CATA News

Several June 2024 new vehicle dealership financial metrics/trends are below:

Information provided by CATA Allied Member Woodward & Associates. For more information contact Carl Woodward at (309) 830-4747 or carlswoodward@cpaauto.com.

The CATA is asking members to nominate candidates for the TIME Dealer of the Year.

CRITERIA

In addition, the following rules apply:

If a nominee is not actively managing the dealership at the time of nomination, they can be named their state’s nominee; however, in order to be considered as a finalist or to be named the TIME Dealer of the Year, active participation at the time of nomination is required.

Please send nominations before Aug. 5 to Mark Bilek at mbilek@drivechicago.com.

[From NADA] On July 24, the House of Representatives voted to pass the House Interior, Environment and Related Agencies appropriations bill for Fiscal Year 2025, which includes language (Secs. 474 and 475) that would temporarily stop the EPA from spending funds to implement, administer or enforce its de facto EV mandates on light-duty, medium-duty and heavy-duty vehicles. This bill passed the House by a vote of 210-205.

On July 24, NADA President and CEO Mike Stanton and ATD President Laura Perrotta sent a letter to House members in support of this bill.

NADA and ATD are highly skeptical that EVs will be adopted anywhere near the levels required to comply with the EPA’s rules. While dealers have supported the move to electrification with billions of dollars in investments and the purchase of EV inventory, the U.S. lacks an adequate national consumer and commercial vehicle charging network, which makes the rapid adoption of EVs required by the EPA impractical.

The fate of the EV riders in the House funding legislation is uncertain, as the spending bill will need to be negotiated with the Senate, likely in the lame duck session of Congress. NADA will continue efforts to temporarily stop or disapprove of EPA’s de facto EV mandates.

The 28th Annual Better Business Bureau (BBB) Torch Awards for Ethics applications are now open! These prestigious awards celebrate businesses that exemplify integrity, transparency, and outstanding ethical practices. As champions of trust and accountability in the marketplace, we're committed to recognizing those who lead by example.

Last year, CATA Board Member Emir Abinion (Fox Valley Buick GMC, Fox Valley VW and Fox Valley VW in Crystal Lake) was selected as Touchbearer of the Year by the BBB. Do you know of a dealership that embodies the principles of integrity and accountability in every aspect of their operations? Now is the time to shine a spotlight on their exemplary behavior. The deadline is September 11.

It only takes 60 seconds to nominate someone or your company for an award that will last the lifetime of your business. Click here to nominate a business.

The Chicago Automobile Trade Association (CATA), producer of the Chicago Auto Show, announces the promotion of Jim OBrill to Senior Director of Marketing, Sponsorship and Strategy, effective July 1.

In his expanded role, OBrill will take leadership of all paid and organic marketing operations including creative direction, branding, social media management, digital marketing, content creation, and media buying. He will continue management of all strategic partnerships and sponsorships for both the CATA year-round and the Chicago Auto Show. Additionally, OBrill will serve a crucial role helping guide the strategic direction of the organization through managing Auto Show planning, association event oversight and industry relationships. OBrill will continue to serve as co-host on the weekly Drive Chicago radio show that airs on WLS-AM 890 as well as his role as an automotive journalist and content creator for its digital platforms.

In addition to his role at the CATA, OBrill also serves as the Communications Director for the Midwest Automotive Media Association (MAMA) where he manages all association communications including the MAMA website, emails, event registration, and social media channels.

“Jim has been a dedicated employee to the CATA for more than seven years contributing his vast expertise to the new-car dealer association, the Chicago Auto Show and Drive Chicago,” said CATA President Jennifer Morand. “This promotion is a well-deserved recognition of Jim’s achievements. The CATA is privileged to have Jim as a critical member of the CATA team as he demonstrates the qualities and demeanor that will continue to drive this organization forward.”

OBrill came to the CATA in 2017 bringing extensive knowledge and experience in event marketing and sponsorship management. OBrill's previous work was primarily rooted in experiential agency and radio promotions. OBrill was a senior account manager at Mosaic, where he developed and executed national programs and tours for clients such as Procter & Gamble, Costco, Hershey's, Target and Starbucks. Prior to that, OBrill served as promotion manager at 97.1 FM The Drive where he established a full promotions department, sponsorship opportunities and generated new campaigns for clients. He is also no stranger to the auto industry as he has a lifelong passion for cars and began his working career in high school at local dealerships throughout college.

“Working in my current role has been a dream job as a car-loving enthusiast. I have been attending the Chicago Auto Show since childhood and have seen it go through many iterations. I look forward to continuing on the journey and having an impact on its future,” said OBrill.

Gabrielle Abinion of Fox Valley Volkswagen and Carly Weck or Elgin Kia were selected by Automotive News for the 2024 40 Under 40 class. Now in its 13th year, the 40 Under 40 class is comprised of a group of talented and dedicated leaders blazing paths in automotive retail. This year’s class features honorees who have grown up in the industry and those who found a career in automotive retail later in life. Their accomplishments are many. The CATA salutes Gabrielle and Carly and all honorees

Gabrielle Abinion, 33

General manager, Fox Valley Volkswagen

Carly Weck, 33

Finance manager, Elgin Kia

This past Saturday, the Chicago Automobile Trade again partnered with the USO to host the 11th annual BBQ for the Troops fundraisers. More than 60 local new-car dealerships rallied their communities to host fundraising events which featured everything from patriotic ceremonies, classic car shows, live music, games for kids of all ages and, of course, barbecues.

To date, this year’s fundraiser has brought in more than $10,000 for the USO but we’re not done yet! Online fundraising efforts will continue throughout the month of July. Additionally, participating dealers will be making a donation for every test drive in the month of July. Since the program’s inception, CATA dealers have rallied to raise more than $1.1 million to support USO programs and services with more than 600 fundraisers taking place.

“Supporting the USO and local service members and their families is a cause everyone can rally around, and what better organization to drive the effort than the local new-car dealers who are already pillars of their communities,” said Jason Roberts, Chicago Automobile Trade Association chairman. “What the dealers have been able to achieve over the last ten years of this program is incredible and we are grateful to everyone who has contributed to this collective fundraising effort that is so crucial to support our troops.”

“The support of service members’ hometown communities and local new-car dealerships has allowed the USO to positively impact more than 300,000 service members and their families annually through hundreds of programs and services as well as our USO Centers across Illinois,” said Christopher Schmidt, USO Executive Director. “Neighbors helping neighbors through initiatives like BBQ for the Troops makes communities even stronger and joining your local dealership for their BBQ in July is a great way to get involved!”

“From the USO and all those who serve our nation, we thank all of the participating dealers and their communities for the generous support,” Schmidt continued.

For more information and to make a donation, visit https://www.cata.info/2024-BBQ-for-the-Troops.

Key Trends in Chicago Area Market

Download Chicago Auto Outlook - Q2 2024 (login req.)

The U.S. Federal Trade Commission (FTC) approved a rule banning most noncompete clauses. The effective date of the rule is September 4, 2024. As SESCO reported, a lawsuit was filed and the Plaintiff, Ryan LLC and later joined by the U.S. Chamber of Commerce, won the case. The Northern District Court of Texas blocked the FTC from enforcing the noncompete rule for Ryan LLC and the U.S. Chamber of Commerce. The court refused to issue a nationwide ban.

Given this result, as well as recent Supreme Court Rulings limiting Federal Agencies’ independence, SESCO does foresee continued challenges on the FTC’s noncompete rule between now and September 4th. SESCO will monitor developments and keep clients and subscribers informed.

As a refresher, the FTC’s rule on noncompete agreements includes:

For now, the noncompete ban remains scheduled to take effect on September 4, 2024, with respect to all covered employers other than Ryan LLC and the U.S. Chamber of Commerce.

If employers have any questions or concerns, we recommend they contact us to ensure compliance. For assistance, contact us at 423-764-4127 or by email at sesco@sescomgt.com.

[From NADA] On April 23, 2024, the DOL published a final rule that raises the minimum annual salary threshold to classify an employee as exempt from overtime rules under the Fair Labor Standards Act (FLSA) from $35,668 to $43,888 as of July 1, 2024. A more dramatic change will take place on January 1, 2025, when the annual salary threshold rises to $58,656.

The new rule may require dealers to reclassify some exempt employees as non-exempt and require justification for classifying some employees as non-exempt. Required adjustments need to be made as of the pay period beginning July 1, 2024.

• After June 1, 2024 all employees with a salary under $43,888 per year must be reclassified as non-exempt, and therefore receive overtime pay. This threshold jumps to $58,656 on January 1, 2025.
• Employers may use nondiscretionary bonuses and incentive payments (including commissions) that are paid on an annual or more frequent basis to satisfy up to 10% of the standard salary level. Existing exemptions for salesmen, partsmen and mechanics primarily engaged in selling or servicing automobiles remain unchanged.
• See NADA’s previous compliance alert (login req.) for more details about the final rule, including the highly compensated employee threshold.

In 2016, a federal court stayed President Obama’s attempt to dramatically increase salary thresholds and ultimately struck it down. The new rule may ultimately succumb to the same fate as it has been challenged in courts in Texas—with one court enjoining the rule as it applies to employees of the Texas state government and another court denying the request for an injunction.