Bulletin | November 2022

November 2022 Volume 23 | Issue 10

PLUS How recent election results blindsided the Colorado Republican Party - Page 10

Colorado's 2023 TIME Dealer of the Year Nominee

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. Page 14

NOVEMBER 2022 VOLUME 23 | ISSUE 10

WWW.COLORADO.AUTO

CONTENTS 06

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CADA CHAIR

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CADA PRESIDENT

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COVER STORY

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LEGAL / REGULATORY

How CADA Is Looking Forward Through Good News and Bad

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The Road to a Win Was too Bumpy for Colorado’s Republican Party

A Temporary Auto Sales Gig Grows into a TIME Dealer of the Year Nomination

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Clear the Air Foundation Column CTAF Donation Tracker Federated Claim of the Month FTC extends Safeguards Rule compliance deadline

Election Results Deflate worse than a New England Football

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CONTACT US Colorado Automobile Dealers Association 290 East Speer Blvd.

Denver, CO 80203 303.831.1722 info@colorado.auto www.colorado.auto

OUR STAFF 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

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.

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

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Colorado Automobile Dealers Association

CADA Holiday Hours IN OBSERVANCE OF THE UPCOMING HOLIDAY SEASON, OUR ASSOCIATION OFFICE WILL BE CLOSED ON THE FOLLOWING DATES: DECEMBER 23, 2022 DECEMBER 26, 2022 JANUARY 2, 2023

HOW CADA IS LOOKING FORWARD THROUGH GOOD NEWS AND BAD 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.

CURRENT ISSUES AFFECTING DEALERS 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.

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COLUMN | CADA CHAIR

Brent Wood 2022 CADA Chair

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.

Continued on Page 8

To register, visit www.colorado.auto/events

Thank You! to the top level sponsors of the 2021 Preview Gala Presenting Sponsor

Premier Sponsors

Continued from Page 6 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.

CONSUMERS ARE FLIPPING THE SWITCH 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.

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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.

COLUMN | CADA CHAIR 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.

ACCOMPLISHMENTS IN 2022 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.

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.

THE ROAD TO A WIN WAS TOO BUMPY FOR COLORADO’S REPUBLICAN PARTY

COLUMN | PRESIDENT & CEO

Tim Jackson CADA President & CEO

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.

IMBALANCE OF POWER 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

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

GETTING GRANULAR ON STATE HOUSE LOSSES 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.

COLUMN | PRESIDENT & CEO 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.

THE SENATE SCORECARD 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:

SAPPHIRE BLUE STATEWIDE 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.

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COLUMN | PRESIDENT & CEO WHY DID IT HAPPEN? 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.

WHAT DOES IT MEAN? 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,

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CADA WILL KEEP ON KEEPING ON 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

COLUMN | PRESIDENT & CEO 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.

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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.

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.

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.

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.

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From One Store to Many

People-Centered Philosophy

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.

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 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.

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.

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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.

A Long Reach for a 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.

“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.”

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 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 1997 John Clatworthy

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 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

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Paul McClain-Service Director, Brandon Molina-Apprentice, Mark Zeigler, David Roman-Apprentice, Kristy Montoya, Assistant Service Manager

A BUSY MONTH FOR THE CLEAR THE AIR FOUNDATION 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.

Did you know that only 59% of automotive technology graduates are working in the industry after two years?

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.

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HELP US REACH OUR 2022 GOAL OF RECYCLING 600 HIGH-POLLUTING VEHICLES

600

YTD DEALER DONATIONS

301

500

400

300

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100

18 16 14 12 11 9 9 8 8 8 7 6 6 5 5 5 5 4 4 4 4 4 4 4 3 3 3 3 3 2 2 2 2 2 2 2 2 2 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 1 1

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

YTD NON-DEALER DONATIONS 38 Fort Carson 17 Private Donation 5 Warren Tech

300 OCTOBER YEAR-TO-DATE TOTAL

2022 TOP DONATING DEALER GROUPS 9 O'Meara Buick GMC 8 O'Meara Ford 4 O'Meara Volkswagen O'Meara Collision 4 Center 25 O'MEARA TOTAL 12 9 4 25 18 4 1 23 5 5 4 3 2 2 1 22 4 3 3 3 2 1 1 17

The Faricy Boys Ford The Faricy Boys Faricy Boys Automotive Salida FARICY TOTAL

8 AutoNation Chrysler Jeep Arapahoe AutoNation Chrysler 2 Jeep Broadway 10 AUTONATION TOTAL 5 Stevinson Toyota West 4 Stevinson Toyota East 9 STEVINSON TOTAL

2 Foundation Chevrolet Cadillac 1 Foundation Kia Mike Maroone Chevrolet 1 Castle Rock Ford Foundation Hyundai of South 1 Boulder Mike Maroone Honda 5 FOUNDATION TOTAL Mike Maroone Ford Longmont 2 Emich Volkswagen MIKE MAROONE 2 Emich Volkswagen of TOTAL Boulder Schomp Honda 1 Emich Chevrolet Schomp Subaru 5 EMICH TOTAL Schomp Hyundai 1 Planet Honda Schomp Nissan 1 PLANET TOTAL Schomp Ford Schomp Mazda Schomp BMW SCHOMP TOTAL DEALER GROUP TOTAL THROUGH OCTOBER Phil Long Ford of 2022 Chapel Hills Phil Long Honda of Glenwood Springs Phil Long Hyundai of Chapel Hills Phil Long Valucar Motor City Phil Long Lincoln Phil Long Ford of Denver Phil Long Glenwood Springs Subaru PHIL LONG TOTAL

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DON A TOD TE AY!

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WWW.COLORADO.AUTO

editor's note

ELECTION RESULTS DEFLATE WORSE THAN A NEW 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.

LEGAL & REGULATORY AFFAIRS

Matthew Groves Vice President of Legal, Regulatory and Compliance

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.

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Continued on Page 26

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.

editor's note

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.”

FTC EXTENDS SAFEGUARDS RULE COMPLIANCE DEADLINE

LEGAL & REGULATORY AFFAIRS

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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.

2. Develop a written risk assessment.

3. Limit and monitor who can access sensitive customer information, 4. Encrypt all sensitive information.

5. Train security personnel 6. Develop an incident response plan.

7. Periodically assess the security practices of service providers.

8. 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.

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