Up to Speed Q3 - 2023

OFFICIAL PUBLICATION

LADA NAMES TROY DUHON 2023 LOUISIANA DEALER OF THE YEAR

WHY IS SUCCESSION PLANNING CRITICAL?

2023 CONVENTION RECAP AND HIGHLIGHT REEL

LADA GOLF TOURNAMENT: OCTOBER 3 AT UCLUB

LDS F&I Income Development Team

9016 Bluebonnet Boulevard, Baton Rouge, LA 70810 Phone (225) 769-9923 | Toll Free (800) 272-8000 www.theLDSgroup.com

60+ Team Members all with 1 Common Goal:

GREAT CUSTOMER SATISFACTION

2

www.lada.org

CONTENTS

7526 PICARDY AVENUE BATON ROUGE, LA 70808 PHONE: (225) 769-5500 | FAX (225) 769-2085 EMAIL: LADA@LADA.ORG WWW.LADA.ORG

EXECUTIVE COMMITTEE Chairwoman, Kristie M. Hebert ARCENEAUX FORD District 5, New Iberia

04

PRESIDENT’S MESSAGE

14

Chairman-Elect, Patton Fritze RED RIVER MOTOR COMPANY District 7, Bossier City Treasurer, Rand Alford ALFORD MOTORS, INC. District 15, Leesville Immediate Past Chairman, Marshall Harper HARPER MOTORS District 6, Minden Robert A. Grace SOUTHPOINT VOLKSWAGEN District 11-12, Baton Rouge John R. Young JOHN R. YOUNG BUICK CHEVROLET GMC District 13, Eunice

COVER STORY: TROY DUHON NAMED LOUISIANA DEALER OF THE YEAR

Mark A. Hebert, Sr. NADA State Director HEBERT’S TOWN & COUNTRY CHRYSLER DODGE JEEP

16

LADA INTRODUCES FIRST EVER CHAIRWOMAN KRISTIE HEBERT, ARCENEAUX FORD

DIRECTORS L. Keith Hanks LAKESIDE TOYOTA District 1-3, Metairie Lee Carney GEAUX CHEVROLET District 1-3, LaPlace Brett Barker TERROBONNE FORD District 4, Houma Ryan LeBlanc Sterling Automotive Group District 5, Lafayette Hunter White WHITE FORD LINCOLN District 8, Winnsboro Brett K. Oubre LAKESIDE FORD District 9, Ferriday Allen O. Krake SUPREME AUTOMOTIVE GROUP District 10, Slidell

10

WHY IS SUCCESSION PLANNING CRITICAL?

David L. Fabre ACURA OF BATON ROUGE District 11-12, Baton Rouge Corey Tarver LAKE CHARLES TOYOTA District 14, Lake Charles

18

Clinton E. Hixson HIXSON AUTOPLEX OF ALEXANDRIA District 16, Alexandria Scott Oliphant KENWORTH OF LOUISIANA District 17, Heavy Truck

2023 CONVENTION HIGHLIGHT REEL www.lada.org

3

PRESIDENT’S MESSAGE | WILL GREEN The first half of 2023 has been quite eventful.

economy.

Following our LADA statewide grassroots meetings where we were able to connect with dealers across

This

the state, we jumped right into the 2023 Louisiana

NADA shows that Louisiana’s

Legislative Fiscal session. Despite starting with a lot

automobile dealers have proven

of promise and several legislative measures which

to be a driving force in our economy. Our industry

would have moved our state away from the archaic

provides stable employment opportunities, supports

and complicated tax structure we are currently in,

local economies and contributes significantly to tax

not much was done. Instead, the House and Senate

revenues, supporting the growth and prosperity of

fought over what to do with the historic windfall of

Louisiana.

report

sourced

by

money from federal aid and better than expected sales tax revenue. Following a chaotic last-minute

The initial victory in our ongoing legal dispute

vote (literally), where several legislators seemed

attacking our franchise model and presented

confused and frustrated with their options, a

figures confirm our long-standing claim: Louisiana’s

budget was passed that will fund many coastal and

automobile dealers contribute significant worth to

infrastructure projects but, some argue, ignored

their communities. However, beyond the financial

teacher pay and debt.

implications

lie

the

individuals

who

dedicate

themselves to training and guiding numerous Despite the budget turmoil, LADA was able to keep

employees at their workplaces, while also selflessly

several of the harmful tax measures we opposed from

devoting their time, skills, and resources to support

passing. As predicted, LADA played a lot of defense in

various noble causes close to their hearts.

this condensed, tax and budget session, and we were successful in protecting many dealer and consumer

This year also saw LADA continue to foster our

tax relief measures. We now head into an election

relationship with the NADA Foundation, the National

year where we will work with our membership to

Urban League, and the Urban League of Louisiana in

formulate comprehensive legislative priorities as we

our innovative pilot program currently underway in

work to elect pro-dealer candidates. We will ensure

New Orleans and Baton Rouge designed to attract

these candidates will be ready to defend a franchise

and train the next generation of diverse automotive

system we know protects consumers, competition,

service technicians.

the local economy and jobs.

apprenticeship program, promising students are

Through the 18-month paid

provided with a four-week training course that Aiding in those aforementioned efforts to reinforce

covers professional skills, financial literacy and an

the undeniable value of Louisiana’s new car dealers,

overview of the automotive industry. From there,

LADA released our latest economic impact report,

students attend eight weeks of training classes

which shows Louisiana’s new car dealers generated

certified by the National Association of Automotive

$16.5 billion in total sales, producing $733 million in

Service Excellence (ASE) at Baton Rouge and Delgado

sales tax revenue for the state. With these revenues,

Community Colleges and shadow technicians already

Louisiana’s 335 new car and heavy truck dealerships

employed within dealerships.

supported 36,600 total direct and indirect jobs in 2022, making a significant contribution to the state’s

4

www.lada.org

While this model program is being piloted in Louisiana,

the hope is that it can be replicated nationwide and

Our staff is now shifting gears to relocating our office

create a solution to workforce issues in our industry.

to the heart of downtown Baton Rouge, where we look forward to continuing the growth of our association

Lastly, I would be remiss not to touch on the

in the middle of the legislative action. We are also

overwhelming success of our 2023 Annual LADA

full steam ahead in planning for our Annual LADA

Convention we held at the Hilton Sandestin in Florida

Golf Tournament. More details will be sent out in the

in June. With a near record-breaking crowd of just

coming weeks, but please save the date for October

under 400 people in attendance, the convention

3. We will have over $15,000 in prizes and are thrilled

again provided the perfect setting for our dealers

to reintroduce our on-course vendors who brought

and associate members to come together and forge

an enjoyable level of interaction, food, and libations

meaningful connections while hearing from our

to our golfers last year.

incredible speakers. The enthusiastic participation and

engagement

from

attendees

made

this

convention a truly memorable and impactful event.

As always, on behalf the LADA staff and Board of Directors, thank you for your membership with LADA and please do not hesitate to reach out with any questions, comments or concerns.

Get care from anywhere!

Medical and behavioral health visits available!

MEDICAL With BlueCare, you can have 24/7 online doctor visits • Effective for non-emergency health issues like sinus infections, cold, cough, bladder infections, pink eye and more • Less expensive than ER or urgent care • Available on any device with internet and a camera BEHAVIORAL HEALTH You can also schedule BlueCare online appointments with psychology or psychiatry providers.

SIGN UP AND TRY BLUECARE TODAY!

www.BlueCareLA.com 01MK7324 04/20

Powered by American Well. American Well is a vendor that provides the BlueCare telehealth platform for Blue Cross and Blue Shield of Louisiana and its subsidiaries.

Blue Cross and Blue Shield of Louisiana is an independent licensee of the Blue Cross and Blue Shield Association.

www.lada.org

5

LADA CHAIRWOMAN ADDRESS

KRISTIE M. HEBERT 2023-24 CHAIRWOMAN I am honored to serve as the Chair for LADA for the

state senators and legislators for the future of our

2023-24 session and humbled to be the first female

franchises.

Chair for Louisiana Auto Dealers Association. The gentlemen that have graced this board, my own

I look forward to working with the LADA staff,

father included, with their experience, knowledge,

board, and members this coming year. I encourage

time, and talents have built this Association to what

all our dealers to support and get involved with

we see today. It is an honor to continue that legacy.

the association by participating in our grassroots meetings, the annual golf tournament, LADA

As I sit here, I am reflecting on the LADA Convention

Convention and our newly formed Dealer Advocacy

that just wrapped up. It was a momentous week

Fund. You will not regret it. If there is anything that I

filled with wonderful guest speakers and informative

can do for you, do not hesitate to reach out to me at

content that we have all come to expect. It was great

kristie@arceneauxford.com. Thank you for allowing

to see all future generations enjoying the venue and

me to serve and I look forward to a successful year.

activities together. The convention’s success was due to the nearly 400 attendees and the dedication of the LADA Staff. Thank you to Katherine, Krystal, and Will for all that you do. I hope you all Save the Date for the 2024 LADA Convention to be held at The Greenbriar June 19-23rd. It is sure to be fantastic!

As Chair for LADA, I will work alongside the board of Directors to defend and protect our franchises.

This past year our franchise model was challenged.

It is a reminder that our industry is constantly changing and with it we must change. The next generation of auto dealers is here and with that the next generation of LADA members and directors.

This year LADA will embark on a year of change as an association. I am proud to lead LADA’s transition into a new office space in downtown Baton Rouge.

This new space will not only represent the next generation of auto dealers with a modern, high tech and welcoming environment, but it will give LADA a dominant presence near the capital. This will be vital for us as we move forward and lean on our

6

www.lada.org

2023-24 BOARD OF DIRECTORS EXECUTIVE COMMITTEE

Kristie Hebert Arceneaux Ford Chairwoman

Patton Fritze Red River Chevrolet Chair-Elect / District 7

John R. Young John R. Young Buick Chevrolet GMC District 13

Rand Alford Alford Motors, Inc. Treasurer

Robert A. Grace Southpoint Volkswagen At-Large / District 11-12

Marshall Harper Harper Chevrolet GMC Immediate Past Chair

Mark A. Hebert Hebert’s Town & Country Ford Lincoln NADA State Director

BOARD OF DIRECTORS

Richard Q. Flick Banner Automotive At - Large / District 1-3

Lee Carney Geaux Automotive ​District 1-3

L. Keith Hanks Lakeside Toyota District 1-3

Brett Barker Terrebonne Ford District 4, NADA PAC Director

Ryan LeBlanc Sterling Automotive District 5

Robert N. Feron Courtesy Chevrolet Cadillac Buick GMC ​District 6

Hunter White White Ford Lincoln, LLC District 8

Brett K. Oubre Lakeside Ford ​District 9

Allen O. Krake Supreme Automotive ​District 10

David Fabre Acura of Baton Rouge ​District 11-12

Corey Tarver Lake Charles Toyota ​District 14

Clint Hixson Hixson Autoplex of Alexandria District 16

Scott Oliphant Kenworth of Louisiana District 17

www.lada.org

7

8

www.lada.org

��������� �������� ��������� It is a conversation that makes many people uncomfortable, but increasingly workplace violence is something we cannot ignore as business leaders and as car dealers. One does not have to look far to find a headline involving horrific workplace violence incidents at car dealerships.

According to the United States Bureau of Labor and Statistics (BLS), there were 392 workplace homicides in 2020. There were also 37,060 nonfatal injuries in the workplace resulting from an intentional injury by another person.

5 Tips to Help Establish a Workplace Violence Prevention Program 

Develop, maintain, communicate, and enforce antiviolence, antiharassment, and antibullying policies. Some businesses opt for a zero-tolerance policy.



Have an open-door policy or a similar policy that lets employees know where they can turn to with any concerns. Consider having an anonymous option for reporting problems.



Consider offering training to employees (or at least supervisors and above) on reducing and preventing violence. There are multiple training options, including ways to de-escalate the situation when problems arise.



If there are any claims or complaints of workplace violence and related behaviors, investigate them immediately, take them seriously, and take action to ensure the problem does not happen again.



Implement other security measures like cameras and good lighting for all areas.

If your dealership needs assistance with this topic or with other safety, health and environmental needs, please reach out to Risk Management Services, LLC (RMS) by phone (1-800-351-7475) or by email (LossPrevention@rmsla.com). RMS now offers a full range of extended services such as safety policy development, on-site safety training, safety data sheet management, OSHA recordkeeping assistance, etc.

www.lada.org

9

TROY DUHON

PREMIER AUTOMOTIVE GROUP The Louisiana Automobile Dealers Association is

an outstanding citizen actively invested in their

proud to announce that Troy Duhon of Premier

community.

Automotive in New Orleans has been named the 2023 Louisiana Dealer of the Year. LADA presented

“From buying his first dealership at 30 years old to

the award to Troy at the Premier Automotive Group

starting his own nonprofit, Troy Duhon’s achievements

headquarters in New Orleans, surrounded by his

exemplify the entrepreneurial spirit and generosity

family, executive team, local general managers, and

we pride our association membership on,” said LADA

key employees.

President Will Green. “Our entire association is proud to recognize Troy as the 2023 Louisiana Dealer of the

This prestigious annual award recognizes one

Year. His success in the industry and support of his

standout Louisiana auto dealer for their business

community embodies the true spirit of the award.

success and impact in the community. Each year,

Congratulations, Troy!”

LADA’s members nominate dealers from various

10

districts and the winners are selected by LADA’s

Duhon’s career began at the early age of 14, when he

board of directors. To qualify, nominees must be the

joined his father in the auto business by washing cars

designated operating head of a franchised new car

on the family’s dealership lot. While attending college

dealership and must demonstrate their exceptional

at LSU, Duhon began selling cars each summer to

status as a reputable auto dealer in the region and

help pay for his college tuition. In 1995, he purchased

www.lada.org

his first dealership, Toyota of New Orleans, and since

“It’s an honor to represent the Louisiana Automobile

then he has continued to invest in the industry and

Dealers Association as this year’s Dealer of the year

grown his portfolio to include dozens of dealerships

on behalf of Premier Automotive,” said Duhon. “It’s

with five in the New Orleans area.

been a dream of Tracy and mine to bless people. As we feed 5,000-6,000 people a day, it truly touches us

​After Hurricane Katrina in 2005, four of Duhon’s

and inspires us to continue doing what we are doing.

dealerships flooded and destroyed 1,200 cars. In

My father always told me no one will remember how

the face of their own struggles, the Duhons felt

many cars I sold, but the good Lord will remember

the need to give back and support others who had

how many people I feed.”

lost everything after the storm. Duhon set up a community relief center in one of his dealerships.

Duhon has served as chairman of the Louisiana

These efforts grew into the foundation Giving Hope, a

Motor Vehicle Commission and on the dealer

nonprofit dedicated to feeding, clothing, housing and

council for Nissan, Toyota and Chrysler. Outside of

providing fellowship to those in need in the Greater

work, Duhon has served on the boards of OTMAC,

New Orleans community and around the world.

Covenant House, the New Orleans Mission and the

Duhon uses profits from the dealerships to support

Giving HOPE Foundation.

this foundation.

www.lada.org

11

12

www.lada.org

Nearly 400 people gathered at the beautiful

relationship building.

Hilton Sandestin in Florida for LADA’s 84th Annual

the potential to foster collaborative initiatives,

Convention, and it did not disappoint! As we reflect

partnerships, and lasting friendships that continue

on the valuable experiences and knowledge shared,

to enrich the automotive landscape.

These interactions have

it’s evident that the convention has played a pivotal role in steering the industry towards greater heights.

We hope that all of the attendees left with a

It provided a platform to address the challenges

renewed sense of purpose knowing just how vital

and opportunities facing the automotive sector and

the automotive industry is to our state and to our

attendees gained fresh perspectives on adapting to

nation. Our staff looks forward to delivering another

an evolving market.

successful convention at the Greenbrier in 2024.

Please save the date for June 19-23, 2024, and be on

Beyond the formal sessions, the LADA Convention

the lookout for information regarding registration

provided an environment for networking and

and hotel accommodations.

www.lada.org

13

14

www.lada.org

www.lada.org

15

Help Manage Risk with The Brand You Can Trust Leverage LAW® — the recognized leader in automotive finance forms.

LAW F&I documents are regularly reviewed for legally required and best practice updates by Hudson Cook, LLP, Reynolds’ industry leading forms specialists, state dealer associations, major financial institutions, and other top leaders of automotive finance law.

Available in print and digital formats for all major DMSs, the widely used standardized documents can provide common defenses, streamline processes and help to manage risk.

For more information on the LAW library of documents or to schedule your free F&I Document Review, contact us at 800.344.0996 or LAW@reyrey.com.

©2023 The Reynolds and Reynolds Company. All Rights Reserved.

16

www.lada.org

www.lada.org

17

WHY IS SUCCESSION PLANNING CRUCIAL? By: Lance Kinchen, Breazeale, Sachse & Wilson, LLP They say that death and taxes are the only inevitable

dealership under the existing franchise if:

things in life. No one likes planning for their death,

designated successor gives the manufacturer or

but such planning can be critical to the future success

distributor written notice of his or her intention to

of your dealership(s). There have been many times

succeed to the ownership of the dealer within sixty

where we have seen bad planning, or no planning

days of the dealer’s death or incapacity; and (ii) the

at all, lead to family disputes and litigation.

designated successor agrees to be bound by all the

In

addition, failure to properly plan can lead to issues

(i) the

terms and conditions of the franchise.”

with the dealership’s lenders, major vendors, and/or La. R.S. §32:1267(A)(4) states that “If a manufacturer

employees.

or distributor believes that good cause exists for Most manufacturers have a process to approve a

refusing to honor the succession of a deceased or

succession plan for the dealership and approve a

incapacitated dealer, the manufacturer or distributor

successor “dealer-operator”.

It is important that

may, not more than sixty days following receipt of

you follow the steps to name a successor dealer-

notice of a designated successor’s intent to succeed

operator for your dealership under the terms of the

and receipt of such personal or financial data, serve

Dealer Sales and Service Agreement and any other

upon the designated successor notice of its refusal to

rules provided by your particular manufacturer or

honor the succession and of its intent to discontinue

manufacturers.

the existing franchise with the dealer not earlier than six months from the date such notice is served.” La.

IF YOUR MANUFACTURER WILL NOT APPROVE

R.S. §32:1267(A)(5) requires that the notice must

YOUR SUCCESSOR DEALER-OPERATOR

state the specific grounds for the refusal to honor

If the manufacturer will not approve a qualified

the succession. La. R.S. §32:1267(A)(6) states that

successor dealer-operator, Louisiana law provides

“In determining whether good cause for the refusal

some protections.

La. R.S. §32:1267(A)(1) states

to honor the succession exists, the manufacturer

that “The terms of the franchise notwithstanding,

or distributor has the burden of proving that the

any dealer may appoint by will, or other written

designated successor is not of good moral character

instrument, a designated successor to succeed in the

or does not otherwise meet the manufacturer’s or

ownership interest of the dealer in the dealership

distributor’s reasonable standards as a franchisee.”

upon the death or incapacity of the dealer.” La. R.S.

Lenders

§32:1267(A)(2) states that “Unless good cause exists

18

for refusal to honor the succession on the part of

In addition, many lender agreements have a due

the manufacturer or distributor, any designated

on death clause. Failure to properly plan for the

successor of a deceased or incapacitated dealer of

death of a majority-owned could cause a dealership

a dealership may succeed to the ownership of the

to lose its floor plan line of credit, working capital

www.lada.org

line, property loans or other lending sources. These

thrust into the role of running the entire dealership

lending institutions may not give your loved ones

due to the sudden death or incapacity of the dealer-

much time to find other financing sources upon the

operator.

dealer-operator’s death.

CONCLUSION EMPLOYEES

With careful planning and much needed follow-up

Employees also can be disgruntled or leave depending

with the manufacturer, you can avoid a lot of these

on the succession plan of the dealership. If the child

problems for your surviving spouse and family

of the dealer-operator takes over with little or no

members by getting a successor dealer-operator

previous experience at the dealership, then long-

approved prior to your death.

term employees may refuse to work with that person

seamless transition for your loved ones, business

and leave the dealership. However, if the successor

partners,

dealer-operator has worked in various departments

employees.

creditors,

vendors,

This will create a and

dealership

of the dealership for many years and has shown his or her value to the dealership, employees will

If you have any questions regarding this matter,

usually respect the change of leadership. The dealer-

please do not hesitate to contact me at ljk@bswllp.

operator has to give a management or leadership

com or (225) 381-8053.

role of a department to the successor dealeroperator so the successor can learn how to manage the dealership and its employees before he or she is

Lance Kinchen

www.lada.org

19

20

www.lada.org

www.lada.org

21

LADA STAFF Will H. Green President wgreen@lada.org

Katherine Carver Director of Events & Communications kcarver@lada.org

Krystal Hudson Executive Assistant & Membership Director khudson@lada.org

one better experience for your customers and staff

“The Cox Automotive products that we use, we chose because of the levels of integration they have, we chose because of the reliability of the products and the support of the teams, and we know that those products are proven! What’s there has been proven and established; and we know that we can rely on that to help us every day put deals together.”

Tom LaPointe Internet Director, Preston Automotive Group

23% more deals closed 63% more leads $187K more profit per month The Power of One | Cox Automotive

Source: Cox Automotive application data between July 2021 and June 2022. Average increase in monthly profits and leads for dealers who use all eight Cox Automotive retail brands as compared to dealers with fewer.

All-in Retail dealers’ average lead close rate is 15.4% (from Cox Automotive application data) compared to industry average of 12.5%.

To learn more, visit CoxAutoInc.com/ThePowerofOne

DSS22-0064_Post-NADA-2023_Auto-News_Outside-Back_10-5x8-375_v9-B.indd 1

22

www.lada.org

3/20/23 2:31 PM

7526 PICARDY AVENUE BATON ROUGE, LA 70808

▪ Franchise Disputes ▪ ▪ Buy-Sell Agreements ▪ ▪ Compliance ▪

Claude F. Reynaud, Jr.

Jeanne C. Comeaux

Lance J. Kinchen

Scoo N. Hensgens