Massachusetts Auto Dealer Magazine January 2023

The Golden Age of Rome

the Year

The official publication of the Massachusetts State Automobile Dealers Association, Inc

Gary Rome is Massachusetts TIME Dealer of

St A ff Directory

Robert O’Koniewski, Esq. executive Vice President rokoniewski@msada.org

Jean Fabrizio Director of Administration jfabrizio@msada.org

Auto De A ler MAg A zine

Robert O’Koniewski, Esq. executive editor Tom Nash editorial coordinator nashtc@gmail.com

Subscriptions provided annually to Massachusetts member dealers. All address changes should be submitted to MSADA by e-mail: jfabrizio@msada.org

Postmaster: Send address change to: one McKinley Square, Sixth floor Boston, MA 02109

Auto Dealer is published by the Massachusetts State Automobile Dealers Association, inc. to provide information about the Bay State auto retail industry and news of MSADA and its membership.

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The official publication of the Massachusetts State Automobile Dealers Association, Inc

Always Looking Forward

Taking on the role of MSADA President in the midst of a reckoning

By Jeb Balise, MSADA President

Our businesses are built to expect the unexpected. As if it is not difficult enough to manage the day-to-day of the retail auto industry, being in our great Commonwealth certainly has its own unique challenges. The Chinese curse “May you live in interesting times” is the best fit for the regulatory and legislative onslaught we dealers confront constantly

MsAdA

BoARd

Barnstable County

Brad tracy, tracy Volkswagen

Berkshire County

Brian Bedard, Bedard Brothers Auto Sales Bristol County richard Mastria, Mastria Auto group

Essex County

William Deluca iii, Woodworth Motors Franklin County [open]

Hampden County

Jeb Balise, Balise Auto group Hampshire County

“I

As the new year arrived, the tenure of our long-serving MSADA President Chris Connolly came to a close. During the past several years, Chris has worked tirelessly to ensure our business community moved together toward a brighter future. The challenges that we faced as individual businesses grew during the past few years, and Chris rose to the occasion to ensure that as a group we were well represented at the local, state, and national levels. On behalf of our members, I extend our gratitude and appreciation to him for his service during a tumultuous time for our industry, state, and nation.

Taking time to work for others traveling the same path can be daunting. We are competitors by our nature, but COVID-19 especially has proven that collaboration is key to ensuring the survival of our collective way of life. That is why MSADA was created all those years ago. As a member dealer, you know that we are working every day to combat the forces working against all of us.

As we have seen time and again, it is important for all of us to stay as plugged in to what is going on as possible, so that when the time comes we can leverage our grassroots strength of 20,000 employees across the state.

MSADA is here to protect the interests of our member dealers before political bodies and our OEMs at an industry-wide level. Much of the latter part of Chris’s tenure as MSADA president has been spent holding back the tide of OEMs working across the country to outright destroy the nearly century-old franchise dealer system in favor of an irresponsible and dangerous new model.

It seems clear that the work will need to continue.

As always, while your Association continues to work for you with stalwart Executive Vice President Robert O’Koniewski here to guide us along the way, we must rely on your help to make the case that dealers are economic engines and key partners of the communities they serve. Hopefully, as you continue to see the stakes involved in what we are fighting against, you will think about how you can contribute to our efforts during the coming year.

I am eager to work with you to protect what generations of families have built, and I look forward to hearing from you about how we can do that together. t

Bryan Burke, Burke chevrolet Middlesex County frank Hanenberger, MetroWest Subaru Norfolk County

Jack Madden, Jr., Jack Madden ford charles tufankjian, toyota Scion of Braintree Plymouth County christine Alicandro, Marty’s Buick gMc isuzu Suffolk County robert Boch, expressway toyota Worcester County Steven Sewell, Westboro chrysler Dodge ram Jeep Steve Salvadore, Salvadore Auto Medium/Heavy-Duty

Truck Dealer

Director-at-Large [open]

Immediate Past President

chris connolly, Jr., Herb connolly Motors

NADA Director

Scott Dube, Mcgovern Hyundai rt.93

OFFICERs

President, Jeb Balise

Vice President, Steve Sewell Treasurer, Jack Madden, Jr. Clerk, c harles tufankjian

am eager to take on this challenge at one of the most critical points in our industry’s history.”

MSADA A SS oci Ate M e M ber D irectory

ACV Auctions

Steve Sirko (856) 381-3914

ADESA

Jack Neshe (508) 626-7000

Albin, Randall & Bennett

Barton D. Haag (207) 772-1981

Ally Financial

Maryanne Recupero (617) 997-9574

American Fidelity Assurance Co.

Kathleen Weisenbach (402) 523-5945

America’s Auto Auction Boston

Jim Lamb (781) 596-8500

Armatus Dealer Uplift

Joe Jankowski (410) 391-5701

Auto Auction of New England

Steven DeLuca (603) 437-5700

Automotive Search Group

Howard Weisberg (508) 620-6300

Bank of America Merrill Lynch

Dan Duda and Nancy Price (781) 534-8543

BCI Financial Corp.

Timothy Rourke (203) 439-9400

Bellavia Blatt

Leonard Bellavia (516) 873-3000

Bernstein Shur PA

Ned Sackman (603) 623-8700

Broadway Equipment Company

Fred Bauer (860) 798-5869

Burns & Levinson LLP

Paul Marshall Harris (617) 345-3854

Sarah Decatur Judge (617) 345-3211

CDK Global

Rob Steele (508) 564-1346

Chase Auto

Ken Miller (508) 902-8908

Clifton Larson Allen

Rick Parmelee (860) 982-9307

Coastal Outsourced Solutions

Andrea Vieira (508) 979-4733

ComplyNet

Adam Crowell (614) 634-8843

Cooperative Systems

Scott Spatz (860) 250-4965

Cox Automotive

Ernest Lattimer (516) 547-2242

CVR

John Alviggi (267) 419-3261

Dave Cantin Group

Woody Woodward (401) 465-7000

DealerSafeGuardSolutions

Doug Fusco (972) 740-8638

DealerShop

Ken Grove (248) 444-6283

Brian Fleischman (716) 864-0379

Downey & Company

Paul McGovern (781) 849-3100

DP Sales Distributors

Andrew Prussack {631) 842-7549

Eastern Bank

David Sawyer (617) 620-3484

Eastern Insurance Group

John Berksza (508) 620-3349

EasyCare New England

Greg Gomer (617) 967-0303

Electric Supply Center

Jennifer Williams (781) 265-4272

Enterprise Rent-A-Car

Timothy Allard (602) 818-3607

Ethos Group, Inc.

Drew Spring (617) 694-9761

F&I Direct

Sean Wiita (508) 414-0706

Michelle Salas (508) 599-0081

F & I Resources

Jason Bayko (508) 624-4344

Federated Insurance

Matt Johnson (606) 923-6350

Fisher Phillips LLP

Joe Ambash (617) 532-9320

Jeff Fritz (617) 532-9325

Josh Nadreau (617) 532-9323

Gulf State Financial Services

Mike Sims (817) 689-1735

GW Marketing Services

Gordon Wisbach (857) 404-0226

Hilb Group

James Pietro (508) 791-5566

Huntington National Bank Michael Ham (740) 815-5085

John W. Furrh Associates Inc.

Pamela Barr (508) 824-4939

Key Bank

Mark Flibotte (617) 385-6232

KPA

Abe Cohen (503) 902-6567

LocaliQ Automotive

Jay Pelland (508) 626-4334

LoJack by Spireon

Ashvir Toor and Robin Dukes (800) 557-1449

LotLinx

Giovanna Scognemiglio (310) 526-1463

M & T Credit Corp.

John Federici (508) 699-3576

Management Developers, Inc.

Dale Boch (617) 312-2100

McWalter Volunteer Benefits Group

Shawn Allen (617) 483-0359

Merchant Advocate, LLC

Dan Giordano (973) 897-2778

Mintz Levin

Kurt Steinkrauss (617) 542-6000

Murtha Cullina

Thomas Vangel (617) 457-4000

Nancy Phillips Associates, Inc.

Nancy Phillips (603) 658-0004

NEAD Insurance Trust

Charles Muise (781) 706-6944

Northeast Dealer Services

Johna Cutlip (401) 243-7331

O’Connor & Drew, P.C. Kevin Carnes (617) 471-1120

Performance Management Group, Inc.

Dale Ducasse (508) 393-1400

Piper Consulting Jim Piper (207) 754-0789

Pro-Vigil

Sasha Lam-Plattes (408) 569-2385

Pullman & Comley LLC

James F. Martin, Esq. (413) 314-6160

Resources Management Group

J. Gregory Hoffman (800) 761-4546

Reynolds & Reynolds

Austin Ziske (802) 505-0016

Rinn Advisors

John Corcoran (617) 480-6693

Rockland Trust Co. Joseph Herzog (508)-830-3241

Samet & Company

John J. Czyzewski (617) 731-1222

Santander Bank Richard Anderson (401) 432-0749 Chris Peck (508) 314-1283

Schlossberg, LLC

Michael O’Neil, Esq. (781) 848-5028

Shepherd & Goldstein CPA Ron Masiello (508) 757-3311

Southern Auto Auction Joe Derohanian (860) 292-7500

Sprague Energy Robert Savary (603) 430-7254

The Towne Law Firm P.C. James T. Towne, Jr. (518) 452-1800

TrueCar

Pat Watson (803) 360-6094

Truist

Andrew Carmer (401) 409-9467

US Bank

Vincent Gaglia (716) 649-0581

Wallbox USA, Inc.

Sean Ugrin (720) 220-1711

Wells Fargo Dealer Services

Josh Tobin (508) 951-8334

Windwalker

Herby Duverne (617) 797-9316

Zurich American Insurance Company Steven Megee (774) 210-0092

An End and A Beginning

By Robert O’Koniewski, Esq. MSADA Executive Vice President rokoniewski@msada.org

Follow us on Twitter • @MassAutoDealers

The initial week of 2023 at the Massachusetts State House was momentous for several reasons, including the ascension to power of those who have felt long-time marginalized in the halls of political power.

• After two four-year terms of Republican Gov. Charlie Baker, who did not run for a third term, Attorney General Maura Healey was sworn in as governor on January 5, the first woman elected to the position in our state’s history. She will be backed up at Lieutenant Governor by her running mate, Kim Driscoll, who was the longtime mayor for the City of Salem.

• Gov. Healey returns the Corner Office to the Democrats. Since 1991, but for eight years of Deval Patrick in 2007-2015, Republicans had a tight grip on the governor’s office, effectively serving as a moderating influence on an increasingly liberal legislature, whose first tendency is to spend every dollar coming into our coffers and raising taxes and fees, if they could. The Republican governors of Weld, Cellucci, Swift, Romney, and Baker also recognized the strength and contributions small businesses bring to our economy and pursued policies to nurture and enhance our Main Street business communities. There is a contingent of Democrat legislators who understand that businesses contribute to our economic engine, generating the revenues the state needs to fund its growing realm of government-based social spending. Early indications are that Healey wants to continue in Baker’s footsteps by collaborating

with the business community to address matters of economic growth, workforce development, affordable housing, clean energy, and transportation reforms. This, obviously, will be a work in progress.

• Gov. Healey is the first openly declared gay woman to become governor, a distinction that matters to those in the Commonwealth who see it as another step towards removing barriers to achieving our society’s mantra that anyone can grow up to be anything they want to be if they set their mind and work ethic to it. From the legislative fight for gay rights in the mid-1980s, to having two openly gay men represent the state in the halls of Congress, through to the state’s judicial recognition of same-sex marriage in 2004 and concerns what would happen at the U.S. Supreme Court in 2022, members of the gay community take pride in what the governor’s election means in a society that has been openly and covertly hostile to their societal progress.

• The 193rd General Court of the Commonwealth, sworn in on January 4, is the most diverse racially in the state’s history, reflecting the growing share of minority populations demographically. This is a direct result of the 192nd General Court’s overt commitment to creating a redistricted map of House and Senate seats that included a handful of new non-incumbent minority-majority seats in black and Latino dominated urban centers across the state. Further, although not the highest proportion in our state’s history, the number of women

legislators continue to grow, especially in the leadership ranks.

• The incoming legislature will have more Democrats, as a result of the November elections, and will see 21 new faces within the two chambers. Incumbents also did well in last year’s elections, as only two representatives suffered defeat – Lawrence Democrat Marcos Devers in his primary and Georgetown Republican Lenny Mirra to his Democrat challenger by one vote in a hugely redrawn district.

• Democrat women will maintain an increasing grip on the constitutional offices. In addition to the Healey-Driscoll duo in the Corner Office, voters elected Boston city councilor Andrea Campbell to replace Healey as attorney general and Methuen State Senator Diana DiZoglio to replace the retiring Suzanne Bump as state auditor. Secretary of State William Galvin (D-Boston) is now the only male state office holder.

• There were no surprises at the top of legislative leadership. Senate President Karen Spilka (D-Ashland) and House Speaker Ron Mariano (D-Quincy) were re-elected by their peers on January 4 to head their respective chambers. There will be a dozen leadership vacancies (5 in the Senate and 7 in the House) created by retirements. A monolithic control of power does not ensure smooth sailing. Although the Democrats hold all the reins of power at the state level, with a shrinking GOP presence in the legislature, that does not necessarily mean they will all see eye-to-eye on addressing the Commonwealth’s problems. That was quite evident by the Speaker’s reaction to the Governor’s speaking of pushing a tax cut agenda when clearly she had no conversations with him prior to her making those statements. Even when Gov. Baker offered up such tax cuts that made it to an economic development bill that died in July of last year, the Speaker has been lukewarm at best to any tax cuts. Further, although the Governor and the two legislative leaders for now seem committed to a collaborative effort, it will be interesting to see how long the euphoria we see in the early days of 2023 continues during the 2023-2024 ses-

sion. After all, the first major bill filing the Governor will make will be the issuance of her initial state budget in a month and we all know that going back through time in memoriam, “A governor proposes and the Legislature disposes.”

A Few Hours Separate Old Legislature from the New

Under our Massachusetts Constitution, the first Wednesday in January in the odd year brings us the start of a new two-year session. Unfortunately – or fortunately depending on one’s perspective or legislative desires – the previous session is supposed to end at midnight on the Tuesday preceding the start of the next session. This does not always go according to plans.

One may recall that two years ago, the Legislature went well past its midnight deadline and continued working into Wednesday until about 4:45 a.m., leaving returning legislators little time to clean up and put on new clothes for the 11 a.m. swearing in. The newly elected strolling in that morning for their first swearing in had to be mumbling to themselves and asking just what they got themselves into.

This time around, the legislative volume getting pushed through the sausage making system in the days after Christmas leading up to the January 3 deadline was no less than that seen in other years. The solons, however, only needed to go fifteen minutes past midnight to send 92 bills to the Governor for his review and signature before he was to relinquish office 36 hours later at Noon on January 5.

As for matters of keen interest to our dealers, your legislative team was able to get two items teed up in December for final action before the legislative dance ended on January 3:

• House 5446 will require the RMV to fully implement the temp tags law, especially to accommodate vehicle sales to out-ofstate customers; and

• House 5356 (Senate 3169) will provide law enforcement additional tools to combat catalytic converter thefts.

These matters would not have had the considerable legislative support they re-

ceived from House and Senate members if not for the input dealers provided to legislators throughout the session.

Your Association extends our gratitude to all the dealers who made calls to their legislators after Christmas and into the New Year and then to the Governor’s office to help get these bills over the goal line and into the law books. Throughout the twoyear session, from the start of the public hearings process in early 2021 through the 2022 holiday season and past New Year’s Day into 2023, our members’ contacts with their legislators and the Governor have been invaluable to achieving success in this arduous process. Success has many authors, and these new laws demonstrate that.

In the hours before he was set to hand over the reins of the governorship to then Gov.-elect Maura Healey, Gov. Baker signed into law these two bills. We extend our gratitude to Gov. Baker and Lt. Governor Karyn Polito. They have been longtime friends to our member dealers and your Association for over a decade. They and their staffs have been invaluable in addressing the needs of the Commonwealth’s small business community and dealerships’ Main Street businesses. The Governor and his team’s presence and leadership on Beacon Hill will be missed.

Moving forward, there will be a subsequent implementation process for these two laws, in which your Association will participate. I have already reached out to the RMV regarding the temp tags law so we can get this implemented quickly once it takes effect in 90 days. The devil will be in the details and how state agencies put these new processes into place. Stay tuned for more information as the process unfolds.

MSADA Officers Elected

At its most recent meeting on December 20, your Association’s Board of Directors elected Jeb Balise of Jeb Balise Auto Group as our MSADA President for 2023-2024. The board also re-elected Steve Sewell of Westborough Chrysler Dodge Jeep Ram as Vice President; Jack Madden, Jr., of Jack Madden Ford as Treasurer; and Charles

Tufankjian of Toyota of Braintree as Clerk. Congratulations to our slate of officers for their commitment to our members over the next two years.

We also want to express our gratitude to Chris Connolly for his six-years at the helm of your Association. Chris worked tirelessly to ensure that the dealer voice was heard up on Beacon Hill and down in the halls of Congress. Chris served during a rather hectic time in our industry as we faced numerous challenges from government, our franchisor factories, and the unseen but deadly Covid-19 virus. Being president is more than chairing some board and executive committee meetings. Our president needs to be the face of our industry and our members in any number of forums. Chris stepped up to the challenges of the day and served his colleagues admirably.

Compliance Reminder –Doc Prep Fees

As you prepare for 2023, now is a great time to review your documentary preparation fee, the so-called “doc fee.” A doc fee can be charged by dealers to offset the costs incurred by a dealer in processing various paperwork associated with a sale; it is not to be used as a “profit-making” component of the vehicle purchase.

• There is no set maximum in Massachusetts law that a dealer can charge, but dealers should practice restraint. We have assisted dealers previously with a calculation template.

• The doc fee must be included in the total purchase price advertised to customers.

• The doc fee is not optional; charge everyone the same amount or charge no one.

• Two items that may never be included in the “doc prep” fee: (1) preparation of the Retail Installment Sales Contract cannot be part of the fee’s calculation as you would then need to wrap it into the APR calculation; and (2) if you are on the EVR system, you cannot include the EVR fee in the “doc prep” fee.

• Do not charge anyone more than $5 for a title prep fee; it is set in state law.

• We have a template for a customer brochure available for dealers to provide to

customers explaining the doc fee.

Several times we have beaten back previous legislative efforts to regulate the doc fee, and we expect similar legislation to be filed in 2023. Please do not let fee abuses cause additional scrutiny from legislators and regulators.

Compliance Reminder –Employee Handbook & Pay Plans

Your dealership’s employee handbook and pay plans should be adaptable documents as new federal and state law and regulatory changes impact your operations continually. Use the beginning of the year to work with your counsel to make any necessary changes to your operations and HR policies to remain compliant with the letter of the law. Fighting employee lawsuits are becoming more commonplace and expensive and can easily overwhelm the simple cost of a legal review of your documents by competent counsel.

Compliance Reminder –Print Ad Regs

The beginning of the new year is an excellent time to review your print advertisement practices to make sure you do not run afoul of state and federal enforcement activities by the Massachusetts Attorney General or the Federal Trade Commission. This is true especially if you leave it to ad copy writers who do not necessarily remain vigilant to current regulations. If necessary, dealers should consult with competent counsel to ensure their ads comply with both state and federal rules. Check out our MSADA Bulletin #5, issued on January 6, 2023, discussing these important rules you need to follow.

File IRS Form 8300 by Jan. 31

The IRS requires any person who receives more than $10,000 in cash in a single transaction or a series of related transactions while conducting his or her trade to file a Form 8300 with the agency by the 15th day after the date the cash transaction occurred. Under the IRS rules, a business also must notify its customers, in writing, by January 31 of the subsequent calendar

year that the business has filed a Form 8300 regarding the cash transaction with the customer. As an alternative to filing the paper Form 8300, businesses may file electronically the Form 8300 using FinCEN’s Bank Secrecy Act (BSA) Electronic Filing System. E-filing can be done at no charge, and it is a quick and secure way for individuals to file their Form 8300s. Filers receive an electronic acknowledgement of each submission. To receive more information, visit the BSA E-Filing System at http://bsaefiling.fincen.treas.gov/main.html.

2023 Dues Invoices

At the start of January your Association sent out 2023 dues invoices to all our dealership and associate members. Our members’ dues help fund the Association’s activities on their behalf, including our lobbying on Beacon Hill and in Washington, our member counsel services, and our education and training activities.

Over the last several years we have witnessed quite a bit of economic disruption in our industry, including governmental over-regulation. More than ever, our dealers need a strong MSADA. MSADA will continue to lead on the various issues that threaten the viability of our dealerships. We will strive continuously to keep you informed of developments in our industry and how they will play out in Massachusetts. These efforts also include working closely with NADA to better serve our members.

Our strength lies in our members. With your continued support and membership renewal, we can build on our current foundation and begin to enhance your Association’s core purposes of communication, advocacy, and education.

MLK Holiday- January 16

The Martin Luther King holiday this year falls on Monday, January 16. Under state law, there are no restrictions. Hence an employee may be required to work on the holiday. For a full discussion of the 2023 holidays, check out our MSADA Bulletin #123 issued on December 28, 2022.

FINAL 2021–2022 SESSION

BILL# SPONSOR SUBJECT STATUS

Sen Crighton Sen Pacheco

Amendments to Ch. 93B, the auto dealer franchise law.

H365 H400 S180 H421

Joint Committee on Consumer Protection held public hearing on July 19, 2021; placed into study.

Rep Finn Rep Howitt Sen Crighton Rep Lewis

RTR Law amendments to fix Model Year start date and consumer notice.

in the Joint Committee on Consumer Protection held public hearing on January 10, 2022; placed into study.

Modernize on-line purchase process.

H345 Rep Cusack Clarifies licensure to finance small loan contracts with negative equity.

S183 S239 H407 H1183 S657 H1065

S226 Sen Moore Amends definition of heavy-duty trucks under RTR law.

S245 H470 Sen velis Rep walsh Open safety recalls notifications.

H1152 H1178 S711

Rep Hunt Rep Puppolo Sen DiZoglio

H423 Rep Linsky Allows an OEM to open a factoryowned store, without a dealer, if there is no same line-make dealer in the state. (The so-called “Tesla Exemption.”)

Rep McMurtry Rep Phillips Sen Moore

Rep Mahoney

H336 H361 S234 H3477 H3494 S2372

Rep Chan Rep Finn Sen O’Connor Rep Golden Rep Howitt Sen Rush

Creates process to increase the insurance reimbursed labor rate paid to auto body

Regulates sale of service contracts.

H1070 S719 Rep Driscoll Sen O’Connor Creates administrative appeal process for vehicle owners to seek diminished value of damaged vehicle returned to vehicle owner.

S46 H142 Sen Creem Rep vargas Mass. Information Privacy Act

Creates process to appeal improperly issued Class 1 license Creates statutory process for allowing temp tags for out-of-state sales.

H3450

H3441 Rep Dooley eliminates initial state inspection for new vehicle

H2004 Rep Jones Sleepy’s-related affirmative defense.

H3321

H3368

H3888

H4134

Rep Hill Rep Roy Rep Golden Rep Pupollo

Promote sale of evs.

H4722 Rep Howitt Combat catalytic converter thefts

SUPPORT SUPPORT

Joint Committee on Consumer Protection held public hearing on July 19, 2021; placed into study.

Joint Committee on Consumer Protection held public hearing on July 19, 2021; reported favorably, referred to respective SWM and HWM.

SUPPORT Joint Committee on Consumer Protection held public hearing on July 12, 2021; reported favorably; GOv. SiGneD inTO Law.

SUPPORT Joint Committee on Consumer Protection held public hearing on July 19, 2021; placed into study.

OPPOSe Joint Committee on Consumer Protection held public hearing on July 19, 2021; H470 reported favoably, referred to HWM.

SUPPORT SUPPORT

OPPOSe Joint Committee on Consumer Protection held public hearing on July 19, 2021; placed into study.

Joint Committee on Financial Services held public hearing on September 15, 2021; redraft S2928 reported favorably, referred to SWM; redraft H4868 reported favorably, referred to House BTR.

SUPPORT

Joint Committee on Financial Services held public hearing on September 15, 2021; H1065 reported favorably; referred to House BTR: House engrossed on Dec. 27, 2022; referred to Senate Rules.

SUPPORT Joint Committee on Financial Services held public hearing on September 15, 2021; reported favorably, referred to respective SWM and HWM.

SUPPORT SUPPORT

OPPOSe Joint Committee on advanced information Technology held public hearing on October 13, 2021; redraft (S2687) reported favorably, and referred to SWM.

Joint Committee on Transportation held public hearing on December 13, 2021; H3477 and S2372 reported favorably; referred to House and Senate Ways and Means. SWM reported redraft (S2797) favorably, which Senate approved; referred to HWM; House approved; GOv. SiGneD inTO Law.

OPPOSe Joint Committee on Transportation held pblic hearing on January 18, 2022; redrafts (H4480, S2638) reported favorably.

SUPPORT Joint Committee on Transportation held public hearing on January 25, 2022; placed into study.

SUPPORT Joint Committee on Labor and Workforce Development held public hearing on november 9, 2021; placed into study.

SUPPORT Joint Committee on Telecommunications, Utilities, and energy held public hearing on July 28, 2021, and December 14, 2021. Pieces included in S2819, which Senate and House passed. Became law, Chap. 179 of the 2022 acts.

SUPPORT Joint Committee on Transportation reported favorably; House and Senate approved redraft, H5356; GOv. SiGneD inTO Law.

www.msada.org Massachusetts Auto Dealer

www.msada.org Massachusetts Auto Dealer

The Golden Age

Gary Rome of Holyoke nominated for 2023 TIME Dealer of the Year

By Stephanie Power

They say Rome was not built in a day. Gary Rome Hyundai also was not. Rome, who celebrated 25 years in business this May, says thriving as a top Hyundai franchise in the country is not an individual achievement but is thanks to the tireless efforts of his dedicated team members. Out of 169 northeast franchises, Gary Rome Hyundai ranks #5 and is #35 out of 820 nationwide.

“My employees are the backbone of my success, and I have extremely loyal and hardworking employees,” Rome said, noting that one of every four vehicles in his market is a Gary Rome Hyundai. “I want to be really clear. I receive many accolades as the owner, but it is about our team and what they do every single day, and how they treat the community. That is a big reason we are being recognized.”

Being Recognized

In October, MSADA and its Executive Vice President Robert O’Koniewski nominated Rome, owner of Gary Rome Auto Group and dealer principal at Gary Rome Hyundai in Holyoke, as their Massachusetts TIME Magazine Dealer of the Year for 2023. Rome will compete in the 54th annual ceremony against 47 other nominees for the national TDOY recognition at the NADA show in January in Dallas.

The nomination comes as little surprise to those who know and work with Gary. Known for always being on the go and going above and beyond to help someone in need, Rome is highly passionate about serving the Holyoke community and treating staff and customers as family.

“He is a remarkable man in a lot of ways,” said Mark French, Advertising Director of Springfield newspaper The Republican and Masslive.com. “I don’t think you will ever find someone that is as disciplined in the way that he lives his life to the fullest both personally and professionally. He has earned everything in his success; he has worked very hard; and he is just very kind, a very giving person.”

of Rome

Apart from being an active advertising customer, French said Rome appears in his company’s media platforms and in local news often, simply due to Rome’s incredible commitment to the community.

“I think Gary recognizes the importance of giving back, and he is grateful,” French said, calling Rome a customer, friend, business partner, and confidante. “He has really practiced so many things that more of us should.”

As a second-generation dealer, Rome fell in love with the business by following his father, Jerry Rome, around his home garage in Holyoke. Gary started officially working in his dad’s Datsun dealership when he was 16. Graduating from Ithaca College in 1983 and completing his Auto Dealer Certificate from NADA/ATD Academy in 1984, he eventually opened his own Hyundai franchise in 1997, having purchased the Datsun dealership building from Jerry.

“My father began it all with a smile back in 1958,” Rome said. “My father’s memorable quote, ‘Gary, it doesn’t cost any extra to be nice!’ has been ingrained in me since day one.”

Rome’s current Hyundai dealership in Holyoke, built in 2015, is state-of-the-art in sustainability. A solar field behind the dealership has saved over 7 million pounds of CO2 emissions since its installation date in 2016, which is the equivalent of planting 53,000 trees. The solar field subsidizes energy bills for 12 buildings in the City of Holyoke.

In December 2021, Gary Rome Hyundai was the first Hyundai dealership on the east coast to deliver the all new Ioniq 5 EV. Rome became a pilot dealer this year for the Hyundai Evolve+ electric vehicle rental program, where clients can try before they buy electric, with no commitment.

Rome spent 18 years in a Dealer 20 Group and has been President of the Hyundai Dealers Advertising Association since 2019. In July 2022, Rome was sworn in as the eastern region board member for Hyundai Hope on Wheels, Hyundai’s philanthropic sector that has funded over $200 million for pediatric cancer research.

its to spread the word about their missions and events. It seems whatever project he touches, the success amplifies.

A member of the Holyoke Community College (HCC) Board of Directors since 2017, Rome was instrumental in cre-

“Community philanthropy is a way of life for me, and I am committed to making a difference,” Rome said, adding he serves on many boards and is a well-known community mentor. “Everybody has my cell phone number. I say why not? I like to make myself available to people.”

Rome uses his connections with local media to assist non-prof-

ating and launching a one-day giving campaign in 2021 and 2022 called Drive to Change Lives. Funds raised go to the HCC president’s emergency fund and also supports the student Thrive Center, a place for fostering financial literacy and meeting students’ basic needs with resources like a food pantry. The one-day campaigns raised nearly $200,000. Rome offered a $10,000 matching donation to encourage donors, and that amount was exceeded.

“Our campaign success is similar to or in some cases even exceeds the success of many four-year institutions

doing similar campaigns,” HCC President Dr. Christina Royal commented. “I think that alone is really compelling. Part of what makes Gary such a good industry leader is he puts his passion around helping students gain greater access to careers and pathways through education. We are in the business of changing lives through education, and he gets that.”

idays. The annual auction to raise money for Ronald McDonald House of Springfield has the dealership decorated with about 35 trees and 16 dream gifts like big-screen televisions, iPads, and bicycles. In the past weeks, Rome and his team hosted a live auction evening with 250 people raising $30,000, and a holiday craft fair with 30 vendors, seeing 800 people stream through the service department within four hours. To date, the event has raised over $170,000.

“The Hyundai dealership in particular, not only has it been a great business example in Holyoke and beyond, because of the culture he’s built there, the employees, their commitment, it creates an unbeatable atmosphere that you can feel,” said French, who is also Rome’s hiking and workout partner. “People walk in there and they just want to buy a car there because it feels so good. He’s ranked with car sales with far larger markets; we are tiny compared to the New York metropolitan market, but he sells right up there. That is why he is being recognized.”

Rome is one of a select group of 48 dealer nominees from across the country who will be honored at the 106th annual National Automobile Dealers Association Show in Dallas, Texas, on January 27, 2023. “Gary epitomizes the type of person we want to represent us,” said MSADA Immediate Past President Chris Connolly of Herb Connolly Motors. “He is a true asset to our industry, his community, and our Association.”

Royal said Rome’s passion for the HCC Foundation’s work has lead to his current role of co-chair of HCC’s upcoming Comprehensive Campaign, which is in the planning stages. “Gary epitomizes the type of community leader that really leads with his heart and his willingness to use his energies to champion for greater access and empowerment of our community. I believe that’s why so many people resonate with his energy, personality and business.”

Rome has a wife, Jane, three children, and two local celebrity Vizsla dogs that spend most of their days tagging along with him, bringing smiles to customers in the dealership, or making commercials. Sadly, Rome made the announcement that the elder dog, Jack, recently passed and will be greatly missed.

A Facebook post from Gary Rome Hyundai on October 10 reads, “You couldn’t wait to go to work every day and greet customers and make friends at Hyundai - The House that Jack Built.”

At the time of this printing, the post had 7,200 reactions, 2,600 comments, and 384 shares from followers.

Presently, the Holyoke showroom halls are decked for the hol-

“As a successful businessman and civic leader, Gary demonstrates year-in and year-out an outstanding commitment to Holyoke and her residents through his charitable giving and community service,” O’Koniewski said. “His achievements set a high bar for others to follow. Gary is truly what the Dealer of the Year award is all about – community, integrity, service. We are proud to have him represent all Massachusetts dealers at the national awards ceremony in Dallas.”

from Around the h orn

BOSTON

CarMax settles with 36 Attorneys General over Recall disclosures

Nationwide used car dealer CarMax Auto Superstores, Inc. and 36 state attorneys general (which includes Massachusetts) announced a $1 million multistate settlement that will require CarMax to disclose open recalls related to the safety of its used vehicles before consumers purchase them. The settlement resolves an investigation into CarMax’s advertising and sales practices related to vehicle recalls since 2014.

The attorneys general allege that CarMax failed to disclose repairs that were necessary on vehicles with open safety recalls, and it represented that those vehicles were safe despite open recalls for airbags, brakes, fuel pumps,

and other critical parts and safety features. Under the agreement, CarMax is enjoined from engaging in any act or practice in violation of the consumer protection acts of the states that are party to the settlement.

In addition to the injunctive relief, the settlement requires CarMax to help consumers access information about open safety recalls by including hyperlinks for vehicles advertised online and QR codes for vehicles advertised in brick-and-mortar locations that link directly to open recalls through the National Highway Traffic Safety Administration VIN Look-up or an acceptable commercial provider with recall information. CarMax must also present consumers with copies of open recalls and obtain the consumer’s signature on a standalone disclosure document before presenting any other sales paperwork.

In MeMorIaM

Richard King

Richard R. King, 77, longtime Adams businessman and civic leader, died on December 25, 2022, at Berkshire Medical Center in Pittsfield. A pillar of his community and family, Rick was known for his quick wit, loving demeanor, and endless generosity.

He was born in Adams on May 4, 1945, a son of the late Milton King and Margaret (White) King Bedard. He attended Adams schools and graduated from C.H. McCann Technical High School in North Adams as a member of its first graduating class in 1963.

In October 1963, in his first business endeavor at age 18, Rick opened Rick’s Service Station on Columbia Street in Adams. In 1965 he started a new car dealership with Leonard Bedard in South Deerfield. He returned to the Adams area in 1966 to establish Rick’s Auto Sales on Curran Highway in North Adams.

In 1973, General Motors awarded him a franchise, and he established McAndrews-King Pontiac Buick in Adams together with the late Owen McAndrews. McAndrews-King added the GMC line in 1978, and he became the sole owner of the dealership in 1979. He remained an active part of the business with his current partner and management team until his passing. McAndrews-King’s current management is dedicated to continuing the legacy of excellence Rick curated within the business since

he was 27 years old.

Rick was a long-time member and Chairman of the Board of Trustees of South Adams Savings Bank, and a Trustee with its successor, Adams Community Bank. He was a past chairman and member of a board of the Plunkett Trust and was instrumental in assuring that remaining funds of the former W.B. Plunkett Memorial Hospital would stay in Adams after its closing to recruit new doctors, nurses, and medical professionals to come to the town to continue to provide medical care to Adams residents. Massachusetts Museum of Contemporary Art (MASS MoCA) in North Adams recognizes Rick as being the first donor to contribute to the fledgling museum, having donated a new GMC van to be used to transport potential investors and artists to tour the facility at its inception.

Rick started racing motorcycles at age 12 under the guidance of Ron Ouimet and won four trophies by the time he finished his racing career several years later. Rick was a member of the Adams Lions Club, the Adams Lodge of Elks, and the Mountain Club. An avid golfer, he was a member of the Forest Park Country Club in Adams, Taconic Golf Club in Williamstown, and Bear’s Paw Country Club in Naples, Florida, where he and his wife spent the winter months for the past 35 years.

BOSTON Press Release from Rep. smitty

Pignatelli: Legislature Passes Temporary Registration Plates Bill

The Massachusetts legislature passed An Act relative to temporary registration plates as the 192nd legislative session of the General Court of Massachusetts came to an end. In one of his final acts as Governor, Charlie Baker signed the legislation into law. The final version of the bill was based on legislation originally filed by Representative Smitty Pignatelli of Lenox and former Representative Thomas Golden of Lowell. The bill authorizes the Registrar of Motor Vehicles to design, issue, and regulate temporary registration plates for vehicles, including plates for purchasers who reside out of state and plan to transport their vehicle back to the Commonwealth.

“Getting this bill across the finish line is a tremendous win,” said Pignatelli. “Not only will these changes ease the process of purchasing a vehicle, but the Commonwealth will see tens of millions of dollars in additional revenue that we were previously losing to other states. After years of hard work, I could not be happier that Governor Baker signed this bill as one of his last acts in office.”

rep .Smitty Pignatelli, lenox

Under this new law, temporary plates will be issued to dealers and will be valid for up to twenty days once a purchaser has paid the proper fee and completed an application. The ability to issue temporary plates allows out-of-state purchasers to take possession of their new vehicle in Massachusetts, which saves the dealerships the cost of delivery and allows for sales tax on the vehicle to remain in Massachusetts. Temporary plates are a cost-saving mechanism for the consumer, as the dealership will no longer have to acquire permanent plates for them. Out of state residents must provide sufficient proof of residence, motor vehicle insurance, and property damage insurance to dealers upon purchase.

“This is an issue of consumer convenience. As consumers shop on the internet and across states, this will give them a better experience to pick up their vehicle,” said Robert F. O’Koniewski, Executive Vice President of the Massachusetts State Auto Dealers Association. “We thank and applaud Rep. Pignatelli for his tenacity and tireless work on this issue for his constituents.”

“This is a win for the state, a win for the customer, and a win for dealerships across the Commonwealth,” said George Haddad, owner of Haddad Auto Group. “With this streamlined process, more clients will be incentivized to purchase vehicles in Massachusetts. We’re going to see tens of millions in revenue, and customers will be much happier.”

The 193rd Session of the Massachusetts General Court began on Wednesday, January 4, as members of the House of Representatives and Senate were officially sworn in.

SEEKONK

Attleboro Sun Chronicle: Thanks to seekonk

Lawmaker, Car owners

Now Have More Protection

Gone in 60 seconds.

Yes, it’s the name of an action movie starring Nicolas Cage and Angelina Jolie.

But it’s also what can happen when thieves target your vehicle’s catalytic converter.

Now, however, police have another tool to prevent the thefts, which have exploded local and nationally.

And drivers can thank an area lawmaker for it.

In one of his last official acts in office, Gov. Charlie Baker last week signed a bill designed to curb the theft of catalytic converters by regulating the purchase of the automobile parts by scrap metal dealers.

The measure was sponsored by state Rep. Steve Howitt, a Republican from Seekonk who deserves praise for shepherding the bill through the Legislature on the final days of its session, when unanimous approval is required. Otherwise, the legislation would have had to start over from scratch this year.

Scrap metal buyers must now require proof of identification and a bill of sale or other document indicating ownership from sellers. The new law also requires buyers to keep records of all catalytic converter sales including the sellers’ name, address and license plate number.

The law is a response to a rise of thefts of the pollution-reduction devices in Massachusetts and across the country as the price of metals used in the devices has skyrocketed.

According to the National Insurance Crime Bureau, claims for catalytic converter thefts grew from 3,389 in 2019 to 14,433 in 2020 and continued to rise during the pandemic. One insurer, State Farm, reported that in just the first half of 2022, it had received more than 23,000 catalytic converter theft claims nationally.

It’s certainly been happening locally. In August, for instance, over two dozen catalytic converters were cut and stolen from trucks parked at a water distribution business in the Norton Commerce Center.

Catalytic converters contain precious metals such as platinum or rhodium. Due to the steep increase in the cost of precious metals, the average scrap price for catalytic converters has soared to over $2,000. And it’s relatively easy for criminals to pull off thefts; police say the part can be stolen in less than one minute.

The law, which has been enacted in at least 10 other states, aims to “protect (car owners’) vehicles and their pocketbooks,” Howitt said. The device can cost as much as $3,500 to replace, and many insurance companies only pay if the owner has comprehensive coverage

The Legislature thought enough of the need for the bill that it approved the measure unanimously and attached an emergency preamble, meaning it takes effect immediately.

Howitt deserves a tip of the cap for his persistence on the bill. As he said last week after Baker signed the measure, “It was long overdue.”

HUDSON Tuck’s Trucks Honored

Late last year, Tuck’s Trucks and owner Jim Boyle, former MSADA president, were honored as a 25-year member of the GMC family. Pictured with Mr. Boyle is GM zone manager Jeffrey Wormald.

McGovern Auto Buys York Ford

The McGovern Auto Group announced in December its acquisition of York Ford on Route 1 in Saugus. The dealership will be significantly modernized and expanded soon after re-opening as McGovern Ford Route 1.

The new McGovern Ford Route 1 dealership will be led by General Manager Alex Avaneseu, a McGovern Auto Group veteran who previously served as General Sales Manager at the McGovern Honda location in Everett. The location plans to retain its existing workforce while also adding up to 15 new team members across its sales, leasing, and servicing divisions in coming months.

Founded in 2016, McGovern Auto Group now has annual revenues of almost $2 billion, employs over 1,200 staff, and sells over 30,000 vehicles per year nationwide.

“York Ford has a well-deserved reputation for serving motorists from across the North Shore region, and we’re proud to carry that legacy forward,” said Avaneseu. “In coming months we’ll be creating jobs and bringing economic opportunities to the community, while rolling out the modern customer experience and great deals that motorists expect from the McGovern brand.”

SAUGUS

Be Wary of New Franchise Agreements

By Tom Vangel & James Radke

Murtha Cullina LLP

Manufacturers have begun to embark on a new mission to require their franchisees to sign “new and (not so) improved” franchise agreements. Toyota rolled out its new franchise agreement in September, informing dealers that “it has been over 30 years since the Dealer Agreement has been updated, and many changes and advancements have occurred in the intervening decades which merited the development of an updated Dealer Agreement.” Toyota claims that its new Dealer Agreement is just “an update” that modernizes the fundamental agreement and that the changes to the Agreement are mutually beneficial to Toyota and the dealer. However, in reality, the Dealer Agreement has been substantially overhauled with many changes that are not mutually beneficial.

One such change that is clearly not beneficial to dealers is the addition of a new provision stating that, in all activities of the Dealership, “Dealer agrees to comply with all directives, policies, procedures, standards, manuals, and guidelines established and/or amended by Distributor from time to time.” In other words, Toyota wants to be able to move the goal posts at any given point in time with respect to virtually every aspect of the parties’ relationship.

Other, more subtle changes in the new Dealer Agreement demonstrate the numerous ways in which Toyota is attempting to increase its control over its dealers’ businesses. Among other things, the Dealer Agreement purports to allow Toyota to

appoint new dealers, relocate dealers, or adjust dealers’ Primary Market Area “as it reasonably determines is necessary.” The new Dealer Agreement also permits Toyota to inspect its dealers’ facilities and to audit digital and non-digital records “in its sole discretion and for any reason whatsoever.” These are just a few of the material changes that should be a serious concern to Toyota dealers and non-Toyota dealers alike, as other manufacturers will likely follow suit.

With very few contractual protections in the so called “mutually beneficial” Dealer Agreement, Dealers must resort to the state law protections found in the Dealers Bill of Rights, codified in Massachusetts General Laws Chapter 93B. Specifically, Chapter 93B, Section 5(a) provides in pertinent part that a manufacturer may not without good cause: (1) fail to extend or renew the Dealer Agreement; or (2) condition such extension or renewal by substantially changing the sales and service obligations, capital requirements, or facilities requirement of the Dealer; or (3) amend, add, or delete any other material term or condition in the Dealer Agreement.

Curiously, at a time when factories are still not able to provide pre-pandemic levels of inventory to their dealers, several manufacturers have been aggressively attempting to coerce dealers to build new facilities that comply with latest - but often not the greatest - branding and imaging programs. This is even occurring in situations where Dealers have already invested millions of dollars in new facilities within the past five to ten years at the request - and with the full approval - of the factories. Currently, the sky-high costs of constructing or renovating a dealership facility, along with the inability to purchase reasonably priced automotive sites in most of Massachusetts, make it virtually impossible for a dealer in this predicament to justify the expense. Nevertheless, some manufacturers are re-

fusing to renew or extend dealers’ franchise agreements unless dealers commit to constructing such facility upgrades, arguably in violation of the Chapter 93B provision cited above.

As most Massachusetts dealers know, regardless of existing or new provisions the manufacturers may add to their franchise agreements, Chapter 93B also protects them from the factories’ unilateral appointment of new dealers in their relevant market areas and puts reasonable limits on the factories’ audit rights. Specifically, Chapter 93B, Section 6(e) requires a manufacturer or distributor to provide advanced notice of its intention to appoint a new dealer or relocate a dealer into an existing dealer’s relevant market area and permits the existing dealer to protest whether “good cause” exists for such an appointment. In any protest proceeding, it is the manufacturer’s burden to prove that “good cause” exists for the appointment or relocation under numerous factors identified in the statute. With respect to audits, Chapter 93B, Section 9(c) limits audits to claims that have been made by the dealer “for warranty service, parts recall service, and sales incentive, bonus, or other claims relating to the sale of new motor vehicles or services, for 1 year after the date on which a claim is paid or the end of any program period, whichever is later.”

Massachusetts dealers are fortunate to have one of the most protective state laws in the nation. Nonetheless, as new dealer agreements and demands for facilities upgrades demonstrate, the factories continue to attempt to shift costs and risks and to generally impose their will onto dealers. Dealers must be vigilant in protecting their rights in the face of these dramatic changes. t

Tom Vangel and Jamie Radke are partners with the law firm Murtha Cullina LLP in Boston who specialize in automotive law. They can be reached at 617-457-4072.

Patrick Manzi NADA Senior Economist Boyi Xu Economist

New light-vehicle sales in November 2022 increased year over year but were down slightly from the month before. November’s SAAR of 14.1 million units was up 7.9% compared with November 2021 but down 6.5% compared with October 2022. According to Wards Intelligence, vehicle availability continued to improve, with

inventory on the ground and in transit reaching 1.65 million units in November, up 57% year over year and up 6.9% from October. We expect inventory at the end of the year will be roughly flat compared with the end of November’s total.

New Year Brings Familiar Challenges from Capitol Hill

By Cody Lusk AIADA President & CEO

The past year was marked by both unprecedented challenges and opportunities for international nameplate franchised automobile dealers. In a post-pandemic world, retailers welcomed customers back even while struggling to staff their stores, continued to battle supply chain shortages, and saw increased turmoil from Washington, D.C., as a closely divided Congress haggled over issues large and small.

In true dealer fashion, AIADA’s members took these challenges in stride, and they are ending the year tougher, stronger, and fully prepared for whatever 2023 holds. As we look ahead, I also want to take account of what AIADA and its members accomplished in 2022 as we worked with, and around, our friends on Capitol Hill.

One of the most startling moments of the year, at least for political junkies like myself, took place in August when, after months of behind-the-scenes negotiations, Democrats unexpectedly announced a legislative deal on climate and health provisions they called the Inflation Reduction Act. The act, which quickly passed along party lines and was signed into law, included a new Clean Vehicle Tax Credit, which fortunately did not include the union-built requirement AIADA had vigorously opposed. However, the stringent new rules determining consumer and vehicle eligibility for the credit brought new concerns for the international nameplate industry.

The new $7,500 credit only applies to vehicles with final assembly in North America and also sets strict new limitations on the origin of critical minerals and components of a vehicle’s battery as well as caps on consumer incomes and vehicle MSRPs. To be eligible for the credit, consumers must have an adjusted gross income of less than $300,000 for joint filers, $225,000 for heads of household, and $150,000 for individuals, while vehicle MSRPs cannot exceed $80,000 for trucks, SUVs, and vans, or $55,000 for other vehicles, such as sedans.

Following the passage of the Inflation Reduction Act, and in response to these burdensome restrictions, Sen. Raphael Warnock (D-GA) and Reps. Terri Sewell (D-AL), Eric Swalwell (D-CA), Emmanuel Cleaver (D-MO), and Jimmy Gomez (D-CA) introduced the Affordable Electric Vehicles for America Act to address some of the concerns of the international nameplate auto industry and allow for additional time to meet the new requirements. The bill would give automakers until 2026 to meet the North American assembly requirement and until 2025 before the battery sourcing requirements go into effect.

AIADA is working to ensure that the new clean vehicle tax credit will apply to as many clean vehicles sold in the U.S. as possible, and we submitted comments to the Department of Treasury to encourage fair implementation of the new law.

While electric vehicle tax credits may be grabbing the most headlines in 2023, AIADA is also working with NADA to address regulatory overreach from the Federal Trade Commission (FTC). Over the Summer, the FTC issued a new proposed rule, the Motor Vehicle Dealers Trade Regulation, which covers an extremely wide variety of business operations including advertising regulatory standards, vast disclosure enhancements,

and additional record keeping. Compliance with the proposed rule would severely complicate and lengthen the car-buying process for consumers. Currently, AIADA is working to combat this overreach and protect both dealers and their customers from unnecessary government involvement in auto sales.

AIADA is also keeping a close eye on a number of other issues, including Right to Repair legislation, policies to alleviate supply chain shortages and chip production, arbitration, the Death Tax, and, of course, trade agreements. AIADA was founded more than 50 years ago with trade as our driving mission. We continue to support free trade and the signing of new trade agreements and will fight to create, maintain, and preserve a free market for international nameplate automobiles in the United States.

In 2023, we will be closely monitoring our trade relationships with America’s allies, some of which have been unduly strained by the passage of the Inflation Reduction Act and the current absence of presidential Trade Promotion Authority which allows presidents to negotiate trade agreements and send them to Congress for an up or down vote with no amendments. Talks initiated during the Trump Administration with both the U.K. and E.U. on unilateral agreements have seen little progress.

As you can see, AIADA and the international nameplate industry as a whole will have their hands full in 2023. There is no shortage of issues that require our attention and involvement, and no shortage of opportunities for Washington bureaucrats to complicate and confuse the retail process. No matter what the future holds, rest assured that AIADA will be working on your behalf in Washington, D.C., in the new year and for many years to come.

By Scott McCandless

Chairman, American Truck Dealers

Scott MccandleSS iS preSident of MccandleSS truck center in aurora, colorado, and a truck induStry veteran with 40 pluS yearS of experience

2022 in Review tru CK

ATD made tremendous strides in 2022. Our team is proud to take stock of the many accomplishments that have served our members and our great commercial truck industry. I had the privilege of becoming ATD Chair during a unique time in our association. For the first time in our history, we have an ATD President at the helm; we are seeing the highest membership count ever; and we are doing more to equip truck dealers with the tools and resources they need to meet the demands of a changing business landscape.

Since April 2022, ATD President Laura Perrotta has served alongside me. With the combined leadership of the ATD line representatives, we ushered in a new era of engagement and outreach. In the Fall, I proposed a resolution to the NADA Executive Committee to increase ATD board representation in 2023 by four seats to include every major medium- and heavy-duty brand. Gaining more seats on the ATD Board will allow us to increase our impact on important truck dealer issues and priorities. This step perfectly aligns with our strategic planning efforts.

We are currently engaged in new strategic planning that will result in a three-year Operational Plan and a three-year ATD Show Plan. Our planning process has incorporated both executive and membership input to ensure our approach is through multiple lenses. We are close to finalizing the plans thanks to hard work across the board, and we look forward to launching both at the end of January 2023.

Outreach has been a top priority during my term. Throughout the year, ATD has made a concerted effort to increase member outreach. Since beginning her role as ATD President, Laura Perrotta has personally called 57 dealers since April. She has gathered feedback about how ATD can be most helpful going forward. She, along with ATD executives, visited seven truck dealerships and met with their teams, toured their facilities, and found out how ATD can best serve them. ATD is also building stronger relationships with OEMs, suppliers, and outside industry stakeholders. This year our staff delivered five industry presentations across the country on truck dealer priorities, and we will continue this work into the new year.

Our success is reflected by our membership rates. I am proud to announce we currently have the highest member count since 2016: over 1,800 members, a five-year high in ATD’s membership. Our members are receiving more educational tools and communication than ever before. ATD 20 Group participation is at

a record high; the ATD Academy is seeing high student enrollment across all classes; and the first commercial truck-specific live online seminar was launched for truck service advisors this year. This year, ATD Academy proudly graduated 41 full-time students.

We also began “Member Spotlights,” which are featured in the weekly ATD Insider. These spotlights highlight the good things our truck dealers are doing around the nation. If you have a story about a new location or charitable event that you are leading in your community, please send it to ATD so we can acknowledge you in future articles.

I want to thank dealer leaders for making your voices heard throughout the year. In June, ATD hosted our annual Legislative Fly-In in Washington, D.C. It was a tremendous success with 35 dealers and Automotive Trade Association Executives from 18 states in attendance. Their efforts resulted in over 75 congressional meetings on our most pressing legislative issues.

Our hands are full on the legislative front. ATD’s top priority will be continuing to push back on the EPA’s NOx rulemaking, which will lead to tens of thousands of dollars added to the cost of a new truck and create reliability issues; opposing the REPAIR (“right to repair”) Act which has little to do with repairing a vehicle and raises major data and privacy concerns; and building support for enactment of catalytic converter theft legislation.

FET repeal continues to be a top priority. For the first time, bipartisan Senate and House FET bills were introduced in Congress. We will continue to advocate that a 12% tax that was created to fund the U.S. effort in World War I no longer has a place in our business in 2023.

There is no slowing down. We have already begun planning the inaugural ATD Truck Industry Forum and Legislative Fly-in, which will take place June 2021, 2023. The ATD Forum in June will feature key business leaders and policy experts who will offer their views on the challenges and opportunities facing the truck industry. Panel discussions will focus on the economy, the future of electrification, and regulatory impacts to your business. We will also host several members of Congress and discuss the issues affecting our daily operations.

We have accomplished so much together in 2022! On behalf of ATD, we look forward to achieving even bigger things this year. Stay tuned.

A New Year, A New Deadline

June 2023 will be here before you know it.

tension, you should also continue your efforts to expeditiously comply with the new requirements of the Rule. June 2023 will be here before you know it.

Scott Dube, Partner at McGovern HyunDai rt. 93, rePreSentS naDa’S MaSSacHuSettS MeMberS on tHe naDa boarD of DirectorS. He can be reacHeD at SDube@ McGovernauto coM

Recently the staff at NADA shared some very positive news that will greatly help all dealers comply with an important but complicated policy change. On November 15, 2022, the Federal Trade Commission (FTC) announced that it extended the deadline for financial institutions to fully comply with many of the requirements of the FTC’s Amended Safeguards Rule. There are pieces of the Rule for which dealers must still comply by last December 9. Dealers will now have until June 9 to ensure they are fully compliant with the new rule.

While you have been working hard to ensure compliance with the Safeguards Rule by the December deadline, NADA did not stop working on your behalf. NADA, along with our colleagues at several other trade associations, made one final request to the FTC for an extension of the stringent compliance requirements.

To assist us with compliance, NADA has created a onestop landing page for all NADA Safeguards Rule resources. You can find a number of various resources at www.nada. org/safeguardsrule, including webinars, guides, workshops, FAQs, and more.

We also encourage you to meet with vendors, OEMs, and others at the upcoming NADA Show about Safeguards compliance.

For more information on the FTC Safeguards Rule, go to www.nada.org and check back often for updates.

Counting Down to the NADA Show

We are counting down the top five reasons dealers should attend — and send their staff to the Auto Industry of the Year, NADA Show 2023 in Dallas from January 26-29. Register today!

No. 5: Education

Learn the latest strategies and emerging trends from NADA subject matter experts, top industry specialists, and your peers. Education is organized by the dealership department to deliver targeted material to those who will benefit most.

No. 4: Expo

The auto industry’s premier marketplace, with more than 500 companies offering thousands of products, solutions, and services. Engage with current providers and shop for new suppliers. Whatever your dealership needs, you will find it here.

No.

3: Franchise Meetings

NADA moderates meetings between the folks who sell cars and the companies that make them. Each brand has its own dedicated event. You can find the entire schedule on the NADA App or at NADAShow.org

No. 2: Kickoff Reception

The latest effort was just one of the many advocacy touch points that our team at NADA made with the FTC following the initial announcement of proposed rulemaking in the Fall of 2019. This extension would not be possible without your input and the work from our team at NADA.

The deadline extension is welcome, but I strongly encourage you not to wait. The requirements of the amended Rule are complicated, and they take time to achieve. While you should consult with your attorneys, service providers, and IT professionals about the potential impact of this deadline ex-

NADA Show 2023 will roll out with a welcome kickoff reception at Gilley’s, the world-famous Honky Tonk in Dallas! Experience the fun and excitement of a roundup, capped off with a musical performance by Grammy Award-winning country music superstar Brad Paisley. No. 1: It is going to be electric!

Visit the EV Solutions Center to get all your answers on charging stations and more.

NADA Show is where the industry meets to get inspired, to learn about what is new, and to hear from experts in the industry. Come discover what is driving the auto industry today!

“The requirements of the amended Rule are complicated, and they take time to achieve.”