SUMMER 2023 Dealers’ Choice Pub 63 | 2022-23 | Issue 4 SASQUATCH OFF-ROAD ADVENTURE CLUB OFFICIAL PUBLICATION OF THE TEXAS AUTOMOBILE DEALERS ASSOCIATION PAT SCHUCHART — 2023 WALTER B. WAINWRIGHT KEY DIRECTOR AWARD RECIPIENT Tom Durant 2023 TADA LEGEND
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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. 12 Dealers’ Choice 18 20 6 President’s Message Fighting For Texas BY DARREN WHITEHURST 8 TADA Annual Conference and Board Meeting 11 Sam Pack Receives Honorary Doctorate from Tarleton State University 12 Sasquatch Off-Road Adventure Club 16 Employee Spotlight — Caitlin Bible 18 Pat Schuchart — 2023 Walter B. Wainwright Key Director Award Recipient 20 TADA Legend — Tom Durant 23 Community Service 27 In Memoriam 28 Family Fun in the Sun 31 Cybersecurity and the Auto Industry: Costly Attacks on the Rise BY ONE STEP SECURE IT TEAM 34 2023 TADA Leadership and District Directors 38 State Revenue Watch DEALERS’ CHOICE 4
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PRESIDENT’S MESSAGE Fighting For TEXAS By Darren Whitehurst, TADA President As you likely know, the recently concluded regular session of the 88th Texas Legislature ended with some unfinished business per the Governor’s priority issues (i.e., property tax reform, cracking down on human smuggling, and vouchers to name a few) and with the historic impeachment of Texas Attorney General Ken Paxton. Both outcomes are TBD with the State Senate now tasked with holding the Attorney General’s impeachment trial (likely later this summer) and the Governor having already called the first of what may be many special sessions. So, here is my wrap-up of the regular session — as the old saying goes “things aren’t what they used to be.” Unlike any other I have ever seen, this session we experienced a tremendous amount of game-playing and in some instances, Vegas-styled poker bluffing by members of the Legislature. For example, we had legislators straddling both sides of the auto-economy fence between supporting Texas auto dealers yet prioritizing special interest lobbying requests by national companies. This is a concerning trend that we will be working hard to address during the interim. Thus, as we leave the 88th Texas Legislative session in the rearview mirror, we have a lot to digest as we formulate our legislative agenda moving forward. First the Good News With more than 1,400 dealerships in 300 towns and cities throughout the state, Texas’ new car dealers are the cornerstone of business endeavors throughout the state. In these local communities, you serve as major employers and generate a significant amount of revenue for local and state governments. You also are leaders in your communities and are the first to step up and provide a helping hand to those in need. Despite your investments in your community and in your employees, the goodwill did not necessarily generate success at the Capitol this session, but it is still a huge advantage for us. Keep up the great work! TADA was also able to defeat a number of measures that would have harmed Texas franchised dealers and your customers. Additionally, we created a strong Texas business coalition which was actively engaged during the session and will continue throughout the interim to prepare for next session. While I take responsibility for every loss we experienced, I can tell you that it wasn’t for a lack of effort by our team and so many of our Texas dealers who came to Austin throughout the session. Kudos to them! Now for the Gritty News The warranty/recall bill, HB 4078, was killed in the House on a Point of Order (POO) by Rep. Cole Hefner. The bill would have done a number of things, including ensuring that a manufacturer or distributor pays the dealer for warranty and recall work at the same rate as a retail customer by establishing a formula for parts similar to the one that exists for labor; not allowing the manufacturer to add surcharges on dealers on the wholesale invoice; making the manufacturer pay the dealer for all actual work done by the dealer related to any over-the-air update; and restricting the ability of the manufacturer to reprice parts prior to the issuance of a recall. The manufacturers opposed the bill and, although several changes were made to address legitimate concerns, the opposition continued and ultimately led to the POO that was called. The challenge was a procedural move, effectively killing the legislation for the session. A win for the manufacturers. A win for big national companies over Texas business owners. The OEM Parts bill, SB 1083, would have created a preference for the use of an OEM’s part, product, and repair process on a motor vehicle in the first 36 months after purchased new by the insured. While there was a preference for OEM in this time frame, the insured could still have opted-in to the use of non-OEM parts, products, and repair processes by signing a written disclosure allowing for such use prior to the repair. The bill passed out of the Texas Senate 30-1, and although it had overwhelming support in the House, the bill was held in House Insurance by Chairman Tom Oliverson. Dr. Oliverson has supported the property and casualty insurance industry, but our team spent the past 18 months working with him on this issue and we felt he would give the bill a fair hearing. At the hearing, a representative from Ford Motor Credit testified that they required in their contracts the use of OEM parts. Powerful testimony later followed up with a letter from multiple lenders stating the importance of this requirement. Despite giving the bill a hearing, the Chairman was then unwilling to call for a vote on the bill, effectively killing the legislation. A win for the big national auto insurance industry and a loss for Texas business owners and consumers. DEALERS’ CHOICE 6
The credit card surcharge bill, HB 3615, would have codified current case law by repealing an unconstitutional statutory provision that said merchants could not pass through the surcharge that credit card companies charge them to the credit card user. In 2018, a federal district court held that this statute violated the First Amendment, and since then some, Texas merchants have been passing through the surcharge to consumers despite the previously mentioned prohibition. Opposition to the legislation came from American Express as the bill passed the Texas House. Upon referral to the Senate, a broad coalition of Texas businesses coordinated efforts to support the legislation. Opposition increased too with the Texas Bankers Association joining American Express in their effort to ensure these charges remained hidden from Texas consumers. The opposition used language gymnastics and halftruths to convince several Senate Republicans that the bill would essentially create a “new fee,” and in the end, these senators chose to believe the opposition over their local businesses and killed the bill. Not only did the bill NOT create a new fee, but it also had important requirements for the merchant to disclose prior to the purchase to ensure that consumers would be aware of the pass-through and be able to make an informed buying decision. I will also mention again that the current law is unconstitutional. A win for the major national credit card companies. At the end of the day, despite strong Republican majorities in both chambers for more than 20 years, there has been a shift in a once reliable Texas Legislature that worked with their local businesses to create a positive business environment in Texas — one that had appropriate regulation, but also one that provided the opportunity for entrepreneurial achievements and protected consumers. The smoke screen of national special interests this past session lobbying our state leaders to favor national interests versus local businesses is not acceptable. Stated differently, Texas auto dealer and consumer legislation should only be measured by one standard, “Is it good for Texas?” Driving TADA’s Legislative Agenda Forward I hope you will call our team to learn more about how specific members of the Texas Legislature truly stood on our issues, including their choices between big, national companies versus Texas businesses and consumers. Members need to be reminded that the Texas miracle usually begins and ends in their local communities. This challenge provides us with an opportunity, but it is not one that any one individual can overcome. We will continue to build our Texas business coalition to work together for Texas businesses and Texans and against major national companies’ special interests. We will have an aggressive interim plan and will be well-prepared for the next session. Finally, my phone is on; my door is open; and I’m willing to travel and meet with any dealer across our great state as TADA continues to work on the state and federal fronts to promote Texas franchised dealers and protect your customers.
TADA Annual Conference and Board Meeting April 16-17, 2023 Four Seasons Hotel in Austin, TX DEALERS’ CHOICE 8
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Illness forced a course change after Sam Pack started classes at Tarleton State University in 1956. But it never diminished his belief in the power of education or his drive to make life better for others. He has given liberally over the years to hundreds of nonprofits and community endeavors, and Tarleton recognized his leadership and giving spirit with an honorary doctorate of humane letters during the Spring 2023 Commencement Ceremonies. “Sam gives tirelessly of his time, selflessly of his energy and generously of his resources,” said University President James Hurley. “His life’s work is an example of the spirit Tarleton Texans embody and a model for all of us to follow.” Pack owns and operates six Five Star dealerships (Pack Automotive Group) in the Dallas-Fort Worth market and co-owns six more in Tulsa. In 2018, he co-founded Triton Automotive Group, a collection of like-minded dealers (16 shareholders, representing 200 dealerships). The Texas Automobile Dealers Association in 2005 recognized him as an Industry Legend — only the second person in the association’s 93-year history so named. He was one of five dealers inducted into Ford’s inaugural Top Volume Dealers Hall of Fame in 2016. His business and community leadership earned him the national 1988 TIME Dealer of the Year tribute, one of the auto industry’s most coveted honors. Only one other Texas dealer has received this award, and none since Pack. “An honorary doctorate is Tarleton’s highest recognition,” said Dr. Diane Stearns, Provost and Executive Vice President for Academic Affairs, “and it is fitting that one goes to Sam Pack. His achievements are exemplary, and his love for all people is inspirational.” Pack supports more than 300 nonprofits, service organizations and community events through Sam Pack Cares, the charitable arm of Pack Automotive. In 2003, he received the Ford Motor Company Salute to Dealers Award, presented by Edsel Ford II, for his commitment to improving communities and the lives of individuals in them. He has given to Tarleton’s food pantry, the President’s Circle and the Dr. James and Kindall Hurley Scholarship Endowment. The Tarleton State University Pack Automotive Group Intern Program provides Texans with learning opportunities that inspire career success. “I am deeply humbled to receive this honorary doctorate degree, and I thank Chancellor John Sharp, the Board of Regents, Tarleton’s faculty and staff, and President Hurley,” Pack said. “When President Hurley shared the news, I was surprised and filled with excitement. Tarleton has always had a special place in my heart. My family and I are proud to support this wonderful university.” A founding member of The Texas A&M University System, Tarleton is breaking records — in enrollment, research, scholarship, athletics, philanthropy and engagement — while transforming the lives of more than 15,000 students in Stephenville, Fort Worth, Waco, Midlothian, A&M RELLIS at Bryan and online. True to Tarleton’s values of excellence, integrity, and respect, academic programs emphasize real-world learning and address regional, state and national needs. SAM PACK RECEIVES HONORARY DOCTORATE from Tarleton State University Sam Pack received an honorary doctorate of humane letters during Tarleton State’s Spring 2023 Commencement Ceremonies. From left to right: Dr. Diane Stearns, Provost and Executive Vice President for Academic Affairs; Dr. Sam Pack; Dr. James Hurley, Tarleton President; and Dr. Diana Ortega-Feerick, Vice President for Student Engagement and Success. 11 DEALERS’ CHOICE
SASQUATCH OFF-ROAD ADVENTURE CLUB In the summer of 2021, the Sasquatch Off-Road Adventure Club (SORAC) was founded by three friends: Neal Slaten, President of Tipton Ford Lincoln; Ronnie Coats, Director of Fixed Operations of Tipton Ford Lincoln; and Ray Mitchum, Commercial & Government Sales Manager of Tipton Ford Lincoln. For years, Ronnie and Ray had been members of a Jeep club but wanted to create a club that was open to all drivers. “We have a lot of friends that drive Fords or other types of vehicles, but they couldn’t participate because it was a Jeep club only,” Ray said. After much discussion, the two got together with Neal and came up with SORAC. This 501(c)3 is named after the Sasquatch package of a Ford Bronco, and its focus is to educate members on the outdoors. As a result of the recent pandemic, there are a lot more people getting outside, and a large number of these people have never gone exploring and camping before. This is where SORAC steps in. From staying on the trail in order to preserve local flora and making sure fires are extinguished to making accommodations for personal waste, there are so many issues that SORAC gives members directives on. The club mascot, Squatchy, sits in the front windows of the Tipton dealership. When members go on trips, they often bring back stickers from their destinations. These stickers are proudly placed on Squatchy as mementos of the many adventures they have had. SORAC is, by design, family-friendly, “It’s not just a bunch of guys, it’s couples, families, and a lot of kids, and that’s the way we like it.” Ronnie said. The trips that are planned aren’t just for off-roading; there is something for everyone, no matter their age. You can often find the SORAC club driving through Hill Country, camping on the river and kayaking, exploring backroads and admiring the wildflowers. They always find unique and quirky places for members to eat at. It’s just who they are. Because of the educational focus of SORAC, this past March, Ronnie and Ray were invited to speak at the Overland Expo® in Salt Lake City, Utah. They presented to government leaders and numerous off-road clubs about the great success they have found. While in Utah, Ronnie and Ray attended the Moab 4x4 Academy and earned their off-road certification, which they plan on putting to good use in the continued education of SORAC members. Continued on page 14 DEALERS’ CHOICE 12
Meet the Team! Neal Slaten President Tipton Ford Lincoln Founding Partner Sasquatch Off Road Adventure Club Ronnie Coats Director of Fixed Operations Tipton Ford Lincoln Vice President Sasquatch Off Road Adventure Club Ray Mitchum Commercial & Government Sales Manager President Sasquatch Off Road Adventure Club Squatchy Mascot Sasquatch Off Road Adventure Club 13 DEALERS’ CHOICE
Because all three founders of SORAC work at Tipton Ford Lincoln, they understand that people buy cars and the cars become a part of their life. “Sometimes, car dealerships get caught up with just selling cars, but really, we sell people transportation for their vacations, fun and family life. It’s how they bond with their family and their friends.” Neal said. As SORAC grows, members are getting to know the great people that work at Tipton Ford Lincoln, and this has led to them selling more cars, putting on lift kits, new tires and so much more. Located just behind Tipton Ford Lincoln in Nacogdoches, TX, is the SORAC Off-Road Test Course. Neal was the driving force behind this course. It gives members the opportunity to use all aspects of their 4WD/AWD vehicles in a controlled environment, including hill climbs, off-camber crossings, culvert crawls, a rock garden and much more. The educational course helps members become comfortable with off-roading obstacles and furthers the educational goals of SORAC. Membership in SORAC is only $35 per year. They typically have 3-4 local trips each year, and one major trip to an adventurous destination which usually lasts about 10 days. Anyone that purchases an AWD/4WD vehicle from Tipton Ford Lincoln receives a complimentary oneyear membership to SORAC. To learn more and join SORAC, please visit www.squatchorac.com. To learn more about Tipton Ford Lincoln, please visit www.tiptonford.net. Continued from page 12 DEALERS’ CHOICE 14
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PAT SCHUCHART 2023 WALTER B. WAINWRIGHT KEY DIRECTOR AWARD RECIPIENT DEALERS’ CHOICE 18
Each year at this meeting, we honor a member of the TADA Board of Directors who has made a significant contribution to the success of TADA. The recognition is the Walter B. Wainwright Key Director Award, named for the revered former leader of the Houston Automobile Dealers Association. This is the only TADA award that is kept secret until the moment it is presented. Our recipient has always been the one that wants to know how everything works and is always the go-to person when something is broken or needs to be fixed. Our recipient brings great enthusiasm into many numerous passions and enjoys fishing on the coast, golfing, hunting and skiing. Our recipient stands ready to travel at the drop of a hat throughout the United States and internationally. Although from a large family with many siblings, our recipient got involved in the automotive industry when asked by their dad to step in and take over managing the dealership. Although never having managed a dealership, the recipient has never been afraid of hard work and taking on a challenge and was ready to step up and learn. It wasn’t easy, and there were many sleepless nights, but the outcomes have been rewarding for his family and the communities served. Always looking for opportunities to expand, the family decided to do so in the early 2000s. Even though the dealerships are located in small rural communities where all your neighbors know you personally, the dealerships have also sold and delivered vehicles all over the U.S. Our recipient’s positive attitude is exemplified in an experience when asked to move from their hometown at age 13: “Now I will have friends in both places — double the friends,” and the comment still rings true today. With such an easygoing way, the recipient makes these relationships easily. But their work extends beyond just the dealership. There is a cattle ranch that consumes as much time as the work resulting from a Real Estate Broker License. But most important is family, and it has been an incredibly important part of our recipient’s life. Marrying young — at age 20 — the relationship is like the Energizer Bunny and keeps “going and going and going.”The couple has been blessed with two adult children — a son and daughter — and one of them has blessed the recipient with a first grandchild and as everybody knows, grandkids are the best. Ladies and Gentlemen … your TADA Key Director for 2023, Pat Schuchart. Introduction by TADA Chair-Elect Bryan Case. 19 DEALERS’ CHOICE
The 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. Tom Durant was named the 2023 TADA Legend on Sunday, April 16 at the Welcome Reception and Chairman’s Dinner during the TADA Annual Conference at the Four Seasons Hotel in Austin. TADA LEGEND TOM DURANT DEALERS’ CHOICE 20
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McCollum High School students show their appreciation for the donation of Hunter Equipment. Community Service CAVENDER AUTO FAMILY — MAKING KINDNESS HAPPEN Cavender Toyota’s Fixed Operations Director, Marshall King, connected with two San Antonio High School instructors of their respective automotive technology programs and coordinated donations of Hunter tire changing machines that had been replaced with newer model machinery. McCollum High School’s Mike Martinez shared pictures of his students showing their appreciation, stating, “Thank you and the Cavender Auto Family for blessing us with the tire changing machine donations. Thanks for partnering with us in the Automotive Education Community.” Lanier High School’s Juan Morales was thrilled when he received the call asking if his program could use two of the machines and is planning on putting them to good use. Both schools have well-established Automotive Technology classes and, over time, have partnered with Cavender Auto Family, bringing students on tours of Cavender Toyota and Audi Dominion dealerships with a goal to encourage students to follow their passion, enhance their skills, and join the industry in various roles in the future. Over 50 students showed up to tour both Cavender Toyota and Audi Dominion service operations! Audi Dominion hosted Lanier High School students and donated an SUV for their shop. Rick Cavender speaks to students from Lanier High School in the Service Area at Audi Dominion. Cavender Toyota hosted Lanier High Schools students and donated a Tundra for educational purposes. 23 DEALERS’ CHOICE
PARK PLACE AND EARTH DAY Since 1970, Earth Day has been an opportunity to educate and inspire Americans about the impact we all have on our environment. On Friday, April 21 and Saturday, April 22, Park Place Dealerships marked the event with an opportunity for Texans to learn about electric vehicles. A 2022 study from Consumer Reports showed that a growing number of consumers are eager to buy an electric vehicle (EV). Nearly half of the 8,027 respondents were unaware of existing federal and state incentives available to purchase an electric vehicle. In this same study, consumers would consider buying an EV for the following reasons: • It costs less to charge an EV than to refuel a gas car. • Lifetime costs are lower. • Maintenance costs are lower. STREET VOLKSWAGEN AWARD In partnership with the Amarillo Chamber of Commerce, the Office of the Governor Small Business Award team produced the Governor’s Small Business Summit at the Amarillo Civic Center on June 1. During the summit, Street Volkswagen received the Governor’s Outstanding Community Partner Award based on nominations from local community partners and individuals in the Amarillo area. Mercedes-Benz plans to be battery-electric by 2030, and the EQ lineup recently saw the introduction of the EQE. Park Place Dealerships invited their community to experience the luxury and performance of the Mercedes-Benz EQ with test drives at six different DFW locations. DEALERS’ CHOICE 24
EL PASO AUTOMOBILE DEALERS REWARD $35,000 IN SCHOLARSHIPS TO LOCAL STUDENTS The El Paso New Car Dealers Association (EPNCDA) and its board members are pleased to announce another record year for the Scholarship Program, giving away $35,000 for the 2023-2024 academic year. The recipients were recognized on Wednesday, June 14, at the EPNCDA Annual Luncheon. The 21 students each received a $1,000-$5,000 scholarship. The EPNCDA Scholarship Fund was established in 2015, thanks to the success of the EPNCDA’s Annual Golf Tournament and Skeet & Trap Shoot. The Association has remained dedicated to continued education for students in the El Paso community and has already awarded over $177,000 to 154 students, all local dealership employees, or their dependents. “We are proud to support the families of dealership employees throughout El Paso,” said Alfred Alvarado, General Manager of Casa Ford Lincoln and President of EPNCDA. “Giving our children a college education is every parent’s dream, so we hope these scholarships help make that dream a reality for our employees.” The car business continues to evolve each year with new challenges and innovations, from inventory availability to the electrification of transportation. With an ever-changing industry, dealers rely on their employees to grow with the business to continue to bring quality service to local customers. “The dealers consider their employees the backbone of their business, and supporting them is a top priority,” says EPNCDA Executive Director Lexi Buquet. “We hope these scholarships relieve some of the financial burdens to support a higher education for their children.” Updates about the EPNCDA Scholarship Program and upcoming events can be found at www.facebook.com/epncda. $5,000 Scholarship Melody Geiger The University of Texas at Austin *Hyundai of El Paso $3,000 Scholarship Alondra Ramirez El Paso Community College *Hoy Family Auto Stephanie Flores St. Mary’s University *Hoy Family Auto $2,000 Scholarship Zoraya Yanar New Mexico State University *Casa Ford Lincoln Luis-Carlos Jurado University of Texas at El Paso *Porsche El Paso $1,500 Scholarship Katia Gutierrez University of Texas at El Paso *Casa Kia Isabel Jurado University of Texas at El Paso *Porsche El Paso Santiago Jurado University of Texas at El Paso *Porsche El Paso Mia Rocha University of Texas at El Paso *Charlie Clark Nissan Alan Alvarado The New School *Casa Ford Blanca Ayala University of Texas at Austin *Rudolph Honda Kiara Rodriguez Zazueta University of Texas at El Paso *Giles Volvo at El Paso Jorge Salazar El Paso Community College *Hoy Family Auto $1,000 Scholarship Valeria Martinez University of Texas at El Paso *Sunland Park CJDR Paloma Palmer Texas A&M University *Casa Ford Warren Palmer Texas A&M University *Casa Ford Faith Ruiz El Paso Community College *Rudolph Honda Obed Castaneda Western Technical College *Mission Chevrolet Lilian Martinez University of Texas at El Paso *Casa Ford Andres Torres Western Technical College *Mission Chevrolet Yalet Yanar New Mexico State University *Casa Ford *Dealer member associated with the recipient. 2023-2024 El Paso New Car Dealers Association Scholarship Recipients 25 DEALERS’ CHOICE
MEANINGFUL RESEARCH — APRIL ANCIRA, VICE PRESIDENT, ANCIRA AUTO GROUP HONORED “Be the light that cures cancer.” Over one million people have been inspired by these powerful words to join The Leukemia & Lymphoma Society (LLS) in its fight against blood cancers. Since the first event in 1999, Light the Night has become LLS’s signature annual event. It draws supporters from across North America who participate in an evening of walks to honor loved ones affected by blood cancers and to raise money for lifesaving research and crucial patient resources. Light the Night also presents an opportunity for corporate America to join the cause. Many big-name companies form national teams, and corporate executives compete in Light the Night’s Executive Challenge. These industry leaders strive to raise $10,000 or more for the blood cancer community. April Ancira, Vice President of Ancira Auto Group and past TADA Chairman of the Board, was recently spotlighted by Forbes Magazine as one of the top five Executive Challenge alumni who raised the most money in 2022. When asked what motivates her to support LLS, she said, “Contributing critical funds for research — in honor of people in my life who’ve been affected by blood cancer — is the Executive Challenge’s real reward. By supporting a specific area of research that’s meaningful and connected to those we’ve lost, corporate leaders can lead by example and move the needle forward for patients and families.” CAUGHT YOU LOOKIN’! CONTACT US TODAY! 801.676.9722 sales@thenewslinkgroup.com Your Customers Are Too. Advertising Space Available. QR Code: website /#ad-space DEALERS’ CHOICE 26
Bennie Walter Bock, II Seguin Motor Company May 17,1942-June 29, 2022 Frank Boggus Boggus Motors TADA Legend Aug. 16, 1928-Feb. 4, 2023 Bill Deffebach United Auto Group Feb. 2, 1931-April 11, 2022 Larry Hall Lawrence Hall Chevrolet Buick GMC Cadillac Oct. 29, 1952-July 25, 2022 In Memoriam Marlin Ray Jones, Jr. Ray Jones Chevrolet Aug. 6, 1942-Dec. 11, 2022 Leo “Lee” Maas Classic BMW Sept. 30, 1930-March 7, 2023 Billy Joe “Red” McCombs Red McCombs Automotive TADA Legend Oct. 19, 1927-Feb. 19, 2023 Ed Moseley Ed Moseley Ford Lincoln Feb. 11, 1933-Aug. 19, 2022 Betty Joyce Kendrick Perry Mike Perry Chrysler Dodge Jeep June 19, 1939-Jan. 24, 2023 Ollen Bruton Smith Sonic/Speedway Motorsports March 2, 1927-June 22, 2022 Stephen James Smith Smith Ford Dec. 30, 1942-Sept. 17,2022 Dorothy Stowers Country Chevrolet Buick GMC Nov. 9, 1927-July 20, 2022 Richard “Dick” Stowers Country Chevrolet Buick GMC March 7, 1926-April 15, 2022 John Jay Toomey, Jr. Alamo Toyota & Tejas Toyota Oct. 25, 1951-March 1, 2023 Minda Lee Welch San Antonio Auto Dealers Oct. 13, 1940-Dec. 20, 2022 27 DEALERS’ CHOICE
Texas Dealer Academy The Texas Dealer Academy held their Summer Meeting at the JW Marriott San Antonio Hill Country on June 11-13. It was fun for the whole family! For more information on the Texas Dealer Academy, contact Kathy Sims at ksims@tada.org FAMILY FUN IN THE SUN ...IT’S A WRAP! DEALERS’ CHOICE 28
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!
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CYBERSECURITY AND THE AUTO INDUSTRY Costly Attacks on the Rise By One Step Secure IT Team In an interconnected world driven by technology, the battle against cyberthreats is intensifying. With our increasing reliance on technology, businesses must adopt robust cybersecurity practices to protect sensitive data and ensure the continuity of their operations. The Ransomware Saga Ransomware attacks, in particular, have emerged as a significant threat to the automotive industry. In the pre-pandemic era of the first quarter of 2019, the average ransomware payment was a mere $6,000. As the COVID-19 pandemic took hold and necessitated a shift to remote work across the United States, cybercriminals swiftly exploited the heightened security vulnerabilities resulting from businesses’ inadequate cybersecurity protocols. By 2020, the demanded ransom payment skyrocketed to an average of $115,000. This situation was like a perfect storm of technological mishaps, including employees connecting to company servers through unsecured Wi-Fi connections, the hasty introduction of new applications without appropriate safeguards, and the limited implementation of multifactor authentication measures, among others. It was a recipe for disaster created by a mix of clueless employees, hasty IT decisions and a sprinkle of security negligence. It was like watching a train wreck in slow motion, except this time, the passengers were the company’s sensitive data and reputation. In 2021, the average demanded ransom rose even further to $170,404, and in 2022, the average demanded ransom was up to $228,000. It’s important to keep in mind that the financial impacts for businesses stretch far beyond just the ransomware payment itself. In addition to the cost of ransom, the cost of downtime, employee pay, remediation and other expenses could add up to about $1 million dollars. It’s no longer a world where auto dealerships can turn a blind eye to these threats; it’s just too costly to ignore. 31 DEALERS’ CHOICE
The average cost of a ransomware attack is only expected to increase in the coming years — painting a bleak financial picture for auto dealerships. Unfortunately, the likelihood of a ransomware attack isn’t slim. According to AAG, a staggering 64% of businesses have fallen victim to at least one ransomware attack, with a concerning 79% opting to pay the ransom. Even more alarming is the fact that among those previously attacked, a staggering 88% stated they would repeat the payment if targeted again. However, it’s not all doom and gloom. If you have been fortunate enough to avoid a cyberattack thus far, you have the ability to protect your business and build your defenses. Even if you have already experienced a cyberattack and are still in business, you’re in a better position than those who fell victim. You have a golden opportunity to enhance your cybersecurity strategy. In the past, antivirus software and firewalls provided a certain level of protection by detecting and blocking known malware and unauthorized access attempts. However, the evolving nature of cyberthreats demands a proactive approach beyond traditional defense mechanisms. Here are a few cybersecurity practices for businesses to adopt in a world of increasing cyberthreats. Cybersecurity Strategies for Auto Dealerships Implement Endpoint Protection and Response (EDR): Auto dealerships must fortify their remote access solutions and deploy comprehensive endpoint protection systems. Implementing robust endpoint protection involves deploying comprehensive security solutions on individual devices such as computers, laptops and mobile devices to safeguard against a wide range of cyberthreats, including malware, phishing and unauthorized access attempts. Administer Regular Employee Training: Employee awareness plays a crucial role in preventing cyberattacks. By educating staff members about the risks associated with phishing emails, social engineering tactics and the importance of strong passwords, dealerships can significantly reduce the likelihood of successful attacks. Regularly Update and Patch Software: Promptly applying software updates and patches is vital for closing security vulnerabilities. Auto dealerships should have a robust patch management process in place to minimize the risk of exploitation by cybercriminals. Conduct Network and Security Scans: By conducting regular network and security scans, businesses can proactively identify vulnerabilities, allowing them to address and fortify their defenses before cybercriminals have a chance to exploit them, ensuring enhanced protection for their sensitive data and operations. Align Network with the Zero Trust Security Model: Under a Zero Trust model, every access request is fully authenticated, authorized, and encrypted before granting access, regardless of where the request originates from or what resource it accesses. Many businesses still operate under the assumption that everything within their internal network can be trusted. The High Stakes The consequences of cyberattacks on the automotive industry are profound. If left unaddressed, it is estimated that the industry stands to lose a staggering $505 billion by 2024. The financial impact, reputational damage and potential legal consequences underscore the urgent need for proactive cybersecurity measures. In a world increasingly dependent on technology, businesses must prioritize cybersecurity to protect sensitive data and maintain operational resilience. By implementing strong access controls, keeping software and systems up to date, educating employees, regularly backing up data, deploying robust endpoint protection, conducting security audits and fostering a culture of vigilance, businesses can fortify their defenses against cyberthreats. Cybersecurity is a continuous journey that requires ongoing attention and adaptation to stay ahead of evolving threats. By adopting these essential cybersecurity practices, businesses can navigate the complex landscape of cyberthreats and safeguard their valuable assets. To learn more about how to secure your dealership from cyberattacks, the IT and cybersecurity experts at One Step Secure IT can help you develop a strategy and take steps to strengthen your security and protect business assets — visit www.onestepsecureit.com or contact us at hello@onestepsecureit.com or (623) 227-1997. DEALERS’ CHOICE 32
By becoming a member of the Lone Star Auto Dealers Safety Group, your company leverages the group purchasing power that can allow you to earn two dividends each year, while saving about 12% on workers’ comp premium. Ask your agent today or contact Brad Wicker at brad@wickerparker.com to see if your company qualifies. TEXASMUTUAL.COM/TXMSAFETYGROUPS LONE STAR AUTO DEALERS SAFETY GROUP BETTER TOGETHER Dividends are based on performance and are not guaranteed. PREMIUM DISCOUNT TWO DIVIDEND OPPORTUNITIES VALUABLE SAFETY RESOURCES
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 DEALERS’ CHOICE 34
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 35 DEALERS’ CHOICE
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 DEALERS’ CHOICE 36
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”
FISCAL NOTES MAY 2023 | 11 State Revenue Watch This table presents data on net state revenue collections by source. It includes most recent monthly collections, year-to-date (YTD) totals for the current fiscal year and a comparison of current YTD totals with those in the equivalent period of the previous fiscal year. These numbers were current at press time. For the most current data as well as downloadable files, visit comptroller.texas.gov/ transparency. Note: Texas’ fiscal year begins on Sept. 1 and ends on Aug. 31. 1. Includes public utility gross receipts assessment, gas, electric and water utility tax and gas utility pipeline tax. 2. Includes taxes not separately listed, such as taxes on oil well services, coinoperated amusement machines, cement and combative sports admissions as well as refunds to employers of certain welfare recipients. 3. Includes various health-related service fees and rebates that were previously in “license, fees, fines and penalties” or in other non-tax revenue categories. 4. Gross sales less retailer commission and the smaller prizes paid by retailers. Notes: Totals may not add due to rounding. Excludes local funds and deposits by certain semi-independent agencies. Includes certain state revenues that are deposited in the State Treasury but not appropriated. NET STATE REVENUE – ALL FUNDS, EXCLUDING TRUST Monthly and Year-to-Date Collections: Percent Change from Previous Year (IN THOUSANDS) TAX COLLECTIONS BY MAJOR TAX APRIL 2023 YEAR TO DATE: Total YEAR TO DATE: Change from Previous Year SALES TAX $4,087,704 $30,846,608 10.34% Percent Change from April 2022 6.71% MOTOR VEHICLE SALES AND RENTAL TAXES $506,800 $4,341,554 8.40% Percent Change from April 2022 -3.48% MOTOR FUEL TAXES $318,680 $2,509,440 0.52% Percent Change from April 2022 -4.87% FRANCHISE TAX $820,525 $1,136,343 18.47% Percent Change from April 2022 -0.15% OIL PRODUCTION TAX $452,534 $4,040,474 6.77% Percent Change from April 2022 -32.01% INSURANCE TAXES $16,119 $2,426,051 34.10% Percent Change from April 2022 33.65% CIGARETTE AND TOBACCO TAXES $91,130 $758,378 -3.50% Percent Change from April 2022 -10.03% NATURAL GAS PRODUCTION TAX $202,929 $2,766,205 8.05% Percent Change from April 2022 -40.16% ALCOHOLIC BEVERAGES TAXES $163,130 $1,162,518 11.06% Percent Change from April 2022 7.46% HOTEL OCCUPANCY TAX $83,487 $494,111 17.24% Percent Change from April 2022 9.15% UTILITY TAXES1 $69,003 $369,819 19.98% Percent Change from April 2022 8.52% OTHER TAXES2 $38,989 $194,933 52.18% Percent Change from April 2022 76.56% TOTAL TAX COLLECTIONS $6,851,029 $51,046,433 10.34% Percent Change from April 2022 -1.35% REVENUE BY SOURCE APRIL 2023 YEAR TO DATE: Total YEAR TO DATE: Change from Previous Year TOTAL TAX COLLECTIONS $6,851,029 $51,046,433 10.34% Percent Change from April 2022 -1.35% FEDERAL INCOME $5,123,687 $47,513,548 5.12% Percent Change from April 2022 -2.01% LICENSES, FEES, FINES AND PENALTIES $431,488 $4,371,517 1.21% Percent Change from April 2022 -6.75% STATE HEALTH SERVICE FEES AND REBATES3 $468,039 $7,625,742 46.18% Percent Change from April 2022 -17.75% NET LOTTERY PROCEEDS4 $270,840 $2,204,030 12.67% Percent Change from April 2022 22.70% LAND INCOME $238,182 $2,731,010 7.81% Percent Change from April 2022 -31.49% INTEREST AND INVESTMENT INCOME $261,902 $2,374,177 73.78% Percent Change from April 2022 82.24% SETTLEMENTS OF CLAIMS $84,856 $557,203 -11.22% Percent Change from April 2022 -6.71% ESCHEATED ESTATES $15,734 $119,472 -3.79% Percent Change from April 2022 -5.43% SALES OF GOODS AND SERVICES $23,067 $194,617 -4.05% Percent Change from April 2022 10.93% OTHER REVENUE $196,970 $1,121,156 -22.22% Percent Change from April 2022 36.97% TOTAL NET REVENUE $13,965,794 $119,858,905 9.71% Percent Change from April 2022 -1.57% State Revenue Watch *Courtesy of Glenn Hegar, Texas Comptroller of Public Accounts DEALERS’ CHOICE 38
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