CATA News

E. John Potempa, the father of longtime CATA staffer Sandi Potempa, died July 28. He was 91.
 
A proud U.S. Navy veteran, Mr. Potempa served as a police officer in Skokie and Rosemont, and as police chief in Bloomingdale. His passion for investigation led him to open his own firm, PPI: Potempa Private Investigations.
  
Mr. Potempa was involved with many fraternal and political organizations, including the DuPage County Chiefs of Police Association; the Illinois Association of Chiefs of Police; ASIS International, the world’s largest association for security management professionals; the American Legion; the Bloomingdale Township Republican Party; and the DuPage County Republican Party.
 
Mr. Potempa also was a past commander of the Alvin W. Koehn 5813 VFW, and of the Bloomingdale Township Republican Party. For many years, he was president of the homeowners association at his Bloomingdale subdivision.
 
In addition to Sandi Potempa, Mr. Potempa is survived by a son, Michael Fracaro. Donations appreciated to The Hundred Club of DuPage County.

Max A. Madsen, who at his height operated four family-owned dealerships, died July 26 at age 91.
 
Mr. Madsen was raised in Park Ridge, the son of first-generation Scandinavians who ran a family farm. He served as a 1st lieutenant in the U.S. Air Force from 1952 to 1954, then began a more than 50-year career in the automotive industry, beginning in the 1960s at Ed McKeown Chevrolet in Glen Ellyn. He later moved to Hanley Dawson Cadillac in Chicago, advancing to a managing partner.
 
The first Max Madsen Mitsubishi opened in Downers Grove in 1987, and it became one of the country’s most successful Mitsubishi franchises. The dealership currently is in Aurora.
 
Mr. Madsen enjoyed playing competition bridge, and he reached the prestigious level of Gold Life Master. Notable opponents included Charles Goren, the leading American bridge personality in the 1950s and ’60s; and actor Omar Sharif, one of the world’s top 50 contract bridge players. He continued to win national championships into his 80s.
 
Mr. Madsen was a regular supporter of local farmers markets, a trait he took from his mother, who baked as many as six pies a day to feed workers on the family farm during the decade after the Great Depression.
 
Survivors include Robin, his wife of 43 years; sons Terrance and Kevin; a daughter, Jody; step-sons Scott Grove and Adam Grove; 10 grandchildren; and four great-grandchildren. Services will be private. Memorials appreciated to the Air Force Aid Society.

 

Olaf Gjøvik, proprietor of seven new-car franchises in Sandwich and Plano, died peacefully July 22 at age 98.
    
Mr. Gjøvik served in the U.S. Navy during World War II, then he and his wife developed a 22-acre autoplex that employs more than 100 people. General Motors recognized his 50 years as a franchisee in 2018 at a special ceremony with multiple awards and citations.
 
Through the years, the towns surrounding Sandwich and Plano felt the benefit of Mr. Gjøvik’s generosity as he sponsored sports teams, donated cars to charities, and supported countless charities. He was a founding member of the Sandwich Rotary Club and held various positions including as president.
 
Renowned for his great storytelling and sense of humor, Mr. Gjøvik was a man of deep faith and was devoted to his church. He loved woodworking, boating and camping, hunting, and riding motorcycles (well into his 80s), and he often hopped into his motorhome to visit family around the country.
 
Mr. Gjøvik’s first wife, Florence, died in 2010 after a 64-year marriage. Survivors include his second wife, Candy; daughters Judy, Jan and Dawn; sons Mark and Scott; nine grandchildren; 12 great-grandchildren; and three great-great-grandchildren.
 
When appropriate after COVID-19 issues subside, the family plans to hold an event to celebrate Mr. Gjøvik’s life. Donations appreciated to the Open Door Rehabilitation Center in Sandwich; Fox Valley Older Adults, also in Sandwich; the Fox River Lutheran Church in Norway, Illinois; or the Salvation Army.

 

Two more nonprofits favored by area new-car dealerships were recent beneficiaries of the CATA’s Chicagoland Dealers Care program. The Young Entrepreneurs Academy in Palatine and the Children at the Crossroads Foundation in Chicago each received $1,500.
 
The CATA has been a longtime supporter of local charities. Since its inception in 2008, the Chicagoland Dealers Care program has donated more than $100,000 to local organizations supported by CATA member dealers. The CATA matches a dealer’s donation up to $1,500.
 
Hyundai of Palatine is a supporter of the Young Entrepreneurs Academy. Formed five years ago by the Palatine Area Chamber of Commerce, the Academy helps coach middle and high school-aged children on how to build and run their own businesses. In September of each year, up to 30 students have the opportunity to apply to a 25-week program. Students are paired with personal mentors who work with them every step of the way through the final phase of forming a business plan.
 
"When Hyundai of Palatine first submitted the Young Entrepreneurs Academy’s Chicagoland Dealers Care application to the CATA, we took one look at it and said ‘This is right in our wheelhouse,’ " said CATA Chairman Kevin Keefe. "The concept is wonderful, arming these young students with the education and resources for them to build and run their own businesses."
 
Similar to ABC-TV’s hit show "Shark Tank," the students have the chance to pitch their business ideas to local business leaders and investors. One student qualifies each year to present at a national level in Rochester, New York, in front of a panel of judges at the conclusion of the program. All students are pledged some funding to launch their business, and some have even reaped the benefits of receiving offers from local investors.
 
"To think that these young students are receiving legitimate offers from major investors is incredible," said Steven Gaus, executive director of the Palatine Area Chamber of Commerce. "We are so thankful for local businesses like Hyundai of Palatine and organizations such as the CATA who help fund our programming so that these students can achieve these extraordinary goals." 
 
"As a business owner myself, I couldn’t pass up the opportunity to help these young students who have similar passions," said Hyundai of Palatine/Leader Auto Group President Tamara Darvish. "The Young Entrepreneurs Academy does tremendous work within the Palatine community, and we’re committed to continuing to support their efforts."
 
Elgin Toyota has been a supporter of the Children at the Crossroads Foundation for five years. The Foundation was created in 1990 on the belief that economic circumstances should not predict the future. Maggie Daley, then Chicago’s first lady, founded the Frances Xavier Warde School in 1989 with the vision that it would be would be a place where all families would embrace and accept each other’s faiths and racial and socioeconomic backgrounds. Her goal was to have 30% of the school’s students benefit from financial assistance, a hope that became a reality with the inception of Children at the Crossroads Foundation.
 
Since then, the Foundation has changed the lives of more than 700 children by providing more than $15 million in financial aid.  Ever true to the foundation’s mission, 30% of the students who attend the Frances Xavier Warde School receive either full or partial financial assistance.
 
"We applaud the Children at the Crossroads Foundation for its tremendous work to help enrich these young students’ lives," said Keefe, the CATA chairman. "The Chicagoland Dealers Care program helps stretch our member dealers’ dollars a little further for wonderful organizations like this foundation, and it also helps shine a spotlight on new-car dealers’ positive impact within their communities."
 
Elgin Toyota is part of the Bob Loquercio Auto Group. Bob Loquercio, the group’s president and chief executive, said: "I was hooked on the Foundation’s mission from the first moment I attended one of its fundraising events. I knew I had to get involved, and here I am (as a board member), five years later."
 
Sarah Frick, director of advancement at the Foundation, said, "We’re so humbled by the Bob Loquercio Auto Group’s generosity as well as the contribution from the area’s new-car dealer association, the CATA."

 

The American Bar Association on Aug. 3 approved a resolution that, in part, urges governments at all levels to adopt laws and policies that promote the adoption of an enhanced nondiscrimination compliance system for dealer compensation for arranging and/or originating a vehicle finance contract by offering a safe harbor against pricing discrimination claims for dealers that faithfully implement the NADA/NAMAD/AIADA Fair Credit Compliance Policy and Program.
 
The resolution, which was co-sponsored by the ABA Section of Civil Rights and Social Justice, Section of State and Local Government Law, and the Commission on Homelessness, recommended "safe harbor" protection to dealers who faithfully adopt the NADA fair credit program in lieu of a recommendation that governments consider requiring dealer finance compensation to be in the form of a non-discountable fixed fee. This was one of several significant improvements to the original resolution, which sought to impose a series of new duties and restrictions on the dealer finance office. 
 
Officials of the National Automobile Dealers Association said the action represents the latest recognition by a diverse and growing number of public and private groups of the value of the optional NADA fair credit program as an effective mechanism to address fair credit concerns while preserving competition in the marketplace. The program, along with supporting materials, is available at nada.org/faircredit.
 
The NADA continues to encourage dealers to consider, in consultation with their counsel, whether to adopt the voluntary approach to fair credit compliance.

 

New light-vehicle sales improved for the third consecutive month in July. The July SAAR totaled 14.5 million units, a decline of 14.4% compared to July 2019 but up from the SAAR of 13.1 million units for June 2020.
 
In terms of raw volume, July sales were up by just over 120,000 units from June. And through the first seven months of the year, new light-vehicle sales were off by 22.1% compared with the same period in 2019. American consumers continue to choose light trucks over cars, with light trucks representing 76% of all vehicles sold in July and 75.4% of all new vehicles sold so far this year.
 
Similar to May and June, fleet sales fell more than retail sales did in July. According to Wards Intelligence, retail sales were off by 10% year over year, while fleet sales declined by a substantial 60% year over year. Vehicles have been selling quickly once they reach dealer lots. According to J.D. Power, 41% of all vehicles sold in July spent fewer than 20 days on the lot, up from 35% a year ago. Inventory constraints in popular segments may have limited some sales in July and, according to Wards Intelligence, final inventory numbers are expected to register an eight-year low for the month.
 
Because of such robust demand, incentive spending was dialed back in July. Preliminary estimates from J.D. Power pegged incentive spending per unit at $4,236, down from June 2020 but up by $166 compared with July 2019.
 
The NADA’s outlook has not changed much since last month, with forecasters expecting new-vehicle retail sales to continue to recover for the rest of the year, while fleet sales continue to struggle.
 
Inventory constraints in popular segments will be a headwind for new-vehicle sales for the rest of the summer. But barring any unexpected parts delays or vehicle plant shutdowns stemming from new COVID-19 outbreaks, forecasters expect that vehicle inventory levels will be at close to normal levels by the end of the summer. For 2020, they expect new light-vehicle sales to fall to between 13 million and 13.5 million units.

 

Drivers all have a list of features they’d like when it comes time to buy a new car. Perhaps a heated steering wheel or onboard Wi-Fi. Or, maybe a hands-free driving system.
 
According to a new study by research firm AutoPacific Inc., the most popular feature is a built-in dash cam. Fully 70% of the car buyers who participated in the annual Future Attribute Demand Study listed that as a must-have.
 
That probably shouldn’t come as a surprise. The firm’s research analyst, Deborah Grieb, said: "Consumers have experienced an influx of personal video in social and news media in recent years and are very familiar with the potential security benefits of camera footage from dash cameras, body cameras, cell phones and doorbell cameras. It’s really not surprising to see such high interest in an in-vehicle recording device."
 
What was significant about the study was the finding that interest in dash cams was broad, covering essentially all buyer groups, no matter their age, the type of vehicle they were interested in, or how much they planned to spend.
 
About 79% of those planning to spend at least $79,000, for example, want a dash cam in their next vehicle, but even among those looking for something under $30,000, the figure came in at 59%.
 
The new study looked at 16 different features in categories including safety and security, self-driving, comfort and convenience, and connectivity. It showed that safety and security-related features were overwhelming favorites among the 1,000 car buyers who responded.
 
Vehicle airbags came in at a close second, with 66% putting that at or near the top of their list. But another camera system wasn’t far behind, with 64% of the respondents listing perimeter camera systems, including ones that could monitor what’s in a pickup’s bed, where applicable.
 
The study appears to reflect the uncertain times we live in, but also reflects the fact that camera-based technologies, as Grieb noted, are becoming a familiar part of our daily lives.
 
The study also found strong interest in over-the-air updates, listed by 64% of those surveyed. That’s something offered on virtually every new smartphone, though only now starting to become available in the automotive community.
 
Automakers can use the feature to download software revisions that can improve a vehicle’s function, add features and remotely resolve problems that previously might have required a visit to a dealer service shop. OTA, as it’s also known, is expected to become widely available by mid-decade.

 

 

Throughout these trying times, the Chicago Automobile Trade Association has received tremendous support from its media partners. When the COVID-19 crisis first hit, the CATA worked swiftly to develop a commercial to communicate the ways in which Chicagoland’s new-car dealers are positioned to provide vital and essential transportation services to consumers and also come to the aid of their communities during the COVID-19 crisis through goodwill.
 
Most recently, the CATA launched a new advertising campaign to share the reasons that now is a great time for consumers to visit their local new-car dealer for service and to have open safety recalls addressed. The message continues to run across local media outlets.

 The CATA wants to send a special "thank you" to the following media partners that helped the association stretch its budget further. These outlets understand just how important and essential dealers are for our market and local communities.    

 

 Radio
 • Entercom Radio: WUSN-FM, WBBM-AM, WBBM-FM, WBMX-FM and WXRT-FM
 • Nexstar Media Group: WGN-AM
 • IHeart Radio: WEBG-FM, WGCI-FM, WGRB-AM, WKSC-FM, WLIT-FM and WVAZ-FM
 • Weigel Broadcasting: WRME-FM (ME TV)
 • Cumulus Radio: WLS-AM and WLS-FM
 • Hubbard Radio: WTMX-FM, WDRV-FM and WSHE-FM

 

Television
 • WLS-TV
 • WBBM-TV
 • Weigel Broadcasting (WCIU/WMEU/HCIU/EWME)
 • WFLD-TV/WPWR-TV
 • WGN-TV
 • WMAQ-TV

 

Cable
 • EffecTV / Xfinity-Comcast
 
Also, a special thank you to Select Marketing Group, which has helped champion media support for the CATA in a relationship that dates back more than 20 years.

 

Mike Anderson Chevrolet of Merrillville (Indiana), Phillips Chevrolet of Frankfort, and Ray Chevrolet in Fox Lake are winners of the 2019 General Motors Dealer of the Year award.
 
Five Illinois dealerships are winners of J.D. Power’s 2020 Dealer of Excellence award: Audi Westmont, Mercedes-Benz of Naperville, Napleton’s Valley Hyundai (Aurora), Phillips Chevrolet of Frankfort, and the Porsche Exchange (Highland Park). It was the third straight win for Mercedes-Benz of Naperville.

For businesses, cloud services are kind of like clouds. At their best, they can be soothing and expansive. But for companies that fail to appreciate the security implications, their ethereal presence may hide dangerous storms within.
 
As cloud computing has become business as usual for many businesses, frequent news reports about data breaches and other missteps should make companies think carefully about how they secure their data. The Federal Trade Commission has six tips for businesses about making their use of cloud services safer – both for the company and for the consumers who rely on it to safeguard their information.

 

1. Take advantage of the security features offered by cloud service companies. Cloud providers offer detailed guidance about their security controls and how to set up their services in a more secure fashion. But it’s up to the business to understand the options and configure those settings in the way best suited to the business.
 
Keep in mind that it’s not a matter of a simple on-and-off switch. Configuring one’s cloud security requires making thoughtful decisions that align with the sensitivity of the stored data and how it is used. In addition, think carefully about who at the company needs what data.
 
Unless employees have a legitimate business reason, they shouldn’t have access to the cloud resources. Require multi-factor authentication and strong passwords to protect against the risk of unauthorized access. Furthermore, never hard code passwords in cloud-based applications or source code. That might save steps, but it’s the business equivalent of a "Hack me!" sign.

 

2. Take regular inventories of what is kept in the cloud.  Some companies’ cloud storage resembles a forgotten attic overdue for a spring cleaning. Whether data is stored in the cloud, on the company’s network, or in a file cabinet, data can’t be kept safe if its whereabouts is not known. That’s why up-to-date inventories are essential to data management. Many cloud services provide tools — for example, dashboards or management consoles — for just that purpose. But don’t just set it and forget it. In addition to staying on top of where data is, make sure that security configurations and access rights remain consistent with the sensitivity of what is stored.
 
As data that may require more protection is added, re-evaluate the company’s security settings and amp them up accordingly. Also, don’t take anything on faith. Actively test for misconfigurations or other security failings that could compromise the data, and maintain robust log files to continuously monitor the cloud repositories. Reports are common about sensitive data stored in a cloud repository that winds up on the internet, and no one wants their company name in the next headline.

 

3. Don’t store personal information when it’s not necessary.  One upside of cloud storage is that it’s often less expensive than other methods. But as people with big basements can attest, the list of things deemed "essential" tends to expand in direct proportion to how much storage space is available.
 
As an inventory is conducted of what is kept in the cloud, resist the temptation to hold on to data "just because." Instead, be ruthless in posing the question, "Do we have a legitimate need to store this information?" If the answer is no, dispose of it securely. No one can breach what isn’t there.

 

4. Consider encrypting rarely used data.  "There’s some information I don’t have to access regularly – back-ups, for example – but I do need to retain it." As part of a defense-in-depth approach to security, consider whether to encrypt that data at rest. Indeed, if the data contains sensitive information, encrypting that data is a basic principle of security regardless of where it’s stored.

 

5.  Pay attention to credible warnings.  Some cloud providers offer automated tools to remind a company about cloud repositories that are open to the internet. Others may contact customers with warnings like that. In other instances, security researchers may contact companies when they find exposed data online. If such a warning is received, pay attention. Investigate the company’s cloud repositories and recheck the security settings.

 

6. Security is the company’s responsibility. Using cloud services doesn’t mean security can be outsourced. Throughout the lifecycle of data in the company’s possession, security remains its responsibility. Even if a cloud provider’s security tools are relied upon, a written data security program should lay out the company’s process for securing consumers’ personal information, and for company staffers knowledgeable about maintaining, monitoring, testing, and updating that program. Yes, cloud contracts should be reviewed carefully to spell out the company’s expectations and clearly establish who is primarily in charge of what. But keep in mind that if it’s the company’s data, it’s ultimately the company’s responsibility.