July 2014 - MADA629).pdf · July 2014 / Page 3 Legislative News Shop Lien Foreclosure Sales...

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Union Organizing Minneapolis Certified Title Minneapolis Title Basics Brainerd Over the past two sessions, MADA attempted passage of legislation to shore up Minnesota’s long-standing franchise law and ensure vehicle manufacturers can not sell direct-to-consumer. Unfortunately, our efforts were met with resistance from legislators who were not only swept up in “Tesla-mania” but also have a lack of understanding about why the motor vehicle dealer franchise law exists in the first place. In an effort to bring legislators up to speed on how the franchise system encourages economic competitiveness, provides customer convenience, and keeps dollars and jobs in local communities, MADA has launched the “Face of the Franchise” campaign. Over the summer and the fall, MADA staff will be meeting with lawmakers and legislative candidates to share the benefits of the franchise system and explain the negative consequences of dismantling it. If you are interested in hosting one of these meetings at your dealership, please let Scott Lambert or Amber Backhaus know, and we will work with you to set something up. MADA’s new initiative provides a local angle to NADA’s “Get the Facts” campaign, which includes advertising, briefings, and studies to combat the misinformation being perpetuated by national media outlets in their coverage of Tesla’s attempts to gain marketshare. More information on the NADA campaign can be found at http:// www.nada.org/getthefacts. News July 2014 inside Streamlined ShopLien MADA Dues Increase TMQDA Nominations Due Scott Lambert, Executive Vice 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 Industry News MADA Launches ‘‘Face of the Franchise” Campaign upcoming events 9 sep 18 sep 6 aug hicle wa Forest Lake Element Cohasset Elementary School for our Walker-Hackensack-Akeley School Forest Lake Elementary School Grand Rapids Cohasset Elementar Northland High School e Science and Thank Foundaon. T FACE OF THE FRANCHISED NEW CAR DEALER MINNESOTA AUTOMOBILE DEALERS ASSOCIATION 200 Lothenbach Ave | West St. Paul, MN | 800.652.9029 | 651.291.2400 | www.mada.org Scott Lambert | [email protected] | Amber Backhaus | [email protected] dd 1 6/6/14 3:38 PM

Transcript of July 2014 - MADA629).pdf · July 2014 / Page 3 Legislative News Shop Lien Foreclosure Sales...

Union OrganizingMinneapolis

Certified TitleMinneapolis

Title BasicsBrainerd

Over the past two sessions, MADA attempted passage of legislation to shore up Minnesota’s long-standing franchise law and ensure vehicle manufacturers can not sell direct-to-consumer. Unfortunately, our efforts were met with resistance from legislators who were not only swept up in “Tesla-mania” but also have a lack of understanding about why the motor vehicle dealer franchise law exists in the first place.

In an effort to bring legislators up to speed on how the franchise system encourages economic

competitiveness, provides customer convenience, and keeps dollars and jobs in local communities, MADA has launched the “Face of the Franchise” campaign. Over the summer and the fall, MADA staff will be meeting with lawmakers and legislative candidates to share the benefits of the franchise system and explain the negative consequences of dismantling it. If you are interested in hosting one of these meetings at your dealership, please let Scott Lambert or Amber Backhaus know, and we will work with you to set something up.

MADA’s new initiative provides a local angle to NADA’s “Get the Facts” campaign, which includes advertising, briefings, and studies to combat the misinformation being perpetuated by national media outlets in their coverage of Tesla’s attempts to gain marketshare. More information on the NADA campaign can be found at http://www.nada.org/getthefacts.

NewsJuly 2014

insideStreamlined ShopLien

MADA Dues Increase

TMQDA Nominations Due

Scott Lambert, Executive Vice 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

Industry News

MADA Launches ‘‘Face of the Franchise” Campaign

upcoming events

9sep

18sep

6aug

www.mada.org

17

In honor of those individuals who “Build

America, Move America, Keep America

Running and Protect America,“

Nuss Truck and Equipment hosted an

appreciation day to honor truck drivers, heavy

equipment operators, diesel technicians

and U.S. military personnel. Over $4,000

in monetary donations were collected on

behalf of the Salvation Army and toy donations for the

Trucks & Toys program sponsored by the Minnesota

Trucking Association.

Kemna-Asa Auto Plaza in Jackson has completed

their annual promotion which they call “Countdown to

100” toward their goal of making 100 vehicle during the

last 100 days of 2012. For each deal, they will contribute

a percentage of the proceeds to local charities such as

the food shelf, scouting programs, churches, and the

Jackson United Fund. The customers will have a vote

in how these charities are selected. Last year over $4,000

was given to the local groups.

Employees at Polar Chevrolet Mazda donated

proceeds from a chili cook off to the White Bear Lake

Area Emergency Food Shelf. Mascot Pauly Bear

presented the check to Ann Searles, food shelf director.

The Northwoods Habitat for

Humanity was presented with

a new Toyota Tundra through

Toyota’s “100 Cars for Good”

campaign. The Northwoods

Chapter serves Beltrami and

Clearwater counties. The 1978

Ford conversion van that the

organization has been using was

described as “road-weary” and

the new vehicle was greatly appreciated. Northwoods

Habitat for Humanity was one of 3,000 initial applicants

and one of 500 finalists. The nonprofit that received the

most votes on a chosen day was awarded the Toyota.

Send YOUR good news

to Sandy at [email protected]

winter2013.indd 17

1/16/13 11:02 AMGrand Rapids High School

Band Walker-Hackensack-

Akeley School Go Wolves!

Grand Rapids High School Band

Forest Lake Elementary School

Cohasset Elementary School

Northland High School

Truck donated to the Science and

Environmental Chemistry classes

Thank Youto our hometown communities

for all of your support!

Together, with Chrysler,

Dodge and Ford,

Tom Clusiau’s raised over

$19,000for our area schools

hr12

0396

54

Walker-Hackensack-Akeley School

Grand Rapids High School

Band Walker-Hackensack-

Akeley School Go Wolves!

Grand Rapids High School Band

Forest Lake Elementary School

Cohasset Elementary School

Northland High School

Truck donated to the Science and

Environmental Chemistry classes

Thank Youto our hometown communities

for all of your support!

Together, with Chrysler,

Dodge and Ford,

Tom Clusiau’s raised over

$19,000for our area schools

hr12

0396

54

Walker-Hackensack-Akeley SchoolGrand Rapids High School

Band Walker-Hackensack-

Akeley School Go Wolves!

Grand Rapids High School Band

Forest Lake Elementary School

Cohasset Elementary School

Northland High School

Truck donated to the Science and

Environmental Chemistry classes

Thank Youto our hometown communities

for all of your support!

Together, with Chrysler,

Dodge and Ford,

Tom Clusiau’s raised over

$19,000for our area schools

hr12

0396

54

Walker-Hackensack-Akeley School

Grand Rapids High School

Band Walker-Hackensack-

Akeley School Go Wolves!

Grand Rapids High School Band

Forest Lake Elementary School

Cohasset Elementary School

Northland High School

Truck donated to the Science and

Environmental Chemistry classes

Thank Youto our hometown communities

for all of your support!

Together, with Chrysler,

Dodge and Ford,

Tom Clusiau’s raised over

$19,000for our area schools

hr12

0396

54

Walker-Hackensack-Akeley School

Grand Rapids High School

Band Walker-Hackensack-

Akeley School Go Wolves!

Grand Rapids High School Band

Forest Lake Elementary School

Cohasset Elementary School

Northland High School

Truck donated to the Science and

Environmental Chemistry classes

Thank Youto our hometown communities

for all of your support!

Together, with Chrysler,

Dodge and Ford,

Tom Clusiau’s raised over

$19,000for our area schools

hr12

0396

54

Walker-Hackensack-Akeley School

www.mada.org

17

In honor of those individuals who “Build

America, Move America, Keep America

Running and Protect America,“

Nuss Truck and Equipment hosted an

appreciation day to honor truck drivers, heavy

equipment operators, diesel technicians

and U.S. military personnel. Over $4,000

in monetary donations were collected on

behalf of the Salvation Army and toy donations for the

Trucks & Toys program sponsored by the Minnesota

Trucking Association.

Kemna-Asa Auto Plaza in Jackson has completed

their annual promotion which they call “Countdown to

100” toward their goal of making 100 vehicle during the

last 100 days of 2012. For each deal, they will contribute

a percentage of the proceeds to local charities such as

the food shelf, scouting programs, churches, and the

Jackson United Fund. The customers will have a vote

in how these charities are selected. Last year over $4,000

was given to the local groups.

Employees at Polar Chevrolet Mazda donated

proceeds from a chili cook off to the White Bear Lake

Area Emergency Food Shelf. Mascot Pauly Bear

presented the check to Ann Searles, food shelf director.

The Northwoods Habitat for

Humanity was presented with

a new Toyota Tundra through

Toyota’s “100 Cars for Good”

campaign. The Northwoods

Chapter serves Beltrami and

Clearwater counties. The 1978

Ford conversion van that the

organization has been using was

described as “road-weary” and

the new vehicle was greatly appreciated. Northwoods

Habitat for Humanity was one of 3,000 initial applicants

and one of 500 finalists. The nonprofit that received the

most votes on a chosen day was awarded the Toyota.

Send YOUR good news

to Sandy at [email protected]

winter2013.indd 17

1/16/13 11:02 AM

®

®

320-274-3064 • 800-947-1250

840 E. Elm St., Annandale, MN 55302 • www.countrychev.com

Thank You!

Joel Diers, center, presents the check to Ed and Jean Skomoroh of the Annandale

Area Community Food Shelf. Pat Francis of Country Chev is not pictured.

Thanks to our customers in December,

Country Chev donated $5,150 to the

Annandale Area Community Food Shelf

Thanks to everyone listed below and others

for helping us make a generous donation!

Craig Bardson, Albany

Joseph Shoults, Maple Grove

Michael Francis, Inver Grove Heights

Kay Francis, South St. Paul

Gary Heinrich, Woodbury

Douglas Stalboerger, Coon Rapids

Michael Elsenpeter, Maple Lake

Thomas Klingelhutz, Annandale

Patrick Salonek, Waverly

Arnette Borowicz, Stephen

Hayley Pitzl, Annandale

K. Lemke, St. Cloud

Mid MN Hotmix, Annandale

Molly Diers, Roseville

Paul Bredeson, Annandale

Todd Groskreutz, Chaska

Geraldine Cleland, Cohasset

RM Johnson Co. Inc., Annandale

Thomas Mackie, Annandale

Stephen Lafond, Clearwater

Laura Diedrich, Oakdale

Leon Schmidt Wood Products, Inc., Monticello

C.S. Arvola Inc., Annandale

James Hartfiel, Monticello

Carefree Lawn Sprinklers, Annandale

Wayne Luetgers, Maple Lake

Chad Wiles, Annandale

Jennifer Warner, St. Cloud

Jerry Johnson, St. Bonifacius

Steven Vergin, Rockford

Frank Blomquist, Jupter, Fla.

Wright Hennepin Electric, Rockford

Matthew Nygard, Fargo, N.D.

Jack Trovall, Becker

Charles Schuft, New Germany

Bradley Stegeman, Maple Lake

Michael Jude, Maple Lake

Miller Trucking of Buffalo, Inc., Buffalo

Rita Everhart, Silver Lake

Kenneth Mueller, St. Cloud

Joseph Schumacher, Annandale

Richard Swanson, Milaca

Janet Klein, Clearwater

Montrose Fire Department,Montrose

Jim Potthoff, Monitcello

Jordan Feyma, Kimball

Deanna Scheeler, Cold Spring

Innocast Corp., Howard Lake

James Skuza, Annandale

Richard House, Ramsey

Kyle Stommes, Annandale

Lori Groen, Monticello

Amanda Lieser, St. Louis Park

Nicole Gallus, St. Stephen

www.mada.org

16

Luther Brookdale Chevrolet sponsored the Brooklyn

Center Soccer League, a second year partnership with

the city. Participating in athletic programs has proven

to be a very effective way to positively modify kids’

behaviors with activities and decrease juvenile incidents.

Luther Automotive is also helping to sponsor a new

project to transform an underutilized softball field into

four permanent soccer fields in this same area.

Dodge of Burnsville raised $4,040 for the Burnsville

High School boys soccer program. Dodge contributed

$20 to the program for each participant who test drove

a new Dodge.

Hibbing Chrysler Center hosted a similar fundraiser

for the Nashwauk-Keewatin High School.

The Ford Drive 4 UR Community program and

Zumbrota Ford helped raise funding for the Rotary

Club of Zumbrota. Zumbrota Ford also donated

$3,220 to the Pine Island Academics, Arts, and

Athletics Foundation through Ford’s Drive 4 UR

School program. The Drive One 4UR School raised

$5880 for the Zumbrota-Mazeppa Education

Foundation.

Madelia Ford held a fundraiser to benefit the Madelia

Baseball/Softball Association. For each person who

attended the “Go Further with Ford Night,” Madelia

Ford donated $10 to the Association.

On October 6th, New Brighton Ford (NBF) hosted

its third DriveOne4URSchool at its dealership for

Irondale High School. NBF and Irondale High School set

a goal to raise $6,000 for 14 school activity groups: Girls

Hockey, Boys Hockey, Fastpitch, Girls Swim, Wrestling,

Dance, Cross Country Running, Drama, Baseball,

Volleyball, Boys/Girls Track, Girls Basketball, Boys Soccer

and Nordic Skiing. This large event which drew nearly

200 test drives was able to raise nearly $4,000. Since

2011, New Brighton Ford has donated nearly $10,000 to

the Booster Clubs of Irondale High School.

The St. James Ambulance Service and the Ormsby

Fire and Rescue Department were presented with

emergency rescue equipment from Mel Carlson

Chevrolet, Inc., Truman and the Minnesota Auto

Dealers Association Charitable Foundation.

The Hermantown Area Chamber of Commerce and

Kolar Chevrolet Buick GMC hosted a holiday party

and fundraiser at the new Kolar dealership.

Toys were collected for the Toys for Tots

program. Cash donations were given to

Second Harvest Northern Lakes Food

Bank to be distributed to the food shelves

in the area.

Dealers Are Good Neighbors

winter2013.indd 16

1/16/13 11:02 AM

FACE OF THE FRANCHISED NEW CAR DEALER

MINNESOTA AUTOMOBILE DEALERS ASSOCIATION

200 Lothenbach Ave | West St. Paul, MN | 800.652.9029 | 651.291.2400 | www.mada.org

Scott Lambert | [email protected] | Amber Backhaus | [email protected]

FranchiseBenefits_Final.indd 1

6/6/14 3:38 PM

July 2014 / Page 2

The Minnesota Automobile Dealers Association is a non-profit trade association dedicated to the progress of the retail auto

industry in Minnesota.President Morrie Wagener, Morrie’s Automotive Group, Minnetonka President-Elect Greg House, House Chevrolet, Stewartville Treasurer Mike Saxon, Inver Grove Ford Lincoln, Inver Grove Heights Secretary Rick Jensen, Jensen Motors, Inc., New Ulm Executive Vice 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

The National Automobile Dealers Association has published several memos outlining dealers’ obligations with respect to recall notices. Each year, millions of vehicles become subject to safety recalls, according to NADA, but a relatively small percentage of these recalls involve “stop operation” or “stop sale” notices. Here are some steps for dealers to take based on the safety recall at issue and the vehicles involved:

New vehicles in inventory or in transit Once any notice of an outstanding safety recall is received, federal law prohibits the delivery of impacted new vehicles until the recall is remedied.

Used vehicles of a make the dealer is franchised to sell new Federal law neither imposes an obligation on dealerships to know the safety recall status of used vehicles, nor prohibits the resale of used vehicles with outstanding safety recalls.

However, it is recommended that used vehicles of the same make a dealer sells new be checked for outstanding, unremedied recalls (safety or

emissions) since the dealership is authorized to do service or repair work involved. Important: if and when a dealership receives a recall notice indicating that certain used vehicles should not be operated and/or resold, they should not be operated or resold until the recall is remedied.

Used vehicles the dealer is not franchised to sell new Again, Federal law neither imposes an obligation on dealerships to know the safety recall status of used vehicles, nor prohibits the resale of used vehicles with outstanding safety recalls.

However, state law may impose additional obligations. For example, state product liability laws, may impose liability in this situation if (1) a dealer chooses to sell a used vehicle containing the safety-related defect, and (2) that used vehicle is in an accident involving the defect.

Dealers with questions should contact General Counsel Jim Schutjer at your MADA office.

Legal News

Do’s and Don’ts of Stop Sales

The Minnesota Licensing and Registration System (MNLARS) is a Driver and Vehicle Services (DVS) project to replace its current information systems with a modern 21st Century model. The first release of MNLARS enables deputy registrars and DVS staff to issue vehicle permits electronically. Over 2,000 vehicle permits have been issued through MNLARS since it was launched earlier this spring. The rollout of MNLARS to all deputy registrars will continue throughout the summer. Future installments of MNLARS include dealer licensing, driver’s licensing and vehicle title and registration.

Industry News

MNLARS Appears on the Horizon

July 2014 / Page 3

Legislative News

Shop Lien Foreclosure Sales StreamlinedMADA-sponsored legislation that simplifies the notice and sale provisions of the shop lien statute is effective August 1.

Standard shop lien scenario Customer drops off a vehicle or has it towed in for service or repair. You fix it or perhaps just diagnose the problem. In either case, you have charges against the vehicle and are accruing storage. You try to reach the customer to pick up the vehicle, but the customer either refuses to come in or perhaps just ignores you. They may not have the money to pay the bill. Perhaps the vehicle isn’t drivable. Maybe it’s worth less than the amount of your bill.In any case, after holding the vehicle for at least 90 days and providing notice to lienholders shown on the title, Minnesota law allows you to sell the vehicle and use the proceeds to satisfy your bill.

Old law Under the old law, dealers were required to go through antiquated sheriff’s sale procedures in order to sell the vehicle and obtain a title. Notices were required to be personally serviced on some customers or perhaps published in a legal newspaper. You were required to schedule the county sheriff to come out to your dealership and conduct a formal “Sheriff’s Sale” to dispose of the vehicle. In many cases, dealers paid their lawyers to handle the

complexities of the notice and sale provisions.

New law Effective Aug. 1, 2014, licensed new and used car dealers who are holding a vehicle for a shop bill can use a simplified alternative procedure. Instead of personally serving notices and/or publishing them in legal newspapers, notice to the customer three weeks in advance of the sale by certified mail is sufficient. Once the notice period runs, the dealership can sell the vehicle in the ordinary course of business to either a retail or a wholesale customer. Copies of your notice document and proof that you mailed the certified letter will be submitted to the deputy registrar along with a title application in the name of your retail or wholesale buyer.Note: If the dealer elects to use this new procedure instead of the regular sheriff’s sale, the dealer waives any claim for a deficiency against the customer over and above the proceeds of the sale.

MADA is creating a “cookbook” with shop lien procedures and suggested forms. Watch for it at mada.org soon after Aug. 1. If you want to look at the new law, it’s here: http://bit.ly/1r9FiNq

FAQ

Q: We deal with a lot of high performance cars. There are some pretty cool tail light film smoking products which our customers want us to install. Is that OK?

A: Afraid not. Minnesota Statute §169.64 prohibits both the installation of aftermarket tail light film and the operation of a vehicle with such tail light film.

The MADA Board of Directors approved a 20% dues increase during their recent summer Board meeting. The increase was requested by staff to help fund a ramped up communications effort to assist our legislative and public policy efforts. The increase will be effective for 2015.

MADA News

Dues Increase Approved

July 2014 / Page 4

Legislative News

Minimum Wage Takes EffectMinimum Wage For MADA Member Dealers

Effective Dates General Hourly Rates Rates for Ages 17 and Under

Rates for Ages 19 and under during first 90 days of employment only

Old Rates $7.25 (Fed) $7.25 (Fed) $4.90August 1, 2014 $8.00 $7.25 (Fed) $6.50August 1, 2015 $9.00 $7.25 $7.25August 1, 2016 $9.50 $7.75 $7.75January 1, 2018 Indexed to Inflation Indexed to Inflation Indexed to InflationAll dealers are “Large Employers” having total gross yearly sales greater than $500,000 and must pay according to this table. In certain cases, Federal requirements are more favorable to employees and take precedence over lower Minnesota amounts. Marked (Fed) above.

NADA has announced the details of the 2015 NADA Convention and Expo in San Francisco. The 2015 Convention has moved to a Thursday-to-Sunday schedule (January 22-25).Watch for registration materials coming to you from NADA.MADA is very happy to announce that our popular member brunch will be held on Sunday, Jan. 25 from 11 am – 2 pm atop Nob Hill at the Fairmont San Francisco’s Crown Room. This location boasts some of the most spectacular views of the city and the bay. Be sure to put this on your schedule of activities at the NADA Convention.

MADA News

NADA 2015 Convention

Nomination forms have gone out to each dealership for 2015 Quality Dealer of the Year nominations. MADA’s Selection Committee will vote on the nominee to be submitted. The Selection Committee is comprised of the last four nominees. From left, they are Rick Jensen, Jensen Motors, Inc., 2011; Morrie Wagener, Morrie’s Automotive Group, 2012; Gary Papik, Papik Motors, Inc., 2013; and David Luther, Luther Automotive Group, 2014.Candidates must be a franchised new car dealer principal and a member of both NADA and MADA. TMQDA is sponsored by Time Magazine in association with NADA. The TMQDA program recognizes outstanding new car dealers for exceptional performance in their dealership and for distinguished community service. Deadline for submitting qualified nominations is July 25, 2014.

MADA News

TMQDA

July 2014 / Page 5

Minnesota New Retail Car and Light Truck RegistrationsMost Recent Two Months YTD thru May* YTD Market Share (thru May)*

4/13 &5/13

4/14 &5/14*

%change 2013 2014*

%change 2013 2014* change

Industry Total 35,992 38,038 5.7% 81,791 82,773 1.2%Cars 15,830 15,866 0.2% 34,439 32,038 -7.0% 42.1 38.7 -3.4Light Trucks 20,162 22,172 10.0% 47,352 50,735 7.1% 57.9 61.3 3.4

Japanese Brands 12,380 13,442 8.6% 26,692 28,632 7.3% 32.6 34.6 2.0Toyota 4,878 5,265 7.9% 10,292 10,482 1.8% 12.6 12.7 0.1Honda 3,624 3,654 0.8% 7,277 7,517 3.3% 8.9 9.1 0.2Nissan 1,702 1,861 9.3% 4,015 4,461 11.1% 4.9 5.4 0.5Other 2,176 2,662 22.3% 5,108 6,172 20.8% 6.2 7.5 1.3

Domestic Brands 18,452 19,413 5.2% 43,702 43,750 0.1% 53.4 52.9 -0.5General Motors 7,489 7,939 6.0% 18,396 17,890 -2.8% 22.5 21.6 -0.9Ford 6,886 6,881 -0.1% 16,189 15,550 -3.9% 19.8 18.8 -1.0Chrysler 4,049 4,547 12.3% 9,033 10,232 13.3% 11.0 12.4 1.4Other 28 46 64.3% 84 78 -7.1% 0.1 0.1 0.0

European Brands 2,633 2,534 -3.8% 5,580 5,004 -10.3% 6.8 6.0 -0.8Volkswagen 1,224 1,197 -2.2% 2,666 2,440 -8.5% 3.3 2.9 -0.4BMW 747 655 -12.3% 1,513 1,210 -20.0% 1.8 1.5 -0.3Mercedes 382 403 5.5% 748 792 5.9% 0.9 1.0 0.1Other 280 279 -0.4% 653 562 -13.9% 0.8 0.7 -0.1

Korean Brands 2,527 2,649 4.8% 5,817 5,387 -7.4% 7.1 6.5 -0.6

19.9% 23.7%

33.0%

23.8% 23.1%

-6.8% -8.6% -9.2%

-1.0% -2.3% -4.8%

1.8%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14*

% c

hang

e vs

. yea

r ear

lier

Last month in period

10.7%

7.1%

1.9%

-7.0%

-15.0% -5.0% 5.0% 15.0% 25.0%

U.S.

State

Cars

Trucks

Minnesota Auto OutlookCovering the Minnesota automotive market Data thru May 2014

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: Polk.

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 May 2014 were estimated by Auto Outlook. Data Source: Polk.

Brands included above: Domestic Brands: GM (Buick, Cadillac, Chevrolet, and GMC), Ford (Ford and Lincoln), Chrysler (Chrysler, Dodge, and Jeep). Japanese: Toyota (Toyota, Lexus, and Scion), Honda (Honda and Acura), Nissan (Nissan and Infiniti), Other (Mazda, Mitsubishi, Subaru, and Suzuki). European: VW (Audi, Bentley, and Volkswagen), BMW (BMW, Rolls Royce, and MINI), MB (Mercedes Benz), Other (Aston Martin, Ferrari, Fiat, Jaguar, Land Rover, Lotus, Maserati, and Volvo). Korean: Hyundai and Kia.*Figures for May 2014 were estimated by Auto Outlook. Data Source: Polk.

Percent Change in State and U.S. New Retail Light Vehicle Markets

YTD ‘14 thru May* vs. YTD ‘13

The graph above compares the change in new retail car and light truck registrations in both the state and U.S. markets. *Figures for May 2014 were estimated by Auto Outlook.Data Source: Polk.

July 2014 / Page 6

MinnesotaNew Retail Light Vehicle Registrations

Registrations Market share

YTD '13thru May

YTD '14thru May* % change

YTD '13thru May

YTD '14thru May*

TOTAL 81,791 82,773 1%Acura 581 686 18% 0.7% 0.8%Audi 587 692 18% 0.7% 0.8%BMW 1,167 1,000 -14% 1.4% 1.2%Buick 1,681 1,580 -6% 2.1% 1.9%Cadillac 575 575 0% 0.7% 0.7%Chevrolet 13,124 12,627 -4% 16.0% 15.3%Chrysler 1,694 1,289 -24% 2.1% 1.6%Dodge 2,978 2,830 -5% 3.6% 3.4%FIAT 136 126 -7% 0.2% 0.2%Ford 15,744 15,086 -4% 19.2% 18.2%GMC 3,016 3,107 3% 3.7% 3.8%Honda 6,696 6,831 2% 8.2% 8.3%Hyundai 2,790 2,564 -8% 3.4% 3.1%Infiniti 346 355 3% 0.4% 0.4%Jaguar 19 15 -21% 0.0% 0.0%Jeep 2,101 3,405 62% 2.6% 4.1%Kia 3,027 2,822 -7% 3.7% 3.4%Land Rover 157 154 -2% 0.2% 0.2%Lexus 815 868 7% 1.0% 1.0%Lincoln 445 464 4% 0.5% 0.6%Mazda 1,600 1,666 4% 2.0% 2.0%Mercedes 742 782 5% 0.9% 0.9%MINI 346 209 -40% 0.4% 0.3%Mitsubishi 337 774 130% 0.4% 0.9%Nissan 3,669 4,105 12% 4.5% 5.0%Other 155 134 -14% 0.2% 0.2%Porsche 91 93 2% 0.1% 0.1%Ram 2,260 2,707 20% 2.8% 3.3%Subaru 3,090 3,698 20% 3.8% 4.5%Tesla 36 34 -6% 0.0% 0.0%Toyota 9,477 9,614 1% 11.6% 11.6%Volkswagen 1,988 1,654 -17% 2.4% 2.0%Volvo 321 227 -29% 0.4% 0.3%

0.0 5.0 10.0 15.0 20.0

Buick

Mazda

Volkswagen

Hyundai

Ram

Dodge

Kia

GMC

Jeep

Subaru

Nissan

Honda

Toyota

Chevrolet

Ford

2.1

2.0

2.4

3.4

2.8

3.6

3.7

3.7

2.6

3.8

4.5

8.2

11.6

16.0

19.2

1.9

2.0

2.0

3.1

3.3

3.4

3.4

3.8

4.1

4.5

5.0

8.3

11.6

15.3

18.2

Market Share

YTD '14 thru May*

YTD '13 thru May

Minnesota Auto Outlook Data thru May 2014

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 con-tent of Minnesota Auto Outlook. Copyright Auto Outlook, June 2014.

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: Polk.”

State Market Share for Top 15 Selling Brands YTD ‘14 thru May* vs. YTD ‘13

Top ten ranked brands in each percent change category are shaded green.

*Figures for May 2014 were estimated by Auto Outlook.

Source: Polk

*Figures for May 2014 were estimated by Auto Outlook.

Source: Polk.

July 2014 / Page 7

Member News Morrie’s Automotive Group has opened a new store, Morrie’s Inver Grove Mazda.

The last new car dealership in Minneapolis and St. Paul has moved to Golden Valley. Borton Volvo has closed the Lyndale Avenue store and moved the business into the Borton Volvo-Golden Valley location, which will expand to a five-acre campus.

Twin Cities Automotive, owned by the Pohlad Companies, changed its name and will now do business under the name of Carousel Motor Group. None of the dozen dealerships operated by the Carousel Group will be changing names.

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

Computerized Vehicle Registration CVR

F&I Products Protective

Dealership Marketing Visible Customer

Group Health Insurance Blue Cross Blue Shield of MN Delta Dental ReliaStar Life

Workers Compensation Ensure Agency Midwest Family Mutual

Dealer Bond Program Ensure Agency

Collections Springer Collections

Check Guarantee/Credit Card Processing FIS / Certegy

Disability Income Insurance & Section 125 Cafeteria Plans American Fidelity Assurance

OSHA, EPA & DOT Compliance/Training ComplyNet Corporation

Fleet Fueling Program SuperAmerica

Office Supplies S&TOfficeProducts

Uniforms and Linen Services AmeriPride Linen & Apparel Services

Hole-In-One Insurance Hole-In-One-USA

Pre-Paid Legal, Jim Gavin Identity Theft Shield & Pre-Paid Legal Services

Union organizing efforts are on the rise across Minnesota. To complicate matters, the rules surrounding organization efforts are changing. Very soon, a ‘Quickie Elections’ provision will go into effect that can cut in half the normal time required for a union to call for a vote in a dealer’s shop.

Dealers have two issues to keep in mind as the landscape for union action changes. First, prevention is still the best course of action. Secondly, be sure to know the rules if an organizing petition is filed.

GMADA’s longtime and well-respected labor attorney is planning a seminar to address both of these issues. Not only is Steve Burton an expert on the changing rules, but he is also well aware of issues that have recently brought organizing petitions to the dealer’s doorstep.

The Union Organizing Seminar will be held Wednesday, Aug. 6, from 9:30 am to 11:30 am. Register at www.mada.org or contact Denise at [email protected].

Collision and Service UpdateBe Prepared for Union Organization

MADA is happy to report a 100% membership renewal of all new franchised car dealers in the state. We are proud to be an advocate for your business as we monitor legal regulations and legislative issues. Our communications team is proactively giving you the information you need to make informed decisions about your business. And, our MADA Services gives you the best products at the best price, delivered with superior service every day. Thank you for trusting us and making a commitment to MADA.

MADA News

Full MADA Membership Renewal

Scott Lambert, Executive Vice President • 200 Lothenbach Ave. • West St. Paul, MN 55118 • (651) 291-2400 • 1-800-652-9029 • FAX (651) 291-2894

200 Lothenbach AvenueWest St. Paul, MN 55118

ADVOCACY • EXPERTISE • EDUCATION • COMMUNICATIONMADA NEWS • JULY 2014

“Candidates don’t have to deal with reality. They talk about the wonderful things they can accomplish as if advocating them is the same as achieving them. They live in a world of

political make-believe in which everything from reconciling conflicting interests to paying for costly programs is easy.”

--Fred Barnes

MADA Annual Meeting Keynote Speaker Fred Barnes on Friday, December 5th. Mark your calendar now.

EducationFax Registration

For Information on these classes or to register online go to www.mada.org/training

FAX REGISTRATION TO: 651-291-2894Denise Anderson [email protected]

The Certified Title & Registration Program

Class Options Circle Preferred Date LocationSales Tax9:00 a.m. - 10:00 a.m. $99 September 9, 2014

Doubletree by Hilton - Park Place1500 Park Place BlvdMinneapolis, MN 55416

New to Fleet 10:30 a.m. - 12:30 p.m. $99 September 9, 2014

Minnesota Titles and Transfers1:00 p.m. – 3:00 p.m. $99 September 9, 2014

Name__________________________________________ Title____________________________

Name__________________________________________ Title____________________________

Dealership______________________________________ Customer ID #____________________

Address________________________________________________________________________

Phone______________________________ E-mail______________________________________

Union Organizing

Class Options Circle Preferred Date Location

Union Organizing 9:30 a.m. – 11:30 a.m.$99/$49 two or more/dealership

August 6, 2014

Doubletree by Hilton - Park Place1500 Park Place BlvdMinneapolis, MN 55416651-789-2950

Title Basics

Class Options Circle Preferred Date Location

Title Basics – Minneapolis9:30 a.m. - 11:30 a.m. $199 September 9, 2014

Doubletree by Hilton - Park Place1500 Park Place BlvdMinneapolis, MN 55416

Title Basics –Brainerd 1:00 p.m. - 3:00 p.m. $199 September 18, 2014

Grand View Lodge23521 Nokomis AveNisswa, MN 56468

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