CATA News

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Every year around this time people gather around their televisions or take an extended lunch break at work to see how their college basketball brackets are doing. The NCAA College Basketball Tournament is an exciting time for people to show off their school pride and to root for “Madness”. For years the tournament has been called “March Madness” because every team has a chance to win a game despite the size or basketball ranking of the universities playing.

But did you know that the term “March Madness” became popular because of a car dealership?

In the 1982 tournament, Brent Musburger was working at the local CBS affiliate in Chicago where he saw “March Madness” in an ad from a local auto dealer. The dealer was tying in the local high school basketball tournament with a marketing campaign to sell new cars. Musburger started using the catch phrase during the tournament and it stuck.

The phrase March Madness can also be traced back to 1908 when Henry V. Porter of the Illinois High School Association started referencing the local high school basketball tournament in an essay entitled March Madness, and a poem “Basketball Ides of March”.

Although there have been numerous legal battles regarding ownership of the term over the years, the NCAA legally trademarked the phrase in 2000.

So, as you keep track of your brackets and watch the games this year, just know that the multi-million-dollar phrase was made popular thanks to a local car dealership.

With the Chicago Auto Show in the rear-view mirror, CATA offices and operations are back to normal. Office hours are 9 a.m. – 5 p.m. Monday through Friday. Dealer forms are available for order via the association’s membership portal, www.cata.info. For portal login information, to renew membership dues or to reserve meeting space, call the CATA office at (630) 424-6082.

The BBB has become aware that some dealers may be lowering the amount of their advertised prices by including federal tax credits that are available for certain electric vehicles (EVs) and only to certain consumers who qualify. An example would be the following:

Dealers are prohibited by rule 475.310 from advertising prices that are not available to consumers. The rule states, “Purchasers shall be able to purchase all vehicles described by the advertisement at the advertised price.”

The sale price of $52,000 is not available to purchasers for many reasons.

First, tax credits are not manufacturer or dealer discounts that are applied at the time of sale, creating an immediate savings to consumers. Taxpayers who qualify may claim a tax credit at the time of their annual income tax filing but not before that. 

In addition, taxpayers may qualify for limited amounts of the up to $7,500 federal tax credit because individuals are entitled to a tax credit amount only to the extent of their income tax liability with a cap of $7,500 for the taxable year. In other words, consumers must owe money to the IRS to claim a tax credit.      

There are also income caps to qualify for the credit, as well as restrictions based on where the vehicle is manufactured and the amount of domestic content.

Most consumers will not qualify for the entire $7,500 tax credit, if at all.

Third, tax credits apply only to certain EVs that meet precise standards set out in the legislation creating the tax credits. Non-qualifying EVs do not provide tax credit to consumers. The limitations on the types of EVs that qualify for the tax credit are numerous. 

There will soon be additional qualifications for batteries installed in EVs, making the tax credit less available.

As a result, dealers should not reduce their advertised price by the amount of any tax credit because that reduced price is not available at the time of sale. Moreover, not all consumers or vehicles will qualify..  

The BBB suggests that dealers should certainly advertise the availability of tax credits to fully inform consumers that they may apply to certain vehicles and that consumers must first qualify to receive them. Well-crafted disclosures are important. However, any tax credit amount must not be included in the advertised sales price.

The BBB will notify dealers when such price advertisements come to the attention of the BBB in an effort to preserve a marketplace that is fair to all dealers and truthful for consumers. The BBB remains committed to ensuring that all dealers compete on a level playing field as we have for the duration of the BBB/CATA advertising review program. As most dealers know, the BBB/CATA advertising review program has existed since 1996 and has provided valuable notice to dealers when there may be advertising issues that impact the Illinois Motor Vehicle Advertising Regulations which are enforced by the Office of the Illinois Attorney General. These regulations were developed with Illinois dealer input and reflect standards that the dealer community considered important to create a fair and truthful marketplace for business and consumers. 

The BBB is proud to work continuously since that time to assist dealers with respect to these rules.

Patricia Kelly, BBB Senior Counsel, can be reached with questions at pkelly@chicago.bbb.org.

The 115th edition of the Chicago Auto Show concluded on Monday, Feb. 20 after a successful 10-day run at McCormick Place that saw a dramatic increase in overall attendance compared to the previous year. The only major auto show not to miss a beat as a result of the pandemic, the Chicago show grew back to its traditional two-hall footprint in 2023 and welcomed more than 300,000 total attendees—100,000 more than the previous year.

“The buzz on the show floor this year was palpable,” said 2023 Chicago Auto Show Chairman Kevin Keefe. “You could just feel the energy and excitement from everyone that the Chicago Auto Show is not only back, but back in a big way. We have kept our eye on the consumer since day one to ensure this show remains a high-quality, fun event for attendees of all ages, and we’re proud to see this strategy paid off,” Keefe continued.

“Not missing a show during the pandemic has proven critical to the momentum we’re enjoying now,” said Chicago Auto Show Co-General Manager Dave Sloan. “The goodwill we generated from the Special Edition Chicago Auto Show we staged in the summer of 2021 continues to pay dividends.”

The longest-running auto show in North America returned to a two-hall footprint this year filled with top-tier exhibits by global automakers, new vehicle introductions that made worldwide or national debuts, a host of interactive exhibits, indoor test tracks and outdoor test drive opportunities.

The 2023 show received significant vehicle introductions, including the 2023 Jeep Wrangler Rubicon 20th Anniversary editions, 2024 Subaru Crosstrek, 2024 Toyota Grand Highlander, 2024 Volkswagen Atlas and 2024 Volkswagen Atlas Cross Sport.

Notable new vehicles at the show included the BMW XM, Cadillac LYRIQ, Chevrolet Blazer EV, Chevrolet Corvette E-Ray, Chevrolet Equinox EV, Chevrolet Trax, Dodge Hornet, Ford Mustang Dark Horse, Honda Accord, Honda Civic Type R, Honda CR-V, Honda Pilot, Hyundai IONIQ 6, Lamborghini Countach, Lexus RX, Lexus RZ, Maserati MC20 and Toyota Prius. In addition, concept cars were prominently on display and included the Buick Wildcat, Chrysler Airflow, Dodge Charger Daytona SRT and Ram Revolution.

The show saw support from new and returning sponsors. 2023 premier partners included Autel, Cars.com, and Powering Chicago. Official sponsors included ComEd, NASCAR, and Wintrust.

Whether it's having fun with an off-road experience, learning about the capabilities of a pickup truck or taking an EV for a test drive for the first time, the show’s seven indoor test tracks and four outdoor test drive experiences offered more opportunities than ever before for consumers shop, learn and play. Across the 11 ride-and-drive opportunities, the show produced nearly 150,550 in-vehicle driving experiences. 

“In speaking with the manufacturers that participated in an indoor test track and/or outdoor test drive, they noted that the total number of rides during our show far exceeded brand expectations,” said Jennifer Morand, Chicago Auto Show co-general manager. 

The 2023 show also marked the return of fan-favorite specialty events on the show floor. The Toyota Miles Per Hour run hosted more than 500 runners on opening weekend for a 60-minute, 2.4-mile loop through the show floor—even on the Chicago Drives Electric EV track—where participants could record their own miles per hour. Toyota awarded the top three winners for men’s and women’s times at its post-run celebration in its display; winners clocked in at more than nine miles. Chicago Friday Night Flights, a craft beer sampling event within the show, returned for another round with a total of 10 local breweries on hand. More than 650 attendees purchased tickets to sample craft beers as they took in the show. 2023 marked the third year of the beer sampling event, drawing more than double the crowd from 2020.  

The Chicago Auto Show is already underway with plans to return to McCormick Place in February 2024. The Media Preview will be Feb. 8-9; First Look for Charity will be the evening of Feb. 9; and the public show will be Feb. 10-19, 2024.

The Chicago Automobile Trade Association continues to show their care and support to the community by sponsoring Versiti Blood Center of Illinois and A Safe Haven food drive at the 2023 Chicago Auto Show. Emblematic of the new-car dealer members’ dedication to the community, the Chicago Auto Show’s annual blood drive and food drive each resulted in remarkable success.

Versiti’s 2023 Chicago Auto Show Dennis Buckley Memorial Blood Drive ran from February 11-20, during the public run of the show. Dennis Buckley, a former staff member of the Chicago Automobile Trade Association, helped lead the auto show and was a driving force behind the blood drives. After passing away from cancer in 2004, the blood drive was named in his honor. It continues as the largest annual blood drive in the state of Illinois.

This year at the 2023 Chicago Auto Show, the Dennis Buckley Memorial Blood Drive collected an extraordinary 1,047 units of blood. Of the 928 people that registered, 658 of those individuals gave blood for the first time and 370 were diverse donors.

 “We see a lot of first-time donors at the auto show, said Amy Smith, Versiti’s Director of Donor Services Operations.  “People are coming for the opportunity to look at the cars, but end up giving to a lifesaving mission while they are on the show floor.”

“Out of all of our special event drives, we see the highest amount of first time and diverse donors that come through the auto show,” said Smith. “There is a great mix of diverse communities that come to the auto show and they tend to be the most giving.”

Smith explains that diverse donors are crucial because Versiti “ensures the right blood types and matches as we look at rare patients that need blood in the Black and Brown communities. We are constantly in need of O-Positive and O-Negative types of blood, as only 4% of the Black and Brown communities are giving blood.”

A Safe Haven Foundation helps Chicagoans experiencing homelessness become self-sufficient through housing, healthy lifestyles, and employment. The new-car dealers of the Chicago Automobile Trade Association recognize the importance of helping those in their communities. With that, the Chicago Auto Show partnered with A Safe Haven’s Community Food Pantry that distributes food to families in Chicago.

From February 15 through the 17, individuals who brought three cans of food to the Chicago Auto Show received a coupon of $5 off a full-price adult ticket. All the food brought was donated to A Safe Haven and will be distributed to families five miles from McCormick Place. Through the kindness of attendees of the Chicago Auto Show, the amount of food collected doubled from last year. This year, seven gaylord boxes were filled to the top. This equates to four tons of food and provides nutritious meals to thousands of families in need.

"A Safe Haven is grateful to the Chicago Automobile Trade Association for their sponsorship of the Chicago Auto Show Food Drive and their continued partnership in addressing the issue of hunger in our community, said Mark Mulroe, A Safe Haven’s president.  “Each year, we receive thousands of canned goods to aid our pantry and other local food pantries in North Lawndale. This support helps us ensure that individuals and families experiencing homelessness and food insecurity have healthy meals and do not go hungry!”

“I am so humbled to be part of a group of car dealers that takes pride in giving back to the community and for making all of this possible for more than two decades, said Kevin Keefe 2023 Chicago Auto Show chairman.

CATA is hosting RMP’s Tax, Titling & Registration Seminar consisting of the most current and accurate SOS (Secretary of State) and DOR (Department of Revenue) processes. This informative two-hour seminar consists of everything from license and titling basics all the way to more advanced deal processing. Topics include properly titling, registering and remitting taxes to remain compliant with SOS and DOR, adjusting any corrections on completed ERT applications and tips on streamlining your dealership tax, title and registration processes.

Ali Pouliot and Joey White from Vitu will be available to answer any questions during and after the seminar. Lunch will be provided.

CLICK HERE TO REGISTER

U.S. Senators Joe Manchin (D-WV) and Shelley Moore Capito (R-WV) introduced the bipartisan Supply Chain Disruptions Relief Act to provide tax relief to auto dealers experiencing inventory shortages due to global supply chain issues.

“Russia’s war in Ukraine has drastically disrupted supply chains around the world, and it is critical that we protect American auto dealers from the increased financial burdens of inventory shortages. West Virginia has always been an automotive powerhouse, and I’m proud to join this bipartisan effort to provide tax relief to auto dealers across the state and country,” Senator Manchin said. “I encourage my colleagues on both sides of the aisle to support this important legislation, and I will continue advocating for the economic success of American auto dealers.”

“Soaring prices and supply chain disruptions have created significant strain on American families. I’m proud to join with a bipartisan coalition of colleagues to put forth a solution that would bring needed relief, and address West Virginians’ issues regarding vehicle purchases,” Senator Capito said.

The bill would allow new vehicle dealers to delay the recognition of income triggered by the Last-In First-Out (LIFO) recapture for tax years 2020 and 2021, when dealers faced uncontrollable, pandemic-driven inventory shortfalls of new vehicles.

 Specifically, the bill would:

• Provide a statutory determination that the requirements for a qualified liquidation under Section 473 have been satisfied for new motor vehicle dealers that have had a reduction of new vehicles held in LIFO inventory;
• Expand the period to replenish inventory and compute LIFO reserve/LIFO recapture until the tax year ending before January 1, 2026; and
• Direct Treasury to provide regulatory guidance to enable dealers to calculate LIFO during the expanded replacement period.

The Media Preview of the 2023 Chicago Auto Show played host to several significant world introductions and features keynote addresses from top industry executives. Held Feb. 9 and 10, the Media Preview saw the introduction of the Toyota Grand Highlander, Subaru Crosstrek and Volkswagen Atlas and Atlas Cross Sport. In addition, Jeep made news with the reveal of it’s 20^th anniversary Wrangler Rubicon and Ram announced the Ram 1500 REV and followed up with a Super Bowl commercial.

Two key industry executives also made news during the Media Preview. Hyundai Motor North America’s Vice President, Product Planning and Mobility Strategy Olabisi Boyle formally kicked off the Media Preview at the Midwest Automotive Media Association Breakfast. Following up on that, Subaru of America President and CEO Tom Doll addressed more than 600 people from the Economic Club of Chicago.

Chicago Auto Show organizers, in partnership with A Girls Guide to Cars and Women in Automotive, held the sixth What Drives Her program during the show’s Media Preview on Friday, Feb. 10. Industry leaders from across the country came together for a robust discussion and award recognition ceremony to highlight women in four different categories: Rising Star, Best in Craft Media, Automotive Ally, and Best Retailer. Over the years, the event has welcomed dozens of leading female professionals to the stage to share trends, stories and personal anecdotes of the integral role that women hold in the auto industry.

This year’s program, sponsored by Cars.com and CDK Global, brought female executives to the Chicago Auto Show stage to discuss “Women Leading the EV Revolution.” The panel was moderated by Cars.com’s VP of Cars Media, Julie Scott, and was comprised of four panelists: Chris Feuell, Chrysler brand CEO; Kathy Gilbert, CDK Global senior director, minority dealer and women retail; Melissa Washington, ComEd SVP of customer operations; and Linda White, BMW director of government and external affairs.

You can watch the recording of the panel discussion here.

“This year’s program featured a panel of women who are accomplished in their field and also incredibly inspiring,” said Jennifer Morand, co-founder of the What Drives Her program and general manager of the Chicago Auto Show. “The conversation covered a wide range of topics that helped spotlight the influence and purchasing power females have in the EV space.”

“In addition to the breadth of themes discussed, it was a privilege to honor some of the industry’s top leaders with the What Drives Her awards,” continued Morand.

Best Retailer Award Winner

Soledad Romero, store manager, Romeoville Toyota, started in an entry-level position at the dealership during the pandemic. She demonstrated her excellence as a leader and a human being with compassion, pride, integrity and discipline to achieve results. Since she has climbed her way up to the top of management.  Romero didn’t have any automotive experience when joining the team just two years ago. She leads by example and is willing to help with any department in the dealership. Her team says she handles it all with grace and compassion while leading her team.

"It has been such an honorable moment in my career, to have been recognized and presented with the Best Retailer Award,” stated Romero. “To have been classified under a category such as ‘Influential Woman in Automotive’ has been an incredible experience. Let's continue to support and strand strong behind empowering women who share the same passion for retail in automotive."

Best Retailer finalists included: Gabrielle Abinion, general manager, Fox Valley Volkswagen; Soledad Romero, store manager, Romeoville Toyota; and Carly Weck, finance manager, Elgin Kia.