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CATA Bulletin
November 4, 2019

 

D'Arcy nominated for prestigious Time Dealer of the Year award

November 1, 2019

The nomination of Terry D’Arcy, dealer principal at D’Arcy Buick GMC in Joliet, Illinois, for the 2020 Time Dealer of the Year award was announced Oct. 21 by Time magazine. 
 
D’Arcy, 63, is one of a select group of 49 dealer nominees from across the country who will be honored at the 103rd annual National Automobile Dealers Association Show in Las Vegas on Feb. 15. D’Arcy was nominated for the award by the Chicago Automobile Trade Association.
 
The Time Dealer of the Year award is one of the automobile industry’s most prestigious and highly coveted honors. Recipients are among the nation’s most successful auto dealers who also demonstrate a long-standing commitment to community service.
 
"The best part of being in our industry is the ability to reinvest in our world with the numerous blessings and gifts that have been bestowed upon us," nominee D’Arcy said. "It has also been my good fortune to help many wonderful people in our organization grow, prosper and live well."
 
A 1974 graduate of Plainfield High School, D’Arcy was introduced to the retail automotive industry in 1979 by his father’s friend, Ted Benson, who had a Dodge store in Joliet. "I was a recently laid off union ironworker at the time," D’Arcy said, "and he hired me to sell cars."
 
After leaving the auto business for a few years, D’Arcy returned to a job at a Chevrolet store in Naperville in the mid-1980s, where he was determined to build a successful career in the retail automotive industry. "During my five years at this family-owned dealership, I learned key lessons about how to treat not only our guests but also fellow employees who are equally as important when it comes to success," he said.
 
After partnering in an Oldsmobile store in 1991, he became the full owner of D’Arcy Oldsmobile Volkswagen GMC in 1993, which is now D’Arcy Buick-GMC. Today, he also owns D’Arcy Chevrolet-Buick-Cadillac in Morris, and D’Arcy Hyundai in Joliet. His son, Nicholas, has joined him in the family business.
 
D’Arcy has served on the board of the CATA and held various leadership roles, including association chairman in 2005 and 2006. "We initiated some long-term strategies under my direction, the most noteworthy of which was a $1.5 million partnership with AYES [now the ASE Education Foundation]," he said. "This initiative provided technical training in partnership with Chicagoland technical schools and major car manufacturers to help meet the service needs of our dealerships."
 
In the area of community service, D’Arcy is committed to giving back on a local and global scale. "We have donated thousands of dollars to drill fresh water wells in many locations in Africa through great organizations such as Charity: Water and James and Betty Robison’s Water for LIFE outreach," he said.
 
On a local level, D’Arcy arranges to take groups of children to visit the Brookfield Zoo. "These youngsters would not have the chance to see this world-class zoo otherwise," he said. "Over the last 10 years, we have been able to send 1,000 children and teens to this popular destination.
 
He also supports the Mark Staehely Pediatric Cancer Foundation (delivered toys to children undergoing cancer treatments); the ALS Association Greater Chicago Chapter; Boys Scouts of America; Wish Upon a Star (Joliet-based organization that grants wishes to children with life-threatening illnesses); Special Olympics Illinois (Polar Plunge event); Guardian Angel Community Services (Joliet); Liberty Arts Festival (major sponsor of this three-day event in downtown Morris); Will County Habitat for Humanity (Homes for the Hounds dog house constructing event); CASA of Will County (presenting sponsor of the Golf for the Child Classic); Joliet Area Community Hospice; and many more.
 
"We are here to serve others and there is no better reward," D’Arcy said. "Every year we invest more in giving than in our advertising programs. We have invested on average $500,000 in our community both locally and worldwide each year over the last several years."
 
Dealers are nominated by the executives of state and metro dealer associations around the country. The award is sponsored by Time in association with Ally Financial, and in cooperation with the NADA. A panel of faculty members from the Tauber Institute for Global Operations at the University of Michigan will select one finalist from each of the four NADA regions and one national Dealer of the Year. Three finalists will receive an additional $5,000 for their favorite charities and the winner will receive an additional $10,000 to give to charity.
 
The nominee and his wife, Susan, have six children.
 
 

IADA nominates Roesch for Time magazine award

November 1, 2019

Dan Roesch, president of Larry Roesch Chrysler-Jeep-Dodge-Ram in Elmhurst, has been nominated for the 2020 Time Dealer of the Year award.
 
Roesch, 58, was chosen to represent the Illinois Automobile Dealers Association in the national competition for the 51st annual award.
 
"I was 13 when I knew what I wanted to do for the rest of my life: be a car dealer," nominee Roesch said of his early days visiting the dealership of his father, Larry Roesch. "And I believe the best thing that the industry has brought to me is the flexibility to do the things that make a difference in so many lives."
 
After graduating from Northwood University in Midland, Michigan, in 1981 with a degree in automotive marketing, Roesch set out to achieve his dream at his father’s company, which grew from a single DeSoto store founded by his grandfather in 1923.
 
"I started out as a porter at age 14 doing all the dirty grunt work no one else would do," he said. "Did not matter to me, as I was at the dealership around all the shiny cars. I later worked in the body shop, parts room, used vehicle reconditioning and went on to selling vehicles during the summer of my freshman year at college."
 
Roesch worked side by side with his father and eventually became a car dealer. Today, he oversees Roesch Chrysler Dodge Jeep Ram and Roesch Ford in Bensenville.
 
"My father and I were very close," Roesch said. "He was always enthusiastic about charity events and helping others, and when he passed away in August 2013, people waited an hour and a half to pay their respects. One man relayed a story of how my father gave him a car when he was homeless so he could get a job, and that he has been giving back ever since."
 
He added: "My father believed that we are given the opportunity to make a difference in someone's life, so we do. It can be as small as a phone call or a monetary contribution in a person’s time of need. I am blessed to be in an industry that allows me to act upon the instinct that was ingrained in my upbringing."
 
And Roesch has made a difference, particularly through his commitment to the Cystic Fibrosis Foundation. "At age 3, my son Dylan was diagnosed with the genetic disease cystic fibrosis," he explained. "I was devastated and didn’t know what to do. I thought to myself, I am not a doctor but a really good car salesman, and I know many wealthy people and vendors. If I can get them all involved and raise a boatload of money, maybe the scientists can find a cure."
 
He jumped into action and started Dylan’s Dream Team with the focus of providing funds for the Cystic Fibrosis Foundation in Chicago. "We started out with smaller events raising an average of $100,000 a year to running the largest Texas hold ’em poker tournament in the state of Illinois with more than 800 people in attendance, raising $500,000 per event for 11 straight years," Roesch said.
 
In addition, he lobbied in Washington for support of the charity and attended many national events. Today, Dylan, who is in his twenties, is benefitting greatly from a new drug that tricks one of his mutated genes into behaving normally. "My son went through so much as a young man," he said. "The whole time he kept a great attitude, and we went on this journey together."
 
Another charity that is close to Roesch’s heart is the Northeast DuPage Special Recreation Association, which provides recreational support for children and adults with special needs in Addison. "My father championed this organization throughout his life, and we continue to raise funds through the annual Larry Roesch/NEDSRA Golf Classic, now in its 28th year," he said.
 
For his contributions to the betterment of the community, Roesch, along with his business partner, Paul Koch, received the 2018 Good Works Award from the Elmhurst Chamber of Commerce and Industry. In addition, Roesch supports the Elmhurst Lions Club; Kiwanis Club of Elmhurst; Elmhurst College; York High School in Elmhurst; IC Catholic Prep in Elmhurst (Roesch’s high school alma mater), among many other local organizations.
 
"Our job allows us the autonomy to set our own schedule and pull together so many people and vendors to support the causes that we choose," Roesch said. "The gift of time to support others is a huge reward and no mantle is big enough to support that trophy."
 
Dealers are nominated by the executives of state and metro dealer associations around the country. The award is sponsored by TIME in association with Ally Financial, and in cooperation with the NADA. A panel of faculty members from the Tauber Institute for Global Operations at the University of Michigan will select one finalist from each of the four NADA regions and one national Dealer of the Year. Three finalists will receive an additional $5,000 for their favorite charities and the winner will receive an additional $10,000 to give to charity.
 
Dan and his wife, Amy, have four children.
 
 

New OT rules, effective Jan. 1, add to slate of new employment laws

November 1, 2019

By Gary Savine, Savine Employment Law, Ltd., and Judy Mason, CPA, MichaelSilver
 
A new U.S. Labor Department rule effective Jan. 1, 2020, increases the salary level for white-collar exemptions from overtime pay. The new rule affects workers who serve in white-collar exempt roles (e.g. executive, administrative and professional roles). It does not change other exemptions that typically apply to commission-based salespeople.
Specifically, the new rule increases the salary level for the white-collar exemptions. New salary level for white collar exemptions will be $684 a week ($35,568 annually), up from $455 a week ($23,660). The new salary level for highly compensated employees will be $107,432 a year, up from $100,000. The rule also permits employees to use nondiscretionary bonuses and incentive payments (including commissions) that are paid at least annually to satisfy up to 10% of the required salary level.
This new rule adds to a list of new employment laws taking effect in 2019-2020. At a minimum, employers should check their white-collar exempt workers’ salaries to determine if they will remain above the salary threshold necessary to maintain exempt status; and plan for any necessary adjustments to take effect by Jan. 1. Employers also should plan for other laws, including: 
 
• amendments to Illinois Equal Pay Act that ban pay history inquiries and prohibits employers from preventing workers from discussing their pay with coworkers;
 
• amendments to the Illinois Right to Privacy in the Workplace Act that change discrimination and drug testing laws to account for the decriminalization of recreational marijuana use;
 
• amendments to the Illinois Human Rights Act that require employers to provide annual sexual harassment prevention training; and
 
• Chicago’s "Fair Workweek Ordinance" that requires employers to publish work schedules in advance or pay premium wages as a penalty.
 
 

BBB seeing loyalty, conquest rebates included in advertised lease payments

November 1, 2019

The Better Business Bureau lately has seen a strong increase in lease payment advertisements in which loyalty and conquest rebates are included in the payment amounts.  These advertisements may be prepared by manufacturers or other third-party website developers.  While such advertising may be acceptable in other states, it is not in Illinois.
Rule 475.530, Rebates, is very clear on the subject. Part (b) states: "It is an unfair or deceptive act to advertise a price or amount of an installment payment, wherein rebates have been deducted, unless every consumer seeking to purchase or lease the advertised vehicle is eligible for the rebate."
Part (c) states: "The availability of a limited rebate may be advertised if the terms of the limitation are clearly and conspicuously disclosed.  It is an unfair or deceptive act to advertise a price or amount of an installment payment in which limited rebates have been deducted, or to advertise the total amount of rebate if a portion of the total consists of a limited rebate."
The BBB wants to encourage dealers to consistently review their lease payment advertisements. As CATA members know, there are "zero tolerance" issues established by the CATA board of directors. The inclusion of limited rebates in prices or payments is a 0-tolerance issue requiring referral to the attorney general’s office. 
As a refresher, other zero tolerance issues are: free gifts, coupons with the sale of vehicles, advertised trade-in amounts and the exclusion of amounts other than tax, title, license and the doc fee from advertised prices and payments. 
The BBB hopes that dealers will specifically correct their lease payment advertisements to exclude, rather than include, loyalty, conquest or any other limited rebates so that a level playing field is maintained throughout the Chicago area marketplace. 
 
 

DSi Recycling named CATA recommended service provider

November 1, 2019

DSi Recycling Systems, Inc., is a full service Clean Burn furnace and boiler distributor.  The company will design the system which is best for a dealership, install equipment to factory specifications, and provide after-sale technical support, parts and on-site service.  
DSi has been in the used-oil heating industry for more than 30 years and has specialists who will visit dealerships to size and locate the equipment which is best suited to utilize their used oil for efficient energy recovery. Factory-trained technicians will install the equipment for maximum performance efficiency so that the dealership will get decades of savings from its Clean Burn system.  
Let DSi Recycling Systems, Inc. representative show how much can be saved with the industry’s top selling furnace for 33 consecutive years, Clean Burn.  At DSi, we sell SAVINGS! Contact Rick Farnan at (309) 253-2666 or farnanrick@gmail.com.
 
 

Dealer associations amp up efforts to recruit young technicians

November 1, 2019

Anxious to replenish a dwindling auto-technician workforce, car dealers are, among other things, trying to recast the public image of auto mechanics as well-paid, well-trained, computer-savvy professionals.
The auto-retailing industry is facing a critical shortage of service technicians, a problem that will worsen in coming years if not addressed, the National Automobile Dealers Association projects.
"We’re working hard on this," said Charlie Gilchrist, a Texas dealer and the 2019 NADA chairman. "The tech shortage is a serious issue, not only for dealers but for OEMs. Older techs are retiring, and we need to bring in new people."
America’s technical colleges and training programs graduate about 37,000 auto mechanics a year. Yet the industry needs to replace roughly 76,000 technicians annually to keep pace with retirements and new jobs in the sector, the NADA said.
The dealer association and similar groups have launched initiatives to ease the shortage, but "we’ve a long way to go," Gilchrist said during an appearance at an Automotive Press Assn. gathering in Detroit.
 
The Chicago Automobile Trade Association is developing a pilot program for area high school students enrolled in vocational training, to expose them to service department work and potential careers as technicians. The students could earn school credit for their work, and they would be guided to community colleges to continue their vocational educations. If the program succeeds, it would be rolled out at schools throughout the area.
 
Another project is the NADA Foundation’s Workforce Initiative. It aims to promote the benefits of auto technician work and make it easier, digitally and otherwise, for interested persons to learn about local training opportunities.
Automaker contributors to that cause include Toyota ($100,000), Hyundai ($50,000) and Porsche ($25,000).
"We need an initiative the entire auto industry can get behind," Gilchrist said.
Efforts also are underway to reach out to high schoolers and even middle schoolers to whet their interest in such work. The NADA said the average U.S. dealership technician earns more than $61,000 a year, and experienced mechanics can make more than $100,000 annually.
Some local dealership groups, such as the Greater New York Automobile Dealers Association, have established their own regional training centers. Other dealer associations have partnered with local community colleges to offer auto-tech training.  
 
Some programs seek to reach not only students but also their parents. Children may not listen when their parents tell them to clean their room, but many young people heed parental career advice.            
The recruiting efforts try to convey the message that the days of the "grease monkey" or backyard mechanic are over because vehicles now are so advanced.
"As vehicles become more technically driven, we need younger minds to service them," Gilchrist said. "It used to be a greasy job. People got their hands dirty. Now it’s high-tech and high-paying. Our job is to let people know how wonderful it is to work at a dealership. I don’t think we’ve done that in the past."
 
Asked to describe the wonders of dealership work, he said: "We try real hard to make sure our people know how much we care about them. If we do, they’ll care about customers. "We’re trying to change up, so we have flexible scheduling, allowing people to have time off when they need it.
 
"To me, because of the family atmosphere dealerships provide, it’s the only place to work. It’s an exciting business. It’s incredible. And dealing with people and customers is fascinating."
 
Then there are the occasional car-lot barbecues. "That too," Gilchrist said. "We do a lot of fun things."
 
 

Let's make USMCA happen

November 1, 2019

By Charlie Gilchrist, 2019 NADA Chairman
 
For nearly two years, the automotive industry has been living in a world of uncertainty as the U.S.-Mexico-Canada Agreement, renegotiated by President Trump, awaits ratification. And all the while, the dark cloud of tariffs on autos and auto parts has hung above us. 
But it’s not all storms on the horizon. I had the opportunity in October to address members of the Automotive Press Association in Detroit about the importance of creating certainty for our industry with the immediate Congressional passage of USMCA.
The reality is that the U.S. auto industry is built on an integrated, global supply chain and is reliant on a favorable trading relationship with our two biggest trading partners — Canada and Mexico. On Jan.1, 1994, then-President Bill Clinton signed the North American Free Trade Agreement into law to strengthen trade among the three countries within North America’s borders. Since then, NAFTA has permitted OEMs and suppliers in Canada, Mexico and the United States to ship vehicles and automotive parts without tariffs before final assembly and retail sale.
NAFTA has greatly enhanced the global competitiveness of the U.S. auto industry and has paid dividends to the U.S. economy. Because of NAFTA, the U.S. has become a major vehicle exporter and more jobs were created jobs right here in America.
NAFTA is one example of how trade is an essential element of a healthy and competitive U.S. automotive and parts industry. More than 25 years since NAFTA was signed, the USMCA modernizes NAFTA for our current times and business environment. 
The agreement is vital to our industry. USMCA will maintain auto production and distribution in North America and will preserve the global competitiveness of the U.S. automotive industry. Furthermore, USMCA will reduce the threat of tariffs on vehicles and parts by exempting those produced in North America — enabling dealers to continue providing affordable vehicle options for American consumers. 
There’s no question about it: The USMCA is a win for our industry, our customers and our businesses. This is why it’s critical that our leaders in Washington move USCMA forward. Let’s get behind President Trump’s renegotiated deal and make USMCA happen. 
 
 

In Memoriam: Eugene D. "Gene" Heller

November 1, 2019

Eugene D. "Gene" Heller, 89, of El Paso, Illinois, who with his wife, Doris, founded Heller Ford in that city in 1957, died Oct. 27. He was the father of Dan Heller, who serves on the CATA board of directors.
 
Mr. Heller served in the U.S. Army during the Korean conflict before returning to El Paso, where he served as an Elder for the Trinity Lutheran Church of El Paso. He also served as a chairman of the Ford Dealers Advertising Fund and was El Paso’s Senior Citizen of the Year.
 
Other survivors include daughters Cheryl and Amy; another son, Marty; a Bolivian exchange student, Alfredo "Chicho" Fernandez; seven grandchildren; and four great-grandchildren.
 
Memorial contributions appreciated to the Trinity Lutheran Church Building Fund, (309) 527-4333, or the El Paso Fire District, (309) 527-6145.