Celebrating 100 Years of Success This anniversary marks a major milestone for CNCDA as we take a look back at all we have accomplished while staying focused on the road ahead …
Business Transactions • Buy-Sell Agreements • DMV, BAR, and other governmental approvals • Lender flooring and capital loan agreements • Entity formation and structure • Shareholder Agreements • Manufacturer approvals and relations • NMV non-profit association representation Estate Planning • Succession planning for businesses • Trust Agreements including lifetime benefit trusts • Gift and Estate Tax planning Tax • Property Tax planning, audits, and appeals • Federal estate and gift tax controversy audits • EDD Audits BUSINESS LAW | LITIGATION | ESTATE PLANNING | REAL ESTATE | TAX | EMPLOYMENT PRACTICES FERRUZZO & FERRUZZO, LLP | A Limited Liability Partnership, including Professional Corporations 3737 Birch Street, Suite 400, Newport Beach, California 92660 | PH: (949) 608-6900 | ferruzzo.com Business Litigation • Consumer Legal Remedies Act lawsuits • Sales and Service Agreements • Disputes before the CA New Motor Vehicle Board • Consumer claims regarding the sale of automobiles • Manufacturer audit disputes • Hearings before the AQMD, RWQC and OSHA Real Estate • Dealership site acquisition and dispositions • Lease agreements • Lender Opinion Letters Employment Practices • Wage and hour class action lawsuits • Private Attorneys General Act (PAGA) claims • Arbitration Agreements • Employer Handbooks and Employer Compliance Procedures Ferruzzo & Ferruzzo, LLP began providing legal representation to new car and truck dealers over four decades ago. Over the course of that time, one of the central goals of the firm has been to remain rooted in our client relationships. With the strength of over 25 attorneys, we provide a spectrum of legal services to support every aspect of running and owning your new car and/or truck dealership. We have practice groups in each area of the law that service the needs of you and your dealership.
YOUR SUCCESS IS OUR SUCCESS
Contents ISSUE 5, 2023 6 Cheers to Another 100 Years of Success 8 A Message From the President By Brian Maas, CNCDA President 10 A Message From the Chair By David A. Simpson, 2024 CNCDA Chairman 12 2024 Officers and Directors 14 CNCDA Through the Years 18 The Show Must Go On! 20 CNCDA Board Chairs Hall of Fame 22 20 Years of CNCDA’s TIME Dealer of the Year Nominees 24 L.A. and the Birth of Car Culture On Darryl Holter and Stephen Gee’s “Driving Force” By Gary Cross 28 2024 Sponsors 31 CNCDA Dealer Spotlights 32 K.C. Heidler, Tom’s Truck Center Embracing Change 34 Steve Pleau, Future Automotive Group Carrying a Family Legacy Forward 39 Felix Chevrolet Oldest Dealership in LA and Its Famous Cat Mascot By Catherine York, Communications Manager, NADA 42 Devinder Singh Bains, Turlock Chrysler Dodge Jeep Ram ©2024 California New Car Dealers Association (CNCDA) | The newsLINK Group, LLC. All rights reserved. The California New Car Dealer Quarterly is published four times each year by The newsLINK Group, LLC for the CNCDA and is the official publication for this association. The information contained in this publication is intended to provide general information for review, consideration and dealer education. The contents do not constitute legal advice and should not be relied on as such. If you need legal advice or assistance, it is strongly recommended that you contact an attorney as to your specific circumstances. The statements and opinions expressed in this publication are those of the individual authors and do not necessarily represent the views of the CNCDA, its board of directors, or the publisher. Likewise, the appearance of advertisements within this publication does not constitute an endorsement or recommendation of any product or service advertised. The California New Car Dealer Quarterly is a collective work, and as such, some articles are submitted by authors who are independent of the CNCDA. While the California New Car Dealer Quarterly encourages a first-print policy, in cases where this is not possible, every effort has been made to comply with any known reprint guidelines or restrictions. Content may not be reproduced or reprinted without prior written permission. For further information, please contact the publisher at 855.747.4003. 1517 L St. Sacramento, CA 95624 www.cncda.org (916) 441-2599 Staff Brian Maas President Michael Walsh, MBA Chief Financial Officer Anthony Bento Chief Legal Officer Autumn Heacox Director of Communications & Marketing Cathy Mason Director of Operations Rebecca Matulich Director of Events & Partnerships Kenton Stanhope Director of Government Affairs Crissy Hodgson Senior Staff Counsel Andrea Daugherty Political Engagement Manager Lauren Johnston Membership Manager Liza Hernandez Staff Accountant Stacey Barawed Executive Assistant McKenna Bediamol Administrative Coordinator Jamie Cowden Administrative Assistant 4
The California New Car Dealers Association has protected and promoted the interests of California’s franchised new car dealers for the last 10 decades. In that time, we have made a tremendous impact on the industry as a whole and will continue to bring value and support to our members. To learn more about the nation’s largest state automobile dealer association and all the key advantages of being a member, please visit us at cncda.org. CHEERS TO ANOTHER 100 YEARS OF SUCCESS
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Dear CNCDA members and friends, As we embark on our 100-year celebration, it is a privilege to reflect on the remarkable journey we’ve shared as an association dedicated to the prosperity of California’s franchised new car dealers. Our dealer leadership’s collective efforts and accomplishments have shaped CNCDA’s history and profoundly influenced the landscape of California’s automotive industry. A Decade of Achievements In the spirit of gratitude, I’d like to take a moment to acknowledge and celebrate some of the pivotal achievements that have marked our association’s journey just over the past decade: • Acquired the 1517 L St., Sacramento CNCDA Headquarters and thwarted a ballot initiative and bill requiring dealers to repair all recalls prior to vehicle sale. • Successfully challenged TrueCar’s illegal brokering of vehicles, requiring the company to change its business model in 2017. CNCDA also garnered a ruling from the DMV that the Care by Volvo program violated California, which led to dramatic changes in that program. • Secured passage of several franchise bills in 2009, 2011, 2013, 2015, 2019 and 2023. Highlights from the dozens of provisions in these laws included the 2019 bill addressing retail warranty reimbursement for our members and last year’s law protecting dealers from illegal manufacturer competition against them. • Continued to lead a coalition to FixPAGA, the Private Attorneys General Act, by qualifying a statewide ballot measure for the November 2024 ballot. Dealers contributed millions of dollars toward this vital reform effort. Brian Maas, CNCDA President A Legacy of Dedication and Progress Our 100-year celebration campaign isn’t just a reflection on the past; it’s a testament to the dedication and resilience of every member who directly contributed to the success and strength of CNCDA today. We take pride in our history and our members’ role in shaping California’s automotive landscape. From preserving franchise system integrity to ensuring transparent vehicle reservation processes, our association remains committed to protecting every franchised new car dealer in the state. Member Engagement I encourage all members to participate actively in our Annual Dealer Day (March 20, 2024) in Sacramento. This longstanding tradition and day of advocacy continues to be a powerful demonstration of our commitment to protecting the interests of your dealerships and the millions of Californians employed within them. Additionally, our upcoming convention in September in Kona, Hawaii, promises special events to celebrate our 100 years of success. A Heartfelt Thank You As we celebrate this milestone, I want to express my deepest gratitude to all the dealers who, across generations, have volunteered their time and effort to keep our association thriving. Your dedication has shaped CNCDA and contributed to the rich legacy of family-owned dealerships, which have been instrumental since the invention of modern automotive transportation. A Message From the President 8 California New Car Dealer Quarterly
In California, our franchised new car dealers play a pivotal role in enhancing the lives of our residents. Dealers are not just providers of vehicles but facilitators of freedom, independence and reliable means of personal transportation. In a state where driving is a way of life, especially along iconic routes (like PCH, the Silverado Trail and 17-mile drive, to name but a few), cars are more than just transportation; they are the keys to unlocking opportunities, jobs and the sheer joy of exploring our state’s beautiful landscapes. It’s about ensuring every Californian has access to safe, dependable and affordable transportation, a cornerstone of our state’s unparalleled quality of life. A note too about the resiliency of dealers: For a century now, dealers have adapted to changes in technology and customer buying preferences, whether using computers, e-signatures, the internet or selling zero-emission vehicles. Dealers are ready to sell what our customers want to buy. Thank you for your tireless commitment to serving all Californians and our association. We also welcome the next generation of dealers who will continue to uphold and enrich CNCDA’s legacy for years to come. In closing, here’s to the next 100 years of collaboration and innovation. Together, we will drive the successful future of California’s franchised new car dealers. Regards, Brian Maas EPICBROKERS.COM ©2024 Edgewood Partners Insurance Center. All rights reserved. | CA License: 0B29370 EPIC Insurance Brokers & Consultants is proud of its partnership with more than 300 California dealerships and is the CNCDA’s only licensed broker for health insurance and employee benefits. As the dealers’ consultant, experience what EPIC can do for you, including: • A team producing significant results with decades of experience understanding the specific needs of dealerships • Fully insured and unique alternative funding options to best fit your needs and generate the best possible costs • Full compliance services and HR support for your team LEARN MORE ABOUT OUR SERVICES BY CONTACTING: Alison McCallum (949) 422-6431 alison.mccallum@epicbrokers.com 9 California New Car Dealer Quarterly
A Message From the Chair As I step into the role of chairman for CNCDA’s monumental 100th year, the honor is profound. Representing and serving California’s franchised dealership community is a privilege that humbles me. The board chairs on pages 20-21, a mere snapshot of the many remarkable individuals in our association, symbolize the hundreds of franchise new car dealers who, over a century, have generously given their time and talent to lead CNCDA’s Board of Directors. These individuals directly guided the association’s mission and secured many of the legislative protections we enjoy today. CNCDA’s enduring strength and vibrant history are a testament to the dedication of these remarkable men and women. Their voluntary contributions have created a legacy of resilience, participation and engagement. Without their unwavering commitment, our association wouldn’t stand as strong as it is today. As we embark on our next centennial, I am humbled by the legacy before us and excited about the future we are shaping today. We will ensure that CNCDA continues to protect and promote our members, evolves and leads the next 100 years of California’s automotive excellence. With gratitude for the past and enthusiasm for the future, I look forward to continuing this journey together. Best, David A. Simpson Simpson Buick GMC Cadillac of Buena Park Simpson Chevrolet of Garden Grove Simpson Chevrolet of Irvine David A. Simpson, 2024 CNCDA Chairman 10 California New Car Dealer Quarterly
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2024 Officers and Directors EXECUTIVE COMMITTEE DAVID SIMPSON Chairman Simpson Buick GMC Cadillac of Buena Park, Simpson Chevrolet of Garden Grove, Simpson Chevrolet of Irvine TONY TOOHEY Immediate Past Chairman Auburn Toyota RICK NIELLO Region 1 Vice President The Niello Company MARK NORMANDIN Region 2 Vice President Normandin Chrysler Dodge Jeep Ram BILL HATFIELD Region 3 Vice President Hatfield Buick GMC JARED HARDIN Region 4 Vice President Hardin Buick GMC ROBB HERNANDEZ Vice Chairman Camino Real Chevrolet SAL GONZALES Region 5 Vice President Culver City Volvo ANNE BOLAND Secretary/Treasurer Bob Smith BMW 12 California New Car Dealer Quarterly
DIRECTORS Randy Denham S.J. Denham Inc. Matthew Hall AutoNation Western Region Taz Harvey Dublin Mazda Rick Niello The Niello Company Tony Toohey Auburn Toyota Jessie Dosanjh Stevens Creek Chevrolet Ryan Fitzpatrick Coliseum Lexus of Oakland Dave Moeller City Toyota Mark Normandin Normandin Chrysler Jeep Dodge Ram Devinder Singh Bains Turlock Chrysler Dodge Jeep Ram Cheryl Bedford Sunset Auto Center Don Groppetti Nissan of Visalia Bill Hatfield Hatfield Buick GMC Ted Nicholas Three-Way Chevrolet Cadillac Ellena Sweet Fresno Acura James Graham Santa Margarita Ford Bruce Hamlin Guaranty Chevrolet Motors Inc. Jared Hardin Hardin Buick GMC John Oh Lexus of Westminster David Simpson Simpson Buick GMC Cadillac of Buena Park Anne Boland Bob Smith BMW Matt Browning Browning Automotive Group Sal Gonzales Culver City Volvo Rinaldi Halim Sierra Automotive Group Robb Hernandez Camino Real Chevrolet Region 1 Region 2 Region 3 Region 4 Region 5 13 California New Car Dealer Quarterly
CNCDA Through the Years Group Portrait of New Directors of the Motor Car Dealers Association (MCDA) of Southern California Los Angeles Auto Show, 1920 Group Portrait: MCDA of Southern California 14 California New Car Dealer Quarterly
Los Angeles Auto Show, 1963 Los Angeles Auto Show, 1958 Los Angeles Auto Show, 44th Southern California International, 1966 30th Los Angeles International Auto Show, 1953 Los Angeles Auto Show, 1920s Los Angeles Auto Show, 1926 Los Angeles Auto Show, 1955 45th Los Angeles Auto Show, 1967 15 California New Car Dealer Quarterly
16 California New Car Dealer Quarterly
Magazine Clipping from Automotive News, August 20, 1973, page 31. “Reiss takes California post.” All images credit: Seaver Center for Western History Research, Los Angeles County Museum of Natural History and CNCDA records. Directors of the Motor Car Dealers Association of Southern California Officers and Directors of the Los Angeles Motor Car Dealers Association for the years 1951-1952 17 California New Car Dealer Quarterly
The Show Must Go On! On the morning of March 5, 1929, the 16th Annual LA Auto Show opened for another day of excitement and curiosity. There were four massive tents on the corner of Hill Street and Washington Boulevard. The auto show, growing in popularity, attracted thousands of people who were scheduled to attend that day. The show was in full swing, and millions of dollars of cars, boats and airplanes were on display. Among the automobile manufacturers exhibited at the show were some well-known brands like Ford, Buick, Cadillac, Pontiac, Chevrolet, Chrysler, Dodge, Lincoln, Oldsmobile and Plymouth. There were also many other manufacturers who have since gone by the wayside, such as Essex, Auburn, DeSoto, Nash, Hudson, Kissel, Pierce Arrow and Studebaker. There were also auto part suppliers, accessory makers and retailers set up at the show. In addition to all of that, attendees were entertained with musical performances by three orchestras. Around 4:10 p.m., a fire broke out and quickly spread up the curtains and across the exhibits. Within 30 minutes, the flames had completely decimated everything inside the highly flammable enclosure. Nearly 400 cars were burned beyond recognition, including a few irreplaceable specimens. It is estimated that about 2,500 attendees were present at the time, and miraculously, no one was seriously injured. It was a struggle for the Los Angeles Fire Department to get the flames under control. When the flames were finally subdued, the Los Angeles Times described the damage as “a mass of smoking embers, charred wood, burning rubber and twisted steel.” There are conflicting reports about how the fire started. The Los Angeles Times reported that a “smoldering cigarette” was the cause; other reports said that an electrical circuit in the airplane display sparked the fire. The losses were estimated to be $1.25 million. An emergency meeting was held that same day and plans were made to move the auto show to a new location. The Southern California Auto Club provided a fleet of tow trucks, and enough cars were found to assemble the new auto show. With the help of the Motor Car Dealers Association of Los Angeles, the community and manufacturers, the show opened one day later, March 6, at Shrine Stadium. The quick actions of all parties sent a clear message: the LA Auto Show must go on! The Times reported that “all of the exhibitors who participated in the first show will take part in the new one. Cars similar to the ones destroyed will be on the display with the exception of specially built models.” Because the new location’s auditorium was quite a bit smaller than the nowdestroyed Washington Park location, there was only a small selection of trucks exhibited, and no accessories were included. A few months after the fire, the stock market crashed, and the country entered the Great Depression. The bottom fell out of automobile sales, but the L.A. Auto Show kept going until the start of World War II. It came back with great excitement in 1952. The re-opening of the LA Auto Show was held at the Pan Pacific Auditorium with 152 vehicles on display. The return of our soldiers from war brought great interest in European cars, and the number of imports on display grew. The LA Auto Show became an international phenomenon. The 1960s brought Japanese automobiles to the showroom floor along with a need for more space for the growing displays and to accommodate the crowds. By the 1980s, 87.2% of American households owned at least one vehicle, 51.5% owned more than one. Car ownership was accessible to most, with the average price for a new car being $7,000 and gas being around $0.90 a gallon. Americans had truly become autodependent. The LA Auto Show hit a stride that has carried it forward to where it is today. A 18 California New Car Dealer Quarterly
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CNCDA Board Chairs Hall of Fame DAVID SIMPSON 2024 GMC Cadillac of Buena Park TONY TOOHEY 2023 Auburn Toyota JOHN OH 2022 Lexus of Westminster MARK NORMANDIN 2020-2021 Normandin Chrysler Jeep Dodge Ram MIKE WESELOH 2020 Weseloh Chevrolet TED NICHOLAS 2019 Three Way Chevrolet Cadillac TAZ HARVEY 2018 Dublin Mazda CHERYL BEDFORD 2017 Sunset Auto Center DENNIS HARDIN 2016 Hardin Honda DAVE MOELLER 2015 City Toyota RANDY DENHAM 2014 S.J. Denham Inc. DARRYL HOLTER 2013 Downtown LA Motors Mercedes-Benz JOHN MCCALLAN 2012 Kearny Pearson Ford STEVE SNYDER 2011 Gold Rush Chevrolet Subaru TOM HOFFMAN 2010 Puente Hills Chevrolet 20 California New Car Dealer Quarterly
GARY SHIPMAN 2009 Toyota of Santa Cruz DENNY FITZPATRICK 2008 Fitzpatrick Chevrolet Hummer PETER HOFFMAN 2007 Sierra Auto Cars Inc. BERT BOECKMANN 2006 Galpin Ford ED FITZPATRICK 2005 Valley BMW HENRY HANSEL 2004 Hansel Auto Group JEFF ESTABROOKS 2003-2004 George Chevrolet BOB HEMBORG 2002-2003 Hemborg Ford AVERY GREENE 2001-2002 Avery Green Honda/ Avery Green Motors JOHN SYMES 2000-2001 Symes Cadillac Inc. PETER BLACKSTOCK 1999-2000 Victory Dealership Group RICK EVANS 1998-1999 Huntington Beach Chrysler Dodge PETE PELLINI 1997-1998 Pellini Chevrolet Co. DOUG FULLER 1996-1997 Fuller Ford Honda Kia MIKE MILLER 1995-1996 RON FRIEBERG 1994-1995 Salinas Valley Ford FRITZ HITCHCOCK 1993-1994 Puente Hills Toyota, Northridge Toyota, Toyota of Santa Barbara LEE CASTONGUAY 1992-1993 JIM BESS 1990-1991 21 California New Car Dealer Quarterly
20 Years of CNCDA’s TIME Dealer of the Year Nominees STEVE PLEAU 2024 Future Automotive Group TIM HUTCHERSON 2023 Downey Nissan TERRY GILMORE 2022 Paradise Chevrolet Cadillac DAVID CONANT 2021 Norm Reeves Honda Superstore PAUL RUSNAK 2020 Rusnak Auto Group TODD BLUE 2019 IndiGO Auto Group BILL HATFIELD 2018 Hatfield Buick GMC INDER DOSANJH 2017 Chrysler Dodge Jeep Ram Fiat Volkswagen Infiniti JOHN SYMES 2016 Symes Automotive Group R. J. ROMERO 2015 Empire Nissan 22 California New Car Dealer Quarterly
DOUG FULLER 2014 Fuller Ford Honda Kia RICK NIELLO 2013 The Niello Group FRITZ HITCHCOCK 2012 Hitchcock Automotive Resources WALTER KIENLE 2011 Walter’s Automotive Group HENRY HANSEL 2010 Hansel Ford ED FITZPATRICK 2009 Valley Lexus TIM SMITH NATIONAL WINNER 2008 Bob Smith BMW BOB HEMBORG 2007 Hemborg Ford CHUCK HADDAD 2006 Haddad Dodge DAVE WILSON 2005 Wilson Automotive CAL WORTHINGTON 2004 Worthington Ford HAROLD MEEK 2003 Three Way Chevrolet Photo credit: The Press Enterprise Photo credit: Press Telegram 23 California New Car Dealer Quarterly
L.A. and the Birth of Car Culture ON DARRYL HOLTER AND STEPHEN GEE’S “DRIVING FORCE” By Gary Cross This article and review of former CNCDA Board Member Darryl Holter’s book, “Driving Force,” was previously written by renowned Historian and Professor Gary Scott Cross for the Los Angeles Review of Books. We are accustomed to thinking of the car as an inevitable fit for America and Americans when it appeared around 1900. A spreadout people, already accustomed to personal travel by horse, with an often-noted aversion to crowds, made the conversion to mechanical automobility easy. Nowhere was this more evident than in the region of Southern California. In 1900, Los Angeles was a new city, free from the density and labyrinthine streets of the old walking towns of Europe or even New England; it had attracted settlers (and developers) expecting personal space but also the easy access to work and shopping the car alone could provide. The city had weather that accommodated early roofless and unheated vehicles that in New York might have needed to be stored during winter. Even the early LA trolley system paved the way for the car by fostering dispersal and the subsequent need to fill in the gaps between the web of trolley lines with cars and roads. But, as Darryl Holter and Stephen Gee’s recently released book “Driving Force: Automobiles and the New American City, 1900-1930” claims, Los Angeles as the United States’ quintessential car town cannot be reduced to such abstractions. People, even individualistic people, made it happen. Most books about the people in this field have focused on heroic inventors and manufacturers like Henry Ford and Alfred P. Sloan, the workers in automotive factories and their union led by Walter Reuther, or even promoters of highway and freeway construction like Robert Moses in New York. Interestingly, these figures came from — and gained fame from — their activities in the East. This seems odd, given the size and impact of cars on the West, especially in Los Angeles. Even odder, this attention to manufacturing and infrastructure ignores a most vital fact: At the beginning of the car industry, Americans had to be won over by cars. In retrospect, this seems obvious, but it was not so in 1900. Not just cars but a vast array of new consumer goods that were mass-produced had to be sold to a sometimes reluctant populace. Advertising and new labeling may have impelled American men to buy Gillette razor blades and mothers to purchase Jell-O, but cars were different. They were complex, often unreliable and, most of all, expensive machines (costing in 1900 about twice as much as the average yearly wage). Crucially, they demanded skilled operators on poor and often dangerous roads. Winning a commitment to such devices required enthusiastic and persuasive salesmanship, but also repair services and even financing. And carmakers provided none of this. The driving force of car consumption was much more than just an American “natural” love of automobility (or even their promotion, via massive advertising). The vanguard of the new consumer culture was the car, and its leading edge was arguably the car dealer. And “Driving Force” argues that Los Angeles was home to some of the most important retail innovations. The car dealer has long been written off as the mere gobetween, or else maligned (especially in used car sales) as at least a slightly shady operator, certainly not in the mold of the heroic inventor Ford or the corporate genius Sloan. Yet it seems that these men (and, as noted in the book, also some women) shaped and made possible the revolution from hoof and rail to automobility in the early 20th century. It is no surprise that this scholarly topic arrived as late as it has. And perhaps such a book could only be written by Darryl Holter, a scholar whom I have known for decades but also someone who has decades of experience in car retailing and dealership management on Los Angeles’s Auto Row on Figueroa Street. Holter took over his fatherin-law’s business in middle age. Not only has he enjoyed 24 California New Car Dealer Quarterly
a lifelong engagement with American folk and popular music, but he was also trained as a modern social historian and taught at UCLA. When, through his connection with the California New Car Dealers Association, he came upon an archive of dealers’ documents, he decided to write their history. The result is not an academic tome; it was edited for a wider audience by local architecture authority and television producer Stephen Gee, who found and arranged in the book an interesting and attractive array of local photos and car-themed cartoons and ads illustrating LA car culture during its formative years. The result is an unusual book. Most chapters reflect a dealer’s perspective — e.g., “Auto Rows and Retail Facilities,” “Selling Cars on Credit,” “Service and Repairs” and “Used Automobiles.” But Holter’s treatment of these themes goes beyond business issues to show how the first generation of car buyers were sold on automobility. Although “Driving Force” avoids the polemics of academic history, it insists that the retailer was irreplaceable. In the early years, carmakers were hardly prepared to lead the automobilization of the United States. By 1910, there had already existed nearly 500 of these enterprises, nearly half of which soon failed. Most were essentially parts assemblers with little capital or capacity for distributing and selling their products on a national scale. Instead, retailers had to supply the capital to manufacture early cars by winning customers who ordered cars to be custom-built. Neither manufacturers nor banks would provide consumer credit for purchasing such an untested product. Dealers found that they had to offer down payments and credit to consumers. Parts were unstandardized down to nuts and bolts, causing a nightmare in repair for which manufacturers provided little help. This, too, required local ingenuity. Of course, manufacturing innovations (culminating in Ford’s assembly line of 1913), created mass production and a steady flow of vehicles to dealer showrooms and lots. Still, though Ford tried for a time to directly retail the Model T, most car companies adopted a franchise system of independent dealers that offloaded a lot of risk to retailers. Central to Holter’s story is the transformation of the car from a toy of the rich to a democratic right and necessity — a shift that required more than the assembly line. The car became the central product of an American revolution in mass consumption because it became affordable to the many and because the many were won over to its necessity. Part of this was the work of retailers like those on Los Angeles’s Auto Row. Making cars affordable to the average family required consumer credit just as home ownership did. At first, dealers sold all cars on a cash basis (in part because manufacturers demanded large deposits to build cars on order). But soon, dealers offered down payments, leading, in the 1910s, to finance companies providing car loans, thus making possible middle-class car ownership. As early as 1925, 75% of brand new cars purchased in Southern California were done so on installment plans, even if they were only for a short term of two years or less. A second innovation also eased entry into car culture: the used-car trade-in. This made new cars affordable to many and the sale of those used cars accessible to still more. Dealers at first resisted opening used car divisions. Like used clothes, dealers in luxury items such as early cars thought selling them used was degrading — like high-end dress shops selling used skirts. Yet, as fewer customers were first-time buyers and more needed financial incentives to buy new, trade-ins became the norm. This was not always advantageous to dealers who, when pressed into selling new cars, had to offer unprofitable trade-ins. Still, the logic of the used-car market greatly expanded ownership. By 1923, while 3.6 million new cars were sold in the United States, there were 2.8 million trade-ins. Given the variety and different vintages of used cars, finding a “fair” price was a problem for both buyer and seller, producing the need for a reliable price guide for used cars, which was eventually provided in 1926 by Leslie “Les” Kelley, of LA’s Kelley Kar Company, in the form of his business’s inaugural Blue Book. Winning commitment to the car required more than making it affordable. Cautious customers needed assurance that the car could be fixed when it broke down, as it did far more often than today. Bad roads and driver misuse and ignorance were compounded by the lack of car manuals and standardized parts, creating demand for the hit-andmiss work of auto mechanics. Car dealers, of course, opened service departments but also pushed manufacturers to improve parts and service training. These seemingly prosaic advancements made U.S. car culture possible. Less tangible, but no less necessary, was how dealers created a mystique around the car and its possession. Though automobiles were known as practical machines of mobility, which were first sold in the often cramped and dirty settings of machine shops and livery stables, dealers soon realized that their cars could represent not simply vehicles of transport but, rather, expressions of status for an emerging middle class. Dealers learned to display and glamorize their autos, just as modern downtown department stores did their suits and gowns. Such expectations have largely disappeared from our discount shopping world. But early in the 20th century, with many of the new sites of consumption, dealers concentrated their showrooms downtown, usually near each other on a succession of auto rows (first on Main Street and then, by the 1910s, on Figueroa). Dealers in Packards, Lincolns, Stutzes and Chandlers moved to architect-built structures, often multistoried, with well-lit showrooms and upper floors for parts, used cars and repair — a surprisingly early application of the concept of “full service” at a time when most business was small and often specialized. These buildings suggested not only elegance but also efficiency — they were emblems of progress. 25 California New Car Dealer Quarterly
These car dealers were at the center of a modern age of commercial spectacle. They entered their cars in races. But they also sponsored frequent car shows with increasingly grandiose displays and luxurious settings. Auto shows became modern festivals of timely glamor and the sublimity of progress, often set, like the traditional festival, at special times and places. Car shows were very different from the everyday commercialism of the dealer showroom; they were even called the “social event of the season,” though their object was primarily to sell cars. Promoted by leading dealers and local officials from 1907, the shows became sites of boosterism and even cross-city competition. Rival dealers tried to outdo each other with decorations. One show was bedecked with expensive colored Chinese lanterns, and even enormous vases and ornamental plants, further adding to the aura and allure. The history of human mobility has long been dominated by men: horses, wagons, trains and ships. And so was it in 1900, as many saw the car as a modern horse (complete with horsepower). But this was also the age when women were beginning to break from Victorian and traditional constraints and conventions. Holter describes women running dealerships, but also women extending traditional female social and community service with their involvement in pressure groups for car safety and better roads. In the pioneering days of the automobile, women also entered endurance races, and a few tinkered with customizing cars. More conventionally, in a growing consumer culture where women were becoming the primary shoppers for many new products, women’s “interests” in comfort and convenience began to be considered in car design. Especially designed for women were electric cars, noted for their ease of startup — without the front crank of early internal combustion vehicles, which was replaced in 1913 by the electric starter. Holter takes seriously the personal element in explaining all this. Complementing these themes are a series of biographical sketches of major players in this story. The long-forgotten first car dealer, William K. Cowan, like many others, was a Midwestern migrant to Los Angeles, starting life in the jewelry business before entering the car trade through operating the Rambler Bicycle Shop in the 1890s before its eponymous manufacturer switched to making cars. From these seemingly accidental beginnings, he promoted the industry with races and diversification in trucks. Ralph Hamlin — whose early skills led him to build, repair, and race, in succession, bicycles, motorcycles and cars — secured a Franklin dealership. Angelenos will recognize the frequent references to the addresses and sites of Cowan’s shop and those of many other entrepreneurs whose stories are told here. Many early dealers were closely associated with the emerging movie business (like Don Lee), or quickly entered or became connected with other avant-garde businesses: service stations (Earle Anthony), radio and TV (again Lee and Anthony, as well as Paul G. Hoffman) and even cartoons (Winslow Felix). Selling cars was about turning a profit, but it was also about being part of an ongoing enthusiasm for modernity in all its forms. Dealers not only arguably introduced Americans to the vehicle of modern life but were also often in the vanguard of a fast‑paced and rapidly changing world of media and consumer culture. In his afterword, Holter notes that Los Angeles has become “synonymous with gridlock, freeways, smog, high insurance rates and permit parking, and yet the bond between people and their cars remained as unbreakable as it ever has been” — with the county counting 6,386,830 cars in 2021. For better or worse, the car culture that these early-20thcentury dealers promoted remains securely in place 100 years later. A Gary Cross is the author of “Machines of Youth: America’s Car Obsession” (University of Chicago Press, 2018) and emeritus professor of history at Penn State University. CNCDA members can pick up a copy of “Driving Force” at our Sacramento office. Or “Driving Force” can be purchased at drivingforceautomobiles.com. 26 California New Car Dealer Quarterly
Anticipate every turn In an industry that’s always evolving, your dealership can rely on our Dealer Financial Services team’s 90 years of experience to see what’s around the corner, forward-thinking insights to prepare you, and technology to keep you ahead of the curve. What would you like the power to do?® John Alexander, john.f.alexander@bofa.com James Diedrich, james.a.diedrich@bofa.com Liane Low-Bevett, liane.low-bevett@bofa.com Bob Ludwig, robert.ludwig@bofa.com business.bofa.com/dealer ©2024 Bank of America Corporation. All rights reserved. 5949042 12-23-0323 Investment products offered by Investment Banking Affiliates: Are Not FDIC Insured Are Not Bank Guaranteed May Lose Value “Bank of America” and “BofA Securities” are the marketing names used by the Global Banking and Global Markets divisions of Bank of America Corporation. Lending, derivatives, other commercial banking activities, and trading in certain financial instruments are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Trading in securities and financial instruments, and strategic advisory, and other investment banking activities, are performed globally by investment banking affiliates of Bank of America Corporation (“Investment Banking Affiliates”), including, in the United States, BofA Securities, Inc., which is a registered broker-dealer and Member of SIPC, and, in other jurisdictions, by locally registered entities. BofA Securities, Inc. is a registered futures commission merchant with the CFTC and a member of the NFA. Anticipate every turn In an industry that’s always evolving, your dealership can rely on our Dealer Financial Services team’s 90 years of experience to see what’s around the corner, forward-thinking insights to prepare you, and technology to keep you ahead of the curve. What would you like the power to do?® John Alexander, john.f.alexander@bofa.com James Diedrich, james.a.diedrich@bofa.com Liane Low-Bevett, liane.low-bevett@bofa.com Bob Ludwig, robert.ludwig@bofa.com business.bofa.com/dealer ©2024 Bank of America Corporation. All rights reserved. 5949042 12-23-0323 Investment products offered by Investment Banking Affiliates: Are Not FDIC Insured Are Not Bank Guaranteed May Lose Value “Bank of America” and “BofA Securities” are the marketing names used by the Global Banking and Global Markets divisions of Bank of America Corporation. Lending, derivatives, other commercial banking activities, and trading in certain financial instruments are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Trading in securities and financial instruments, and strategic advisory, and other investment banking activities, are performed globally by investment banking affiliates of Bank of America Corporation (“Investment Banking Affiliates”), including, in the United States, BofA Securities, Inc., which is a registered broker-dealer and Member of SIPC, and, in other jurisdictions, by locally registered entities. BofA Securities, Inc. is a registered futures commission merchant with the CFTC and a member of the NFA.
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CNCDA Dealer Spotlights CNCDA dealers have a long history of going above and beyond to grow business, create jobs, solve problems as they arise and serve the communities they live and work in. Without fail, they face each day with a can-do attitude, building upon the past and creating a bright future for our industry. The following pages contain spotlights of dealers that exemplify the spirit of hard work, service, charity and a commitment to the community. 31 California New Car Dealer Quarterly
K.C. Heidler, Tom’s Truck Center EMBRACING CHANGE Established in 1949, Tom’s Truck Center began as a commercial truck repair facility. In 1973, George Heidler acquired the business after owning gas stations and a tow truck operation. By 1984, he transformed it into a franchised commercial truck dealership. Over the years, Tom’s also operated Kia, Suzuki and Isuzu car dealerships and currently owns a Ford automotive dealership. Sadly, George passed away from cancer in 2011, and his son K.C. Heidler, now serves as the president and CEO. Tom’s has two Southern California locations, offering new and used commercial vehicles, parts (both new and recycled) and services for medium to heavy-duty trucks and vans (Class 1-8). They represent leading commercial truck brands, including Allison, Caterpillar, Cummins, Ford, Fuso, GreenPower, Hino, Isuzu, Nikola and REE. Staff members also provide assistance with government incentive programs, charging infrastructure and product education. While still maintaining the Ford dealership, Tom’s primarily focuses its efforts and energy on the commercial truck sector. K.C. was brought into the industry through a combination of childhood experiences and family influence. Growing up around a junkyard and gaining experience by disassembling cars and trucks sparked his interest in parts. This hands-on experience contributed to 32 California New Car Dealer Quarterly
his understanding of the value of replacement parts, which eventually played a significant role in the growth of Tom’s parts division. He spent years learning from and working alongside his father. After completing his college education, K.C. gained additional experience by working with Hertz Equipment Rental. Ultimately, he took on the role of President and CEO of Tom’s; his background, knowledge and experience in the industry, as well as the skills he developed over the years, made him a perfect fit for the job. Tom’s has won the prestigious Isuzu Ichiban (“No. 1” in Japanese) Award (like a President’s Club) for the past 27 years. Additionally, Tom’s was one of five finalists in the 2023 Successful Truck Dealership of the Year Award and was also a nominee for the 2023 American Truck Dealer of the Year Award. Involvement with CNCDA has been invaluable to Tom’s Truck Center. When they started as a first-generation dealer, they lacked the knowledge to run a dealership effectively and were depleting valuable resources. A significant benefit that came from CNCDA membership was when K.C. attended the NADA Dealer Academy and brought back valuable ideas for operations. This experience brought a realization of the importance of getting involved at local, state and national levels. CNCDA provided the leadership at Tom’s with the knowledge necessary to save the dealership and welcomed the company into the industry. Growing Tom’s to where it is today hasn’t come without its challenges: “Years ago, we tried to create our own digital parts catalog internally and it was disastrous, which brought us to the conclusion that utilizing good industry vendors that are experts in the specific service needed is more efficient. Creating long-term partnerships with these vendors continues to prove successful for us.” Embracing change has become a way of life for K.C. For example, as an early adopter, Tom’s is leading the transition to zero-emission transportation for their customers and the industry by making investments in electric and hydrogen offerings now, at the early stages. When asked to share advice for fellow dealers, K.C. said, “I would advise future dealers to embrace change. If you don’t embrace change and adapt, you will fail.” At the core of Tom’s objectives are environmental initiatives, dedicated to the future of sustainability and clean transportation. Tom’s is working diligently to become the zero-emission leader in the truck dealership space with electric and hydrogen vehicle and refueling offerings designed to be profitable — eventually. Most people don’t realize that a lot goes into owning a dealership. “All the money in the world won’t buy you a dealership in California. The public does not understand all that is needed — you must show a resume with proof of experience, obtain manufacturer approval, show the location fits in geographically with state regulations and laws, identify and purchase the location, etc. Dealerships are complex with many businesses within the business. It is not an easy task,” K.C. said. Additionally, there are many challenges facing the industry right now. The industry is in dire need of technicians, and with the addition of zero-emission vehicles (ZEV), the need is continuing to grow. As the chairman of the CNCDA Foundation, K.C. works on the state’s efforts to connect entry-level technicians with job opportunities at dealerships. K.C. and his team recently launched the Automotive Technology Career Days to introduce high school and community college students to the successful career opportunities available within the automotive technology industry. The first CNCDA Foundation Career Day was held on Oct. 5, 2023, at the OC Auto Show and more than 600 students attended. The next event was held the following month at the LA Auto Show. K.C. is not only passionate about the industry, he is also passionate about life. “You Only Live Once,” as K.C. likes to say. He loves spending time with family and friends, surfing, running and keeping fit. K.C. is a three-time Jet Ski Racing World Champion and was inducted into the PWCOFFSHORE Endurance Racing Hall of Fame in 2019. A 33 California New Car Dealer Quarterly
Steve Pleau, Future Automotive Group CARRYING A FAMILY LEGACY FORWARD The Future Automotive Group has been serving drivers since 1963, with 14 dealerships (23 franchises) and three commercial fleet service centers in the Greater Sacramento Region: Fairfield, Concord and Clovis. The automotive industry is in my blood as I am a secondgeneration Ford dealer,” said CEO Steve Pleau. When Steve’s father, Gene Pleau, finished serving our country in World War II, he operated a service station in Lafayette and sold Ford vehicles in Walnut Creek at a dealership there. Gene worked his way up in the business, eventually becoming the general manager. This opened the door to purchase a Ford dealership in Sacramento in 1963. Steve’s early start in the automotive industry began was he was just 16 years old at his father’s dealership. He washed cars and worked in the parts and service departments, eventually selling automobiles. After graduating from California State University Sacramento in 1969, Steve came to work full-time at the dealership in the finance department. “My most proud accomplishment was when I became the sixth inductee into the Ford Dealership Hall of Fame in 2018. This was a highlight of my career to receive such a prestigious recognition,” Steve fondly recalled. “However, I could not be prouder of how the Future Automotive Group has grown to 17 rooftops (dealerships and commercial fleet service centers) and is celebrating our 60th anniversary in 2023 — a true achievement and testament to our team’s drive, integrity and commitment to providing customers a 5-star experience.” A milestone anniversary like this is every business owner’s dream and is not an easy feat, especially in a highly competitive industry like the automotive one. The Future Automotive Group has been serving California drivers since 1963 and has had the pleasure of working with even multiple generations of customers. This is why their slogan, “Now and for generations to come …” is at the heart of every transaction because it’s their customers’ loyalty and trust in their team that has gotten them to reach 60 years of business. In 2023, five of the Future Automotive Group dealerships were recipients of noteworthy and well-respected awards 34 California New Car Dealer Quarterly
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