Dear Fellow CATA Member:

I can't remember a time when the CATA wasn't a part of my personal perceptions of the retail automobile industry. Like most of us, as I grew up I knew that the CATA were the people who put on the auto show. The CATA's importance was further evidenced in my life via my dad's history as a salesman, sales manager, dealer, association director, Chairman of the Board and ultimately, auto show chairman. Among the many things dad taught our family was that giving back was not just worthwhile-it was essential and the right thing to do. It was his example and role model that encouraged me to seek election to the CATA board and follow his footsteps to help serve fellow dealers and the industry that has blessed us in so many ways for so very long.

I never could have imagined that the feeling of accomplishment-even in the challenging time we continue to experience-would be as satisfying as it has been. In a year when dealers experienced an almost perfect storm of rising oil prices, a flailing economy and a proposed onslaught of new taxation, dealers do what they have to do to survive. Some made it, but unfortunately, others did not. We need to continue to concentrate our efforts to help dealers in any way we can to not only survive, but to flourish. I'm confident that future CATA chairmen will cling to that target tenaciously.

Early in my term as chairman, we joined forces with many other Illinois industries and business associations in a fight against Governor Blagojevich's Gross Receipts Tax, which would have been disastrous in its impact to dealers and consumers alike. We rallied our troops to help defeat this proposed tax, and congratulations are warranted for every CATA member who picked up the phone, wrote, talked to business associates, and in many other ways let their state representatives and senators know that this tax was a business killer. In a strong showing of Decmocracy, a large group of Springfield legislators listened to their constituents and the tax-rightfully-went down in flames.

On the plus side, too, we were successful in August 2007 to increase the DOC Fee for vehicle transactions to $150. The increase became effective in January 2008. We're very pleased Springfield agreed that dealers need more compensation to process an ever-growing list of paperwork necessary with vehicle sales. For low-gross businesses, like ours, this makes a huge difference. We also thank our friends at the Illinois Automobile Dealers Association for their help in gathering support for this initiative. With the mounting array of federal and state regulations with which dealers must comply when selling vehicles, the increase has been welcomed by all dealers. For dealers-especially in light of a politically strangled Springfield-this  was a huge win.

As the Illinois Revenue Department widened its net in search of tax dollars, the matter of dealer cash remains in their cross hairs, and resolution may be reached in the near future (at the time of this writing). This is very problematic matter to administer, as customers would be taxed differently and the matter of disclosure is vexing. No other state is believed to tax dealer cash, but the Illinois Revenue Department's rules appear to be written more broadly than those in other states. We will continue to follow this issue to what we hope will be a workable compromise and solution.

While we "won" on the gross receipts tax, we "lost" on others. The increases in taxes levied by the RTA, Cook County and the City of Chicago didn't help to make vehicles more affordable. There was (and is) considerable confusion on the taxes, and our CATA staff did a great job of trying to clear what were murky waters.

From the perspective of our visibility and promotion of dealers, the unique media campaign in support of vehicle service and used-vehicle sales at new-vehicle dealerships continued throughout the year, using a broad base of top-rated radio stations. The campaign featured "light comedy" to break through the clutter with spots produced by The Famous Radio Ranch in California (the same guys who once brought us "Chickenman!"). The campaign also blended in promotion of our DriveChicago.com Web site, which continues to grow and is the benchmark for new- and used-car search engines. The site, with listings free of charge to CATA members, is expanding and offering new options, search parameters and reasons for Web buyers to look at us first.

Business conditions and marketing attacks from competitors dictate that we must support our dealers' used-car departments and service and accessory operations. We want the public to think first about buying their pre-owned vehicles from a new-car store. It'd be tough to find someone in Chicagoland who couldn't sing our "When you buy a used car from a new car store" jingles. We really want the public to continue to service their cars and buy replacement parts and accessories-including tires and batteries-from us. Committee Chairman John Guido, whose tenure as a director has now unfortunately ended, and his crew did a superb job in guiding this initiative and radio campaign.

Our 2008 edition of the Chicago Auto Show was a remarkable achievement, celebrating the 100th time the storied show has been produced. No other auto show in the world has been produced as many times as ours in Chicago. The show is so important to the membership, not only in terms of creating excitement for the industry as it leaves the winter doldrums, but also providing the means by which the CATA derives its operating capital for the year. We're fortunate to have a the nation's biggest auto show that is embraced by the public as warmly as the winds are cold, and by the industry that highly regards the show's ability to draw consumers to see new product.

I've saved what I consider to be most important for last: Over a period of eight months and many hours of dedicated work by of our CATA board members, Chicagoland Dealers Care was formed. CDC is a new benevolent entity of the Chicago Automobile Trade Association that has recently bestowed its first donations.

The campaign provides up to $5,000 in matching grants for a dealer's contributions to local charities. Grant requests can be for a variety of causes: academic programs, cultural arts, performing arts, medical research, and even humanitarian needs. The program not only benefits the recipients of the grants, but helps to highlight the ongoing community involvement that our dealers have always displayed. Our media partners at NBC5 have produced a series of TV spots that highlight examples of dealer involvement in their towns. The spots will be ongoing and included in the highly rated coverage of the Beijing Olympics.

Dealers are so deeply involved in the communities in which they do business. It's gratifying that the CATA has established this program to assist those dealers in extending the good they have done with little or no recognition. In times like this every dollar counts. Every CATA member can be proud of this new initiative.

There are so many members and fellow directors I wish to thank. I've personally done that with those with whom I have periodic (or constant) contact, but to all of the CATA I offer my ongoing dedication to this incredible organization. Every January we're sent a new window decal proclaiming our stores to be CATA members. I encourage us all to prominently display them, as our group stands for doing business properly, with dignity and with high ethical and moral standards. I'm proud and honored to have served as board chairman for the nation's most proactive and respected dealer association.

With kind regards,

Mark Scarpelli, CATA Chairman 2007-2008