CATA News

The Internal Revenue Service is urging employers to take advantage of the newly extended employee retention credit designed to make it easier for businesses that choose to keep their employees on the payroll despite challenges posed by COVID-19.

The Taxpayer Certainty and Disaster Tax Relief Act of 2020, enacted Dec. 27, 2020, made a number of changes to the employee retention tax credits previously made available under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), including modifying and extending the Employee Retention Credit (ERC), for six months through June 30, 2021. Several of the changes apply only to 2021, while others apply to both 2020 and 2021.

As a result of the new legislation, eligible employers can now claim a refundable tax credit against the employer share of Social Security tax equal to 70% of the qualified wages they pay to employees from Dec. 31, 2020 through June 30, 2021. Qualified wages in 2021 are limited to $10,000 per employee per calendar quarter. Thus, the maximum ERC amount available is $7,000 per employee per calendar quarter, for a total of $14,000 in 2021.

Employers can access the ERC for the 1st and 2nd quarters of 2021 prior to filing their employment tax returns by reducing employment tax deposits. Small employers (those with an average of 500 or fewer full-time employees in 2019) may request advance payment of the credit (subject to certain limits) on Form 7200, Advance of Employer Credits Due to Covid-19, after reducing deposits. In 2021, advances are not available for employers larger than that.

 

Effective Jan. 1, 2021, employers are eligible if they operate a trade or business during Jan. 1-June 30, 2021, and experience either:

 

1. A full or partial suspension of the operation of their trade or business during this period because of governmental orders limiting commerce, travel or group meetings due to COVID-19; or

2. A decline in gross receipts in a calendar quarter in 2021 where the gross receipts of that calendar quarter are less than 80% of the gross receipts in the same calendar quarter in 2019. (To be eligible based on a decline in gross receipts in 2020, the gross receipts were required to be less than 50%.)

Employers that did not exist in 2019 can use the corresponding quarter in 2020 to measure the decline in their gross receipts. In addition, for the first and second calendar quarters in 2021, employers may elect in a manner provided in future IRS guidance to measure the decline in their gross receipts using the immediately preceding calendar quarter (i.e., the fourth calendar quarter of 2020 and first calendar quarter of 2021, respectively) compared to the same calendar quarter in 2019.

 

In addition, effective Jan. 1, 2021, the definition of qualified wages was changed to provide:

 

• For an employer that averaged more than 500 full-time employees in 2019, qualified wages are generally those wages paid to employees that are not providing services because operations were fully or partially suspended or due to the decline in gross receipts. 

• For an employer that averaged 500 or fewer full-time employees in 2019, qualified wages are generally those wages paid to all employees during a period that operations were fully or partially suspended or during the quarter that the employer had a decline in gross receipts regardless of whether the employees are providing services. 

 

Retroactive to the March 27, 2020, enactment of the CARES Act, the law now allows employers who received Paycheck Protection Program (PPP) loans to claim the ERC for qualified wages that are not treated as payroll costs in obtaining forgiveness of the PPP loan.

 

For more information, see COVID-19-Related Employee Retention Credits: How to Claim the Employee Retention Credit FAQs.

 

The COVID-19 pandemic’s impact on the auto industry has been well documented, from massive drops in sales for part of the year to automakers struggling to implement effective rules for plant workers to how companies had to alter the way they do business to survive.

But what has been tougher to track is how it has impacted consumers and if their habits have been changed when it comes to the process of selecting, buying and paying for new vehicles. Deloitte’s newest report, the 2021 Global Automotive Consumer Study, sheds light on what to expect in the near term: people like what’s familiar and it’s going to show up in their buying habits.

"The global automotive industry, like many others, has been profoundly impacted by the pandemic," said Harald Proff, Deloitte Global automotive leader and partner, Deloitte Germany, who led the development of the report, which interviewed more than 24,000 people in 23 countries.

"That said," Proff added, "the momentum toward a more connected vehicle future remains bright and full of promise. Ever stricter vehicle emissions requirements in many markets around the world are also pushing the goal of electric mobility forward. Efforts to realize these technologies open up a new world of possibility."

Familiarity means that the long-awaited push into electric vehicles may take a bit longer than expected, as 74% of U.S. consumers plan to make their next vehicle a traditional car, truck or utility vehicle powered by a gasoline or diesel engine.

The ranges of EVs have been increasing steadily, in many cases putting them on par with gas- and diesel-powered vehicles. But range anxiety still is the biggest impediment to battery-car acceptance, as 28% of respondents said that was their primary reason for not being interested. Further, less than half — 44% — of Americans believed the technology to be "beneficial."

However, among American who want an electric vehicle, it appears an overwhelming majority, 70%, plan to charge that vehicle at home. A reticence about EVs doesn’t necessarily mean a fear of technology, as those intenders said they found advanced driver assistance systems, such as blind-spot detection, very appealing.

Excitement about safer cars through the use of advanced technology isn’t necessarily a guarantee of that same warm fuzzy feeling transferring to the sales process. For the number of people buying vehicles online during the pandemic, it appears that it was done out of necessity more than preference.

Seventy-one percent of U.S. vehicle buyers prefer an "in-person sales experience," the study revealed. The biggest part of that, 75%, want to see and touch the vehicle before they buy it, and 64% wanted some time behind the wheel as well.

"Unlike many other retail sectors that have seen a wholesale shift to online buying, purchasing a vehicle remains a largely personal experience for many consumers," said Karen Bowman, a Deloitte vice chairwoman.

"However, some people will be looking for a virtual sales experience to maximize convenience, speed and ease of use. This will likely result in a more complicated, and potentially costly, set of consumer expectations for dealers to meet at a time when businesses are looking to recover and thrive in the wake of the pandemic."

One area where U.S. consumers were happy to see handled via the internet was vehicle service. The ability to get online and have a car or SUV picked up by a dealer at home or work was appealing, with 46% of respondents in favor of that type of interaction — provided it is free. 

The shift to online purchasing during the pandemic didn’t appear to hinder sales, although the pandemic itself did, as more than one-third of U.S. consumers delayed their vehicle purchase.

 

Dealers are putting into practice in their fixed operations a variety of lessons learned from the coronavirus pandemic, according to panelists at a January presentation by Cox Automotive.

"Service now is about options for the customer," said Josh Aaronson, dealer principal of the Island Auto Group in Staten Island, New York, who spoke Jan. 25. The group counts 31 dealerships and almost $1.2 billion in revenues.

According to the panelists, the options that dealers are providing include what’s now a familiar menu of customer vehicle pickup and delivery and sanitization, as well as a couple of new approaches that help dealers get more value from customer data than what comes in from the service department.

"That’s how we’re operating now," Aaronson said. "Over 60% of customers are never arriving at the dealership" due to pickup and delivery, as well as the ability to pay by phone or online, he said.

Customers who prefer to come in can also visit a dealership for service, drop off their car, get a loaner car and check themselves in and out via kiosk "without talking to a human being," if that’s their choice, he added.

John Malishenko, chief operating officer of Germain Motor Co. of Columbus, Ohio, said his group is now promoting its new service capabilities to all 1 million customers in its files, as the bulk of them haven’t been in to experience service since the pandemic started last year.

"The vast majority have no idea of these capabilities, the things we can do," Malishenko said. The first step was for the group to merge all of its customer data from its various Dealership Management Systems and Customer Relationship Management Systems, from all different brands and suppliers, into a single, cloud-based database.

That was "not too easy, or inexpensive," Malishenko said.

But now that the database is set up, communications are sent to customers consistently across the group and automatically, based on business rules set up by the dealership group, are keyed to where a customer is in their ownership life cycle.

"We can talk to everybody, all the time," he said. 

Damian Mills, CEO of Mills Automotive Group of Raleigh, North Carolina, said customer data from the service department can be used to cross-sell other dealership goods and services, and also to provide a competitive advantage over newcomers such as Carvana that don’t have as many profit centers, or as many different ways to interact with the same customer.

"We may have a customer who comes in with a Toyota, but they also have a Ford F-150. We can service Vehicle A, or Vehicle B. And by the way, we’d like to purchase Vehicle A, if you’d like to upgrade, or just if you’d like to sell," he said in the panel discussion.

Carvana and similar companies are "not concerned with the database of fixing the cars, or selling the parts. They’re only concerned with that one transaction" — that is, the used-car transaction, Mills said, adding that dealerships can turn those broader customer relationships to their advantage. He said, "We need to speak to the people who already know us."

 

Kunes Country Chrysler-Dodge-Jeep-Ram of Woodstock, Kunes Country Ford of Antioch, and Sunrise Chevrolet (Glendale Heights) were named among Automotive News’ 2020 list of the 100 Best Dealerships to Work For.

Kimberly Schimmer, of Schimmer Buick-Chevrolet in Mendota, was among the NADA Academy’s December 2020 graduating class.

 

By Larry Carl, CEO, Automobile Dealers of Greater Kansas City

 

The auto show is one of the most core approaches for automakers to reach auto buyers — there is no denying or refuting it.

The first known auto show held in the United States occurred in 1900 at Madison Square Garden in New York City. And 121 years later, that event and others like it continue to implement the most basic of marketing philosophies: Put the product in front of consumers to see it, feel it, experience it and buy it. 

Over the course of more than a century, we have seen countless approaches to reaching consumers come and go, yet there are some fundamental methods to attracting customers to products that should never fade away. The auto show is one of the most core approaches for automakers to reach auto buyers — there is no denying or refuting it. 

If the ultimate goal of an automaker is to sell a vehicle, it should be presented firsthand to create an in-person, emotional connection that motivates the consumer to purchase. It worked 120 years ago and it still works today. Exiting that tangible platform is a disservice to consumers. 

Using a relevant sports analogy, the ageless quarterback Tom Brady, who is recognized in most circles as football’s Greatest Of All Time, continues to play at a high level, delivering a hapless NFL franchise to the playoffs and a shot at another Super Bowl championship. Critics and experts scoffed at any NFL owner who would invest millions in an ancient player, but his track record of delivering the goods is unmatched. 

Yes, there are numerous younger, flashier, sexier, hipper players out there but none of them have the resume of success as Tom Brady. He is the equivalent of the auto show: He’s there year-in, year-out, providing leadership, wisdom and return on investment. He still brings victories and just because he’s 43 years old doesn’t mean he should be abandoned — and neither should the auto show.

 

By Larry Carl, CEO, Automobile Dealers of Greater Kansas City

 

The auto show is one of the most core approaches for automakers to reach auto buyers — there is no denying or refuting it.

The first known auto show held in the United States occurred in 1900 at Madison Square Garden in New York City. And 121 years later, that event and others like it continue to implement the most basic of marketing philosophies: Put the product in front of consumers to see it, feel it, experience it and buy it. 

Over the course of more than a century, we have seen countless approaches to reaching consumers come and go, yet there are some fundamental methods to attracting customers to products that should never fade away. The auto show is one of the most core approaches for automakers to reach auto buyers — there is no denying or refuting it. 

If the ultimate goal of an automaker is to sell a vehicle, it should be presented firsthand to create an in-person, emotional connection that motivates the consumer to purchase. It worked 120 years ago and it still works today. Exiting that tangible platform is a disservice to consumers. 

Using a relevant sports analogy, the ageless quarterback Tom Brady, who is recognized in most circles as football’s Greatest Of All Time, continues to play at a high level, delivering a hapless NFL franchise to the playoffs and a shot at another Super Bowl championship. Critics and experts scoffed at any NFL owner who would invest millions in an ancient player, but his track record of delivering the goods is unmatched. 

Yes, there are numerous younger, flashier, sexier, hipper players out there but none of them have the resume of success as Tom Brady. He is the equivalent of the auto show: He’s there year-in, year-out, providing leadership, wisdom and return on investment. He still brings victories and just because he’s 43 years old doesn’t mean he should be abandoned — and neither should the auto show.

 

The Chicago Automobile Trade Association this month donated $1,500 to the Do It Stevie’s Way Foundation. The donation came via the CATA’s Chicagoland Dealers Care program in conjunction with a $4,000 donation from Apple Chevrolet in Tinley Park. Through Chicagoland Dealers Care, the CATA matches up to $1,500 when a member dealer donates to local charitable organizations.

The Do It Stevie’s Way Foundation was created in 2010 by Mark and Karen Bajenski, Stevie’s parents, after their son died tragically at age 17. The foundation identifies and directs its resources by teaching young men and women to do things the right way — Stevie’s Way — in the classroom and community, with their families, and on the athletic fields. Based on those values, Do It Stevie’s Way awards numerous scholarships to kids of all ages each year. The foundation also supports a variety of important initiatives ranging from suicide awareness to supporting other families who have lost children.  

"Our motto is ‘Be a team player and make a difference every day,’ just the way Stevie did," said Mark Bajenski. "The foundation doesn’t support just one specific mission. Instead, it promotes helping children lead their best lives so that then, hopefully one day, those children will also become team players and help future generations once they’re able."

"Do It Stevie’s Way has given me a new purpose in life, which is to give back and teach important lessons," Bajenski added.

Apple Chevrolet dealer Principal John Alfirevich has helped support and champion Do It Stevie’s Way since the foundation began 11 years ago.  

"This foundation is unique in that it supports a variety of missions that represent Stevie’s character; it doesn’t just focus on one effort," Alfirevich said. "Giving is receiving in my world, and this cause is very near and dear to my heart." 

Stevie had a passion for baseball and he played for his school, Mount Carmel High School in Chicago, and in a developmental league in Lockport that today is named the Cangelosi Sparks.

Dealerships are closely weaved into the fabric of their local communities, and many individuals and organizations turn to them in times of need. The CATA has been a longtime supporter of local nonprofit organizations including the Do It Stevie’s Way Foundation. Since its inception in 2008, the grassroots Chicagoland Dealers Care program has donated more than $120,000 to local charitable organizations. 

Additionally, since 1992, the association has raised more than $56 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.  

"The CATA’s Chicagoland Dealers Care program not only helps stretch our members’ donation dollars for wonderful organizations like this foundation, it also shines a spotlight on new-car dealers’ positive impact within their communities," said CATA Chairman Kevin Keefe. "We applaud local dealers like Apple Chevrolet for their very generous contributions to their communities and for helping those in need."

For more details on the Chicagoland Dealers Care program, visit www.ChicagolandDealersCare.com. To learn more about the Do It Stevie’s Way Foundation, see www.doitsteviesway219.com.

 

The long-term trend toward electric vehicles continues to solidify. But because of the pandemic, consumer anxiety might be shifting automotive priorities toward familiarity and affordability.

According to a new report from Deloitte, that could be a reason why 74% of U.S. consumers are looking for a traditional internal combustion engine in their next vehicle.

For the report, "2021 Global Automotive Consumer Study," Deloitte surveyed more than 24,000 consumers from 23 countries, seeking opinions regarding issues impacting the global automotive sector.

Those issues include implications of the pandemic on consumer perceptions, the development of advanced technologies and the impact of digital automotive retail platforms.

A major portion of the report covers vehicle electrification and connectivity, but the report also covers vehicle financing trends and future vehicle intentions, noting that in India and the Republic of Korea, about a third of consumers plan to delay the acquisition of their next vehicle. In the U.S., 34% of respondents said the pandemic made them either delay or accelerate the acquisition of their next vehicle.

 

But in the area of electrification, the report notes that before the transportation torch passes from internal combustion to electric powertrains, consumers want more assurance regarding mileage, charging infrastructure rollouts and electric segment affordability.

"While the pandemic continues to play a large role in exacerbating this apprehension, stricter carbon emission regulations on the horizon point to a ‘closing window’ for the traditional ICE segment experience," the report states.

According to the report, only 26% of U.S. consumers are considering alternative engines for their next vehicle.

That is a 15% decline year-over year.

In the U.S. and Germany, battery range is the top concern about EVs. In the Republic of Korea, Japan and India, the lack of charging infrastructure is at the top of consumers’ minds.

Most consumers in the United States, Japan, Germany and India expect to charge their vehicles at home.

But in China, 51% of respondents intended to use available charging stations at work or on the street instead.

 

Perception rises on connectivity

In Asia, consumer perception of connected vehicles appears to be edging up. As many as 83% of Chinese consumers say the technology is beneficial.

But only 44% of U.S. consumers feel that way.

Sixty-four percent of U.S. consumers feel that with increased connectivity, they are most concerned about the possibility of hacking, and approximately the same percentage of consumers in Germany, the Republic of Korea and India feel that way.

Seventy percent of U.S. consumers like advanced vehicle features that promote greater safety capabilities such as blind-spot detection. But 65% of Germany residents say built-in navigation systems are their most important future vehicle option, according to the report.

 

Cost continues as a factor against advanced vehicle technologies. Seventy-four percent of U.S. consumers are not willing to pay more than $500 for infotainment.

 

Harald Proff, Deloitte Global automotive leader and partner, Deloitte Germany, said the pandemic has had a major impact on the global automotive industry.

 

"That said, the momentum toward a more connected vehicle future remains bright and full of promise. Ever stricter vehicle emissions requirements in many markets around the world are also pushing the goal of electric mobility forward. Efforts to realize these technologies will open up a new world of possibility," Proff said in a news release.

 

Financial concerns affect future vehicle intentions

Across the globe, the COVID-19 pandemic is making consumers in many markets rethink when they will buy their next vehicle and the type of vehicle they will buy.

 

Many people are deferring vehicle loan/lease payments. Some intend to acquire a less-expensive vehicle than originally planned.

 

Ten percent of Americans deferred their automotive payment in 2020. But 23% of consumers aged 18-34 did the same.

 

Eighty-four percent of U.S. consumers plan to purchase a similar vehicle in the future. But in India, the pandemic has made 57% of consumers plan to enter a completely different vehicle segment.

 

Sixty-six percent of U.S. consumers remain on the same timelines they originally had for purchasing their next vehicle. But 38% of consumers in India and 32% in the Republic of Korea say they might delay their next vehicle purchase.

 

Another finding of the study is that the COVID-19 pandemic has resulted in more virtual transactions. But because some aspects of the buying process are still difficult to digitize, that reinforces consumers’ desire for an in-person experience.

 

U.S. consumers remain largely in favor of in-person sales experiences. But consumers in India seem the most open to a virtual automotive transaction. Twenty-seven percent of those consumers prefer a fully virtual buying experience.

 

Authorized dealers will remain a part of the virtual buying process. Fifty-nine percent of U.S. consumers prefer to interact with a franchised seller.

 

Karen Bowman, vice chairman of Deloitte and U.S. automotive sector leader, said that unlike many other retail sectors that have seen a shift to online buying, many consumers see purchasing a vehicle as a personal experience.

 

"However, some people will be looking for a virtual sales experience to maximize convenience, speed and ease of use. This will likely result in a more complicated, and potentially costly, set of consumer expectations for dealers to meet at a time when businesses are looking to recover and thrive in the wake of the pandemic," Bowman said.

 

By Eric L. Johnson, Hudson Cook, LLP

 

The general consensus is that a Biden/Harris Administration will mean lots of change for automotive finance. But exactly what types of change and how quickly will that change occur? And just how bad for the industry will it be? If you were waxing nostalgic for an aggressive watchdog and that "regulation by enforcement" we lived through under former CFPB Director Richard Cordray during the Obama Administration, where the Bureau’s success was measured in terms of dollars recovered for the consumer and penalty amounts, you’re in luck!

Let’s start with change at the Consumer Financial Protection Bureau. The bureau’s latest director, Kathy Kraninger, resigned upon Biden’s inauguration on Jan. 20. As President-elect on Jan. 18, Biden announced several appointments, including FTC Commissioner Rohit Chopra to head the CFPB. We should see a gradual move by the Bureau to take a more aggressive stance toward consumer protections; especially given the economic and other effects of Covid-19.

You can expect a renewed focus on fair lending practices in the industry, particularly as it relates to race. We should expect to see more cooperation with state attorneys general and state regulators on these issues.

In an April 2020 letter to Kraninger, Cordray proposed helping avoid vehicle repossessions by working with Congress to impose a moratorium on auto repossessions "for the duration of the crisis and its economic aftermath." In addition, he recommended taking "steps to ensure that consumers facing repossession of their vehicles are informed, treated fairly and have the remaining equity in their car or truck fully applied to the balance of their loan."

He also called for supervision staff to require brief summary reports to monitor industry performance on a biweekly basis — on issues such as call volume, hold times, accounts place in forbearance, accounts missing a payment and other items that may be useful to assess the status of the economic crisis affecting consumers. And, he called for this anonymized data to be made public claiming that "This will help identify the best practices the industry is developing to address the growing economic crisis. The CFPB’s market-monitoring teams were designed for precisely this purpose." Expect a ton more scrutiny by the CFPB on your servicing and collections activities.

 

What about changes at the Federal Trade Commission? You may know that the Commission is headed by five Commissioners, nominated by the President and confirmed by the Senate, each serving a seven-year term. No more than three Commissioners can be of the same political party. The President chooses one Commissioner to act as Chairman. The makeup of the Commission currently is three Republications to one Democrat, and a successor is needed for Chopra (D). Commissioner Rebecca Kelly Slaughter (D)’s term expires September 2022. The Republicans’ terms expire in 2023, 2024 and 2025.

 

All of the Commissioners were appointed at roughly the same time and there will be a period of at least 2 years (barring more resignations) with a Republican majority. Commissioners can only be removed for cause. President Biden can appoint a new Chairman of the Commission; probably a Democrat.

 

I doubt we’ll see a lot of change at the FTC on consumer protection matters, at least not initially. The FTC has certainly taken a more aggressive enforcement posture the past few years and I expect that posture to continue. You may remember that two of the Commissioners issued concurring statements in the Bronx Honda settlement, calling for the FTC to employ its rulemaking authority to combat abuses by auto dealerships. They concluded that an enforcement strategy, by itself, is insufficient. We may very well see some rulemaking authority to combat those perceived abuses by dealers.

 

What about the FTC’s Bureau of Consumer Protection and its current Director? You may remember that this is the Bureau responsible for protecting consumers against unfair, deceptive or fraudulent practices. The current Director has been very effective, but under a Biden/Harris Administration he and other FTC staff may decide to head for greener pastures. If that happens, you can bet your bottom dollar you’ll see more liberal leadership and staff in that Bureau. I expect we’ll see a continuation, and possibly increased focus, by the FTC on dealer safeguards policies, privacy policies and identity theft prevention policies.

 

Finally, there’s the Department of Justice. As I noted above, I expect we’ll see a renewed emphasis on fair lending and racial equity and justice by the DoJ. Biden’s choice to take over as attorney general is Merrick Garland, who is undergoing Senate confirmation. We could see more investigations by the DOJ, leading to more enforcement actions and settlements with dealers and their principals for alleged criminal activity.

 

If you’ve spent the past four years being lax in your compliance efforts, it’s not too late to act. What can you do? If you don’t have one, get a Compliance Management System in place. If you do have a CMS, make sure it’s updated, taking into account the Bureau’s CMS findings for other companies they’ve enforced against or examined and ensure it tracks your actual policies and practices. Review and update, if needed, your Safeguards and Identity Theft Prevention Policy (Red Flags policy). Finally, if you’re a dealer and you haven’t adopted the NADA’s Fair Credit Compliance Program and Voluntary Protection Products Policy, you need to look at doing so. A call to your friendly compliance counsel would be a great start!

 

While 2021 NADA Show registrants won’t be able to convene in-person in New Orleans Feb. 9-11, the auto industry’s "event of the year" will still go on — offering all the benefits the event has to offer, including the opportunity for dealers to get exclusive insights into their respective brands via franchise meetings with OEM representatives.

Over the three-day event, registrants will be able to tune in to more than 100 speeches, panels and interviews. Dealers and their managers also will have access to up to 25 rolling meeting invitations to directly connect with fellow attendees and exhibitors.

Joe Massarelli, president of Liberty Auto City in Libertyville and the National Automobile Dealers Association director who represents his fellow dealers in Cook, DuPage and Lake Counties in Illinois, said he favors the virtual format because it won’t take him or his employees away from the store. He has tasked his employees who register to implement two or three good ideas they glean from the presentations.

"I biasedly, strongly encourage dealers to watch the presentations," Massarelli said.

Registration for dealers who are NADA members is $199; nonmembers cost $399. For allieds, registration is $399. New this year, the NADA is offering group registration rates. Save $50 per registration when 10 or more attendees from a dealership group register.

Mike Stanton, NADA’s president and CEO, said the show’s franchise meetings offer dealers a prime opportunity to connect with OEMs and ask questions. 

"Dealers consistently tell us that franchise meetings are one of the top reasons for attending the Show," Stanton said. "For many dealers, this is the only time they have a chance to directly interact with senior OEM leadership.

"Given the accelerated change of pace for the industry and the country as a whole due to the coronavirus pandemic, a new President and administration, etcetera, senior OEM executives will be providing the latest news and what all these changes mean for the brands dealers sell. Just as importantly, dealers have the opportunity to share with OEMs what is working on the ground at their stores, and what needs improvement."

Stanton said franchise meetings are not like OEM meetings that automakers host over the course of the year. They are dealer meetings, and dealers invite OEMs to participate. It is a unique opportunity for dealers to set the agenda and get answers to their questions, and to discuss the importance of the relationship and how things can improve.

"The meetings are important for OEMs as well," he said. "They provide our auto manufacturer partners with an opportunity to hear directly from the dealer body who are on the front lines with customers every day."

For more information on franchise meetings, including the full schedule, and to register for NADA Show 2021, click here.