CATA News

On June 24, the CATA received information from authorities that auto dealers may again be targeted for mass vehicle thefts. Online chatter from a group that has targeted dealerships in the past had recently increased and it is possible that this group may be mobilizing to steal vehicles from dealers in the immediate future.

Indeed, on June 26, a CATA dealer was the victim of an attempted theft. A southwest suburban dealer thwarted a theft attempt was made at their dealership today around the lunch hour. The male suspect was fully covered (hood, mask and gloves). He was driving a blue Dodge Charger with the following dealer plate number: DL 2181 O. Please continue to be vigilant and take proper precautions to secure the vehicles on your lot.

With auto theft again on the rise, discouraging thieves from entering your dealership site in the first place is the best way to protect your cars.  CATA partnered with Trydon over a year ago when it first saw how ChaseLight reacts to afterhours trespassers and encourages you to consider incorporating their programmable lighting controllers on your outdoor light poles. Click here to see ChaseLight in action and review the attachment for more information and how to contact Trydon.  

New Vehicle Sales Rise on Strong Demand, Better Supply

New vehicle sales in the United States for top global automakers rose in the second quarter on improving supply and strong demand, signaling that rising interest rates have not yet had a meaningful impact on purchases. Vehicle production took a hit after the pandemic disrupted supply of semiconductor chips and other raw materials, hurting automakers' ability to meet the upsurge for personal transport.

For more information, click here. (NADA)

House Subcommittee Votes to Defund FTC’s “Vehicle Shopping Rule”

In late June, a House appropriations subcommittee included language in a broad spending bill that would stop the Federal Trade Commission (FTC) from finalizing, implementing, or enforcing the Motor Vehicle Dealers Trade Regulation Rule (“Vehicle Shopping Rule”). This language is an essential first step for Congress to use its oversight authority and “power of the purse” to protect consumers and dealers from a flawed proposed rule that would needlessly impose unnecessary burdens and costs.

The NADA-backed provision was included in the House Financial Services and General Government (FSGG) Appropriations bill, and the next step is full House Appropriations Committee consideration. Preserving this appropriations language through the House and Senate appropriations process will be a top NADA legislative priority.

NADA, AIADA and NAMAD sent a letter of support to the FSGG Subcommittee highlighting the flaws of the proposed “Vehicle Shopping Rule” and cited the recent Center for Automotive Research study, which states that the FTC’s rule would cost consumers $38 billion.

NADA Legislative staff thanks the dealers and ATAEs who helped gain the critical support of appropriations subcommittee members. We anticipate the FTC appropriations bill will be a key issue during the upcoming Washington Conference, scheduled for September 12-13.

Can You Record Customers?

Questions about the legal implications of recording customers and employees raise complicated, but increasingly relevant issues that are driven largely by state law and practical considerations rather than by federal law.

Read the full NADA article here.

Ninety percent of auto dealers take a property and casualty quote once every two years. When asked why, Dealer Principals, Controllers, and Vice Presidents state that it’s because they’re looking to “keep their incumbent honest” and that they’re perpetually on the hunt for “better coverage.” However, in the end, for better or for worse, it often comes down to price when it’s time to make the final decision. This creates an extremely competitive property and casualty environment, which is highly beneficial to the dealer body. Because of the accessible nature of this competitive arena, Dealer Principals will spend eight to sixteen hours in an attempt to save ten percent on their annual premium. 

Now imagine if dealers treated their F&I providers the same way, and how much better their level of service would be! Instead, Dealer Principals often go five, 10, 15 or even 25 years between looking at F&I providers--a key area of their variable operations vertical that is responsible for driving millions of dollars a year in profit. By allocating just ninety minutes every two years to taking an F&I proposal from another F&I provider, the dealer body could create a similarly competitive environment in the F&I space.

Worst case scenario, by taking a proposal, dealers see their incumbent provider step up their level of engagement, gain insight into cutting-edge industry intel, and gain access to competitive administrative fee structures.

For more information, email Mario Bova at Zurich.

Thank you to the 36 CATA dealers that responded to the recent Fourth of July survey. Of those 36 dealers, 34 reported that they would be closed. Both dealers that said they would be open and reported that they will be operating with shortened hours. All 36 dealers reported that service departments would be closed.

For dealers that have union service departments managed by the Local 701 contract, July 4 is an observed holiday. The other observed holidays in the agreement include New Year’s Day, Memorial Day, Labor Day, Thanksgiving Day, Christmas Eve and Christmas Day. When any one of the above-mentioned holidays falls within or is observed during the work week, employees working on the inventive bases shall be paid 8 or 10 hours, whichever applies, times their applicable rate of pay. Employees employed on an hourly rate shall be paid 8 or 10 hours, whichever applies, times their applicable rate of pay. No holiday pay shall be paid unless the employee works his scheduled workday.

Kelly Webb Roberts, of Webb Automotive Group, was recently elected as the 2023-2024 Chicago Automobile Trade Association (CATA) chairwoman and the 2024 Chicago Auto Show co-chairwoman, making her the first female to hold that position. Webb Roberts will lead a board of 12 dealers and succeeds JC Phelan, who is serving as chairman of the 2024 Chicago Auto Show.

Webb Roberts, comes from a multi-generation automobile family and presides over five dealerships with her family. Webb Roberts was named one of Automotive News’ 40 Under 40 in 2017, and is involved with the General Motors Women’s Retail Network. With the Webb Auto Group, she actively supports Making Strides Against Breast Cancer with the American Cancer Society, Ann and Robert H. Lurie Childrens Hospital, the Alzheimer’s Association, USO, Toys for Tots, in addition to numerous local community organizations.

“The CATA's unwavering commitment to excellence in automotive retailing has been its core value for more than a century. Franchised, new-car dealers are a driving force for local communities, both economically and philanthropically. Our dealerships provide meaningful employment, offer support to local charities and civic organizations, and keep the state of transportation moving forward,” said Webb Roberts. “The CATA, one of the oldest and largest metropolitan dealer associations in the nation, brings our dealerships together with a collective voice and provides resources to help dealers run more effectively. As the Chairwoman of the CATA, I am honored to lead and champion our collective efforts towards continued growth and success.”

Additional executive board officer announcements include: Vice Chairman Jason Roberts, Advantage Acura of Naperville, Advantage Chevrolet, Bolingbrook, Advantage Chevrolet in Bridgeview, Advantage Chevrolet, Hodgkins, Advantage Toyota, Calumet City; Treasurer Ryan Kelly, Kelly Nissan; and Secretary Steve Phillipos, Chevrolet of Homewood, Ford of Homewood. David Sloan and Jennifer Morand remain the association co-presidents and Chicago Auto Show co-general managers.

As part of the CATA elections, incumbents Dan Heller (Heller Ford, El Paso; Heller Lincoln-Chrysler-Dodge-Jeep-Ram, Pontiac), Steve Phillipos, Dan Marquardt (Marquardt Buick GMC of Barrington), and Kelly Webb Roberts (Webb Chevrolet, Oak Lawn; Webb Chevrolet, Plainfield; Genesis of Highland, Indiana; Webb Hyundai of Highland, Indiana; and Webb Hyundai of Merrillville, Indiana) return to serve another three-year term.

When: July 19, 12:00 PM

With the number of customers buying out their lease significantly increasing over the last few years, the short and long-term financial implications on dealerships’ bottom lines are significant. Shrinking lease portfolios puts pressure on dealers to create a sense of urgency with customers to support new vehicle sales and drive customer loyalty.

 When customers buy out their lease, their loyalty is immediately at risk, threatening sales revenue, service revenue and pre-owned inventory. While some dealers are putting off engaging their lease customers until their inventory normalizes or OEM returns, increased competition and sky-high equity emphasize why proactive dealers stay ahead of the curve by maintaining consistent communication with their audience.

 Join automotiveMastermind’s Joshua Dail and S&P Global Mobility’s Matt Derenthal to explore why proactively and consistently engaging lease customers is key to preventing buybacks and achieving sustainable dealership success.

REGISTER HERE

This past month the CATA installed two Level 2+ EV charging stations at the CATA offices in Oakbrook Terrace. As you may know, securing EV charging stations is challenging, but the CATA was able to quickly source and install the chargers though it’s Chicago Auto Show partnership with Autel.

One 2-port charger is located in the parking lot on the west side of the building and the second 2-port charger is located in the indoor parking garage. The chargers are capable of sending up to 19.2 kWh to a single vehicle or 9 kWh to two vehicles. Members visiting the CATA can charge their vehicles by downloading the Autel app, which is available for both Android and iOS phones, or visiting the reception desk for a RFID charge card. The cloud-controlled charging stations can be remotely enabled and allow for the public, employees and customers to have different charging rates.

Demos are available anytime, Monday-Friday from 9a-5p. Please contact Mark Bilek at the CATA to arrange for a time.

For the past few years, ACV Auctions has been a valued asset to CATA Members utilizing their services in the ever-changing used car market.  Signing up with ACV is FREE and has no subscription fees.

 Did You Know:

To join ACV Auctions and/or get more information, please contact Collin Rosenbaum at your crosenbaum@acvauctions.com.

Dear Dealer,

As my term in office as 2022/2023 CATA Chairman comes to an end and I take over responsibilities for the 2024 Chicago Auto Show, I would like to reflect on the many CATA accomplishments during the past year.

After two years of Covid, 2022/2023 brought some normalcy back to the CATA. However, we were not bereft of challenges.

On the legal front, we remain hopeful that the legal challenge to Rivian filed several years ago will ultimately prevail.

We are also extremely supportive of the State of Illinois’ efforts to uphold the recent warranty modifications which have been challenged in a lawsuit filed against the state by Volkswagen Group of America, Inc. The CATA recently responded to a discovery request in this matter.

The CATA also responded to a discovery request in the dealer suit brought against Ford Motor Company challenging the legality of Ford programs involving the sale and distribution of electric vehicles.

Finally, the CATA determined that in the interest of dealer unity it would set forth a generous proposal to settle its ongoing litigation with a group of dealers who defected from the New Car Dealer committee to strike their own agreement with Local 701. That litigation has now been settled, and the CATA has invited each of those dealers to rejoin the CATA and hopefully avail themselves of the benefits the CATA provides.

I think we know that the Chicago Auto Show is the financial engine that drives many of the CATA activities. The 2023 Auto Show was a greatly enhanced version of the two previous (Covid) shows, with increased exhibit space (back to both the North and South halls in McCormick Place,) a well-attended and profitable ($2.6 million) First Look for Charity, seven indoor test tracks and four outdoor test drive opportunities, and greatly expanded media and social media coverage.

Leading the way to the 2023 Chicago Auto Show was a new event, Chicago Drives Electric, held last fall, also with terrific media coverage and available test drives for consumers. This event was so well received by OEMs and customers that it will be repeated this year at the end of September.

The CATA Media Strategy Committee directs approximately $500,000 in CATA funding per year, with extraordinary enhancements provided by our media partners, toward the Chicago Auto Show, Chicago Drives Electric, BBQ for the Troops, DriveChicago, and other worthwhile events.

The CATA Civic and Dealer Relations Committee continued with the sixteenth year of the Chicagoland Dealers Care program, with continued CATA funding and CATA contributions to dealer-sponsored charity events in the community; and with the tenth BBQ for the Troops, which has to date raised over $1 million for the USO.

The CATA Government Relations Committee directs the approximate $130,000 the CATA annually contributes to state and local officials, and well as the funds that NADA annually contributes to federal officials representing Illinois. The Committee also monitors pending bills in the Illinois legislature and consults with our Springfield lobbyist, Scott Marquardt, to take appropriate action as needed. The Committee works hand in hand with NADA, attending the annual NADA Washington Conference, meeting with Congressmen, and encouraging dealers to contribute to NADA PAC.

The CATA Drive Chicago Committee is in the midst of a major restructuring of the DriveChicago website in its efforts to maintain DriveChicago as the definitive website for vehicle purchases in the Chicagoland area.

The CATA Finance, Pension, Audit, and Compensation Committee has worked diligently to find ways to increase CATA revenues and decrease costs, ensuring that the CATA remains a dominant source of dealer benefits in the future. The reduced Board of Directors size and reduced number of staff have led to cost efficiencies and better management. Aligned in this mission, the CATA Member Benefits Committee continually researches and vets allied companies in an effort to provide worthwhile programs and cost efficiencies to CATA members and to the CATA itself.

The CATA Employee Benefits Committee continually seeks out new ways to provide benefits to all CATA members at reasonable costs. To that end the Committee is examining alternative roles that the CATA can play in providing the important member benefits the CATA provides.

The CATA Nominating Committee recently reached out to the entire dealer body, and will continue to do so, to seek out qualified hand raisers to serve on the CATA Board of Directors. The Committee is dedicated to choosing knowledgeable candidates of the highest integrity to serve on the CATA Board.

My appreciation goes out to the 13 members of the CATA Board of Directors who served so diligently this past year; to the CATA staff, especially Jen Morand, who completed her first year as CATA Co-President, Dave Sloan, who will be serving his final year in 2023/2024 as CATA Co-President, and Chis Konecki, who serves as Executive Vice President and is so knowledgeable about the Chicago Auto Show. Also, I am grateful for the continued wise counsel provided by our longtime General Counsel, Dennis O’Keefe.

I congratulate Kelly Webb Roberts on her election as CATA Chairwoman for 2023/2024. Kelly comes from a great automobile family, is extremely able and dedicated, as will provide strong leadership during the upcoming year.

Here is a link to a summary of actions taken by the CATA Board of Directors during the past twelve months.

Sincerely,

J.C. Phela
CATA Chairman 2022/2023