April 9, 2013



Online Automotive Platform Sponsor

TITLE SPONSOR OF THE
2013 CHARITY PREVIEW PARTY

IN THIS ISSUE

a SPECIAL ANNOUNCEMENT

NADA's 2013 Dealership Workforce Study In-Progress

 

a DEALER NEWS & INFORMATION

Auto Industry News at a Glance

 

REGULATORY & LEGAL UPDATES

The Vexing Problem of Erroneous Vehicle History Reports

Information on Potential Mass Action Lawsuit Against Carfax

 

LEGISLATIVE UPDATE

CADA Bill Tracker

 

UPCOMING SEMINARS

KPA Weekly Webinar

Upcoming Seminars


CALENDAR OF EVENTS

19th Annual Damon Runyon Award Banquet

Upcoming Events


DEALER MILESTONES,
HIGHLIGHTS & TRANSITIONS

Innovative Dealer Sponsors and Exhibitors
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.


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

CLICK HERE for a CADA staff listing


If you have questions
or suggestions
regarding this
e-newsletter, please
contact Marsha Temple at
marsha.temple@coloradodealers.org

CLICK HERE or scroll to the bottom
of this page if you want to be
added or removed from our list.


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ENDORSED PROVIDER/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.americanexpress.com

a Corporate Card - Rewards Program
________



www.bradfordpublishing.com

Dealer Retail Installment Sales Contract (“Rocky Mountain Bank Note”)
________

www.federatedinsurance.com

a 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
________

https://www.nadart.org/

Retirement plan management
________

www.business.officedepot.com  

Office Supplies
________

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.


NADA'S 2013 DEALERSHIP WORKFORCE STUDY IN-PROGRESS
www.NADAworkforcestudy.com

Deadline is Tuesday, April 30th!

Curious to know how your dealership’scompensation and benefits package stacks up? Ever stop to analyze your retention and turnover rates as a tool to recruit and retain top talent? That analysis can helpguide development of innovative pay plans, benefits, and business structure adjustments.

NADA’s 2013 Dealership Workforce Study isn’t the compensation study of yesteryear.  This robust initiative collects data from dealerships across the United States and provides extensive comparative data on dealership position pay averages, hours of operation trends, retention and turnover percentages, as well as health and retirement benefits.

There is no cost to participate! Car and truck dealerships that participate are eligible to receive:     

  • Basic Report – a custom report that presents your dealership’s compensation, benefits, and retention averages compared to the national and regional industry—COMPLIMENTARY!
  • Enhanced Report – a premium custom report that presents your dealership’s compensation, benefits, and retention averages compared to your franchise and local market
  • Industry Report – a comprehensive report with critical economic factors and analysis—COMPLIMENTARY!

It’s easy!
1.      Go to www.NADAworkforcestudy.com
2.      Enroll using your NADA/ATD Member ID
3.      Complete a simple online survey
4.      Upload your payroll data file securely to our secure site

New for 2013: Dealer Group participation has been simplified and streamlined. Enroll one store and submit survey and payroll data for all dealerships within your group. Instructions are provided on the Workforce Study website.

Finally, this study will provide CADA with vital data and trends to better enable us to impact industry issues on your behalf.

Go to www.NADAworkforcestudy.com to get started. The DEADLINE is Tuesday, April 30!

Questions? Call CADA at 303.831.1722 or call NADA Customer Service at 800.557.6232.


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.




THE VEXING PROBLEM OF ERRONEOUS VEHICLE HISTORY REPORTS
By Kieran A. Lasater, Esq, Fairfield and Woods, P.C.

I.  INTRODUCTION

With the rise in popularity of Vehicle History Reports (“VHRs”) in used car transactions, consumers have been programmed to demand one.  Carfax’s Car Fox advertisements are a staple of TV and radio advertising.  Experian also enjoys a large segment of the VHR market, which until recently was dominated almost exclusively by Carfax.  However, many times the VHRs offered by Carfax, Experian or the other companies in the industry are false and lead to serious problems for dealers.

By way of one example only, on January 6, 2013, the industry’s largest player Carfax began reporting “Total Loss” vehicle history designations on its VHRs for numerous vehicles which were, in fact, never “totaled” by an insurance company and which have clean titles.  Instead, the vehicles were subject to various types of minor repairs, such as minor panel sprays or bumper repairs.  For this, and without any additional apparent justification, Carfax unilaterally reported the vehicles as “Total Losses” on their VHRs.  Naturally, auto dealers and individuals alike are up in arms because the practical result of these inaccurate and misleading VHRs is the immediate and drastic reduction in value of the affected vehicles.
. . .

V.     POTENTIAL POLICY CHANGES TO CORRECT PROBLEM
Why Carfax took it upon itself to implement this new Total Loss designation change is unclear.  What is clear is that the designations are many times demonstrably inaccurate, misleading, and could be the basis of civil liability for Carfax.  Moreover, they do great harm to the relationship between dealers and Carfax, unnecessarily.

Carfax should immediately retract the recent Total Loss designations made since January 6, 2013, which are not based on an actual insurance determination.  A true Total Loss determination by an insurance company would necessarily result in a “salvage” or similar title brand.  Vehicles with a clean title should not be designated a Total Loss by Carfax.  Carfax should also work with its consumers and dealers to make amends for, and pay compensation to, affected dealers and individuals for damages caused by this new policy in order to preserve its goodwill and market strength.

If Carfax has some legitimate reason for refusing to immediately retract the policy and correct the VHRs automatically, it should create a specific hotline for affected dealers and consumers to contact Carfax and rebut the Total Loss designation.  Additionally, an expedited process should be instituted to minimize the amount of time it takes to correct the false VHRs.

Representatives of local automobile dealers associations and members of the National Association of Dealers Counsel (“NADC,” of which the author is also a member have been in contact with Carfax on behalf of their dealer members seeking relief from the policy.  Recently, on January 10, 2013, in response to one such discussion, Steve Blumenthal, who is the General Counsel for Carfax, provided the following in an email:

…. While Carfax is confident that the [Total Loss] data is accurate, Carfax appreciates the concerns raised by its dealer customers.  Carfax pulled the data off its [VHRs] earlier today and is launching a process to determine ways to present the data that would better enable consumers and dealers to understand the context of the data and to weigh its importance.  We will also communicate with our dealer customers before publishing the data….

According to the email from Mr. Blumenthal, the erroneous data has been removed from the VHRs as of January 10, 2013.  The Total Loss designations began appearing on January 6, 2013, and, therefore, numerous transactions could have been affected during this five-day period, if, in fact, the erroneous Total Loss designations were completely retracted on January 10, 2013.

Moreover, it appears that the data will eventually be re-released, however, potentially in another form.  What form that proves to be may well impact Carfax’s potential future liability for the Total Loss designations.  The issue of inaccurate or over exaggerated VHRs goes beyond Carfax, of course, and Experian and the other market participants who tout the comprehensive and accurate nature of their VHRs are equally susceptible to such potential suits. 

This Article is published for general information, not to provide specific legal advice. The application of any matter discussed in this article to anyone's particular situation requires knowledge and analysis of the specific facts involved.

CLICK HERE for the full article (originally printed in the National Association of Dealer Counsel newsletter, Defender, March 2013).  

* * * * * * * *

INFORMATION ON POTENTIAL MASS ACTION LAWSUIT AGAINST CARFAX

Related to the above issues, another dealer law firm has proposed a lawsuit against Carfax.  Bellavia Blatt Andron & Crossett, PC is seeking dealers nationwide for participation in a lawsuit they summarize as follows:

Dealers complain to us that CarFax has a stranglehold over the automobile industry and engages in class monopolistic type behavior such as charging exorbitant fees, exclusionary business conduct, disparaging dealers in its advertising, bundling or tying its services ....  It is our view that no vendor should dictate terms or otherwise force dealers to do business with them while using the excessive revenue generated from anticompetitive practices to disparage dealers in marketing to consumers.

Dealers interested in learning more about this lawsuit can CLICK HERE for more information. 

Provided for information purposes only.  CADA does not take an official position on the merits or likely outcomes of specific lawsuits.

* * * * * * * *

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

Tammi McCoy, VP, tammi.mccoy@coloradodealers.org, 303.282.1449

Tim Jackson, President, tim.jackson@coloradodealers.org, 303.282.1448

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

* * * * * * * *



CADA BILL TRACKER


Follow the Colorado Auto Dealers Bill Tracker HERE!



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

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 Marsha Temple at 303.457.5123 or marsha.temple@coloradodealers.org


19th Annual Damon Runyon Award Banquet

Friday, April 12, 2013
Time:
Silent auction 6-7:30 p.m.
Doors open 6:20 p.m.
Dinner 7 p.m.
Program 7:55 p.m.

Event Venue
Marriott City Center
1701 California Street

Register Online!

* * *

The Denver Press Club presents its premier event of the year, the 19th Annual Damon Runyon Award Banquet. Our honoree and guest speaker is Mike Lupica, sportswriter and cityside columnist for the New York Daily News, broadcaster, radio host and book author.

Tickets are $90 for members of the Denver Press Club, Denver Woman's Press Club, Colorado Press Women, the Colorado chapter of the Society of Professional Journalists, the Colorado chapter of the Public Relations Society of America and the Colorado Association of Black Journalists. For the general public, tickets are $110 each.
This event is open to everyone. In addition, DPC offers a $25 ticket to attend the VIP reception at the club, which goes from 5-6 p.m.

MANDATORY RESERVATIONS



Event Description
Date/Time
Location

19th Annual Damon Runyon Award Banquet





Friday, April 12, 2013
Time:
Silent auction 6-7:30 p.m.
Doors open 6:20 p.m.
Dinner 7 p.m.
Program 7:55 p.m.

 

Marriott City Center
1701 California Street

Register Online!




* * * * * * * *

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.



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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