury tax on automobiles in 1917, NADA was born. This was just the first of countless examples where we stood up to protect not only ourselves, but our customers, and to keep cars affordable. Ours was an association at the forefront of helping dealers do the job of selling and servicing cars to the people who wanted them, whether blue or white-collared.”
In closing, Scarpelli made the standing-room-only audience a promise: “I will be your gatekeeper for this great industry. When I sit across the table from a member of Congress, I’ll show them how we save our customers money in the finance process, not cost them. When I’m on the phone with federal regulators, I’ll tell them that our job is to serve American consumers, not ourselves. When I meet with the manufacturers, I will encourage them to enact programs which help you, not strain you. And I will do my best to make sure that I hear from you, and you hear from me. Because the most important part of our relationship over the course of this year is communication.”
Posted on 26 January 2017.
NEW ORLEANS (Jan. 26, 2017) – The National Automobile Dealers Association (NADA) is celebrating its 100th anniversary this year. Festivities for the centennial begin at the 2017 NADA Convention and Expo in New Orleans starting on Thursday, January 26.
“It’s not every day that a national trade association reaches its 100-year anniversary, yet NADA is still as strong and relevant as the day it was founded,” said 2016 NADA Chairman Jeff Carlson.
“NADA’s 100th mission for 100 years has been to represent local dealerships and our customers in Washington, D.C., with a goal of keeping personal transportation affordable for everyone,” added Carlson, president of Glenwood Springs Ford and Glenwood Springs Subaru in Glenwood Springs, Colo., and co-owner of Summit Ford in Silverthorne, Colo. “It’s an honor to serve such a respected group.”
For the past 15 years, more than 90 percent of all new-car and -truck dealerships in the United States have been NADA members. Few, if any, other associations have sustained those membership numbers, Carlson added.
Founded in 1917, NADA formed when a group of local dealers set out to fight a new effort by Congress to levy a luxury tax on new automobiles. Thirty dealers from state and local associations traveled to Washington, D.C., and set up base at the Willard Hotel.
By convincing Congress that cars were not luxury items as they were classified, but instead were vital to the economy, the group prevented total factory conversion to wartime work and succeeded in reducing a proposed 5 percent luxury tax to 3 percent.
The incident was the first of many chapters where local dealerships fought to keep new vehicles affordable for their customers.
“Local dealers argued in 1917 that cars are a necessity of American life, not a luxury item,” said 2017 NADA Chairman Mark Scarpelli, whose term as chairman coincides with the beginning of a new White House administration and Congress in the nation’s capital. “NADA was formed to make sure that entrepreneurs could open local dealerships and provide affordable cars and transportation to farmers, factory workers and people from all walks of life.”
Scarpelli, president of Raymond Chevrolet and Raymond Kia in Antioch and co-owner of Ray Chevrolet and Ray Chrysler-Jeep-Dodge-Ram in Fox Lake, Ill., officially becomes chairman of NADA during the 2017 NADA convention on Saturday, January 28.
Scarpelli’s top priorities for 2017 include advocating on legislative and regulatory issues in Washington, D.C., promoting the consumer benefits of local dealerships, meeting with auto manufacturer executives, and getting the next generation of dealers involved in their trade associations and on Capitol Hill.
“We’re advocating for clarity with the new administration and Congress, whether it’s related to auto financing, new tax proposals, vehicle recall policy or fuel economy rules,” Scarpelli said. “We’re concerned about vehicle affordability for consumers, period. We have to make sure we keep our customers top of mind when dealing with all of these issues.”
NADA’s public policy initiatives are aimed at protecting consumers from overreaching federal regulations and unintended consequences.
NADA’s centennial festivities begin at the 2017 NADA convention, which runs from Jan. 26-29 in New Orleans. More than 23,000 dealers and auto industry professionals are expected to attend over the four-day event. NADA kicks off yearlong commemorative events beginning with NADA100 Carnival in New Orleans on Thursday, January 26.
Automotive News, on January 23, published an entire issue dedicated to NADA’s 100th Anniversary, featuring interviews with many of the most prominent figures in the automotive industry. Click here for the special edition.
WardsAuto also published a NADA 100 special edition. Click here for the issue.
In addition to the convention, NADA has produced a NADA100 documentary and commemorative issue of its Convention Magazine, which was completely redesigned for the special occasion and includes a timeline of NADA, dealer and other auto-industry milestones. The documentary, magazine and other information highlighting the association over the years are available at nada.org/nada100. NADA also will be celebrating its 100th anniversary throughout the year with digital media initiatives, in speeches and at other industry events.
Posted on 26 January 2017.
IRVINE, Calif. — Spireon Inc., the leader in aftermarket telematics solutions for risk management and business optimization, will introduce its latest connected car solution – Kahu™ – at the National Automobile Dealers Association (NADA) Convention & Expo in New Orleans. Kahu is designed for dealers, providing streamlined lot management while delivering a new finance and insurance (F&I) profit center by offering consumers a modern location tracking and stolen vehicle recovery service. Additionally, Kahu empowers dealers to grow service retention with car buyers by providing accurate vehicle data for proactive maintenance reminders that can improve vehicle health and keep vehicles within warranty.
“New car dealer margins have been flat for several years, driving a need to create new revenue and profit opportunities,” said Kevin Weiss, CEO at Spireon. “Connected cars are changing the industry, but dealers are receiving little value from this shift. Kahu changes that dynamic, giving dealers the tools they need before, during and after the sale to grow profits and benefit from the connected car revolution.”
Kahu includes an aftermarket GPS device and mobile apps for both dealers and their customers. The solution provides these features and benefits to dealers:
· Lot Management — Dealers can easily manage inventory, track specific vehicle location, and see low battery indicators using a mobile phone or tablet, streamlining operations and creating a better buying experience for consumers. Virtual geofences and after-hours alerts allow dealers to identify and recover stolen vehicles within minutes.
· F&I Profit Center — Kahu offers dealers a high value add-on for consumers who seek peace of mind with a next generation vehicle recovery service and an arsenal of easy-to-use mobile features. From 24/7 vehicle location visibility, so consumers can track their vehicle and family at all times, to smart alerts for speeding and low battery, Kahu is an attractive add-on that safeguards consumers while driving dealer profit.
· Customer Loyalty — Kahu uses GPS-based mileage tracking to improve the accuracy of service reminders and increase service retention. Consumers benefit by being able to maximize warranty protection and ensure recommended service intervals are maintained.
“Our partnership with Spireon has paid for itself tenfold,” stated Spireon customer Jon Hansen, General Sales Manager, Burien Nissan. “Being able to offer a product that I find value in to our customers and making it a revenue generator for the dealership is really big for us. I would absolutely recommend Spireon to other dealerships.”
Spireon’s aftermarket GPS devices are installed on more than 3.5 million vehicles and offered by 14,000 dealerships across North America. With Kahu, car dealers and consumers now have access to state-of-the-art mobile location services, which protect their vehicle assets and can lead to reduced insurance premiums.
Kahu is already installed with a select group of early adopter customers, and will be generally available in the second quarter of 2017.
To learn more about Kahu at NADA please visit Spireon’s booth, #4309 in Hall E, or schedule a meeting at http://www.spireon.com/nada2017/.
Posted on 25 January 2017.
NEW ORLEANS – To show its long-time support for the New Orleans community ahead of the National Automobile Dealers Association (NADA) Convention and Expo this week, NADA Foundation donated $50,000 to the Emeril Lagasse Foundation, which supports Café Reconcile.
“My wife Alden and I are delighted that NADA has chosen the Emeril Lagasse Foundation as a grant recipient in conjunction with their convention. This generous philanthropic gift will help us positively impact the lives of more children,” said Chef Emeril Lagasse, chairman and founder of the Emeril Lagasse Foundation. “Thank you for bringing your convention to New Orleans and for supporting the Emeril Lagasse Foundation.”
The NADA Foundation, since its inception in 1975, has a long history of providing financial support to New Orleans and surrounding communities from hurricane and flood relief efforts, renovating the athletic fields at Lusher Charter School, supporting Second Harvest Food Bank to numerous CPR donations to local organizations.
“The NADA Foundation through amazing contributions from our dealer network has supported dealership families, military families and children in need from natural disasters and times of emergency, like hurricanes Katrina and Rita and most recently, the flooding in Baton Rouge,” said Annette Sykora, chairman of the NADA Foundation. “Through it all, NADA has been there to help.”
The Emeril Lagasse Foundation, founded in 2002, supports organizations that create opportunities to inspire and mentor youth through culinary, nutrition and arts education with a focus on life skills development.
“NADA’s generous gift will help us continue to provide the financial resources to those organizations that rely on our support and to expand our reach to more youths across the nation,” said Brian Kish, president of the Emeril Lagasse Foundation.
New Orleans has hosted the NADA convention 12 times since 1973. The four-day event runs from Jan. 26 to 29, 2017, at the Morial Convention Center. More than 23,000 new-car dealers and their managers, automotive industry professionals and exhibitor staff are expected to attend.
“The NADA convention has a positive impact on our local economy and their philanthropic spirit leaves a lasting legacy that will benefit all of us for years to come,” Kish added. “We are honored to be the recipient of their support this year. We will ensure the gift is invested wisely in the youth of our communities.”
Posted on 16 November 2016.
LOS ANGELES — Noting that the economic outlook is a little less certain than a week ago, the National Automobile Dealers Association’s Steven Szakaly called for a 17.1 million-unit year in 2017. But the NADA’s chief economist said he’ll have a better read by the end of February, beginning of March.
By that time, Szakaly added, the industry could be on pace to sell more than 17.1 million new vehicles. The key will be whether President-elect Donald Trump sticks to his promises of tax reform, increased infrastructure spending, and reducing the regulatory burden in the banking, automotive, and energy sectors.
“These will all be net benefits. The question, of course, is, will these net benefits be outweighed by possible net negatives, which are, of course, the outlook on immigration and the outlook on free trade,” said Szakaly today at an economic briefing ahead of the Los Angeles Auto Show. “At this point, it’s really difficult to determine which set of factors are going to win out.”
As for 2016, Szakaly said new-vehicle sales are on pace for a 17.4 million-unit year with seven weeks remaining. That would be 200,000 units less than 2015’s all-time sales record of 17.5 million units.
The chief economist described the market as stable but not growing, noting that pent-up demand is “effectively spent.” What’s sustaining auto sales momentum is that the overall economic outlook for 2017 remains strong, with projected gross domestic product growth at 2.6%, employment growth between 150,000 to 180,000 per month, and the price for regular-grade gasoline at less than $2 per gallon.
The easing of fuel economy regulations would benefit the economy even more, he added. Rising wages, which have been stagnant in many sectors, would also help. Szakaly said wages have been rising steadily for college-educated workers.
The chief economist listed rising interest rates as a concern, but said that even a 2% increase would add only $30 dollars to a monthly car payment. Currently, he noted, average interest rates are running at 4.8%, with monthly payments averaging between $485 and $500.
“That’s really not much when we think about what most of these vehicles are running and costing,” he said if rates were to rise by 200 basis points. “I think consumers will be able to pay that as we look at least out into 2017. I think what we’re looking at a 50 basis-point rise by the end of 2017.”
Szakaly also listed ever-increasing loan terms and higher vehicle transaction prices as concerns. As for the latter, Szakaly believes higher transaction prices will likely be offset by manufacturer incentives, which he described as “stable at a very high level.”
Incentives, he noted, have reached $3,900, on average, per unit, representing 10.8% of MSRP. The only time the industry has seen incentives that high was in 2008. The problem is high incentives tend to push down used-vehicle prices, which could push down trade-in equity for car buyers.
Szakaly said he also expects new-vehicle dealership to retail 15.3 million used vehicles in 2017, compared to an expected 15.1 million used sales in 2016. The total used-vehicle market will exceed 40 million retail sales in 2017, he added.
“I tend to favor the idea that we will see some significant reforms on the tax side. We will see some fairly large spending in terms of infrastructure, and I think we will see a reduction in the regulatory burden far sooner than we will see the negative consequences in immigration crackdown … reductions in free trade,” Szakaly said of the new administration. “Overall, I believe the second half of 2017 could very well surprise both for gross domestic product growth and for motor vehicles. If all of these policies come to fruition, we could see a year in the 17.3 or 17.4 million [range].”