PSADA Spring 2010

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So, who measures up? In an independent survey* of Service Managers nationwide, the company chosen number one for fluid maintenance products, services and equipment was BG Products. And, when asked the reason for using BG, their number one response was product quality! The result: BG Products means more satisfied customers, fewer returns and more profits for your dealership.

*Scientific, independent survey of U.S. new car dealerships conducted by The Research Partnership, Inc. 2008.

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The Puget Sound Dealer

A Message from the Editor

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Chances of Life MLP#SVDGD FRP ZZZ SVDGD FRP

Inside this Issue For information on advertising in this publication contact Jim Aitkins Blue Water Publishers, LLC 360.805.6474

Cover photo by Adam Buchanan 4

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6

Message from the President

6XH %\HUV Bob Byers Volvo Seattle

Employee Handbooks Are Your Best Defense in Personnel Matters

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By James M. Shaker Ryan, Swanson and Cleveland

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Peterson Sullivan LLP, one of the nation’s most successful specialists in auto dealership accounting, serves more than one hundred dealers in the Pacific Northwest. We are one of only a few CPA firms approved to perform audits for GM Motor’s Holding Division. And we are the only Washington State member of the exclusive AutoCPA Group. Following are only a few of the many areas where we are trusted advisors to our automotive industry clients: UÊ >Ã ÊV ÌÀ ÃÊÊ UÊ ÌiÀ > ÊV ÌÀ ÃÊ UÊ ÃÌÊÃi}Ài}>Ì ÊÊ UÊ ,-ÊÀi« ÀÌ }ÊÀiµÕ Ài i ÌÃÊ UÊ i> iÀÃ «ÊÛ> Õ>Ì ÊÊ UÊ -> iÃÊ> `Ê E"ÊÌ>ÝÊV ÃÕ Ì }Ê UÊ ÃÌ>ÌiÊ> `ÊÃÕVViÃÃ Ê« > }ÊÊ UÊ />ÝÊ« > }Ê UÊ > V > ÊÃÌ>Ìi i ÌÊ> > ÞÃ ÃÊ We believe strongly in building long-term relationships with our clients. We aim to understand your business so well that our advice becomes indispensable. Please contact Kevin Allison to see how we may assist your business needs at (206) 382-7777 or by email at kevina@pscpa.com. Peterson Sullivan. Driving your success.

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John Strom has been helping retail automotive managers improve their performance for over 25 years. He has held a number of management positions in both single-point and mull tiple franchise operations, including General Manager. His company, Strom & Associates, is a member of the Performance Development Group. To learn more about their services, visit www.perdevgrp.co p g p m. John can be reached at jstromsa@gmail. j @g com. Or call him at 775-851-3000.

Finding the right navigator is crucial for the journey.

Join us June 24–25 at the Embassy Suites Phoenix - Biltmore as our experienced professionals present our fourth annual Workshop for CFOs and Controllers, a seminar for auto, truck, RV, and ÂŠÂ‡ÂƒÂ˜Â›ÇŚÂ‡Â“Â—Â‹Â’Â?‡Â?– †‡ƒŽ‡”•Ǥ –ǯ• ›‘—” …ŠƒÂ?…‡ –‘ ‰ƒ‹Â? ‹Â?•‹‰Š– ‹Â?–‘ –Š‡ …—””‡Â?– Ď?‹Â?ƒÂ?…‹ƒŽ ‡Â?˜‹”‘Â?Â?‡Â?– for dealers and stay up to date on vital tax and compliance issues. To register or for more details, visit www.mossadams.com/cfoworkshop or call (425) 303-3197. If you plan on arriving early, call us to sign up for a round of golf on Wednesday, June 23.

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By Don Schultz

The Professional Automotive Training Center at Shoreline Community College ... from p previous p page g

It started with NADA The beginnings were humble; Hammond contacted Jim Westlake at the National Automobile Dealers Association (NADA) and the first automotive classes were offered in the service department of Chuck Olson Chevrolet in Shoreline. The first class was NADA’s Fundamentals of Automotive Service Training (FAST), and was offered in the evenings. As these classes were being offered, Hammond, working with Dave Rosenquist, SCC’s Science Department Chairman, and Jim Montzheimer, Vocational Director, began to get approval for an automotive program at Shoreline. Permission was granted from the state to offer Emissions Training. Jack Shiel, the first instructor, was hired and the automotive program was officially launched.

GM = ASEP; Toyota adds T-TEN Schultz and Jerry Gernert, Service Manager at Brooks-McKnight Chevrolet, drove to Portland, Ore., to meet with General Motors to see about offering GM factory training on campus. Offering these classes in Seattle eliminated the need for area dealers to send their people to either Portland or California for factory training. Once this was accomplished, the next step was to offer a General Motors Automotive Service Educational Program (ASEP) to the GM dealers. GM gave Shoreline the program. Lance Trimble, the first GM-ASEP instructor was hired in 1982 and within two years he was

selected as the GM-ASEP instructor of the year. Trimble received the award while the class was being taught in a parking lot on campus. The next program to be offered was the Toyota Technical Education Network (T-TEN) Program in 1986. Taught by Shiel, the program was housed in a temporary facility designed as a small-engines lab. Within a year or so, the Honda Professional Automotive Career Training Program (PACT), taught by Mark Hankins, was offered in the afternoons after the T-TEN Program was finished with the lab. About this time, PSADA moved their corporate offices onto the campus and became the first dealer association in the nation to co-locate on a college campus.

Auto training on campus In about 1984, then-SCC President Ron Bell formed the Shoreline Community College Foundation under the direction of Cameron Hightower. The Foundation almost immediately began a capital campaign to raise $3.2 million to build the 32,000 square foot Professional Automotive Training Center (PATC), a model new car dealership housed on a college campus. The building would have a showroom and training rooms for the programs. This ambitious venture for a new foundation was supported and encouraged by the Foundation Board of Directors under the leadership of Stanley O. McNaughton from PEMCO Insurance Company. Stan was one of the greatest supporters of the project, and it was his and Hightower’s leadership that made it happen. Funds were raised from area new car dealers, banks, insurance companies, automobile manufacturers and other interested parties. The PATC was opened and dedicated in November, 1992.

Putting on a Chrysler CAP Shortly after the PATC opened, the Chrysler CAP Program was introduced. Jack Carroll of Lynnwood Dodge spearheaded a campaign to raise money from the area Chrysler dealers to pay the instructor’s salary for the first 22

... continued next page

The Professional Automotive Training Center at Shoreline Community College ... from p previous p page g two years. Jon Clark was the original instructor, followed by current CAP instructor Ken Campbell.

Dealers’ choice With everyone moved into the PATC, It was soon apparent that we had outgrown the facility. Not only were the four factory programs offered in the Center, but PSADA offered sales training, parts science, title clerk training, finance and insurance training, service advisory training and other management classes. In addition to these classes, the automobile manufacturers were offered space to conduct their dealer training. General Motors, Toyota, Chrysler, Volvo, Hyundai, Subaru, Volkswagen, Honda, Kia and others were offering classes in the “bursting-at-the-seams” building.

$4.2 million expansion In 2004, the Board of Directors of the Puget Sound Automobile Dealers Association formed the PSADA Foundation and conducted a $4.2 million capital campaign to add 26,000 square feet to the PATC. This successful campaign was spearheaded by Pam Nelson, Foothills Toyota in Burlington, and Erik Nelson, Lynnwood Honda. Major contributors to the campaign were PSADA, Toyota Motor Sales, PEMCO Insurance, Snap-on Tools, new car dealers in the region and the State of Washington. The new addition added training rooms for the College’s Toyota T-TEN Program; a new regional corporate training room for Toyota Motors Sales, USA; the Snap-on Innovation Center, (a center for training and certification); the regional Volvo Corporate Training Room, the regional Hyundai Motor America Training Room; the regional Chrysler Academy Training Center; and Hunter Engineering Training Center. The college is grateful for the wonderful work and help from Sierra Construction

of Woodinville, who built the addition while classes were being offered in the existing facility every day.

Times 10,000 Shoreline Community College currently offers training for between 6,000 and 10,000 dealer technicians annually, keeping this training and these technicians in Washington rather than sending them out of state. SCC also trains more than 100 new, highly skilled and certified technicians annually to support the area GM, Toyota, Chrysler and Honda dealers. SCC is proud of the fact that 100 percent of the students in the factoryspecific degree programs are employed. The center has also received numerous awards from Toyota, IBM, the American Automobile Manufacturers Association, Fluke, American Association of Community Colleges and others. In 1996, the PATC was honored with a visit by President Bill Clinton. The Professional Automotive Training Center is a wonderful example of the “power of partnerships.” It is a national model for what can happen when business and education join hands to create a future for students and provide the training needs of industry. It is truly a winwin partnership. The program at Shoreline has inspired countless other dealer associations and colleges across America to follow in its footsteps,

Dave launched the PATC’s state-of-the-art Service Advisor training. With more than 20 years of practical experience in the automobile repair industry, Dave is a well-known and respected instructor and speaker throughout Washington State. Dave is now a member of the Car People Agency and has placed hundreds of automotive technicians, managers and service advisors.

Debbie Waddell launched the PATC’s recently updated Title Clerk training with its new Title Clerk Operation Manual, which is becoming a standard for the regional auto industry. Debbie started her career working for the Washington State Department of Licenses as an agent in a DOL satellite office. After many years working for the state, Debbie went to work for Lynnwood Honda where she oversees the titling operation.

... from previous page In addition to technical training many of the above manufacturers also use the PATC’s meeting complex for Finance and Insurance, sales, and other regional or multi-regional training or meetings. All PATC rooms are meeting-ready and have catering services available.

Specialized Dealership Training As part of the partnership of Shoreline Community College (SCC) and Puget Sound Automobile Dealers As-

Mark is the President of ECR, Inc. in Walnut Creek, California. Mark is one of the nation’s most knowledgeable experts on hazardouswaste management, having clients along the entire west coast of America. In addition to standard HazMat classes, Mark offers two to three Hazardous Material Shipping classes at the PATC each year so that dealership parts department employees can attain their federally required certification.

John is one of the most recognized names is sales training in the nation. He has been a senior facilitator for JD Power and Associates, Lexus University, a contract trainer for the Sewell Family of dealerships, and a sales trainer for almost every other auto manufacturer in the world. He launched sales training at the PATC in the early 1980s.

sociation (PSADA), several certified Continuing Education classes are available at the PATC for dealership employees. Included are Service Advisor Training taught by Dave DeMontigny; Title Clerk Training taught by Debbie Waddell; Finance and Insurance Training taught for SCC/ PSADA by American Financial & Automotive Services out of The Woodlands, Texas; sales training taught by John Robison; and USDOT Hazardous Materials Shipping Certification by Mark Aniello from ECR in Walnut Creek, California.

The Professional Automotive Training Center at Shoreline

Dealers’ support the key to success A key feature of the Professional Automotive Training Center at Shoreline Community College is the involvement of area auto dealers. Indeed, without the agreement that has students in training for 11 weeks and then working in the dealership for 11 weeks, the PATC would be just another training program. “It really is a three-legged stool, with the college, the manufacturers and the dealers all needing to be there to hold up the program,” said Jim Hammond, Executive Director of the Puget Sound Automobile Dealers Association. “Our dealers’ support has been incredible.” According to the dealers, the program and the students it turns into valuable employees is what’s incredible. “We’ve graduated over 20 students for both of our stores,” said Jason Courter of Honda Auto Center of Bellevue. “When we got involved in the late ’80s, we knew there would be a shortage of trained technicians based on the growth of Honda. It’s been fantastic. The Shoreline students are now the leaders of our shops, training the other techs.” Courter said the ongoing training for incumbent workers is also important. American Honda maintains corporate training centers across the U.S., with the Portland, Ore., center serving the Northwest. “The training at Shoreline is equal to the corporate center and it’s closer,” Courter said. “You put a tech on a plane or rent a car, then they stay there a week, it adds up. This sure saves dealers a lot of money.” 26

Courter said his father, Al Courter, played a key role in getting American Honda to support the Shoreline program. “It is a no-brainer to participate,” Jason Courter said. Mike Popke of Lynnwood Honda has a very personal connection to the program: “I actually went there for sales training back when the program first started. It was great.” Popke said the Shoreline program has been very helpful for the technican program at the store he runs with his wife, Wendy Nelson, and her brother, Erik. Popke said that besides being good technicians, SCC program students are good employees. “They’re good team members, they learn how to communicate,” he said. “We’re here to take care of the customer and, hopefully, get repeat business. To do that, you need somebody that can communicate.” Brad Miller, who participates through both his Toyota and Honda dealerships, said the program has helped with great technicians and more. “We sponsored one young man, Paul Svenkrud, through the Honda PACT program and he went up through the ranks and is now service manager at the Honda store,” Miller said. “He’s now one of the best service managers in the country. “Because of Paul’s relationship we generally have two students in the program at all times.” With students in class for one quarter and then at the dealership for a quarter, scheduling can be a challenge, Miller said. “But, it’s worth it on so many levels,” he said. “We take it a step further and pair the student with a mentor so they’re working one-on-one with someone.” Miller said the Shoreline program works because it meets the needs of the partners and the students. “In my estimation, (the program) is an example of government/private enterprise and partnership at its finest,” he said.

Scott Main Instructor GM-ASEP

Bob Biesiedzinski Instructor Honda PACT

Ken Campbell Instructor Chrysler CAP

Matt Spitzer, Instructor Toyota T-TEN

Scott is repeatedly honored by General Motors as the top GMASEP instructor in the U.S. He also teaches classes for GM Corporation. Scott graduated from the ASEPProgram he is now teaching.

Bob has repeatedly been recognized as American Honda’s most certified instructor in the nation. Bob has been instrumental in developing the SkillsUSA Competition for area high school automotive students.

When Ken was recruited for the position to teach Chrysler CAP, he was recognized by Chrysler Corporation as one of their top twenty-five technicians in the nation. He is now a Chrysler Master Technician.

Matt is honored as Toyota’s top TTen instructor. He is a Master Diagnostic Technician. Under his leadership, the program is ranked as Toyota’s best for three years in a row. Matt is a graduate of the program.

Mark Hankins Instructor GST Program Mark launched the GST Program at the PATC. Prior to this position, he taught the American Honda PACT program. Mark has a Master’s in Education.

Betsy Binnian Instructor GST Program Betsy teaches English as a second language, adult basic education and helps students who haven’t finished high school get their general education degrees (GED).

The Professional Automotive Training Center at Shoreline Community College

Snap-on Industrial and SCC: Innovation Works

T

he Snap-on Industrial division of Snap-on Incorporated, a leading global innovator, manufacturer and marketer of tools, equipment, diagnostic products, software and service solutions for technical professionals, has partnered with Shoreline Community College to launch Innovation Works. The new multi-function 3,000 sq. ft. facility offers training and technical certification in disciplines that range from

torque and diagnostics to multimeters and other technology tools. It will serve markets that range from manufacturing and energy to advanced propulsion systems. “Shoreline is an acknowledged leadership training center in the automotive market,� said Frederick Brookhouse, business and education partnership

manager, Snap-on Industrial. “With the launch of Innovation Works, Shoreline will reach a broader market with new technologies and the training demanded by the next generation of technical workers and their employers.� Snap-on Industrial offers the most expansive range of tools available – from hand tools to work stations – all designed, built and tested to meet the highest requirements for quality and performance.

Hunter and Shoreline: In alignment

F

or over 20 years, the strong partnership between Hunter and Shoreline Community College has produced thousands of top-notch automotive service technicians. We at Hunter give our sincere thanks to the Shoreline automotive program for its continued loyalty to our products. We are honored that the students who go on to represent Shoreline’s program as working technicians in the industry were trained using Hunter equipment. The opening of a new Hunter training center housed within the Professional Automotive Training Center expansion will only strengthen the instructional environment available to students. The two-bay shop and classroom

is equipped with Hunter’s stateof-the-art wheel alignment, wheel service and brake service equipment. Hunter Engineering has maintained a reputation for innovation and visionary leadership in the automotive service equipment industry for more than half a century. Our success is attributed to developing superior equipment designs and a commitment to creating lasting business relationships. Hunter Engineering truly appreciates the enduring relationship with Shoreline Community College and is dedicated to the growing success of the automotive pro-

gram. We look forward to helping start the careers of thousands of future technicians and supporting the numerous service shops who benefit from Shoreline’s program.

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hone Doctor’s popular video program on the Essential Elements of Internal Customer Service, are six steps to help you be sure you’re paying attention to the ‘lost customer,’ the internal one - the person you work with every day. Share this with your employees and ask them to learn it step-by-step. You’ll be glad you did.

Give this to your employees By Nancy Friedman

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You see your goals for the future.

We see the best path to get there. Dealership Services Team Spotlight: Mike Hopkins, CPA Mike is a Principal and serves in the Tax Services Department and Dealership Services Team. Being with Clothier & Head for 11 years, he has developed a broad knowledge base and vast experience in working with privately held businesses and individuals. Mike’s specializations lie in the areas of tax planning, tax preparation, and tax compliance, but what really drives him to achieve his goals is the notion that his professional support helps his clients achieve their goals; and success comes full circle. Meet the rest of our team at www.clothierandhead.com. 1301 Fifth Avenue, Suite 2800 Seattle, WA 98101 206.622.1326 phone 206.622.4486 fax e-mail@c-h.com www.clothierandhead.com

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Department Operations Consulting Dealership Valuation Cost Segregation Sales & Use Compliance Fraud Examination Internal Control Evaluation Tax Planning & Compliance Succession & Estate Planning Safeguarding Evaluation Merger & Acquisition Support

For more information, please contact Rick Rekdal, CPA or Mike Hopkins, CPA at 206.622.1326.

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$ERXW -DQHW For more than 20 years Janet has been handling travel arr rangements for the auto industry. She specializes in corporate meetings, leisure vacations and cruises, group conventions and incentive travel. For more information about this article or to have Janet help you plan your next get away, contact Janet Maines & Associates, A Full Service Travel Agency, 206-7820576. Toll free: 866-294-8747. Email: janetmassociates@aol. j @ com or on the web at www.jmtravelco.co j m.

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