FALL 2022 Dealers’ Choice Pub 63 2021-22 | Issue 1 WHY TEXAS AUTO DEALERS ARE ADOPTING SOLAR ENERGY THE SECRET TO CONTROLLING DEALERSHIP EXPENSES Selling, Service and Civic Leadership An interview with Milton Crenwelge
1311606 8/24/20 73-772 ENDORSED SINCE 2010 This is a paid endorsement. Property and casualty coverages are underwritten, and safety services are provided, by a member of the Sentry Insurance Group, Stevens Point, WI. For a complete listing of companies, visit sentry.com. Policies, coverages, benefits, and discounts are not available in all states. See policy for complete coverage details. To the businesses that do right by all of us, thank you. You make us proud to insure dealerships like yours. You sell and service the vehicles that helpkeepAmericans safe, active, and focusedon the roadahead. Because you do right by us, we’ll be right by you. sentry.com
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Dealers’ Choice is a publication of The newsLINK Group and is the official publication of the Texas Automobile Dealers Association. Dealers’ Choice is published four times per year by The newsLINK Group, LLC. The statements and opinions expressed herein are those of the individual authors and do not necessarily represent the views of Dealers’ Choice or its publisher, The newsLINK Group, LLC. Any legal advice should be regarded as general information. It is strongly recommended that you contact an attorney for counsel regarding specific circumstances. Likewise, the appearance of advertisers does not constitute an endorsement of the products or services featured by The newsLINK Group, LLC. FALL 2022 Dealers’ Choice Pub 63 2021-22 | Issue 1 WHY TEXAS AUTO DEALERS ARE ADOPTING SOLAR ENERGY THE SECRET TO CONTROLLING DEALERSHIP EXPENSES Selling, Service and Civic Leadership An interview with Milton Crenwelge Scan this code with your smart phone for a direct link to the TADA website. 8 Dealers’ Choice 16 22 6 A Message From TADA President Darren Whitehurst 8 Why Texas Auto Dealers are Adopting Solar Energy 12 SA Auto Dealers and Texas Cavaliers Donate Funds to Support Rise Recovery 14 Chairman's Workshops 16 Selling, Service and Civic Leadership an Interview with Milton Crenwelge 22 2022 TADA Board Meeting 26 2022 TADA Leadership 27 2022 TADA Board of Directors 30 Community Service 33 TADA Save the Date 2023 34 Succession Planning for Dealers in an Evolving Business Environment 36 TADA-Endorsed Lone Star Sponsors 40 The Secret to Controlling Dealership Expenses 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
A Message From TADA President Darren Whitehurst For the first time since 2016, the Texas Automobile Dealers Association has performed workshops in different regions of the state to discuss regulatory, legal and legislative issues of importance to Texas dealers. Our current TADA Chair, Joe Chastang, felt the workshops were a great way to visit dealers across the state about all the work TADA was doing on behalf of Texas dealers and hear from dealers about their difficulties and challenges. Despite the numerous business successes achieved by dealers in 2022, there are growing concerns with the economy, interest rates, new manufacturer programs specifically targeting the sale of electric vehicles, inventory levels, increases in regulatory burdens, and numerous legislative challenges at the state and federal levels. These challenges all highlight the importance of the association working diligently to ensure that dealers continue to have a great environment to operate their businesses and achieve success wherever they reside. The foundation of our team effort includes dealerships of all sizes and business models, our local metro associations, and other proponents across the state committed to a strong franchise dealer system. Our success at the local, state and federal levels ultimately begins at the relationship level and is community-based with dealers. The latest iteration of our journey starts with the upcoming 2022 elections. Early voting for the Nov. 8, 2022, General Election begins on October 24 and ends on November 4. Voter turnout, specifically TADA member participation, is vitally important in many races across the state. TADA educates and fosters relationships with elected officials and state agencies year-round, relaying our industry’s concerns about legislation and regulation and its impact upon each and every one of our franchised dealers. While this work is extremely important to our success, it is also our responsibility to get out during elections and vote for those elected officials who have supported us. Please make a plan to cast your ballot and encourage your employees, community members, and as many people as possible to vote. If you have any questions about the candidates the TADA PAC has supported, refer to the TADA Legislative Newsletter sent on Monday, Oct. 24, 2022. For polling locations and sample ballots, please visit www.votetexas.gov. And to determine your representatives, go to https://wrm.capitol.texas.gov/home. 6
In addition to the workshops, TADA has been conducting regional legislative visits across the state, updating and educating members and pertinent Texas House and Senate committees on issues that impact us the most. These touchpoints have allowed us to engage in more in-depth conversations about the robust businesses of the Texas franchised automobile dealers. Members of the TADA Legislative Committee will be meeting in mid-November to finalize the key priorities that the association will focus on during the session, so stay tuned for updates from that meeting. We will be discussing the proactive measures we intend to pursue as well as any defensive actions we need to take. The 88th Texas Legislative Session quickly follows the general election and is set to convene at noon on Tuesday, Jan. 10, 2023, and meets for 140 calendar days. You are welcome to visit anytime, particularly during the session, and we are happy to introduce you to the legislative process. Please also remember to connect with TADA on social media — on Facebook @TexasAutomobile Dealers Association and Twitter @autodealerstx — to keep up-to-date with what is happening. Thank you for all you do for TADA, your communities, customers, employees and our state. I so much appreciate your support in the past to ensure the success of Texas dealers, and look forward to many future endeavors together. Please let me know if you have any thoughts or insights that you want to share. TADA continuously educates and fosters relationships with elected officials year-round, relaying their industry’s concerns about legislation and regulation that impacts each and every one of our franchised dealers. 7 FALL 2022
Despite unprecedented inventory delays resulting from the pandemic, the automotive industry continues to grow. According to the latest Global Automotive Market Report, the industry is expected to grow at a compound annual growth rate of 3.7% from 2020 to 2030, reaching 122.83 million units by 2030. Prior to the pandemic, about 450,825 cars were sold in Texas in 2018, making it the third best-performing state in terms of car sales. Consumers are increasingly making purchasing decisions based on sustainability factors, and it’s challenging auto dealers to look for ways to reduce their carbon footprint to meet the needs and wants of their consumers. While there are many ways auto dealers can reduce their carbon footprint, solar carports have proven to not only reduce energy costs, but are also an effective way to protect valuable inventory. Reduce Inventory Loss with Hail Protection While lowering energy costs is the primary driver for businesses to invest in solar energy, solar carports have unique benefits for auto dealers. According to the 2020 NICB ForeCAST(™) report, Texas was the top state in total hail loss claims from 2017 through 2019, with 637,977 hail loss claims, accounting for 23% of total claims during that period. Most auto dealerships with inventory in open surface lots invest in hail insurance — but that can be costly. One way to protect against hail is with solar carports. With covered inventory, auto dealerships can protect their inventory from hail damage and see savings on their insurance premiums. Rush Enterprises partnered with the Big Sun Community Solar program to offer solar carports at their trucking center in Converse, Texas. With 3,500 solar panels, this is the largest solar carport installation in Texas and provides shade to 181 of their semi-trucks. These carports protect inventory from hail damage, something they experienced in the past. “We always have the threat of hail damage. In 2016, we experienced well over $1 million in damage to our inventory. The solar carports mitigate any of those damages going forward.” said Steve Owens, Regional General Manager, Rush Truck Centers — San Antonio. Why Texas Auto Dealers are Adopting 8
Commercial businesses can take advantage of federal tax credits to reduce the cost of solar energy investment. The solar Investment Tax Credit (ITC) was introduced in 2006 to incentivize residences and businesses to invest in solar energy and has been fundamental in the growth of the solar industry. The tax credit started at 30% and is now at 26%. Not only do the solar carports protect their inventory, but Rush also doesn’t have to use resources to move inventory to and from their auto repair center building during extreme weather events, saving them time and money. Take Advantage of the Latest Tax Credits Commercial businesses can take advantage of federal tax credits to reduce the cost of solar energy investment. The solar Investment Tax Credit (ITC) was introduced in 2006 to incentivize residences and businesses to invest in solar energy and has been fundamental in the growth of the solar industry. The tax credit started at 30% and is now at 26%. To take advantage of the 26% tax credit, a solar project’s construction would need to begin in 2022. The Ancira Auto Group recently commissioned a solar carport installation at their KIA dealership in San Antonio and will take advantage of the 26% tax credit. “We at Ancira are excited to bring solar carports to our dealership because not only will it bring 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,” said April Ancira, Vice President of Ancira Auto Group. Improve Customer Experience with Shade We all know it gets hot in Texas. A parked car can get up to 50 degrees hotter inside the car than the outside temperature. Trying to test drive vehicles in July and August in South Texas can be unbearable. Auto dealerships have recently invested in shade for their inventory. Still, it has usually been with cloth canopies that typically need to be replaced every few years because of wear and tear from the sun. Solar carports provide shade and use the sun’s energy to generate solar savings. When Bobby Cavender, President of the Cavender Auto Group, decided to invest in solar carports with Big Sun Solar, the primary drivers were the financial benefits. Now with solar carports at five San Antonio-area Cavender dealerships, the other realized benefits have been hail protection and the improved customer experience, something most important to Cavender. SOLAR ENERGY— CONTINUED ON PAGE 10 9 FALL 2022
“For the consumer, it provides an incredible comfort level with the shade that’s produced from these solar panels because these vehicles in the summertime can get up to 140 degrees inside,” said Cavender. Summary While businesses are looking to solar energy to reduce their energy costs, auto dealerships have a unique opportunity with solar carports. Solar carports not only generate significant savings on their electric bills but they also: • Improve the customer experience by providing shade to customers and employees; • Lower insurance premiums by protecting valuable inventory from extreme weather events; • Show a visible statement to their customers on their commitment to sustainability and • Can be used in marketing materials illustrating their green initiatives. If you manage or own an auto dealership and want to reduce overhead costs, get in touch with Big Sun Solar at auto@bigsunsolar.com. Read more about the Ancira Auto Group and its solar carports at https://www.bigsunsolar.com/customers/ancira. Read more about the Cavender Auto Group and its solar carports at https://www.bigsunsolar.com/customers/cavender. The solar Investment Tax Credit (ITC) was introduced in 2006 to incentivize residences and businesses to invest in solar energy and has been fundamental in the growth of the solar industry. SOLAR ENERGY— CONTINUED FROM PAGE 9 10
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!
SA Auto Dealers and Texas Cavaliers Donate Funds to Support Rise Recovery 12
SA Auto Dealers and the Texas Cavaliers presented a check for $112,460 to Rise Recovery to support the organization’s work to combat drug and alcohol use among youth. Half of the funds were raised during SA Auto Dealers’ 3rd Annual Dealers Aligned Initiative in September. More than 40 San Antonio and South Texas auto dealerships donated $10 for each wheel alignment they performed during September to benefit a local nonprofit. The Texas Cavaliers, a San Antonio charitable organization, generously committed to matching the dollars raised during Dealers Aligned 2022, bringing the campaign’s total amount to $112,460. This year’s beneficiary, Rise Recovery, received 100% of the proceeds. Rise Recovery provides services to help teens, young adults and families overcome the effects of drugs and alcohol, and partners with the community in education and prevention. “It is an honor and pleasure to be able to support nonprofits in our community that do so much to help others,” said Pamela Crail, President of SA Auto Dealers. “We appreciate the partnership with the Texas Cavaliers, which has enabled us to work together to double the impact of this important cause. I’d like to extend a special thanks as well to all of the San Antonio vehicle owners who visited our member dealers in September and helped make this gift possible simply by servicing their car!” Ancira Buick GMC Ancira Chrysler, Jeep, Dodge, Ram Ancira Ford Floresville Ancira Kia Ancira Nissan Ancira South Park Nissan Ancira Volkswagen Of SA Ancira Winton Chevrolet Audi Dominion Cavender Buick-GMC North Cavender Buick-GMC West Cavender Cadillac Company Cavender Chevrolet Cavender Grande Ford Cavender Toyota Gunn Automotive Group Ingram Park Chrysler, Jeep, Dodge, Ram Gillman Automotive Group Ingram Park Mazda Ingram Park Nissan Jaguar Land Rover San Antonio Jordan Ford North Park Chevrolet Castroville North Park Lexus at Dominion North Park Lexus San Antonio North Park Lincoln North Park Lincoln at Dominion North Park Mazda North Park Subaru North Park Subaru Dominion North Park Toyota North Park Volkswagen Nyle Maxwell Of Castroville Chevrolet, Dodge, Jeep, Ram Principle BMW of San Antonio Principle Mini of San Antonio Principle Infiniti of Boerne Principle Hyundai Boerne Principle Volvo Cars San Antonio Red McCombs Hyundai Northwest Red McCombs Superior Hyundai World Car Hyundai Kia World Car Mazda Kia San Antonio World Car Mazda Kia North World Car Kia New Braunfels SA Auto Dealers is comprised of franchised new car and truck dealers from San Antonio and the surrounding area committed to educating and advocating for those in the automotive industry and those served by it. SA Auto Dealers serves consumers looking for vehicle-related information, promotes continued education for employees in the automotive industry, advocates for dealers and their employees, and promotes public awareness on issues related to motor vehicles. To learn more, visit saautodealers.com. To learn about the Texas Cavaliers, please visit www.texascavaliers.org. To learn about Rise Recovery, please visit riserecovery.org. Participating dealerships in Dealers Aligned for 2022 include: 13 FALL 2022
For the first time since 2016, the Texas Automobile Dealers Association has performed workshops in different regions of the state to discuss regulatory, legal and legislative issues of importance to Texas dealers. Our current TADA Chair, Joe Chastang, felt the workshops were a great way to visit dealers across the state about all the work TADA is doing on behalf of Texas dealers and to hear from dealers about their difficulties and challenges. Chairman's Workshops Hit your target market. Get more exposure • Increase revenue To advertise in this magazine, contact us today. 801.676.9722 | 855.747.4003 thenewslinkgroup.org | sales@thenewslinkgroup.com 14
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Raised in the automotive industry, Milton Crenwelge is now the family business patriarch. The longtime owner and operator of the Crenwelge Automotive Group, Milton has been a business and civic leader in Fredericksburg for decades. At the Gillespie County Fair, he appeared as Grand Marshal in the Gillespie County Fair Parade. He gave us insight into this honor and explained more about his distinguished career. (Edited for clarity and length.) Since this was the second time he acted as the Parade’s Grand Marshal, we asked him about the first time. He said it was back in 1948 — when he was 15 years old — and the town had actually closed down the highway because the parade headed to his new dealership location. “I got to drive the first new car from the east end [of town] to the west,” he said, stating he was accompanied by the high school band. Next, we asked about how his company, Crenwelge Automotive, began. He said it was started as a gas station by his father in 1927, where they did vehicle services and repairs. “And then we got into selling cars in the 1940s. We got the first franchise in 1940. However, when World War II broke out, we didn’t have any new cars for four-and-a-half years. But luckily, with the service station and repair business, through those years, we were Selling, Service and Civic Leadership An interview with Milton Crenwelge 1956 Centennial Anniversary Parade for Kerr County. My Dad provided a new 1956 DeSoto Coupe for the “Tap & Toe Dance Studio” where my Mom was the dance instructor. They were dating at the time and not yet married. The young girl next to Mom was Donna Faye Friedrich and her mother, Ruby, one of the owners of the dance studio. 1946 Centennial Parade of Fredericksburg Fredericksburg Parade shows our second location on Main Street in the 100 block. Our family gas station and dealership are shown at upper right. 16
able to keep the business going.” Crenwelge said the war-years shortages and business changes were similar to what they endured with the coronavirus pandemic, and that the more recent difficulties getting vehicles because of microchip shortages had “sort of prepared” him and his staff on how to survive. Moving on, we talked to Milton about the actual history of the Crenwelge Automotive Group and how it all began. In downtown Fredericksburg, on the 100 block of East Main — also known as Dooley’s Block — there were 28 service stations and eight new car dealerships before and after World War II. And then came the franchised car dealers. In those days, Chrysler had three divisions — Chrysler, Dodge and DeSoto — and each had Plymouth, so there were three Plymouth dealers on one block across the street from Dooley’s. “There was Joseph Brothers Dodge-Plymouth,” Milton said. “A few doors up next to the publishing company, Standard Service was Chrysler-Plymouth, and we were at the end of that same block with DeSoto-Plymouth. That was a huge part of the local economy. Nobody got rich, but everybody made a living because you worked 16 hours a day and looked out for each other. Milton stated, “Back then, our first location was across the street from where the Walmart is today. There was the Fredericksburg Tourist Park, and next to its entrance was a service station with a little house Mom (Mickey) and Dad with the 1940 DeSoto. Milton Crenwelge won a trip to Washington DC in 1960 for his outstanding sales volume with Plymouths in 1959. attached. And that’s where my dad started the service station and auto repairs in 1927. Then in ’34, he moved midtown to the 100 block of Main. This second location was located where the Christmas Store is now housed on the southeast corner of Llano and Main. In 1948, he moved to the 400 block, and in 2001, we moved to the 800 block.” Milton told us he started working for his father when he was 10 years old. He remembered that at age 10, his father told him to watch the driveway of the service station on the corner of Main and Llano. Two hours later, his father returned and told Milton, “You have a new brother.” Along with new baby brother Ruben, Jr., Milton grew up with three sisters and another brother, Marvin. While Marvin is still at the company, they lost Ruben a few years back. “But all three of us worked in the business,” Milton said. “Ruben was our service manager for 52 years. And I think MILTON CRENWELGE— CONTINUED ON PAGE 18 Part of owning and running a dealership means sometimes running into people with celebrity status. At one point in his storied career, Milton helped Willie Nelson trade in his Jeep. 17 FALL 2022
that’s what helped make our business because you had one member of the family just as interested in service as you did in selling.” It’s quite extraordinary to have a family business as long as the Crenwelge’s. We were curious about the company’s succession from father to sons and so on to the next generation. “My dad had heart trouble,” Milton recounted, “and he passed away at the young age of 56. I think I was 28. “In those days,” he continued, “a woman couldn’t be a car dealer; it was just a different time. So, we continued working and [when] they finally renewed the dealership franchise, my mother was the owner, but they made me the dealer because I was a male, and I became a dealer at the age of 28. I kept it in the family.” And in keeping it in the family, Milton’s two sons also have been involved in the business. “They grew up in it just like I did,” Milton said. “And, of course, I tried to instill what my dad taught me.” Milton’s father would relay that some things never go out of style: good business ethics, good morals, good principles, and honesty. At one point after World War II, a customer offered to pay an extra $100 to be moved up on the delivery list ahead of other customers. “But we told him we didn’t work that way, and we’re still here.” In 1979, Crenwelge Automotive Group acquired the Kerrville dealership. Milton told us he liked how the gentleman who owned that particular dealership ran it and that he was a good dealer. However, he was at the age where he was looking to retire. He had two sons — one was a doctor, and the other liked the parts business but didn’t want to sell cars. So Crenwelge added this dealership to their group and expanded the family business. Part of owning and running a dealership means sometimes running into people with celebrity status. At one point in his storied career, Milton helped Willie Nelson trade in his Jeep. Another time, Bob Hope came to Fredericksburg as the entertainment for a grand opening of some sort. “His twin-engine plane had to use Lyndon Johnson’s runway in Stonewall,” Milton told us. “The Fair Association asked me (and two or three of us Jaycees) if I could furnish a car and go down and pick him up. You know, we had this brand-new Chrysler New Yorker with a white vinyl roof and leather seats. We all wanted his signature, but I didn’t have any paper. He walks over and says, ‘Your car?’ And he writes ‘Bob Hope’ on the roof! The next morning a lady came in and traded MILTON CRENWELGE— CONTINUED FROM PAGE 17 The third Crenwelge Motors dealership located in the 400 block of Main Street where Milton led the parade to its “Grand Opening” in 1948. Crenwelge Used Cars circa 1950 It’s quite extraordinary to have a family business as long as the Crenwelge’s. We were curious about the company’s succession from father to sons and so on to the next generation. 18
in her Imperial. Some of her friends had one of the Lincoln Towncar Signature Series, and now she had a ‘Bob Hope Special.’” We finished our interview with Milton talking about some of the classic cars he owns and if he has any favorites. He told us, “My favorite would be my 1940 DeSoto custom convertible because that was the first year we became a new franchised dealer. My dad never got to sell a DeSoto convertible in Fredericksburg. Not in 1940. But it’s a beautiful car.” As Grand Marshal of the Gillespie County Fair Parade, Milton Crenwelge rode once again — smiling and waving at the crowd — with that 1940 DeSoto because, as he told us, “It’s a beautiful car for a parade.” The dealership after DeSoto was dropped and before Jeep was added in 1963 followed by Chrysler in 1965. The Crenwelge dealership/gas station located at the corner of Main and Llano in the 100 block from 1934 until 1948. Front to back: Milton, his granddaughter Katherine, grandson Jon, grandson Aaron and son Tim. Mary Crenwelge and her three sons, Milton, Ruben Jr and Marvin. Milton Crenwelge, 2022 Grand Marshall standing next the Crenwelge parade float with their 1940 DeSoto. 19 FALL 2022
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2022 TADA Board Meeting September 11-12 – Carlsbad California. 22
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2022 TADA EXECUTIVE COMMITTEE ■Scott Peters■ East ■Bob Boggus■ South ■Greg Bruner■ West Darren Whitehurst President Brian Bruckner Texas Truck Dealers Chairman Karen Phillips Executive Vice President General Counsel ■Don Herring, Jr.■ Northeast ■Paul Tigrett■ North ■Mark Rowe■ Central ■Ryan Kirkpatrick■ Southwest April Ancira Immediate Past Chair Joe Chastang Chair Charlie Gilchrist Chair-Elect ■Daniel Bradley■ Northwest ■W.C. Smith, III■ Southeast 2022 TADA LEADERSHIP tada.org
Bill Pollard, Jr. West District 29 Andrea Gibbs Pickens East District 7 Chris Poulos Metro Chair Jeff Rachor North District 23 Pat Schuchart Southwest District 21 Evelyn Sames South District 20 Scott Fly Northeast District 8 Jereme Schoemaker Northeast District 35 James Bennie At-Large Benny Boyd At-Large Alfred Alvarado Metro Chair James Bagan Metro Chair C.J. Barnett Northeast District 1 Howie Bentley At-Large April Ancira Metro Chair and Immediate Past Chair Jimmy Bass West District 25 Melissa DeMontrond South District 17 Charlie Gilchrist Chair-Elect Metro Chair Bryan Case, Sr. At-Large Jason Feldman Southeast District 5 Mark Daniels North District 34 Finley Ewing IV Northeast District 9 Tim Crenwelge West District 16 Steven Gilchrist North District 22 Brandon Tomes At-Large Joseph Shields Southwest District 24 Patrick Sykora District 30 Mike Sullivan At-Large Mark Stevenson Southwest District 26 David Zwiacher Northwest District 28 Don Whitaker South District 18 Fernando Varela East District 2 Mike Zorn Central District 12 Janet Martin-Clark East District 4 John Luciano Northwest District 31 Brent McGavock Metro Chair Tony Pack North District 10 Dennis Neessen West District 32 Bud Payne South District 27 Paula Lohse At-Large Joe Loving East District 3 Tony Gullo, Jr. Southeast District 33 T. Harper Central District 14 Carlos Liriano Southwest District 19 Mary Frances Karr-Ellis Central District 13 Julie Herrera Central District 11 Kirby Janke Southeast District 6 Chris Kennedy Southeast District 15 2022 TADA BOARD OF DIRECTORS tada.org Jacob Boggus Metro Chair
TADA REGIONS AND DISTRICTS Chair: Joe Chastang Chair-Elect: Charlie Gilchrist Immediate Past Chair: April Ancira Texas Truck Dealers Chair: Brian M. Bruckner NORTHWEST Vice Chair, Daniel Bradley District Directors 31 John Luciano NORTH Vice Chair, Paul Tigrett District Directors 10 Tony Pack 22 Stephen Gilchrist 23 Jeff Ranchor 34 Mark Daniels CENTRAL Vice Chair, Mark Rowe District Directors 11 Julie Herrera 12 Mike Zorn 13 Mary Frances Karr-Ellis 14 T. Harper WEST Vice Chair, Greg Bruner District Directors 16 Tim Crenwelge 25 Jimmy Bass 29 Bill Pollard, Jr. 32 Dennis Neessen NORTHEAST Vice Chair, Don Herring Jr. District Directors 1 C.J. Barnett 8 Scott Fly 9 Finley Ewing IV 35 Jereme Schoemaker SOUTHEAST Vice Chair, W.C. Smith III District Directors 5 Jason Feldman 6 Kirby Janke 15 Chris Kennedy 33 Tony Gullo, Jr. SOUTHWEST Vice Chair, Ryan Kirkpatrick District Directors 19 Carlos Liriano 21 Pat Schuchart 24 Joseph Shields 26 Mark Stevenson EAST Vice Chair, Scott Peters District Directors 2 Fernando Varela 3 Joe Loving 4 Janet Martin-Clark 7 AndreaGibbs Pickens SOUTH Vice Chair, Bob Boggus District Directors 17 Melissa DeMontrond 18 Don Whitaker 20 Evelyn Sames 27 Bud Payne DIRECTORS AT-LARGE METRO CHAIRS Alfred Alvarado April Ancira James Bagan Jacob Boggus Charlie Gilchrist Brent McGavock Chris Poulos 28 David Zwlacher 30 Patrick Sykora 2022 TADA LEADERSHIP tada.org Truck Dealers James Bennie Car Dealers Howie Bentley Benny Boyd Bryan Case, Sr. Paula Lohse Mike Sullivan Brandon Tomes
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”
Attend Achieve and Win “I am very proud that Cavender Toyota and Frost Bank teamed up to incentivize students in the SAISD to strive for perfect attendance this new school year. Presented by the SAISD Foundation, our program is called “Attend Achieve and Win.” Students will win prizes leading up to a Grand Finale Event next June, where we will honor a student and their family with a brand new Toyota RAV 4! Thanks to my friends Pat (pictured here along with SAISD friends and students) and Don Frost for inviting us to participate with them equally in this outreach.” Rick Cavender Bird Kultgen Ford of Waco offered more than just vehicles; they provided free mammograms to the public. This was the third straight year the dealership offered free breast cancer screenings. They partnered up with Baylor Scott & White Health Center in Hillcrest to run the campaign which began on Friday, Oct. 7, and runs through the end of the month. Bird Kultgen Ford Commemorates Breast Cancer Awareness Month 30
Rush Enterprises Doing their part to support Breast Cancer research Rush Enterprises, Inc., which operates the largest network of commercial vehicle dealerships in North America, is offering limited-edition pink mudflaps to raise awareness for Breast Cancer Awareness Month. The pink mudflaps, which feature the Rush Truck Centers logo and iconic ribbon, are available at all Rush Truck Centers locations throughout October. For every mudflap sold, Rush Truck Centers and mudflap manufacturer Roechling Industrial Gastonia will donate $4 to the Breast Cancer Research Foundation. “We are honored to help raise awareness for breast cancer by offering this mudflap to our customers and by displaying it on our own company vehicles,” said W.M. “Rusty” Rush, Chairman, Chief Executive Officer COMMUNITY SERVICE— CONTINUED ON PAGE 32 and President, Rush Enterprises, Inc. “Breast cancer has impacted the lives of many of our customers and employees, and we are proud to support an organization doing important work to save lives and improve outcomes,” he added. The Breast Cancer Research Foundation aims to prevent and cure breast cancer by advancing the world’s most promising research. Since 1993, BCRF-supported investigators have been deeply involved in every major breakthrough in breast cancer prevention, diagnosis, treatment, metastasis and survivorship. There are more than 3.8 million breast cancer survivors in the U.S., and deaths from breast cancer have declined 40% since 1989. More than 44,000 lives are lost to the disease each year. The pink mudflaps come in three sizes, designed to fit all makes and models of commercial vehicles. They are .16” thick virgin UV-stabilized polyethylene resin with a smooth finish, curl-resistant and durable yet flexible and manufactured with pre-drilled holes for easy installation. Rush Truck Centers has already raised more than $9,000 dollars for the Breast Cancer Research Foundation by selling limited-edition graphic tees to its employees and customers throughout the United States. Leukemia & Lymphoma Society Natasha del Barrio of Bert Ogden Rio Grande Valley is the Leukemia & Lymphoma Society-South Central Texas’ Woman of the Year Runner Up. Natasha and her team, Driving Forward for a Cure, raised over $840,100 for blood cancer research during their 10-week campaign. 31 FALL 2022
COMMUNITY SERVICE— CONTINUED FROM PAGE 31 Tommie Vaughn Ford Dealers Kirby Janke and Kyle Janke are pictured with Trophies that were awarded at the Bronco Outdoor Adventure Rally for Best of Show, Best Paint, Best Extreme Offroad, Best Display, and Best Lighting. The Ford Motor Company Fund and the North Texas Ford Dealers have a long history of community involvement, working to empower Texans to make their lives better and strengthen the communities where they live. On Aug. 29, 2022, Elena Ford, Ford Motor Company Chief Customer Experience Officer, the Ford Fund, and the North Texas Ford dealers working with the nonprofit First Book hosted an event at David Crockett Elementary in Weatherford to increase access to books, North Texas Ford Dealers boost opportunities for literacy and encourage STEAM education for children in underserved communities. Literacy Instruction for Texas believes that in 12 years, more than one million people — 30 percent of Dallas County’s projected population — could be illiterate. The issue becomes even more urgent in light of Texas workforce projections that suggest over the next decade, most jobs in the state will require strong STEAM skills. Texas is expected to have the second-highest percentage of future STEAM job opportunities in the nation. To help bridge the literacy gap, the initiative hosted today includes: Distribution of STEAM-related books. The Ford Fund began working with First Book in 2015 to provide books to youth across the U.S. By the end of 2022, the Ford Fund will have invested over $750,000 and delivered more than 145,000 books in Dallas, Detroit, Houston, Miami, Orlando, Phoenix, Kansas City, Puerto Rico and San Antonio. Hands-on participation in literacy events and other activities to engage students and encourage a love of reading and interest in the subjects of STEAM Dallas-Fort Worth nonprofit Harvest Project Food Rescue brought its Ford mobile library, a retrofitted Ford Transit van designed to deliver fresh produce and books throughout the Dallas-Fort Worth area. The vehicle was donated by North Texas Ford Dealers and has delivered food for 4,500 local families since June of this year. 32
TADA Texas Party April 16 & 17 Four Seasons 98 San Jacinto Blvd. Austin, Texas Save the Date Friday, January 27 5:00-7:00 p.m. The Adolphus Hotel 1321 Commerce Street Dallas, Texas TADA Annual Conference 33 FALL 2022
While there are many considerations in running a thriving dealership, one of the most important — and often overlooked — is developing and maintaining a succession plan. A strategy that allows for the transfer of ownership to the next round of leaders — whether family members, a trusted partner or an outside buyer — will position you and your business for future success. Why now? Having a succession plan is important for many reasons; however, in today’s environment, there are three crucial reasons that rise above the rest. 1. There’s a lot of buy/sell activity in the industry and accelerated consolidation. If your long-term plan is to exit the industry, you should consider the current market valuations and buyer interest. 2. The U.S. is on the verge of material changes in tax laws that could affect your finances and the value of your business if passed on to future generations. The estate and gift tax exemption, currently at a historic high of $12.06 million per person or $24.12 million per married couple, will drop by half in 2026 when the current tax law lapses. It could drop even faster if Congress passes a new law before 2026. 3. The market, labor costs, supply chains and other factors influencing dealerships continue to fluctuate. As the pandemic brought home to us, every business needs a plan in place in case top leadership can’t run day-to-day operations. Consider your priorities To begin the succession planning process, you need to identify your goals. Perhaps you’d like to sell — to family, management or a third party — to generate liquidity. You may also want to maintain some level of control of the business, particularly during a transition, if you’re gifting Succession Planning for Dealers in an Evolving Business Environment By Bank of America Corporation 34
or selling the business to family members or selling to trusted employees. Or, you may want to step away completely and allow a third party to take over. In addition to identifying your goals, it’s important to consider how your decision will affect employees and the community to assess whether your actions align with your goals. Finally, you’ll want to consider the financial implications of your decision, whether it’s reducing the amount of taxes you pay or generating liquidity for future needs. Identify key players One of the most critical succession planning decisions is determining the organization’s future leadership. While it can be difficult and emotional to talk with family and key managers about the future, it’s an essential piece of the process. An honest talk about your goals and theirs will help clarify your options and develop a more realistic succession plan. Facilitating the process will be two crucial teams: internal and external. Your internal team will consist of key family members, senior dealership managers, your banker, lawyer and accountant. Your external team will consist of advisors who think broadly and are strategic and defensive, like a transition attorney, estate lawyer, investment bank and appraiser or auditor. Maximize the value of your dealership Once your team is in place, you’ll want to get your documents in order. These include: 1. Financial and business information. You should pull out your business’s financial statements and consider conducting an audit if you plan to sell the dealership. An audited statement is a more powerful statement to share with a prospective buyer. 2. Updated appraisal. An appraisal will compare your business to other dealerships, their gross margins and growth rate. Key metrics are important, whether you’re selling or benchmarking the success of your business for future managers. 3. Strategic plan. It’s an excellent time to create or update the strategic plan for your dealership. It will help you look at your dealership in the context of how the industry is changing and evolving. Opportune times to update your strategic plan include any time you experience changes in your family situation or senior management team. Initiating a succession plan can be emotional, and the process will take time. However, once you get started, you’ll find relief in clarifying your goals, understanding the intent of your family and senior managers and creating strategies that maximize the value of your business and legacy. © 2022 Bank of America Corporation While it can be difficult and emotional to talk with family and key managers about the future, it’s an essential piece of the process. An honest talk about your goals and theirs will help clarify your options and develop a more realistic succession plan. 35 FALL 2022
ACV Auctions is the transparent dealer-only wholesale marketplace that saves money, extends your reach and streamlines the auction process, so you have more time for customers. Sign-up is quick, painless and FREE. Visit them at www.acvauctions.com or contact Stu Zalud at 888-727-0438 or szalud@acvauctions.com. “I use ACV because once I sell a unit and it leaves my lot I never have to worry about it again. “I use ACV because I like keeping my inventory at home. “I use ACV because their customer service cannot be beat.” Jen Coufal, Leif Johnson Ford, Austin APPI Energy provides data-driven procurement solutions that reduce and manage electricity and natural gas supply costs for clients on an ongoing basis. Every day, APPI Energy identifies the wide range of energy supplier prices across the U.S., and the lowest prices available among many vetted, competing suppliers. To take advantage of this membership benefit program, visit www.appienergy.com or contact Drew Pangborn, at APPI Energy at 240-313-5643 or dpangborn@appienergy.com, or Mike Payne at 410-749-5507 or mpayne@appienergy.com. TADA-Endorsed Lone Star Sponsors “APPI Energy has worked with Boggus Motors since 2003. When we really needed help with our electricity contracts, APPI Energy was there. I call them to discuss various energy proposals I receive from lighting retrofits to windmill projects. APPI Energy provides valuable information, excellent customer service, and a resource for all TADA dealers.” Bob Boggus, Boggus Motors Harlingen, TX, TADA Member Built on over 60 years of automotive compliance experience, ComplyAuto serves over 2,000 dealerships nationwide to help them comply with state consumer privacy laws and the Gramm-Leach-Bliley Act’s revised Safeguards Rule. Through advanced tools such as penetration testing, vulnerability scanning, and dealer-specific phishing simulation software, ComplyAuto reinforces existing data protection and cybersecurity protocols in your dealerships. To schedule a product walkthrough go to complyauto.com/schedule-demo. For more information simply visit complyauto.com. 36
American Fidelity Assurance Company provides quality insurance services to dealership employees. Disability, life and cancer coverage are valuable voluntary benefits available to TADA members and their employees through AFA. Section 125 flexible benefit plans, as well as GAP and accident benefits, are also offered by this trusted partner of Texas dealers. Visit www.americanfidelity.com or contact John Hammonds at 214-673-5567 or john.hammonds@af-group.com. “American Fidelity’s business model is superior in the marketplace and is the right fit at Classic Chevrolet.They take a consultative approach in explaining benefits to our employees.” Mark Escamilla Jr., CFO at Classic Chevrolet “I have been doing business with Assurant Dealer Services, Inc. for over 20 years now, and I cannot imagine running a successful F&I department without them. Other dealers ask me how we run such a profitable F&I department and my answer is always the same. Turn the business office over to Assurant Dealer Services, follow their processes, pay plan suggestions and steps to select the right personnel and then hold them accountable to the performance. I have never been disappointed.” Blake Fulenwider, President of the Blake Fulenwider Automotive Group Sentry Insurance is one of the largest and most financially secure mutual insurance companies in the United States, holding an A+ (superior) rating from A.M. Best. Sentry and its subsidiaries provide property and casualty insurance, life insurance, annuities, and retirement programs for businesses and individuals throughout the country. Headquartered in Stevens Point, Wisconsin, Sentry employs more than 4,000 associates in 41 states. Visit www.sentry.com or contact Eric Stiles at 715-346-7272 or eric.stiles@sentry.com. Assurant Dealer Services is dedicated to maximizing profits for Texas dealers. Extensive development services offered through local Dealership Development Managers and a complete portfolio of customer-friendly products enable Assurant Dealer Services to create financial growth for all areas of the dealership. Centered at the core of Assurant Dealer Services offerings are MasterTech and the Automotive Training Academy (ATA). MasterTech, the company’s vehicle service contract program, is an industry leader for coverage and administration, and the ATA specializes in preparing automotive professionals for today’s retail opportunities. Assurant also offers a full line of ancillary products, GAP, credit life, reinsurance and many other products and services. Visit www.assurant.com or contact Dennis Alexander, National VP of Sales dennis.alexander@assurant.com 773-710-5999 Sean Browning, National VP of Development sean.browning@assurant.com 830-285-3333 uto professionals eserve a specialist. eel the pressure of “new” every day. technologies. New op r tions headaches. sales goals. We know b cause we’ve right there, working as an automotive er. At American Fidelity, we specialize s worry, less work, and added expertis ployee benefit solutions—for you. elp is here. Strategic Voluntary Benefits Cost-Management Strategi Year-Round Enrollment Support American Fidelity Assurance Company 37 FALL 2022
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