LEGAL NEWS DECEMBER 2012 FTC Challenges “Drip Pricing” …519).pdfFTC Challenges “Drip...

13
FTC Challenges “Drip Pricing” Don’t be lulled by the cute name. The Federal Trade Commission is taking a serious look at price advertising where the advertised price isn’t the whole price of the good or service. The FTC is challenging a pricing technique where sellers advertise only part of a product’s price and reveal other charges later as the customer goes through the buying process. The current focus of FTC attention is the hotel and hospitality industry where some ads and price quotes unlawfully misrepresent the hotel room reservation price. One common consumer complaint involves mandatory fees hotels charge for amenities such as newspapers, use of on site exercise or pool facilities or internet access, sometimes referred to as “resort fees.” Minnesota automobile dealers, who abide by the Minnesota Advertising Standards administered by the Better Business Bureau, won’t run afoul of the FTC. Standard 2 requires advertised prices to be the complete vehicle price. The only permissible add ons are state and local taxes, title & registration fees and a document administration fee, not to exceed $75. On the other hand, dealers who might still be adding on a “dealer prep” or “additional dealer markup” to their advertised price may well be in the sights of FTC enforcement agents. December 2012 / Page 1 Certified Title January 8 Title Basics – St. Cloud January 23 Certified Title – Brainerd January 24 Growing & Developing Supervisors Feb 5 & 6 – Minneapolis Feb 7 &8 - Brainerd Job Fair Wednesday, March 13 Certified Title March 19 Additional Classes and Webinars Watch for e-mail announcements from MADA Newslists or check out www.mada.org for a comprehensive list of all course listings. * All Classes at MADA (200 Lothenbach Avenue West St. Paul, MN 55118) unless otherwise noted DECEMBER 2012 LEGAL NEWS IN THIS ISSUE LEGAL NEWS FTC Challenges “Drip Pricing” ......... Cover New Year Business Notes........................ 4 MADA NEWS Annual Meeting Recap..................... Cover Sandi Chapman........................................ 2 MADA Services Announces New Endorsement ............................................ 7 Collision Clips........................................... 7 MADA Heads Up National Pension Reform...................................................... 8 LEGISLATIVE NEWS Transportation Finance Advisory Reports With Recommendations ........................... 2 INDUSTRY NEWS Flood Cars Streaming In Wholesale Markets..................................................... 8 AUTO OUTLOOK.......................... 5-6 MEMBER NEWS ............................... 8 UPCOMING EVENTS Annual Meeting Recap.., continued on page 3... MADA NEWS Annual Meeting Recap The 2012 MADA Annual Meeting was a sold-out event that hosted a record 350 members at the Hilton in Downtown Minneapolis. Attendees were treated to industry news and a few laughs. Outgoing President Paul Walser announced the Minnesota new car and truck industry was up 18% over the previous year. He congratulated the Association for its achievements during the past year including: creating a new website, legislation to ease the titling process, transitioning the Group Health program from

Transcript of LEGAL NEWS DECEMBER 2012 FTC Challenges “Drip Pricing” …519).pdfFTC Challenges “Drip...

Page 1: LEGAL NEWS DECEMBER 2012 FTC Challenges “Drip Pricing” …519).pdfFTC Challenges “Drip Pricing” ... Outgoing President Paul Walser announced the Minnesota new car and truck

FTC Challenges “Drip Pricing”Don’t be lulled by the cute name. The Federal Trade Commission is taking a serious look at price advertising where the advertised price isn’t the whole price of the good or service.

The FTC is challenging a pricing technique where sellers advertise only part of a product’s price and reveal other charges later as the customer goes through the buying process. The current focus of FTC attention is the hotel and hospitality industry where some ads and price quotes unlawfully misrepresent the hotel room reservation price. One common consumer complaint involves mandatory fees hotels charge for amenities such as newspapers, use of on site exercise or pool facilities or internet access, sometimes referred to as “resort fees.”

Minnesota automobile dealers, who abide by the Minnesota Advertising Standards administered by the Better Business Bureau, won’t run afoul of the FTC. Standard 2 requires advertised prices to be the complete vehicle price. The only permissible add ons are state and local taxes, title & registration fees and a document

administration fee, not to exceed $75.

On the other hand, dealers who might still be adding on a “dealer prep” or “additional dealer markup” to their advertised price may well be in the sights of

FTC enforcement agents.

December 2012 / Page 1

Certified TitleJanuary 8

Title Basics – St. CloudJanuary 23

Certified Title – BrainerdJanuary 24

Growing & Developing SupervisorsFeb 5 & 6 – Minneapolis

Feb 7 &8 - Brainerd

Job FairWednesday, March 13

Certified TitleMarch 19

Additional Classes and WebinarsWatch for e-mail announcements from MADA

Newslists or check out www.mada.org for a comprehensive list of all course listings.

* All Classes at MADA (200 Lothenbach Avenue West St. Paul, MN 55118) unless otherwise noted

DECEMBER 2012LEGAL NEWS

IN THIS ISSUELEGAL NEWSFTC Challenges “Drip Pricing” ......... CoverNew Year Business Notes ........................4

MADA NEWSAnnual Meeting Recap ..................... Cover Sandi Chapman........................................2 MADA Services Announces New Endorsement ............................................7 Collision Clips ...........................................7 MADA Heads Up National Pension Reform ......................................................8

LEGISLATIVE NEWSTransportation Finance Advisory Reports With Recommendations ...........................2

INDUSTRY NEWSFlood Cars Streaming In Wholesale Markets .....................................................8

AUTO OUTLOOK .......................... 5-6

MEMBER NEWS ...............................8

UPCOMING EVENTS

Annual Meeting Recap.., continued on page 3...

MADA NEWS

Annual Meeting RecapThe 2012 MADA Annual Meeting was a sold-out event that hosted a record 350 members at the Hilton in Downtown Minneapolis. Attendees were treated to industry news and a few laughs.

Outgoing President Paul Walser announced the Minnesota new car and truck industry was up 18% over the previous year. He congratulated the Association for its achievements during the past year including: creating a new website, legislation to ease the titling process, transitioning the Group Health program from

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December 2012 / Page 2

The Minnesota Auto Dealers Association is a non-profit trade association dedicated to the progress

of the retail auto industry in Minnesota.President Paul Walser, Walser Automotive Group, Bloomington President-Elect Steve Brimhall, Minnesota Motor Company, Fergus Falls Treasurer Morrie Wagener, Morrie’s Automotive Group, Minnetonka Secretary Greg House, House Chevrolet, Stewartville Executive Vice President Scott Lambert

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 NEWS

Transportation Finance Advisory Committee Reports RecommendationsIn January 2012, Governor Mark Dayton created the Transportation Finance Advisory Committee (TFAC). The 19-member committee was charged with developing recommendations to fund Minnesota’s transportation infrastructure over the next 20 years. The TFAC group concluded that the state should raise an additional $20 billion over the next 20 years to cover the costs to upgrade roads and bridges, as well as funding major investments in transit, bicycle paths and more. According to the report put forth by the committee there are several revenue-raising options which would affect our industry.

These include:

• Increase the motor vehicle registration fees to raise fee revenue by 10 percent.

•Add $0.005 to the existing $0.0025 cent sales tax for transit in the Twin Cities metropolitan area(fivecounties).

•Expand the option of a wheelage tax in 80 counties in Greater Minnesota and raise the

caplimitfor87counties–currently,onlyfivemetro-area counties impose a wheelage tax which is capped at $5 per year.

•Enable local option sales taxes for transportation projects in 80 counties without the need for a referendum.

•Enable the local option for the formation of Transportation Improvement Districts which are created to finance infrastructureimprovementswithinaspecificdistrictthroughtaxes and other sources of revenue.

Since Minnesota car buyers already pay more in taxes and fees than car buyers in the surrounding four states, MADA will oppose some of the TFAC-recommended tax increases. The proposed increase to the Twin Cities metro area sales tax and the creation of “Transportation Improvement Districts”, which would allow local governments to impose unfair taxes on retail businesses, would put dealers at a competitive disadvantage. MADA expects the Legislature to produce a significantTransportationFinancebillinthe2013session, and many of the TFAC recommendations will be a part of that debate. As always, MADA will work with members of both parties in both the House and Senate when the legislative session begins next month to express our industry’s concerns over these proposals.

MADA Group Insurance Manager Sandi Chapman has passed away. Sandi was a dedicated employee of MADA for over 24 years. We will miss her vitality, sense of humor,

and compassion. Our condolences go out to her family.

Sandi Chapman

MADA NEWS

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A BIG THANK YOU to our generous sponsors!

Gold Sponsors:

Silver Sponsors:

Bronze Sponsors:

PreferredOne to Blue Cross of Minnesota and standing up to True Car. President Walser congratulated MADA staff for orchestrating the purchase of the national marketing company Visible Customer. He also encouraged dealers to become a part of the MADA’s new Collision and Service Council.

Bernie Wagnild of the Valley Group and Rollie Swenson of Swenson Motors were both honored for their years on the MADA and MADA Services boards respectively. Gary Papik of Papik Motors in Luverne was recognized for his TMQDA honor this coming NADA convention.

Keynote speaker Jim Ziegler of Ziegler Super Sales Systems discussed the state of auto manufacturers and warned dealers of vendors who drive dealers to the bottom on price, while robbing them of their own data on the customers.

Otherwise, the opening band played some slightly re-written Beatles tunes, and members were treated to a presentation of Paul’s President’s gift, a redubbed campaign commercial and the day’s fun was rounded out with the always popular interactive survey.

MADA NEWS (Annual Meeting Recap cont... from cover)

December 2012 / Page 3

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December 2012 / Page 4

LEGAL NEWS

Time to make note of the annual adjustments that come with a new year.

Social Security Wage Base and Tax Rates for 2013The Social Security Administration announced the wage base for social security payroll taxes for calendar year 2013. The following table shows the rates and bases applicable for 2013 and 2012 respectively:

Wage Base 2013 2012 Employee Tax Employer TaxOld Age,

Survivors, Disability Tax

$113,700 $110,1006.20%

(4.20% in 2012)6.20%

Medicare Part A

All Wages No Limits

All Wages No Limits

1.45% 1.45%

Important: Congress is currently considering legislation to extend the 4.2% employee tax rate for old age, survivors and disability benefits for another year. MADA will keep you advised.

Additional Medicare Tax for High EarnersA new 0.9 percent Medicare Tax that requires employer withholding goes into effect beginning January 1. Additional withholding is required for earnings over $200,000 during the calendar year. Even though an employer’s obligation to withhold begins at $200,000, employees may owe more or less tax depending on their filingstatus.There’snoemployermatchtothisadditionaltax.

Minimum Wage Stays at $7.25Minnesota dealers are subject to both State and Federal minimum wage laws. Dealers are required to pay the minimum wage most favorable to their employees. Since August, 2008, the Federal rate has been higher and currently stands at $7.25 per hour.

Thelawstillprovidesalowerminimumwagefornewemployeesundertheageof20duringthefirst90daysof their employment. This youth rate is $4.90 per hour.

Vehicle Old Age ExemptionsMinnesota Used Car Warranty Law: A variety of exclusions are provided for in Minnesota’s Used Car Warranty Law, including one for “vehicles thatareeightyearsofageorolderascalculatedfromthefirstdayinJanuaryofthedesignatedmodelyearofthe vehicle.”

On January 1, 2013, model year 2005 vehicles turn eight years old and are exempt from the law.

Minnesota Used Car Damage Disclosure and Branding Laws: These laws only apply to vehicles that have a “manufacturer’s designated model year equal to or greater than thefifthcalendaryearimmediatelyprecedingthecurrentcalendaryear.:

On January 1, 2013, model year 2008 and newer vehicles will be covered. 2007 and older will be exempt.

Odometer Disclosure Requirements: The Federal Odometer Regulations contain an exemption from the disclosure requirements for vehicles that are 10 years old or older. The Minnesota Department of Public Safety administers the exemption on a calendar year basis.

Effective January 1, 2013, model year 2003 vehicles turn ten years old and will be exempt.

New Year Business Notes

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Minnesota New Retail Car and Light Truck RegistrationsMost Recent Two Months YTD thru Oct Year-to-date Market ShareMinnesota U.S. Minnesota U.S. Minnesota

9/11 &10/11

9/12 &10/12

%change

%change YTD 2011 YTD 2012

%change

%change YTD 2011 YTD 2012 change

Industry Total 29,250 26,205 -10.4% 16.8% 128,385 168,372 31.1% 13.3%Cars 12,322 11,513 -6.6% 26.1% 55,405 72,416 30.7% 17.0% 43.2 43.0 -0.2Light Trucks 16,928 14,692 -13.2% 8.4% 72,980 95,956 31.5% 9.7% 56.8 57.0 0.2

Japanese Brands 9,271 9,721 4.9% 27.3% 41,764 54,507 30.5% 16.3% 32.5 32.4 -0.1Toyota 3,270 4,055 24.0% 39.2% 15,274 21,102 38.2% 22.7% 11.9 12.5 0.6Honda 2,578 2,727 5.8% 39.9% 12,224 14,760 20.7% 17.5% 9.5 8.8 -0.7Nissan 1,731 1,367 -21.0% 4.2% 7,157 8,869 23.9% 7.6% 5.6 5.3 -0.3Other 1,692 1,572 -7.1% 13.4% 7,109 9,776 37.5% 10.4% 5.5 5.8 0.3

Domestic Brands 15,040 12,401 -17.5% 6.7% 67,086 86,741 29.3% 9.3% 52.3 51.5 -0.8General Motors 6,708 5,282 -21.3% 4.4% 31,925 37,469 17.4% 2.0% 24.9 22.3 -2.6Ford 5,331 4,435 -16.8% 4.3% 23,042 30,961 34.4% 7.9% 17.9 18.4 0.5Chrysler 3,001 2,684 -10.6% 14.4% 12,119 18,311 51.1% 26.4% 9.4 10.9 1.5

European Brands 2,242 1,940 -13.5% 21.0% 8,786 12,497 42.2% 18.1% 6.8 7.4 0.6Volkswagen 1,093 961 -12.1% 28.3% 4,323 6,449 49.2% 26.2% 3.4 3.8 0.4BMW 535 476 -11.0% 14.1% 2,194 2,756 25.6% 5.9% 1.7 1.6 -0.1Mercedes 319 270 -15.4% 13.8% 1,147 1,675 46.0% 16.8% 0.9 1.0 0.1Other 295 233 -21.0% 23.8% 1,122 1,617 44.1% 21.0% 0.9 1.0 0.1

Korean Brands 2,697 2,143 -20.5% 15.0% 10,749 14,627 36.1% 13.3% 8.4 8.7 0.3

Data for monthly graph - note axis labels are to ref sheet so that formatting is maintained

MINNESOTA

39% 30%

9%

-2% -3%

13%

36%

66%

106% 95%

56%

5%

-20%

0%

20%

40%

60%

80%

100%

120%

Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12

% c

hang

e in

thre

e m

onth

moving  average  vs.  year  e

arlier  

Last month in period

16.8%

13.3%

-10.4%

31.1%

-20.0% -10.0% 0.0% 10.0% 20.0% 30.0% 40.0%

Sept '12 & Oct '12

vs. Sept '11 &

Oct '11

YTD '12 vs.

YTD '11

Minnesota

U.S.

Minnesota Auto OutlookCovering the Minnesota automotive market Data thru October 2012

Data InformationAll data represents new vehicle retail registrations in Minnesota and excludes fleet and wholesale transactions. Monthly recording of registrations occurs when the data is processed by the DVS. 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. June thru August 2011 reported counts were very low, due to a stoppage in title processing by the state. These transactions were subsequently included during the following months. This has caused the reported declines for September and October. Data Source: AutoCount data from Experian Automotive.

Percent Change in Three Month Moving Average of New Retail Registrations versus Same Period Year Earlier

Brands included above: Domestic Brands: GM (Buick, Cadillac, Chevrolet, and GMC), Ford (Ford, Lincoln, and Mercury), 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, Jaguar, Land Rover, Lotus, Maserati, Saab, and Volvo). Korean: Hyundai and Kia.

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.

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

Released by:Minnesota AutomobileDealers Association

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MinnesotaNew Retail Light Vehicle Registrations

Minnesota Registrations U.S. MarketYTD 2011

thru OctYTD 2012

thru Oct % change % change

TOTAL 128,385 168,372 31% 13%Acura 871 1,163 34% 20%Audi 1,008 1,211 20% 19%BMW 1,756 2,146 22% 4%Buick 2,895 3,253 12% 0%Cadillac 1,027 1,132 10% -2%Chevrolet 22,909 26,805 17% 3%Chrysler 2,984 4,325 45% 35%Dodge 3,407 4,815 41% 19%Fiat 44 284 0%Ford 21,918 29,927 37% 8%GMC 5,093 6,279 23% 1%Honda 11,353 13,597 20% 17%Hyundai 5,081 6,788 34% 9%Infiniti 675 831 23% 14%Jaguar 41 46 12% -6%Jeep 3,001 5,340 78% 29%Kia 5,668 7,839 38% 19%Land Rover 206 313 52% 21%Lexus 1,494 1,694 13% 16%Lincoln 837 1,033 23% 6%Mazda 2,547 3,209 26% 6%Mercedes 1,129 1,662 47% 15%MINI 437 610 40% 12%Mitsubishi 489 557 14% -13%Nissan 6,482 8,038 24% 7%Porsche 105 149 42% 5%Ram 2,727 3,831 40% 25%smart 18 13 99%Subaru 3,898 5,756 48% 21%Suzuki 175 254 45% -8%Toyota/Scion 13,780 19,408 41% 24%Volkswagen 3,306 5,226 58% 29%Volvo 614 737 20% -4%Other 410 101 -75% -23%

CarshareLightTruckshare

0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0

Jeep

Subaru

GMC

Hyundai

Kia

Nissan

Honda

Toyota/Scion

Chevrolet

Ford

2.3

3.0

4.0

4.0

4.4

5.0

8.8

10.7

17.8

17.1

3.2

3.4

3.7

4.0

4.7

4.8

8.1

11.5

15.9

17.8

YTD 2012 thru Oct

YTD 2011 thru Oct

Car share, 43.2%

Car share, 43.0%

Car share, 49.8%

Car share, 51.5%

Light Truck

share, 56.8%

Light Truck

share, 57.0%

Light Truck

share, 50.2%

Light Truck

share, 48.5%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

100.0%

State YTD '11 thru Oct

State YTD '12 thru Oct

U.S. YTD '11 thru Oct

U.S. YTD '12 thru Oct

Mar

ket s

hare

State Market Share for Top 10 Selling Brands YTD 2012 thru October vs. YTD 2011

This report is sponsored by the Minnesota Automobile Dealers Association (651-291-2400) 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, November 2012

Minnesota Auto Outlook Data thru October 2012

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

Experian Automotive is the data provider for Auto Outlook.

Car and Light Truck Share in State and U.S. MarketsYTD 2012 thru October vs. YTD 2011

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December 2012 / Page 7

Pre-New Year’s Resolution: Analyze your customer data now.Many people think of January as a slow time, but there is no better month to do a little targeted customer data mining. Look for customers that are in an equity position with their current vehicle, or make it simple for them to trade up, possibly lowering their payments. Find customers who are in their final months of their lease and offer a “lease pull ahead program.”

Data mining allows you to target your messaging which, in return, stretches your marketing budget and provides a better return on your investment. Communicating to right customer with the right offer will easily make a slow month into a busy one.

Marketing intelligence shared by Visible Customer

visit us online at www.mada.org

MADA NEWS

Collision Clips² PartsTrader, the State Farm pilot, launches in Chicago this month with Select Service collision repair facilities. The dealer groups are watching this closely. ² In the 3rd quarter

2012, 31% of collision shops overall saw higher sales compared to the same quarter last year, according to CollisionWeek’s Business Conditions survey. But rising sales didn’t always translate to higher earnings. While a quarter of the largest shops earned more money than 3rd quarter last year, just over 9% of the smallest shops earned more. The mid-sized shops reported 40% improved sales but only half of those improved earnings. ² Average weekly production surged in the auto repair industry over the 3rd Quarter, according to data available from the U.S. Department of Labor Bureau of Labor Statistics. The 3.05% leap from the previous quarter has been recorded only once since the year 2000. The number of collision industry employees is at a level not seen since 2008 and production worker productivity is also rising, according according to CollisionWeek. ² Speaker Michael Monahan at the Collision Industry Conference this month: "The tragedy for our industry is we react too late," he said. "Can the collision industry take control of its market and its destiny? Yes, it absolutely can, but what it can't do is constantly wait and react. It has to take control."

Collision & Service Council

MADA NEWS

MADA SERVICES ANNOUNCES NEW ENDORSEMENTMADA Services is pleased to introduce S&T Office

Products Inc. as the newly endorsed provider of office supplies. S&T is aprivately held company based in the Twin Cities. They have been operating since 1971 and are ratedamongthetop10independentofficesupplydealers in the country. Choosing S&T OfficeProducts, Inc. not only helps our local economy by keeping money in the communities we serve, you are working with industry professionals that are dedicated to providing the highest levels of service at incredibly competitive prices. See the enclosed flyer in this newsletter for moreinformation.

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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

Website Management Autobase

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

December 2012 / Page 8

Zumbrota Ford has been awarded the excellence award from the For the People dealer group at a recent conference.Twin Cities Automotive has purchased Star West Chevrolet, Delano and will be doing business as Chevrolet of Delano.Rochester Motor Cars has acquired Stevens Ford, Chatfield. The store will no longer be a new car dealership.Walser Automotive Group has purchased Hursh Motors Company, Owatonna and will do business as Walser Chevrolet Buick.Twin Cities Automotive has purchased Carousel Audi, Carousel Porsche, Maplewood Audi, and Maplewood Imports from the LeJuene Automotive Group. The dealerships will be doing business as Audi Minneapolis, Porsche of Minneapolis, Audi St. Paul and Mercedes Benz of Maplewood, Porsche of St. Paul, respectively.Luther Brookdale Volkswagen has opened at 7325 Brooklyn Boulevard, Brooklyn Park.Fury Stillwater has opened at 14702 60th Street North, Oak Park Heights with a Jeep franchise.

MEMBER NEWS

MADA NEWS

MADA Heads Up National Pension Reform EffortMADA Executive Vice President Scott Lambert has been tapped by his fellow Automotive Trade Association Executives (ATAEs) to lead an effort on Pension Withdrawal Liability Reform for the dealer industry.

This effort, which will be conducted in the halls of the 2013 Congress, is being undertaken now to take advantage of Congress’s need to re-authorize the Pension Protection Act. For dealers paying into pension funds that are dying and in critical status, such as the Central States Fund, the withdrawal liability can be enormous. Dealers, and many other businesses and unions are seeking relief from these distressed funds.

The ATAE task force created on this issue will be working with the NADA legislative and legal team as well as other ATAEs through the nation.

Hurricanes and superstorms wreck lots of cars. The latest culprit is Sandy, which deluged much of the Northeast United States in late October. While the number of storm-damaged vehicles doesn’t reach Katrina magnitude, according to insurance industry reports, as many as 230,000 vehicles are in some way tied to a Sandy insurance claim.

So, dealers should take extra caution when buying anything from the Northeast United States. Look for the tell-tale musty odor. And remember, a wholesale purchaser has fewer legal options than a retail purchaserofthesamefloodedvehicle.

The National Automobile Dealers Association has a nice 10-point consumerchecklistforfloodedvehiclesatwww.nada.org.

Flood Cars Streaming In Wholesale Markets

INDUSTRY NEWS

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TITLE BASICS

This class prepares title clerks for the Certified Title Professional program.

This class is designed to familiarize new title clerks with the necessary forms, information and procedures required in this position. This hands-on training will broaden the understanding of state forms, their proper application and fee allocation.

TITLE BASICS* is intended to ease any anxiety associated with the sometimes complicated forms. Aly Quinn will work with you to help better understand the forms, fees, titles, transfers, etc. Aly, having done title work for a dealership as well as for the White Bear Licensing Bureau, has over 15 years of combined titling experience and is currently working with CVR.

This class will prepare title clerks for the Certified Title Professional program which is offered at MADA in conjunction with DVS. The class agenda is as follows:

Hour one: Getting to know the forms Hour two: Understanding the fees Hour three: Making sense of the information and a one-on-one Q & A

COST: $149/person. Your MADA Services Account will be billed directly.

TO REGISTER: Fax this form to MADA at 651-291-2894, e-mail to [email protected], or register online at www.mada.org. MADA will send you a confirmation and directions prior to the class. Refunds only on cancellations 48 hours prior to the class.

Wednesday, January 23, 2013St. Cloud Holiday Inn1:00 p.m. - 4:00 p.m.

Name(s) _________________________________________________________

Name(s) _________________________________________________________

Dealership________________________________________________________e-mail_____________________________________ phone_________________

Any questions, please contact Denise Anderson at 651-789-2950 or [email protected]

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Become a Certified Title & Registration Professional

The Certified Title & Registration Program has been designed in a coordinated effort with MADA, Driver and Vehicle Services and the Deputy Registrars. Certified Title & Registration Professionals become eligible for CVR (Computerized Vehicle Registration) and will, therefore, be granted unique access to the state’s e-support mechanisms with the ability to electronically communicate customer’s information to the Deputy Registrar and the State.

All three classes** are mandatory and must be passed (with a test score of 70% or better) to become certified and eligible for CVR. Testing will be conducted by DVS following each class. Individuals who successfully pass the three subject areas will be certified for three years. Continuing education will be required to maintain individual certifications.

New to FleetThis class addresses transfers which create the first Minnesota Certificate of Title. These include new vehicle sales, leases and transfers based on out of state titles. Also, learn about special situations including secure reassignments, secure powers of attorney, dealer conditionals and special plates.

Sales TaxMinnesota motor vehicle sales tax requirements can be complex. In this class, $10 and $90 “in lieu” taxes, discounts, rebates, disabled modifications, gift exemption, divorce, trusts and many other special situations and exemptions will be covered. This class also explores the legal options for dealers titling vehicles for resale and dealership business use.

Minnesota Titles and TransfersIn this class, you will become proficient in the requirements for transferring ownership of Minnesota titled/registered vehicles; use of Minnesota secure power of attorney and reassignment forms; how to correct ownership, alterations or other incorrect information; and learn about common form attachments (transfer upon death, repossessions, grants or release of liens, and more).

Please refer to the reverse side of this form for dates and times of each class and for registration information.

** Important note: these classes are not designed to teach the titling process. The purpose is to improve accuracy and consistency of data, promote quality customer service and expedite the production of state titles. Certification is mandatory to obtain CVR. To participate in any of the title classes (New to Fleet, Sales Tax and Minnesota Titles and Transfers), participants must have at least 6 months experience working directly with titles.

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Page 11: LEGAL NEWS DECEMBER 2012 FTC Challenges “Drip Pricing” …519).pdfFTC Challenges “Drip Pricing” ... Outgoing President Paul Walser announced the Minnesota new car and truck

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Page 12: LEGAL NEWS DECEMBER 2012 FTC Challenges “Drip Pricing” …519).pdfFTC Challenges “Drip Pricing” ... Outgoing President Paul Walser announced the Minnesota new car and truck

GrowinG and developinG SuperviSorS

An Intensive Two-Day Leadership Workshop for the Dealership Supervisor

Presented by: Kevin Dougherty, Consultant, Trainer, Speaker, Author

This intensive two-day training program is designed specifically for the dealership supervisor to address proven attitude adjustment methods, leadership skills, productivity, planning skills, time management, communication enhancement skills, motivational techniques and many more skills which will give your supervisors the edge and confidence to deal with today’s challenges. This program is not just a lecture; it is a hands-on program utilizing real world exercises and video recorded role plays that all attendees will participate in to aid in the learning and development process.

What your supervisors will take away from this workshop:• Transition to management - The attributes of a successful supervisor;

• Establishing effective time management habits - Un-derstanding personal and environmental time wasters;

• Communication - The importance of improving inter-company communication, using active listening to identify and solve problems, the importance of documentation and follow-up, and types of commu-nication;

• Establishing Job Leadership - Eight core values of a successful supervisor and how to apply them;

• How to coach and mentor for improved team performance, worker commitment and individual quality performance;

• How to properly delegate - The importance of holding all job stakeholders accountable;

• How to deal with difficult people and workers in a professional manner;

• Using creative problem solving to improve production and performance;

• Dealing with conflict;

• Video role play practice sessions;

• Planning, goal setting and productivity im-provement to stay ahead of the job details; and

• Motivating employees and how to use the proper motivation method to control behaviors.

Please see reverse side for more information and to register.

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TesTimonials abouT Kevin’s WorKshop:“I have been to over 20 training courses,

classes, and this has been the most ben-

eficial. Great, great, great!”“Excellent for new or veteran supervi-

sors”

“Thank you for getting me started in the

right direction; I just started as a field

advisor and this has been a great help.”“I’ve been in the trade 32 years, 3 as a

service manager. This class, and Kevin’s

presentation was by far the most effective

and useful class I’ve attended.”“This was one class that I never would

have thought I could gain so much knowl-

edge and self confidence.”“I have seen Kevin 3 to 4 times as a supervisor. I will return in 3 or 4 years to

do this class again.”

Page 13: LEGAL NEWS DECEMBER 2012 FTC Challenges “Drip Pricing” …519).pdfFTC Challenges “Drip Pricing” ... Outgoing President Paul Walser announced the Minnesota new car and truck

Job Fairat the Auto Show!Wednesday, March 13, 201210:00 a.m. – 3:00 p.m.

Last year’s Job Fair at the Auto Show was a great success! So good that MADA will be repeating this one-day event, but it will be bigger, better and more interactive than before. We will extend the hours, move the location to the main floor, offer a large-screen video about dealership careers, and give job candidates a chance to win a $500 gift certificate for visiting each booth.

So if your dealership is hiring or if you plan to hire, you won’t want to miss out on this event.

Booth includes: • 8’ long x 3’ deep booth • pipe and drape• one - 6’ draped table • two side chairs• one - 7” x 44” sign • wireless internet • set-up and dismantle • job fair promos • all taxes • Optional: Electric service @$110 (tax included)

Job Fair Booth Pricing:Singe Rooftop: $550Auto Group 2-5 rooftops: $1,200Auto Group 6+ rooftops: $1,800Sign up by February 1st and get a $100 discount.

If you would like to participate in the job fair, please complete the area below and email to [email protected], fax to 651-291-2894 or register online at www.mada.org. Space is limited so please sign up early. Your Dealer Services account will be billed directly. Sorry, no refunds on cancellations. MADA will mail a confirmation of your participation and details by mid-February. Any questions, please call Denise Anderson 651-789-2950.

Job Fair Booth Registration

Dealership/Dealer Group_______________________________________

Contact (Name) _____________________________________________

Phone _________________Email_______________________________

Copy for booth sign: __________________________________________

Electric: ___ yes, please add electric ($110 including tax) for each booth.

Job Fair

So if your dealership is hiring or if you plan to hire, you won’t want to miss out on this event.

Job Fair Booth Registration