Issuu

Fall/Winter 2016

Attorney General Tom Miller has a message for Iowa’s dealers.

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FROM THE PRESIDENT

proud to be an iowan I have told you before that two of my favorite things are magazines and automobile dealers. After reading this edition of Iowa Auto Dealer, that sentiment is stronger than ever. But I really need to add one more thing: I love Iowa. I often tell people that I wasn’t born in Iowa but that I got here as fast as I could. The truth is that I was born at Offutt Air Force base, which is less than a mile west of the Nebraska/Iowa border. My parents were both third-generation Iowans who left the state to pursue Dad’s military career and returned immediately after his retirement from the Air Force. So I was raised in Iowa by Iowans—but by Iowans who deliberately and consciously chose Iowa as the place they wanted to raise their family, pursue their post-military careers, and start a small family business. I love it here, and I am proud to be an Iowan. I’m proud, too, of working for and with Iowa’s automobile dealers. I realize that there are common challenges and experiences that all auto dealers experience regardless of where they live. The grit, drive, and entrepreneurial spirit that are the hallmarks of successful automotive retailers can be found anywhere in the country— or world for that matter. But Iowa is special. And so are Iowa’s automobile dealers. This issue of Iowa Auto Dealer proves it in article after article. My daily work routine is too often buried in the minutiae of dealer legal and regulatory issues. While I love that part of my job, it sometimes means that I miss the bigger picture of what Iowa’s “But Iowa is special. And so are auto dealers are accomplishing and the innovative, wholesome, “Iowa way” you go about it. Iowa’s automobile dealers.” That’s what is so cool about having a magazine that is written for and about Iowa’s auto dealers. Iowa Auto Dealer gives IADA a chance to pause from the endless stream of technical compliance and national industry news and focus on things that our industry is doing well and to celebrate its achievements and best practices right here in Iowa. With stories ranging from dealer-specific advice given by America’s longest-tenured state attorney general (who we accompanied on a behind-the-scenes tour of an Iowa Chevrolet dealership) to innovative self-driving technology being developed by Iowans on Iowa roads at the University of Iowa, this magazine is packed with plenty of content to overcome any thought that Iowa is anything other than the best place to live and the best place to sell cars and trucks. Don’t miss the pieces on the small town Iowa high schoolers who made us proud at the National Automotive Technology Competition or the one about how Iowa auto dealers are supporting our troops. For that matter, don’t miss a single word of any article in here—the whole magazine will make you proud both to be an automobile dealer and an Iowan. Just be sure to share it with a friend, customer, or colleague when you’re finished reading it.

Bruce Anderson IADA President

PS: What do you think of Iowa Auto Dealer? Email your feedback to banderson@iada.com.

FALL/WINTER 2016 1

in this issue

1111 Office Park Road West Des Moines, Iowa 50265 p: 800.869.1900 f: 515.226.1988 CHAIRMAN Brad Deery VICE CHAIRMAN Jim O’Halloran PRESIDENT Bruce Anderson SECRETARY Jeff Haun TREASURER Jeff Finch IMMEDIATE PAST CHAIRMAN

Jeff Weber DIRECTOR AT LARGE

Mike Clemons

DIRECTOR AT LARGE Scott Deter HEAVY DUTY TRUCK DIRECTOR

Jon McCoy

INDEPENDENT DIRECTOR

departments

DISTRICT THREE DIRECTOR

from the president Iowa—and its dealers—are special.

DISTRICT FOUR DIRECTOR

Dale Finch

DISTRICT TWO DIRECTOR

Patrick Eads

Matt Brown

John Gookin

NADA DIRECTOR Mark Birdnow EDITOR Brittany Bungert Iowa Auto Dealer (ISSN 2472-2634) is a bi-annual magazine produced for members of the Iowa Automobile Dealers Association. For advertising information, contact Brittany Bungert at 515.226.1900. Cover Photo: Iowa Attorney General Tom Miller shares five things he’d like Iowa’s car dealers to know (page 6). COVER PHOTO BY JOHN LEE PAGE 2 PHOTOS BY JUSTIN TORNER, UNIVERSITY OF IOWA (TOP LEFT); DAVE WRIGHT NISSAN SUBARU (TOP RIGHT); NATIONAL AUTOMOTIVE TECHNOLOGY COMPETITION (LOWER LEFT); JOHN LEE (LOWER RIGHT)

2 IOWA AUTO DEALER

pro tip Payment processing demystified.

five things What Attorney General Tom Miller would like you to know.

q&a Improve your website.

iada printing & promotions Build your brand.

show & tell A dealership changes its culture for the better.

iad foundation Iowa students take on a national competition.

the close Leading the nation in vehicle safety research.

features

hometown heroes Saluting veterans and members of the National Guard and Reserves who work in Iowa dealerships.

mind your manners Good manners cost nothing. Bad manners could cost you customers.

top secret: dealer data Take a look at the motor vehicle franchise system across the nation.

DEPARTMENT TITLE

JIM ARENSON ATTORNEY AT LAW • Buy-Sells, Including Complete Documentation • Manufacturer Disputes and Termination • Manufacturer Negotiations • Franchise Relocation • Dealer Defense • Assistance in Finding a Dealership to Purchase • Assistance with Due Diligence in Purchasing a Dealership • Assistance in Selling Your Dealership • Auto Dealer Consulting for Operations/Management Financing/Expense Reduction/Crises Management • Employee Disputes • Transition Planning/Succession Planning • Real Estate Issues

ARENSON LAW GROUP, PC

425 Second Street SE Suite 900 Cedar Rapids, IA 52401 T: 319-363-8199 F: 319-363-8448

JIM ARENSON jarenson@arensonlaw.com

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GOLD SPONSOR OF IADA AND LONGTIME MEMBER OF NADC FALL/WINTER 2015 3

PRO TIP

part of the process

Embrace payment processing best practices to preserve profits and reduce liability.

It takes money to make money—or at least to process payments. But a lack of training or misinformation can cause dealerships to spend more on payment processing than necessary. “Dealerships aren’t the same as a retail store. They run bigger transactions. They run a lot of transactions,” says Mary Beth Erps, a merchant advocate with TSYS Merchant Solutions and former dealership employee. “It’s just really important to have somebody who knows what you’re doing, who you can trust, who you can ask questions and they can walk you through it.” Revisit your payment processing practices to make sure that you’re getting the best rates and avoiding unnecessary risks. DON’T ACCEPT UNSIGNED CARDS. “If there’s no signature, the person who owns the card can fight the transaction to say that they were not there,” says Erps. “The dealership could lose the entire amount of the transaction.” SWIPE, DON’T TYPE. Erps has also seen instances where a dealership is key-entering credit cards—even when they are card-present transactions. “They’re costing themselves quite a bit of money by not having the correct advice to swipe those cards through.” E D U C AT E YO U R S E L F. The Electronic Transactions Association has developed SellSafeInfo.org, a resource for

4 IOWA AUTO DEALER

merchants to learn more about payment technology and best practices. Your payment processing rep should also alert you to new best practices and technology that is important for your dealership to adopt, such as implementing chip-card readers so your dealership isn’t liable for fraudulent purchases made with a chip card that was swiped or keyed in. DON’T FORGET IT. Read your monthly statements (making sure you understand them) and review your agreement with your payment processor on an annual basis. “The biggest thing I see is just not checking on it,” Erps says. “They sign up and then they don’t look at it again for four or five years and rates can change quickly depending on your processor.” Examining your payment processing needs annually can result in cost savings or increased security—especially if your business has evolved over the course of a year.

find out more

TSYS Merchant Solutions is IADA’s preferred provider for payment processing. Contact Mary Beth Erps at merps@tsys.com or visit tsysmerchantsolutions.com for more information.

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PRO TIP

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FALL/WINTER 2016 5

FIVE THINGS

five things from tom miller What the longtime Iowa attorney general wants automobile dealers to know.

COMMUNICATE WITH YOUR SALES AND SUPPORT STAFF. Communicate with your sales, repair shop, body shop,

and business office staff about the various consumer laws that affect Iowa auto dealerships, and train them. Make sure your employees understand what these laws require and how you expect them to conduct business on behalf of your dealership. Have them follow standard, consistent procedures for dealing with customers and documenting sales, including making and keeping good records of your deals to protect you and your customers. A little extra attention upfront is better than having to spend a lot of time and resources on a problem after it occurs.

COMMUNICATE WITH YOUR CUSTOMERS. Before a customer sets foot onto your dealership floor, make sure your ads are accurate. Accurately disclose the price, financing terms, and condition of the vehicle you are advertising. Bait and switch tactics mislead consumers and are likely to cause you more problems in the long run. When you are straightforward with customers, hopefully they’ll be repeat customers. When dealing with a customer at your dealership, inform them about the terms of the sale, financing terms, additional fees, possible rebates or refunds, any damage to the vehicle that you are aware of, prior use of the car, or any other information that could impact their decision to buy the vehicle. In a way, this is really nothing more than the Golden Rule— treat others as you would want to be treated. By being upfront with what you know, you help ensure customers are satisfied, promote repeat business, and protect yourself against complaints or enforcement actions.

KNOW YOUR WEB PRESENCE. My office and your fellow Iowa dealers are seeing an increase in fraudulent dealership websites and online advertisements. The criminals behind them, who often operate from foreign countries, use the names of legitimate auto dealers to create bogus websites that offer cars for sale. Unfortunately, the consumer, who sees the photo and listing of the supposed inventory at an unbelievable price, often accompanied by a genuine Vehicle Identification Number (VIN) and fake title, is lured into an online transaction. In a matter of seconds, this type of criminal steals a large amount of money from the consumer and, at the same time, tarnishes the reputation of a legitimate business. Be sure to monitor the web by frequently running your dealership’s name through a search engine. Consider setting up a web notification, such as a free Google Alert, so you know how your business name appears throughout the Internet.

6 IOWA AUTO DEALER

4 5

LET US KNOW IF SOMETHING ISN’T RIGHT. If you see someone else engaging in questionable conduct, let us know. When we hold people accountable for conducting business the wrong way, it levels the field for the dealers who play by the rules and results in potentially more customers for those dealers. Besides, a consumer who loses money to an underhanded dealer cannot turn around and spend it with a legitimate one. If everybody plays by the same rules, we all ensure the market is fair for both Iowa’s dealerships and consumers. STAY AHEAD OF THE PROBLEM. If a consumer calls your dealership with a complaint, take the time to respond. Oftentimes you can prevent a consumer from escalating a complaint merely by responding upfront. If the consumer files a complaint with our Consumer Protection Division and we reach out to you, please respond promptly with supporting documents and information that will assist us in evaluating the complaint and responding to the consumer. We want to hear your side, too! Should you have any questions or concerns, contact our Consumer Protection Division. Call us at 515.281.5164 or email us at consumer@iowa.gov.

Iowa Attorney General Tom Miller is serving his ninth term as attorney general. He was first elected in 1978.

FIVE THINGS

Attorney General Tom Miller tours Shottenkirk Chevrolet with dealer Doug DeYarman. PHOTOS BY JOHN LEE

FALL/WINTER 2016 7

Q&A

online optimization

Boost your virtual presence with tips from three dealership website pros. Q: What should my dealership be doing to make the most of its website? A: KEEP IT FRESH. Fifty percent of shoppers are more likely to submit a lead when they can complete a task, so they won’t spend much time on your lot if something doesn’t catch their eye. You have about eight seconds to grab a shopper’s attention before they move on. Keeping your homepage up-todate with the information your shoppers are looking for provides them with the best possible experience. It is your first impression and opportunity to connect with the customer by showing them content that grabs them, which in turn increases the likelihood they will call or submit an email lead. FIGURE OUT WHAT MATTERS TO YOUR SHOPPERS. Take some time to review your website analytics—specifically how people are engaging with your website. Review them regularly to determine which pages on your site and which inventory is getting the most interactions. Analytics can give you insight into which vehicles people are interested in, if they are looking for special offers, and even which lead forms they are filling out. This information can give you a picture of how shoppers are using your site, which you can use to develop a plan to help them find information more easily. NOW MAKE A PLAN. Beautiful banner images might seem best, but studies have shown that a personalized experience increases engagement. In fact, businesses that personalize the website experience see an average increase in sales up to 19%. Using the insight gained from analytics, refresh your homepage each month with custom images that align with your message and strategy. Take the time to think about the message for each of your focus models and profit centers. For instance, if there’s a lot of interest in a specific model, make sure that vehicle has a specific message and image on your homepage highlighting its offers and features. If your specials page is a top viewed page, make it easy to navigate to from your homepage. MAKE IT HAPPEN. Work closely with your website designers to make sure they know your short- and long-term goals. As each month ends, review your analytics, re-evaluate your focus and communicate it to your website team. By taking this approach to your website, you can turn it into a powerful tool to connect with your customers. continued on page 10

MAX STECKLER Vice President of Consumer-Facing Solutions CDK Global cdkglobaldigitalmarketing.com

Have a suggestion for our next Q&A? Submit your questions to bbungert@iada.com.

8 IOWA AUTO DEALER

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get to know us. Brian Wolf 402.574.7335 bwolf@tsys.com

*Interested in more information on DMEautomotive’s mobile payment solution? Call 866.714.9449 or email info@dmeautomotive.com. © 2015 Total System Services, Inc.®. All rights reserved worldwide. Total System Services, Inc., and TSYS® are federally registered service marks of Total System Services, Inc., in the United States. Total System Services, Inc., and its affiliates own a number of service marks that are registered in the United States and in other countries. All other products and company names are trademarks of their respective companies. TSYS Merchant Solutions is a registered ISO/MSP of both First National Bank of Omaha, Omaha, Nebraska, and Synovus Bank, Columbus, Georgia. (1/2015)

Q&A

Car shoppers are more informed than ever during the car buying process, often doing a lot of upfront research and consideration before arriving at the dealership website. As a result, dealers should prepare their website to provide up-to-date inventory and fixed ops content, and also facilitate the initiation of deals on the site. For this reason, dealerships must engage the car shopper with websites that aren’t just inventory catalogs—but rather dealstructuring applications. Developing and managing a fully optimized dealer website means dealers need to understand the unique needs of each user and serve content accordingly. Today’s online car shoppers require viewing flexibility (customized for both desktop and mobile) and transparency, with features such as inventory merchandising that are consistent with what is in the dealership. Most importantly, dealership sites need to provide real prices and real payments—two elements that shoppers often complain are missing or misleading on dealer sites. Transparency in pricing and payments builds trust, helps to encourage online engagement, and helps position the shopper for a positive in-store experience. When looking to bring the customer from the website to showroom, it is important to create an experience that resonates with the buyer and feels secure, transparent, and fair. Educating the car buyer about your dealership’s brand and inventory through the effective use of optimized websites is a personable and user-friendly way that will drive them from their home to the dealership and increase the likelihood of a deal being completed.

BOB GEORGE Director of Product Management for Websites Dealer.com dealer.com

Your site is an extension of your sales floor. Give them the information they need to make a buying decision. Details, pricing, offers, test drive and walk-around videos, contact widgets, and more—holding back is a great way to get them to call someone else. Equally important, make it all easy to find. That means organize well, and leave out the irrelevant bits. Most buyers dislike the process. You’ll win if you can make it easy for them. Also, for each action they take on your site, think “Okay, what’s next?” They looked at vehicle information? Now, what do they need? Don’t leave them without a path forward. You want to optimize for local search traffic. You’re looking for the intersection of “What does the searcher want?” and “What will move her/him toward a sale?” That is content that will withstand any algorithm change while producing quality leads and generating good floor traffic. Get found, guide them to you, then be there for them.

JOSHUA SCHNEIDERMAN Digital Strategist Mudd Advertising mudd.com

10 IOWA AUTO DEALER

Woodward & Associates, Inc.

1707 Clearwater Avenue ·P.O. Box 1584 ·Bloomington, IL 61702 (309) 662-8797 ·Fax (309) 662-9438 ·Email woodwardassoc@cpaauto.com ·http://www.cpaauto.com Providing service to over 25 Iowa dealerships and their related entities. We specialize in automobile dealers in the following areas:        

Certified Public Accountants

Memberships in:

     

Dealership valuations Automobile dealer legal support Buy-Sells for dealerships LIFO inventory computations Financial statement analysis Corporation Income Tax returns Personal Income Tax returns CPA prepared financial statements Dealer estate planning Employee theft consulting Internal control studies and audits Profit consulting Training office managers/CFO’s 401K Audits

AUTOCPA Group The American Institute of Certified Public Accountants Licensed to practice in Iowa

Serving more than 250 Automobile Dealers throughout the United States

IADA PRINTING & PROMOTIONS

make your mark

Building a brand takes time—but these six tips can help cement your dealership’s place in the minds of your community.

Brand awareness doesn’t happen overnight. Briann German and Jessi White of IADA Printing & Promotions advise dealerships to remember that a long-term strategy is needed. “Brand awareness is built over time by building a steadfast customer and employee base, positive buying experience, and brand loyalty,” German and White say. They recommend implementing a plan that may include things like getting involved with community activities and local school events, then using promotional products to expand on that message.

Remember: You are more than just a representative of your manufacturer. “Your name stands for something in your community as well,” says Nick Westergaard, chief brand strategist at Brand Driven Digital. “You have the relationships with your customers. You need to craft a brand that communicates that and tells your story.” Westergaard adds that just because franchised dealers can build off of their manufacturer’s brand doesn’t mean they don’t have any work to do. Tell the community who you are, how long you’ve been in business, and how you’re involved to connect with customers and raise brand awareness.

TWO

Think beyond your franchise.

ONE

Create a longterm strategy.

Even the most well-known brands need a refresh every once in awhile. If it’s been several decades since you tweaked your logo, look at it with a critical eye. “Modernizing your logo has gained crucial significance in today’s market as well,” say White and German. “People are more drawn to a company that feels up-to-date on the latest trends.” You shouldn’t be changing your logo too frequently, but periodic image refreshes can help keep your brand feeling vibrant and relevant.

Nearly every form a dealership uses can be customized to include the dealership’s logo. “By customers simply seeing the dealership’s name and logo on the forms and paperwork, their dealership will more likely gain ‘topof-mind’ awareness when customers are considering which dealership to purchase from,” say White and German.

12 IOWA AUTO DEALER

FOUR

Customize your forms.

THREE

Freshen your image.

IADA PRINTING & PROMOTIONS

“ T h e l o g o i s i m p o r t a n t— i t ’s the touchstone of your brand,” Westergaard says. “However it’s not the only visual piece of your brand’s DNA.” Use your logo to develop a tool kit of colors, fonts, icons, and images that you use on everything from advertisements and signage to social media graphics and promotional products. With consistent use, eventually those visual tools will remind customers and community members of your brand. White and German agree. “Understand that just a logo is not branding,” they say. “The logo will work in correlation with the branding.”

Dealerships should always be looking for something that makes them stand out. “What dealers need to understand is that building on brand awareness with promotional products can be stretched out to all parts of the company” not just sales, say German and White. They advise their clients to find promotional products that can be given to customers when they come in for service, such as leaving a branded water bottle in a vehicle’s cup holder on a hot day. “That small but nice gesture gives the customer a positive feeling, and they will remember that when they need more work done,” White and German say.

SIX

Pick promotional products.

FIVE

Develop a branding tool kit.

Leaving your desk shouldn’t leave you without access to important information. To run a profitable dealership, you need realtime reporting and a DMS that can supply it. As the only High Tech, High Touch DMS provider, Dealertrack operates in the cloud, enabling users to access key dealership metrics from any location at any time.

Check in, even when you’re out.

Call 888.645.4058 or visit go.Dealertrack.com/AnywhereDMS.

FALL/WINTER 2016 13

SHOW & TELL

changing perspectives

A dealership sees unexpected results from a program that opens doors for adults facing barriers. BY LAUREN IVERSON

Goodwill of the Heartland has called Iowa home for more than 50 years. A non-profit organization, they work with individuals who experience barriers to independence by pairing them with an entire team of people to offer job training, career fairs, and aid in finding employment. After Goodwill’s pre-vocational funding was cut, they knew they had to start a movement to increase business involvement with their program across the state. Little did they know, a mere five minutes away was a business open to accepting speciallyabled employees. Dave Wright of Dave Wright Nissan Subaru in Hiawatha was at a networking event when he heard a presentation about Goodwill’s desperate need for community employers. “Government funding to do job training and placement had ended, so those folks were pretty much out of a job,” says Wright. “In our area, there were about 1,000 that were about to be displaced.” In addition to the presentation on Goodwill’s efforts, being approached by Goodwill employees inspired Wright to accept these individuals into his company’s culture. “There’s always going to be folks who need that help and assistance,” says Wright. “If you’re going to be a community partner and behave, as a company, socially responsible, then it’s important to help when you can.”

The Goodwill program works closely with all people who struggle to secure and maintain a job, enabling the person to live a more balanced lifestyle. The program is completely tailored to the individual—Goodwill matches the interests and hobbies of their clients with an employment opportunity. “We spend quite a bit of time with the individual to make sure they’re going to be successful in their position,” says Amy Feight, job placement specialist at Goodwill of the Heartland. After a business agrees to work with the program, Goodwill implements three stages to introduce the client to the company, starting with an initial meeting between the employer, employee, and Goodwill representative. “We wanted to make sure the individuals could not only fit into our culture, but have a skillset that they could work with,” says Wright. “We were shocked to learn they even had licenses to drive to work. There was a lot of ignorance while thinking about what we might be facing.” After the meeting, the employer may offer the individual a two-week internship. If both parties continue to see value, then a second internship is offered on a long-term basis. Wright now has three employees from the Goodwill partnership program and says there is not a day he regrets it. “They’re some of the greatest employees we have,” says Wright. “Their expectations are a little different and they’re very rule-oriented. If someone isn’t doing the task exactly right, BJ Branam works as a lot attendant at Dave Wright Nissan Subaru. He connected with the dealership through a Goodwill of the Heartland program that helps adults facing barriers to independence find employment. PHOTO COURTESY OF DAVE WRIGHT NISSAN SUBARU

14 IOWA AUTO DEALER

SHOW & TELL

then they’re the first to say, ‘Wait a minute, this is how we do it.’” Among the three Goodwill of the Heartland individuals employed by Dave Wright Nissan Subaru is Lot Attendant Brian “BJ” Branam. Branam has worked for Wright since November 2015 and has become a well-known personality throughout the dealership. “I wash and detail cars,” says Branam. “I get them ready for the customer, vacuum the interior, clean windows, and seal and wash them with the hose.” Not only does he enjoy exploring the new cars, but he also loves the feeling of acceptance from all of his coworkers. “They’re very friendly,” says Branam. “They help me out. They show me where to go and they help me with what step we’re on.” In addition to those around him, he also has an enormous amount of respect for Wright. “Dave is one of the nicest bosses I’ve ever had,” says Branam. The Goodwill employees are a special addition to his dealership because of the excitement and pride they bring to work every day, says Wright. “They have very colorful personalities. Especially in a retail environment when you’re dealing with the public, you can’t have a bunch of clones of one person. You have to have people with different goals.” Unfortunately, sometimes it can be difficult to find businesses without reservations about the Goodwill program. A common misconception is that all of the individuals at Goodwill of the Heartland have physical or intellectual barriers, when in reality,

many of the people they serve are extremely high functioning, says Feight. “The individuals that we serve just want an opportunity and sometimes they don’t get that,” says Feight. “When they are given one they really flourish, many times changing the culture of the business in a positive way.” During their time at the dealership, Wright’s Goodwill employees have formed bonds with many of those around them, connecting on deeper levels than just work. The atmosphere is always different when they come to work and they put a constant smile on the faces of dealership employees, says Wright. “It’s a win-win for everybody,” says Wright. “We’ve gotten more benefit having them here than they get from us being the employer.” Both Wright and Branam encourage other businesses to take the plunge and get involved with this program, saying that it has changed the company for the better. “We got into it by accident,” says Wright. “We definitely had our reservations, but Goodwill did an awesome job helping us and now we’re happy to have them.”

get involved

If you’re interested in partnering with Goodwill of the Heartland, visit goodwillheartland.org/business-services.

FALL/WINTER 2016 15

IOWA AUTOMOBILE DEALERS FOUNDATION FOR EDUCATION

West Delaware High School students Alex Fangmann and Austin Schuhmacher represent the state of Iowa at the National Automotive Technology Competition. PHOTO COURTESY OF THE NATIONAL AUTOMOTIVE TECHNOLOGY COMPETITION

16 IOWA AUTO DEALER

IOWA AUTOMOBILE DEALERS FOUNDATION FOR EDUCATION

gearhead grand prix

Iowa champs take on the national auto tech competition. BY LAUREN IVERSON

An elite group of high school students gathers in New York City each spring. It’s a fierce competition—the best of the best from each state fighting to earn the right to call themselves national champions. It’s a place where gearheads gather to show off their skills and to prove that not just anyone has the talent needed to work as a high level automotive technician. It’s the National Automotive Technology Competition. “The kids that typically get to go to these contests, they’re not your stand-out athletes or in the chorus where they’d be going to events like this,” says Jason Guyer, West Delaware High School automotive technology instructor. “This was their shot to show what they’re really good at.” The competition was Alex Fangmann and Austin Schuhmacher’s time to shine. West Delaware High School students Fangmann and Schuhmacher were the winners of the Des Moines Area Community College (DMACC) Skills Contest in December 2015, which was co-sponsored by IADA and the Iowa Automobile Dealers Foundation for Education. “It really blows your mind that out of all those teams that began, you came out on top,” says Fangmann. “It made for a fun bus ride home.” Their first place finish in the DMACC contest earned Fangmann and Schuhmacher a trip to the National Automotive Technology Competition, held in New York City during the New York International Auto Show in March 2016. The West Delaware duo is the first team IADA and the Iowa Automobile Dealers Foundation for Education have sent to the national competition in more than 10 years. “They proved they were capable of competing at a national competition when they won the DMACC Skills Contest,” says Mary Cason, executive vice president of the Iowa Automobile Dealers Foundation for Education. “We wanted to do whatever we could to get them to New York City and were really excited to see how they did.” The national skills competition drew in 30 teams of two from across the country to compete in areas that tested their knowledge, skill, and speed in automotive technology. In addition to written tests, each team had to diagnose and repair a randomly selected vehicle with pre-determined problems under the hood within an allotted amount of time. Fangmann and Schuhmacher drew a Subaru Legacy. “Alex had worked on a Subaru before, but it was an older model,” says Schuhmacher. “Other than that, we had never touched a Subaru.” That’s where a dealership could lend a hand. Because of the students’ lack of experience with the selected vehicle, Riley Mazda Subaru Mitsubishi in Dubuque stepped in to

help with their preparations for the national competition. After the team worked with Subaru Technician Josh Fee to familiarize themselves with the new 2016 Subaru Legacy Premium 2.5i, the dealership lent them a vehicle for one week to give the students additional practice after school. “They were so helpful there; it was crazy,” says Schuhmacher. “They gave us a lot of pointers and showed us how to do things in order to save time.” Though the team praised Riley Mazda Subaru Mitsubishi for playing a major role in their preparation, the dealership refused to take credit. “They were prepared to compete and we really just facilitated access to the vehicle,” says dealer Jeff Haun. “They really knew how the program worked.” The dealership stepped up to ensure the team would be fully prepared for the national competition. Haun hoped that lending a helping hand would encourage the “A Team,” as they became known at the dealership, to recognize their advanced skill set. “Our country is going to need young folks like this,” says Haun. “We want to do whatever we can to help them be successful and acquaint them with the wonderful career they could have.” When they weren’t learning how to disable a high-voltage battery at the Subaru dealership, Fangmann and Schuhmacher

national automotive technology competition Who: High school automotive students. The competition features two-student teams from across the country competing to be named the nation’s best automotive technicians. The students prepare with their high school instructors and certified technicians at local dealerships. What: Developed in 1993 by the Greater New York Automobile Dealers Association, the National Automotive Technology Competition tests the skills, knowledge, and work ethic of students in automotive technology and repair. The competition began as a way to decrease the shortage of qualified automotive technicians and encourage higher educational standards. Where: New York, New York. The competition is held every spring during the New York International Auto Show—the country’s largest automobile show that brings more than 1,000 cars and trucks and has four floors of displays.

FALL/WINTER 2016 17

IOWA AUTOMOBILE DEALERS FOUNDATION FOR EDUCATION

spent hours preparing with their high school instructor, studying books and diagrams and practicing how to debug vehicles. “[Guyer] would show up every night an hour before us to make sure everything was prepared just so we could get six hours a night in,” says Schuhmacher. “Taking time away from his family to put in 12-hour days on the weekends, even on Easter weekend. He doesn’t get paid extra for that and we really tip our hats off to him.” After weeks of preparing, the team flew to New York, accompanied by Guyer, to put their skills to the test. The first day of the competition included a three-hour workstation rotation that covered areas such as safety, diagnostics, and knowledge of tools. These stations were challenging because they required mostly critical thinking and problem solving rather than actual hands-on activity, says Fangmann. “We’re two guys from a small town in Iowa, so we’re not used to the crowds,” says Fangmann. “Looking around and seeing you’re going up against the best of the best and, in the end, you can only have one winner.”

Day two of the competition consisted solely of on-car work. Each team was allowed 15 minutes to set up their workstation before the three-hour on-car portion started. “The biggest setback we had was just our nerves,” says Fangmann. “We tried to get everything done we could.” The team’s dedication landed them in the top half of competitors, placing 13th out of 30 teams. They won a handful of prizes, including a Snap-On tool bag, a $2,000 Automotive Training Center scholarship, and a $1,500 Lincoln Technical Institution scholarship. Though they had dreams of ending on top, they are proud of their accomplishments and are excited to see what opportunities may arise from this experience, say Fangmann and Schuhmacher. “They are two of the hardest working kids I’ve ever had—by far. End of story,” says Guyer. “It’s not going to be today, or even a year from now, but eventually, they’re going to look back and be like, ‘Wow, we really did that.’”

Josh Fee, a Subaru technician at Riley Mazda Subaru Mitsubishi, helps Fangmann and Schuhmacher prepare for the National Automotive Technology Competition. PHOTO COURTESY OF JEFF HAUN

18 IOWA AUTO DEALER

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HOMETOWN HEROES

HOMETOWN heroes Veterans and active members of the National Guard and Reserves bring out the best in Iowa’s dealerships.

20 IOWA AUTO DEALER

HOMETOWN HEROES

Nearly 13,000 people work in franchised new car dealerships in the state of Iowa. They go to work every day with a mission: to sell and service vehicles. A subset of those employees knows what it’s like to have another, bigger mission: to serve their country. These men and women are veterans or active members of the National Guard or Reserve who work for dealerships in their civilian lives. Around the state, dealerships are going out of their way to make life a little easier for members of the National Guard and Army Reserve. And they are taking a moment to recognize the service—and unique skill set—of the veterans they work with every day. Going Above and Beyond To Birdnow Chevrolet Service Manager Shane Yarolem, adjusting the schedule at the Cascade dealership so that technician Jacob Clark could attend National Guard training isn’t only another law to follow. It just makes sense. “Accommodating that is the easy part. Protecting our freedom is hard,” says Yarolem. Beyond scheduling around weekends when Clark has to be gone, Yarolem tries to make sure Clark is able to have time away from both his jobs. “If he has a drill on Saturday and Sunday, we’ll let him out a little early or give him a half day off on Friday so he can pack or spend time with family,” Yarolem says. “When he goes on drill, not a normal weekend, we think it’s important to recharge.” Clark recognizes how lucky he is to work for a dealership that makes it easy for him to fulfill his obligations to the National Guard, saying that’s not the case for everyone he knows who serves. Because of his appreciation for Yarolem’s

“We’re pretty lucky to live in the country that we’re in. We’re lucky to have the freedom that we have, and none of that’s possible without the service they put forth.” Shane Yarolem efforts, Clark nominated Yarolem for the Patriot Award from the Employer Support of the Guard and Reserve (ESGR). “Shane goes above and beyond what’s my drill schedule,” says Clark. “He’s always been very good about getting me out of here when I need to be.” Additionally, Clark says, Yarolem shows interest in his work with the National Guard. “It kind of puts it in a different perspective when you have someone who actually will work with you to be there for your second job.” Yarolem brushes off any praise, turning it right back onto Clark and others who have served in the military. “We’re pretty lucky to live in the country that we’re in. We’re lucky to have the freedom that we have, and none of that’s possible without the service they put forth,” says Yarolem. “Really, when they put their name on the dotted line, that’s their life on the line. Sometimes that gets lost in the shuffle in the world we live in.” Patriot Award Employees who serve in the National Guard or Reserve or their spouses may nominate individual supervisors for the ESGR’s Patriot Award in recognition of support provided to Birdnow Chevrolet employee Jacob Clark (right) nominated Service Manager Shane Yarolem (left) for the Patriot Award from the Employer Support of Guard and Reserve. PHOTO COURTESY OF CASCADE PIONEER

FALL/WINTER 2016 21

HOMETOWN HEROES

John Blankenship (center left) of Edwards Auto Group was nominated by Dirk Arneson (center right) for a Patriot Award from the Employer Support of the Guard and Reserve (ESGR). ESGR volunteer Darlene McMartin (right) and Brett Edwards of Edwards Auto Group joined them for the award presentation. PHOTO COURTESY OF THE DAILY NONPAREIL

the service member and his or her family. In addition to Birdnow’s Yarolem, another Iowa dealership employee recently received a Patriot Award. John Blankenship, a general sales manager for Edwards Auto Group, was nominated by Nebraska Army National Guard member Dirk Arneson, who works at the dealership. “We are very supportive of active duty and discharged members of the armed forces,” says Brett Edwards of Edwards Auto Group. “It is something we work to be flexible with.” Edwards adds that “Being supportive of the military is a choice that we make as citizens of this nation. Without our support they can have a very difficult time in the civilian world and many discharged military members have not known any other life but military service. We want an all volunteer military and to have that there must be strong civilian support.” Other dealerships that have had an employee receive the ESGR Patriot Award include Billion Automotive in Sioux City and Vaughn Automotive in Ottumwa. Elite Employees Serving in the armed forces changes a person, and for many, returning to civilian life can present its own set of unique challenges. “[The hardest part was] not being part of a brotherhood where you eat, live, sleep, train, and fight together and always have each other’s back,” says Jesse Sanger, Quick Lane Manager at Bill Colwell Ford. Sanger served as a machine gunner in the Marine Corps from July 2003 to July 2012. He deployed to Iraq in 2006, and had two tours of duty in Afghanistan, in 2009 and 2011. Military experience helps develop skills that can be an asset in civilian life. During his time in the Marines, Sanger sharpened skills, including “Calmness under stress and the ability to always find a way to accomplish a task or goal, no matter how difficult it seems,” that have helped him in his

22 IOWA AUTO DEALER

work at the dealership. “You can definitely tell the difference between somebody who has been through the military and dealt with all that rather than someone who hasn’t,” says Birdnow Chevrolet’s Clark. “The whole teamwork and all that, it really ties into how we do our job around here. Because if sales isn’t doing something or they’re not selling a car, there’s not cars for us to service. If sales is not selling, we’re not servicing. If we’re servicing poorly, they’re not coming to buy cars. Teamwork is the biggest thing I’ve learned through the military through my years.” Dealership managers see benefits to military training as well. “We have seen great advantages from our coworkers that serve,” says Edwards. “They have a great work ethic and understand the importance of processes.” Important skills for dealership employees, like the ability to appease customers and exceed their expectations, be on time, and succeed in a structured environment, come naturally to current and former members of the military. “The services, no matter what branch, instills these things in men and women,” says Yarolem. “They take a person and make them better, and that’s always a benefit to any employer.” The state of Iowa is encouraging employers to hire veterans and transitioning service members through the Home Base Iowa program, which connects businesses with qualified veterans. More than two dozen Iowa dealerships have signed on as a Home Base Iowa Business, which requires a commitment to hiring veterans. “If you want hard-working employees who don’t make excuses, [who are] process-oriented, loyal, hard-working, and accomplish goals, it is in your best interest to interview and hire some [veterans],” Sanger says. Clark agrees. “We’re ready to work. We’re not afraid to get our hands dirty,” he says. “We’re easy to work with. The training we’ve been through can come over and help out quite a bit.”

HOMETOWN HEROES

thank you for your service

Many employees at Iowa’s new car dealerships have served or are serving in the armed forces. Here are a few of the people who deserve recognition for their service to our country. Derek Anderson Dave Wright Nissan Subaru

Jim Hagans Bob Brown Auto

Dirk Arneson Edwards Auto Group

Mike Hughes Dave Wright Nissan Subaru

Brad Ashby Bob Brown Auto

Garrett Jaenke Dale Howard Auto Center

Shane Britton Bill Colwell Ford

Devon Keifer Bob Brown Auto

Ron Brown Bob Brown Auto

Carl Lorenz Bill Colwell Ford

Rick Burkemper Bob Brown Auto

Warren Lyddon Bob Brown Auto

James Brock Bob Brown Auto

Dave Mendenhall Bob Brown Auto

Nicholas Carley Bob Brown Auto

Gary Meyers Bob Brown Auto

Kevin Carter Dave Wright Nissan Subaru

Paul Olson Bob Brown Auto

Hannah Chesmore Dave Wright Nissan Subaru

Vince Orlando Bill Colwell Ford

Jacob Clark Birdnow Chevrolet Cascade

Joseph Pentland Bob Brown Auto

Thomas Cowles Bob Brown Auto

Derek Recker Dale Howard Auto Center

Marcus Crawford Bob Brown Auto

Randy Reed Birdnow Chevrolet Cascade

Zachary Dunham Bob Brown Auto

Jesse Sanger Bill Colwell Ford

Steve Eggelston Dale Howard Auto Center

Al Shepard Bill Colwell Ford

Moises Garcia Bob Brown Auto

Shyanne Soper Bob Brown Auto

Brad Gardner Birdnow Chevrolet Cascade

Clarence Twilley Bob Brown Auto

Brad Gates Bob Brown Auto

J.T. Walters Birdnow Chevrolet Cascade

Don Gillespie Bob Brown Auto

Dave Wright Dave Wright Nissan Subaru

Terry Gooding Bob Brown Auto

home base iowa businesses

Home Base Iowa Businesses have committed to hiring veterans and service members transitioning to civilian life. Here are the Iowa dealerships who have made that commitment. Asher Motor Co.

H & N Chevrolet

Pinicon Ford Lincoln

Bob Brown Auto

H & S Motors

Rasmussen Ford

Deery Brothers West Burlington

Harrison Truck Centers

Shottenkirk Mount Pleasant

Don Pierson Ford Lincoln

Hawkeye Auto

Storm Lake Honda

Don’s Truck Sales

Knoepfler Chevrolet

Vander Lee Motors

Dunlap Motors

Kountry Ken’s Inc.

Vollmar Motors

Edwards Storm Lake

Krieger Auto Group

Watters Autoland

Elbert Chevrolet

Lauterbach Buick GMC

Wittrock Motor Co.

Emmetsburg Ford

Motor Inn Auto Group

Zimmerman-Houdek

FALL/WINTER 2016 23

mind your manners Brush up on your business etiquette. BY LAUREN IVERSON

24 IOWA AUTO DEALER

Three to seven seconds. That’s all it takes for a person to determine if they want to do business with you, says Patricia Tice, owner of Etiquette Iowa and author of Agri Manners: Essential Etiquette for Professional Success. Even if you pass that initial evaluation, small missteps can leave customers with a sour taste in their mouths, leading them to take their business elsewhere. “The thing about etiquette is it’s not just for businesses, it’s for life,” says Lauren Burt, creator of The Art of Etiquette. “You can’t just put it on and take it off.” Business etiquette and other related soft skills have always been important in the workplace, but many of those skills seem to be disappearing. The Wall Street Journal reported in August 2016 that 58% of hiring managers in a LinkedIn survey said the lack of soft skills was limiting their company’s productivity. Brushing up on business etiquette can boost sales, put service customers at ease, and create an environment that is comfortable for customers and employees alike. Take Notice “The number one thing to do when interacting with customers is to notice them,” says Tice. “Notice their hand gestures, notice what their eyes are doing

“The number one thing to do when interacting with customers is to notice them.” Patricia Tice and take a mental note of that.” When you notice the habits of your customer, you can tailor your interaction to what makes them most comfortable. Though being natural around a customer seems simple, being too natural could make them uncomfortable. Avoid rude or offensive language and being too familiar with your customer. While some people may respond well when using phrases like “hey, man” or calling them “buddy” others may find that to be too casual. Likewise, calling a woman “sweetheart” or “hun” is risky business and is more likely to offend than put the customer at ease. All communications between an employee and a customer should be a professional representation of your business. “The whole idea of etiquette is making the people around you comfortable,” says Callista Gould, certified etiquette instructor and founder of the Culture and Manners Institute. “Sometimes people think being casual with people makes them comfortable. Sometimes when you’re too comfortable, it actually makes people uncomfortable.”

Present Yourself Well When you meet a customer, always start the conversation with a handshake. Handshakes are especially essential when meeting a customer for the first time because it sets the tone for future interactions. A weak handshake can cause people to have a negative perception of your business, while a strong, firm handshake tells the customer that you are professional, confident, and eager to take on new challenges. Make sure you make eye contact with the person while you shake their hand to show you’re engaged and ready to help them. Remembering the customer’s name is also important. With all of the action on the sales floor, it’s easy to forget basic introductions, but repeatedly asking for a customer’s name can cause the customer to question if your business cares enough about their needs. Use a person’s name at least three times in your first conversation to ensure that it doesn’t slip your mind. The way you present yourself can also put a customer at ease. Whether you wear a uniform, suit and tie, or business casual

Active listening, a technique where you repeat back what the other person is saying, helps customers feel like you are fully engaged in the conversation.

FALL/WINTER 2016 25

Keep your fingers together with an open palm when you point at something to avoid being seen as aggressive.

attire, always dress in clothing that is appropriate for your position. “A vehicle is a high-end product that you pay a lot of money for,” says Gould. “There’s a certain expectation, even from a younger customer who’s dressed casually. ” Listen and You Will Receive How well you listen has a surprisingly large influence on a customer’s perception of your professionalism. Always reassure a customer that you are listening to what they say, understand their needs, and are working to find something best suited specifically for them. “Rather than operating by the Golden Rule of do unto others as one has done to you, car dealerships need to operate by the Platinum Rule and gauge what the customer needs,” says Lizzie Post, Etiquette Expert at the Emily Post Institute and co-host of the Awesome

26 IOWA AUTO DEALER

Etiquette podcast on American Public Media’s podcast network. Car salesmen sometimes carry a stigma of being too pushy and overbearing. One way to combat this stereotype is to practice active listening—a technique that tells the customer you are on their side. Instead of passive listening where you respond to a customer’s requests with words like “uh huh,” “yes,” or “okay,” active listening requires that you repeat back to the customer what they requested in the first place. This technique shows the customer that you are engaged and they have your full attention. “Most of the time with a customer they just need to be heard,” says Meredith Williams, Career Coordinator at Iowa State University’s Business Career Services. “Repeating back to them what they say is really helpful because one, it keeps you listening correctly, and two, it allows the customer to feel understood.”

give thanks

Are you saying thank you to your customers? “People are going into a car dealership paying a significant amount of money for a vehicle,” says Tice. “This is what keeps the dealership in business, so it is their responsibility to that client to thank them for trusting them to provide a vehicle.” Whether it’s through face-to-face conversation, email, or even a handwritten note, always thank your customers for choosing your dealership.

“Whether you’re the CEO or answering the phones, it’s important that from the first interaction you’re prepared, offering help, and being thoughtful.” Lauren Burt Once the customer realizes that the employee is genuinely invested in helping them, their demeanor will shift from protected to engaged. “If the people trust that the employee really wants to hear your answers, then they’ll open up,” says Tice. “It’s not a matter of selling as it is listening well. If you listen well, then the sales will come.” Back to Basics Good manners cost nothing, but bad manners could cost you a sale. Refresh your memory on basic etiquette and make sure to follow these tips. • Don’t interrupt the customer when they are speaking. • Always acknowledge a customer when they walk in the door. • Be respectful of personal space. • Act genuinely interested in what customers (or co-workers) say. • Make eye contact—but not too much eye contact. • Keep your fingers together with an open palm when you point at something to avoid being seen as aggressive.

• •

Keep your phone on silent when interacting with a customer. Wear your name tag on the right side, which allows people to easily see the badge and make eye contact when shaking hands.

Twenty-First Century Updates Digital etiquette isn’t significantly different than traditional etiquette, although any faux pas can easily be broadcast beyond the initial interaction. Be extremely aware of the way you converse both with customers and coworkers online. Without tone of voice and body language, the intent of a conversation can blur quickly. “You need to do everything you can using your words to communicate very clearly and in an upbeat attitude,” says Post. “It’s important to realize that without tone of voice, it’s going to be much harder to connect with what someone is saying.” Online interaction can be tricky to figure out, but that’s why it is so important to pay attention to what you say. Avoid using emoticons or typing in all capital letters in professional emails, respond

promptly and within 24 hours of receiving a notice, and when in doubt, change your form of communication to something that is more secure and interpretable—like a phone call. “The first thing you have to do in customer communications is figure out how they want to be contacted,” says Gould. Do they prefer phone calls, emails, or texts? Follow the customer’s preference—and when in doubt, ask. Businesses should also avoid the overuse of abbreviations when emailing a customer or interacting with them on social media, says Williams. Abbreviations may be convenient for the sender, but can cause confusion for the person on the receiving end. Too many abbreviations, bad grammar, or many misspelled words could create the notion that you are unprofessional, so always read over electronic communications before you press send. A Final Note Basic etiquette shouldn’t make your business seem stuffy or aloof. And it applies to every employee, says The Art of Etiquette’s Burt. “Whether you’re the CEO or answering phones, it’s important that from the first interaction you’re prepared, offering help, and being thoughtful.”

the hidden price of bad manners

Not only are bad manners just plain rude, but they also can cost you. Studies have looked at the toll of incivility in the workplace—on both employees and customers—and the results aren’t pretty.

80% lost work time worrying about the incident when they were the target of incivility at work 78% said their commitment to their employer declined after experiencing incivility at work 66% said that their performance declined when they were the target of incivility 63% lost work time avoiding the person whose behavior was uncivil 37% have personally experienced incivility at work 26% have quit a job because of an uncivil workplace 25% admitted to taking their frustration out on customers after experiencing uncivil behavior (Sources: “The Price of Incivility,” Harvard Business Review; Civility in America 2013)

FALL/WINTER 2016 27

top secret: dealer data Dive into our dossier on the state of the franchised dealer network. The network of franchised automobile dealerships in the United States is complex and often misunderstood by consumers, regulators, and dealers alike. It can be difficult to get a complete picture of the state of the dealer network. Some manufacturers are forthcoming with the number of franchises they have in each state while others obscure that information. Beyond that, there’s confusion amongst the general public as to the relationship between dealers and manufacturers. Why do some parts of the country have more franchised dealerships than others? Is it because of strong—or weak— franchise laws? Demographics? Or are there other factors at play?

According to Ted Stockton, vice president and director of economics services at The Fontana Group Inc., the factors that affect the number of dealers in an area include: • number of households • mileage driven • municipal boundaries • population over age 16 • public transportation • age of communities The age of communities is a particularly important factor when looking at the development of the dealer network in the West compared to the Northeast. When growth explodes in an

brands with the most dealerships in each state

Domestic brands dominate a map showing the manufacturers with the most dealerships in each state.

28 IOWA AUTO DEALER

Chevrolet

Chevrolet, Ford (tie)

Ford

Other

Alaska: Chrysler, Dodge, Ford, Jeep, Ram (tie) Hawaii: Ford, Honda, Toyota (tie) Rhode Island: Chevrolet, Chrysler, Jeep, Ram, Toyota (tie)

area, dealerships build around those areas of growth and in areas of easy access to a large number of people, like off interstates and in automalls. “The business model had been to have more dealers closer together in the ’50s and ’60s,” says Stockton. He notes that dealerships tended to be communitybased. “In 2000 [manufacturers] started to look system-wide and started to look at dealers collectively.” Those changes have impacted how the dealer network has developed regionally. The West developed later and faster than the Northeast and Midwest, so the dealer network there looks vastly different than other parts of the country. The historic dominance of domestic brands also played a role in the

nationwide dealership count 1. Ford 3,053 2. Chevrolet 2,982 3. Chrysler 2,210 4. Dodge 2,180 5. Jeep 2,167 6. Ram 2,106 7. Buick 2,014 8. GMC 1,712 9. Toyota 1,238 10. Nissan 1,049

development of the dealer network that carries through today. Domestic dealerships had a very high market share historically, so when import franchises entered the market they were a lot more selective, Stockton says. Oftentimes, the strongest domestic dealerships took on import franchises. Because of selection bias, import franchises tend to have higher sales relative to a linemakes’ overall market share, while domestic franchises tend to have a higher market share. Iowa Auto Dealer analyzed data from the National Automobile Dealers Association, state dealer associations, manufacturers, and the Census Bureau to create an overall picture of the state of the dealer network. Findings were both expected (California and Texas have the

brands with the most franchises in Iowa 1. Chevrolet 100 2. Ford 97 3. Buick 71 4. Chrysler 65 5. Dodge 65 6. Jeep 65 7. Ram 65 8. GMC 48 9. Lincoln 35 10. Cadillac 20 11. Toyota 16 12. Nissan 12

franchised dealerships per 100,000 people Top 10

1. Vermont 13.26 2. North Dakota 10.44 3. New Hampshire 10.37 4. South Dakota 10.25 5. Montana 9.68 6. Iowa 9.44 7. Wyoming 8.87 8. Nebraska 8.49 9. Maine 8.20 10. Wisconsin 7.94

highest number of franchised dealerships in the nation) and unexpected (Iowa has the highest number of Chevrolet, Dodge, and Ram dealerships per capita). We learned that while the Northeast has the highest number of import franchises per capita the Midwest has a vastly higher number of domestic franchises per capita than any other region (see regional breakdown, below). And we learned that, when it comes to sheer number of franchises, Ford and Chevrolet are still on top. These pages contain the highlights from our research, including profiles of the 23 linemakes with the most franchises in the state of Iowa.

Bottom 10

1. Nevada 3.25 2. California 3.37 3. Arizona 3.56 4. Alaska 3.93 5. Texas 4.16 6. Florida 4.16 7. New York 4.21 8. Washington 4.28 9. Colorado 4.45 10. Utah 4.54

13. Honda 11 14. Kia 9 15. Hyundai 8 16. Mazda 8 17. Volkswagen 8 18. Mitsubishi 7 19. Subaru 6 20. BMW 4 21. Audi 3 22. Mercedes-Benz 3 23. Lexus 2

regional breakdown Domestic Franchises (per 100,000 people)

Northeast: 5.67 South: 5.88 Midwest: 10.39 West: 3.91

Import Franchises (per 100,000 people)

Northeast: 3.08 South: 2.42 Midwest: 2.50 West: 2.36

FALL/WINTER 2016 29

franchise profiles

The 23 manufacturers with the most dealerships in Iowa are shown. Each profile shows which region has the most franchises per 100,000 people, which state has the most franchises, and which state has the most franchises per 100,000 people.

Audi

BMW

Buick

0.14 dealers per 100,000 people in the Northeast.

0.15 dealers per 100,000 people in the Northeast.

1.15 dealers per 100,000 people in the Midwest.

TOP REGION

MOST DEALERSHIPS

California (35)

California (49)

Texas (146)

MOST DEALERSHIPS PER PERSON

Vermont (.32 per 100,000 people)

New Jersey (0.21 per 100,000 people)

North Dakota (2.91 per 100,000 people)

THE IOWA ANGLE

Iowa has 0.13 BMW dealerships per 100,000 people.

Iowa has 2.27 Buick dealerships per 100,000 people—third highest of any state.

THE IOWA ANGLE

Iowa has 0.10 Audi dealerships per 100,000 people.

3rd

Cadillac

Chevrolet

Chrysler

Dodge

0.46 dealers per 100,000 people in the Midwest.

1.60 dealers per 100,000 people in the Midwest.

1.11 dealers per 100,000 people in the Midwest.

1.10 dealers per 100,000 people in the Midwest.

TOP REGION

MOST DEALERSHIPS

Texas (67)

Texas (227)

Texas (152)

Texas (150)

MOST DEALERSHIPS PER PERSON

South Dakota (1.28 per 100,000 people)

Iowa (3.20 per 100,000 people)

Wyoming (2.39 per 100,000 people)

Iowa (2.08 per 100,000 people)

THE IOWA ANGLE

Iowa has the most Chevrolet franchises per person and the ninth most franchises overall.

Iowa has 2.08 franchises per 100,000 people—second highest—and has the 10th most dealerships.

THE IOWA ANGLE

Iowa has 0.54 franchises per 100,000 people—eighth highest of any state.

THE IOWA ANGLE

1st

8th

9th

2nd

Iowa has the most Dodge dealerships per 100,000 people and is tied for 10th most dealerships. 1st

10th

Ford

GMC

Honda

Hyundai

1.53 dealers per 100,000 people in the Midwest.

0.83 dealers per 100,000 people in the Midwest.

0.36 dealers per 100,000 people in the Northeast.

0.28 dealers per 100,000 people in the Northeast.

TOP REGION

MOST DEALERSHIPS

Texas (227)

Texas (136)

California (124)

California (65)

MOST DEALERSHIPS PER PERSON

South Dakota (3.61 per 100,000 people)

Wyoming (1.88 per 100,000 people)

Wyoming (0.85 per 100,000 people)

Vermont (0.80 per 100,000 people)

THE IOWA ANGLE

Iowa has 1.47 dealerships per 100,000—the third most of any state.

Iowa has 0.35 Honda franchises per 100,000 people.

THE IOWA ANGLE

Iowa has the second most Ford dealerships per 100,000 people with 3.11. 2nd

30 IOWA AUTO DEALER

THE IOWA ANGLE

3rd

Iowa has 0.26 dealerships per 100,000 people.

Jeep

Kia

Lexus

Lincoln

1.08 dealers per 100,000 people in the Midwest.

0.25 dealers per 100,000 people in the Northeast.

0.09 dealers per 100,000 people in the West.

0.49 dealers per 100,000 people in the Midwest.

TOP REGION

MOST DEALERSHIPS

Texas (152)

California (57)

California (38)

Texas (55)

MOST DEALERSHIPS PER PERSON

Wyoming (2.22 per 100,000 people)

New Hampshire (0.68 per 100,000 people)

Hawaii (0.14 per 100,000 people)

Wyoming (1.54 per 100,000 people)

THE IOWA ANGLE

Iowa has 0.26 Kia franchises per 100,000 people.

Iowa has 0.06 franchises per 100,000 people.

THE IOWA ANGLE

Iowa has the second most dealerships per 100,000 people with 2.08 and is tied for 10th most dealerships. 10th

2nd

THE IOWA ANGLE

Iowa has 1.12 franchises per 100,000 people—fourth highest—and the seventh most dealerships. 4th

7th

Mazda

Mercedes-Benz

Mitsubishi

Nissan

0.21 dealers per 100,000 people in the Midwest.

0.12 dealers per 100,000 people in the Northeast.

0.11 dealers per 100,000 people in the Northeast.

0.37 dealers per 100,000 people in the Northeast.

TOP REGION

MOST DEALERSHIPS

California (54)

California (48)

Texas (25)

California (94)

MOST DEALERSHIPS PER PERSON

Maine (0.60 per 100,000 people)

Delaware (0.21 per 100,000 people)

Maine (0.38 per 100,000 people)

New Hampshire (0.83 per 100,000 people)

THE IOWA ANGLE

Iowa has 0.26 Mazda franchises per 100,000 people.

Iowa has 0.10 MercedesBenz franchises per 100,000 people.

Iowa has 0.22 Mitsubishi dealerships per 100,000 people which is the sixth most of any state.

Iowa has 0.38 Nissan dealerships per 100,000 people.

6th

Ram

Subaru

Toyota

Volkswagen

1.04 dealers per 100,000 people in the Midwest.

0.32 dealers per 100,000 people in the Northeast.

0.43 dealers per 100,000 people in the Northeast.

0.27 dealers per 100,000 people in the Northeast.

TOP REGION

MOST DEALERSHIPS

Texas (148)

California (50)

California (134)

California (67)

MOST DEALERSHIPS PER PERSON

Iowa (2.08 per 100,000 people)

Vermont (1.12 per 100,000 people)

Wyoming (1.19 per 100,000 people)

Vermont (0.64 per 100,000 people)

THE IOWA ANGLE THE IOWA ANGLE

Iowa has the most franchises per 100,000 people and the 10th most dealerships. 1st

Iowa has 0.19 Subaru franchises per 100,000 people.

THE IOWA ANGLE THE IOWA ANGLE

Iowa has 0.51 Toyota franchises per 100,000.

Iowa has 0.22 Volkswagen franchises per 100,000.

10th

FALL/WINTER 2016 31

THE CLOSE

automating automotives

The University of Iowa leads the way in vehicle safety research. We may be decades away from fully autonomous vehicles ruling the road, but new safety features are paving the way for the driverless cars of the future. The University of Iowa, through the Transportation and Vehicle Safety Research Program, is a national leader in both research and education efforts. The Transportation and Vehicle Safety Research program focuses on improving technology through a better understanding of human behavior. Areas of research include young drivers, materials and pavement, crash reconstruction analysis, and safety system design and evaluation. A small fleet of research vehicles, including a Volvo XC90 equipped with a vanity license plate reading AU2M8, help the researchers test real world situations, as does the National Advanced Driving Simulator (NADS). The NADS is the world’s most advanced ground vehicle simulator and is used by automobile manufacturers and suppliers, pharmaceutical companies, and federal and state departments of transportation to safely test things like distracted driving, impaired driving, and connected vehicle technologies. In addition to conducting research, the Transportation and Vehicle Safety Research program helps educate consumers. “We think the education component, getting the public ready for autonomous cars is really important,” says Daniel McGehee, director of the Transportation and Vehicle Safety Research Program at the University of Iowa.

The University of Iowa and the National Safety Council joined forces to develop MyCarDoesWhat.org, a brand agnostic website to educate people about the driver assistance systems found in vehicles today. “We want people to understand what causes crashes: sleepiness, fatigue, distraction,” says McGehee. “These technologies step in when your attention fades out.” Driver assistance systems, such as blind spot detection and automatic parallel parking, are the first step on the way to a driverless future. But because these technologies are rapidly developing and systems vary from one vehicle to the next, many people don’t understand the features. University of Iowa research indicates that if consumers aren’t introduced to their vehicle’s safety features within the first 90 days of ownership they are unlikely to properly use those systems. “There’s an expectation that the technology is more advanced than it is,” McGehee says, emphasizing that current driver assistance systems are meant to be supervised. “This is like having a teen driver with a permit,” who needs to be heavily supervised by a more experienced driver. Making sure that consumers are educated about what their vehicles can— and can’t—do is key to reducing crashes and making the roads a safer place for everyone. To learn more about the University of Iowa’s research, visit ppc.uiowa.edu/tvs or nads-sc.uiowa.edu.

The Volvo XC90 research vehicle at the University of Iowa has a vanity plate reading AU2M8. PHOTO BY JUSTIN TORNER, UNIVERSITY OF IOWA

32 IOWA AUTO DEALER

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