June 12, 2012

TITLE SPONSOR OF THE
2012 CHARITY PREVIEW PARTY

IN THIS ISSUE

a DEALER NEWS & INFORMATION

Auto Industry News at a Glance

 

a SPECIAL ANNOUNCEMENTS

NEXT WEEK: Factory Relations Seminar: Strategies for Difficult Issues

 

REGULATORY & LEGAL UPDATES

2010 Census Results in Changes to Your Dealership’s Area of Responsibility Which May be Harmful

FTC Announces Enforcement Action Against Dealer For Alleged Data Security Violations

 

LEGISLATIVE UPDATE

CACI 2012 Legislative Session: Key Wins for Business

CADA Bill Tracker

 

UPCOMING SEMINARS

NEXT WEEK: Factory Relations Seminar: Strategies for Difficult Issues

Unclaimed Property Workshops
KPA Weekly Webinar

Upcoming Seminars


CALENDAR OF EVENTS

CADA Annual Member Golf Event

Upcoming Events


DEALER MILESTONES,
HIGHLIGHTS & TRANSITIONS

Mark Elliott Murray Passes Away

Share Your Accomplishmens

 

THE AFTERFACT

All the News That's Fit to Email!


ARCHIVES

CLICK HERE for Open Road
e-newsletter archives.

CLICK HERE for an Index of Regulatory
& Legal Articles
from the Open
Road e-newsletter.

CLICK HERE for Bulletin archives.

CLICK HERE for Colorado Auto
Outlook
archives.

CLICK HERE for Denver Auto
Outlook
archives.


ONLINE REGISTRATION

CLICK HERE to register online
for various CADA seminars & events.


MEMBERSHIP RESOURCES

CLICK HERE for details on the
Speaker and Educational
Resources
.

CLICK HERE for a list of current
Endorsed Vendors/Programs
.

CLICK HERE for a list of current
Allied Members
.

CLICK HERE for an order form for
CADA forms
.

CLICK HERE for information on all member services.



www.nada.org


www.aiada.org

CLICK HERE for NADA
Regulatory Affairs information
.


STATE GOVERNMENT RESOURCES

CLICK HERE for the Auto Industry
Division
of the Colorado Dept.
of Revenue.

CLICK HERE for the Title and
Registration section
of the
Colorado Dept. of Revenue,
Motor Vehicles Division.

CLICK HERE for the Colorado
Department of Labor &
Employment
website.




Visit us at www.coloradodealers.org.


CADA Hours of Operation
Monday to Thursday, 7 a.m. to 5 p.m.
Friday, 7 a.m. to 4 p.m.

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CADA STAFF

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If you have questions
or suggestions
regarding this
e-newsletter, please
contact Lauren Stadler at
lauren.stadler@coloradodealers.org

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added or removed from our list.


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ENDORSED VENDOR/PROGRAMS

CLICK HERE for information about the
Endorsed Programs
.

Contact Polly Penna at CADA to request more information on any of the programs below: polly.penna@coloradodealers.org

Choosing a CADA endorsed provider supports our work for the Colorado retail vehicle industry.
________

www.afadvantage.com

Supplemental Employee Benefits
________

www.federatedinsurance.com

General Liability
________

www.incom-direct.com

Merchant Transaction Processing
________

http://www.kpaonline.com/

HR Management & Online Compliance

Environmental / Health & Safety Compliance
________

www.lbtelecom.net

Telecommunications
________

www.business.officedepot.com  

Office Supplies
________

www.reyrey.com/solutions/document
_solutions

Document Solutions / Forms
________

www.siegeloil.com

Oil, Lubricants, Service Chemicals & Reconditioning Products
________

www.unifirst.com

Uniforms / Standard Workwear
________


www.pinnacol.com

Workers Compensation


 

 


If this e-newsletter does not display correctly,
CLICK HERE
to access the web-based version.


CADA Open Road is now beginning its sixth year of service, providing uninterrupted weekly news and information for Colorado automotive professionals to better compete in our industry, since January 3, 2007.


a


 AUTO INDUSTRY NEWS AT A GLANCE

Listed here are several articles pertaining to the
auto industry in general that appeared recently in newspapers and other media outlets across the nation.



…more news articles are included at the end of this issue.



* * * IMPORTANT * * *
FACTORY RELATIONS:
STRATEGIES FOR DIFFICULT ISSUES

     Seminars in Colorado Springs, Denver & Loveland                     will cover the following topics:

  • Sales Effectiveness Calculations
  • Current manufacturer issues including facility upgrade and image requirements
  • Dealer protection – Statutory and Common Law
  • Dealer responses to Factory Demands
  • ROI Calculations
  • Allocation Issues
  • Factory Pressure
  • NADA Mercer Study
  • APR Issues
  • Metro vs Rural Market

CLICK HERE for a registration form.

Event Description
Date/Time
Location

Factory Relations: Strategies for Difficult Issues

Colorado Springs

Wednesday, June 20
8:00am-11:00am


Citizens Service Center
1675 West Garden of the Gods Rd
Academy Conference Room (2nd Floor) Colorado Springs, CO 80907

Colorado Springs dealers should contact Ann Winslow, with CSADA for registration. 719-473-1465

Factory Relations: Strategies for Difficult Issues

Denver

Wednesday, June 20
12:30pm-3:30pm


William D. Barrow Building
CADA Headquarters
290 Media Center
290 East Speer Blvd, Denver, 80203
Phone: 303.831.1722

Factory Relations: Strategies for Difficult Issues

Loveland

Thursday, June 21
8:30am-11:30am


Embassy Suites Loveland Hotel, Spa & Conference Center
4705 Clydesdale Pkwy
Loveland, CO 80538

Michael Dommermuth, McGloin, Davenport, Severson & Snow, P.C.a
An attorney who specializes in representation of motor vehicle dealers, Michael is a member of National Association of Dealer Counsel, a national organization of attorneys who represent dealers.  Michael earned a bachelor’s degree from Purdue University in 1980 and Juris Doctorate from Indiana University at Bloomington in 1983.  Michael has 26 years of experience representing dealers throughout Colorado and the Rocky Mountain West.  Michael’s firm provides full service representation of motor vehicle dealers including, buy/sell agreements,  litigation, finance, franchise, manufacturer disputes, bankruptcy, dealer succession, class actions and federal and state compliance.  Michael has successfully defended dealers in class actions challenging D&H and for damages under the telephone consumer protection act.

Mr. Joseph Roesner, President, The Fontana Group
Economic Consulting & Litigation Supporta
Mr. Roesner received his Masters of Business Administration degree with a concentration in Finance from the University of Arizona. Since joining the Fontana Group in 1990, Mr. Roesner has conducted or participated in hundreds of research and consulting projects primarily related to the automobile industry. He has directed numerous market representation studies assessing the need for and impact of changes to a manufacturer's dealer network. He has also conducted analyses relating to the retail dealer performance in the retail automobile industry, the heavy truck industry, and the motor sports industry. Mr. Roesner is a Certified Management Accountant, and a longtime member of the Institute of Management Accountants, the American Economic Association, and the American Marketing Association. He has provided expert testimony in numerous venues throughout the United States, including testimony before mediation boards, binding arbitration panels, administrative law judges, administrative boards, and in State and Federal courts.



2010 CENSUS RESULTS IN CHANGES TO YOUR DEALERSHIP'S AREA OF RESPONSIBILITY WHICH MAY BY HARMFUL
By:  Richard Sox, Esq.

The 2010 census data has made its way through the manufacturer’s computer systems and has resulted in changes to many dealerships’ areas of responsibility.  It is strongly recommended that dealers compare their old territory to the newly proposed territory while asking the question “where are the residents of this census tract most likely to shop for a new vehicle and take their vehicle for service?”   

We have seen over the years a number of situations where a dealer is assigned a census tract that may be closest to the dealership by air miles but a mountain or river stands between the census tract and the dealership.  In addition to natural barriers, erroneous assignments of territory also result from a failure by the manufacturer to appreciate the shopping patterns of a dealer’s market.   . . .

An expansion or reduction in the size of your market area has an impact on a number of your dealership’s performance measurements.   . . .

If a dealer finds that certain census tracts being added to the dealership’s territory should be in another dealership’s area of responsibility or finds that census tracts being removed should remain in their area of responsibility, we strongly recommend that the dealership communicate this to their manufacturer explaining in as much detail as possible the practical reasons supporting the contention that the census tract(s) is being improperly assigned.

CLICK HERE for the full article.

Richard Sox, a partner with Bass Sox Mercer law firm, is a nationally-recognized attorney who works with dealers in Colorado and throughout the United States on dealer franchise matters.  Mr. Sox has worked closely with the Colorado Automobile Dealers Association over the past several years in drafting and obtaining passage of franchise legislation to protect dealers.  Mr. Sox may be contacted at rsox@dealerlawyer.com, 850.878.6404.  

The foregoing information is provided for educational purposes only and is not to be construed or interpreted as legal advice

* * * * * * * *

FTC ANNOUNCES ENFORCEMENT ACTION AGAINST DEALER FOR ALLEGED DATA SECURITY VIOLATIONS
The Action Focuses on Customer Information Made Available on P2P Networks

The FTC has announced an enforcement action against, and a proposed settlement agreement with, a franchised dealer for allegedly (i) violating the FTC Privacy Rule, (ii) violating the FTC Safeguards Rule and (iii) engaging in an unfair or deceptive act or practice (UDAP). The enforcement action alleges that, as a result of the dealership’s failure to implement reasonable security measures to protect its customers' personal information (including names, addresses, social security numbers, dates of birth, and driver’s license numbers), the personal information of 95,000 consumers was made available on a peer-to-peer (P2P) network. P2P file-sharing software can present significant data security risks, due in part to the fact that once a file has been shared to a P2P network, it may be viewed or downloaded by any computer user with access to the network, and it generally cannot be permanently removed from the network. In addition to the data security violations, the FTC alleged that the dealership engaged in a UDAP violation by misrepresenting in its privacy notice the measures it takes to protect customer information from unauthorized access. The proposed consent order between the parties contains, among other elements, a requirement that the dealership undergo data security audits by independent auditors every other year for 20 years.

In conjunction with its announcement, the FTC posted a blog on the topic of P2P file sharing software. It is essential that dealers (i) review this information; (ii) consider threats that may arise from P2P software when assessing the adequacy of their current customer information safeguards and then adjust their customer information security program accordingly; and (iii) ensure that the representations in their privacy notices are consistent with their customer information security practices. In addition, it is essential that dealers protect customer information against this threat regardless of where it arises in the dealership (even in non-finance and non-lease transactions that may not be covered by the FTC Privacy or FTC Safeguards Rules). In a related FTC enforcement action against a debt collector, the FTC used its UDAP enforcement authority (and not its authority under the FTC Privacy or Safeguard Rules) to address the company’s exposure of hospital patient information that allegedly resulted from the installation of P2P file sharing software on the company’s computer system.

The FTC announcement states that this is the agency’s first action charging an auto dealer with violations of the Gramm Leach Bliley Act (which the FTC Privacy and Safeguards Rules implement).

Source:  NADA 60-Second Email, June 8, 2012

* * * * * * * *

If you have questions on any legal or regulatory topic, please contact:

DISCLAIMER: CADA is not authorized to dispense legal advice.The information contained in this weekly email is intended to provide important updates and reminders regarding statutes, litigation, and regulations. CADA always advises that dealers should consult legal counsel on the specifics of any laws or regulations to ensure proper compliance



CACI 2012 LEGISLATIVE SESSION: KEY WINS FOR BUSINESS

CADA is an active member of the Colorado Association of Commerce and Industry (CACI), a business association that works at the Colorado State Capitol to improve the business climate for all sizes of business from a statewide, multi-industry perspective. 

CLICK HERE for the CACI 2012 Legislative Summary covering general business issues.

* * * * * * * *

CADA BILL TRACKER

Follow the Colorado Auto Dealers Bill Tracker HERE!


a
KPA WEEKLY WEBINAR: 
Covers an Environment & Safety or an HR topic each week

Every Thursday
 
10:00-11:00am (MST)

CLICK HERE for upcoming topics and to register!

Previously recorded webinars are also available at the above link.

aa

* * * * * * * *

aTO REGISTER ONLINE FOR ANY CADA
SEMINAR OR EVENT, PLEASE VISIT:

www.coloradodealers.org/registration
Event Description
Date/Time
Location

Factory Relations: Strategies for Difficult Issues

Colorado Springs

Wednesday, June 20
8:00am-11:00am


Citizens Service Center
1675 West Garden of the Gods Rd
Academy Conference Room (2nd Floor) Colorado Springs, CO 80907

Colorado Springs dealers should contact Ann Winslow, with CSADA for registration. 719-473-1465

Factory Relations: Strategies for Difficult Issues

Denver

Wednesday, June 20
12:30pm-3:30pm


William D. Barrow Building
CADA Headquarters
290 Media Center
290 East Speer Blvd, Denver, 80203
Phone: 303.831.1722

Factory Relations: Strategies for Difficult Issues

Loveland

Thursday, June 21
8:30am-11:30am


Embassy Suites Loveland Hotel, Spa & Conference Center
4705 Clydesdale Pkwy
Loveland, CO 80538

Unclaimed Property Workshops

By CO Department of Treasury

Various dates and times in June


CLICK for listing.

RSVP:  Call (303) 866-6039 or email shannon.smith@state.co.us

KPA Weekly Webinar

Covers an Environment & Safety or an HR topic each week


Every Thursday  

10:00-11:00am (MST)


CLICK HERE for upcoming topics and to register!

Previously recorded webinars are also available at the above link.

If you have a particular area of interest or would like to suggest a training seminar topic, please contact Lauren Stadler at 303.457.5123 or lauren.stadler@coloradodealers.org


a

Event Description
Date/Time
Location

CADA Annual Member Golf Event



Monday, September 17, 2012

 

Colorado Golf Club
8000 Preservation Trail
Parker, CO  80134

*More Details Coming Soon*




LET US KNOW ABOUT YOUR ACCOMPLISHMENTS!

Have you or anyone else at your dealership won an award recently? Have you or your dealership provided any outstanding community service? We want to recognize such accomplishments. Please send us a brief write-up of the award or event along with any other information to milestones@coloradodealers.org. Also include your contact information for further follow-up.


THE AFTERFACT

  • Romney vows quick U.S. exit from GM
    The Detroit News, June 5
    Republican Mitt Romney believes President Barack Obama is holding on to the government's stake in General Motors to avoid an embarrassing financial loss before the election, and says he'd sell the stock quickly if he wins the White House.
  • Why Missed Forecast for May Car Sales Is No Cause for Alarm
    Forbes, June 4
    May car sales came in lower than analysts’ forecasts, prompting concern that the economy was sputtering — again — and were taking car sales with it after strong car sales had been leading the economy. Is it cause for alarm? We don’t think so — just yet.
  • The most traffic-jammed cities in America
    MSNBC, June 5
    The good news for commuters is that traffic congestion in the U.S. decreased by an average of 30 percent last year, according to the annual National Traffic Scorecard conducted by traffic and navigation service provider INRIX in Kirkland, Wash.

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Colorado Automobile Dealers Association
290 East Speer Boulevard Denver, CO 80203
Telephone: 303.831.1722 | Facsimile: 303.831.4205
www.coloradodealers.org