Iowa Auto Dealer (Spring/Summer 2016)

Spring/Summer 2016

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FROM THE PRESIDENT

celebrating iowa’s auto dealers In the last edition of Iowa Auto Dealer (the first after a 30-year hiatus), I used this space to tell you what I love about magazines and why I think it is important that the Iowa Automobile Dealers Association publish one. In this edition, I want to tell you what I love about automobile dealers and how that respect for what you do for Iowa’s motorists and the way you serve your communities informs and directs not only the content and tone of this magazine but also the daily operations of your association.

I attended kindergarten for several weeks in Ames when my family was transitioning to civilian life following my dad’s Air Force career. I have almost no memory of it. I can’t remember my teacher’s name or any of the kids in that class. I don’t even recall the house we lived in. But I do remember going with my parents to Dunlap Oldsmobile-Cadillac. The fun and excitement that surrounded the purchase of that Olds Delta 88 are still vivid in my memory. I can picture the salesman’s face. I remember his smile and slick hair. I remember that he gave my brother and me each a bottle of Dr. Pepper.

Shortly after that purchase, our family moved to Boone. My school memories kick in at that point. Mrs. Grether was my kindergarten teacher and that’s when I met lifelong friends like Gary Wilcox and Mike Garvey. I tell you those specifics both to demonstrate that my long term memory is intact and to place my next automobile dealer memory in context.

Grandpa Dewey drove a light blue pickup truck that he bought at Herb Moffitt’s Ford in downtown Boone. My grandpa was a frugal do-it-yourselfer. He performed all the repairs on his 1948 Allis tractor and the same held true for everything from the floor “Your stories need to be told Chalmers furnace to the cistern pump. But truck repairs were always performed in and shared.” the service department at Herb Moffitt’s Ford. That truck was the lifeline between my grandparents’ small farm and the rest of the world. Trusting its maintenance and repair to anyone other than the dealer was out of the question for my grandpa.

There were four automobile dealerships in Boone while I was growing up. In hindsight, their impact on me and that town was nothing short of miraculous. The Chrysler dealer served in the state senate. The Oldsmobile dealer was on the city council. The Ford dealer was my scoutmaster. The Chevrolet dealer was an economic development leader who helped revitalize the Highway 30 corridor.

It didn’t take me long after going to work for you ten years ago to figure out that my childhood automobile dealer experiences were not at all out of the ordinary. The fun, excitement, and kindness that I experienced at Dunlap Oldsmobile-Cadillac is still happening every time someone goes shopping in one of your stores. Like Grandpa Dewey, Iowans still place trust and reliance in the service departments of their local dealers. And just like Boone in the 1970s, towns and cities across Iowa are still incredibly well served by their local civic-minded automobile dealers.

That deserves to be acknowledged and memorialized. Your stories need to be told and shared. Sure, regulatory newsletters and legislative updates have their place. Your association must supply you with the compliance details and breaking news, but it also needs to take a broader view. It needs to celebrate your businesses’ accomplishments, successes and best practices.

That is why we publish and distribute Iowa Auto Dealer. I hope you will enjoy it and share it.

Bruce Anderson IADA President

SPRING/SUMMER 2016 1

DEPARTMENT TITLE

in this issue

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

Mike Clemons

DIRECTOR AT LARGE Scott Deter HEAVY DUTY TRUCK DIRECTOR

Jon McCoy

INDEPENDENT DIRECTOR

departments

DISTRICT ONE DIRECTOR

01

Dale Finch Jeff Haun

DISTRICT TWO DIRECTOR

Doug Krieger

DISTRICT THREE DIRECTOR

Matt Brown

DISTRICT FOUR DIRECTOR

John Gookin

NADA DIRECTOR Mark Birdnow

from the president Celebrating you.

04

pro tip Attract top talent with an improved hiring process.

EDITOR Brittany Bungert COMMUNICATIONS ASSISTANT

Lauren Iverson

Iowa Auto Dealer 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: Senator Joni Ernst toured a new car dealership as she traveled around Iowa this winter. Find out what the senator wants to tell Iowa’s dealers on page 12.

PHOTO BY JOHN LEE

2 IOWA AUTO DEALER

08

12

18

10

14

36

iad foundation Community college programs need your support. printing & promotions Promotional products bring lasting value.

five things What Senator Joni Ernst would like you to know. show & tell Two dealerships tackle community outreach.

q&a Plan for your dealership’s future. the close Students design an award-winning solar vehicle.

features

20

going digital When it comes to advertising, it’s time to think beyond traditional media.

26

under attack Protect one of your most valuable assets: Your computer network.

32

ready to serve Dealership employees give back to their communities.

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

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PRO TIP

now hiring

Attract top-notch employees by improving your hiring practices.

A dealership is only as good as its employees, which is why you need to get it right when adding someone to your team.

Not only can hiring the wrong person be expensive, but it also has the potential to hurt employee morale.

“Hiring is one of the most important duties a business owner or manager will face,” says Nan Boland, president of HireQuality HR Solutions, the company behind the Iowa Employment Conference, a twice-a-year event providing human resources training and education. “Each new hire has a tremendous impact and influence on the company’s culture as well as manpower and bottom-line. The stakes are high, so you need to make sure that your new hire is committed,

4 IOWA AUTO DEALER

knowledgeable, and is a good addition to your entire team.”

Maryellen Adams of CareerCo, an online job recruitment service, admits that hiring can be a headache. But she says if dealers go into the process with a plan and a new perspective they can find success.

“Recruiting should be more about attracting, developing, and retaining potential employees,” Adams says.

Before you post the next job opening, read through these tips for improving your process and the quality of your new hires.

“The stakes are high, so you need to make sure that your new hire is committed, knowledgeable, and is a good addition to your entire team.”

Nan Boland

PRO TIP BE PROACTIVE. “Waiting until you need to fill an open position to start looking for candidates can prolong the time-to-hire and lead to bad hiring decisions,” says Adams. She suggests building a “bench” of potential hires by keeping files of prospective employees on hand. “A strong employee referral rewards program can be a vital strategy in finding talent, too,” she adds.

REMEMBER YOUR COMPETITION.

The job market has changed from the depths of the recession, so dealerships will find themselves competing with other businesses for top candidates.

“I think many companies or business owners think their business is unique and someone would be lucky to work for me.

In fact, the exact opposite should be their mindset,” Boland says. “The job market is very tight right now, with unemployment as low as it’s been in many years. Good candidates won’t be on the job market long and likely they will be receiving multiple offers if they are a great candidate.”

LOOK OUTSIDE THE INDUSTRY.

Experience in other fields can translate well to working in a dealership.

Prospective employees with experience as a restaurant server or bartender often have skills that translate well into sales, while

“After all, some of the best people for your organization’s future success are probably not in the car business at the moment.”

Maryellen Adams applicants with call center or customer service experience can be an asset to a dealership’s BDC. “It’s time to be more open-minded about casting a net when searching for new employees,” Adams says. “After all, some of the best people for your organization’s future success are probably not in the car business at the moment.”

WRITE A JOB DESCRIPTION THAT SELLS. A well-written job description

can make a difference when attracting applicants. “A good rule of thumb is to remember that the more generic your listings, the more generic your applicants will be,” says Adams. “Each and every open position you promote should contain information about its unique responsibilities and qualifications.”

Boland describes the job description as “the initial marketing material that will attract the right candidates for the job.” She recommends that every job description include a:

• •

Job title and objective Summary of the general nature and level of the job • Description of the function and scope of the position • List of duties and key functional responsibilities in order of significance • Description of the relationships and roles within the company, including supervisory positions and subordinating roles Additionally, some job descriptions may benefit from including requirements for the position (such as degrees or specific training), location, information about equipment the applicant should be comfortable using, and salary.

BRAG A BIT. To get the best employees, you need to sell applicants on why your dealership is a great place to work.

“Now is not the time to be humble,” says Adams. “If your dealership has won awards and accolades as a ‘best place to

ask this, not that

There are some questions you just can’t ask in a job interview. Use these questions instead.

DON’T ASK

ASK

• Are you a member of the National Guard or Reserves?

• Do you have any upcoming events or obligations that would require extensive time away from work?

• Are you a U.S. citizen? What is your birthplace?

• Are you authorized to work in the U.S.?

• Do you have children?

• Do you have other responsibilities that may interfere with your ability to fulfill any job requirements, including working overtime and travel?

• What religion do you practice?

• Are you able to work weekends and holidays?

• What is your height? Weight?

• Would you require any accommodations to perform the job duties?

• Do you take drugs?

• Do you use illegal drugs?

SPRING/SUMMER 2016 5

PRO TIP

Resources CareerCo

CareerCo is IADA’s preferred provider for job recruitment and hiring tools. They provide a performance-based program allowing dealerships to pay on a per-applicant basis to find qualified candidates to fill open positions.

For More Information: Maryellen Adams | 888.660.9060 iada@careerco.com careerco.com

Iowa Employment Conference

The Iowa Employment Conference has been providing human resources training since 2007. With a spring conference offering more than 50 educational sessions and a fall conference focusing on a specific topic impacting employers, the Iowa Employment Conference provides multiple ways for companies and human resources professionals to stay up-todate on best practices. The Spring 2016 Conference will be held April 20–21 and the Fall 2016 Conference will be held October 25. Both conferences will be held at Prairie Meadows in Altoona.

For More Information: iowaemploymentconference.com

6 IOWA AUTO DEALER

work,’ by all means make sure that is front and center in your posting!”

Consider including the following in job postings: • What sets your dealership apart?

• What perks do your staff enjoy?

• Do you offer benefits like access to fitness facilities, flexible schedules, or a stocked kitchen?

• Does the position offer a path to advancement?

“These are the things that will attract the best job seekers,” Adams says. “In fact, millennials (who by the way are the future of your business), typically are more interested in a company’s culture than salary.”

ASK THE RIGHT QUESTIONS. First and foremost, know the law. “Make sure you are only asking questions that you can legally ask,” Boland advises. Avoid yes or no questions and instead focus on openended behavioral questions, such as “Tell me about a time when you had to step out of your comfort zone at work,” “What is a typical way you deal with conflict?” and “Describe a difficult decision you made in the past year.”

TREAT AN APPLICANT LIKE YOU WOULD A SALES LEAD. “You wouldn’t

allow a sales lead to sit in your inbox or phone calls go unanswered. You can’t hire someone without responding to their application,” Adams says. Create and commit to a consistent follow-up routine that connects you with applicants that have potential.

LO O K F O R R E D F L AG S . An applicant being late for the interview or speaking badly about a former employer are all signs you should proceed with caution.

A S S E S S C O M PAT I B I L I T Y. Just because you like someone, doesn’t mean they are a good fit.

U P DAT E YO U R W E B S I T E . Your website can be a powerful recruitment tool. Adams suggests maintaining an up-to-date careers page on your website and using your staff page as an opportunity to share employee profiles and success stories that “illuminate the opportunity for professional growth at your organization.”

DON’T PUT TOO MUCH EMPHASIS O N T H E I N T E RV I E W. “Anyone can

make a good impression for a half hour,” Boland says. She recommends doing your homework before the interview by preparing a list of questions that every candidate will be asked and writing down answers during the interview so it is easy to compare applicants. After the interview, check references and do background checks, computer-based testing, and drug testing.

INCLUDE CURRENT EMPLOYEES.

Current employees can provide valuable feedback about candidates during the hiring process. “Including a select group of key employees in the process will allow you to get different perspectives about a potential new hire,” says Adams.

“A hiring committee of three or more employees can be a tremendous asset in the hiring process and can turn your staff into HR pros. Better yet, it will give those employees a real sense of inclusiveness and let them know how much they are valued.”

LOOK BEYOND THE RESUME. “Keep in mind that a resume is designed to draw you in and dazzle you,” Adams says. “It is not always a totally accurate view of who they truly are as a person and what type of employee that they will be, if hired.”

DEVELOP A STRONG ON-BOARDING PROGRAM. “You’ve spent a lot of time

finding the best person, now you need to keep them. Having a clearly defined on-boarding program is crucial. Providing new hires with an orientation and training program to help them settle into their new positions within your company. It’s the first step in giving them the keys to success and their future within your company,” says Boland.

EMPHASIZE THE ENVIRONMENT.

“Employees today are looking for a great working environment where they can work hard and play hard,” Boland says.

“If you are too serious they will burn out and start looking elsewhere.”

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IOWA AUTOMOBILE DEALERS FOUNDATION FOR EDUCATION

creating a connection Iowa’s community colleges are looking for more than parts and vehicle donations—they’re looking for meaningful opportunities for students and dealers to come together.

BY LAUREN IVERSON

North Iowa Area Community College

Northwest Iowa Community College

Northeast Iowa Community College

Iowa Lakes Community College Western Iowa Tech Community College

Hawkeye Community College

Iowa Central Community College

Kirkwood Community College Des Moines Area Community College

Scott Community College

Iowa Valley Community College

Iowa Western Community College Southwestern Community College

Indian Hills Community College Southeastern Community College

Iowa’s 15 community colleges offer automotive technology programs across the state.

Offering more than 50 programs in areas such as automotive collision, automotive mechanics, and diesel mechanics, Iowa’s 15 community colleges serve students pursuing careers in the auto industry across the state. There is a constant need for assistance from Iowa dealers, but the support these programs look for is often overshadowed by parts donations.

“The biggest thing we can do is one, get the dealers in our classrooms and two, get the students in their dealerships to tie everything together,” says Andy Summers, an automotive technology instructor at Indian Hills Community College in Ottumwa. “I think if we had [students] in the dealerships and seeing real life work, then we’d start cranking out some really

8 IOWA AUTO DEALER

good students.”

Community college instructors statewide desperately want more personal involvement from dealerships. This can be accomplished in a multitude of ways, including attending high school career fairs, talking with school guidance counselors about opportunities and benefits within the industry, and educating parents and future students about the validity of careers in the field, says Larry Danielson, professor and coordinator of the automotive technology program at Iowa Lakes Community College in Emmetsburg and member of the Iowa Automobile Dealers Foundation for Education board of directors.

“You’re not requiring a four-year degree, but they’re very

IOWA AUTOMOBILE DEALERS FOUNDATION FOR EDUCATION

technical fields,” says Danielson. “These individuals will be able to achieve a better than average salary and they’re going to have to have better than average skills.”

It’s commonly misunderstood that these programs are easy, says Danielson. This is why instructors want dealership support—to help displace the mindset that students have to attend a four-year institution in order to be successful. Though parts donations are essential to the survival of these programs, it’s the student-dealer interaction that will aid in creating excellent future technicians. “[Donations] are one side of the deal,” says Gary Junge, owner and CEO of Junge Automotive Group and a member of the Iowa Automobile Dealers Foundation for Education board of directors. “The rest is we need dealer involvement and student involvement. You can have all the parts in the world, but if you don’t have students then there’s nothing.”

Assisting the students with hands-on training is a way to invest in upcoming industry employees. Not only does it benefit a dealer’s future, but it also creates a foundation for students to see what a high-level career looks like in a real-life setting.

“I think the biggest benefit is it re-excites them,” says Summers. “It lights the fire back under them and it becomes more of a reality of what they’re training for.”

Dealer involvement is a way for students to start understanding the responsibilities and expectations of working

“You can have all the parts in the world, but if you don’t have students then there’s nothing.”

Gary Junge in the automotive retail industry. Not only does it validate and strengthen what they learn in a classroom setting, but it also complements the curriculum and adds valuable life experiences, says Danielson. With industry needs continually evolving, many instructors try to actively recruit area employers to participate on advisory committees.

“This gets us up-to-date on what skills they need,” says Danielson. “It helps us make sure what we’re doing in our program reflects their needs.”

Dealership involvement in the automotive programs impacts the skill level of graduates who will eventually be members of their teams. It’s a way for dealers to shape students into proficient and accomplished employees. With more involvement from Iowa dealers, instructors will be better equipped to guarantee qualified technicians are available for dealerships to hire.

“These things are very important to our future,” says Junge. “We need to build more technicians, parts people.

We need all of them. I feel our responsibility is to support these programs.”

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SPRING/SUMMER 2016 9

IADA PRINTING & PROMOTIONS

fab freebies

Promotional products provide a significant return on investment.

At more than 5,700 impressions per item, bags are the most visible promotional product.

83% of consumers value the practicality of a promotional umbrella and would keep it.

Younger consumers and men are more likely to own branded USB drives.

There’s better advertiser name recall from promotional products than ads in print publications.

57%

Reaching out to a rural area?

The percentage of consumers who report feeling more favorable about a company that gives them a free shirt.

Calendars and hats are popular with rural consumers (and men especially favor headware).

69% of people will pick up a promotional product if they find it to be useful.

own logoed drinkware

per week.

impressions over their lifetime.

Midwesterners own an average of

10.7 promotional products—the most of any region in the U.S.

Baby boomers are more likely to own promotional millennials

68%

of Midwesterners own a pen featuring a company’s logo.

use it 2–3 times

3,136

calendars while

Half of consumers who

Hats with logos will make

91% of people have at least one promotional product in their kitchen.

favor desk accessories featuring logos.

Ad plates are the most popular promotional item sold by IADA Printing & Promotions.

Sources: Advertising Specialty Institute, Promotional Products Association International, IADA Printing & Promotions

10 IOWA AUTO DEALER

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FIVE THINGS

5

things from joni ernst

What the United States senator wants Iowa’s automobile dealers to know.

12 IOWA AUTO DEALER

1 2

Vote! Don’t underestimate the importance of your voice in our country’s electoral process.

All local, state, and federal elections matter.

Businesses large and small are essential to the American economy. This includes dealerships. New-car dealerships in Iowa employ 12,000 people—in fact, years ago, my mother was also employed by an Iowa auto dealer. Dealerships across our state generated about 16% of total retail sales in the state in 2014. Businesses like these are just one of the reasons why Iowa is among the leading states in the nation for low unemployment.

FIVE THINGS

legislation and regulations impact you and your employees. Hearing directly from you helps me better represent Iowans in the Senate and inspires me to be your voice when important issues are debated and considered. Never hesitate to reach out to me on issues of importance.

Senator Joni Ernst became the first woman from Iowa to hold federal elected office when she was elected to the U.S. Senate in 2014. Senator Ernst recently retired as a Lieutenant Colonel in the Iowa Army National Guard and previously served as a state senator and county auditor.

3

As a member of the U.S. Senate Small Business and Entrepreneurship Committee, I am committed to supporting efforts to ensure our small businesses continue to grow and thrive. After all, small businesses, like dealerships, are the backbones of our local communities, often leading the way in charitable giving and supporting local organizations. Never underestimate how small business engagement brings people together and improves the livelihoods of those in our state.

4 5

Stay in touch. I was sent to Washington to represent you! It’s important to me that I know how our business l e a d e r s, l i ke c a r d e a l e r s, feel about the issues and how certain

PHOTOS BY JOHN LEE

Thank you for hiring veterans and National Guard members. Remember, they are highly trained leaders that play a valuable role in our communities. These men and women make excellent employees, and they’ve gained these skills through their service to our country. They are disciplined and possess important leadership and teamwork capabilities that can help build your business and inspire people at the same time.

Senator Joni Ernst tours Wes Finch Auto Plaza in Grinnell.

SPRING/SUMMER 2016 13

SHOW & TELL

a night for nostalgia Knoepfler Chevrolet hosts a drive-in movie on the dealership’s lot.

In 2015, it was time for a change.

Knoepfler Chevrolet in Sioux City wanted to do something for t h e c o m m u n i t y. S o m e t h i n g n e w, something different.

They decided to turn the dealership into a drive-in movie theater.

Drive-in movies, once a popular part of Americana, have faded. There are fewer than 400 drive-in theaters across the United States, according to the United Drive-In Theatre Owners Association, and just four are located in Iowa. For Knoepfler Chevrolet, the concept of bringing a drive-in movie to the dealership was the perfect intersection of nostalgia and car culture.

“We picked a movie that was relevant to cars and decided to go with a classic,” says

Director of Operations Joe Knoepfler. The dealership selected American Graffiti, the 1973 movie about high school graduates driving around town the night before they leave for college. People who hadn’t seen the coming-of-age film would want the opportunity to see it on the big screen and the film would “tug at the heartstrings” of those who remembered the movie from their younger days.

“We ended up with a lot younger of an audience than we expected,” Knoepfler says, noting that while attendees ranged in age from 18 to 65, the average age group was in their mid- to late-twenties.

In addition to creating a fun evening for customers, the event gave back to two community organizations.

Attendees were asked to bring one

can of non-perishable food per person to donate to the local food bank. And Boy Scouts sold refreshments—donated by the dealership—as a fundraiser, with all proceeds going directly to the Scouts.

Making It Happen Knoepfler Chevrolet, located in downtown Sioux City, isn’t near the other dealerships in town. Because of that, it was important to have the drive-in take place on the dealership lot. Employees cleared off a large section of the elongated lot, parking inventory in garages and shops to make room for about 250 spots.

The movie was projected on a screen hung over the roof of a two-story building by a local company who had experience in outdoor movies. Outdoor speakers provided sound for any attendees without a car, while the audio was transmitted directly to car radios for an optimal viewing experience.

“They really set us up and we just made sure we had room,” Knoepfler says. “It was by no means a freebie, but the publicity we got and the excitement of the community was well worth it.”

Knoepfler describes the response to the event as “overwhelming,” with more than 500 people RSVPing their plans to attend on Facebook. Although actual attendance was lower than Facebook RSVPs, the social media and phone traffic from the event gave the dealership a chance to Attendees watch American Graffiti during the first annual drive-in movie at Knoepfler Chevrolet in Sioux City.

The movie was projected on the side of a two-story building at the dealership and attendees had the option of listening to the movie through outdoor speakers or their car radio.

PHOTO COURTESY OF KNOEPFLER CHEVROLET

14 IOWA AUTO DEALER

SHOW & TELL

connect with customers on a different level. “The number of people sharing [the event] on social media was amazing,” Knoepfler adds.

Community Focus The drive-in movie was just one of a number of community-focused initiatives that the dealership embarked on to raise awareness of the dealership within the community last year.

“It’s lovely to advertise during the news, but if you can get on the news it’s more effective,” says Knoepfler.

Each month, the dealership goes to local gas stations, coffee shops, and restaurants and gives them money to spend buying food, drinks, or tanks of gas for customers. The money is spent at the business’ discretion and is accompanied by a card saying that the meal, drink, or fuel was paid for by Knoepfler Chevrolet.

In the summer, the K Chev Street Team places envelopes with certificates for a free oil change and a letter of gratitude under windshield wipers when they see a parked vehicle with a Knoepfler emblem.

The reaction, Knoepfler says, has been phenomenal. “These concepts may seem like they’re just an expense, a waste of money, but when you put it into retrospect, what you pay for a newspaper or 30-second spot on television, it’s not so bad. When someone gets a free oil change or

their meal paid for, they’re going to tell 20 people.

“We’re just trying to tell people, ‘We’re here, we’ve been here a long time, and we care about our community, too.’”

watch list

These classic car movies are a must-see for any automobile aficionado.

American Graffiti (1973) Cars (2006) Chitty Chitty Bang Bang (1968) Christine (1983) The Fast and the Furious (2001) Goldfinger (1964) The Italian Job (1969) Le Mans (1971) The Love Bug (1968) Rush (2013) Senna (2010) Smokey and the Bandit (1977) The Blues Brothers (1980)

SPRING/SUMMER 2016 15

SHOW & TELL

wowing women

Willis Auto Campus focuses on female customers.

The inaugural Women of Willis event, held in May 2015, gave the dealership the opportunity to thank guests while displaying convertibles and featuring community partnerships. Pictured, from left: former CFO Ann Jeffries, Senior Financial Accountant and Women of Willis team member Kelly Grossman, and Senior Financial Accountant Kathy Williams.

PHOTO COURTESY OF WILLIS AUTO CAMPUS

Over the years, a small but significant shift has taken place in automotive retail: Women have become a large customer base in an industry long dominated by men, influencing the majority of purchases and requesting the majority of service work.

The statistics can be sobering for dealers and manufacturers, however. Nearly three in four women feel misunderstood by car manufacturers, despite the fact that female drivers outnumber men in the United States, according to research by growth strategy company Frost & Sullivan.

So what does that mean for dealerships?

For Clive dealership Willis Auto Campus, it meant creating a program to specifically address the needs of women.

“Women of Willis signifies a conscious effort by Willis Auto Campus to focus on women both as guests and as employees,” says Human Resources Manager Katie Stull. “The Women of Willis recognizes the importance of women in the market and workplace.”

Stull and six co-workers, including representatives from multiple departments, comprise the Women of Willis team.

“We made a point of incorporating core team members from across the dealership to include feedback and viewpoints from every department,” Stull says. “We also made a point to invite a man to join our team, and are so happy to have him, to make sure we are including his point of view on events, marketing, and ideas that impact all our guests.”

16 IOWA AUTO DEALER

Like many dealerships, Willis strives to make the dealership experience a positive one for their customers. Part of that discussion has centered on who their customer is.

“Diversity has been a topic of discussion at Willis Auto Campus for several years based on marketing data for our location and our customer demographics,” Stull says. To create a more comfortable environment for their customers, the dealership is working to develop “an employee population that mirrors the make-up of our customers.”

Another aspect of making the dealership a more comfortable environment for guests included facility reviews conducted by the Women of Willis team, where the team walked through the dealership to view it from the customer’s perspective. The resulting changes on furniture layout, greenery, and signage were noticed by customers.

The Women of Willis team is also working to implement an employee training program focusing on the guest experience.

“One observation our team made at the beginning is that this initiative isn’t just important at the point of sale, but throughout the whole relationship, including service and technology clinics,” Stull says.

The timing of Willis Auto Campus creating the Women of Willis program serendipitously aligned with a Lexus initiative to focus, in part, on women and their buying power. Willis agreed to join Lexus’ efforts and officially launched the Women of Willis program.

SHOW & TELL

“We love the Women of Willis,” says Peggy Turner, Lexus Vice President of Customer Services. “They are passionate and dedicated to making our dealers a more comfortable environment for women.”

The long-term goals for the Women of Willis focus on both customers and employees.

For the community as a whole, the team wants to develop ongoing community partnerships; provide classes for women on topics like new car information, technology, and negotiation techniques; and host community events. For employees, the team plans to implement recurring service and diversity training and incorporate flexible benefits.

In its first year, the Women of Willis hosted several events, including a Trunk or Treat experience complete with decorated MINIs and a coat drive that collected more than 100 coats, plus hats and gloves, for kids in need.

They also had more grown-up gatherings, including a “Women Celebrating Women” event featuring presentations from a local boutique, spa, and jeweler. They participated in the dealership’s new car show, sharing details about the initiative with attendees while enjoying cupcakes and a signature cocktail.

Although many of the most visible parts of the Women of Willis program focus on customers, employees are an important part of the program, too. The team conducted a survey of female employees and received helpful feedback, particularly about dealership culture.

“Having core values and living to them with every interaction makes us a dealer of choice for all of our employees, and our women have definitely noted an appreciation for it,” Stull says.

The impact of the Women of Willis program isn’t limited to just female customers and employees, however. “Increasingly, all demographics are interested in organizations that give back to their community and stand behind core values, and [Women of Willis] helps Willis communicate that,” says Stull.

girl power

“Women are the fastest growing segment of luxury power consumers,” says Peggy Turner of Lexus. According to Turner, • 90% of women influence vehicle purchases • Women purchase half of all new cars • 65% of guests on the service drive are women • Women spend $300 billion on cars annually • Globally, the female economy is worth more than $20 trillion

lexus difference

“We desire to be a leader in the luxury car segment in serving the vehicle needs women and emerging audiences expect by shifting the culture and moving away from the traditional perceptions of the dealership environment.”

PEGGY TURNER

Property & Casualty • Employee Benefits Health Management Services • Surety Bonds Agri-Business Insurance Services Personal Insurance • Financial Services

4200 University Avenue, Suite 200 West Des Moines, IA 50266 800-677-1529 | LMCinsurance.com SPRING/SUMMER 2016 17

Q &A

succession success

Estate-planning experts weigh in on preparing for the future.

Q: A:

Our dealership is planning for the future. What do current dealers and their successors need to keep in mind when beginning the succession planning process? What mistakes should we avoid?

The first step in your business succession plan should be identifying your wants and expectations.

How soon do you want to retire? What kind of a phase-out or transition period do you expect to have? Will you, and if so how will you, stay involved in the business after retirement? What are your expected cash-flow needs postretirement, and how will they be met? As with any significant planning, it is imperative to determine your goals up front. To paraphrase the great Yogi Berra, if you don’t plan where you’re going, you might end up somewhere else.

Be sure to consider all your options. Succession planning is different for every business. The best approach for your dealership could include a sale to a third party or a sale to insiders like key employees. Or it could include a transfer to your family members, whether during life or at death, and whether by sale or gift, or any combination of those. You should keep all of those options open, at least at the outset of the successionplanning process.

One big mistake to avoid in succession planning is being too rigid. Circumstances change over time, even over a few years.

Businesses have good years and bad; employees come and go; and people get married or divorced, move away or, yes, even die. A succession plan needs to be flexible to account for these and other contingencies. As one example, a buy-sell or option agreement that sets a fixed purchase price for the business now, even though the purchase or option may not be triggered until years down the road, might not reflect economic reality or be consistent with your desires when it goes into effect. In all aspects of the succession plan, retaining flexibility is an important key to achieving your goals.

JAY P. SYVERSON Nyemaster Goode PC | nyemaster.com

Your dealership is probably your most valuable asset. Wise succession planning begins with a review of what your business could be sold for today and the steps that can be taken to maximize the dealership value going forward.

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

18 IOWA AUTO DEALER

You need to work closely with your professional advisors to create a plan right for you. You need your investment advisor and accountant to establish your current financial status. You also need a lawyer to advise how the plan can be structured and to prepare needed documents.

To plan properly, you must understand your goals. Are you most concerned with planning for an untimely death or disability? Do you want or need the business to provide you with retirement income? Or is your primary goal to eventually put your children or another person in charge so that the business will continue? If retirement income is your primary goal, you must compare the benefits of your plan to the benefits of an outright sale.

A common mistake is picking the wrong person or persons to be your successor. You may love your children or your nephew, but that doesn’t mean they have the capability to successfully run the dealership.

Planning on the cheap is a mistake. Your end product might not meet your true goals, your documentation might not be effective to carry out your intended plans, your plan might unintentionally give your successor legal rights that interfere with your discretion to run the dealership while you are still in control, etc.

Another planning mistake is treating your dealership just like any other business. It is different for number of reasons. Both the value of your dealership and its future prospects are intrinsically tied to your relationship with your franchisor. Both can be dramatically affected by the actions of other manufacturers and your local competitors. Therefore, it is best to use a legal advisor who knows the automotive industry, knows the current value of your dealership franchise, and can tell you whether state laws allow you to make transfer plans that the manufacturer might try to veto.

JAMES W. RADIG Arenson Law Group | arensonlaw.com

In talking with colleagues about dealer succession, we usually hear the comment, “This rarely gets done, or done right, because dealers simply don’t want to discuss their demise.” Respectfully, we dissent. From our experience, succession planning rarely gets done, or done right, because the issues are extremely complex and involve much more than the essential tax and financial planning. While a skilled estate planning attorney is critical to the process, a competent succession plan also requires a

Q & A

STEPHEN P. LINZER & DARREN T. CASE

Tiffany & Bosco PA | tblaw.com

Jay P. Syverson Nyemaster Goode PC Jay assists business owners, farmers, and families with trust and estate matters and tax issues, with an emphasis on estate planning and trust and estate administration.

James W. Radig Arenson Law Group Jim’s areas of practice include estate planning, business law, corporate law, bankruptcy, litigation, and real estate law.

Stephen P. Linzer Tiffany & Bosco PA Steve serves as lead counsel for more than 60 dealerships, is an advisor to many automobile advertising trade associations, and serves as National Association of Dealer Counsel President.

Darren T. Case Tiffany & Bosco PA Darren assists families and individuals in the area of estate planning, probate, and tax.

MEET THE EXPERTS

complete and full understanding of the dealer’s situation and the dealership’s unique set of circumstances.

With respect to the dealer’s situation, in addition to tax planning there are many other factors to evaluate including: What are the dealer’s wishes with respect to the dealership? Can they realistically be met? Are there health issues with the dealer and/or his family? What is the dealer’s family situation (that is, is there a spouse and any children)? Are one or more of the family members capable of succeeding the dealer? If so, can the dealer decide between family members without discord? How likely is the family member to be accepted by the factory?

If there is no family member capable of succeeding the dealer or discord is likely, is there a third-party buyer?

Next, there must be a full evaluation of the dealership itself including: Whether there should be a succession at all? Is there a higher and better use for the facility?

Is the facility sufficient or are new capital expenditures needed? What is the future of the dealership in the community? What is the competence and stability of the employees (including management)? If the dealership has competent and stable management, what are the ages and how is the health of the management? Are they likely to remain at the dealership? Answering all of these questions and the numerous other questions left unmentioned is a necessary and critical part to implementing a successful business succession plan.

Our point is for the dealer attorney to be extremely thorough in analyzing as many factors as he or she can envision, which will help the tax and estate planning attorney address how to transition the business in a taxefficient manner.

With respect to the second question posed, the most frequent mistake in succession planning is to only deal with the succession of the franchise upon the death of the dealer principal. Succession takes place in other scenarios which are often neglected—the temporary disability of the dealer, the permanent disability of the dealer, and the dealer’s desire to simply “slow down” without leaving the dealership. Each presents its own issues and requires yet additional evaluation.

Overall, business succession planning is a challenging process with any type of business, but it can be even more complex when a dealership is involved. Ordinarily the tax aspects of business succession are at the forefront of the discussion, but questions regarding the dealership and the dealer’s family are often the more critical topic of discussion that needs to be explored very early in the process. The general recommendation to dealers is that they get the process started early, for many of the things discussed herein are just the tip of the iceberg in business succession planning for dealerships.

SPRING/SUMMER 2016 19

GOING DIGITAL

going digital Advertising is essential for the success of every business. So what happens when the most widely used advertising methods are being surpassed with changing trends? You accommodate.

BY LAUREN IVERSON

20 IOWA AUTO DEALER

GOING DIGITAL

Traditional media like TV and print advertising are slowly taking a back seat to nontraditional digital platforms. Though it’s not time to abandon these classic techniques, it is time to be educated on alternative methods in order to sustain the next generation of vehicle buyers. Consumers are becoming much more independent and often come to the dealership knowing exactly what they want.

“Online research is going up while in-store interaction is going down,” says Vern Kalkbrenner, digital sales manager for Mudd Advertising. “In most cases nowadays, consumers know just as much about the car as the dealer does.”

This shift from the traditional advertising front-runners creates a need for consistency and authenticity now more than ever. Keep these methods in mind when deciding where to take your advertising next.

Video Advertising Closely related to TV advertising, online video ads are rapidly growing in popularity. Some of the biggest names in the video advertising industry include BrightRoll, YuMe, and RhythmOne. Played before the desired video, these ads allow you to target the consumer based on a variety of options including age, gender, location, and interests.

“Some dealers don’t realize they’re all geo-targeted,” says Kalkbrenner. “They’re targeted to the areas you want to reach the consumer.”

TrueView, a Google video advertising product, allows anyone to promote their brand on YouTube, the largest online video community. It runs on a cost-per-view model—a feature that isn’t as common with other video advertising companies.

If a viewer skips the video advertisement before 30 seconds (or the end of the ad if it’s less than 30 seconds), then the brand’s company doesn’t pay anything. Only when a viewer engages with the ad does it cost money, allowing the company to set their own daily budget.

Adding to the benefits of video advertising, the majority of these programs offer built-in analytics to track the ad’s performance. This shows you what content your target audience likes and what strategies aren’t as popular with your viewers.

“Make sure that you’re able to measure whatever you’re spending money on,” says Kalkbrenner. “Even though you might not be able to track it down to sale, you could track where you’re getting new customers.”

Not only can this method increase brand awareness, but it enters your brand into a market that your competitors are already taking advantage of.

Social Media Social media usage has drastically increased over the last five years, especially with millennials. Knowing this, involvement on social media is one of the more important aspects of an advertising plan, says

“Make sure that you’re able to measure whatever you’re spending money on. Even though you might not be able to track it down to sale, you could track where you’re getting new customers.”

Vern Kalkbrenner Kalkbrenner. Not only can it decrease marketing costs, but it also provides a platform for consumers to start a conversation about your product.

“Social media is huge,” says Kalkbrenner. “Even if you aren’t doing promotions on social media, you should still be using it and represented by it.”

It’s critical to be aware of the way your target audience utilizes social media. Think about their tendencies, interests, and what they would want to view on your brand’s social

video velocity

Digital advertising is expected to overtake television as the by the end of 2017.

biggest advertising category

(Source: New York Times)

Video advertising

is outpacing other Internet advertising segments due to the popularity of tablets and video services.

(Source: PwC Entertaining and Media Outlook Report)

top website for

YouTube is the automotive video.

(Source: Digital Dealer)

43%

of car shoppers learn about vehicles they hadn’t considered through online video ads.

(Source: Digital Dealer)

Time spent watching online videos showing test drives, features and options, and walk throughs .

doubled between 2014 and 2015 (Source: Google)

SPRING/SUMMER 2016 21

digital ads must comply with laws

Dealers are responsible for complying with all advertising regulations, regardless of whether they hired someone else to create the ad. With your reputation— and the potential for costly enforcement actions—on the line, it’s critical to verify that all ads comply with the law. Make sure to remember these essentials while developing your advertisements.

Trigger Terms

If an ad contains the amount of any payment, number of payments, or finance charges, then it must also disclose all of the following terms: 1. The amount or percentage of the down payment 2. The terms of the repayment 3. The annual percentage rate and if the rate may be increased after the sale

List Price

Dealers may not use the term “list price” or similar terms to imply that the dealer’s current selling price represents a certain savings from the list price.

Disclosures

Disclosures must be readable and understandable, and may not be in fine print or mouse type.

CAN-SPAM

If your email is primarily commercial, you must give the recipient the ability to opt-out of future emails. This means that the: 1. Opt-out link must be clearly and conspicuously displayed 2. Email must contain a functioning return email address used to opt-out of future messages 3. Opt-out email must be capable of receiving opt-out replies for at least 30 days after the transmission of the message 4. Sender can’t send unsolicited commercial email to the recipient at that address after 10 business days 5. Email must include a valid physical postal address for your business

Learn More

Advertising is too important to not get right. Visit the online legal library at IADA.com for additional information about advertising laws and consult with an attorney if you have any questions about whether your ad is compliant.

22 IOWA AUTO DEALER

GOING DIGITAL

“Not every step is about selling a car. It’s about building authenticity and establishing yourself in the community. I think we lost something when car dealerships needed bigger lots and had to move to the outskirts of town, but digital tools allow dealerships to be at the center of the community again.”

Jay Newell accounts. One thing to consider is implementing sponsored posts. Sites like Facebook and Twitter make online advertising easy with a step-by-step process that allows you to choose the who, what, and where of your ad’s target market. With a combined 1.77 billion monthly active users, according to Statista, Facebook and Twitter advertising is cost-effective and can reach views anywhere from 700 to upwards of 11,000 people per post, depending on your budget and time limit.

Sponsored posts require content that will catch the target audience’s attention, something that many dealers may struggle with creating. Amanda Hull, general sales manager for Hearst Television and its Des Moines station KCCI, mentions the limitations dealers set for themselves when they only post current inventory on their social accounts.

“When putting inventory out there, you only target the market who wants to buy a car,” says Hull. “Going about it in an educational way earns the trust and loyalty of the consumer.”

Social media humanizes a brand and makes the brand more relatable. Posting articles related to the market, replying to consumer comments, and consistency are only a few examples of ways to kick-start your brand’s online awareness.

High-Quality Content High-quality content includes blog posts and website pages that offer additional information pertaining to the needs of the consumer. Creating this informational base builds the consumer’s trust and also increases a brand’s credibility. The information a brand puts out is a large deciding factor on the future of their follower base and could drastically increase brand recognition if done correctly. It’s essential to create content that will foster relationships with the target audience.

“Not every step is about selling a car. It’s about building authenticity and establishing yourself in the community,” says Jay Newell, an Iowa State University professor and advertising expert. “I think we lost something when car dealerships needed bigger lots and had to move to the outskirts of town,

but digital tools allow dealerships to be at the center of the community again.”

High-quality content can address an endless variety of topics based on the target demographic. Some examples may include the trade-in process when buying a new vehicle, child-safety seat guidance, and how dealer-assisted financing works. To hold a customer-first mindset, it’s critical to put in the extra effort in order to grow your brand. Having high-quality content will boost traffic to your website and increase your SEO (search engine optimization) rankings on big sites like Google, Yahoo, and Bing.

“I truly believe in having the right message to the right person at the right time,” says Megan Gardner, VP of accounts at 3 Birds Marketing.

This can be accomplished by effective email targeting, paying attention to click data, and creating material that engages your target consumer. Putting out information that adds little value to your audience can cause advertising tactics to plateau. This is why it’s beneficial to watch market trends in order to be on the front end of meeting vehicle buyers’ needs.

content marketing tips Post Consistently

to build a constant follower base and a stronger search engine ranking. This proves to the reader you are committed to educating them and acknowledging their needs.

Engage Readers

by creating thought-provoking material. Writing in a conversational style will encourage readers to stay tuned-in with your content and will also help them better relate to your brand.

Write Accurately

to assure brand credibility. This includes accurate facts, sources, and grammar. If there is an excess amount of mistakes in the material you send out, the number of views received will decline.

Add Visual Appeal

to your content by including images, infographics, videos, and more. It’s also important to keep in mind fonts, color schemes, paragraph styles, etc. when considering your brand’s visual identity. With 60% of people being visual learners, creating aesthetically pleasing material is essential.

Share on Social Platforms

to increase website traffic and brand awareness.

Not only should you share all original content on your brand’s social media accounts, but you should also offer a share button for your viewers to post it on their accounts.

SPRING/SUMMER 2016 23

GOING DIGITAL

what is seo?

SEO, or search engine optimization, means boosting the number of visitors to your website by securing a spot high on the list of results returned from a search engine.

There are two elements that influence SEO: internal and external.

Internal Elements

are things you control, such as the quality of your content, using keywords, and the speed and mobility of the site.

External Elements

are controlled by your website visitors. These factors include anything from the number of shares and mentions your content receives to the user’s experience on your website.

SEO rankings are based on a variety of things.

Consider these tactics to maximize the viewer’s experience:

Use Keywords

to make your content more visible on search engines and your online presence more competitive.

Provide Internal Links

to ensure effortless website navigation.

Create Original Content

to avoid copyright violations and duplicate material.

Optimize Your Website

for mobile to ensure people using smartphones are able to see your content.

24 IOWA AUTO DEALER

Newsletters In a general sense, the automotive industry is nearly a decade behind where companies like Etsy, Amazon, and Netflix are, says Gardner. These companies are advanced enough that they’re able to predict what the consumer will buy next based off of their recent purchases, and then promote accordingly. A newsletter is a great way to target all of your current and past customers because it personalizes your brand and updates the reader on what is currently happening within the dealership, says Gardner.

“A newsletter is a really essential piece to reaching your full database,” says Gardner. “It’s the only email that should be going out to your full database because it’s appropriate for everyone.

It’s not just a sales or service method.”

The content sent out in a newsletter should contain information that can be utilized within 30 days, says Gardner. A good example is introducing new vehicle models. Dealers might find it effective to produce content about a current vehicle in order to drive sales before its newer version launches. If the recipient clicks on specific content within the newsletter, follow up with more information about what they were interested in.

This creates a personalized experience for the consumer.

“I think the more successful businesses understand to be there all the time for people at the stage they happen to be in,” says Newell. “That’s certainly enhanced by the use of digital advertising to reach everyone in the city.”

Newsletters keep your target market up-to-date on what your dealership is doing, which further enhances customer relations.

Getting Started Digital advertising is more complicated than traditional methods because of its broad opportunities and constantly changing market.

It’s easy to struggle with choosing the best platform to utilize for your brand, but that’s why education on these methods is necessary in order to keep up with the continuing development of new media.

“As much as we’d love for there to be a magic bullet, there isn’t one,” says Kalkbrenner. “Sometimes dealers don’t know how to decide which [advertising method] to use.”

Sometimes it’s easier to slowly introduce new methods over a period of time. Being a little conservative with advertising is acceptable when it’s your own name on the line, says Newell.

However, it’s important to try new things if they are realistic and truly created to serve the community.

“My overall recommendation is to understand that social media and digital media really electrifies some of the human interaction that Iowa dealers have been doing,” says Newell.

“We’re still the same people concerned about the same thing— durability, price; all these things.”

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UNDER ATTACK

under attack One of a dealership’s most valuable assets—its computer network—can also be its most vulnerable.

In the midst of a busy workday, a salesperson quickly going through emails opens a message mentioning an invoice. He scans it and then, without a second thought, clicks to open the attached file. Moments later, his computer locks up.

This nightmare scenario is one that all businesses, including dealerships, are running into far more frequently. In just a few clicks, an employee can inadvertently open the door to a kind of threat many dealerships aren’t prepared to face.

Anderson-Weber Toyota Lincoln in Dubuque was one of those dealerships.

It was a busy day in the beginning of December 2015. One of the dealership’s salespeople received an email referencing an invoice number in the subject line and with an attachment that appeared to be a .zip file. Without thinking, he doubleclicked on the attachment, opening the file. Those two quick button taps, which took less than one second, launched a virus that immediately began to run and lock up his files.

Word documents, Excel files, and PDFs were all encrypted beyond repair.

Then the virus began working its way over to a drive where the dealership kept shared documents.

“It never got into the customer files or DMS files because all of our workstations use a remote desktop link to access that,” says dealer Tim Weber. “Luckily, we were still up and running.”

This particular attack was not what most people imagine when they think of traditional computer viruses. Instead the computer was infected by a type of virus known as a crypto virus, which encrypts the victim’s files and demands a ransom payment in order to obtain the information needed to decrypt the message.

Some quick thinking led the dealership to pull the computer offline. They had heard about this type of attack from a friend who owned a dealership in a neighboring state and had been hit by the same type of attack.

For Anderson-Weber, the timing of the attack couldn’t have been much worse. The dealership’s IT provider had suffered a brain aneurysm a few weeks before and was not yet back to work. So Weber contacted his friend who had gone through the same attack. That friend put Weber in touch

26 IOWA AUTO DEALER

with the IT provider who had helped the friend’s dealership get through its own attack, Valley Computer Solutions in Winona, Minnesota.

“Unfortunately, we’ve seen our fair share [of these attacks] over the years,” says Mark Krinke, president of Valley Computer Solutions. “It’s been going on for years, but it keeps getting better.”

And by better, Krinke means better for the attackers, not better for the victims. “What has changed from when we started dealing with it is it’s become an actual business model where a company, dealerships, whatever, gets infected. The infection locks all your data, it encrypts it with military grade encryption. You can’t get it back unless you have a backup—a really good backup—or you pay the ransom and pray they give you the keys back to your data.”

One particularly troubling aspect of crypto virus attacks is that they’re impossible to decrypt. While encryptions from years ago have been broken and the academic community continues to study these types of attacks, it can take years for someone to decrypt the data. And that is time that businesses don’t have.

“What’s so interesting about this type of infection is that all of the great computer minds in the world agree there’s no way to stop this type of infection,” says Krinke. There are “all kinds of ways you can mitigate it, but there’s nothing you can put in that will protect against it 100%.”

Anderson-Weber had the best-case scenario for a victim of a crypto virus attack. They had made the decision to do nightly backups of their network, and they had caught the virus before it was backed up. “If that had happened on a Friday afternoon, it would have gone through and the backup would have run and corrupted files in the backup,” says Weber. “We got lucky.”

Weber’s friend who had told him about the virus hadn’t been as lucky. Without a backup, he had to pay the ransom before he could access his data again. But that was still a better

UNDER ATTACK

“It’s not some kid in the basement doing this for fun, it’s the new organized crime.”

Mark Krinke scenario than many businesses face.

As crypto viruses become more common, new groups of attackers are entering the game. “What has changed now is there’s a bunch of knockoffs, and they’re not as willing to give you the keys after you’ve paid the ransom,” Krinke says. He cites a mom and pop service center in Minnesota that became infected by a crypto virus. The shop didn’t have much for protection in terms of firewalls, and they certainly didn’t have a backup. So they paid the ransom—and received nothing in return.

“It’s a real threat,” Krinke says. “It’s not some kid in the basement doing this for fun, it’s the new organized crime.”

Krinke was able to get Anderson-Weber up and running within about six hours. His team was able to remotely access the dealership’s servers and restore files based on the previous night’s backup, even though they weren’t his normal IT provider. “Tim acting quickly was really the best thing he could do,” Krinke says. “He had a crappy day, but he didn’t have several days’ loss of business.”

Lessons Learned The silver lining of the attack at Anderson-Weber is that the dealership learned some important security lessons while surviving a situation that could have been much worse.

“Our main thing that we implemented after is, if you don’t recognize an email, don’t open it. If you’re not expecting something from somebody, don’t just open random emails,” says Weber. “If someone is trying to send you an invoice and they don’t hear from you, they’re going to call you.”

The dealership has also been proactive with examining computer network access, going to each workstation and making sure only the people who actually need access to shared network drives have access. Every employee who has email has been shown a photo of the initial message that launched the attack and the dealership plans to share an Internet security training video with employees.

JD Linkenhoker from Carrier Access, an Iowa-based technology solutions company, recommends that employees know their job area and don’t even consider opening attachments that aren’t part of their responsibilities.

“People, know your lane,” says Linkenhoker. “If you don’t have business opening said attachment, if you’re not expecting it, or it’s not in your lane, don’t open it. If you think it’s legit, send it to someone who it is in their lane. Someone who deals with invoices every day is going to know without a doubt if that invoice is expected.”

According to Linkenhoker, résumés have been causing

problems recently. “Résumés have been a huge thing lately with people sending fake résumés that, when opened, are laden with malware,” he says. “Are you in HR or a manager of a department? If not, you don’t have business opening said attachment.”

The tricky part with email attacks is that the attackers are getting smarter. In a separate incident at Anderson-Weber, an employee received an email from a Yahoo address created with the name of a dealership leader. When emails come from what appears to be a legitimate sender, people are more likely to click on them—especially when they’re busy.

“It’s so much what you would refer to as social engineering,” says Krinke. “They craft the email in a way that people just can’t help clicking on it.”

That social engineering in emails plays into a type of email known as phishing, which presents significant challenges for businesses.

“The overwhelming majority of IT security experts agree that the biggest hole in network security is employees, through phishing,” says Phil Troy, president of ComplyNet, a company that helps dealerships comply with state and federal regulations. “The results of a phishing campaign are just stunning. They say if you can address phishing, you’ve eliminated 70% of the risk.”

by the numbers

165%

The rate at which new ransomware grew in the first quarter of 2015 (Source: McAfee)

$8,699.48 The average cost for a small business hit by a cyberattack

(Source: National Small Business Association)

79% of small business owners don’t have a cyber attack response plan in place

(Source: Nationwide)

63% of businesses admit having been victims of at least one attack, including viruses, phishing, Trojans, hacking, data breaches, and issues due to unpatched software

(Source: Nationwide)

70%

of data breach attacks exploit vulnerabilities that can be fixed with patches (Source: Verizon)

60% of attacks compromise businesses within minutes.

(Source: Verizon)

SPRING/SUMMER 2016 27

UNDER ATTACK

The key to addressing phishing is education, Troy says, adding that “You can’t imagine the dumb things people do. Someone gets an email that looks like it comes from a [website], they click on the link. Look at the cute squirrel? They click on the link. Once you click on the link, bad things can happen.”

ComplyNet helps dealerships address network security concerns, and one way they do that is by phishing dealership employees. With the dealer or IT department’s permission, ComplyNet will send phony phishing emails throughout the year and offer training to employees based on the results. After the training, they send the phishing emails again so they can see who needs additional training and what devices they were using when they clicked the link. In ComplyNet’s initial phishing campaigns before the training, the emails have earned click rates of 15-27%. “A dealer would kill for those kind of results on an email campaign, and phishers get those just by sending them out because people don’t think before they click the link,” Troy says.

The reality is that everyone can be fooled. Even tech savvy employees who know better can make a mistake.

“It is going to happen,” Linkenhoker says. “The training is less about identifying specific threats and more just about awareness of where things are in the industry. Carelessness and being unaware is what lead to data breaches.”

Because anyone can make a mistake, it’s important not to instill a culture of fear around technology. Dealerships need employees to be willing to step up and admit they clicked on something they shouldn’t have—or the problem can become much, much worse.

“If people are aware and they’re willing to say, ‘I made a mistake,’ get that system disconnected. You’ve neutered the threat right there,” says Linkenhoker. “If it’s people going ‘oops,’ and they’re so worried they’re going to get in a lot of trouble they do nothing paralyzed by the fear of what could potentially be

“The overwhelming majority of IT security experts agree that the biggest hole in network security is employees, through phishing.”

Phil Troy a problem rather than acting to mitigate it immediately—that’s when you run the greatest risk.”

An example of that is one of Carrier Access’ financial industry clients, where an employee knew they did something wrong but didn’t tell anyone until files they were working on started to have problems. The Carrier Access team, once alerted to the problem, was able to trace the infection back to the initial event that caused it, and found that it had happened in the middle of the previous day. In the meantime, the virus had encrypted 20% of the company’s shared drive and they had to do a large-scale restoration of a day-and-half’s worth of business data.

“That was all because instead of saying something, they were worried they were going to get in trouble,” Linkenhoker says.

“The problem they caused by not saying something was much more trouble.”

As greater numbers of digital natives, or people who grew up with computer technology, enter the workplace, a certain level of computer savvy should follow. That doesn’t mean that training and awareness aren’t as important with younger workers—and dealerships certainly shouldn’t assume that just because someone is of a certain age that they are more—or less— comfortable around technology.

“From a training perspective, you can’t train awareness without instilling a sense of fear, but you don’t really want to get people afraid of using technology,” Linkenhoker says. Technology

foil phishing

Don’t fall prey to a phishing scam. Follow these tips from Intel Security to help protect yourself and your business.

• Keep security software and browsers up to date.

• Hover over links to make sure the embedded link will take you where it claims it will.

• Watch for obvious red flags, like misspelled words, incorrect URLs, unprofessional visuals, and unrecognized senders.

• Don’t click links in emails. Instead, go directly to the company’s website.

• If an email is from an unknown or suspicious sender, don’t click on any links.

• Don’t forward a suspicious email on to coworkers, friends, or family.

• Pay attention to alerts. Don’t download content that your browser or security software notifies you may be malicious.

• Be careful with your personal information. Don’t give away your credit card number, home address, or Social Security number to any website or email address that may be suspicious.

28 IOWA AUTO DEALER

UNDER ATTACK

crack the code When it comes to technology, it can seem like people are speaking a different language. Use this dictionary to decode the lingo. encryption:\ transformation of plain text data into a form concealing the data’s original meaning decryption:\ the process of converting data back into its plain text form firewall:\ hardware or software that protects a computer network by blocking unauthorized access malware:\ software that is intended to damage or disable computers and networks phishing:\ fraudulent emails posing as a reputable, legitimate sender that attempt to gain information from the recipient

has shifted from a necessary expense to a business amplifier that boosts workers’ productivity. Employees need to be willing to use technology and feel comfortable with it, but also feel comfortable admitting they made a mistake without fearing the repercussions.

Protecting Your Network Dealerships can—and should—take several steps to secure their networks. Having a reliable back-up system is a must.

“One thing companies could really do to mitigate this is, when we look at it from the IT side, really have a backup system that’s tested, that’s audited, that’s truly a disaster recovery system,” says Krinke of Valley Computer Solutions. “It costs money, and a lot of places, they run a little tight and don’t always want to invest in the IT side because you’re not just getting a shiny new computer. You’re paying for insurance. But the day you need it, it’s worth its weight in gold.”

Linkenhoker also stresses the importance of backups.

“What you really need are reliable backup mechanisms,” Linkenhoker says. “There are some threats out there where the only protection is being able to recover from them . . . Most people do not view disaster recovery and back up as a security precaution, but in a world where security concepts such as encryption are being used to attack and lock business data, and for the ransomware concept, it’s evolved into a security directive.”

Backups are effective for recovering from an attack, but there

ransomware:\ malware that encrypts files until a ransom is paid trojan horse:\ a malicious program that breaches computer security while appearing to perform a harmless function unpatched software:\ software that is not current with the latest updates designed to fix bugs virus:\ a piece of code that copies itself and performs malicious actions worm:\ a self-replicating virus

are other security components that are essential for protecting your network: anti-virus software, anti-spam solutions, and a firewall.

After decades of malware infecting computers, most people are familiar with the concept of anti-virus software and know the risks they are taking if they choose not to use it. Anti-spam solutions prevent employees from receiving email that is clearly spam, but some go beyond the basics to allow dealerships to protect employees from themselves.

“Email, you need to protect two ways. You need to protect in and out,” says Linkenhoker. A modern anti-spam filter will allow you to cut down on spam, including phishing attacks, and will allow you to filter outbound emails based on certain metrics.

“These metrics would include things such as if it appears to be an account number, a Social Security number, a credit card number.

Not only does it not go out, but it then kicks back an alert to someone in an authoritative position to then take action.”

A firewall sits at the edge of a computer network and protects the network from unauthorized access. A next generation firewall takes that a step further and combines the traditional firewall with filtering capabilities that allow businesses to limit traffic on an application-by-application basis.

For example, a dealership has 10 MB of bandwidth. The dealership knows that some social networking sites are necessary for business purposes. Employees watch training videos on

SPRING/SUMMER 2016 29

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are you protected?

Not sure if your computer network is secure? Set up a meeting with your IT provider or department and work through this list of questions.

• Do we have a reliable, tested back-up method?

• What is our disaster recovery process?

• What level of protection does our firewall provide?

• Do we have anti-virus throughout our environment?

• How frequently are we installing patches?

• How secure is our customer wireless?

• What resources are located on our internal network?

• What resources are hosted off site?

• What is the plan in case of a breach?

YouTube or are posting marketing updates on Facebook. But the dealership doesn’t want the entire bandwidth used up by employees checking their newsfeeds or watching videos of cute puppies. The next generation firewall allows the dealership to limit the amount of bandwidth allocated to those sites, making the rest of the network run more efficiently.

The next generation firewall can also help protect your business from customers who would take advantage of your resources. Many dealerships provide free wi-fi to customers in waiting areas. The next generation firewall allows the dealership to segment the guest wi-fi completely away from the business network.

“There’s no way someone could ever use this wi-fi to then access any resources inside your network,” says Linkenhoker.

“It’s a full, separate network. Sure, it plugs into the same firewall, but that firewall knows this goes nowhere but out and back.”

You can also do global filtering on the wi-fi network to prevent customers from using your wireless connection to access networks such as BitTorrent, which allows users to pirate movies, music, software, and other files.

“You do not want to be the people getting the emails and alerts from Mediacom saying we’re going to shut off your Internet because you’re illegally pirating,” Linkenhoker says.

Get Help Technology today is too complex and the risks are too great to leave network security up to chance. Dealerships need help, whether its through hiring dedicated IT professionals or working with a third-party vendor.

“Look at your IT providers as they’re there to help you mitigate risk,” says Krinke. “Yeah, some of the policies can be kind of a pain in the butt, like locking down computers so people can’t just install whatever they want. . . Cutting down exposure is really key. Employees don’t like that, but we look at it like we’re working for the dealer and protecting their interests.”

The fact is that viruses and other forms of malware are

30 IOWA AUTO DEALER

nothing new—but the stakes are much higher than they were years ago.

“There’s been crap going around the Internet for the past 15 years. Today’s no different, but it does more damage, is faster, and has more financial impact than ever before,” says Krinke.

Whether you have an employee handling IT or contract with an outside vendor, you need someone to turn to when questions or problems arise. And you need to feel comfortable asking for help.

Dealerships should also make sure employees know what to do if something suspicious or concerning appears on their computers.

“When in doubt, turn it off, pull the plug. That could save data,” Krinke says. “Even if they’re suspicious they should just yank the cord out of the computer that is the problem. Better to do that than have a server that is half encrypted.”

Disconnecting the computer from the network will keep the problem from spreading. Once the computer is offline, IT personnel can take action to see whether other parts of the network have been infected.

“You want to stop it as soon as possible and disconnect it from the network,” Linkenhoker says. “Amputate said device.”

Legal Responsibilities Because dealers collect nonpublic information about customers, it’s vital that the data and the networks that support the business are protected. The costs of a breach—especially a breach that compromises private customer information, like Social Security numbers, credit scores, and credit card numbers—can be devastating to a business, and that’s before you factor in the loss of reputation and trust among consumers once news of the breach becomes public.

“Every state has regulations as to what a vendor, not just a dealer but anybody, must do in the event that there’s a data breech,” says ComplyNet’s Troy. “They need a plan, they need procedures.”

UNDER ATTACK

Troy advises dealers to write out a plan of what to do in case of a breach and communicate that plan with employees.

Companies such as ComplyNet and LMC Insurance & Risk Management can help dealerships purchase insurance that will help in the case of such a breach, as well.

In addition to legal requirements regarding non-public data, dealers accepting credit cards as payment also must comply with Payment Card Industry (PCI) standards, which concern the protection of payment cardholder data. The penalties for non-compliance, which can include terminating a company’s ability to accept payment cards, can cripple a business.

Another area that is particularly important for dealers to protect is their proprietary data, including what is contained in their dealer management system (DMS). Many DMS provide built-in security to help protect dealer data. For example, Dealertrack stores all dealership data in a remote server.

“Security breaches are more likely to happen within the dealership’s firewall, so Dealertrack stores the data on a remote cloud server because it is a more secure environment than a server box in the dealership,” according to security documents provided by Dealertrack. “Most security breaches that happen in a dealership are associated with stolen back-up tapes, intruder hacking systems, and dealership accounting systems being accessed through the dealership firewall.” Dealertrack also uses a data loss prevention tool to monitor and prevent data from being transmitted outside the dealership.

Dealers need to make sure that all vendors who have access to dealer data are accessing it appropriately and not violating privacy policies.

NADA created the “Service Provider Dealer Data Access Addendum” in 2013 in an effort to help dealers comply with federal law.

“The basic problem is the inherent conflict between, on the one hand, the need to provide access to manufacturers, vendors, and other third parties who legitimately require access to portions of the Dealer Data so that they can provide a service to the dealer, and, on the other hand, the dealer’s regulatory duties regarding the Dealer Data, as well as their legitimate business interests in the Dealer Data,” NADA Legal and Regulatory Affairs shared in a 2013 memo.

The NADA addendum can be accessed at NADA.org/dealerdata/. IADA encourages all dealerships to consult with their attorney and consider having third-party vendors with access to dealership data sign the addendum if they haven’t already.

Be Prepared If your dealership is one of the lucky ones who hasn’t yet encountered a serious virus, attack, or data breach, the time to prepare is now because inevitably it will happen to you.

Talk with your IT provider to make sure your network environment security matches your business needs. Visit with employees to see if there are any potential security or network problems that they see—or policies that they’re unsure about. Figure out what you don’t know about your network, and then ask the questions.

“If you don’t know, raise your hand. There are no stupid questions when it comes to security,” says Linkenhoker. “There should be no sense of admonishment or any embarrassment ever given to someone who doesn’t know something and is willing to ask, even if it seems ridiculous. It’s better that they asked than that moment when the ridiculous thing they went along with [is] a detriment to the company.”

Resources Carrier Access Inc.

Carrier Access offers tech support, network security, and disaster recovery solutions in addition to a comprehensive communications solution, including local and long-distance phone, Internet, and data services, which is an IADAendorsed product.

For More Information: Jeremy Baumann | 515.987.9226 jbaumann@carrieraccessinc.com carrieraccessinc.com

ComplyNet

ComplyNet helps dealerships manage risks and comply with automotive laws and regulations, including PCI compliance and computer safety.

For More Information: Phil Troy | 847.915.6387 phil.troy@complynet.com complynet.com

LMC Insurance & Risk Management

LMC helps clients analyze their exposure for cyber and data risk, establishes company-wide security policies, and puts together an insurance product that meets their needs.

For More Information: Brian Hughes | 515.237.0102 brian.hughes@lmcins.com lmcins.com

Valley Computer Solutions Valley Computer Solutions is a Minnesota-based IT company that provides managed services and IT consulting.

For More Information: Mark Krinke | 507.858.4371 info@valleycomputersolutions.com valleycomputersolutions.com

SPRING/SUMMER 2016 31

ready to serve Auto dealers are known for giving back to their communities. For some, that means giving of their time and talents by holding public office.

It’s no secret that auto dealers give back to the communities that support them. The generous support of dealerships has provided communities with countless scoreboards, Little League uniforms, and CPR training units.

But dealers—and dealership employees—are also generous with their time. In 2013, more than 63% of dealers said they organize staff volunteerism in their communities, according to an Ally Financial and NADA study. Beyond helping out with blood drives, neighborhood clean-ups, or food banks, some go a step further and hold public office.

By trade, they are dealers, general managers, controllers, and sales managers. But they wear a second hat, serving their communities as mayors, commissioners, trustees, and supervisors.

“I’m a firm believer that individuals should give back by being involved with nonprofits and by holding elected offices,” says Joel Thys, dealer principal at Thys Auto Group, who is a trustee at Kirkwood Community College. “In the materialistic world we live we tend to base success by a person’s possessions. I’ll be the first to admit I like to have nice things, but being involved in the community makes it that much more sweet.”

The consensus among many dealership employees holding public office is that doing so makes you more invested in your community and demonstrates that investment to community members.

“Being a businessman here in town, running for public office, [shows] you believe in the community,” says longtime Whittemore mayor Dan Elbert, dealer principal at Elbert Chevrolet. “He thinks enough to run for mayor, he must believe in the future of the town.”

32 IOWA AUTO DEALER

Of course, there are challenges for businesspeople who take on extra civic duties. Elbert notes one challenge he faces is “walking a fine line between being a good businessman and doing what’s right for the city.”

Kris Kramer, dealer principal of K & W Motors, serves on the Iowa Racing & Gaming Commission. She recommends people find a way to donate their time to something about which they are passionate. “It opens your eyes up to other things and to other problems you might not see, or you might not know that there was a need,” Kramer says.

While holding public office is not without it’s challenges, serving at the local level can show democracy at its finest.

“Being a council person for 13 years and then becoming the mayor, I don’t think we’ve ever had somebody that’s pouted,” Elbert says. “Sometimes we may have an agenda item and we don’t completely agree, but we move to the next agenda item and it’s back to teamwork.”

Serving in a public office may take someone away from the dealership from time to time, but they also learn important lessons that they bring back to work with them.

“The most important lesson I’ve learned as a trustee is that you must be very objective in your decision making,” Thys says.

“I think that best overall outcome will be accomplished if you can set aside your own personal perspectives and make decisions that will create the greatest good.”

There are countless dealership employees across Iowa who give of themselves by serving their communities in a variety of ways. The six individuals on the following pages are just a sample of the civic spirit that permeates the company culture in many dealerships across the state.

READY TO SERVE

Dan Elbert

Mayor of Whittemore Dealer, Elbert Chevrolet

Dan Elbert didn’t plan on becoming mayor of Whittemore in 1993. But when the town’s mayor passed away unexpectedly, City Councilman Elbert found himself appointed to fill the vacancy.

Twenty-three years later, he still holds that office.

“Here’s the one thing I noticed early on: If someone comes in at the front door saying ‘We need to see the mayor,’ I know I’m not going to sell them anything,” Elbert says.

Just like the dealership, being mayor of Whittemore is a bit of a family business for Elbert. His grandfather and uncle were both mayors of Whittemore. That spirit of giving back to their community is an important part of their legacy and an important part of the town’s DNA. “We’re awful proud of our town,” Elbert says. “We’ve got a lot of good things going for us.”

That civic pride and involvement can complicate things for the town’s leaders, however.

“It gets a little tough being in a small, small community,” Elbert says. “You’re going to have to make some decisions that aren’t going to sit well with the best of them. That’s probably the toughest part in the really small community, making some decisions even when your friends are involved. [You] hope for the best, hope everyone understands.”

Kris Kramer

Iowa Racing & Gaming Commissioner Dealer, K & W Motors

When her children were younger, Kris Kramer didn’t have as much time to give as she would have liked. “I didn’t have much of a chance to donate my time, not to an extent like this,” Kramer says, “but I think everybody should donate their time if they can.”

Kramer was appointed to the Iowa Racing & Gaming Commission

by Governor Terry Branstad in 2012 and was reappointed in 2015.

“It’s been really interesting,” Kramer says about her experience serving on the statewide commission. “It’s been fun and it’s been challenging.”

One asset from her years at the dealership that has served her well on the commission is her ability to read people.

“Working at the dealership, you do meet a lot of people, different varieties of people, and I think that has helped me,” Kramer says. “You know, you kind of have a sixth sense about people after being around people so much. You learn what other people are like and I think that’s been an advantage working on the commission.”

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READY TO SERVE

Joel Thys

Kirkwood Community College Trustee Dealer, Thys Auto Group

A Kirkwood Community College graduate, Joel Thys makes it a priority to give back to his alma mater. In 2006, he began serving on the college’s advisory board and he was elected to the Board of Trustees in 2013.

Because of his experience in the auto industry, Thys views the college as a business. “Part of Kirkwood’s mission is to provide accessible, quality education and training,” he says. “This is only possible if behind the scenes there is a fiscally responsible budget.”

During his time as a trustee, Thys has developed a deeper appreciation for all Iowa community colleges.

“Being a trustee has affected my role as a dealer in that I now understand how the community colleges of Iowa can be a tremendous asset to all businesses, not only helping provide quality employees but also providing resources to those businesses to make them more viable.”

Mark Beardmore

Carroll County Supervisor General Manager, Wittrock Motor Co.

Mark Beardmore has spent 36 years in the auto industry and the past seven in public service.

“I always had a keen interest in government, especially locally, and was active in several issues,” Beardmore says. When several people suggested he run for the Carroll County Board of Supervisors in 2009, he decided to take the plunge. Now in his second term as a supervisor, he continues to be committed to his work both on the board and at the dealership.

“It’s been very challenging at times balancing the responsibilities both positions demand of me, and especially when taking on more duties at the store,” Beardmore says. “It’s really hard to be two places at once! I am most fortunate to have a very understanding dealer/ owner who supports me.”

The most important lesson he’s learned in his two terms is one that carries through to other aspects of life as well. “Be the same guy you said you are when the voters elected you. Easy said, not always easy done.”

34 IOWA AUTO DEALER

READY TO SERVE

Lee McFee

Poweshiek County Extension Council Member (former) Controller, Wes Finch Auto Plaza

Lee McFee was a natural fit for serving on the Poweshiek County Extension Council. “I grew up on a farm and my father worked for Extension for several years, so I was familiar with Extension and its mission and efforts to provide education at the local level,” McFee says.

A friend suggested he run for a seat on the council. He was elected and served two terms before declining to run again in 2014. During his tenure in office, he found that his experience at the dealership was an asset to the council.

“Communities need the insights and professional judgment that come from working daily in a for-profit business to help balance the ‘momentum’ that can sometimes characterize government agencies,” McFee says.

Bev Holzmueller

Pocahontas Community Hospital Trustee (former) Sales Manager, Pocahontas Ford Lincoln

Serving on the Pocahontas Community Hospital Board of Trustees gave Bev Holzmueller a new perspective on her community.

“I was around many people that I wouldn’t have ordinarily talked to or even been aware of what their roles and contributions were in the community,” Holzmueller says.

Her years of experience in the dealership, especially regarding finances, allowed her to bring expertise to the board.

“Sometimes there is a real lack of financial expertise in a small community and because of the financial nature of our business, we have much to offer,” Holzmueller says. “Successful communities all have one thing in common: Leaders with vision and commitment.”

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THE CLOSE

PHOTO COURTESY OF TEAM PRISUM

full speed ahead Iowa State students design and build award-winning solar-powered vehicles.

BY LAUREN IVERSON

After taking home the gold at the 2015 Formula Sun Grand Prix, Iowa State University’s solar car team is on the fast track to an international title.

Team PrISUm is a student-led organization that thrives on advanced technology and innovation, designing and building a car from the ground up and racing it across the country.

“Not only is it a chance to push the development of renewable transportation, but it’s also a hands-on experience for all of our members,” says business director Ryan Perera.

It takes at least two years and around $250,000 to design and build the solar vehicle used in the team’s competitions. Their most recent car, the Phaëton, can drive up to 150 miles on a sunny day. In order to complete this vehicle, which is registered with the Department of Transportation so it can legally drive on Iowa’s roads, it takes time and dedication.

“Ford and GM design entire vehicles on a time frame of roughly five years,” says Matt Goode, Team PrISUm project director. “We start with a blank sheet of paper and end with a completed, 100% street-legal vehicle in two years.”

Team PrISUm’s newest project is building a cruiser class vehicle for the 2017 World Solar Challenge, a race that runs 3,022 kilometers (1,878 miles) from Darwin to Adelaide in Australia. As dictated by regulations, a cruiser class car must run completely off the sun and hold a minimum of two people.

There is also a practicality judging event that evaluates the serviceability of the vehicle, such as seat comfort, how doors

36 IOWA AUTO DEALER

open, and if the car contains cup holders. Though this is the first cruiser class vehicle they have ever designed, the team is optimistic they can achieve a perfectly manufactured solar vehicle, says Goode.

“For most of the members on the team, this is our passion,” says Goode. “We spend all our free time designing and building these cars because we love automobiles, futuristic technology, and proving that clean and renewable transportation is very possible.”

Team members can average up to 50 hours per week in their on-campus shop. Multiple projects go on at once, including vehicle design, body sub-assembly, mold assembly, paint preparations, metal fabrication, and R & D testing.

“Most of the teams we compete against take an entire year off of their schooling to design and build these vehicles,” says Goode. “They don’t have to worry about tests, homework, or anything like that. Just solar car, 24 hours a day, seven days a week for one year.”

Team PrISUm will spend roughly $200,000 on race expenses and shipping the car to and from Australia. They rely heavily on their sponsors for car parts and fundraising donations. Sponsors include George White Chevrolet, which occasionally allows the team to use their paint booth, and BMW of Des Moines, which is lending them an i3 this spring for testing.

To learn more, visit prisum.iastate.edu.

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