18 09 apr may News March 2017 inside Parts Class Action Settlement Border Adjustment Tax Update Service, Parts & Collision Council News Scott Lambert, President • 200 Lothenbach Ave. • West St. Paul, MN 55118 • (651) 291-2400 • 1-800-652-9029 • FAX (651) 291-2894 visit www.mada.org for details, registration and a complete list of Upcoming Events and Training Legislative Update Halfway at the Legislature Title Basics West St. Paul F&I Workshop West St. Paul Certified Title West St. Paul upcoming events We are officially halfway through the 2017 Minnesota legislative session. Legislators have completed their work in policy committees and are now focusing on assembling the state’s budget for the next two years. MADA’s top priority, updating Minnesota’s Motor Vehicle Franchise Protection Law, has succeeded in meeting first and second committee deadlines and now awaits action by both the House and Senate. The House version, House File 740, contains all of the provisions initiated by MADA, including mechanisms to provide for fairer warranty reimbursement and compensation for dealers in the event a factory issues a stop-sale order. The Senate companion, Senate File 638, has been watered down significantly. Senate Commerce Chair Gary Dahms (R-Redwood Falls) refused to allow the bill to move in its entirety unless there was agreement with GM and the Alliance of Automotive Manufacturers on all of the terms in the bill. Since the factories were pushing for changes that undermine the intent of the bill, like allowing the factories to surcharge dealers who elect to get reimbursed closer to retail rates for warranty work, those provisions were removed. MADA is working tirelessly to ensure those provisions are ultimately enacted and will be calling on members to provide examples of how the factories unfairly shift the costs of warranty and recall work to dealers to help us make the case. Sunday Sales for LIQUOR Now the Law After 159 years, the prohibition on Sunday alcohol sales has been lifted. The Minnesota Senate followed the lead of their House colleagues and approved the measure on a vote of 38-28, but not without trying to add auto sales to the mix. During debate on the Senate floor, Senator Dan Schoen (DFL-St. Paul Park) offered an 11 apr MADA is working tirelessly to ensure those provisions are ultimately enacted...
Transcript
18
09
apr
may
NewsMarch 2017
inside Parts Class Action Settlement
Border Adjustment Tax Update
Service, Parts & Collision Council News
Scott Lambert, President • 200 Lothenbach Ave. • West St. Paul, MN 55118 • (651) 291-2400 • 1-800-652-9029 • FAX (651) 291-2894
visit www.mada.org
for details, registration and a complete list of Upcoming Events and
Training
Legislative Update
Halfway at the Legislature
Title BasicsWest St. Paul
F&I WorkshopWest St. Paul
Certified TitleWest St. Paul
upcoming events
We are officially halfway through the 2017 Minnesota legislative session. Legislators have completed their work in policy committees and are now focusing on assembling the state’s budget for the next two years.
MADA’s top priority, updating Minnesota’s Motor Vehicle Franchise Protection Law, has succeeded in meeting first and second committee deadlines and now awaits action by both the House and Senate. The House version, House File 740, contains all of the provisions initiated by MADA, including mechanisms to provide for fairer warranty reimbursement and compensation for dealers in the event a factory issues a stop-sale order. The Senate companion, Senate File 638, has been watered down significantly. Senate Commerce Chair Gary Dahms (R-Redwood Falls) refused to allow the bill to move in its entirety unless there was agreement with GM and the Alliance of Automotive Manufacturers on all of the terms in the bill. Since the factories were pushing for changes that undermine the intent of the bill, like allowing the factories to surcharge dealers who elect to get reimbursed closer to retail rates for warranty work, those provisions were removed. MADA is working tirelessly to ensure those provisions are ultimately enacted and will be calling on members to provide examples of how the factories unfairly shift the costs of warranty and recall work to dealers to help us make the case.
Sunday Sales for LIQUOR Now the Law
After 159 years, the prohibition on Sunday alcohol sales has been lifted. The Minnesota Senate followed the lead of their House colleagues and approved the measure on a vote of 38-28, but not without trying to add auto sales to the mix. During debate on the Senate floor, Senator Dan Schoen (DFL-St. Paul Park) offered an
11apr
MADA is working tirelessly to ensure those provisions are
The Minnesota Automobile Dealers Association is a non-profit trade association dedicated to the progress of the retail auto
industry in Minnesota.Chair Rick Jensen, Jensen Motors, Inc., New Ulm Vice Chair Michael Stanzak, Key Cadillac, Inc., Edina Treasurer Peter Kolar, Kolar Toyota, Duluth Secretary Steve Whitaker, Whitaker Buick GMC, Forest Lake President Scott Lambert, MADA
200 Lothenbach Avenue • West St. Paul, MN 55118Metro: 651-291-2400 • Toll Free: 800-652-9029
FAX: 651-291-2894 • Web site: http://www.mada.org
Legislative Update.. continued from cover
amendment to also repeal the ban on Sunday Auto Sales. MADA was prepared for this in advance and had lined up a procedural motion to rule the auto amendment not germane to the bill. Senator Dave Osmek (R-Mound) made the motion that the auto issue is completely separate from the liquor one. Senate President Michelle Fischbach (R-Paynesville) and her colleagues agreed, voting down the Schoen motion on a vote of 34-32.
After the bill passed the Senate, the House concurred with a small difference between the two bills and sent it on to Governor Dayton, who signed the bill into law effective July 1, 2017. With the Sunday liquor issue now decided, MADA anticipates the efforts to open dealers up will disappear for the foreseeable future.
Bill to Double Doc Fee Introduced
Legislation to increase the document fee dealers may charge consumers to compensate for regulatory compliance work required during a vehicle sale has been introduced in the House and Senate. House Tax Chair Greg Davids (R-Preston) and Senator John Jasinski (R-Faribault) have agreed to author this legislation on behalf of MADA that will raise the maximum fee allowed from $75 to $150.
With more information about carbon emissions and more electric vehicle (EV) models in the marketplace, EV driver enthusiasm and media attention are gaining more traction. Xcel Energy, as the largest provider of electricity in Minnesota, has analyzed the potential impact of EVs on the state’s electric grid and is confident it is equipped to provide clean, affordable, and reliable electricity to customers interested in owning EVs.
For these reasons, Xcel Energy is focused on providing public education and rate programs that enable customers with electric pricing options to accommodate EV drivers with cheaper rates in the evenings. We hope to connect more with auto dealers in the future to collaborate on making the EV buying experience as helpful as possible. If you have customers with questions about how to charge their EV and take advantage of off-peak pricing, please do not hesitate to reach out to representatives of Xcel Energy at www.xcelenergy.com/EV.
Article contributed by Eric Van Orden, Xcel Energy
Although the SPCC did not have a booth at the 2017 Auto Show, its presence was known. Eight-foot tall miter boards proudly proclaimed that “No one knows your vehicle like your neighborhood new car dealer.” A QR code embedded on the poster linked attendees to the SPCC “find a dealer service center”
Kudos to SPCC members Dave Meling and Vang Yang of Inver Grove Hyundai who testified before the House Commerce Committee in favor of MADA’s bill to increase warranty reimbursement. They were accurate, genuine - and to the point - and did a good job of highlighting how the factories are shortchanging dealerships on warranty parts and service and making it difficult to serve customers. Their remarks made a positive impression on the committee members, who voted unanimously in support of the bill.
SPCC At The Auto Show
SPCC Members Testify at the Capitol
Dakota County Technical College will host the 50th Anniversary SkillsUSA automotive technology and collision repair competitions on Saturday, April 1. To celebrate the 50th anniversary achievement of SkillsUSA in Minnesota, unique additions such as the Automotive Showcase and Career Fair will coincide with the traditional competition to raise awareness of SkillsUSA and highlight the automotive industry to high school educators, communities, and prospective automotive students.
Both the Automotive Showcase and Career Fair will give industry partners, current students, and prospective students a chance to network with each other and find potential employment opportunities. With such a large undertaking, Dakota County Technical College is asking for support and participation from industry partners to ensure the success of the event.
For more information on how to participate in the event, please visit https://goo.gl/I1ZxCG
Skills USA Contests
Service, Parts & Collision Council
Factory-trained technicians who repair hundreds of
vehicles like yours. Quality repair with
competitive pricing.
NOBODY KNOWS YOUR CAR BETTER THAN YOUR DEALER
Service, Parts & Collision CouncilA Clear Voice for Dealership Service, Parts & Collision
A Federal Court in Michigan approved the second wave of settlements in class actions dealing with bid-rigging and price-fixing of component parts of automobiles.
Dealerships in 29 states - including Minnesota - are eligible to share approximately $125 million of new money available for distribution to auto dealers in various settlement classes.
The official website for the lawsuit is www.autodealersettlement.com. Claims must be submitted by April 28, 2017.
For dealers who don’t want to go through all the work to file a claim on their own, MADA has partnered with Class Action Capital - one of the nation’s leading class action settlement management companies - to offer dealers a streamlined claims process. Class Action Capital is already working with a large number of auto dealers across the country to recover potentially large refunds on their behalf arising from the first wave of auto parts manufacturer class action settlements.
Legal News
Minnesota Dealers Eligible to Participate in Antitrust Settlement
With the wave of Republican control in Washington D.C. comes a host of new proposals and ideas, most aimed at creating business and job-friendly policies. However, a relatively new idea has some manufacturers and dealers panicked. The Border Adjustment Tax - or BAT tax - is being promoted by the House Republican-controlled Ways and Means Committee. In a nutshell, the proposal would create an onerous tax on imported goods, including cars and car parts.
Republican economists claim, in theory, the resulting shift in the targeted country’s currency exchange would ultimately equalize any harm in the product’s price. But, it’s a big risk. Both of the national dealer organizations, NADA and AIADA, have come out strongly opposed to the idea along with most of the business community. Congressional Republicans intend to take up tax reform later this year and lobbying efforts on this issue are intense.
Congressional News
BAT Tax Under Scrutiny
After weeks of training and sitting for multiple state exams, MADA is proud to announce that MADA Director of Finance and Insurance Sarah (Sam) Woitalla has passed her exams and is now a fully-licensed insurance agent. Effective immediately, Sarah is licensed to sell Accident and Health, Casualty, Life and Property insurance. Congrats, Sarah, on this accomplishment!
MADA News
MADA Announces Accredited Insurance Agent on Staff
Minnesota Auto OutlookCovering the Minnesota automotive market Data thru January 2017
Released by:Minnesota AutomobileDealers Association
Data InformationAll data represents new vehicle retail registrations in Minnesota and excludes fleet and wholesale transactions. Please keep in mind that monthly registration figures can occasionally be subject to fluctuations, resulting in over or under estimation of actual results. This usually occurs due to processing delays by governmental agencies. For this reason, the year-to-date figures will typically be more reflective of market results. Data Source: IHS Markit.
Percent Change in Three Month Moving Average of New Retail Registrations versus Same Period Year Earlier
The graph above provides a clear picture of the trending direction of the state market. It shows the year-over-year percent change in the three month moving average of new retail light vehicle registrations. The three month moving average is less erratic than monthly registrations, which can fluctuate due to such factors as the timing of manufacturer incentive programs, weather and title processing delays by governmental agencies.*Figures for January 2017 were estimated by Auto Outlook. Data Source: IHS Markit.
Percent Change in State and U.S. New Retail Light Vehicle Markets
2016 vs. 2015
Brands included above: Domestic Brands: GM (Buick, Cadillac, Chevrolet, and GMC), Ford (Ford and Lincoln), Chrysler (Chrysler, Dodge, Jeep, and Ram). Japanese: Toyota (Toyota, Lexus, and Scion), Honda (Honda and Acura), Nissan (Nissan and Infiniti), Other (Mazda, Mitsubishi, and Subaru). European: VW (Audi, Bentley, Porsche, and Volkswagen), BMW (BMW, Rolls Royce, and MINI), MB (Mercedes Benz and smart), Other (Alfa Romeo, Aston Martin, Ferrari, Fiat, Jaguar, Land Rover, Lotus, Maserati, and Volvo). Korean: Hyundai and Kia.*Figures for January 2017 were estimated by Auto Outlook. Data Source: IHS Markit.
The graph above compares the change in new retail car and light truck registrations in both the state and U.S. markets. Data Source: IHS Markit.
March 2017 / Page 6
MinnesotaNew Retail Light Vehicle Registrations
Registrations Market share
2015
Annual
2016
Annual % change
2015
Annual
2016
Annual
TOTAL 210,594 217,018 3%
Acura 1,435 1,224 -15% 0.7% 0.6%
Audi 1,659 1,846 11% 0.8% 0.9%
BMW 2,443 2,642 8% 1.2% 1.2%
Buick 3,909 4,145 6% 1.9% 1.9%
Cadillac 1,327 1,287 -3% 0.6% 0.6%
Chevrolet 34,202 34,963 2% 16.2% 16.1%
Chrysler 3,758 3,630 -3% 1.8% 1.7%
Dodge 5,471 5,339 -2% 2.6% 2.5%
FIAT 227 207 -9% 0.1% 0.1%
Ford 36,669 35,676 -3% 17.4% 16.4%
GMC 8,777 9,080 3% 4.2% 4.2%
Honda 17,442 18,494 6% 8.3% 8.5%
Hyundai 5,729 5,011 -13% 2.7% 2.3%
Infiniti 769 757 -2% 0.4% 0.3%
Jaguar 63 157 149% 0.0% 0.1%
Jeep 9,729 11,349 17% 4.6% 5.2%
Kia 6,897 7,120 3% 3.3% 3.3%
Land Rover 535 479 -10% 0.3% 0.2%
Lexus 2,535 2,544 0% 1.2% 1.2%
Lincoln 1,096 1,217 11% 0.5% 0.6%
Mazda 4,476 4,793 7% 2.1% 2.2%
Mercedes 2,052 2,193 7% 1.0% 1.0%
MINI 469 476 1% 0.2% 0.2%
Mitsubishi 1,876 2,153 15% 0.9% 1.0%
Nissan 10,308 10,052 -2% 4.9% 4.6%
Other 185 192 4% 0.1% 0.1%
Porsche 283 321 13% 0.1% 0.1%
Ram 7,857 8,710 11% 3.7% 4.0%
Subaru 10,294 11,278 10% 4.9% 5.2%
Tesla 193 420 118% 0.1% 0.2%
Toyota 23,135 24,490 6% 11.0% 11.3%
Volkswagen 4,034 3,819 -5% 1.9% 1.8%
Volvo 760 954 26% 0.4% 0.4%
0.0 5.0 10.0 15.0 20.0
Volkswagen
Buick
Mazda
Hyundai
Dodge
Kia
Ram
GMC
Nissan
Jeep
Subaru
Honda
Toyota
Chevrolet
Ford
1.9
1.9
2.1
2.7
2.6
3.3
3.7
4.2
4.9
4.6
4.9
8.3
11.0
16.2
17.4
1.8
1.9
2.2
2.3
2.5
3.3
4.0
4.2
4.6
5.2
5.2
8.5
11.3
16.1
16.4
Market Share
2016Annual
2015Annual
Minnesota Auto Outlook Data thru January 2017
This report is sponsored by the Minnesota Automobile Dealers Association and produced by Auto Outlook (800-206-0102).
Auto Outlook, Inc. is not responsible for management decisions based on the content of Minnesota Auto Outlook. Copyright Auto Outlook, February 2017.
Reproduction, including photocopying of this publication in whole or in part, is prohibited without the express permission of Auto Outlook, Inc. Any material quoted must be attributed to Minnesota Auto Outlook, pub-lished by Auto Outlook, Inc. on behalf of the Minnesota Automobile Deal-ers Association and must also include the statement: “Data Source: IHS Markit.”
State Market Share for Top 15 Selling Brands 2016 vs. 2015
Top ten ranked brands in each percent change category are shaded green.
Data Source: IHS Markit.
Data Source: IHS Markit.
March 2017 / Page 7
Endorsed Service & Vendors
MADA Services sells a wide variety of products directly to the dealers including business forms, clothing and promotional items. For a full review of options, contact your sales representative at 651-291-2400 or go to www.mada.org
Member News Borton Volvo celebrated 60 years in business and the Grand Opening of their new building on March 16. Congratulations Kjell Bergh!
The NADA Convention Magazine featured Tenvoorde Ford under Century Award Dealers. To read the full article: https://www.nada.org/CenturyHistory/
Sears Imported Autos made a substantial investment to add sales and service for Mercedes Metris vans, Sprinter cargo vans, and RVs. To accommodate additional lines they remodeled their facilities. Congratulations Don Davidson!
Directory Errors/Updates Corrections: MADA apologizes for incorrectly listing Michael Stanzak’s dealeship on page 55 of the 2017 Yearbook and Buyers Guide Directory. Michael is with Edina’s Key Cadillac.
MADA also misidentified first-term Senator John Jasinksi (R-Faribault) on page 2 of the February MADA News. As the former Mayor of Faribault, he is a champion of the community’s local businesses and proudly features a picture of Harry Brown’s Family Automotive in his Senate office.
FAQQ: We have a vehicle that we purchased that had an expired Minnesota registration. When we sold it a couple of months later, we prorated the registration tax for the new customer. My Deputy Registrar is telling me that this is wrong. Is this true?
A: Your Deputy is correctly describing current Driver & Vehicle Services policy. The law allows prorated registration for a new customer only if the registration lapses while the vehicle is held by a dealer. If the plates expire before you buy the car, this treatment does not apply. Instead the general rule requiring “continuous” registration applies and transfer will be withheld until the old registration is caught up. DVS has only recently started to rigorously apply this policy.
