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  • Friday, January 20, 2023 9:00 AM | Anonymous member (Administrator)

    It has come to the CATA’s attention that a provider out of Chesterfield, Missouri, is selling customers a “Compass Protection Plan” and inferring that the plan is being recommended by and/or sold through the dealership when this is not the case. The customer of a complaining dealer, which dealer had no knowledge of nor connection to the company selling this product, received a letter stating:

     “[XYZ Dealer] would like to thank you for protecting your [vehicle]. We congratulate your decision to protect yourself from the escalating costs of mechanical repairs.” The false implication that the dealer sold or recommended the product, or was otherwise involved in the transaction, is obvious.

    Furthermore, when this customer attempted to cancel the policy after less than 30 days, he was allegedly given the run-around and told he had to come into the dealership (which didn’t sell the contract) to cancel.

    If any of your customers experience similar issues, we suggest you encourage them to complain to the Illinois Attorney General’s Consumer Protection Division.

  • Friday, January 20, 2023 9:00 AM | Anonymous member (Administrator)

    Volkswagen Group, Inc, (VWGoA) the distributor of Volkswagen and Audi new motor vehicles, parts, and accessories throughout the United States, filed a lawsuit last month in the U.S. District Court for the Northern District of Illinois against the Illinois Secretary of State, the Illinois Attorney General, and members of the Illinois Motor Vehicle Review Board, challenging the constitutionality of the recent warranty reimbursement amendment to the Illinois Motor Vehicle Franchise Act.

    Referring to the Warranty Reimbursement amendment as the “Multiplier Act,” inasmuch as it allegedly “requires motor vehicle manufacturers to compensate dealers for time that the dealers never actually spend performing warranty work”(ie, at 1.5%), VWGoA describes the law as “crony capitalism at work: redistributive legislation that takes hundreds of millions of dollars from some (but not all) motor vehicle manufacturers and, for no public purpose, deposits that money directly into the pockets of politically favored Illinois dealers.” VWGoA claims the law is unconstitutional under the Commerce Clause of the United States Constitution, the Special Legislation Clause of the Illinois Constitution, and the Takings, Due Process, and Equal Protection Clauses of both the US and Illinois Constitutions.

    The lawsuit attacks the very foundation and current relevancy of the Illinois Motor Vehicle Franchise Act, which was initially passed in 1979. The complaint states: “Today, the new motor vehicle market looks very different. Competition among manufacturers is widespread and dynamic, fueled by generational changes in consumer preferences, transformative innovations in electric vehicle technology, and the rise of new entrants (such as Tesla) that are not subject to the statutory restraints that confine legacy manufacturers…[yet] the Motor Vehicle Franchise Act persists, providing Illinois dealers-some of the state’s most remunerative businesses-with greater statutory benefits and protections than virtually any other interest group in any industry, while imposing an array of unusual constraints on manufacturers.”

    One claim made by VWGoA is that when Governor Pritzker signed the “Multiplier Act,” he announced in a press release that the purpose of the Act was to increase technicians pay, but VWGoA alleges that the law neither ensures higher pay for technicians nor compels or incentivizes dealers to increase employee compensation. However, the requirements of the new law were incorporated into the wage provisions of the current 701 contract. Non-union dealers customarily match the 701 contract’s wage provisions in order to stay competitive in such a tight labor market – especially for techs.

    The CATA will be reaching out to the defendants (the Illinois Secretary of State, Illinois Attorney General, and the Illinois Motor Vehicle Review Board) to discuss how the CATA may be of assistance in helping to defend against these meritless allegations.

  • Friday, January 20, 2023 9:00 AM | Anonymous member (Administrator)

    With the CATA Staff moving down to McCormick Place in preparation for the 2023 Chicago Auto Show, the last day for CATA Member Dealers to order dealer forms (odometer statements, used-car warranties, and used-car buyer guides) is Jan. 31.

    Forms must be ordered online through the association’s new member portal, which can be accessed at www.cata.info. If you are receiving this email, you likely have access to the portal. To set or reset your password, click the login button on the top right corner of the site and use the “Forgot Password” link to set/reset your password. Once you have done that, login and click on the “Member Area” in the navigation to access the order form.

  • Friday, January 20, 2023 9:00 AM | Anonymous member (Administrator)

    New links to IRS information on the Inflation Reduction Act’s clean vehicle and refueling infrastructure tax credits, together with updated sample federal EV credit seller report forms (in both PDF and Word versions), have been posted to the NADA Regulatory Affairs Alternative Fuel Vehicle and Refueling Incentive webpage (NADA login required).

    NADA has created the 2023 IRC Section 30D Clean Vehicle (NADA login required) form for qualifying new vehicles and the 2023 IRC Section 25E Previously Owned Clean Vehicle Tax Credit Report for used vehicles as templates for dealers to provide to their customers and file with the IRS. 

    In addition to becoming familiar with this information, dealers should pay close attention to any EV tax credit communications they receive from their OEMs and the finance sources with whom they work.

    Finally, consumer leases may also qualify for tax credits. More information can be found here. The IRS released a list of eligible OEMs here.

  • Friday, January 20, 2023 9:00 AM | Anonymous member (Administrator)

    The National Automobile Dealers Association (NADA) issued its analysis of 2022 U.S. auto sales and the economy.

    2022 ended with new light-vehicle sales reaching 13.7 million units, the lowest full year sales total since 2011. Year-over-year 2022 sales decreased 8.2% compared to 2021 with the decrease primarily attributed to the ongoing semiconductor microchip shortage and additional supply chain disruptions.

    In 2022, light-trucks accounted for nearly 80%, 79.4%, of all new vehicles sold, up 1.6% from 2021. Crossovers remained the most popular segment representing 45.2% of all new light-vehicles sold. Alternative fuel vehicles also gained market share with sales of hybrids, plug-in hybrids (PHEVs) and battery electric vehicles (BEVs) accounting for 12.3% of all new vehicles sold, an increase of 2.7% compared to 2021.

    Franchised dealerships nearly doubled the number of BEVs they sold in 2022, reaching 259,728 in 2022, an increase of 92.1% compared to 2021. Franchised new-car dealerships captured 35.2% of the total new vehicle BEV market with continued BEV sales growth in 2023 as new models from legacy automakers hit showrooms and more BEV inventory is available.

    When contrasting vehicle sales to inventory, inventory levels at the end of December 2022 totaled 1.67 million units, a 49% increase compared to the total 1.12-million-unit inventory at the end of 2021.According to Wards Intelligence, North American light-vehicle production is expected to total 14.2 million units in 2022 with production forecasted to rise to 15.4 million units in 2023 as supply chain issues improve gradually.

    Read the full article here: NADA Issues Analysis of 2022 Auto Sales and 2023 Sales Forecast | NADA

  • Friday, January 20, 2023 9:00 AM | Anonymous member (Administrator)

    The Chicago Automobile Trade Association, producer of the Chicago Auto Show, exclusively invites you to attend the show’s Social Media Preview on Friday, Feb. 10 (8 a.m. – 2 p.m.). Many automakers are planning special events to showcase their latest vehicles, innovative technology, new safety features and industry trends. Click here to register.

    This is a great opportunity to gather content for your brand(s) – especially geared towards a social media audience – while seeing the latest from the auto industry before the public show opens the following day.

    Secondly, please consider adding the 2023 Chicago Auto Show and First Look for Charity website graphics and social media assets to your dealership’s website and social media pages. We’ve uploaded all assets here including graphics, photos and videos.

    Please reach out to Hayley Feichter with any questions.

  • Friday, January 20, 2023 9:00 AM | Anonymous member (Administrator)

    Tickets and coupons that admit the holder to the 2023 Chicago Auto Show free or at a reduced price can be ordered by CATA members using the order form posted at www.CATA.info.

    The passes promote goodwill with customers and even can help persuade a prospect to close a deal. Two kinds of passes are available, General Admission tickets and Weekday Discount coupons. The former, which costs CATA members $7 each for a minimum 100 tickets, admits the holder to the auto show free, without a box-office wait. The coupon costs members $100 for 100 and admits the holder for $10 during the week. Regular adult admission is $15.

    Click here to download the order form.

  • Friday, January 06, 2023 9:00 AM | Anonymous member (Administrator)

    The IRS has released the following information and guidance on Clean Vehicle Credits:

    IR-2022-231: IRS releases frequently asked questions about clean vehicles credits for new, previously owned and commercial clean vehicles

    FS-2022-42: Frequently asked questions related to new, previously-owned and qualified commercial clean vehicle credits

    IR-2022-232: Treasury, IRS issue guidance on their intent to publish regulations regarding clean vehicles

    Notice 2023-1: informs taxpayers that the Department of the Treasury and the Internal Revenue Service (IRS) intend to propose regulations addressing the definitions of certain terms in respect of the credit available under section 30D of the Code, and lays out the expected content of those regulations. The proposed regulations will include definitions of the following terms, which are relevant for new clean vehicles placed in service after December 31, 2022:

    1. Final Assembly;
    2. North America;
    3. Manufacturer’s Suggested Retail Price;
    4. Classifications for categories of vehicles, including vans, sport utility vehicles, pickup trucks, and other vehicles; and
    5. Placed in service.

    Notice 2023-9 will be in IRB: 2023-3, dated January 17, 2023.

    IR-2022-233: Treasury, IRS issue guidance on the incremental cost for the Commercial Clean Vehicle Credit

    Notice 2023-9: informs taxpayers that based on analysis by the Department of Energy of representative qualified commercial clean vehicles and comparable internal combustion engine vehicles, the Department of the Treasury and the Internal Revenue Service (IRS) have reviewed the incremental cost for all street vehicles in calendar year 2023. This analysis shows that the incremental cost of all street vehicles (other than in the case of compact car PHEVs) that have a gross vehicle weight rating of less than 14,000 pounds will be greater than $7,500 in calendar year 2023. Accordingly, the incremental cost will not limit the available credit amount under § 45W for street vehicles (other than compact car PHEVs) that have a gross vehicle weight rating of less than 14,000 pounds and are placed in service in calendar year 2023. 

    For compact car PHEVs for which the incremental cost was calculated to be less than $7,500, the Treasury Department and the IRS will accept for vehicles placed in service during calendar year 2023 a taxpayer’s use of the incremental cost published by the DOE in calculating the § 45W credit amount.  In addition, this analysis provides an incremental cost for several different classes of street vehicles with a gross vehicle weight rating of 14,000 pounds or more in calendar year 2023. The IRS will accept a taxpayer’s reliance on the incremental cost published by the Department of Energy for the appropriate class of street vehicle. 

    NADA has also released the following:

    A new NADA Regulatory Affairs alternative fuel vehicle and refueling incentive webpage focuses on the Inflation Reduction Act text credits for clean vehicles and refueling infrastructure that start to kick in as of January 1, 2023. The webpage contains sample Seller Report forms and a link to a recordingof NADA’s December 27 Webinar on these tax credits. Dealers should also review important new IRS information on these credits and look out for brand-specific EV tax credit communications from their OEMs.

  • Wednesday, January 04, 2023 10:43 AM | Anonymous member (Administrator)

    The maximum amount that Illinois dealers can charge in 2023 for documentary preparation fees is $347.26, the Illinois attorney general’s office announced Dec. 13.

    The $23.02 increase over the 2022 maximum fee reflects a 7.1-percent rise in the federal Consumer Price Index for the 12-month period ending Nov. 30. The index is tracked by the U.S. Department of Labor. As always, the DOC fee is taxable and must be substantiated upon request by the attorney general’s office.

    The CATA is developing a poster about the DOC fee that dealer members can display. On the poster, the DOC fee amount is left blank for dealers to fill in; any amount up to the maximum allowed may be charged, but all customers should be charged the same amount. Systematically charging one group but not another — all males but no females, for instance — could bring charges of profiling.

    Two copies of the poster will be mailed to dealers later this month. For limited additional copies, call the CATA at (630) 495-2282.

    IMPORTANT: The new maximum fee cannot be charged before Jan. 1.

  • Thursday, December 22, 2022 2:46 PM | Anonymous member (Administrator)

    The 2023 What Drives Her program returns to the Chicago Auto Show Social Media Preview held Feb. 10 at McCormick Place. This program, now in its fifth year, celebrates women in the industry who are deserving recognition.

    At a local level, the Best Retailer award calls on CATA dealers to nominate an extraordinary female at your dealerships.  

    Best Retailer Award Description: Employed by a Chicago-area dealership, this person demonstrates a high level of commitment and drive to any task at hand, whether that’s in sales, service, finance or technical support.

    Last year’s award recipient was Megan Deters, sales manager at Brilliance Honda.

    “Megan has worked her way up in this business through hard work, talent and compassion for Brilliance Honda customers,” said Kevin Keefe, owner of Brilliance Honda, who nominated Deters for the award. “One of the faces of Brilliance Honda, Megan is an incredible retailer and one with world class customer satisfaction skills. She brings a positive outlook every day to work and it is contagious amongst the team.”

    Nominations are now open for the 2023 awards. Please submit your nominations by January 9.

    Click here to submit your nomination.


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