CATA News

New-vehicle prices fell in January with weaker retail demand. Incentives relative to price reached the highest level since July 2021. Discounting relative to the manufacturer’s suggested retail price (MSRP) has decreased slightly to nearly half of what it was in 2019 after being nonexistent a year ago.

Used-vehicle prices were flat again in January, as used retail sales in January improved over December but were down slightly year over year with harsher winter weather this year.

Consumer credit growth slowed significantly in December as consumers pulled back on all types of credit. Access to auto credit declined in January as credit tightened across all channels and across most lender types, according to the Dealertrack Credit Availability Index published this morning.

Auto loan performance deteriorated in January as delinquencies and defaults increased.

Automotive Market Weekly Summary Link (5-min read): https://www.coxautoinc.com/market-insights/auto-market-weekly-summary-02-12-2024/.

Chicago Auto Show organizers, in partnership with A Girls Guide to Cars, held the seventh annual What Drives Her program during the show’s Media Preview on Thursday, Feb. 8. Industry leaders from across the country came together for a robust discussion and award recognition ceremony to highlight women in four different categories: Industry Trailblazer, Best in Craft Media, Automotive Ally and Best Retailer. This year’s awards also recognized an industry leader who has lifted others up with the 2024 Lifetime of Inspiration award. The program gives industry leaders a stage to share trends, stories and personal anecdotes of the integral role that women hold in the auto industry.

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This year’s program, presented by Nissan and sponsored by CDK Global, brought female executives to the Chicago Auto Show stage presenting research centered on female purchasing power and trends. The panel, titled “What Drives Her…To Buy a Car,” was moderated by Kathy Gilbert, senior director minority dealer and women retail, CDK Global. Panelists included Amy Emmatty, CRO, Productions Plus; Trudy Hardy, vice president and region Americas head, BMW Motorrad; and Trisha Jung, senior director for EV strategy and transformation, Nissan.

“It’s humbling to see just how What Drives Her has become a cornerstone event of the Chicago Auto Show’s Media Preview,” said Jennifer Morand, co-founder of the What Drives Her program and general manager of the Chicago Auto Show. “To see women – and men – come together in support of the extraordinary females who are shaping our industry and driving change has been incredible.”

The 2024 winners for each category are as follows:

Best Retailer: Gabrille Abinion, general manager, Fox Valley Volkswagen, has always been driven and passionate following her father’s footsteps in the automotive industry. In 2017, Abinion joined her family’s auto group as an Operation Manager. This led to an opportunity to become the general manager of Fox Valley Buick GMC. It was at this time that she was introduced to General Motors (GM) Minority Dealer Development program through her Dealer 20 group and is now a member of the GM Dealer Development National Candidate Pool. In efforts to diversify her experience within the Auto Group’s portfolio, Abinion is now the General Manager of Fox Valley Volkswagen. She has helped her Volkswagen stores to set records and sales, as well as breaking the record for Service & Parts growth of all time, three-times in 2023.

“Thank you so much for this incredible honor,” said Abinion. “My dad was an immigrant from the Philippines when he came to this country. This changed everything for my family. Thank you so much for your support.”

Best Retailer finalists included: Amanda Pickett, BDC manager/finance manager, Advantage Chevrolet Bridgeview; Jennifer Tonelli, controller, Mike Anderson Chevrolet of Merrillville.

Lifetime of Inspiration: This special award was presented by the CATA’s Jennifer Morand to the organization’s longtime president, Dave Sloan. “It is with great pleasure and a deep sense of gratitude that we present the Lifetime of Inspiration Award to a remarkable leader and mentor, Dave Sloan,” said Morand.

“Dave is not just a name associated with the Chicago Auto Show, he is synonymous with dedication, leadership and innovation. As many of you may know, Dave has been a driving force behind the Chicago Automobile Trade Association, producer of the Chicago Auto Show, and has devoted more than 30 years to the local dealers and the show. Under his leadership, the show has grown and evolved to be the premier consumer auto show in the country.” Morand continued, “What sets Dave apart is not just his professional accomplishments, but the legacy of mentorship he leaves behind. It takes a special kind of leader to recognize the potential in others. I personally am so grateful for Dave and his vision of the future of this organization and show. Even though it’s bittersweet, we all wish him the best as he will retire in April. In recognition of Dave’s lifetime of inspiration, dedication and visionary leadership, it is my privilege to present him with the What Drives Her Lifetime of Inspiration Award.”

The U.S. Department of Labor (DOL) has unveiled its semi-annual regulatory agenda. The agenda sets an April 2024 date for release of the DOL’s anticipated final rule.

The DOL has released its proposed rule Defining and Delimiting the Exemptions for Executive, Administrative, Professional Outside Sales and Computer Employees. As proposed, the rule sharply increases the minimum salary requirements for the Executive, Administrative, and Professional (EAP) exemptions to apply. The salary threshold would increase from the current $684 per week ($35,568 per year) to $1,059 per week ($55,068 per year). The minimum salary for application of the Highly Compensated Employee (HCE) exemption would jump from $107,432 per year to $143,988 per year. However, the DOL has indicated the actual salary threshold will be based on earnings data as of the date the final rule takes effect — which means the salary floor may be even higher than the projected $55,068. That could lift the operative threshold to more than $60,000 annually.

Whether the DOL will meet its April 2024 target date remains to be seen. The DOL will have to review more than 33,000 comments received in response to its notice of proposed rulemaking, and to address substantive comments in the final rulemaking. It’s also uncertain how closely the final rule will conform to the rule as proposed, and when the final rule, once published, will take effect. The DOL’s proposed rule did state the rule would become effective 60 days after publication of a final rule (the minimum timeframe mandated for “major” rules under the Congressional Review Act). The DOL specifically sought comments on the proposed effective date and on whether to apply different effective dates to different provisions of the proposed rule. (Past rulemaking is not a useful predictor: the DOL’s Obama-era white-collar rule revision took effect more than 6 months after the final rule was issued; the Trump DOL’s final rule took effect 3 months after publication.)

The U.S. Department of Labor (DOL) has issued a final rule to clarify who is an independent contractor under the Fair Labor Standards Act (FLSA). The Final Rule also rescinds a 2021 rule in which two core factors-control over the work and opportunity for profit or loss-carried greater weight in determining the status of independent contractor. The 2021 rule, which is still in effect, made it easier for employers to classify workers as independent contractors, rather than as employees.

Join Ms. Jamie M. Hasty, Vice President of SESCO Management Consultants, to review how this change in regulation impacts your organization. She will discuss the specific changes to the regulation with a focus on the six (6) determining factors for an Independent Contractor. Further, she will explain the importance of this change and how your organization can review and gain compliance with the DOL. Last, she will cover a few basics on Wage and Hour compliance and review how the FLSA play a part in this upcoming change.

Presenters include:

Tuition:

(Tuition includes a copy of the PowerPoint presentation and live recording emailed to registered individual(s).)

Schedule:

Please click HERE to register for this special webinar.

Automotive News is seeking young standouts making an impact at dealerships nationwide. For the 13th consecutive year, Automotive News will feature honorees in a special section on July 10. If you are under 40 and making things happen at a dealership, or if you know someone who is, we want to hear about them!

Deadline: March 15, 2024. Nominees must be born after July 8, 1984. Only one nomination is needed for each nominee.

Click HERE to nominate someone today!

The 2024 Chicago Auto Show is officially opened to the public on Feb. 10 and continues to run through Monday, Feb. 19, Presidents Day, at McCormick Place.

“We are excited to once again open the doors on another fun-filled show,” said Chicago Auto Show Chairman JC Phelan. “The Chicago Auto Show is a winter tradition for so many and we look forward to welcoming hundreds of thousands of auto enthusiasts and families alike to McCormick Place over the next 10 days.”

The 2024 show features many interactive elements and engaging activations, including three indoor test tracks and three outdoor ride-and-drives.

Indoors, attendees can take a ride on the expanded Chicago Drives Electric EV Track, featuring latest EVs from BMW, Cadillac, Chevrolet, Ford, Kia, Lucid, Nissan, Tesla and Volkswagen. Ford presents “Built Wild” showcasing the capability of Ford’s Bronco family of vehicles. At the Hyundai track, attendees can experience the Kona Electric, IONIQ 5 and IONIQ 6 first-hand, which participants will be driven by a professional driver around the course highlighting the vehicle’s awarding winning features.

In addition to the indoor test tracks, manufacturers will offer plenty of opportunities for fans to jump behind the wheel and take a test drive outdoors on city streets. Participating brands include Ford, Kia and Subaru.

Tonight, the final Friday of the show, Friday Night Flights – a local craft beer sampling event inside the show – will take place from 5-8 p.m. Tickets can be purchased online or onsite at the box office.

The final day of the show, Feb. 19, is Family Day hosted by the Daily Herald. The day will feature fun-filled activities for children and families. Visit the website for more information.

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Joseph Alfirevich, 90, of Homer Glen, was born on January 5, 1934, and passed away peacefully on February 10, at the age of 90. Affectionately known throughout his life as “Alfee,” he was the long-time owner of Apple Chevrolet in Tinley Park.

As Alfee's dealership business grew, so did his responsibilities to the auto industry he loved. He served on the board of directors for the Chicagoland and NW Indiana Chevrolet Dealers Association from 1985 to 1998 where he was also elected vice president of the group’s advertising association (LMA). Additionally, he was a board member of the Illinois Automobile Dealers Association (IADA) from 1989 to 2013, serving as the organization’s Chairman in 1997.

Joe’s son, John (also affectionately known as “Alfee”), has taken over as owner of Apple Chevrolet and continues his father’s legacy. John Alfee was a former CATA Board Member and follows in his father’s footsteps as current IADA Chairman.

Read Joe’s full obituary HERE.

[Source: Crain’s Chicago Business} A decade ago, social and digital media were considered serious threats to the [Chicago Auto] show’s future. With a new generation of consumers negotiating to buy cars online and not visiting traditional retailers at all, why visit a trade show? But crowds were up by nearly 100,000 last year and are expected to be up close to another 100,000 this year. Social media has only expanded the show’s reach.

In preparation for the Chicago Auto Show, the offices of the Chicago Automobile Trade Association will close on Feb. 1. The office will reopen Feb. 20. During that time, no dealer forms will be shipped. However, office staff will be available for questions via CATA’s phone number, 630-495-2282. All staff extension numbers will be functional as well.