AUGUST 2020

eNEWS

A MESSAGEFROM THEPRESIDENTWe hope the summermonths find all ourdealer members,vendors, and industrypartners, navigating themost challenging yearour industry has seen in

some time! The association has spent most ofthis year focused on how to help dealers stayafloat operationally, and navigate the necessaryrestrictions that a global pandemic has placed onmost industries. Car Dealers have stepped upand proven to be resourceful entrepreneurs, andfound a way to make the dealership environmenta safe place for customers and employees tocontinue to sell and service new and pre-ownedvehicles.

Although the Los Angeles area new car marketsaw a 25.9% drop in vehicle registrations in thefirst half of the year, the last two months (Mayand June) showed promise with showroomsreopening, and some pent-up demand from Aprilstimulating sales. Auto loans are near historiclows, and though some new car/truck inventoryis low, there are very attractive loan and leasedeals.

The association has had to postpone its annualmeeting luncheon, and has rescheduled forFriday June 18, 2021. The advocacy work thatinvolves meetings with elected officials hasshifted to virtual meetings and online platforms.

The coordinated effort of dealers opposing somestate level legislation that would harm ourindustry has proven to be successful. Keep aneye open for a schedule of future meetings youcan join that run 15-20 minutes, and give you anopportunity to start building a workingrelationship with elected officials who rely ondealers to better understand the challenges weface every day.

In the fall, the association will be hosting virtualcareer information events for aspiring automotivetechnicians who attend our area communitycolleges. The association also continues toassist various automotive industry, and localnon-profit groups who are in need of financialsupport during these trying times. Dealers domake a difference! Now is the time for any non-member dealerships to join the 170 currentdealer members, and support our industry withyour membership. Contact our executivedirector, Bob Smith (213-748-0243),bob@glancda.org) for more information.

We will continue to send out importantinformation, enewsletters, webinar opportunities,and the LA Dealer Magazine. The Auto Outlooksales report, and Courthouse early alert lawsuitfilings against dealerships, are benefits ofmembership you won't want to miss. Togetherwe will weather this and all future storms, and weappreciate the opportunity to work together insupport of our industry!

Best,

David EllisGLANCDA President

THANK YOUPPP loans have delivered for countlessemployees across the nation who were theintended beneficiaries. This bipartisan measuremay go down in history as one of the most cost-effective stimulus measures ever deployed.

By Peter Welch, NADA President and CEO

In early March, fear and panic began grippingAmerica. As the coronavirus quickly spreadacross our country, the stock market plunged,

For dealershipemployees, the PPP keptfood on the table andhelped pay householdbills. It also providedpeace of mind.

The economic benefits of dealership payrollsalso reverberated broadly through our economy,supporting myriad other local businesses and thepeople they serve. The loss of dealershippayrolls during this time would have dramaticallyincreased the severity of the downturn in

and businesses scrambled to figure out how torespond. As schools and businesses closed, theU.S. economy went into a tailspin. In the lastweek of March, new-vehicle sales dropped 59%,and America’s new-car and -truck dealers facedsevere liquidity concerns not seen since theGreat Recession of 2008-09. As a result, manyof our members confronted the dreaded prospectof having to lay off valued employees.

Panics are not uncommon in U.S. history, butthe speed at which the coronavirus pandemicimpacted life in America, and across the globe,was stunning.

Amid these unparalleled events, Congress andthe Administration acted decisively by enacting aseries of broad-based economic stimuluspackages. The centerpiece was the CARES Act,which contained a lifeline for dealershipemployees: the Paycheck Protection Program(PPP).

Different from previous, more diffuse stimulustools, the PPP delivered needed relief to workingmen and women through forgivable loans tobusinesses, contingent on those businessesretaining or rehiring furloughed employees. Mostnew-car and -truck dealers are local, familyowned small businesses that prior to thepandemic employed more than 1.1 millionpeople nationwide in good-paying jobs withopportunities for advancement. The PPP wasnot only a lifesaver, but it also was anextraordinarily successful measure to keep ouremployees at work in the face of plummetingvehicle sales.

Under the PPP, at least 60% of the loanproceeds must be used for payroll expenses—with the rest going to a set of approvedexpenses, including mortgage or rent payments,utility bills, etc. For the typical dealership, this60% threshold will be easy to hit because payrollis historically one of our members’ largestexpense items. In fact, we expect that many, ifnot most, dealerships will use 100% of their PPPloans for payroll. The data is already bearing thisout. We saw dealership employment bounceback dramatically in May, once PPP loans kickedin.

communities across the country.

PPP loans have delivered for countlessemployees across the nation who were theintended beneficiaries. This bipartisan measuremay go down in history as one of the most cost-effective stimulus measures ever deployed. Inour industry, the PPP helped stabilize localbusinesses that are essential to a nationaleconomic recovery. Auto retailing provides morethan 1 million good-paying jobs, accounts for18.8% of all U.S retail sales, and annuallygenerates over $90 billion in much-needed statesales tax.

The pandemic is not over and there are stillsteep hills to climb. But the footing for dealershipemployees, who provide critical infrastructureservices that keep America’s cars and trucks onthe road, has been made more secure by thePPP.

On behalf of tens of thousands of dealershipemployees in thousands of communities acrossAmerica: THANK YOU!

GLENDALE DODGE, CHRYSLER, JEEP (DAVID ELLIS), AND GLANCDASUPPORT VILLA ESPERANZA SERVICESProviding services for children and adults with intellectual/developmental disabilities

(Photo taken Oct. 2019, before COVID-19)Villa Tournament 2019 - GLANCDA Players, Villa

School Teacher and Students

Villa Esperanza Services was awarded a $5,000donation in support of their programs for children,adults and seniors with autism and otherintellectual and developmental disabilities. “We areextremely grateful for the continued investment inour children and adults,” shares Kelly White, Villa’sCEO. “GLANCDA’s support helps change lives forindividuals with special needs. Now more thanever this support is needed for families. We areproud to contribute to Villa,” shares David Ellis,GLANCDA board member and owner of GlendaleDodge Chrysler Jeep.

Villa serves individuals of all ages with more thanthirty different diagnoses. The wide variety ofprograms and services helps over 750 individualsand their families each year in Los Angeles andVentura counties. Since 1961 Villa has been aleader in advocating and advancing services forindividuals with special needs. Villa excels inoffering progressive and innovative approachesand solutions. The ability to forecast and meet thechanging needs of their clients has establishedVilla as a unique service provider, offeringindividualized programs and a continuum of careover the course of a lifetime.

GLANCDA SUPPORTS GLENDALE YOUTH ALLIANCE

The Glendale Youth Alliance (GYA) sincerely appreciatesPresident, David Ellis (Glendale Dodge, Chrysler, Jeep,Ram) and the Greater Los Angeles New Car DealersAssociation (GLANCDA), for their continuous support of ourprograms and the generous donation of $15,000 during thesechallenging times. GYA is a nonprofit organization thatprovides comprehensive employment programs for youthages 14-24.

Since 1993, GYA has made a meaningful impact in the livesof over 10,500 youth by preparing them for the futureworkforce and breaking the cycles of poverty. GYA has over27 years of experience in providing comprehensive servicesand pathways to employment to special populations of youthincluding: at-risk, foster, disabled, parenting, probation andhomeless youth. These groups generally have a harder timeentering the workforce. GYA not only provides employmentopportunities, but also comprehensive services to meet theirpersonal needs. By providing the skills and experienceneeded to remain above poverty levels, we are investing in ahealthy and prosperous future for the youth and ourcommunity. Through participation in our programs, manyyouths have been hired on permanent bases at variousdepartments of the City of Glendale, numerous retail outletsand many other professional organizations. All contributionsto our non-profit organization goes into the mission of helpingyouth in need to reach their highest potential.

Thank you to GLANCDA for believing in GYA and forinvesting in the youth of our community, it is with the help oforganizations such as yours that enables us to make animpact on the lives of youth in need.

With Gratitude, Everyone at Glendale Youth Alliance (GYA)

Greater Los Angeles New Car DealerAssociation (GLANCDA) PresidentDavid Ellis, Glendale Youth Alliance(GYA) Chair Dr. Armina Gharpetian,Karine Grigoryan,(GYA) Executive

Director of GYA, Bob Smith(GLANCDA) Executive Director

PASADENA CITY COLLEGE AUTOMOTIVE PROGRAM AWARDED $15,000GRANT

The Greater Los AngelesNew Car Dealers Association(GLANCDA) has beensupporting the AutomotiveProgram at Pasadena CityCollege since 2019, andrecently announced arenewed commitment with agrant of $15,000. GLANCDAboard members Peter

Hoffman (Sierra Automotive Group, Monrovia),and Pete Smith (Bob Smith Toyota, LaCrescenta) were instrumental in getting approvalof this award.

The Pasadena City College AutomotiveDepartment, and the PCC Foundation appreciateits partnership with all the Los Angeles area newcar dealers . The impact on PCC and our studentscontinues to be profound and our AutomotiveProgram would not be the same without theirsupport.Kind regards,Dolores I. Ybarra | Development ManagerPasadena City College Foundation

The Automotive Technology Program has beenproviding a quality education to students pursuingcareers in the automotive industry for decades andwas most recently recognized for economic results– receiving a Bronze Star in the Strong WorkforceStar Program. The Star program measures threegoals: a substantial increase in earnings,attainment of a living wage relevant to regionalconditions, and work in a field closely matched tothe student’s field of study. AutomotiveTechnicians graduating from the PCC programhave seen an 83% increase in earnings. To continue graduating highly qualified automotivetechnicians capable of serving a full range ofvehicles, the Automotive Department mustconsistently upgrade equipment, replace tools,and build a substantial outreach program to attractnew students. Support from the new car dealersmakes all this possible.

GLANCDA executive director Bob Smith, withWendy Lucko (PCC Automotive Technology

Instructor) and students

SAVE THE DATES: NADA's 2020 VIRTUAL WASHINGTON CONFERENCESeptember 15, 21 & 22, 2020

As NADA finalizesplans for the 2020WashingtonConference, we wantto keep you in theloop. The structure is

taking shape, and we look forward to engagingour grassroots network virtually. As in prioryears, we will work with ATAEs to build theinvitation list for this event.Day 1: Tuesday, September 15, 1pm-3pm ETNextGen SessionOnce again, we will host a NextGen session thatincludes policy and political briefings as well aspractical advice for engaging on Capitol Hill. Thecore group of NextGens who typically attend thein-person conference will be invited. We have anopportunity to expand the NextGen audience thisyear because of the minimal cost to increase thenumber of attendees. We will coordinate closelywith ATAEs to identify the NextGen attendees.Also, NextGens will be invited to participate inthe other parts of the program.Day 2: Monday, September 21, 1pm-3pm ETPolicy BriefingNADA’s Legislative and Regulatory staffs willpresent key policy updates, and we will providepractical guidance on engaging members ofCongress and staff with virtual meetings. Weplan to invite the core group of dealers andATAEs who typically attend the in-personconference and participate in meetings on theHill. As in the past, we will seek input fromATAEs in building the grassroots teams for thevirtual meetings.

Day 3: Tuesday, September 22, 1pm-3pm ETWashington UpdateThis program will be geared toward engaging abroader audience. Charlie Cook and Amy Walterwill provide a political update, and we plan topromote this portion of the program as a benefitto all NADA PAC contributors. Additionally, weplan to invite a senior official from the ExecutiveBranch and key members of Congress toaddress the conference. Depending on thespeakers, we may promote this content as abenefit to all NADA members.

Other key takeaways:Our virtual grassroots engagement isessential to maintaining long-term,bipartisan relationships in Washington,especially at a time when in-personmeetings are difficult to schedule.We welcome input, especially fromATAEs, about the potential to use thevirtual event to expand dealerengagement.NADA directors and ATAEs will beinvited to attend the entire program, andthe content will be video recorded andmade available for future use.Once the list of invitees is finalized foreach segment of the conference, NADAwill provide a streamlined registrationprocess to match invited attendees to therelevant program segments and sendregular updates to the state teamsregarding registrations.

We will provide more details as we build out theprogram.

DEALER FRAUD AWARENESSAND PREVENTION BESTPRACTICES WITH TODD WOLFAugust 20, 2020 | 10:00am - 11:30am

Join Todd Wolf, Chair of the International

Association of Financial Crimes InvestigatorsAuto Finance Coalition, and Ally SeniorFraud Investigator for a webinar on fraudprevention and best practices for yourdealership. In this webinar, attendees willlearn about Synthetic ID, Straw Buyers, whyStraw Buyers are used and FraudulentDocumentation. Todd will share someredacted case studies and necessary toolsfor your Fraud Tool Box.

REGISTER HERE

HOW SHOULD YOUR BUSINESSHANDLE ANTI-MASK GUESTS?A 5-Step Action Plan

As anincreasingnumber ofbusinessesbegin to requireface coveringsin their facilities-whether as a

result of a local legal mandate or in the interestof public safety - there has been a correspondingincrease in the number of well-publicized reportsof customers and guests reacting in abelligerent, hostile, or even violent manner afterbeing asked to comply with mask rules. Whatshould your business do to minimize thechances of such an incident occurring in yourworkplace, and what should you do if an anti-mask guest disrupts your business? Here is afive-step plan to address this unfortunate part ofour new reality.

Step One: Understand That You ArePermitted To Require Employees AndVisitors To Wear Cloth Face CoveringsOr Masks

While many jurisdictions already require thatbusinesses have their employees and anymembers of the public who enter their facilitieswear masks, you may be wondering whetheryou can require masks if your jurisdiction doesnot have such a mandate in place. The answeris simple. As a private business, you can decidewhether you allow customers or visitors ontoyour property if they are not wearing a mask.This is similar to the '"no shirt, no shoes, noservice'" policy that you commonly see atbusinesses.

The Centers for DiseaseControl and Prevention [CDC)and World Health Organization[WHO] recommend the use offace masks or cloth facecoverings as part of acomprehensive plan to helpslow the spread of COVI D-19. Face masksshould be worn when employees or visitors willinteract with other people. They are not the onlymethod, but they are one of the strategiesrecommended by experts to slow the spread ofCOVI D-19.

CDC guidance provides several exemptionsindicating who should not wear masks: "Clothface coverings should not be placed on youngchildren younger than two years of age, anyonewho has trouble breathing, or is unconscious,incapacitated or otherwise unable to remove thecover without assistance." And although youmay have a policy or be subject to a state orlocal obligation to require facemasks, you mayalso have an obligation to accommodate theindividual if doing so is possible. Taking a fewprecautions as outlined below will allow you torefuse entry to customers without masks.

Step Two: Be Proactive With Your MaskPolicy

Providing notice to customers, visitors, andguests of your mask requirement prior to theirarrival at your business can help reduceconfusion and prevent an uncomfortablesituation. Personal service providers [such asspas and salons] and hospitality businesses[such as hotels and restaurants] should providenotice of your policy when confirmingreservations.

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LA AUTO OUTLOOK[Data Source: AutoCount data from Experian]

Los Angeles Auto Outlook is distributed free of charge to allmembers of Los Angeles New Car Dealers Association. Thepublication is sponsored and supported by GLANCDA.

Los Angeles Auto Outlook is published and edited by AutoOutlook, Inc., an independent automotive market researchfirm. Opinions in Los Angeles Auto Outlook are solely thoseof Auto Outlook, Inc., and are not necessarily shared byGLANCDA.

Click on image to see latestLA Auto Outlook

2019-2020 BOARD MEMBERS:

PRESIDENTDavid EllisGlendale Dodge Chrysler Jeep VICE PRESIDENTHoward TenenbaumKeyes Automotive Group SECRETARY-TREASURERJeanne BrewerGlendale Acura IMMEDIATE PAST PRESIDENTPeter SmithBob Smith Toyota

DIRECTORCheri Fleming Valencia Acura DIRECTORPeter HoffmanSierra Automotive Group

DIRECTORDarryl HolterFelix Chevrolet

DIRECTORTim SmithBob Smith BMW/Mini DIRECTORIan ThomasThomas Acura

DIRECTOREvan Ellis Fiat and Alfa Romeo of Glendale DIRECTORDave FargusonCenter BMW/Acura

DIRECTORFritz HitchcockHitchcock Automotive Group LEGAL COUNSELJoe Berberich

EXECUTIVE DIRECTORBob Smith

About Us...Originally founded in 1907, the Greater Los Angeles New Car Dealers Association provides valuableeducational and philanthropic benefits to the Los Angeles Community. The Association believes thatinvolvement with local charitable organizations makes a positive difference for everyone involved. Who we are... We are factory-franchised dealers who are committed to serving the communities ofGreater Los Angeles County by promoting professionalism within the retail automotive industry. TheAssociation dealer members contribute not only to the economy of Los Angeles County, but also to thewell-being and growth of their individual communities. Who our members are... Our Members are individuals, partnerships, or corporations owning andoperating a franchised motor vehicle dealership engaged in the sales of automobiles or trucks andlicensed by the State of California and located within the Los Angeles County area.

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GLANCDAGreater Los Angeles New Car DealersAssociation700 N Central Avenue, Suite 320Glendale, CA 91203(O) 213.748.0240(F) 916.924.7323bob.smith@glancda.org

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