CATA News

Staying late at the office. Covering another employee's shift. Going the extra mile for a customer. Employees at Raymond Chevrolet and Raymond Kia, both in Antioch,, are rewarded with cash bonuses for these efforts — an incentive that owner Mark Scarpelli said has improved employee retention and workplace attitude.

Exemplary employee behavior is met with a "Q-card." The "Q" stands for quality. The cards, which detail how the employee excelled, are cashed for a $25 bonus.

At the end of every month, employees gather for Cake Day, where they socialize and news updates are shared. More anticipated, however, is the chance to receive an even bigger monetary reward. The names of employees who received a Q-card — typically eight to 10 each month — are placed in a bucket. The employee whose name is drawn from the bucket receives a "crisp $100 bill," Scarpelli said.

"Sometimes it's really easy to focus on areas where we need to improve or things that somebody may have done wrong and actions that we need to correct," said Dina Vogt, CFO of Ray and Raymond Automotive Group, which includes the Chevy and Kia dealerships. "This really makes all of the managers more cognizant of encouraging the good."

The Q-card practice has been used for more than 10 years at the two dealerships. Vogt said the stores' annual turnover runs in the low 20 percent range, consistently lower than the average dealership turnover tracked by the National Automobile Dealers Association. That industry turnover number was 34 percent in 2021, the most recent year for which data is available, according to NADA.

According to Scarpelli, the 2017 chairman of NADA, the automotive industry "is not famous for keeping people around for a long time." Despite this, 10 percent of his staff has been with the dealerships for over 25 years. One employee, nicknamed "Employee No. 1," has worked for the group for 49 years.

The average employee has been at a Raymond dealership for around eight years — which Scarpelli and Vogt attribute to the culture that consistent positive reinforcement creates.

"Along the way, we've been able to keep a lot of long-term employees, people that are second-generation employees, third generations, sons and daughters that have started to work here," Scarpelli said. "That is one of the biggest benefits of all. It's a testament to what we collectively do. … It instills in them ownership and a sense of worth, really just wanting to see things prosper at the place that they call home."

Cake Day also serves as a chance for different teams within the dealerships to bond, Vogt said. If somebody in one of the parts departments gets the $100 award, the entire team takes pride in the accomplishment, she said.

"They feel like, if one of them won, they all won," Vogt said. "Its nice to see the departments root for each other."

And the event alone can be as much of an incentive for employees to bond and celebrate each other. As Vogt said, "it's always all about the cake."

Ray and Raymond Automotive Group sells six vehicle brands across four dealerships in Illinois. The Q-card practice is used at Scarpelli's Chevrolet and Kia stores in Antioch, which combined employ up to 120 employees and sold 2,750 new and used vehicles in 2022. The other two Raymond dealerships, in Fox Lake, Ill., have other programs for employee appreciation.

Source: Automotive News

The Chicago Auto Trade Association (CATA) today announced a new partnership to benefit its 400 dealer members and their employees. Dubbed the CATA Retirement Program, the 401(k) offering combines the power of the National Auto Dealers Association’s “NADA Retirement from Empower” program and the local expertise of Chicago companies, Financial Renaissance and Correll Co.

“This partnership brings the ‘best of breed’ retirement plan solutions to all CATA dealer members,” said Joseph Orlando, CEO of Financial Renaissance. “This new model combines the power and voice of the NADA with its 16,000 members, the award-winning technology of Empower -- the 2nd largest 401(k) provider in the country and marries it with Financial Renaissance -- a Chicago-based financial services company, as the exclusive broker on the plan.”

“The power of the NADA and Empower combined with the soft, service-based, touch of local partners is a powerful advantage,” said CATA Member Benefits Committee Chairman Dan Marquardt. “These strengths, combined with enhanced 3(38) fiduciary protection and low mutual fund fees, allow the CATA members access to protections they currently may not have or may not have been eligible for in their current retirement plans.”

The Chicago Automobile Trade Association Member Benefits Committee works to establish and maintain preferred partner relationships with allied members of the association with programs offering unique value to our dealer members and the CATA.

“Many small business owners don’t fully understand the exposure and liability their company 401(k) plans thrust upon them. We wanted to address that problem and relieve of some of that burden,” said Orlando. “That is the ingredient Correll Co. brings to the partnership.”

CATA dealers interested in learning more or seeking to schedule a plan comparison can do so by calling Joseph Orlando at 312-404-3232. 

The Federal Trade Commission's proposed new rules on auto dealerships would cost customers time and dealers money, a new Center for Automotive Research study concludes. In June 2022 the FTC proposed requiring expanded disclosure and consent on finance-and-insurance products and physical accessories "not provided to the consumer or installed on the vehicle by the motor vehicle manufacturer." The agency also is considering cracking down on dealerships' statements related to the cost or financing of the vehicle itself, seeking to curtail bait-and-switch pricing and lower monthly payments that mask higher overall cost to a consumer. The agency has not taken further action on its plan following the close of a public comment period last year.

Under the FTC's plan, the average consumer would spend two more hours on a vehicle transaction, the Center for Automotive Research wrote in a May analysis based upon polling more than 60 dealerships. NADA opposes the rules and has requested that the FTC withdraw them, calling the agency's plan "severely flawed both as a matter of law and public policy."

According to the study, the automotive retail industry would also incur between $18.69 billion and $22.34 billion in additional compliance expense over the course of a decade because of the FTC rules — more than 10 times the $1.36 billion to $1.57 billion predicted by the agency. An individual dealership location would spend a median $46,950 in upfront cost and $50,958 in recurring expense every year to comply with the regulation, the survey found.

Under the FTC's proposal, customers can't buy physical accessories or F&I products — both of which the FTC designates as "add-ons" — without first declining in writing the option to buy or finance the vehicle by itself at the corresponding amount. A manager also must sign the document.

The proposal also calls for customers to provide "express, informed consent" and receive cost information about "add-ons" before a dealership can charge them for or help them finance any of those products. Prechecked boxes or a "signed or initialed document, by itself" doesn't qualify, the agency said. Consent must be "unambiguous" and, in the case of physical transactions, oral.

When the compliance cost figures were combined with the value of two more hours of customer time — priced at $22.20 per hour by the FTC — per transaction, the Center for Automotive Research put the net cost of the regulations over 10 years at between $38.06 billion and $45.87 billion. That's significantly different than the $29.72 billion to $34.77 billion in net benefit predicted by the FTC.

Under the FTC's proposal, dealerships would need to list an out-the-door cash price they would honor for any specific vehicle or financing term they advertise. However, the same requirement applies to the dealership's first response to a customer's inquiry about a vehicle. The regulation imposes other disclosure rules on a dealership's discussion of monthly payments as well as "add-ons."

Read the full Automotive News article here.

This year's USO BBQ for the Troops one-day fundraiser will take place on Saturday, July 15 across the Chicagoland area. And this year's event is a big one - the 10th Annual BBQ!

The CATA and area new-car dealers partnered with the USO Illinois to create the Barbecue for the Troops campaign to raise money for our local troops and their families. What started as a few hot dogs and tin can has now grown into an annual festival which brings in thousands of dollars. In fact, the program’s lifetime total is over $1 million raised for USO Illinois!

As a participating dealer, the CATA will provide you with a starter kit of marketing materials you will need to get started including outdoor signage, posters and a social media toolkit. The CATA also runs an area-wide marketing and advertising campaign which includes a listing of all participating dealers and is an excellent opportunity for media exposure.

The 2022 event had 63 participating new-car dealers who hosted events that ranged from online fundraisers to full-blown community summer festivals that included a 21-gun salute, live music, bounce houses, and, of course, a delicious barbecue meal. This year, the CATA’s aiming for 100 participating dealers; help us reach our goal and bring us back to pre-pandemic participation levels!

As we know, dealers have deep roots in their communities and by participating in the Barbecue for the Troops program, dealers can further connect with their customers and contribute to a great cause.

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A loophole enables car shoppers to get the EV they want and qualify for a full $7,500 tax credit – sort of. All customers must do is lease instead of buy. Only a few vehicles qualify for the federal EV tax credit if purchased by the consumer. But, thanks to this loophole, all battery-powered models qualify for the full credit if they're leased, because in that case the IRA categorizes them as commercial vehicles.

More information is available here: https://electrek.co/2023/04/05/how-to-bypass-nearly-every-restriction-of-the-ev-tax-credit-by-leasing/.

CATA Approved Partner ACV Auctions is providing a limited number of Live Appraisal Events free of charge to CATA dealers participating in the USO BBQ for the Troops event this coming July. For these events, ACV partners with dealers by having an inspector at the dealership to assess trades and launch the customer’s vehicle onto the ACV network for an instant appraisal. ACV can also assist participating dealers with marketing materials for the event.

Below are links to a video and presentation for more detailed information on the Live Appraisal Events. 

https://drive.google.com/file/d/1rRGLXfCNLCNxtAFe43tzNwPLkZi-vZBH/view?usp=drive_link

https://drive.google.com/file/d/133aitrUChMvLcICZB9_jj8AR47xAGow6/view?usp=sharing

For more information contact ACV Regional Sales Director Collin Rosenbaum at (260) 265-0144 or crosenbaum@acvauctions.com . This opportunity is limited to a handful of CATA dealers and is on a first-come, first-served basis.

It’s no secret that your Fixed Ops department is an essential part of your dealership’s performance and profitability. However, many dealerships are feeling the pressure of a significant technician shortage, exacerbated by industry changes, supply chain disruptions, and unforeseen global events.

There are three key areas your dealership should focus on in order to combat the technician shortage:

While the future remains uncertain, there are clear steps you should take to maximize the technicians you currently have, all while making your dealership a better place to work with great pay and a busy service drive.

As many dealerships navigate these unprecedented events, it has become apparent that Service Managers lack the time and tools to enhance the capacity of their current technicians, factor in and plan for future capacity, and understand how that can affect revenue and profitability. It can also be challenging to have the insight needed to make long-term departmental enhancements that will improve technician retention, pay, and overall job satisfaction. Dynatron Software has the data analytics and coaching your dealership needs to be able to turn goals into action plans, and action plans into results.

Check out our latest blog to learn more about how to tackle each step in beating the technician shortage here.

April 18, 1934 – May 24, 2023 – Michael "Mike" Muller, 89. Beloved husband of the late Trudy, nee Arst; devoted father of Mark (Lori) and the late Scott and Glenn Muller; treasured grandfather of Priscilla, Madison, Jared, Mackenzie, and Aleksandra; loving brother of Ann Hilton (aka Arlene Muller); caring uncle of Kip (Kathy) Weissman and Kathy (Jack) Giroux. Mike was a proud veteran, serving in the US Army during the Korean War. He was the owner of six distinctive automobile dealerships in Illinois and Northern Indiana. He started as a car salesman in 1968, eventually becoming partners with Irwin Grossinger and opening his own dealership in Highland Park in 1974. He will be deeply missed by extended family, friends, and colleagues. Memorial contributions may be made to the Wounded Warrior Project, www.woundedwarriorproject.org.

Wholesale used-vehicle price erosion continued to an extent in May, according to two major indicators. One of those, the Manheim Used Vehicle Value Index, recorded a second-straight month of decline. Cox Automotive said Wednesday that its Manheim index — a measurement of wholesale used-vehicle prices calculated by tracking vehicles sold at Manheim's U.S. auctions and applying statistical analysis to those figures — fell 2.7 percent in May from April. Cox adjusts that figure for mix, mileage and seasonality.

ARCO/Murray - Our goal is the same today as it was when we started in 1992: to be the very best design-build contractor in the industry. We use a proven design-build methodology to bring our clients’ vision to life while delivering the very best experience.

We have offices to serve clients from coast-to-coast – across an array of industries.

Our expert team of in-house engineers, project managers, superintendents, modelers and architects are capable of designing and building the most demanding projects anywhere in the country.

For more information contact Michele Fournier at mfournier@arcomurray.com.

BMO Commercial Bank - At BMO Commercial Bank, we believe you deserve more from your bank than just a place to get financing or products to manage your cash flow. You deserve a partner that understands your industry, your business and sees your vision the way you see it. A bank that gets you.

Our clients feel the difference when they work with us. We listen to you, anticipate your needs and share our expertise and knowledge to help you achieve your vision. You benefit from the size and strength of BMO Financial Group, with $812 billion in assets and the expertise of 45,000 employees around the globe.

We understand that there’s more to running your business than just finances, so we want to make banking with us easy so you focus on growing your business; confident that all of your financial needs are being addressed. Because in the end, that’s the type of partner a bank should be.

For more information contact Joel Dixon at joel.dixon@bmo.com.

Novella - Dealers trust their salespeople to present sealant products. Novella validates it. Novella is designed to guarantee and track sealants are presented each and every time. ONE additional sealant contract per month will cover your monthly Novella cost. Additionally, if you do not see an increase in sealant penetration within 90 days at a +95% utilization rate, we will refund your fees.

Guarantee your salespeople are presenting sealants to each and every customer. No longer miss an opportunity to capture a sealant sale - the only noncancelable ancillary! Novella is product-agnostic, which means NO change of your sealant provider. Novella is the gateway to increased F&I!

For more information contact Tanya Jindrich at tanya.jindrich@novellatrack.com.