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Montana Automobile Dealers Association FEBRUARY 2017 NEWS BULLETIN

Montana Automobile February News and Updates Dealers Association As I write this article and review my calendar, I would like to mention several events your MTADA is planning for you. First of all, Kelsey is developing the MTADA Automotive Industry Technician Career Pathway Program. The Association is working with the Department of Labor and Industry and Montana High Schools and Colleges to develop this technician program. There were five meeting held throughout the state to collect ideas and answer questions regarding this important program. Meetings were held throughout February in Havre, Helena, Butte, Miles City, and Billings. Please feel free to contact Kelsey at the Association office for more information. Secondly, the Next Generation meeting will be held March 6-7 at Chico Hot Springs. Kelsey has put together a great program for those attending. Topics will include new car franchise regulations, dealer’s reinsurance program, dealership compliance, and social media marketing. It is going to be an excellence meeting so please plan to attend.

Finally, I would like to report on two important bills the legislative committee and Bruce have been working on. SB89-Wrongful Termination has been heard in the Senate Labor and Business Chuck Notbohm Committee and sent to the Senate MTADA President floor passing by a unanimous vote of 49 – 0 in favor of the bill. From there it goes to the House Labor and Business Committee. Thank you to Don K, Brad Mildenberger, Robbie Dee and Bruce for testifying. SB-108Right of First Refusal was heard in the Senate Labor and Business Committee. A vote was done in executive session. The results of that bill is forthcoming. Thank you to Don K, Bill Underriner, Jim Sewell, and Bruce for testifying. If you are interested in listening to the testimony on both bills, contact the association office for the links to the committee recording. As you see the MTADA has been very busy on our behalf. Talk to you again next month. n

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Director’s Message

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Chairman’s Message

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Legal Update

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February Trivia

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Make March Madness Matter

p9 and more!

Montana Automobile Dealers Association • 501 North Sanders • Helena Montana • 406.442.1233


Montana Automobile Dealers Association Montana Automobile Dealers Association

DIRECTOR’S MESSAGE:

Trump to CEOs: ‘Real Jobs’ Have to Come Back to U.S. Washington — President Donald Trump met Thursday with his manufacturing board of 24 CEOs from American companies in Washington, including Ford Motor Co. CEO Mark Fields, Dow Chemical Co. CEO Andrew Liveris and Whirlpool CEO Jeff Fettig. Trump said at the start of the meeting with the executives, which was broadcast live on the White House’s Facebook page, that he is moving to increase domestic manufacturing as part of his campaign pledge to boost the U.S. economy. “Bringing manufacturing back to America, creating highwage jobs was one of our campaign promises and themes, and it resonated with everybody,” he said. “I’m delivering on everything that I said. In fact, people are saying they’ve never seen so much happen in 30 days of a presidency. We’ve delivered on a lot.” Trump spotlighted Ford, Fiat Chrysler Automobiles, General Motors Co., Wal-Mart, Carrier, Amazon and Intel as companies who had moved to bring jobs back to the U.S. since his election, among others. “Mark has been great,” he said referring to Ford’s Fields. “Fiat, they came the other day. They’re going to make a tremendous investment in the country.

“Ford is doing $700 million in Michigan, creating 700 new jobs as a vote of confidence,” Trump added. “It was actually stated a vote of confidence. We have many other companies doing the same thing ... General Motors is investing $1 billion in U.S. plants, adding or keeping 7,000 Don Kaltschmidt NADA Director jobs and is going to be investing a lot more than that over the next fairly short period.” Trump reiterated his campaign promise to renegotiate trade deals that he says have hampered the U.S. economy like the North American Free Trade Agreement, or NAFTA, which was enacted in 1994 to create a free-trade zone between the U.S., Mexico and Canada. As a candidate, Trump seized upon discontent with NAFTA, which eliminated tariffs on most goods produced in North America. The trade deal has been blamed for auto companies moving production of smaller cars to Mexico. Continued on PAGE 8

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FEBRUARY 2017 MTADA NEWS BULLETIN


Montana Automobile Dealers Association Montana Automobile Dealers Association

CHAIRMAN’S MESSAGE:

Every Dealer Should Have Concerns About a Border Adjustment Tax As all of you know, there’s been a lot of consternation in Washington, D.C., lately over the issue of the border adjustment tax, or “BAT.” Groups representing a number of businesses and different industries have all voiced serious concerns about the potential for a BAT to lead to higher costs for a wide range of good and services – costs that could ultimately get passed down to American consumers. Dealers have been front and center on these efforts. In December, NADA joined dozens of other business groups in sending a letter to the Chairman and Ranking Member of the House Ways and Means Committee voicing our concerns about the BAT provision that was included in the House Tax Reform Blueprint, and warning that “companies that rely on global supply chains would face huge business challenges caused by increased taxes and increased cost of goods, which would in turn likely result in reductions in employment, reduced capital investments and higher prices for consumers.” That letter was just one part of a much larger effort we’ve undertaken to communicate to policymakers the seriousness of this issue, and to convey clearly that we would have real problems with any proposal that threatened vehicle affordability or otherwise translated into higher costs for our customers.

(whether from Korea, Japan, Germany, Mexico or Canada). If imported auto parts included in domestically Mark N. Scarpelli 2017 NADA Chairman assembled vehicles are also subject to border taxes or tariffs, it could mean higher prices even for vehicles built in America. After all, even the most American-made vehicle – the Toyota Camry – contains only 75% American-made parts. Quite clearly, this is an issue for every dealer, because it could affect the vehicle affordability problem already confronting the vast majority of our customers. NADA’s position on any legislative or regulatory proposal that impacts the auto industry is straightforward: We are – and will always be – on the side of maintaining affordability for our customers. In our advocacy to policymakers in Washington, D.C., our objective is just as clear: We explain how proposed policies will affect our customers’ ability find affordable transportation. Continued on PAGE 13

We have the very same concerns today that we had in December. In fact, if anything our concerns have grown given that President Trump has since indicated that he will release his own tax reform measure sometime this spring, which may or may not have provisions that favor American exports over imports. A BAT or – as President Trump has suggested – an import tariff could lead to: 1) higher costs for imported vehicles; and 2) higher costs for vehicle components CLICK FOR MORE INFO: https://www.afasinc.com/MicroSites/MTADA/

FEBRUARY 2017 MTADA NEWS BULLETIN

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Montana Automobile Dealers Association Montana Automobile Dealers Association

DON’T MISS THE BOAT!

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FEBRUARY 2017 MTADA NEWS BULLETIN


Montana Automobile Dealers Association Montana Automobile Dealers Association

LEGAL UPDATE

The Data “Breach” That Wasn’t (Published in The Banks Report, by Cliff Banks)

February 20, 2017 — The industry had a scare last Thursday when it appeared that a large data breach occurred involving several dealer management system (DMS) providers and dealer groups. What actually happened was much more benign, and involved none of the DMS vendors. Nor did the event involve any sensitive personal data. The fallout, however, could be far-reaching. Below are the facts that TBR has been able to put together after seeing the evidence along with several conversations with many of the affected players. THE EMAIL - Last Thursday afternoon (February 16) someone sent an email to dealer executives, DMS vendor executives and an industry consultant claiming to have used a team of hackers to obtain millions of CRM records from the Dealertrack, CDK and Reynold and Reynolds systems. The email was made to look like it had come from a team of hackers well-known to people playing in that world. It was also sent using an email server connected to Tor, which is software designed to allow anonymous communication on the Internet, and commonly used by the hacker community.

THE DATA - A key point is that none of the data came from the DMS R. J. “Jim” Sewell, Jr. provider systems. Even though three MTADA General Counsel of the providers were mentioned in the email, none of their systems were breached or affected in any way. A second key point is that none of the data is considered to be sensitive PII (personal identifiable information) in most states. The data did not include any encrypted information or data such as social security numbers; financial data; birthdays or anything else that would be deemed sensitive. (A caveat here: I’m not an attorney or an expert in cyber protection or cyber law. My assessment is based on research and what several of the affected companies have relayed to me). The email also included six URLs to what is known as a paste bin site, used to upload and share text files. Each URL contained text data with customer information from six different dealer groups that the email named. (We’re not naming the six dealer groups to protect them from further unnecessary pain or scrutiny). Each file included only 5,000 customer Continued on PAGE 12

FEBRUARY 2017 MTADA NEWS BULLETIN

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Montana Automobile Dealers Association Montana Automobile Dealers Association

NEXTGEN MEETING DETAILS

Next Generation Dealers Meeting Agenda March 6-7, 2017 – Chico Hot Springs

Monday, March 6th 5:30 PM: Meet at Chico Hot Springs Townsend Room for Welcome Reception and Dinner

Tuesday, March 7th 9AM-10AM: LAUREN BAILEY NADA Regulatory Affairs Lauren will speak about the new Trump Administration and what it means for regulations affecting franchised new car dealers. The election of President Donald Trump has ushered in changes for a wide range of federal laws and regulations. Dealers will be made aware of these changes and the new “sheriffs” in charge in the federal government and their new agendas.

automotive industry. He joined First Extended in 1999 after spending 14 successful years in the retail segment. From single point family dealerships to multi location mega dealerships, Luckett has extensive retail management John Luckett experience in every phase of variable and fixed operations. Starting out as a Regional Sales Manager at First Extended, he quickly moved up the ranks holding senior level positions not only with First Extended, but also with Resource Dealer Group. Luckett is currently responsible for overseeing Resource Agent Group/ First Extended. He is the winner of several sales awards, sits on multiple industry advisory boards, and is an active participant on many industry event panel discussions.

11AM- 12PM: MAX ZANAN President of Total Dealer Compliance Zanan was a member of the panel at the most recent 10-11 AM: JOHN LUCKETT compliance summit in Las Vegas and is an expert on Senior Vice President Sales & Marketing dealership compliance. Zanan will give an overview of The Warranty Group—Resource Agent Group/ compliance and its importance to the day-to-day operations. First Extended Zanan will discuss the following: Luckett is an expert on dealer’s re-insurance and he will Why dealers make great targets discuss how to create solutions that will improve your for Federal and State regulators, dealership’s bottom line. Luckett is a 31-year veteran of the Lack of proper complaint resolution procedures triggers investigations, deceptive Max Zanan advertising, used car violations, payment packing, disparate impact and F&I products, along with ways to protect ADS of Montana is the State’s leading provider your dealership and improve customer of F&I training and products. satisfaction through effective compliance We specialize in our State of the Art training concept through our training. Team One approach.

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FEBRUARY 2017 MTADA NEWS BULLETIN


Montana Automobile Dealers Association

NEXTGEN MEETING DETAILS

Montana Automobile Dealers Association

12:00-12:30 LUNCH 12:30-1:00: MTADA LEGISLATIVE GOALS, UPCOMING EVENTS, AND ANNOUNCEMENTS 1:00-2:30: BRAD OULDHOUSE Social Media For Businesses Brad Ouldhouse is a social media marketing strategist. In 2015, he founded Imaginbound Media, LLC, a social media marketing agency focusing specifically on small businesses in Montana to grow their bottom lines through the use of social networks like Facebook, Instagram, Twitter, Snapchat and many others.

Check in, even when you’re out.

Brad Ouldhouse

Brad will be speaking about one idea: How to transform your business into it’s own media company using social media. He will talk about each social networks strength, how they can be leveraged to tell stories, and ultimately be used as customer service tools. If you are running a business, these are actionable tactical strategies you can use right away to make an impact on your income! Bring your social media questions for the Q&A session, where you’ll receive the most value for your time spent!

As the only High Tech, High Touch DMS provider, Dealertrack operates in the cloud, enabling users to access key dealership metrics from any location on any device. Call 888.645.4058 or visit go.Dealertrack.com/DMSAnytime.

Follow Brad everywhere on ‘the socials’ as NextGenBizMan or check out www.imaginboundmedia. com 2:30- Closing Remarks

FEBRUARY 2017 MTADA NEWS BULLETIN

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Montana Automobile Dealers Association Montana Automobile Dealers Association

Director’s Message

December Trivia Contest

CONTINUED FROM PAGE 1

Trump said trade deficits with Mexico and China are unsustainable for the U.S. economy. “With Mexico, we have $70 billion in trade deficits,” he said. “It’s unsustainable and we’re not going to let it happen. We can’t let it happen. We’re going to have a good relationship with Mexico, I hope. And if we don’t, we don’t, but we can’t let that happen. “With China we have close to a $500 billion trade deficit. So we have to do something... I actually said to my people, ‘Find a country where we actually do well.’ So far we haven’t found that country. It’s just losses with everybody, and we’re going to turn that around.” As Field left the White House on Thursday, he said the meeting with Trump was “productive.” Ford spokeswoman Christin Baker said in an email, “Mark participated in the working group on tax, and he is very encouraged the administration has placed such a high priority on tax reform.” Dow Chemical’s Liveris added during an interview with Fox Business Network’s Neil Cavuto that the meeting with Trump was “very constructive.” He said Trump was “very engaged, very business-oriented, very open to new ideas. “We’re getting along absolutely very well,” he said. “When I was asked to this, clearly what the president has is this ability to move forward. He doesn’t look back. He looks at what’s possible. And obviously he’s got this amazing opportunity to get many of us engaged, whether we we were friend or foe, for or against, doesn’t matter. That’s all in the rear-view mirror.” Trump promised the CEOs who were gathered at the White House on Thursday that he will continue to try to boost U.S. manufacturing during his tenure. “Some of the things that we’re doing for the auto industry, we’re going to be doing for many of the industries,” he said. “My administration’s policies, regulatory reform, tax reform, trade policies will return significant manufacturing jobs to our country,” Trump continued. “Everything is going to be based on bringing our jobs back, the good jobs. The real jobs. They’ve left and they’re coming back. They have to come back.” n

Win a $20 Gift Card and a Chance to Win 4 Tickets to the Cat-Griz Game

The answer to last month’s trivia question “One of Montana’s many nicknames is “The Treasure State”, due to the large amounts of gold and silver that were mined there. But Yogo Gulch, in the Little Belt Mountains, is famous for producing another type of treasure, a gemstone that has long been identified with Montana. What gem is this?” was Susan Schloss with Denny Menholt Auto Group with the answer “Yogo Sapphire”. January Trivia Question Who was the first governor of the STATE of Montana? Submit your answers to kwandke@mtada. All correct responses to this month’s trivia question will be put in a drawing for a $20 Amazon Gift Card. The winners of the monthly trivia questions will be put in the drawing for the grand prize, four tickets to the Cat-Griz Game!! Good Luck!

Source: Keith Laing, Detroit News Washington Bureau

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FEBRUARY 2017 MTADA NEWS BULLETIN


Montana Automobile Dealers Association

Make March Madness Matter

Montana Automobile Dealers Association

It seems like we just made it through the over-indulgent holiday gatherings, the gluttonous Super Bowl parties, and the sweet treats involved with Valentine’s Day. That’s why it’s hard to believe it’s already March Madness season. Yes, it’s hard to deny the temptations of pizza, nachos, and various other yummy foods that come with watching the games this time of year. By Gillette Vaira, M.A.

Every season – and almost every month – has an opportunity that allows us to overdo it in the food Communications Manager department and not get enough exercise. We could always have an excuse for why we didn’t keep off EBMS, INC. the pounds; every season has a reason. So, use March Madness as a practice round to help yourself gain momentum to make it through the next temptations around the corner.

Create Activity Go for a pre-game walk with your buddies. Do five pushups for every commercial that airs. Dedicate yourself to doing squats or jumping jacks throughout the game. Get in a couple of sets of stairs during halftime. Your fitness tracker – and your body – will thank you. Stick to Healthy Foods Fill up on a healthy meal before you arrive for your friends’ March Madness festivities. Or, bring a healthy snack to the get-together so you have something to enjoy while the others dive into the calorie-seeping appetizers. You could also promise yourself that you’ll just have one food out of the counter full of options – and keep that promise. You won’t regret limiting yourself on the extras. You can make March Madness work for you. By keeping up with your workouts and healthy eating, you can skip the March Madness pounds and stay on track with your health goals. n

Educating Your Members Begins with You The Montana Automobile Dealers Association has partnered with EBMS to provide you and your employees with a variety of resources to keep you physically and financially well on your journeys. So pass it on! Consider sharing this information with your employees so you can empower them to be their healthiest selves. After all, a healthy workforce means a healthy business.

CLICK FOR MORE INFO: https://www.afasinc.com/Training/FIUniversity/

FEBRUARY 2017 MTADA NEWS BULLETIN

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Montana Automobile Dealers Association Montana Automobile Dealers Association

Essentials of Pre-Owned Vehicle Sales Management April 24 & 25, 2017 Holiday Inn Express, Helena MT: 3170 N Sanders St, Helena, MT 59602. Reference the MTADA to get the special Group Rate Before March 5th. Target Audience: All Pre-Owned Department Managers within the Retailer environment Course Objective This 2-day course helps as our clientele is becoming more demanding and with the ever-increasing pre-owned profit expectations, is course is a must for the modern pre-owned manager. Participants are guided through the process of leveraging what they learn by creating a “Guarantee of Action” plan that they complete during the course. The initial implementation of this “Guarantee of Action” occurs when they return to their dealership upon dealer approval. Day 1: a.m. - KPIs 1. Responsibilities of the Pre-Owned Vehicle Manager 2. Pre-Owned Financial Metrics – Understanding your inventory’s makeup and ROI 3. Key Performance Indicators – Departmental Basics Day 1: p.m. – The Deal 4. Pre-Owned Strategy 5. Sales Staff Management 6. Ways to Sell Pre-Owned 7. The Appraisal Process 8. CRM – Customer Relationship Management Day 2: a.m. - Inventory 9. Key Performance Indicators – Department Basics Phase 10. Categories of Inventory 11. Sourcing – Auction, Wholesalers, Trades, Service Lane 12. Appraisal Process & Best Practices 13. Lease Pull-Ahead End of Lease Processing (EOL) 14. Certified Pre-Owned 15. Trade Walk – Inventory Walk Day 2: p.m. - Inventory 16. Pre-Owned Vehicle Reconditioning 17. Developing and Executing Your Retail Pricing Policy 18. Vehicle Presentation – On Lot 19. Digital Marketing 20. On-Line Presentation 21. Digital Marketing Your Pre-Owned Vehicle Department Course Length – 2 Days *A “What to Bring” document will be forwarded to all participants so they may learn from, and better understand their own dealerships unique metrics. *This Class Will Be Offered to Neighboring States- Reserve Your Spot ASAP!* The first participant is $699, second is $499 and the third is $200. They have to be from the same dealership. If you’re interested in Attending: Call Kelsey at 406-422-1233 or Email at kwandke@mtada.com n

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FEBRUARY 2017 MTADA NEWS BULLETIN


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Montana Automobile Dealers Association Montana Automobile Dealers Association

Legal Update

CONTINUED FROM PAGE 5

records with different variations of name, phone number, email address, home address, date of last service visit and the vehicle serviced. The URLs are no longer active nor is the data accessible. THE “BREACH” - So what happened? First, it was not a breach and does meet the threshold of what the government calls a “reportable breach.” It turned out to be a clumsy and amateur attempt to sabotage ELEAD1ONE. The evidence points to an ELead employee who re-accessed previous legitimate searches made by dealership personnel using a low-level application called “Advanced Search” to extract the data. The search tool is available to most dealership personnel who use the ELead CRM. A few days after extracting the data, the employee resigned. Furthermore, the application has no access to encrypted data or PII data. In addition to the six dealerships whose data was uploaded to the paste bin site, ELead determined the perpetrator also pulled data from another 25 dealerships — 5,000 records each, or a total of 155,000 records (for all 31 stores) which were not uploaded to the Web. Later this week, ELead likely will present its evidence to the authorities and press charges against the former employee. THE FALLOUT - Except for the threatening email, this incident should have been a non-event. Every industry has data files like these floating around. I’ve seen data files with millions of customer records, some with much more sensitive information than the ones stemming from this event. Data like this gets passed around every day. They get added to, de-duped, cleansed, sold and resold — and it’s common to every industry. Nevertheless, the email sent the affected parties scrambling. Hundreds of thousands of dollars were spent trying to determine whether the threat was legitimate. ELead very quickly started piecing together what happened. Its findings evolved over the weekend as it delved deeper into the investigation, but it was clear there was no threat and that none of the DMS providers had been breached, or were even part of the event. As expected, ELead took the appropriate steps to fix what was, apparently, an isolated incident. CDK and Dealertrack worked with ELead and accepted its findings. Reynolds and Reynolds took a much more aggressive stance, however, shutting down integration between its DMS and the ELead CRM for approximately 1,000 dealerships Thursday evening. Numerous dealerships reported to TBR they learned of the shutdown after the

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fact. As of now, only six of Reynolds’ customers had limited data uploaded to the Web. We understand another five of their customers had data that was also extracted but not uploaded. But it wasn’t data from the Reynolds systems. Furthermore, Reynolds is only involved because of an email threat that turned out to be a hoax and the fact that some of the affected dealers use its DMS. Meanwhile, nearly 1,000 dealerships with no knowledge of what happened, nor were part of the situation, have had to operate with no integration between their CRM and DMS over one of the busiest sales weekends of the year. Discussions between the two companies have been ongoing throughout the weekend and today, but as of the publishing of this report, integration still has yet to be restored. Meanwhile, we’re hearing rumors of possible legal action in the next couple of days. Reynolds’s position seems to be that it’s not comfortable that ELead has a complete grasp of the situation. This, despite all of the evidence up to this point, showing there never was a threat to either Reynolds or the other DMS vendors. In a statement emailed to TBR, Reynolds says: “We are aware of a claim that certain files from a third party CRM vendor – eLead – may have been accessed without authorization. The potential unauthorized access may have included dealership and customer information. However, we have seen no evidence that any unauthorized party accessed the Reynolds system. As a result – and out of an abundance of caution – we have temporarily suspended the exchange of data between a Reynolds DMS and eLead. We are working with eLead – and will continue to work with them – until the situation is resolved.” Meanwhile, many of ELead’s customers, Dealertrack and CDK, a $2 billion public company with significant legal and financial exposure should a breach occur, seems to believe there never was a threat and is satisfied with the actions ELead has taken. Reynolds’ response seems to escalate what may be a minor blip into a much bigger story that now becomes part of the ongoing saga in the battle of data access in the automotive retail industry. Other than ELead pressing charges against the perpetrator, this should be a closed incident, based on the evidence we’ve seen. The importance of data security in the industry cannot be overstated. And we have to be better, as dealers, as journalists, trainers and vendors, at protecting customer information. And the DMS vendors bear a huge portion of the cost and legal exposure to maintain data security.

FEBRUARY 2017 MTADA NEWS BULLETIN


Montana Automobile Dealers Association But the truth is, situations like ELead found itself in, are going to continue. More vendors and dealers are going to find themselves the victims of malicious actions. It’s the world we live in. Events such as this demand rational responses. But there is little agreement on how to define “rational.” Reynolds often takes the more aggressive stance claiming it has a responsibility to protect both the security of its systems. By doing so, it says it is protecting the security of the data of its dealership customers. But that stance often interferes with the business operations of the dealers it says it is protecting. And sometimes, it appears it uses a sledge hammer when a fly swatter would suffice. Again, this is part of a much bigger story. The industry also has to resolve the issue of how vendors get access to the dealer’s DMS data. It is a problem and it’s one that has plagued the auto retail space for far too long. The battle is growing in intensity as dealers continually find themselves caught in the middle — and often at the most inconvenient times. As we wrote in 2015, this battle is going nuclear. And it will be one of the biggest stories of 2017. And it’s likely going to take several legal battles to sort it out. n

Chairman’s Message

Montana Automobile Dealers Association

CONTINUED FROM PAGE 3

Affordability generates fleet turnover, which drives a big portion of our economy. Our nation can’t afford to adopt any policy that causes demand destruction. We are well aware of the potential for a BAT or border tariff to negatively impact affordability, but quantifying that effect is difficult absent specific legislative language. As of today, no bills have been released by Congress or the Trump Administration, and no hearings have been set. However, the important questions about consumer impact are being raised. Sen. Orrin Hatch (R-Utah), the Chairman of the Senate Finance Committee (the Senate’s tax writing committee), who has taken no position on the BAT, has raised the key questions that must be addressed before proceeding. In recent remarks to the U.S. Chamber of Commerce, he called for “definitive answers” to the following questions: Who is going to pay the incidence of this tax – meaning who will pay the price of the tax? Consumers? Would this new tax structure be consistent with existing trade policies? Which sectors of our economy would be net winners and losers, and then who would be the winners and losers within those sectors? We have the exact same questions. And, frankly, so should everyone. Every dealer, every retailer, every automaker, and every American consumer should be asking the same questions before even considering standing behind this idea. As always, we will apply the affordability test to any proposal – tax, trade, CAFE standards or anything else – that is considered in Congress. And we will ensure that the sponsors of those proposals have applied that same test before we offer any support or opposition. And if a BAT or border tariff is included as part of tax reform, it will be incumbent upon those advocating for it to prove how such a proposal would benefit consumers and ease the affordability problem already facing millions of Americans looking for a new car or truck for their personal transportation needs. We look forward to seeing Congress schedule hearings on all the provisions of comprehensive tax reform once legislation is drafted and introduced. We will certainly use these hearings as an opportunity to drill down on our many questions. And in the meantime, I encourage every dealer to take advantage of opportunities to engage with their members of Congress, either at home in their dealerships or in Washington, and put these questions to them directly. That is what is driving our engagement in Washington. When we ask Members of Congress to view policies through the lens of real customers spending real money, our grassroots engagement is more effective, and the resulting policies are more likely to generate positive economic outcomes for our local, state and national economies. On behalf of each of our 16,500 dealers, you have my assurance that NADA will continue to work with the Trump Administration and Congress to advocate for tax policies that advance our interests, protect our businesses, and enable our consumers to be the driving force behind our success and the success of the U.S. economy. n Source: By Mark Scarpelli, February 2017

FEBRUARY 2017 MTADA NEWS BULLETIN

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Montana Automobile Dealers Association

SEE YOU THERE

Montana Automobile Dealers Association

Register Online Now at www.mtada.com/registration/

103rd Annual Family Convention AUGUST 25-26, 2017

Fairmont Hot Springs Resort | Anaconda, Montana

See the ldest World’s O e! Corvett

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FEBRUARY 2017 MTADA NEWS BULLETIN


Montana Automobile Dealers Association

KICK-OFF MEETINGS FOR THE MTADA CAREER PATHWAYS INITIATIVE

Montana Automobile Dealers Association

MTADA Automotive Industry Technician Career Pathways Initiative This is a great opportunity to have a voice within the industry, present opportunities to Montana’s youth and to mold a curriculum that will develop competent technicians ready to work in your dealership A series of five planning meetings were held in February throughout the state in Havre, Helena, Butte, Miles City, and Billings. There was involvement from state entities, educators, and dealerships across the state. During these meetings, we discussed potential career pathway opportunities and the goals of the program: 1. Promote awareness of career pathways within Montana’s automotive industry; 2. Align high school & college curriculum with MTADA- designed or industry designed workplace competencies; 3. Integrate high quality work based learning experiences within secondary and postsecondary academic programs; and 4. Incentivize and promote participant engagement & progression in MTADA’s career pathways. If you would like more information about the MTADA Automotive Industry Technician Career Pathways Initiative or to get involved, please call Kelsey at 406-442-1233 or email her at kwandke@ mtada.com”

FEBRUARY 2017 MTADA NEWS BULLETIN

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Montana Automobile Dealers Association Montana Automobile Dealers Association

HOW PRESIDENT TRUMP’S EXECUTIVE ORDER AFFECTS YOUR HEALTH PLANS February 2, 2017 To: Re:

Our Valued Clients How President Trump’s Executive Order Affects Your Health Plans

To Our Valued Clients, With the Trump Administration’s recent Executive Order on the Affordable Care Act (ACA) and the news speculating its effect, we are sure many of you have questions regarding its potential impact on the various regulations that apply to employees and their health plans. The Executive Order was followed by a “Memorandum for the heads of Executive Departments and Agencies”. The Executive Order does not repeal the ACA, nor does it make any immediate changes to health plans or health insurance. This memorandum directed agencies to withdraw regulations that have been sent to the Office of the Federal Register, but not yet published, so that they could be further reviewed. For regulations that have been published, agencies are to postpone the effective date for 60 days from January 20, 2017. The following were NOT impacted by the Executive Order: •

ACA information reporting (IRS 1094/1095 C and B Series Forms) due in the upcoming months. These regulations were final.

Requirement that applicable large employers offer affordable, minimum value coverage to full-time employees or face a potential assessment if the employee receives a premium tax credit. These regulations were final.

The ACA is a complex regulatory law, which requires Congress to enact legislation to repeal, defund, delay or otherwise amend the Act. Congress has tried numerous times to repeal the ACA since it was enacted in 2010. On January 11, 2017, both chambers advanced a measure that could repeal parts of the ACA through the budget reconciliation process. This would only affect ACA provisions relating to spending and revenues, such as the individual mandate. This would not change any provisions that impact employer health plans, including requirements to cover dependent children up to age 26, eliminate pre-existing conditions, eliminate annual and lifetime limits, and offer certain preventive care screenings and treatments, among others. EBMS will monitor congressional activities regarding the ACA and update you as new developments occur. Please do not hesitate to contact your account manager with any questions.

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FEBRUARY 2017 MTADA NEWS BULLETIN


Montana Automobile Dealers Association Montana Automobile Dealers Association

Manage Costs by Maximizing Your Tax Savings. American Fidelity Assurance Company provides a full suite of expense management services that can help you and your employees maximize tax savings and manage costs associated with various benefits. We specialize in providing employer administrative services for all of our services, which can easily coordinate with existing plans. Our expertise and experience in offering these services allow us to make recommendations on the programs that will work best in your specific situation. Also, we will explain how we can implement these cost-saving programs for you and your employees. • Section 125 Plans • Flexible Spending Accounts • Health Savings Accounts

• Health Reimbursement Arrangements • Dependent Verification Reviews • Enrollment Solutions

SB-25306-0312

To learn more about what American Fidelity can do for you, contact: Jeff McNeilly 800-654-8489, ext. 2492 jeff.mcneilly@americanfidelity.com

FEBRUARY 2017 MTADA NEWS BULLETIN

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Montana Automobile Dealers Association Montana Automobile Dealers Association

2017 MTADA Board of Directors PRESIDENT

PRESIDENT-ELECT

VICE PRESIDENT

Chuck Notbohm Notbohm Motors Miles City 406-234-4480

Eric Hendrickson Subaru of Butte 3801 Harrison Ave Butte, MT 59701 406-494-7076

James Johnson High Plains Motors, Inc. PO Box 977 Wolf Point, MT 877-818-1913

CHAIRMAN

NADA DIRECTOR

NADA PAC

Whitney Olson Bison Motors PO Box 1548 Great Falls, MT 59403 406-237-4480

Don Kaltschmidt Don “K” Whitefish Whitefish 406-862-2571

Jim Stanger Helena Motors 3365 Hwy 12 E Helena, MT 59601 406-442-6310

OFFICE STAFF

DIRECTORS

Debbie Jean Office Manager MTADA 406-442-1233 Cell: 406-461-6333

Eric Hendrickson Subaru of Butte 3801 Harrison Ave Butte, MT 59701 406-494-7076

Kelsey Wandke Director of Dealer Ops. MTADA 406-442-1233 Cell: 406-439-2692

Joe Billion Billion Auto Group Bozeman 406-582-7777

EXEC. VICE PRESIDENT & GOVERNMENT RELATIONS Bruce Knudsen MTADA Helena 406-442-1233 cell: 406-461-7680

James Johnson High Plains Motors, Inc. PO Box 977 Wolf Point, MT 877-818-1913 Eric Henricksen Subaru of Butte Butte 406-676-4420

Tony Pierce Snowy Mountain Motors Lewistown 406-538-4014 Chuck Notbohm Notbohm Motors Miles City 406-234-4480

Marissa Schoepp Eagle Country Ford 215 East Main Sidney, MT 406-443-1810 Wade Rehbein Rehbein Ford Plains 406-826-3381

Whitney Olson

Bison Motors PO Box 1548 Great Falls, MT 59403 406-237-4480

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FEBRUARY 2017 MTADA NEWS BULLETIN

Profile for Montana Auto Dealers Association

Feb2017 mtada newsletter final2 (2)  

Feb2017 mtada newsletter final2 (2)  

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