Changing the Way We Communicate

CADA is your voice at the Capitol. Our job is to determine your concerns, communicate them clearly to lawmakers and regulators and report back on how legislation and regulations impact your business. We have a responsibility to perform these tasks well – period.

Our communications have metastasized over my five years at CADA: advertisements, solicitations, aggregations of industry news and political whisperings. We’ve cluttered your mailbox and consequently lost a lot of our credibility and also your trust.

When OTM stepped in to fill the void left by the departure of Kim Jackson, they pulled analytics on our communications department. They revealed CADA sent 100,000 emails in 2022. Clearly, CADA is overcommunicating with members. The Association cried wolf several thousand too many times. Predictably, readership fell – by startling numbers. Not only did we lose your attention, but we diminished the value of what we sent to the sponsors who helped pay for it.

I’ve made it my first priority as CEO to change the way –and amount – we communicate. I want to rebuild trust and re-engage you in our conversation. Another discovery we made was that as your General Counsel, when I sent a separate email or hosted Zoom meetings for your staff members – outside of our communications program – those emails were opened at a rate almost 65 points higher than our standard publications.

Why this huge discrepancy? I believe it could be my three-fold commitment to dealers:

• We start meetings on time and end on time. As someone who loves to write, I avoid unnecessary words, written or spoken. You’ve probably also noticed that I don’t sit still well.

• I never ask you to ‘take it from me.’ I always cite a primary source or provide a government official to update you.

• I never ask you for money. My regulatory Zooms are always free to you – at your desk, because the information is more important than profit.

While the change in my job duties may have to alter that commitment to a degree (I am now responsible for our P&L), I still believe in outlining the relationship from the outset. So, here is what I am proposing for 2023 and beyond:

1. CADA is going to talk less and listen more. Our meetings will be discussions, not presentations. We’ll ask where you want to go, not tell you where we’ve been. We will do our best to engage everyone – even those who’ve taken a break from us. And we will always explain the why behind our decisions.

2. CADA will not regurgitate the news. You’re already reading industry publications and major media sources. We want to tell you what’s happening with us, not what’s happening in the world. Hopefully, this focuses your feedback into actionable items for the Board.

3. CADA will meet you at your level of interest. Like an Axios newsletter, we present headlines, a brief take, and resources to dig deeper. You can take and use what’s of interest to you.

You may have already noticed the change. By digitizing the CADA Bulletin in January, we saved a substantial printing and mailing expense. My goal is to make your Open Road fit on an 8 ½” x 11 ½” sheet of paper. If you can’t read while drinking a cup of coffee, it’s not effective.

More change is on the horizon. This spring, we will roll out a new plan for how we conduct CADA’s regional meetings and legislative grassroots meetings. We will focus more on individualized engagement and more time in dealerships, with less frenetic travel around the state. For now, though, I’m just asking you to stay tuned. I think you’ll like what you see.

Will Franchise Dealers Benefit from EV Market Volatility?

Financial analysts predict months of economic “volatility,” and among the most volatile sectors is automotive. Just look at how some automotive startups have fared. The realization that electric vehicles were going to become a serious market spawned a slew of new nameplates. Some failed, some have limped and one – Tesla – has dominated the public’s imagination and become an economic juggernaut.

The new vehicles on offer are sexy. Many consumers enjoy feeling they’re on transportation’s cutting edge, but it comes with risks. Among them is these startups’ shaky financial underpinnings, especially during a period of volatility.

Stock Prices Fluctuate Wildly

Tesla has ridden a huge financial wave. By capitalization, it’s the eighth-largest publicly traded company in the world. But, as reported by Forbes Advisor, “Shares fell 65% during 2022 as interest rates rose and the tech sector got crushed (and the company’s CEO, Elon Musk, dallied with Twitter).

“This price collapse signals to investors how risky the EV space can be.” Stock prices rose on Musk’s announcement at the mid-May shareholders’ meeting that the Cybertruck is coming this year, and the Roadster in 2024. Although Tesla’s been in business for almost 20 years, its first annual profit was in 2020; its Q1 profit was $2.5 billion, which was almost 25 percent less than Q1 2022.

Signs of an EV Shakeout?

And some of the other better-known EV startups, e.g. Rivian, Lucid and Fisker? A report in the Washington Post (5/11/2023) trumpeted: “EV makers poised for a shakeout – just like the early days of auto industry.”

The report gathered these nuggets:

• Valuation spiked at IPO: Lucid - $91 billion, Fisker - $8 billion and Rivian - $127. Tesla went public in June 2010, raising $226 million with a market cap of $2.3 billion.

• Market values are down 75 percent or more with large losses and falling cash: Lucid – Q1 loss = $779+ million; Fisker – Q1 loss = $120 million; Rivian – Q1 loss = $1.3 billion.

• Stocks are volatile: Tesla was at $409.97 in November 2021 - $182.90 on May 24, 2023; Lucid was at $55.21 in November 2021 – $7.60 on May 21, 2023; Rivian was at $172.01 in November 2021 - $14.38 on May 24, 2023; Fisker’s all-time high was $28.50 on February 26, 2021 - $6.79 on May 24, 2023.

Cox Automotive’s Michelle Krebs predicted a major upheaval is imminent, noting in the Post story that “ultimately there was a shakeout of just a few players and that just happened to be in Michigan…It’s déjà vu.” Higher interest rates are affecting startups’ funding acquisition, while established manufacturers with many franchise dealers can self-subsidize with revenues from gas-powered vehicle sales. They’re coming on strong, riding on profitability and ability to scale more quickly.

Affordability Is Still a Problem

J.D. Power reports that 26.9% of car shoppers say they are “very likely” to consider an EV. The number has stayed flat due to pricing and infrastructure concerns. Government subsidies only cover a few models because of requirements on assembly location and where battery and components originate. In fact, Tesla is the only non-legacy manufacturer whose models qualify for either full or partial government subsidy. Every other model that qualifies is made by Ford, GM or Chrysler/Jeep. Chinese offerings won’t be eligible, but Japanese and Korean makers, now considered “legacy brands” in the U.S., are racing to meet the criteria as they expand their EV offerings.

Business Insider reported, that “Chinese brands have mastered the quality and affordability of electric vehicles … are poised to arrive in the US” (5/16/2023). China sold about five million last year, compared to about 800,000 in the U.S. Contrast that with the ‘70s, when efficient Japanese imports disrupted the market and more recently, Korean brand penetration in SUVs. The report concluded, “History may repeat itself. Chinese EV manufacturers can gain a foothold in the US by coming in at a budget price point, analysts said.”

Finally, there’s the question of how well startups are able to serve customers. Lucid only has “studios” in a handful of major metros and “Fisker Lounges” are even fewer. Rivian is still mostly direct-to-consumer, but has 34 service centers throughout the U.S. Pied Piper, a major secret shopper outfit released its 2023 “Prospect Satisfaction Index®” (PSI) ranking auto brands by PSI and “Internet Lead Effectiveness®.” Rivan, Tesla and Lucid were all ranked at the very bottom.

Safety first: Password management best practices for dealerships

In today’s world, managing an endless stream of passwords is a fact of life and business. Here’s how you and your employees can take steps to build stronger passwords:

Begin with these password essentials

Password security requires building unique, complex passwords that can’t be easily guessed. Start with these three best practices:

• Make them long (aim for at least 10 to 12 characters, but 16 to 18 or even 20 is even better)

• Avoid using common names, places and dictionary words

• Use a random mixture of uppercase and lowercase letters along with numbers and symbols

Try turning a sentence or phrase into a password

Creating strong passwords is one thing, remembering them is another. To give your brain a break, consider a sentence or phrase you can easily recall. Then, combine that approach with the tips from above — by spelling out the phrase with letters, numbers and symbols. For example:

• I used to live in Wisconsin= iu$ed2l!vNW!

• Summer rain clouds = suM3rra!nclwdZ

Give your memory a fighting chance

If you want to harness the power of a memorization method, apply the PAO (Person-Action-Object) method to your password creation. With this method, you visualize a person, an action and an object, then create a story. For instance, if your words are:

Person: Tom Hanks

Action: reading Object: coffee

Then the story would be: Tom Hanks is reading with a coffee. Once you have the story down, create a password using the tips from above, like THnxRd!ngcf3e.

Don’t reuse the same password

Using the same password for all your devices and accounts is the virtual equivalent of putting all your eggs in one basket. One data breach could put all of your information in jeopardy, everywhere you’ve used that password.

Enable multi-factor authentication

Many sites and services have added additional layers of security to help protect users and avoid account breaches. Depending on the site, it may email or text a code to confirm your identity every time you log on. By enabling multi-factor authentication when possible, you can add another barrier between your personal information and cybercriminals.

Sign up for a password management service

Another way to keep track of your passwords is to sign up for a password management service for your business. These services encrypt and store your passwords for you and even generate random new passwords when needed.

Generally, these solutions require a single master password that allows each user to access their stored information. Using one of these services for your business can help you get all of your employees on the same page with password security.

Security is the foundation of customer trust

The final piece is to make sure your whole team is following these best practices. Your business is only as secure as your weakest password, so make sure to distribute best practices and regularly remind team members to update and refresh their secured logins.

With the Denver Auto Show in the rearview mirror, I’m happy to report that the Hall of Fame and Preview Gala generated some much-needed revenue for the Clear the Air Foundation. This was accomplished in no small part by the following individuals who won trip auctions provided by AmFund:

• Elizabeth Hayes – Spain Andalusia

• Kim Calaway – Costa Rica

• Allison Carow – Greece

• Evan O’Meara – Venice

• Jasmine Bracamontes – Royal Chateaux & Champagne

• Corey Hall – Scottish Highlands

• Mike Ward – Tuscany Into the Wine

• Nancy Ariano – Tuscany Into the Wine

I hope all of you have a fabulous trip and thank you for your support! Your generosity is life-changing for the scholarship recipients.

Clear the Air Foundation 2023 Year-To-Date Vehicle Donations

7 Pueblo Dodge Chrysler Jeep Ram

6 Alpine Buick GMC South

5 AutoNation Chrysler Jeep Broadway

5 Mike Maroone Chevrolet South

5 The Faricy Boys

4 Dellenbach Motors

4 O’Meara Ford

4 Spradley Chevrolet

4 Summit Ford

3 Markley Motors

3 Mountain States Toyota

3 Phil Long Ford of Denver

3 Phil Long Ford of Raton

3 Schomp Honda

3 Schomp Nissan

3 Schomp Subaru

2 Berthoud Motors

2 Hellman Motor Company

2 Perkins motors

2 Phil Long Ford of Motor City

River Bridge Regional Center Selected as Hometown

Charity for 2022 Subaru Share the Love® Event

Phil Long Glenwood Springs Subaru and Subaru of America support local child sexual assault victims; April is National Child Abuse Prevention Month

2 Phil Long Honda of Glenwood Springs

2 Schomp Ford

2 Schomp Hyundai

2 Sill-Terhar Motors

2 Stevinson Toyota East

2 The Faricy Boys Ford

1 Castle Rock Ford

1 Durango motor Company

1 Emich Chevrolet

1 Emich Volkswagon of Boulder

1 Groove Toyota

1 John Elway Chevrolet

1 Johnson Auto Plaza

1 McDonald Automotive Group/ Audi Denver

1 Mike Maroone Buick GMC

1 Mike Shaw Subaru

1 Morehart Murphy RAC

1 O’Meara GMC

1 O’Meara Volkswagen

1 Peak Kia North

1 Phil Long Ford of Chapel Hill

1 Phil Long Glenwood Springs Subaru

1 Phil Long Valucar

1 Schomp Mazda

1 Stevinson Toyota West

1 Subaru of Pueblo Other Donations

10 Fort Carson

5 Private Donation

1 Warren Tech

Dealer Total = 105

Other Total = 16 2023 YTD

Donations Total = 121

GLENWOOD SPRINGS, Colo., April 25, 2023 – Phil Long Glenwood Springs Subaru presented a check in the amount of $15,500 to River Bridge Regional Center earlier today as a part of the 2022 Subaru Share the Love® Event. This is the second year-in-a-row the nonprofit was selected for their impact and support provided to the growing number of child sexual assault victims in Pitkin, Garfield, Eagle, and Rio Blanco counties. The check presentation occurred at 12 p.m. at the dealership, with representatives from Subaru of America, Phil Long Dealerships, Glenwood Springs Chamber of Commerce and River Bridge, along with employees and partners of the retailer.

This year’s donation, a sizeable increase from the prior year’s $13,000, will be directed to the nonprofit’s Bridges to their Futures Campaign. The aid will help over 250 children this year receive supportive services from River Bridge, including forensic interviews, mental health assessments, therapy, referral, medical treatment or consultation, and provide the community with child abuse awareness and prevention education.

According to the Centers for Disease Control and Prevention, an estimated 1 in 4 girls and 1 in 13 boys in the United States experience child sexual abuse. Nationally recognized in April, Child Abuse Prevention Month highlights the importance of families and communities working together to prevent child abuse and neglect.

“The Subaru Share the Love® Event brings together our employees and customers to make a difference in our community,” said Carroll Winkler, general manager of Phil Long Glenwood Springs Subaru. “It is extremely gratifying to know that we are directly helping our vulnerable children to receive the help they need to move forward to rebuild their lives and forge brighter futures. I am thankful for Subaru of America for their commitment, to River Bridge for their continued impact, my dedicated employees, and our customers, who are the driving force in our ability to provide this assistance.”

As part of the Subaru Share the Love® Event, retailers were able to select a hometown charity that touched their local community’s heart and met various requirements, including the charity does not harm animals, is environmentally responsible, and ensures donations are being used for the charitable mission and not administration costs.

From November 17, 2022 to January 3, 2023, with every new Subaru purchased or leased, Subaru of America and Phil Long Glenwood Springs Subaru, together, donated $325 to each customer’s choice of local or national charities, including River Bridge Regional Center, The American Society for the Prevention of Cruelty to Animals®, Make-A-Wish®, Meals on Wheels America and the National Park Foundation. Additionally, Subaru of America and the retailer provided a donation for every Phil Long Subaru vehicle routine service visit during the campaign period.

“Phil Long Subaru understands the importance of supporting our community’s nonprofits, the unique services, and the quality of life they provide for our community. River Bridge is honored to be a recipient of this year’s Share the Love Giving Campaign, helping raise funds to support our child victims of abuse and non-offending family members with the essential services to promote hope and healing,” said Mary Cloud, development director of River Bridge Regional Center. “Together we are coming closer to creating a community where children are safe, families are strong, and where all abused children are believed, supported and able to heal.”

Over the last 15 years, through the Subaru Share the Love Event®, Subaru of America, Inc. and participating Subaru retailers have donated more than $256 million to charity, with customers choosing between four national charities and over 2,100 hometown charities.

Phil Long Glenwood Springs Subaru received the 2023 Subaru Love Promise Community Commitment Award, which nationally recognizes Subaru retailers who are making a world a better place while demonstrating an outstanding commitment to supporting passions and causes in local communities, such as the environment, community, health, education, and pets. Phil Long Subaru has been recognized by the manufacturer eight times for excellence over the last eleven years.