CATA Members Gather for Golf Outing and Annual Meeting 2025-2026 ISSUE 4
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8 6 ©2026 The Chicago Automobile Trade Association (CATA) | MBR Connect™. All rights reserved. CATA Up to Speed is published four times per year 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 circumstances. The statements and opinions expressed in this publication are those of the individual authors and do not necessarily represent the views of CATA, 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. CATA Up to Speed is a collective work, and as such, some articles are submitted by authors who are independent of CATA. While a first-print policy is encouraged, 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 (801) 676-9722. CONTENTS 6 Looking Back on the Past Year A Letter from Ryan Kelly, 2025‑2026 CATA Chairman 8 CATA Elects Three New Directors and Re-Elects Existing Director to Its Board 10 Chicago Auto Show: Behind the Wheel Expanded Test-Drive Event Debuts This Fall 11 CATA Continues Legislative Advocacy for Dealer Members 12 CATA Members Gather for Golf Outing and Annual Meeting 14 CATA Honors Inaugural Drive for Excellence Award Recipients 16 Drive for the Troops Marks Another Successful July of Supporting the USO 18 Catalytic Converter Theft Is Here To Stay By Don Jacobs, President and Founder, Trydon 20 How Pricing Visibility Can Drive Fixed Ops Profitability By Dynatron Software 22 The Art of Profit Hunting in Automotive Deals Uncovering Hidden Value to Maximize Profit Potential By Jennifer Rafael, Executive Vice President & Partner, DSMA CATA UP TO SPEED 4
Dear Members, As my term as 2025-2026 CATA chairman comes to an end, and I transition to chairman of the 2027 Chicago Auto Show, I would like to reflect on the many challenges we faced and the many achievements we celebrated during this past year. The CATA Standing Committees are the engines that drive the CATA, so I will begin there. The Government Relations and Lobbying Committee, chaired by Emir Abinion, worked vigorously in concert with IADA to advance our legislative agenda. In addition to making almost $200,000 in contributions to state and local legislators and working a phone bank to encourage our dealers to give permission to NADA PAC to solicit contributions, the committee attended numerous events, lunches, golf outings and fundraisers, even hosting a cocktail reception for Illinois Secretary of State Alexi Giannoulias in our headquarters. CATA representatives traveled to Washington in September and to Springfield in May to meet key federal and state legislators, and hosted a dinner in Springfield for many of them. Unfortunately, our two major Illinois legislative proposals this session, an amendment to the Illinois Motor Vehicle Franchise Act restricting direct sales by legacy manufacturers and an amendment to increase the cap on documentary fees by $100, failed to pass. However, we feel this is a temporary setback, and the CATA is committed to advocating for these two measures in forthcoming legislative sessions. The CATA board is also heavily invested in the challenge, as the majority of Volkswagen dealers in the state are challenging Volkswagen for surcharging dealers for lawful warranty reimbursement. The CATA is working with IADA on this matter and has committed to paying up to $150,000 for legal fees. The Auto Show Committee, chaired by Jason Roberts, again put on a truly spectacular Chicago Auto Show. Beginning with our Chicago Drives Electric preview event in October, which achieved a media reach of 462.5 million, the 2026 Chicago Auto Show welcomed 1,200 attendees on Media Preview Day, followed by a First Look for Charity Gala that raised over $2 million for participating charities. The Auto Show itself was attended by over 212,000 visitors. ABC, WGN and CBS each produced TV specials from the show floor, and national coverage was provided on Fox Business Network. All in all, the Chicago Auto Show remains the premier consumer show in the country and a media and public-relations home run for manufacturers and CATA dealers alike. The Civic and Dealer Relations and First Look for Charity Committee, chaired by Jerry Haggerty, not only worked to put on the fabulous First Look for Charity Gala, with a 2026 Chevrolet Equinox and a 2026 Toyota Land Cruiser given away to fortunate winners, but also coordinated CATA support for the Drive for the Troops fundraising that took place in July for the benefit of the USO, raising over $71,000 each of the last two years. Additionally, the committee shepherded the Chicagoland Dealers Care program, which matches dealers’ contributions to their favored local charities. The Employee Relations Committee, chaired by Dan Marquardt, helped guide CATA dealers through negotiations with Local 701, reaching a four-year extension of the CBA without a strike. The committee also worked with SESCO to provide employment advice to our dealer members. The Drive Chicago Committee, chaired by Jared Wickstrom, continually updates and refines the DriveChicago.com website to be the definitive website for vehicle purchases in the Chicagoland area. The Member Benefits Committee, chaired by John Crane, seeks to find vendors who can provide added value to our dealer members. Each of these potential candidates is carefully researched and vetted by the committee before being recommended to our dealers. The Finance, Pension and Audit Committee, chaired by Ryan Kelly, continually monitors CATA revenue Looking Back on the Past Year A Letter from Ryan Kelly, 2025‑2026 CATA Chairman CATA UP TO SPEED 6
and expenses, ensuring that all potential revenue streams are examined, expenses incurred are reasonable, and there is no waste. The Media Strategy Committee, chaired by Fred Marks, analyzes and develops all the potential media streams for events like Drive for the Troops, Chicago Drives Electric, the Chicago Auto Show and the First Look for Charity Gala, while directing over $445,000 in paid advertising funding combined with over $1.6 million in bonus weight provided by our media partners. Finally, the Nominating Committee, chaired by Ryan Kelly, is charged with finding exceptional candidates for the CATA Board of Directors. Again this year, the committee proposed five candidates with high expertise and integrity to run for four vacancies on the CATA board. I want to express my gratitude to the CATA chairpersons who served before me and to my 11 fellow CATA directors, especially retiring Directors Dan Heller, Dan Marquardt and Kelly Webb Roberts, all of whom have been major contributors to the CATA. As most of you are aware, Dan Marquardt was the principal promoter of the warranty language that has proved beneficial to us all, and the Board of Directors has unanimously agreed to appoint Dan as an honorary CATA director and legislative affairs liaison, working hand in hand with the Government Relations and Lobbying Committee chairman. Also, I want to thank the entire CATA staff, ably led by President Jen Morand, for their enthusiasm, innovation, diligence, expertise and tireless efforts in everything they do. I am thrilled for our executive vice president, Chris Konecki, who will be transitioning to the role of general manager of McCormick Place. We look forward to interacting with Chris for years to come and thank him for his outstanding service to the CATA. Also, thanks to Dennis O’Keefe, our general counsel, whose experience, wealth of knowledge and sage advice are invaluable; and to Scott Marquardt and Chip Humes, our lobbyists, for their staunch efforts in advancing our legislative agenda. I welcome new CATA Directors Tom Conlin, Jeff Hopkins and Chris Weck, and I congratulate my friend and fellow Director Steve Phillipos on his election as 2026-2027 CATA chairman. Steve will bring exceptional expertise, vision and good judgment to his role in leading this wonderful organization. For a summary of the actions taken by the CATA Board of Directors during the 2025-2026 term, visit CATA.info. Thank you again for the opportunity to serve as your chairman. Sincerely, Ryan Kelly 2025-2026 CATA Chairman CATA UP TO SPEED 7
CATA Elects Three New Directors and Re-Elects Existing Director to Its Board Newly elected CATA Board members (left to right): Tom Conlin, Jeff Hopkins and Chris Weck The Chicago Automobile Trade Association (CATA) has elected three new directors and re-elected one existing director to its board of directors. Tom Conlin (Tirapelli Ford, Shorewood), Jeff Hopkins (Hopkins Ford, Elgin), and Chris Weck (Elgin Kia and Volkswagen of Palatine) will join the board, while Steve Phillipos (Chevrolet of Homewood; Ford of Homewood) begins his final three-year term as a CATA director. Conlin, Hopkins and Weck bring extensive automotive industry experience and a strong commitment to their dealerships and communities. The newly elected directors will serve alongside the CATA board in supporting the association’s mission of advancing the Chicago region’s automotive industry and new car dealers through advocacy, events, education and community. Conlin brings 36 years of automotive industry experience, following his father into the business and advancing from service technician to dealer principal. He spent five years at Napleton Lincoln Mercury and 17 years at Gjovik Ford, serving as fixed operations director and general manager. For the past seven years, he has been executive manager and dealer principal at Ron Tirapelli Ford. Conlin has experience in fixed and variable operations, has served on Ford’s Parts and Service Manager Advisory Committee, and has participated in more than 20 manufacturer pilot programs. Hopkins brings 30 years of automotive industry experience, having worked in nearly every dealership role throughout his career, including parts driver, service advisor, salesperson, finance manager, general manager and dealer principal. After graduating from Indiana University, Hopkins spent a year in hardware and software sales before returning to the family automotive business. With both his family and his wife’s family involved in the industry, Hopkins says the automotive business was not something he felt he had to pursue, but something he wanted to do. Weck has been in the automotive industry full-time since 2011, advancing through a variety of sales, finance and management roles. He currently serves as president and general manager of Elgin Kia and Volkswagen of Palatine, overseeing the two-store operation. Following in the footsteps of his father, who spent more than four decades in the automotive industry, Weck emphasizes hands-on involvement, leading by example and fostering consistent growth and progress within his dealerships. “I am excited to welcome Tom, Jeff and Chris to the CATA Board of Directors, and to congratulate Steve Phillipos on his re-election,” said Jennifer Morand, president of the CATA. “Tom, Jeff and Chris each bring a wealth of knowledge, leadership and a passion for the automotive industry, while Steve’s continued service and experience will remain a tremendous asset to our association. We look forward to their contributions as we continue to serve our members and strengthen the CATA.” The CATA also elected a new executive board: Steve Phillipos (Chevrolet of Homewood; Ford of Homewood) is the 2026-2027 CATA chairman; Jerry Haggerty (Haggerty Buick GMC; Haggerty Ford; Jerry Haggerty Chevrolet) is vice chairman; and Emir Abinion (Fox Valley GMC; Fox Valley Volkswagen; Fox Valley Volkswagen of Crystal Lake) is treasurer/secretary. Former CATA Chairman Ryan Kelly (Kelly Nissan) becomes the 2027 Chicago Auto Show chairman. Election results were announced July 21 at the association’s annual meeting and golf outing at Cog Hill Golf & Country Club in Lemont. Directors can serve up to three terms. Voting was open to all CATA dealer members whose association membership is in good standing. In addition to the four directors elected this month and the executive committee, the CATA board includes John Crane, Fred Marks, Dan Marquardt, Jason Roberts, Tom Wehmeier and Jared Wickstrom. CATA UP TO SPEED 8
Anticipate every turn In an industry that’s always evolving, your dealership can rely on our Dealer Financial Services team’s 90 years of experience to see what’s around the corner, forward-thinking insights to prepare you, and technology to keep you ahead of the curve. What would you like the power to do?® Diana Zamudio, diana.zamudio@bofa.com business.bofa.com/dealer ©2024 Bank of America Corporation. All rights reserved. DFS-699-AD 6942528 Investment products offered by Investment Banking Affiliates: Are Not FDIC Insured Are Not Bank Guaranteed May Lose Value “Bank of America” and “BofA Securities” are the marketing names used by the Global Banking and Global Markets divisions of Bank of America Corporation. Lending, derivatives, other commercial banking activities, and trading in certain financial instruments are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Trading in securities and financial instruments, and strategic advisory, and other investment banking activities, are performed globally by investment banking affiliates of Bank of America Corporation (“Investment Banking Affiliates”), including, in the United States, BofA Securities, Inc., which is a registered broker-dealer and Member of SIPC, and, in other jurisdictions, by locally registered entities. BofA Securities, Inc. is a registered futures commission merchant with the CFTC and a member of the NFA. Anticipate every turn In an industry that’s always evolving, your dealership can rely on our Dealer Financial Services team’s 90 years of experience to see what’s around the corner, forward-thinking insights to prepare you, and technology to keep you ahead of the curve. What would you like the power to do?® Diana Zamudio, diana.zamudio@bofa.com business.bofa.com/dealer ©2024 Bank of America Corporation. All rights reserved. DFS-699-AD 6942528 Investment products offered by Investment Banking Affiliates: Are Not FDIC Insured Are Not Bank Guaranteed May Lose Value “Bank of America” and “BofA Securities” are the marketing names used by the Global Banking and Global Markets divisions of Bank of America Corporation. Lending, derivatives, other commercial banking activities, and trading in certain financial instruments are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Trading in securities and financial instruments, and strategic advisory, and other investment banking activities, are performed globally by investment banking affiliates of Bank of America Corporation (“Investment Banking Affiliates”), including, in the United States, BofA Securities, Inc., which is a registered broker-dealer and Member of SIPC, and, in other jurisdictions, by locally registered entities. BofA Securities, Inc. is a registered futures commission merchant with the CFTC and a member of the NFA.
Chicago Auto Show: Behind the Wheel Expanded Test-Drive Event Debuts This Fall The CATA is expanding its popular fall consumer test-drive event with a new name, new branding and an even broader vehicle lineup. Formerly known as Chicago Drives Electric, the event has evolved into Chicago Auto Show: Behind the Wheel, reflecting an expanded focus that includes all powertrains. Taking place Oct. 1-4 in Oakbrook Terrace, the immersive test-drive experience will give consumers the opportunity to get behind the wheel of the latest cars, trucks and SUVs from participating manufacturers. In addition to all-electric vehicles, attendees will be able to experience hybrid, plug-in hybrid and traditional gas-powered models, offering a more comprehensive look at the vehicles available in today’s marketplace. Following strong manufacturer participation in last year’s event, another impressive lineup of vehicles is expected this fall. By broadening the event beyond EVs, Chicago Auto Show: Behind the Wheel will introduce more consumers to the latest vehicle technologies while creating valuable opportunities for manufacturers to connect with in-market shoppers. CATA dealer members are encouraged to join us throughout the weekend to experience the event firsthand. For event details and updates, scan the QR code or visit chicagoautoshow.com/behindthewheel. OCTOBER 1-4 • OAKBROOK TERRACE CATA UP TO SPEED 10
CATA Continues Legislative Advocacy for Dealer Members Advocating on behalf of Illinois franchised new-car dealers remained a top priority for the Chicago Automobile Trade Association throughout the 2026 spring legislative session. Working alongside the Illinois Automobile Dealers Association (IADA), the CATA focused its efforts on strengthening Illinois’ Motor Vehicle Franchise Act and increasing the state’s documentary fee cap. One of CATA’s primary goals was advancing legislation to prevent established manufacturers from creating new brands to sell vehicles directly to consumers while bypassing their franchised dealer networks. Although the proposed legislation was not called for a vote before the spring session concluded, the CATA will continue working with the IADA to pursue franchise protections in future legislative sessions. The CATA also continued to advocate for an increase in Illinois’ documentary fee cap, emphasizing that the state’s current cap remains lower than in many neighboring states and does not reflect the growing administrative and compliance costs dealerships face. Advocacy efforts also extended to Washington, D.C., where CATA representatives met with federal lawmakers during the National Automobile Dealers Association (NADA) Legislative Conference to discuss issues impacting franchised dealers nationwide. The association also exceeded its goal for NADA PAC contributions, helping support lawmakers who champion policies that protect the dealer franchise system. The CATA remains committed to advocating for policies that strengthen Illinois dealerships and protect the franchise system on behalf of its members. CATA UP TO SPEED 11
CATA Members Gather for Golf Outing and Annual Meeting The 2026 CATA Annual Meeting & Member Golf Outing brought together dealers, allied members and industry partners on Tuesday, July 21, at Cog Hill Golf & Country Club for a full day of networking, golf and celebration. Under sunny skies, attendees teed off at noon with a shotgun start across two courses before gathering in the evening for happy hour, dinner and the Annual Meeting. The new event format allowed golfers and dinner-only attendees alike to reconnect with colleagues while celebrating another successful year for the association. During the Annual Meeting, CATA President Jennifer Morand highlighted the association’s accomplishments over the past year and reinforced the importance of a strong, unified dealer network. She shared updates on the CATA’s new strategic plan, the launch of the membership engagement campaign, the continued success of Drive for the Troops and the expansion of Chicago Drives Electric into the newly branded Chicago Auto Show: Behind the Wheel. Morand also recognized another successful Chicago Auto Show, which welcomed nearly 212,000 attendees, and celebrated that more than $2 million was raised through the 2026 First Look for Charity gala. CATA Chairman Ryan Kelly emphasized the value of bringing members together through events like the annual outing and announced the results of the Board of Directors election. Steve Phillipos was re-elected to another term, while Tom Conlin, Jeff Hopkins and Chris Weck were welcomed as new members of the Board of Directors. Kelly also recognized outgoing Board member Kelly Webb Roberts for her decade of dedicated service to the association and thanked outgoing Chicago Auto Show Chairman Jason Roberts for his exceptional leadership. The evening program also featured the inaugural CATA Drive for Excellence Awards, recognizing outstanding dealership professionals for their leadership, innovation and contributions to the retail automotive industry. Attendees also enjoyed an engaging keynote presentation from Chicago Bears Hall of Famer Dan Hampton, who shared stories from his football career and insights on leadership, teamwork and perseverance. Following a day of friendly competition on the course, golfers were recognized for their performances in several contests and scramble competitions. Thank you to everyone who attended and helped make this year’s CATA Annual Meeting & Member Golf Outing a memorable success. We look forward to seeing everyone again next year for another day of golf, networking and celebrating the strength of the Chicago Automobile Trade Association. A special thank you to our sponsors for their generous support in making this year’s golf outing possible. CATA UP TO SPEED 12
GOLF CONTEST WINNERS Longest Drive Anthony Maite and Shaun Fox Longest Putt Andy Francis and Dan Busen Closest to the Pin Jim Wignall and Eddy Jasim Beat the Pro 10 golfers beat the pro across both courses, raising more than $2,100 for the USO. Scramble Winners Course 1: Cody Boarman, Clayton Bonnell, Erik Schmit and Jim Wignall The Ravines Course: Austin Lasusa, Ken Lavigne, Ken Lehmann and Chet Palumbo Thank you to everyone who attended and helped make this year’s CATA Annual Meeting & Member Golf Outing a memorable success. CATA UP TO SPEED 13
CATA Honors Inaugural Drive for Excellence Award Recipients The Chicago Automobile Trade Association (CATA) recognized five outstanding individuals and dealerships during the inaugural Drive for Excellence Awards, presented July 21, as part of the CATA Annual Meeting & Member Golf Outing at Cog Hill Golf & Country Club. The new awards program celebrates exceptional leadership, innovation, customer service and community engagement among CATA member dealerships throughout Chicagoland. The recipients were selected from an impressive field of nominations that showcased the talent, dedication and impact of professionals across the association’s dealer network. “The Drive for Excellence Awards recognize the people and organizations who represent the very best of our industry,” said CATA President Jennifer Morand. “Whether serving customers, supporting their communities, embracing innovation or leading the next generation of dealership excellence, these recipients exemplify the values that strengthen our association and move the industry forward.” Pictured (left to right): 2026 CATA Drive for Excellence Award recipients Olivia Alfirevich (Apple Chevrolet), Kelly Webb Roberts (Webb Auto Group), Jackie Webb Hibner (Webb Auto Group) and Kevin Keefe (Brilliance Subaru). Also honored this year (not pictured) were Damian Gabrus (Hawk Volkswagen of Joliet) and James Carver (Romeoville Toyota). CATA UP TO SPEED 14
2026 Drive for Excellence Award Recipients OUTSTANDING SALES PERFORMER AWARD Damian Gabrus, Hawk Volkswagen of Joliet The Outstanding Sales Performer Award recognizes a dealership sales professional who consistently delivers exceptional results while providing an outstanding customer experience. Gabrus was honored for helping lead Hawk Volkswagen of Joliet to become the No. 1 Volkswagen dealership in Illinois for sales over the past decade, consistently ranking among the state’s top Volkswagen sales professionals and fostering a customer-focused sales culture. Finalists: Kaine Garcia (Gerald Ford), Jorge Guzman (Webb Chevrolet Oak Lawn), Susan Jimenez (Community Honda of Orland Park) and Keith Tennyson (Fields Lexus Glenview) NEXT-GEN AWARD Olivia Alfirevich, Apple Chevrolet Recognizing an emerging leader making a significant impact early in their career, the Next-Gen Award was presented to Alfirevich for transforming Apple Chevrolet’s human resources, marketing and digital engagement efforts through innovative technologies and forward-thinking leadership. She was also recognized for modernizing dealership operations, integrating AI across multiple departments and applying insights gained through NADA’s Next Gen program. Finalists: Andreas Korallus (Volvo of Lisle), Ray Scarpelli III (Ray Chevrolet) and Salina Villarreal (Fields Lexus Glenview) PARTS AND SERVICE SUPERSTAR AWARD James Carver, Romeoville Toyota The Parts and Service Superstar Award honors excellence in dealership fixed operations. Carver was recognized for his unwavering commitment to customer satisfaction and operational excellence, creating an efficient service operation while ensuring every customer receives an exceptional experience. Finalists: Oscar Bautista (Al Piemonte Nissan), Angel Quinones (Al Piemonte Nissan) and Nicholas Ruffolo (Rohrman Automotive Group) COMMUNITY IMPACT AWARD Webb Automotive Group The Community Impact Award recognizes a dealership that demonstrates an outstanding commitment to charitable partnerships, volunteerism and community engagement. Webb Automotive Group was honored for its ongoing support of organizations such as the USO, Hyundai Hope on Wheels, local schools and community programs, as well as its Ride for the Troops and Drive for the Troops initiatives. Employees were also recognized for their volunteerism and efforts that have helped raise more than $50,000 for the USO while supporting numerous local charitable initiatives. Finalists: Gregory Auto Group Hyundai/Genesis, Larry Roesch Volkswagen, Ray Chevrolet/Ray CDJR, Raymond Chevrolet Kia and Rohrman Automotive Group INNOVATIVE MARKETING AWARD Brilliance Subaru Brilliance Subaru received the Innovative Marketing Award for transforming its Brilliance Subaru Loves Pets program into a signature community initiative. Through its partnership with Anderson Humane, the dealership has helped more than 1,100 rescue animals find homes since 2021 while strengthening community engagement and brand awareness through meaningful customer connections. Finalist: Rohrman Automotive Group “The caliber of this year’s nominations speaks volumes about the professionals and dealerships serving our industry,” Morand added. “We congratulate all of our finalists and award recipients for setting the standard for excellence and inspiring others through their leadership, innovation and commitment to their customers and communities.” CATA UP TO SPEED 15
Drive for the Troops Marks Another Successful July of Supporting the USO For the 13th consecutive year, the Chicago Automobile Trade Association (CATA) and its dealer members came together throughout July to support the USO through the Drive for the Troops fundraising campaign. Dealerships across Chicagoland hosted a variety of community events and online fundraisers, including barbecues, car shows, bike rides and other creative initiatives, all with a shared mission of supporting service members and their families. The CATA Annual Meeting & Member Golf Outing also contributed to the campaign, with event fundraising and dealer contributions benefiting the USO. Now in its 13th year, Drive for the Troops continues to unite CATA dealer members in giving back through the USO. This year’s campaign raised $59,000, bringing the program’s total fundraising to more than $1.2 million since its inception. Nearly 800 fundraising events have been held over the years, helping the USO provide critical resources and services to more than 300,000 service members and their families annually. The campaign’s final donation will be presented to the USO during a special check presentation at USO Great Lakes Center, continuing the CATA’s long-standing commitment to honoring and supporting those who serve. Thank you to all of the CATA dealer members, employees and community members who participated in this year’s Drive for the Troops campaign and helped make another successful July possible. CATA UP TO SPEED 16
CATA UP TO SPEED 17
Catalytic Converter Theft Is Here To Stay By Don Jacobs, President and Founder, Trydon What do Pt, Pd and Rh have in common? They are the chemical symbols for platinum, palladium and rhodium, and all are found inside every catalytic converter on the road today. Being extremely rare and difficult to mine, these metals can routinely command prices higher than gold on the precious metals market, making catalytic converters a prime target for theft. In 2022 alone, the price of palladium spiked from $1,000 to $3,000 per ounce. Long-term palladium price forecasts for 2036 differ drastically, but some experts predict it could reach as high as $5,500 per ounce. Knowing that OEM converters on new car lots contain nearly 10 times more precious metal content than aftermarket converters makes them a more attractive target for thieves. In as little as 15 seconds, a new car’s catalytic converter can be removed, enabling thieves to quickly move from car to car, increasing their take for the night, often without being captured by security cameras. Dealers who have been victimized say it’s not just the cost of the catalytic converter; the collateral damage to the car during removal adds dramatically to the vehicle’s restoration costs. Catalytic converter theft was originally considered to be a problem only for urban dealers. However, police reports confirm that such theft is radiating out into the more trusting auto dealer markets. Growth in hybrid and full ICE vehicles will keep catalytic converter availability high now that the full EV push has subsided. Efforts to strengthen federal and state legislation requiring authorized recyclers to obtain greater sales transaction documentation and identification of legitimate sellers of catalytic converters, such as scrap yards, only make these authorized recyclers and sellers more legitimate. It does nothing to suppress a black market that invariably surfaces when such valuable and untraceable materials are involved. Once the exterior housing of a converter has been removed, there is no identity as to its origin (i.e., the car from which it was stolen), and its metals become as untraceable as gold jewelry that is melted into an ingot and sold on the spot market. Thieves know this and they will always find a “fence” who will pay cash for the stolen converters, no questions asked. At Trydon®, we believe that the most common-sense way to protect your dealerships from criminals is by keeping them from entering your site in the first place. You have a network of light poles strategically placed throughout your site, and specifically along your perimeter, so why not empower them to act as nighttime sentries capable of detecting and responding when someone first enters your lot? That is precisely what ChaseLight™ does. ChaseLight’s technology understands the difference between the behavior of criminals and the interests of car shoppers. BrowseHours™ welcomes car shoppers for an early after-hours walk-through of your vehicle inventory, after which ChaseLight’s motion-sensing ability dramatically deters unwanted trespassers from remaining on your site. And it pays for itself by enabling you to dim your LED lights in a highly coordinated fashion, reducing your after-hours energy costs by as much as 90% without compromising safety or merchandising impact. With 100% deductibility of capital improvements now allowed in the first year of operation, combined with Trydon’s subscription program, you can preserve your cash for more important matters, such as purchasing cars for resale rather than tying it up in bricks and mortar. Additional benefits of the Trydon subscription program: • 100% warranty support (parts and labor) for all equipment (lighting controllers, new lights, even light poles) supplied to the project • All Trydon software upgrades and enhancements are installed by Trydon personnel • 24-hour telephone-based customer support Making Trydon the first capital project of the year can support additional site improvements later on. We welcome the opportunity to show you how we can benefit your operation. To learn more, please visit chaselight-tech.com. CATA UP TO SPEED 18
How Pricing Visibility Can Drive Fixed Ops Profitability By Dynatron Software Fixed operations leaders are under pressure to protect profitability without compromising customer trust. Yet for many dealerships, the biggest obstacle is not the pricing strategy itself. The larger problem is the lack of clear visibility into how that strategy is being executed every day. Across fixed ops, leaders manage thousands of labor and parts price points, shifting technician capacity, inconsistent op code usage, competitive pricing pressures, and rising customer expectations around value and transparency. The challenge is not a lack of data; most dealerships have plenty of it. The challenge is turning that data into clear, consistent and actionable pricing decisions. THE VISIBILITY PROBLEM: FIXED OPS DATA FOG In fixed operations, “data fog” happens when leaders have information, but no clear view of what is actually happening. Pricing decisions, advisor behavior, op codes, discounts, overrides and repair order details can get buried across disconnected systems and manual reports. When that happens, teams may have access to data, but not the clarity they need to make confident pricing decisions. This lack of visibility can create hidden profit leaks, including: » Inconsistent op code usage » Limited pricing compliance » Untracked discounting » Manual reporting gaps » Too many unmanaged price points Individually, these issues may seem minor. Together, they make it harder to understand what is happening at the repair order level. WHEN PRICING STRATEGY BREAKS DOWN IN THE SERVICE DRIVE Most dealerships have a pricing strategy in place. The issue is that the strategy does not always translate into daily execution. A service advisor may discount a repair, adjust pricing in the moment or override the recommended charge to resolve a customer concern. Those decisions may feel necessary, but without clear reporting and accountability, they can create inconsistent pricing across the department. Over time, that inconsistency can lower the effective labor rate, reduce gross profit, create advisor-to-advisor variation and make service pricing less predictable. It can also limit the quality of customer pay performance data that may support future warranty reimbursement opportunities. That is why pricing compliance matters. It helps leaders see whether the intended strategy is actually being followed. PRICING FOR PROFITABILITY AND RETENTION A stronger pricing strategy does not mean charging more for every service. The best pricing decisions balance profitability and customer retention. The goal is to identify the right price: competitive enough to support customer trust, strong enough to protect profitability, consistent enough for the team to execute and flexible enough to reflect local market conditions. That balance is difficult to achieve through instinct, spreadsheets or outdated reporting alone. FROM VISIBILITY TO ACTION Improving pricing performance starts with a simple principle: You cannot optimize what you cannot see. With clean, consistent data, fixed ops leaders can better understand what is happening across every repair order and where pricing performance may be breaking down. They can answer critical questions, such as: » Was the recommended price followed? » Was the service approved, discounted or overridden? » Are advisors applying pricing consistently? » Which op codes are creating confusion or masking opportunity? » How does the dealership compare to the local market? CATA UP TO SPEED 20
When this information is visible at the repair order, advisor, op code and market level, leaders can coach more effectively, correct issues faster and act with greater confidence. TURNING INSIGHT INTO A FIXED OPS PERFORMANCE ADVANTAGE Better pricing visibility helps fixed ops leaders see where pricing is being followed, where it breaks down and where small process improvements can yield meaningful gains. By clearing the data fog, dealerships can manage pricing more consistently, coach teams more effectively and turn fixed operations into a stronger performance advantage. Scan this QR code to download our new guide, 4 Strategies for Fixed Ops Performance Advantage, to learn how leading dealerships are clearing data fog and improving pricing performance. https://go.dynatronsoftware.com/hidden-profitengine?utm_source=partnership-newsletter&utm_medium=email&utm_ campaign=partnership-newsletter-JULY-26&utm_content=cata Ready to gain a fixed ops performance advantage? Scan this QR code to contact Dynatron to find out how. https://go.dynatronsoftware.com/cata?utm_ source=partnership-newsletter&utm_ medium=email&utm_campaign=partnershipnewsletter-JULY-26&utm_content=cata Advertising in this public tion connects you with decision-m kers who re ctively seeking solutions, giving your mess ge the credibility nd visibility it needs to inspire ction. Reserve Your Ad Space Today! Turning Readers into Customers CONTACT US! mbr-connect.com • (801) 676-9722 hello@mbr-connect.com CATA UP TO SPEED 21
In automotive mergers and acquisitions (M&A), the difference between a good deal and a great one often comes down to uncovering hidden profit. Dealerships can hold significant untapped value that, with the right insights and strategy, can be transformed into greater profitability and enterprise value. This is where profit hunting comes into play. At Dealer Solutions Mergers & Acquisitions (DSMA), profit hunting goes beyond a traditional valuation to identify opportunities buried within a dealership’s financials, operations and assets. With more than 2,500 completed valuations and 575 dealerships sold, DSMA combines industry expertise with financial intelligence to help dealers understand not only what their business is worth today, but what it could be worth tomorrow. “A valuation puts a number on the business,” explains Ivy Lu, CPA and manager of deal advisory and valuations at DSMA. “Profit hunting is about finding what’s not immediately visible and identifying opportunities to unlock additional value.” Looking Beyond the Balance Sheet A traditional valuation examines a dealership’s financial performance, market conditions and other factors that establish its current economic worth. Profit hunting takes the analysis a step further. “Profit hunting isn’t just about looking at revenue and expenses,” says Jennifer Rafael, executive vice president and partner at DSMA. “It’s about going beneath the surface, looking at add-backs, expense structures, real estate strategies, brand mix and operational efficiencies.” These areas can reveal opportunities that may otherwise be overlooked. Adjusting expenses, improving operational efficiency, optimizing real estate, or identifying overlooked earnings can have a meaningful impact on profitability and ultimately increase the dealership’s value. “A good valuation shows you what’s happening now, but profit hunting helps you see where you can go,” says Ivy. Turning Data Into Action At DSMA, the valuation process is designed to deliver more than a number. Its finance team, supported by six specialized automotive CPAs, evaluates industry-specific factors such as floor plan interest, off-book earnings, inventory write-downs and other adjustments that can materially influence a dealership’s value. This specialized expertise is critical in an industry where seemingly small financial adjustments can have a significant impact on the bottom line. THE ART OF PROFIT HUNTING IN AUTOMOTIVE DEALS Uncovering Hidden Value to Maximize Profit Potential By Jennifer Rafael, Executive Vice President & Partner, DSMA “Without the right industry expertise, key adjustments can easily be missed,” Ivy says. “Our approach is built on years of experience and a deep understanding of what drives profitability in automotive.” The result is a clearer picture of the dealership’s current position and a roadmap for improving its future value. When Should You Start Profit Hunting? Profit hunting can be valuable at virtually any stage of a dealership’s lifecycle, but several moments stand out: • Before Major Decisions: Understand your market value before selling, expanding or beginning succession planning. • Before Growth: Identify operational strengths, weaknesses and opportunities before investing in expansion. • When Market Conditions Shift: Changes in OEM performance, brand value or market dynamics can create new opportunities. • Before Major Investments: Determine whether existing assets and operations are being fully optimized before committing additional capital. • Before Selling: Identify opportunities to improve profitability and value so you are positioned to maximize the transaction. For some dealers, the valuation becomes a benchmark for improving operations before going to market. For others, it becomes the first step toward a transaction. “Some clients use the valuation to improve their operations and boost value before going to market,” Jennifer explains. “For others, it’s the starting point for a deal. We introduce qualified buyers, structure the transaction and help close the deal.” In today’s competitive automotive M&A environment, knowing what your dealership is worth is only the beginning. The real opportunity lies in understanding why it is worth that amount and what can be done to increase it. DSMA’s profit-hunting approach combines financial analysis, automotive intelligence and M&A expertise to help dealers uncover hidden value and turn insights into action. Know what your dealership is worth. Then find out what it could be worth. To learn more about DSMA’s profit-hunting formula, visit dsma.com or contact info@dsma.com. CATA UP TO SPEED 22
For more information, or to learn more about our 100+ opportunities, visit DSMA.com. OUR MIDWEST TEAM OF TRUSTED ADVISORS JENNIFER RAFAEL Executive V.P., Partner jennifer.rafael@dsma.com 312.927.9561 GAIN INSIGHT INTO YOUR DEALERSHIP’S VALUE. KNOW WHAT YOUR BRAND IS WORTH. SCAN THE QR CODE TO REQUEST A BUSINESS VALUATION TODAY. 20+BRANDS SOLD IN 2026. NICOLE MARTIN M&A Associate nicole.martin@dsma.com 312.674.4556 BRADLEY BICKLE M&A Associate bradley.bickle@dsma.com 312.674.4556 NOLAN KLUG Business Dev. Manager nolan.klug@dsma.com 312.674.4556 MIKE FUNK Regional Director michael.funk@dsma.com 312.674.4556 GREG BROWN M&A Associate greg.brown@dsma.com 312.674.4556 CHRIS HAWLEY Regional Director chris.hawley@dsma.com 312.674.4556 SHINTHYA SILVA M&A Associate shinthya.silva@dsma.com 312.674.4556
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