SPRING 2023 Dealers’ Choice Pub 63 | 2022-23 | Issue 3 BRUNER MOTORS RECEIVES PRESTIGIOUS TEXAS TREASURE BUSINESS AWARD OFFICIAL PUBLICATION OF THE TEXAS AUTOMOBILE DEALERS ASSOCIATION TADA LEGENDS RED MCCOMBS FRANK BOGGUS Young Dealer Day AT THE TEXAS CAPITOL
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Scan this code with your smart phone for a direct link to the TADA website. Contents © 2023 Texas Automobile Dealers Association (TADA) | The newsLINK Group, LLC. All rights reserved. Dealers' Choice is published four times each year by The newsLINK Group, LLC for the TADA and is the official publication for this association. The information contained in this publication is intended to provide general information for review, consideration and 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 TADA, 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. Dealers' Choice is a collective work, and as such, some articles are submitted by authors who are independent of the TADA. While Texas Automobile Dealers 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. 28 Dealers’ Choice 12 20 6 President’s Message Working Together at the State Capitol DARREN WHITEHURST 9 A Delay in the Safeguards Rule, But Dealers Should Not Wait BY HAO NGUYEN, ESQ., CHIEF LEGAL OFFICER, COMPLYAUTO 12 Bruner Motors Receives Prestigious Texas Treasure Business Award 15 TADA Legends Red McCombs Frank Boggus 20 Houston Auto Show Preview Night Gala 22 On Display at Lade Ford in Frankston, Texas ... A Family Treasure 24 2023 TADA Leadership 28 Young Dealer Day at the Texas Capitol 30 Dealer Spotlight: Buckalew Chevrolet, LP 34 Community Service 40 The Right Time for a Risk Management Reset BY BRANDON ARTIGUE, DIRECTOR, FINANCIAL RISK MANAGEMENT, TRUIST SECURITIES DEALER’S CHOICE 4
Plan ahead for your dealership’s long-term legacy Setting up a succession plan is an important consideration for the future of your dealership. Now’s the time to think about your priorities, such as maintaining control, taxes, liquidity, employees and family. What would you like the power to do?® Learn more with our comprehensive overview of Dealer Financial Services Succession Planning at business.bofa.com/dealer. “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, 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. and Merrill Lynch Professional Clearing Corp., both of which are registered broker-dealers and Members of SIPC, and, in other jurisdictions, by locally registered entities. BofA Securities, Inc. and Merrill Lynch Professional Clearing Corp. are registered as futures commission merchants with the CFTC and are members of the NFA. Investment products offered by Investment Banking Affiliates: | Are Not FDIC Insured | Are Not Bank Guaranteed| May Lose Value | ©2022 Bank of America Corporation. All rights reserved. 4882341 05-22-0512 Plan ahead for your dealership’s long-term legacy Setting up a succession plan is an important consideration for the future of your dealership. Now’s the time to think about your priorities, such as maintaining control, taxes, liquidity, employees and family. What would you like the power to do?® Learn more with our comprehensive overview of Dealer Financial Services Succession Planning at business.bofa.com/dealer. “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, 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. and Merrill Lynch Professional Clearing Corp., both of which are registered broker-dealers and Members of SIPC, and, in other jurisdictions, by locally registered entities. BofA Securities, Inc. and Merrill Lynch Professional Clearing Corp. are registered as futures commission merchants with the CFTC and are members of the NFA. Investment products offered by Investment Banking Affiliates: | Are Not FDIC Insured | Are Not Bank Guaranteed| May Lose Value | ©2022 Bank of America Corporation. All rights reserved. 4882341 05-22-0512
The 88th Texas Legislature recently passed the midway point of the session — now that there are less than 70 days left, the real work begins. The March 10 deadline for legislators to file bills to be considered by the Texas Senate and House this session left us with 5,301 HBs and 2,565 SBs filed for a record-setting 7,866 total bills. When our Board Chair, Charlie Gilchrist, asked me if we are winning, I immediately wanted to jump to “yes.” The truth of the matter is that “winning” occurs towards the end of session, and the typical session consists of many twists and turns that come with the legislative process. Just getting bills filed can be a challenge. TADA got legislation filed in both the House and Senate on our TADA Legislative priorities this session — one focuses on strengthening the existing franchise law to ensure that dealers are reimbursed by a manufacturer or distributor for warranty and recall work at the same rate that retail customers pay for non-warranty work. Senator Lois Kolkhorst of Brenham is carrying SB 2099 while State Representative Charlie Geren of Fort Worth authored the House companion HB 4078. The other priority requires insurers to use OEM parts, products, and repair processes in the restoration of the vehicle to pre-damaged condition for the first 36 months of a new vehicle unless the customer chooses to use non-OEM parts. It also prohibits insurance companies from requiring a certain percentage of non-OEM parts in repairs. Senator Phil King of Weatherford is carrying SB 1083 while State Representative Jeff Leach of Plano authored the House companion HB 3476. There are so many other issues that have the potential to impact Texas dealers, and TADA is working diligently to represent your interests in supporting positive bills of interest, trying to address concerns with problematic legislation and opposing other bills that we believe will hurt Texas dealers and Texas consumers. A few of these issues include: (1) changing the advertising for certain used vehicles; (2) allowing businesses to pass through credit card charges to customers; (3) establishing a regulatory process for EV charging stations; (4) addressing property tax changes; (5) working to establish a fair allocation formula for vehicles; (6) charging a road-use fee for EVs similar to what ICE vehicles pay in gas tax; (7) enhancing penalties for catalytic converter theft; (8) eliminating the state’s safety inspection system; and (9) eliminating paper tags and replacing them with hard plates, among other concerns. In every instance, and certainly with our priority issues, there are opponents on the other side working for their company’s interests and against the position of TADA, Texas dealers, and your customers. We are so thankful a number of dealers have lent a hand by joining our lobby team in visiting with legislators about these issues. It is important to make sure legislators understand the impact these changes will have on your ability to take care of customers — their constituents. We also had members of the Texas Dealer Academy meet with legislators carrying the positive message of what franchised dealerships mean to the communities they serve. I hope there will be a strong group of PRESIDENT’S MESSAGE WORKING TOGETHER At the State Capitol Darren Whitehurst, TADA President DEALER’S CHOICE 6
dealers at the TADA Board Meeting on April 16–17, and I know that many of these dealers will be talking with their legislators as well. This team approach is a significant part of what makes TADA so effective at the State Capitol. Every legislator (and their staff for that matter) has a relationship with their local dealer(s) as well as fond memories regarding many of the cars they have driven over the years. It is these personal connections, coupled with the dedicated work of dealers and TADA staff over the years, that have resulted in the consumer-friendly franchise system that we have today in Texas. 7 TADA.ORG
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A Delay in the Safeguards Rule, But Dealers Should Not Wait By Hao Nguyen, Esq., Chief Legal Officer, ComplyAuto In this article, we discuss the Federal Trade Commission’s (FTC) delay of the effective date of the revised Safeguards Rule (Rule) and its practical impact on your dealerships. We will then explain why you should not wait to implement data protection and cybersecurity safeguards at your dealership because the FTC will still come after you under another section of the FTC Act that gives them broad authority. Safeguards Rule — Some Requirements Delayed Until June 9, 2023 The FTC gave dealers across the country an early Christmas present when it announced on Nov. 15, 2022, that it is extending the deadline for the Rule by six months. However, it is important to note that this extension only affects some of the requirements and will make them effective on June 9, 2023. Specifically, the provisions that have been extended to June include the following: • Designating a qualified individual to oversee the information security program; • Completing written risk assessments; • Monitoring the access and use of sensitive customer information; • Completing a penetration test & vulnerability scan; • Encrypting systems containing customer information; • Training employees on security awareness; • Conducting Vendor & Service Provider risk assessments; • Implementing multi-factor authentication (MFA) on all systems containing customer information; and • Creating and updating a device and systems inventory. Notably, the provisions that have not been delayed (and never were) are: • Creating a written Information Security Program (ISP) for your organization; • Obtaining signed contracts from your vendors (“Service Providers”) who collect customer information promising to implement reasonable safeguards; • Periodically assessing your Service Providers to ensure that they have reasonable safeguards in place; and • Implementing a system capable of detecting attacks and intrusions on your network. Dealers Should Not Wait to Implement Safeguards Rule Solutions On paper, the delay sounded good. However, once you dig into the details, the delay is not as sweet as it sounds. Because some aspects of the Rule still became effective in January of last year, dealers should not take this delay for granted. This is the time to press on in reinforcing their data protection and cybersecurity practices. Why? Firstly, completing all requirements of the Rule can be time-consuming because so many players are involved. You will need to coordinate with the vendor to oversee compliance (like ComplyAuto), the dealership staff, any Service Providers they work with (to complete their requirements), and potentially your IT company or Managed Service Provider. Unless you are working with an efficient and responsive team, natural bottlenecks may arise as one party waits on the other. Secondly, you should not “miss the forest for the trees,” meaning that the FTC should not be the main reason why your dealership 9 TADA.ORG
is establishing these data protection and cybersecurity protocols. Yes, we want to fulfill these requirements to keep the federal government at bay, but I would argue that the main focus should be to prevent data breaches, ransomware attacks, or other cybersecurity incidents! Think about the different forms of damage to your organization that could arise as a result of a data breach or ransomware attack: • Reputational damage: Dealerships are pillars in their community, and word of a data breach will spread quickly. Additionally, vendors may be wary about working with you in the future. • Data breach mitigation: Depending on the level of your cybersecurity coverage from your insurance company (or lack thereof), you could be paying out of pocket for forensic professionals to “stem the bleeding,” so to speak, and try and recover what you can. • Dealership downtime: You can bet that your dealership will suffer significant delays as you try to survey the extent of the breach and work through the mitigation efforts. • Data recovery: If it was a ransomware attack that resulted in the loss of employee, customer, and dealership information, the road back to where you started will be a long one. Think of all the information that existed prior to the attack that you will now need to rebuild from scratch. • Consumer protection efforts: Depending on the extent of the breach, you may be legally responsible for the cost of providing identity theft protection measures to all of the consumers who suffered a release of their information. • State and federal penalties: Suffering a breach does not earn you any pity from the government. State and federal enforcement officials will come in shortly thereafter to “pour salt in the wound” in the form of heavy fines and penalties. • Class action lawsuits: Always a significant concern for dealers is a class action lawsuit by harmed individuals who had their information either stolen or released. FTC Using Its Broad Authority Under Section 5 for Cybersecurity Concerns Section 5 of the FTC Act prohibits “unfair or deceptive business practices in or affecting commerce.” Given that this clause has been around since 1914, it is safe to say that the authors did not consider cybersecurity during the time that it was drafted. Nevertheless, as a Nobel Prize laureate once said, “the times they are a-changin’” and the FTC has wielded this section as a sword to strike down businesses who have displayed poor cybersecurity practices. Defining false data security or privacy representations under both “unfair” and “deceptive” terms of art since 2002, the FTC has negotiated consent agreements since then with most businesses as many of them never wanted to test its authority over regulating cybersecurity. It was not until 2012 when a private company that had been the victim of a cyber attack three times moved to dismiss the FTC’s lawsuit, stating that it had no authority rather than enter into a settlement. Going all the way up to the Third Circuit, the court affirmed that the FTC does, in fact have the authority to regulate cybersecurity based on factors I won’t bore you with here. Since then, there have been no direct challenges to the FTC’s authority over a business’s cybersecurity practices under this broad Section 5, and the FTC continues to use it repeatedly and effectively: • Consent order with an education technology provider for alleged poor data security practices that exposed sensitive information about millions of customers and employees. Specifically, it did not require employees to use MFA, stored information insecurely, and failed to provide adequate security training to employees. — January 2023 • Consent order with an online alcohol marketplace (and its CEO, personally) over allegations that its security failures led to a data breach exposing the personal information of approximately 2.5M consumers. Specifically, it did not require employees to use MFA, did not limit employees’ access to personal data, failed to monitor security threats, and stored information insecurely. — January 2023 • Consent order with an online customized merchandise platform that failed to implement reasonable security measures and failed to adequately respond to several security breaches. Specifically, it stored SSNs and passwords in readable text, did not require employees to use MFA, retained data longer than was reasonably necessary, and covered up major data breaches. — June 2022 With all of the recent activity by the FTC, we believe that automotive retail is squarely in the sights of the new Commissioners. It is imperative that dealers continue in their efforts to expeditiously comply with all the new requirements of the Rule to achieve full compliance by the new deadline. For more information, please visit www.complyauto.com or email at info@ComplyAuto.com. This article should be used as a compliance aid only and though its accuracy has been made a priority, it is not a substitute for professional legal advice. Each dealer should rely on their own expertise when using it. DEALER’S CHOICE 10
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Bruner Motors Receives Prestigious Texas Treasure Business Award On March 7, the Bruners received a proclamation from the City of Stephenville in honor of the Bruner’s Texas Treasure Award. Greg Bruner, owner of Bruner Motors, was recently honored by the Texas Historical Commission (THC) at the State Capitol as a recipient of the Texas Treasure Business Award. The award is an initiative of the Community Heritage Division of the THC and honors businesses that have been in operation within Texas for over 50 years. “The Texas Treasure Business Award pays tribute to the state’s well-established businesses and their exceptional contributions to communities across Texas,” said THC Executive Director Mark Wolfe. The award presentation coincided with the Cowboy Capital of the World’s Legislative Day on March 1. In addition to the members of the THC, those present for the award were State Representative Shelby Slawson, Senator Drew Springer, and leadership from the Texas Automobile Dealers Association (TADA) as well as officials from Erath County, City of Stephenville, and Tarleton State University. The Bruner organization’s mantra “Buy Better Buy Bruner” reflects their family’s roots of being upfront and honest in their business practices, treating customers like family, and taking care of the community. “We’re from here, we live here, and we’re committed long-term to this community,” Greg Bruner added. “Nothing makes us prouder than seeing this community thrive and grow.” Bruner Motors founder, Dwain Bruner, was approached by General Motors to acquire the Chevrolet dealership in Stephenville, Texas in 1969. Dwain and his wife, Carolyn, visited Stephenville and knew immediately that the town would be a great place to raise their family and grow the business. This year, Bruner Motors celebrates 54 years as a Chevrolet dealer; 40 years as a Chrysler, Dodge, Ram, and Jeep dealer; 33 years as a GMC dealer; and 16 years as a Toyota dealer. As one of the area’s largest dealerships, the Bruner family is active in the Stephenville community, supporting many organizations and events each year. “I am always so proud of the work of our Texas dealers and the impact they have in the local communities,” said Darren Whitehurst, TADA President. “I am so proud of the work of Greg and Lynda Bruner, and all that Stephenville means to their family.” DEALER’S CHOICE 12
Pictured with the Bruner family are Mayor Doug Svien; Margaret Hoogstra and Tammie Virden of the Texas Forts Trail; and Terry Colley, Main Street board member and former Texas Historical Commission Deputy Executive Director and Deputy State Historic Preservation Officer. 13 TADA.ORG
TADA Legends TADA Legends recognizes those dealers who have created a body of work in the industry and community that sets them apart from all others. It is a distinction for those who have achieved at the highest level of the automotive field and who represent the best of the best, whether it be as a car or truck dealer, a community servant, a leader in education, government, banking, health care, philanthropy or any of the other essential areas of people’s lives where Texas dealers lead and serve. The Legend Award goes to those dealers whose lifetime of achievement has earned them the title of Legend. This spring we lost two legends who truly represented the best of the best … Red McCombs and Frank Boggus. 15 TADA.ORG
IN MEMORIAM TADA Texas Legend Red McCombs (1927–2023) Red McCombs, Texas Business Icon and Entrepreneur, passed away at 95. Red McCombs — beloved father, grandfather, great-grandfather, and friend — peacefully passed away surrounded by loved ones on Sunday, Feb. 19, 2023. McCombs was a multi-industry business magnate known for his local car dealerships, pro sports team ownership, generous philanthropy, and bigger-than-Texas personality. With a booming voice, classic drawl, and mop of red hair, McCombs left a legacy in line with his lifelong desire to support San Antonio and all of Texas. He was preceded in death by his wife, Charline, in December 2019. Red and Charline were truly life partners, enjoying 69 years of marriage. From sports team ownership to their charitable giving, every major decision and action was made in tandem. Red’s loving affection for Charline was well known, and he was often quoted saying that “of all the business deals I’ve made, the only lifetime contract I’ve ever signed was with Charline.” McCombs was born on Oct. 19, 1927, in Spur, Texas. While his birth certificate reads Billy Joe McCombs, only his parents and siblings used that name — to everyone else, he was simply Red. Growing up in the Great Depression, a strong family value was cemented at a young age. Despite the whole family, including three other siblings, living on his father’s $24.75-a-week Ford mechanic’s salary, Red saw his parents tithe each Sunday at church. Moreover, as drifters came through town looking for work, he watched as his mother would provide bedding and food for anyone who came begging. Red saw and felt the joy of giving to others and made it an integral part of his life. After serving in the Army after World War II, Red used the GI Bill to study at the business and law schools at The University of Texas in Austin. While waiting for a corporate job to begin, Red joined a friend to sell cars at a Ford dealership in Corpus Christi. After selling 10 in one weekend, he was hooked and never made it to that corporate job. McCombs immediately began selling 30 or more cars a month, and within half a year, set out on his own. McCombs Enterprises traces its roots to 1953 when Red began McCombs Used Cars on Water Street in Corpus Christi. When Red’s first and only boss, Austin Hemphill, was having financial troubles at his San Antonio dealership, he called his former star salesman to come to the rescue. Red sat down with the sales team of 15, laying out the framework of how they would begin operating. Quickly, 10 of those salesmen walked out the door. Red then turned to the remaining five and promised them that if they stuck it out with him, he’d see to it that they each became car dealers eventually. Within a few months, Red sold his way back into a stable financial position, earning ownership of what is today now Red McCombs Ford. And yes, he kept his promise in getting those five salesmen their own dealerships. While growing his car dealership empire, which would later reach more than 60 stores, Red and his family fell in love with San Antonio. It became home for them and would be for the remainder of his life. When presented the opportunity to help with HemisFair, Red jumped at it. Red’s connections with Ford secured the Ford Pavilion and subsequently attracted other corporate exhibitors. What he then realized, much to his chagrin, was how the majority of corporate America overlooked what they viewed as a “dusty old cow town.” Red realized that San Antonio needed to be “put on the map,” and that the quickest way of doing so was via professional sports. With this in mind, he and a brazen team of speculators made a deal to acquire Dallas’s failed ABA team. While the first years were tough, the city of San Antonio eventually latched on to the Spurs and the common identity it offered for San Antonio. The team truly does belong to the people of San Antonio. DEALER’S CHOICE 16
Red owned the Spurs two separate times, the latter of which ended with him handing the reigns over to the McDermott group and a collection of San Antonio businesses and families to ensure the team would forever remain in San Antonio. But it also allowed Red to pursue another dream of his: the NFL. After working to get a team in San Antonio to no avail, Red took a chance and managed to buy the Minnesota Vikings. McCombs understood the importance of the Vikings to the state of Minnesota and never planned on moving the team. He did realize, however, that their stadium situation would lead to the team departing Minnesota if left unresolved. After struggling to get stadium support for seven years, Red decided he wouldn’t be able to make that breakthrough and sold the team. The joy of giving to others has always been important to Red, and with his business successes came the opportunity to make a bigger impact. Red’s passion for business and education found the perfect crossover at The University of Texas. In 1999, McCombs gave $50 million to the business school, which the Board of Regents renamed in Red’s honor. Texas McCombs has consistently ranked at the top for its undergraduate and MBA programs, and especially its accounting, finance, information systems, marketing, and entrepreneurship departments. This is a particularly incredible accomplishment considering its peers are often 10 times smaller in student count. Beyond the business school, Red has helped fund a brand-new softball stadium and the north end zone at DKRTexas Memorial Stadium, both named in Red’s honor. In 2005, Red and Charline donated $30 million to M.D. Anderson to create the Institute for the Early Detection and Treatment of Cancer. This program was a one-of-its-kind initiative to bring cross-discipline researchers in-house to take down incurable cancers. Most notably, the institute’s Dr. Jim Allison was awarded the Nobel Prize in medicine for his breakthrough with immunotherapy. Beyond his notable major gifts, McCombs has given tens of millions to numerous San Antonio organizations. Much of his giving was focused on the immediate needs of people after reading or hearing about their dire situations. In 1994, after a fire burned two classrooms at Mary Hull Elementary, a Westside school already at threat of closing due to poor test performances, Red became the school’s lead cheerleader. He hosted pep rallies for the students before tests and mentored and encouraged teachers. His spirit of giving all started by seeing the joy of giving to others during the Great Depression. From the Corpus Christi Clippers to Clear Channel, Red has owned more businesses and told more stories than can be detailed here, but most of them are in his autobiography, Big Red. Red’s legacy will continue as the current and future generations of the McCombs family carry the torch and execute his vision. He is survived by his daughters Lynda McCombs, Marsha Shields (John H.), and Connie McNab (Sandy); his 8 grandchildren; his 11 great-grandchildren; and numerous nephews and nieces. 17 TADA.ORG
IN MEMORIAM TADA Texas Legend Frank Boggus (1928–2023) Frank Boggus, a well-known businessman and philanthropist, passed away at 94. Frank Boggus was a remarkable man, devoted to others and revered by all who were privileged to know him in his 94 years as the consummate Texan. He was a man of faith, family, and community who often missed holiday dinners with his own family while serving others in his world of charity and outreach. Born the son of a Rio Grande Valley Ford dealer, Frank Boggus along with his wife, Peggy, grew the business to become one of the most prominent dealer organizations in the state. He went from Salesman in his father’s Ford dealership to President of the Harlingen Chamber of Commerce and life member of the Salvation Army Advisory Board, founder of the Boggus Education Pavilion at Valley Baptist Medical Center, the Harlingen Boys and Girls Club and the Ronald McDonald House for which his daughter, Barbara Sue Tucker, was the building Chairman. Frank served the Salvation Army for over 40 years, receiving the William Booth award, named for the Salvation Army founder and the highest honor of that organization. Frank Boggus also achieved the highest honor in the automobile industry in Texas, receiving the TADA Legend Award. He is one of 22 honorees out of the thousands of franchised car dealers in TADA’s 107-year history. Frank Boggus was a giant in the automobile industry, and throughout his life, he blessed our state with his leadership and good works. Frank Boggus’s influence in education, medical services, retailing, banking and economic development, along with his contribution as a community volunteer and role model for youth, is unparalleled. Born in Brownsville, Frank Boggus spent his entire life in the Texas Rio Grande Valley. His integrity, character and leadership skills were developed on the football field as a halfback for the Harlingen DEALER’S CHOICE 18
Cardinals, on the campus of Texas A&M University and in the United States Air Force where he served as a 1st Lieutenant. The stadium where Frank scored touchdowns for the red and white is today J. Lewis Boggus Stadium. Frank went from a Harlingen high school student to eventually becoming President of the Harlingen Independent School District. His legacy will be everlasting and the next two generations of his family are following in Frank Boggus’s footsteps in the community and in the automobile business. Frank’s son, Bob Boggus has been Chairman of the Board of TADA and a member of the Executive Committee for 15 years, and along with his wife, Karen, has been an essential leader for the association and the industry. Grandson Jacob Boggus, fourth generation of this amazing family, like his grandfather, is a community servant as well as an outstanding car dealer. Jacob and his wife, Erica, lead TADA’s young dealer division, the Texas Dealer Academy, and are continuing the Boggus legacy into its 90th year. Frank Boggus spent his life providing essential transportation to the Texas Rio Grande Valley, but he also made it a priority to provide a helping hand to anyone in need and to make the world a better place for us all. He will certainly be missed, but his good work and family legacy will live on forever. 19 TADA.ORG
HOUSTON AUTO SHOW PREVIEW NIGHT GALA On Jan. 24, 2023, the Houston Auto Show Preview Night Gala was held at the NRG Center Show Floor. Attendees celebrated decades of the finest vehicles and got a sneak peek at this year’s models. Everyone was entertained by live music and dancers, enjoyed good food, and a few lucky people walked away with some great giveaway prizes. A big thanks to the sponsors and exhibitors.
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On the showroom floor of Lade Ford in Frankston, Texas, an incredible Mach 1 Mustang is on display. The car has been passed down to Jeremy Lade from his father, James Lade, Jr. On the 50th anniversary of Lade Ford’s partnership with Ford Motor Credit Company, Jeremy proudly shares the story of this one-of-a-kind treasure. Around 1969, Jeremy’s dad (James William Lade, Jr.) remembers accompanying his dad, James William Lade, Sr., and his mother to a Ford event in Colorado where new vehicle models were revealed to Ford dealers from around the country. James, Jr. was 17 at the time. James recalled the moment at the event when the curtain rose to reveal a red Mach 1 fastback Mustang on the turntable, with fog (from dry ice) coming from underneath the car to make it look even cooler! James, Jr. leaned over to his mom and told her he was going to get a car like that one day. And he did … James, Jr. ordered his 1969 Mach 1 Mustang just the way he wanted it, including a 428 cubic inch cobra jet engine. He changed a few things on the car that made it his own. He painted the decklid like the Boss series Mustangs, added a spoiler, and bought wheels from Shelby that they put on the GT500. (He worked hard, hauling hay for three summers to pay it off!) Unlike most of us, James never sold his high school car. His car is unrestored or a “survivor” car. It is not perfect but is just like he had it, complete with a case of eight track tapes in the rear seat. Upon his passing, James left his Mach 1 to his son, Jeremy, who is the current owner/operator of Lade Ford, where it is prominently displayed on the showroom floor. A year after his dad passed, Jeremy ordered a report from Marti Auto Works. The Marti report indicates how many cars were built with particular options during a model year. According to the Marti report, James Lade’s 1969 red Mach 1 is the only car ever built the way it was built … a “one of one” car. Jeremy also has no intention of parting with the Mustang and will pass it down to the next generation of Lades. Photos courtesy Palestine Herald-Press. ON DISPLAY AT LADE FORD IN FRANKSTON, TEXAS … A FAMILY TREASURE DEALER’S CHOICE 22
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Ryan Kirkpatrick Vice Chair District Directors 19 Carlos Liriano 21 Pat Schuchart 24 Joseph Shields 26 Mark Stevenson SOUTHWEST Scott Peters Vice Chair District Directors 2 Fernando Varela 3 Joe Loving 4 Robert Turner 7 Ashley Willson EAST W.C. Smith III Vice Chair District Directors 5 Jason Feldman 6 Kirby Janke 15 Chris Kennedy 33 Tony Gullo, Jr. SOUTHEAST Evelyn Sames Vice Chair District Directors 17 Melissa DeMontrond 18 Don Whitaker 20 Jennifer Yoder 27 Bud Payne SOUTH 2023 Executive Committee Joe Chastang IMMEDIATE PAST CHAIR Charlie Gilchrist CHAIR Brian Case, Sr. CHAIR-ELECT Daniel Bradley Vice Chair District Directors 28 David Zwiacher 30 Patrick Sykora 31 John Luciano NORTHWEST Paul Tigrett Vice Chair District Directors 10 Tony Pack 22 Stephen Gilchrist 23 Jose Pozos 34 Mark Daniels NORTH Jeff Rachor Vice Chair District Directors 1 C.J. Barnett 8 Scott Fly 9 Finley Ewing, IV 35 Tobias Fulton NORTHEAST Greg Bruner Vice Chair District Directors 16 Tim Crenwelge 25 Jimmy Bass 29 Bill Pollard, Jr. 32 Drew Hoy WEST Mark Rowe Vice Chair District Directors 11 Julie Herrera 12 Mike Zorn 13 Mary Karr-Ellis 14 Scott Stark CENTRAL 2023 TADA Leadership DEALER’S CHOICE 24
DIRECTORS AT-LARGE CAR DEALERS • Howie Bentley • Benny Boyd • Bently Durant • T. Harper • Paula Lohse • Mike Sullivan • Brandon Tomes TRUCK DEALERS • James Bennie Brian Bruckner TEXAS TRUCK DEALER CHAIRMAN Karen Phillips TADA GENERAL COUNSEL AND EXECUTIVE VICE PRESIDENT Darren Whitehurst TADA PRESIDENT METRO CHAIRS • Alfred Alvarado • James Bagan • Jacob Boggus • Joe Chastang • Art Kiolbassa • Brent McGavock • Carl Sewell, III 25 TADA.ORG
Robert TURNER C.J. BARNETT Jason FELDMAN Kirby JANKE Ashley WILLSON Fernando VARELA Joe LOVING East, Dist. 4 East, Dist. 3 East, Dist. 2 Northeast, Dist. 1 Southeast, Dist. 5 Southeast, Dist. 6 East, Dist. 7 Scott FLY Mike ZORN Mary KARR-ELLIS Scott STARK Finley EWING, IV Tony PACK Julie HERRERA North, Dist. 10 Central, Dist. 11 Northeast, Dist. 9 Northeast, Dist. 8 Central, Dist. 12 Central, Dist. 13 Central, Dist. 14 Steven GILCHRIST Mark STEVENSON Bud PAYNE David ZWIACHER Jose POZOS Joseph SHIELDS Jimmy BASS Southwest, Dist. 24 West, Dist. 25 North, Dist. 23 North, Dist. 22 Southwest, Dist. 26 South, Dist. 27 Northwest, Dist. 28 Bill POLLARD, JR. Tony GULLO, JR. Mark DANIELS Tobias FULTON Patrick SYKORA John LUCIANO Drew HOY Northwest, Dist. 31 West, Dist. 32 Northwest, Dist. 30 West, Dist. 29 Southeast, Dist. 33 North, Dist. 34 Northeast, Dist. 35 James BENNIE Paula LOHSE Mike SULLIVAN Brandon TOMES Howie BENTLEY Benny BOYD T. HARPER Bently DURANT Director-At-Large Director-At-Large Director-At-Large Director-At-Large Director-At-Large Director-At-Large Director-At-Large Director-At-Large Alfred ALVARADO Art KIOLBASSA Brent MCGAVOCK Joe CHASTANG Carl SEWELL, III James BAGAN Jacob BOGGUS Metro Chair Metro Chair Metro Chair Metro Chair Metro Chair Metro Chair Metro Chair Melissa DEMONTROND Chris KENNEDY Carlos LIRIANO Jennifer YODER Pat SCHUCHART Tim CRENWELGE Don WHITAKER South, Dist. 17 South, Dist. 18 West, Dist. 16 Southeast, Dist. 15 Southwest, Dist. 19 South, Dist. 20 Southwest, Dist. 21 2023 District Directors DEALER’S CHOICE 26
For over 23 years, First Innovations has focused on growth through getting better, not growth through acquisitions. We understand that Bigger is Not Better, Better is Better. First Innovations is dedicated to providing personalized value driven support with Better Products, Better Price and Better Service. Every account is valued and not just a number on some large conglomerates balance sheet. YOU are important to us and there is no structure, product, or program that we don’t have. First Innovations remains unapologetic for its hands on personal holistic approach to dealership income and personnel development. First Innovations, Inc. —The Full Dealership Income Development Company Better Products • Better Prices • Better Service With all of today’s mergers and acquisitions there are two important questions YOU need to ask yourself. Does your provider’s merger or acquisition by a larger Private Equity or Publicly traded company make YOUR business better? a. Have your costs gone down? b. Has your level of service increased? c. Are your results improving as a result of the merger? d. Do you now feel more like a Small Fish in a bigger pond? What is the Mission Statement of the controlling entity long term? a. Are they building a company to LAST or a company to sell again? b. Are you going to have to go through provider ownership transitions every 4-6 years? c. Are they cutting long term employees and expenses from the acquired providers to drive up their EBITDA for resale valuation? First Innovations (part of the First Group Family of Companies) has spent over 23 years building a company to LAST, NOT RESALE, and our Vision and Mission statements have not changed. We are growing ONE VALUED CLIENT AT A TIME. OVER $100 BILLION IN ASSETS BACKING US! 1-800-395-8664 www.firstinnovations.com “INNOVATIVE AUTOMOTIVE SOLUTIONS AT WORK”
YOUNG DEALER DAY AT THE TEXAS CAPITOL Young Dealer Day at the Capitol was a huge success! The young people in our Texas Dealer Academy (TDA) continue to shine and impress with their ability to advocate for the franchised dealer community. Nowhere was that more evident than their recent day at the Texas Capitol, hosted by the TADA Legislative Office. The following TDA members made the trip to Austin in March for this event: Central and Southeast: Claire McDonald (TADA Legislative Chair), Chris Wall Houston and East Texas: Robby Knapp, Anthony Gullo Rodriguez, Brett Rodriguez, John Thomas San Antonio: Claire Cavender McNab Valley: Jackie Cervantes, Andrea Yoder, Lien Yoder, Ryan Yoder The program began with a dinner at Perry’s in downtown Austin the night before the group was scheduled to make their visits at the Texas Capitol. During the gathering for dinner, the group was joined by House Transportation Chairman Terry Canales, TADA’s Darren Whitehurst, Karen Phillips, and Kathy Sims and addressed by TADA Chairman Charlie Gilchrist of Weatherford and Rob Braziel and Kate McGrath from the TADA Legislative Office. Also joining the group for dinner were the metro/regional association executives, including Lexi and D’Anne Buquet of the Valley and El Paso, Pam Crail of San Antonio, Brent Franks of Dallas/Fort Worth, and Wyatt Wainwright and RoShelle Salinas of Houston. DEALER’S CHOICE 28
At breakfast the next morning, the group attended an informational session at their hotel where they were given a legislative briefing and discussed the dealer issues in front of the Texas Legislature. It was a busy day at the Capitol, but those in the TDA group were still able to have nearly 20 meetings with legislators and their staff, including a special visit and tour with Lieutenant Governor Dan Patrick. This group made up the biggest TADA lobby contingent on any day this session, and they did a great job telling the dealer story, emphasizing the most important issues for franchised dealers and advocating for the legislation TADA is trying to pass this legislative session. Texas Dealer Academy members did what it took to make these meetings meaningful and productive. TDA has now had three Texas Capitol Days in Austin (2017, 2019 and 2023) and two trips to Washington, D.C., the first in June of 2013 and the most recent visit in May of 2022.TADA is extremely blessed to have these young leaders actively participating in the Texas Dealer Academy. 29 TADA.ORG
DEALER SPOTLIGHT Buckalew Chevrolet, LP of Conroe, Texas, is excited to announce and recognize two outstanding employees, Lupe Espinosa and David Dominguez, who will reach the 40-year mark of employment by this dealership in 2023. Both individuals have excelled in their abilities to perform their workmanship and are respected and looked up to by their co-workers. Lupe Espinosa is a Master Painter in the dealership’s Body Shop. His work has proven to be top quality and his passion for perfection shows in every vehicle he paints. Lupe is well respected in the community and is known by his peers for his ability to match paints on vehicles, making them look just like they did when they were new from the manufacturer. Lupe has been married to his wife, Sandra, for over 44 years. He is the proud father of three boys, Lupe Jr., Alex and Allen (who are twins). He has a daughter, Arlene, and he answers to “Papa Bear” for his four grandchildren. Lupe, in his off time, enjoys spending time with his boys fishing or sitting around, strumming the guitar. David Dominguez has been the dealership’s main trim technician and has recently moved to New Vehicle Make Ready. He began his career at Buckalew in the Body Shop as a porter and then moved up to become a painter’s helper. After being a helper, he advanced to doing body work and then, in 1996, moved over to the service department to become a trim technician. David has completed all of General Motors’ required certifications. For years, David has been the go-to man for a hard-to-find rattle, squeak, or water leak. If it was there, David could find it, and he would know how to fix it. In David’s off time, you will still find him working on his personal and family vehicles. To him, that is relaxation. David has been married for 30 years to Pamela and is the proud stepfather to three boys, Jerry, Jason and JD, and one girl, Sonya. He will probably be repairing family vehicles for a long time as he also has eight grandchildren and six great-grandchildren. DEALER’S CHOICE 30
We at Ancira are excited to have solar carports at our dealership because it not only brings long term savings for our business, but we’re able to reduce greenhouse gas emissions, provide shade to our customers, and it makes us feel like we’re being good stewards of our community. Protect inventory, lower energy bills, save on insurance. Contact us to learn more. auto@bigsunsolar.com 210.960.2303 April Ancira Vice President Ancira Auto Group Texas Auto Dealers are going solar to save big!
Hurricane Harvey George W. Bush Presidential Library Buckalew Elementary School Texas Special Olympics Donate today and help us give back to our community! 1. To promote motor vehicle and driver safety; 2. To provide support to educational institutions and to individuals; 3. To present lectures, seminars, discussions, and similar instructional endeavors related to serving the public welfare, including the automotive industry; 4. To prepare and maintain information regarding the legal, social, economic, and other aspects of the automotive industry; 5. To receive contributions from individuals, businesses, and entities who wish to contribute to promote the mission and purpose of the Foundation; 6. Notwithstanding any other provision of these Articles of Incorporation, the objectives and purposes of this corporation are charitable, educational, and scienti c within the meaning of Section 501(c)(3) of the Internal Revenue Code of 1954, or corresponding provisions of any future federal tax code. For information on donating to the TADA Foundation email: info@tada.org e purposes for which the Foundation is organized are: www.tada.org 108 Lavaca, Suite 800 Austin, Texas 78701 (512) 476-2686 Fax (512) 322-0561
Community Service STREET VOLKSWAGEN OF AMARILLO All Hail the King! We had a great time at the first-ever Wine, Women & Shoes event that benefitted the Ronald McDonald House. Our very own Sole Man, John Luciano, raised $7,750 for this great cause. Our table full of ladies enjoyed a night of fun entertainment and food! Thank you to everyone who donated and helped us surpass John’s goal. “I was so honored to be serving our community as a ‘Sole Man’ champion for Amarillo’s 1st Annual Wine Women & Shoes! For the past 40 years, Ronald McDonald House has cared for families of hospitalized children who are in need of a home-awayfrom-home while their children receive medical care. It costs $100 a night to house a family at RMHC of Amarillo, but thanks to the generosity of our area’s supporters, no family is asked to pay for their stay. When I raised the most money with your support, I was crowned ‘King of Sole’ on March 23rd!” — John Luciano, Street Volkswagen of Amarillo, “King of Sole” DEALER’S CHOICE 34
SAMES AUTO GROUP The team at Texas’ oldest dealership makes it fun to raise money with their Jeans for Non‑Profit, a program that first started in June 2014. Employees donate $2 each Friday in exchange for wearing jeans to work. Last year, with the acquisition of Sames Chevrolet and Sames Nissan, the program added over 150 new employees participating in the program. In addition, during their holiday luncheon, employees from the Laredo stores voted for their top three non-profit organizations to receive their Jeans for Non-Profit donation. Winners included Driscoll Children’s Hospital, Sacred Heart Children’s Home, and Bethany House of Laredo. “What makes this donation special is this is above and beyond what Sames as a corporation donates annually. This donation comes directly from the generosity of our team, and I am so proud of them!” said Evelyn Sames, Chief Operations Officer for Sames Motor Company. Last year, checks were presented at Sames Laredo showrooms joined by employees from all stores (Sames KIA, Sames Nissan, Sames Chevrolet, Sames Ford, Sames Mazda, Super Centers and Quick Lane), along with General Managers Thomas Piña, Trent Stricker, Jerry Resendez and COO Evelyn Sames. Habitat for Humanity again partnered with the Sames Auto Group as Sames Laredo Ford and Sames Laredo Chevrolet were the title sponsors for the 11th Annual Golfing for Roofs fundraising tournament on April 1, 2023 at Casa Blanca Golf Course. The annual tournament is held to raise funds for building new homes and repairing existing ones for low-income families across Webb County and providing disaster services. 35 TADA.ORG
FORD OF BOERNE We would like to thank the Greater Boerne Chamber of Commerce for allowing us to sponsor the Boerne ISD State of the School District Address & Luncheon. We would like to congratulate the outstanding teachers and support staff that make Boerne School District the best! To learn more about the Greater Boerne Chamber of Commerce, visit boerne.org. continued on page 38 DEALER’S CHOICE 36
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KNAPP CHEVROLET Great lunch in downtown Houston to celebrate the Houston Area Chevy Dealers’ partnership with the Houston Astros for the 2023 season! The cherry on top was the special appearance of the World Series Championship Trophy! BRANDON TOMES SUBARU Brandon Tomes, Owner of Brandon Tomes Subaru in McKinney, Texas, is a thirdgeneration dealer, continuing the path of his parents and grandparents in the car business. Brandon Tomes Subaru was recently named McKinney Chamber of Commerce’s Business of the Year. He shares, “In our showroom hangs the Subaru Love Promise. It states: ‘At Brandon Tomes Subaru, we believe in something more. We believe in being a positive force in something bigger. We believe in helping our community, not just by our donations, but by our actions. We believe in setting an example for others to follow. We believe the relationships we build should last a lifetime. We will strive to ensure that love is not just felt by our customers, but by all. We do this because it is the right thing to do.’ Our family believes strongly in that quote and thinks of it when we plan our support for the many organizations and charities we work with in our community. I believe that those who have the ability to help also have the duty to do so. With that said, it gives us great pride to give back to our community and to our hometown.” Robby and Bobby Knapp Knapp Chevrolet Houston, TX Scan the QR code to hear more from Brandon. https://www.youtube.com/watch?v=gem3kzkjsOk continued from page 36 DEALER’S CHOICE 38
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