Bulletin | November 2022

Kevin Shaughnessy, executive vice president and partner at Colorado Springs-based Phil Long Dealerships, is Colorado’s nominee for the 2023 TIME Dealer of the Year.

ABOUT OUR ASSOCIATION

Representing the franchised new car dealers of Colorado

The Colorado Automobile Dealers Association (CADA) is the voice of the automotive retail industry throughout the state. As the automobile dealer trade association, CADA advocates issues of importance to the auto industry in general, Colorado auto dealers in particular and Colorado's driving public.

The Denver Automobile Dealers Association started in 1914 to operate the annual Denver Auto Show. The Colorado Automobile Dealers Association was formed in 1933 by a small number of dealers. The two associations operated for almost eight decades together in one building with shared staff, and it became one organization in 2010. The history together now dates 108 years of automotive impact.

Today, our dealers range from small family-owned dealerships, to nationally owned multiple franchise corporations. CADA represents a united front for each of these new car and truck dealers. From local, state and federal public policy makers, to the public and the media, CADA is the voice for Colorado's auto dealers.

CONTACTUS

Colorado Automobile Dealers Association

290 East Speer Blvd Denver, CO 80203 303 831 1722 info@colorado auto www colorado auto

OURSTAFF

Tim Jackson, CAE, CMP President & CEO

tim jackson@colorado auto 303.282.1448

Marsha Temple Chief Operating Officer

marsha.temple@colorado.auto 303 457 5123

Matthew Groves

Vice President of Legal, Regulatory & Compliance matthew groves@colorado auto 303 282 1449

Beth Weir Controller beth weir@colorado auto 303 457 5120

Kim Jackson Marketing & Communications Director

kim jackson@colorado auto 303 457 5115

Mark Zeigler

Clear The Air Foundation Director mark zeigler@colorado auto 303.457.5105

Khorrie Luther Business Manager khorrie.luther@colorado.auto 303 457 5122

Qiana Emery

Member Services Coordinator qiana emery@colorado auto 303 831 1722

Jennah Duggan

Member Services Coordinator jennah duggan@colorado auto 303 831 1722

Brent Wood 2022 CADA Chair

HOWCADAIS LOOKINGFORWARD THROUGHGOOD NEWSANDBAD

With election day behind us and the economy still struggling, we need to think about how we ’ re going to deal with the challenges we face going into the next year. As I’ve said before, automobile dealers are among the most resourceful and resilient business people. We can find ways to survive and thrive in all sorts of conditions.

Unfortunately, the elections – at least here in Colorado – didn’t turn out as many of us hoped Clearly, the pollsters were misled and just flat-out wrong. I’m concerned for our state and our industry. You can read more about it in Tim’s column in this Bulletin.

CURRENTISSUESAFFECTINGDEALERS

Fortunately, the economy, while still weak, is showing signs of life. And that includes the issues that have had severe impacts on our industry.

Inventories are rebounding slightly. Obviously, they are nowhere near pre-pandemic levels, but we ’ re getting more deliveries

Used car inventory is also an issue as we receive fewer vehicles in trade One interesting side note has been the collapse of Carvana, which has had problems with title issues in multiple states This is when we should be grateful that dealers have competent staff to handle the necessary paperwork that goes with automobile purchases

Interest rates are obviously a challenge Like the housing market, higher interest rates mean our customers are paying more for less vehicle. On the bright side, inflation is showing signs of slowing down. The October numbers were heartening. The Federal Reserve has been saying there would be at least one more rate hike in December, but maybe it will hold off if the inflation slowdown continues

The shortage of technicians continues CADA’s support of the Clear the Air Foundation and its scholarship program helps, but we need to find ways to attract and keep qualified technicians

Gas prices have been coming down, although they are still high – usually north of $3 00 for a gallon of regular The price of diesel is still a huge challenge News reports attribute this to a shortage dating back to the pandemic Refineries stopped producing diesel because they anticipated less demand Demand now is very high, but the Russian invasion of Ukraine means that a lot of oil is being shipped abroad With only about 25 days of supply here in the U.S., the diesel shortage is expected to continue, meaning that high prices will, too.

Our technicians can’t interrupt the charging process to do necessary repairs and checkups Dealers are looking for ways they can pass on our higher electric bills to customers Meanwhile, electricity suppliers are already having trouble getting the energy they need to get power to our dealerships

December will be the last month I will serve as CADA’s chair. My mission this year has been to make sure I left things in a better place than I found them I think CADA has made some good strides this year Our Board of Directors has a great mix of wisdom and youthful energy Committees worked to ensure a very successful CADA Annual Member Golf Event, CADA Annual Convention and Colorado Automotive Hall of Fame induction dinner

It seems that consumers have finally decided that electric vehicles and hybrids are good options. News reports say that this has been the biggest year yet for EVs in the U S According to a report in Electrek, third-quarter sales of EVs topped 200,000 While there are problems with how the government wants to apply tax credits, the Inflation Reduction Act is expected to drive sales even higher

Supplies have not kept up with demand, so the Third Quarter sales have shown a slight decrease In my experience, when most buyers come in planning to buy an EV or hybrid, they drive away in a new, ultra-efficient and more available ICE vehicle.

There are still questions about battery production and disposal. One challenge for dealers has been keeping customers’ cars charged when they’re on our premises Without a very expensive Tier III fast charger, EVs take much longer to charge

A Financial Task Force is focusing on examining CADA’s expenses – looking at every line item, including personnel, communications methods and investment strategies. It’s a process that every dealer understands and practices. We’re also reviewing our legislative strategy and examining how to build and sustain relationships with both Democrats and Republicans in the legislature. We have to adapt and adjust with the times

I’m naturally an optimistic guy, so I’m looking forward to better days ahead – a better economy, better inventories and good health all around And, as we go into the holidays, cheers to you and yours

CONSUMERSAREFLIPPINGTHESWITCH

Tim Jackson CADA President & CEO

THEROADTOAWIN WASTOOBUMPYFOR COLORADO’S REPUBLICANPARTY

Oh, somewhere in this favoured land the sun is shining bright, The band is playing somewhere, and somewhere hearts are light; And somewhere men are laughing, and somewhere children shout, But there is no joy in Mudville mighty Casey has struck out.

Not to be flippant, but the old poem, “Casey at the Bat” resonates somewhat as we ’ re digesting the results of the midterm elections in Colorado The state GOP was Casey, and it struck out Our prognosticators at CADA, along with many professional pollsters, were blindsided It was predicted that the State House of Representatives would almost certainly stay in Democratic hands, but that there was a solid opportunity to flip the State Senate from blue to red

IMBALANCEOFPOWER

There is no joy here at CADA. The GOP has struck out, and not just by a little. It was a debacle, which is to say that the balance of power in the legislature that we hoped for and worked hard to achieve, remains elusive

Our philosophy is that government is always better served when there’s balance, in this case, a split legislature With Gov Jared Polis winning reelection convincingly, we’d hoped that there would be a split in the legislature: House Democratic and Senate

Republican It didn’t happen Instead, what we ’ re looking at is the most out-of-balance state government in more than 100 years

GETTINGGRANULARONSTATEHOUSELOSSES

The Colorado House of Representatives, which we knew would stay Democratic, is now even more lopsided than before, as much as two Democrats elected for every Republican The power of incumbency didn’t really hold as State Sen. Tammy Story beat Rep. Colin Larson in Dist. 25. Story decided not to run for reelection to the Senate, apparently because the newly drawn Senate District 4 was too red to ensure her victory there. Larson was hoping to run for Minority Leader of the State House of Representatives

In House District 43 Republican Kurt Huffman lost to Bob Marshall Huffman was appointed to the seat when Kevin Van Winkle was appointed to fill a Senate seat vacated by Chris Holbert It's a rare day when a Democrat can get elected in deep red Douglas County

The shellacking Republicans took in the State Senate was presaged by the party switch from GOP to Dem by Sen Kevin Priola Our calculus was that there were as many as seven seats that had a chance of going Republican Instead, the 2023 Colorado State Senate will be Democratic by 23 to 12

THESENATESCORECARD

The one prediction that panned out was in Senate District 4 (Western Jeffco, Douglas and some mountain counties), where Republican Mark Baisley beat challenger Jeff Ravage. Otherwise, it was a blue tide:

SAPPHIREBLUESTATEWIDE

Statewide, as Colorado Politics commentator Eric Sondermann put it, “We’re way past sky blue We’re a sapphire blue or something like that ” All of the top-of-the-ticket spots were claimed by their incumbents, and by healthy margins: Gov Polis the largest, followed by Sen Michael Bennet, Secretary of State Jenna Griswold, Attorney General Phil Weiser and Treasurer Dave Young It certainly was not what the pollsters predicted, especially in the Bennet-Joe O’Dea race for U S Senate O’Dea was trailing by just two points in a poll by the Trafalgar Group. Instead, it was a blow-out win for Bennet.

In the U.S. House races, the District 8 contest, which we were sure Barbara Kirkmeyer would win for the GOP instead was narrowly decided for Democrat Dr. Yadira Caraveo. The District 3 race, which virtually everyone thought would go for incumbent Congresswoman Lauren Boebert, instead went down to the wire with Adam Frisch And in District 7, where incumbent Congressman Ed Perlmutter has been a mainstay – someone we could work with –Democrat Brittany Pettersen handily upset Erik Aadland

District 3 (Pueblo) – Nick Hinrichsen, appointed to fill the vacancy left in February by Senate President Leroy Garcia, who left to take a position in the Dept of Defense Hinrichsen successfully defended his seat against Stephen Varela. District 8 (Western Slope and mountain counties) –Democrat Dylan Roberts beat Matt Solomon in what was expected to be a fairly competitive race. District 11 (El Paso and mountain counties) –Thomas “Tony” Exum Sr. beat down incumbent Republican Sen Dennis Hisey, both considered moderate members of their respective parties District 20 (Jeffco) – Democrat Lisa Cutter was the victor over Tim Walsh Jefferson County, like Arapaho County, has been drifting from solidly conservative to moderate in the past few years District 27 (Arapco) – Democratic incumbent Sen Tom Sullivan held off his challenger, Tom Kim

Most of the statewide ballot issues did not present a problem for Colorado’s new car dealers One bright spot there was the voters’ decision to lower the state income tax rate from 4.5% to 4.40%. However, any savings were probably gobbled up by tax issues that provided funding for additional affordable housing and a tax increase to provide meals to Colorado’s school children.

WHYDIDITHAPPEN?

Why did it turn out this way? One state senator told me that a big reason is the half-million unaffiliated voters expected to “hold their noses ” but vote GOP. Instead, it appears many of them voted Democratic. The abortion issue – spurred by the U.S. Supreme Court’s Dobbs decision in May – turned out to have motivated female voters, especially Democrats, more than many people guessed There’s been a huge influx of young, collegeeducated voters who’ve moved into the Denver metro area in recent years

along with Democratic State Rep Rhonda Fields Instead, Woodward lost, and we’ll need to find another Republican Senate co-primary sponsor

It’s fair to say that the state legislature’s Environmental Caucus had a great night, which may prove to be a big problem for dealers. In Colorado’s primary elections, Republicans – with the help of a lot of unaffiliated voters – chose more moderate candidates, while Democrats seemed to choose candidates leaning more to the extreme left. The result likely will be some pretty tough transportation and energy sector bills

Ironically, Gov Polis may turn out to be one of our biggest allies CADA’s Matthew Groves predicts that the far-left legislators will try to push him to agree to more extreme positions He may need our assistance and we’ll be happy to provide it There’s a good possibility that ETRP – the Employee Traffic Reduction Plan – that we ’ ve managed to scuttle twice previously – will resurface as a bill, although Groves thinks it may become a federal mandate demanded as part of curing the Front Range’s air quality problems.

It’s also impossible to discount the role of money Democrats raised more and spent more than Republicans, including money coming from outside Colorado Candidate quality may have also figured into the GOP’s defeat

Did the “Save Democracy” meme figure in? It did, in my opinion, along with the constant news about the January 6th and “The Big Lie.” It’s fair to say – and I think most of our members will agree – that former President Trump needs to get out of the way and let the Republican Party and the entire country move forward.

WHATDOESITMEAN?

These election results could have meaningful impacts for CADA members. For example, we are planning to go back to the state legislature with a bill to clarify and improve dealers’ position with regard to retail reimbursement for warranty work. State Sen. Rob Woodward was set to be our GOP co-primary sponsor,

CADAWILLKEEPONKEEPINGON

Whatever comes, CADA will be ready We have always, cultivated friends and allies on both sides of the aisle and will continue to do so, building coalitions with Democrats who understand our

business It is what has saved us on previous threats such as direct-to-consumer vehicles sales (aka “The Rivian bill”) It helped when we sought a compromise on last year ’ s mega-transportation bill

We will continue our aggressive pursuit of Legislative Grassroots Meetings (LGMs) and why we ask our members to cultivate relationships with their own legislators – fostering an understanding of how much our industry contributes to Colorado’s tax base, employment numbers and overall economy and

respond to our issues It also informs our support of the Clear the Air Foundation, which is a tangible example of our desire to help fight air pollution

We didn’t get most of what we expected and wanted out of these midterm elections. Our work is cut out for us, but as every new car dealer knows –we know how to adapt, survive and thrive. Your association will continue to be on the job for you, ensuring the franchised dealer model continues to be allowed to serve and protect consumers into the future

A TEMPORARY AUTO SALES GIG GROWS INTO A TIME DEALER OF THE YEAR NOMINATION

“I was offered an academic scholarship at a New Mexico University. It felt exotic and far away. People drove pickups. It felt like the Wild West. I loved the blue skies and wide-open spaces. I came out here at 18 and have never lived east of the Mississippi since.”

Kevin Shaughnessy, executive vice president and partner at Colorado Springs-based Phil Long Dealerships, is Colorado’s nominee for the 2023 TIME Dealer of the Year He was nominated for the annual national award by CADA and President Tim Jackson Kevin is one of 48 U S dealers who will be honored at the 106th annual National Automobile Dealers Association Show in Dallas in January

The Ohio native might be described as an “accidental car guy, ” since he didn’t come from an automotive family, and didn’t study or train to be an automobile dealer Nor did he grow up in the West

Escape to the Wild West

Kevin grew up in a small, blue-collar suburb of Dayton, Ohio General Motors once had a plant there, but his father was a professor of mathematics – statistics and calculus –at the University of Dayton. “It was pretty much a sure thing that that was where I was going to go, ” he says. But Kevin had other ideas. “I had a greater sense of adventure than staying in my home town.” It included getting far away: Eastern New Mexico University, in Portales.

An injury during his final semester meant withdrawing before graduation. When his roommates graduated and headed to Albuquerque, he did too. “I took a sales job at Ken Johns Lincoln-Mercury as a short-term gig to figure out what I was going to do. I didn’t expect to love it, but I did. That was 32 years ago. ” A car guy was born.

Hitting the Automotive Big Time

Kevin worked his way through the departments, appreciating the learning opportunities. When he was recruited by Rich Ford, “It was like the big time – being called up by the Yankees.” He grew more under the tutelage of friend and mentor, Mike Blair. In 2003, when Blair became managing partner at a San Antonio, Texas’ Fiesta Dodge-Lincoln-Mercury, Kevin went along.

Blair came to Colorado in 2005 and wanted Kevin to join him, but Kevin stayed in San Antonio. Blair was recruited through 20 Group connections to join Phil Long Ford Denver in 2006 and asked again. Kevin and his wife, Holly, came to visit, liked what they saw and “immediately called a real estate agent and sold our house.” They’ve been in Colorado since October 2006.

From One Store to Many

He started with Phil Long Dealerships and Jay Cimino (“an automotive genius”) as general sales manager at Phil Long Ford of Denver He became general manager in 2011, buying an interest and becoming managing partner in 2013 “I was there until April 2018, when Jay Cimino called and asked me to be the VP of Operations, overseeing the entire group ” Then there were 14 stores; today there are 16 in Colorado and New Mexico The group represents Audi, Chevrolet, Chrysler, Dodge, Ford, Genesis, Honda, Hyundai, Jeep, Kia, Lincoln, Mercedes-Benz, Ram, Subaru and Toyota

Kevin has been a leader in the Ford National Dealer Council and Colorado Ford Dealers Advertising Fund Ford’s Colorado efforts have included partnerships with the Special Forces Foundation, Shield616, Pikes Peak International Hill Climb, Craig Hospital, the Colorado Avalanche Most Valuable Teacher Awards and more He was appointed by Gov Jared Polis in 2020 to serve on the Colorado Motor Vehicle Dealer Board

People-Centered Philosophy

A large part of what drew Kevin to Phil Long is the group ’ s overarching philosophy of business Early in his career he recognized that the auto industry didn’t always have a great reputation “I decided I was going to change that one customer at a time and give people what they felt they lacked for an otherwise negative experience Today the mission hasn’t changed, I just have the ability to do it on a larger scale ” Kevin says he immediately sensed that Jay Cimino shared the same ideals “Customers, employees, vendors, competitors treat people right and it all comes back in the long run ”

Kevin shuttles between his Roxborough Park home, Phil Long Ford of Denver’s office and the group ’ s headquarters in Colorado Springs’s Motor City “It allows me to visit stores on the way We have a lot of construction projects going on and there’s a lot to see ” During the hour drive from home to Phil Long Ford in Motor City, Kevin says modern technology allows him to get a lot accomplished

Kevin tells a story about when a Phil Long Ford employee saw a television news report about a woman with disabilities whose car had been stolen “He asked if we could help ” A connection was made through the TV station and a car provided “I realized I forgot to check with my partner before giving away a car I was acting autonomously, but I was the minority partner I told Jay what we were doing, and apologized for acting without consulting him He hugged me and thanked me for living up to our values ”

Those values have led to a corporate philanthropic arm, overseen by Jay Cimino’s daughter, Gina Kevin leads the group ’ s Corporate Sponsorship and Philanthropy Committee He serves on the board of the nonprofit Mount Carmel Veterans Service Centers, which Cimino founded At locations in Pueblo, Fountain and Trinidad more than 13,000 veterans and their significant others have received counselling, dental and vision care, wellness, job placement and even temporary housing assistance

Helping Hand

Recently, Phil Long Dealerships provided $100,000 for people displaced by the war in Ukraine. The funds support humanitarian efforts and provides medical supplies to those on the conflict’s frontline through Catholic Relief Services and Coloradobased Project C.U.R.E.

Kevin oversees the annual United Way workplace campaign, which realized more than $178,000 in donations from the group ’ s employees. He also supervises Phil Long’s partnership with the Susan G. Komen Colorado Race for the Cure, including financial support and events surrounding it. “We recognize how many lives breast cancer touches. Ford has been a long-time supporter and we love doing it as a company, ” he says.

He counts among those people his wife of 28 years, Holly, whom he married in Albuquerque The couple has two children – Jack, almost 15, and Ryan, almost 13, attending their concerts and games is one reason he likes to be home every night. “I have a remarkable family and all that is pretty good motivation for wanting to be successful and try to make the world a better place while we do it.”

Colorado TIME Dealer of the Year Nominees

1970 - 2023

2023 Kevin Shaughnessy

2022 Phil Winslow

2021 Christina Dawkins 2020 Fletcher Flower 2019 Mary Pacifico-Valley

2018 Todd Maul 2017 Bill Hellman

2016 Bob Penkus

2015 Scott Ehrlich

2014 Bob Ghent

2013 Jay Cimino

2012 Mike Shaw

2011 Doug Moreland

2010 Jack TerHar

1996 Lloyd Chavez

1995 Jim Reilly, Sr 1994 Herrick Garnsey 1993 Roland Purifoy 1992 Jim Suss, Sr 1991 Doug McDonald 1990 Bob Markley 1989 Bob Fisher 1988 Harry Dowson 1987 Joe Luby 1986 R W Dellenbach

1985 Hugh Tighe

1984 Florian Barth 1983 R S Doenges

“Mobilizing the employees of our dealerships creates a small army of over 1,200 people to do good in our communities. It is the aggregation of all the good that we have been able to do – small acts and large – that is the most rewarding thing about being a car dealer,” he says.

Good Family and Good Fortune

Kevin Shaughnessy is clearly someone who still enjoys what he does. “I’ve been fortunate throughout my career. If I have a gift, it is the ability to recognize the talent and wisdom of others and latch on to it. If I’ve had any advantage it’s been that I’ve been surrounded by good, generous, wise people, and I was able to pay attention to it.”

2009 John Medved 2008 Don Hicks

2007 Lisa Schomp

2006 Barbara Vidmar

2005 Jeff Carlson

2004 Jim Morehart

2003 Lee Payne

2002 John Schenden

2001 Dean Dowson

2000 Kent Stevinson

1998 Fred Emich, III

John Clatworthy

1982 Jack Maffeo 1981 Nate Burt

1980 Dwight Ghent

1979 Tony Fortino

1978 George McCaddon

1977 Gene Wilcoxson

1976 Ralph Schomp

1975 Al O’Meara 1974 Charlie Williams 1973 Vern Hagestad 1972 Dick Deane 1971 Gene Markley

1970 Russ Lyons

ABUSYMONTHFORTHECLEAR THEAIRFOUNDATION

It’s been a busy month for the Clear the Air Foundation We held our third advisory council meeting where we had a guest speaker George Arrants, VP with the ASE Education Foundation, talked about the ASE Registered Apprenticeship Program This is a formal program which helps solve the leaky school to work pipeline

Didyouknowthatonly59%ofautomotivetechnologygraduatesareworkingin theindustryaftertwoyears?

One of the solutions to this problem is to get students working in industry while they are still in school, preferably in high school. This will allow students to gain real-world experience while continuing their education. If you are interested in hearing more about this, and perhaps participate in the program, please contact me at mark.zeigler@colorado.auto.

I had an opportunity to visit Weld County Garage recently so I could recognize two recent scholarship recipients David Roman and Brandon Molina attend Aims Community College and work at Weld County Garage They both received a tool scholarship, which will allow them to pursue their goal of becoming an ASE Master Certified Technician

David is in an apprenticeship role, and Brandon was just moved to the main line the day after this picture was taken. They are both thrilled with the nearly $5,000 worth of tools they received, and are looking forward to a long career.

While I was there, I spoke with Dave Slone-GM about the recently implemented Tip for Tech Scholarships program This program allows any customer making a credit card payment to add a “tip” which will go towards the Clear the Air Foundation scholarship program. He said the customer’s response has been good, with many adding several dollars to their bill to help the cause. We are working with Janet Sanders at Incom Direct, a CADA Endorsed Provider, to add this functionality to any dealership regardless of which credit card processor they are signed up with. There is no cost to sign up, it’s easy to do and we can help coordinate the process. Please reach out to me if you ’ re interested in participating or to learn more.

PaulMcClain-ServiceDirector,BrandonMolina-Apprentice,MarkZeigler,DavidRoman-Apprentice,KristyMontoya,AssistantServiceManager

Mike Maroone Chevrolet South

Pueblo Toyota Dellenbach Motors

The Faricy Boys Ford Pueblo Dodge Chrysler Jeep Ram O'Meara Buick GMC

The Faricy Boys AutoNation Chrysler Jeep Arapahoe Hellman Motor Company O'Meara Ford

Mountain States Toyota BMW of Loveland

Perkins Motors Johnson Auto Plaza Schomp Honda Schomp Subaru Stevinson Toyota West Faricy Boys Automotive Salida Mike Maroone Honda O'Meara Collision Center

O'Meara Volkswagen

Phil Long Ford of Chapel Hill Schomp Hyundai Stevinson Toyota East Markley Motors

Phil Long Honda of Glenwood Springs

Phil Long Hyundai of Chapel Hills

Phil Long Valucar Schomp Nissan AutoNation Chrysler Jeep Broadway Emich Volkswagen

Emich Volkswagen of Boulder Foundation Chevrolet Freeway Ford Honda of Greeley Mile High Honda Peak Kia North

Phil Long Lincoln Schomp Ford Schomp Mazda Shortline Buick GMC

Summit Ford Berthod Motors Castle Rock Ford

Dave Solon Nissan Elway Chevrolet Emich Chevrolet Fisher Honda Foundation Hyundai of Boulder Foundation Kia

Fuoco Honda Hyundai of Greeley

King Chevrolet Buick GMC Longmont

Mike Maroone Ford of Longmont

Mountain Chevrolet

Phil Long Ford of Denver

Phil Long Glenwood Springs Subaru Pikes Peak State College

Planet Honda Schomp BMW

38 17 5 300 OCTOBER YEAR-TO-DATE TOTAL

9 8

O'Meara Buick GMC

5

1 22

17 Mike Maroone Chevrolet South Mike Maroone Honda Mike Maroone Ford Longmont MIKE MAROONE TOTAL 18 4 1 23

Foundation Chevrolet Cadillac Foundation Kia Castle Rock Ford Foundation Hyundai of Boulder FOUNDATION TOTAL

Chevrolet EMICH TOTAL 2

Volkswagen Emich Volkswagen of Boulder

Matthew Groves Vice President of Legal, Regulatory and Compliance

ELECTIONRESULTS DEFLATEWORSE THANANEW ENGLAND FOOTBALL

For most of the campaign season, I avoided the television. Nobody wants to watch political ads on loop. Then came the football season – and the World Series – and the inevitable became, inevitable. Like many of you, the national narrative caught my eye. This Tuesday was supposed to be the greatest election day for Republicans since 2010. It gave me electricity, and for the first time since I’ve been in Colorado, hope.

In the buildup to November, we were serenaded by politicians estimating Republicans would take 1 to 2 statewide offices, possibly control of the Senate, and significantly narrow the gap in House. In the federal delegation, Colorado could return to a ‘purple’ state, with even splits in the Senate and the Congress This came with a catch, an ask for dealers to stretch themselves and invest heavily in the Republican party and its candidates You answered the call So, how did we lose seats every competitive seat in the state?

The list of causes is long Legacy pollsters – relied upon for decades and receiving top dollar for polling –predicted the US Senate race was separated by 1 5 points Michael Bennet won by 12%, a misjudgment of 235,000 votes How can candidates assess strategy when they can’t track public sentiment closer than a 10 5% margin of error?

Last month, Ron Hanks (lost the Republican primary) encouraged supporters to vote for the Libertarian candidate, rather his own party. Danielle Neuschwanger (lost the gubernatorial primary) decided to re-register as a third-party candidate and continued to attack Heidi Ganahl. In many states, party elders would quietly quash dissent in the ranks. Regrettably, no such leadership exists within the Colorado Republican Party. As Lincoln says, ‘ a house divided cannot stand.’

While the list goes on, the reason is immaterial. The reality is, we ’ ve lost. We’ve lost balance, we ’ ve lost friends, we ’ ve lost influence, and we ’ ve lost trust with our government. Naturally, we ’ re frustrated. Investing in politics should come with better returns than the Powerball, otherwise, it’s not an investment - it’s charity As fate would have it, the will of Colorado’s 6 million citizens is not with us this year

This result impacts our industry and our plans for the future. One of our 2023 bill sponsors is unlikely to return (vote counts pending). Because the 44% of Coloradans who register independent were with us in the primary, but not in the general, not only did we get a slew of new Democratic candidates; we got a handful of radical Democratic candidates. Without independents voting in the Democratic primary, they were unmitigated by a process that tends to moderate.

Still, in this moment – and in this valley - we urge you not to lose faith. While political parties may disappoint you, CADA has faithfully represented your interests to legislatures of both affiliations. We will continue to do so in 2023 and beyond. Even before this election cycle, CADA held dozens of grassroots meetings with Democratic members and candidates to ensure that our wounds would not be fatal if our political bets did not hit

Arising from each tragedy is an opportunity CADA’s strategic planning session will be a time for our Board to identify the opportunities before us and seize the moment to develop new relationships with those who remain standing This is what we are good at – and we are not starting from scratch We will not let the legislature we wanted keep us from being successful with the legislature we have We will be prepared, though cautious, for the next election cycle and the new opportunities it brings As Maya Angelou said, “ every storm runs out of rain ”

FTCEXTENDSSAFEGUARDSRULE COMPLIANCEDEADLINE

The Federal Trade Commission today announced it is extending the deadline by six months for companies to comply with some of the amendments to the FTC’s Safeguards Rule Earlier this year, NADA submitted comments to the FTC seeking an extension of the deadline The deadline for complying with some of the updated requirements of the Safeguards Rule is now June 9, 2023.

Provisions of the updated rule specifically affected by the six-month extension include requirements that covered financial institutions: 1

Designate a qualified individual to oversee their information security program Develop a written risk assessment

Limit and monitor who can access sensitive customer information, Encrypt all sensitive information Train security personnel

Develop an incident response plan. Periodically assess the security practices of service providers. Implement multifactor authentication or another method with equivalent protection for any individual accessing customer information.

Dealers are encouraged to continue in their efforts to expeditiously comply with all the new requirements of the Rule but should consult with their attorneys, service providers, and IT professionals about the potential impact of this deadline extension.

For more information: www.nada.org/safeguardsrule

As a reminder, CADA has endorsed ComplyAuto for FTC Safeguards compliance. For an introduction, please contact Matthew Groves at matthew.groves@colorado.auto.

Endorsed Provider of the