CATA News

The NADA released a new animated video explaining how the FTC proposed rule would dramatically complicate the car buying process for American consumers. (Watch the video here.)

The video shows how the regulation, first proposed by the Federal Trade Commission in June, would force consumers who finance their vehicles to sign new forms and disclosures each time they ask about the price of vehicles on the lot.

The FTC, which is fast-tracking the proposal, last week denied NADA’s request to extend the deliberation period. NADA and state dealer associations are filing detailed comments to the FTC opposing the proposal.

The FTC has yet to field test the proposal, and has provided no quantitative data showing how the proposal would help consumers. Dealers are encouraged to submit a comment on the proposed rule before the Sept. 12 deadline. Also, tell the FTC in a short letter that this rule is unwarranted and unnecessary. Your comments are critical and can be submitted online here.

Charities and civic organizations know that Chicagoland new-car dealers are an integral part of their communities and are often deeply involved in charitable causes. However, dealers rarely receive the recognition they deserve for their efforts. The Chicago Automobile Trade Association created Chicagoland Dealers Care in 2008 to raise awareness of dealers' local charitable efforts and, in many cases, assist with the programs.

When it comes to donations, the Chicagoland Dealers Care program, the CATA will match your local, charitable contribution up to $1,500 to maximize the impact dealers make in your community. Grant requests can be made every three years for a variety of causes: academic programs, cultural arts, performing arts, medical research, and even humanitarian needs, to name just a few.

Since its inception in 2008, the grassroots Chicagoland Dealers Care program has donated more than $123,000 to local charitable organizations. Additionally, since 1992, the association has raised more than $59 million for significant Chicago-area charities during the annual First Look for Charity black-tie event, traditionally held the evening before the Chicago Auto Show opens to the public. Learn more about the Chicagoland Dealers Care program and how you can get involved. To submit a match request, download this form and email it to Hayley Feichter (hfeichter@drivechicago.com).

New-car dealers are in desperate need for auto techs, parts counter employees, service writers and managers. Though many offer scholarships and paid training, there is also another pool of scholarships available through aftermarket parts organizations.

These scholarships are available for: Full time students at an accredited U.S. college or university or an ASE/NATEF Certified post-secondary automotive, heavy duty, or collision repair school, graduating high school seniors planning to be full time students at the previously mentioned schools. According to the website, in 2021, 427 scholarships were awarded for a record of $706,2500 and 881 complete applications were considered for scholarships by more than 40 donor organizations.

Click here for more information about these scholarships: https://automotivescholarships.com/.

Cook County Sherriff Tom Dart kicked off the CATA’s recent seminar focused on preventing dealership theft underlining the importance of dealers doing everything they can to make their vehicle inventory less vulnerable to criminals. 

The seminar was presented by law enforcement officials from his office, Chicago Police Department, Illinois State Police, the state’s Auto Theft Task Force and the Hinsdale Police Department.

The presenters have been working toward a more cooperative and coordinated effort to preventing car theft at dealerships and carjackings of individuals which both are at or near all-time highs. They suggest dealers do the same thing.

“Dealers and dealership managers should establish a text chain or use an app like ‘Whatsapp’ to stay in immediate contact with neighboring dealers on their street or in close proximity,” said officer Lou Hayes from Hinsdale. “Report any suspicious activity or individuals you see in your dealership to one another so they can be alerted or tell you if they see the same person acting suspicious in their store.”

The officers also asked that dealers report theft to the CATA (after law enforcement has been notified), so that CATA officials can circulate the information among its membership and alert this law enforcement group, as well. The sharing of information is critical to taming this criminal activity, they said.

Chicago Police Department Sergeant Kevin Sellers warned that all these offenders should be considered armed. “Whether they are breaking into a dealership or stealing a catalytic converter, they have guns,” he said.

Other helpful tips from the presentation included:

LIGHTS & CAMERAS

PERSONNEL

INVENTORY

SECURE ITEMS

ACTIVATION

The Illinois Environmental Protection Agency is implementing a Charging Infrastructure Grant Program. The primary goal of this program is to substantially offset the installation costs of electric vehicle charging infrastructure, beginning July 1, 2022, and continuing as long as funds are available. The Agency will award grants in accordance with Section 45 of the Electric Vehicle Act, to public and private organizations and companies to install and maintain Level 2 or Level 3 charging stations. 

For more information on this grant program, you can download the 2022 Illinois Register of Rules of Governmental Agencies, Vol. 46, Issue 34.

President Biden signed the signed the Inflation Reduction Act into law on August 16, fundamentally changing the way EV tax credits are handled. For the past few days, government agencies, auto manufacturers, the NADA, and industry news providers have been scrambling to make sense of the new law and detail the changes for new-car dealers. Key takeaways include:

1. The old $7,500 credit is no more. However, customers who took delivery or entered a binding purchase contract for a qualifying PHEV or BEV prior to Aug. 16, 2022, are still eligible to claim the old credit on their taxes.
   
2. From Aug. 16, 2022, to Dec. 31, 2022, only one requirement applies for a PHEV or BEV to get the $7,500 credit. The vehicle must be assembled in North America.
   
3. Starting Jan. 1, 2023, additional requirements are added for a PHEV or BEV to be eligible for the $7,500 credit.
   

Providing a little detail on each of the requirements:

The U.S. Department of Energy has provided a list of vehicles with final assembly in North America. That list is located here: https://afdc.energy.gov/laws/inflation-reduction-act. It should be noted that simply being on this list does not guarantee that the vehicle qualifies for the credit because some vehicles are built in multiple locations. The build location of a particular vehicle should be confirmed by referring to its Vehicle Identification Number (VIN) using the VIN decoder or an information label affixed to the vehicle.

The MSRP qualifications are clearly specified in the legislation:

The income thresholds are also clearly defined in the legislation:

Like the income threshold and MSRP limitations, the battery component and battery minerals production requirement does not kick in until 2023. At that time, 40% of the critical minerals used to create a vehicle's battery must be extracted or processed in the United States, or a country that has a free trade deal with the US. By 2027, that number will rise to 80% of the battery minerals. The battery component requirement calls for 50% to be manufactured or assembled in North America starting in 2023 and 60% in 2024 and 2025 with the number gradually growing to 100% in 2029.

Also, the amount of credit available for a specific vehicle depends on several factors. For the remainder of 2022, new vehicles that meet the guidelines set up in the Inflation Reduction Act receive up $7,500. Starting in 2023, a vehicle will receive $3,750 if it meets the battery minerals requirement and $3,750 if it meets the battery component requirement.

The Inflation Reduction Act also defines a new credit for some buyers who purchase a used electric vehicle of up to $4,000. However, the credit may not exceed 30% of the vehicle's sale price.

Starting Jan. 1, 2024, the federal tax credit can be assigned to the seller (new-car dealer) by the buyer, resulting in a purchase price reduction. However, prior to that date, the customer must claim the credit when filing federal taxes or assign it to the leasing company.

Keep in mind that the new law does not affect the current Illinois EV tax rebate. You can get more information on that here.

From an advertising perspective, it is advisable for dealers to follow these guidelines:

For the ninth year, the Chicago Automobile Trade Association partnered with the USO Illinois to host Barbecue for the Troops fundraisers. This summer, 63 local new-car dealerships fired up their grills to host community Barbecue for the Troops events featuring everything from patriotic ceremonies, classic car shows, live music, games for kids of all ages and, of course, barbecues. The dealerships rallied their communities once again, bringing in more than $78,000 for local military and their families.

“CATA dealerships are committed to giving back to their communities, and the USO Barbecue for the Troops initiative is one great example of dealers helping people in need – right in our own backyards!” said CATA Chairman JC Phelan. “This year is especially wonderful because of the $1 million fundraising milestone we achieved and I am so proud to present this check to USO Illinois on behalf of all participating dealers.”

This year’s fundraiser brought the grand total of the nine-year program to more than $1 million overall, supporting the USO Illinois initiatives with nearly 700 fundraisers. These funds enable the USO Illinois to lend support to more than 326,000 service members and their families annually.

“We are overwhelmed with the amount of support we have seen this year from our partners at the Chicago Automobile Trade Association and the local new-car dealerships,” said USO Illinois Executive Director, Christopher Schmidt. “What started as a grassroots effort has now turned into more than $1 million in support for our local service members and their families.”

In addition to the community fundraisers, awareness spread via social media. The CATA and USO Illinois ran a #BBQ4Troops social media contest where people could nominate individuals they deem worthy of winning the Ultimate Backyard Barbecue. Entries poured in throughout the month of July; wives nominated husbands who served overseas, parents nominated children who are active duty military and friends nominated deserving friends and neighbors.

The CATA and USO Illinois are already planning for next year. The USO Barbecue for the Troops fundraising events are set to take place at local new-car dealerships on Sat., July 15, 2023. 

“This program could not have been a success without the incredible support of our media partners,” said Phelan.  “Many thanks are due to all of our partners in TV, radio and outdoor advertising media who helped us promote this worthwhile program.  And a special thanks to ABC 7 for producing the TV spot that aired throughout the market.”

The daughter of Lonnie Johns, assistant service Manager at Elgin Toyota and her entire family were involved in a tragic accident along I-90 recently. Tom and Lauren Duboz and their four children were killed in the accident

A GoFundMe has been set up by Lonnie and Eva Johns and the owner of Elgin Toyota and the Bob Loquercio Auto Group has pledged to match the first $10,000 in donations. If you are interested in donating, please visit https://www.gofundme.com/f/tom-and-lauren-dobosz-family.

John G. Mathias, 82, of Arlington Heights, passed away on August 6, 2022. Beloved husband of Theodora "Teddy" Mathias; loving father of Mary (Bill) Bauer, George Mathias, Thomas (Kathy) Mathias and the late Constance "Connie" Mathias; adoring "Papou" of Alexis & Bradley Bauer and John (Bianca) & Lauren Mathias; dear brother of Elaine Mathias and brother-in-law of the late Despina (Andy) Kyriazes and the late Steve (Linda) Messerges; dear uncle of many nieces and nephews.

John was the proud owner of Franklin Weber Pontiac and a past President and Chairman of the Chicago Auto Trade Association.

Donations can be made in John's name to the Illinois Alzheimer's Association at www.alz.org/illinois or the St. Nectarios Greek Orthodox Church at www.stnectariosgoc.org/stewardship/donations, under the "give now" button please select "Memorial Donations" and write John's name in the note.

Charles “Chuck” Weck, 66, of Marengo, died on July 30, 2022. Chuck was instrumental in the growth of the Napleton Group and later started the WAG, Weck Automotive Group, which included Elgin Kia and Mount Prospect Volkswagen.

Chuck was born in Chicago on July 14, 1956, to parents Marion and Grace (nee Massarelli) Weck. Chuck was a loving husband, dad, grampy, brother, and prolific rescuer of dogs. He was a dedicated and self-made leader and mentor in the automotive industry; a “car guy” in the truest sense. He was a championship winning racer and speed record holder at Great Lakes Dragaway. He was a friend to so many. He was kind, charitable, and willing to extend himself to anyone in their time of need. He will be greatly missed by all who knew him.

Chuck is survived by his beloved wife of 39 years, Carol (nee Kosek) Weck, his children, Chris (Abby) Weck, Kyle Weck, and Carly Weck, his grandchildren, Charlie and Maggie, and his six dogs. Funeral arrangements have not been set.