2025 Pub. 3 Issue 3 Jeff Smith Getting to Know 2025-26 MADA Chairman,
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©2025 The Mississippi Auto Dealers Association (MADA) | The newsLINK Group LLC. All rights reserved. Mississippi Auto Dealer is published four times per year by The newsLINK Group LLC for MADA 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 MADA, 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. Mississippi Auto Dealer is a collective work, and as such, some articles are submitted by authors who are independent of MADA. 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 (855) 747-4003. 8 24 PRESIDENT’S MESSAGE 4 OEM Group Targets Franchise Laws in Letter to DOJ By Marty Milstead, President, MADA CHAIRMAN’S MESSAGE 6 Steering MADA Forward A Commitment to Unity and Advocacy By Jeff Smith, Chairman, MADA 8 2025 Tri-State New Car and Truck Dealers Convention Highlights 14 2025-26 MADA Board of Directors NEXTGEN DEALER SPOTLIGHT 16 Meet Lauren Wilson Reeves of Wilson Kia NADA DIRECTOR’S REPORT 18 Tax Reform Triumph H.R. 1 Delivers for Auto Dealers By Michael Joe Cannon, Director, NADA GETTING TO KNOW 2025-26 MADA CHAIRMAN, JEFF SMITH 24 Ransomware A Response Plan Is Essential for Auto Dealers By Bank of America CONTENTS2025 Pub. 3 Issue 3 20 3
OEM GROUP TARGETS FRANCHISE LAWS IN LETTER TO DOJ President’s Message By Marty Milstead, President, MADA A recent move by the Alliance for Automotive Innovation, representing most major automakers, has raised serious concerns for franchised new car dealers across the country. You may have seen the July 16, 2025, Automotive News article titled “Alliance, NADA Clash in ‘Holy War’ Over State Franchise Laws in Justice Department Review.” To read the article, scan the QR code. https://www.autonews.com/retail/an-nadaalliance-doj-franchise-laws-0716/ The Alliance, which represents nearly every major original equipment manufacturer (OEM), submitted a letter to the U.S. Department of Justice’s (DOJ) Anticompetitive Regulations Task Force challenging the very foundation of the dealer franchise system. The National Automobile Dealers Association (NADA) was blindsided by the Alliance, as our national organization was not given the courtesy of a conversation or notice that the letter was being sent. WHAT DID THE ALLIANCE SAY? In their letter, the Alliance claimed that many state-level franchise laws — including those that secure fair warranty reimbursement, protect against the forced addition of new dealers and uphold dealer territory agreements — are outdated, anti-competitive and harmful to consumers. Here’s a direct quote from the letter: “Virtually every state has enacted a series of motor vehicle franchise laws that regulate nearly every aspect of the relationship between motor vehicle manufacturers and their authorized dealers. While the stated purpose of these statutes is to protect consumers, many of these statutes also significantly restrict competition in this industry and can actually harm the consumers they purport to protect.” This action by the Alliance should be alarming to every dealer. 4
MADA will stand on the front lines — but we’ll need every Mississippi dealer engaged, informed and ready. WORKING TOGETHER — UNTIL NOW Historically, while the missions of the Alliance, NADA and state dealer associations like MADA don’t always align, there has been collaboration on issues impacting consumers, dealers and manufacturers alike. In Mississippi, the Alliance has been involved in the legislative process. In fact, every recent major change to our state’s franchise law — ranging from warranty reimbursement improvements to bans on manufacturer-owned dealerships — has become law with the Alliance’s approval. The Alliance circulated the DOJ letter among OEMs before submitting it and seeking their approval. That’s why the DOJ letter is so troubling. And as of this writing, not a single OEM has disavowed the Alliance’s attack on franchise laws. WHAT CAN DEALERS DO? Franchised dealers need to stay vigilant in Washington and with state-elected officials. “ WHAT’S AT STAKE? 1. A Fight at the Federal Level: If the DOJ agrees with the Alliance’s position, it could pave the way for federal preemption of state franchise laws, weakening protections that Mississippi dealers have fought hard to secure. 2. Undermining State Policy: Mississippi’s dealer network is deeply important to local economies and the communities we serve. Federal interference could erode the foundation that has been laid over generations and harm the local auto retail system. FINAL THOUGHT This moment is a clear reminder of why it is vital that franchised dealers remain active in the political process — both in Washington and in Jackson. Mississippians have always been best served by franchised dealerships that provide not only value to consumers but also deep economic and social investment in our towns and communities. If the DOJ and Congress take the side of the OEMs, we’re looking at a fight of monumental proportions. MADA will stand on the front lines — but we’ll need every Mississippi dealer engaged, informed and ready. 5
STEERING MADA FORWARD Chairman’s Message By Jeff Smith, Chairman, MADA I first want to thank the board of directors and MADA membership for giving me the opportunity to serve as your chairman. When I took the reins at our annual convention, it was a surreal moment. As I sat there with my family, I couldn’t help but reflect on my early days attending the convention. From those first moments in the car business and my exposure to our association, so much has changed — yet the core of what makes MADA special remains the same: our shared commitment to promote, advance and protect Mississippi’s franchised automobile and truck dealers. My journey with MADA took a significant step forward in 2018 when I was first elected to the board of directors and saw firsthand how hard MADA works for its members. A REWARDING JOURNEY WITH MADA Getting involved with MADA has been one of the most rewarding experiences of my career. The best part is the chance to meet and build friendships with fellow dealers. While we may compete head-to-head for customers every day, it’s remarkable how we come together as a community, united by our passion for this industry. Our board of directors is dedicated to our mission, ensuring that Mississippi’s 217-plus dealerships, which employ over 19,000 people, continue to thrive. FACING CHALLENGES WITH UNITY My biggest concern as chairman is that we risk becoming complacent with our past successes. The franchise system, which has long been the backbone of our industry, is under attack. Alarmingly, some of these challenges come from our own manufacturers. The Alliance for Automotive Innovation, representing nearly every car manufacturer, recently sent a letter to the Department of Justice attacking the franchise system and the laws that protect our dealerships from unfair business practices by OEMs. By standing together and working for our common good, we can defeat these challenges and safeguard the future of our industry, which ultimately benefits the consumer. LOOKING AHEAD I’m eager to hit the ground running with our 2025 Regional Meetings, where I look forward to connecting with you, our members, and hearing your ideas and concerns. These gatherings serve an important role by ensuring MADA remains a powerful voice for Mississippi’s dealers. We’ll continue to provide resources like the Mississippi Auto Dealer magazine, webinars and compliance updates to keep you informed and equipped to navigate the evolving automotive industry. I am grateful to have such a strong and energetic officer team to work with during my tenure. I also want to extend my appreciation to Paxton King for his outstanding leadership as chairman last year. His dedication and vision have set a high standard, and I’m committed to building on his legacy. A CALL TO ACTION If there’s anything you need from me, please don’t hesitate to reach out. Together, we can continue to keep MADA great, ensuring a solid future for all our members. Let’s stay united, stay vigilant and keep pushing for the strength and success of Mississippi’s automotive industry. A Commitment to Unity and Advocacy 6
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2025 Tri-State New Car and Truck Dealers Convention Highlights RECORD-BREAKING SUCCESS The 2025 Alabama-Mississippi-Tennessee New Car and Truck Dealers Convention was a historic gathering, setting a new benchmark for automotive industry meetings. Hosted at the stunning Hilton Sandestin Beach Golf Resort & Spa along Florida’s Gulf Coast, the event drew a record number of Mississippi dealerships and vendor partners, with nearly 800 attendees filling the resort for three days of networking, education and celebration. From the electrifying opening reception to the dazzling fireworks display over the Gulf of Mexico, the convention was a whirlwind of unforgettable moments. Attendees were quick to dub it the best event yet, with Paxton King, MADA past chairman, summing it up: “Every year is great, but this one was exceptional. The energy, the crowd — it was the best we’ve ever had!” POWERFUL PRESENTATIONS AND INDUSTRY INSIGHTS The convention’s agenda was packed with thought-provoking sessions. Automotive analyst Kevin Tynan of the Presidio Group captivated a ballroom full of attendees with his deep dive into the current state of the automotive industry. “Kevin’s insight on the automotive industry is second to none,” said Jeff Smith, MADA chairman. “He always provides research that helps dealers with what’s coming in auto retail. It was eye-opening.” Adding a touch of inspiration, football legend Reggie Collier, the first NCAA quarterback to rush and pass for over 1,000 yards in a single season, shared stories from his days playing at the University of Southern Mississippi (USM). His recap of breaking Alabama’s 57-game winning streak in Tuscaloosa was one of the highlights. “Hearing from Reggie was entertaining — the stories about his playing days at USM were fun to hear,” noted Larry Clark, chairman of the Mississippi Motor Vehicle Commission. NADA Vice President of Industry Relations Todd Milbury also delivered a standout presentation, offering a national perspective on OEM-dealer dynamics and advocacy insights. “Todd brought clarity to some of the biggest challenges we’re facing with the manufacturers. We appreciate his work on our behalf,” said Michael Joe Cannon, Mississippi NADA director. A MEMORABLE EXPERIENCE FUELED BY COMMUNITY AND SPONSORS The convention wasn’t just about business — it was an opportunity to showcase all that is happening in the dealer community. The breathtaking fireworks finale over the Gulf was a fitting capstone to an extraordinary gathering. None of this would have been possible without the generous support of the event’s sponsors, whose commitment made every moment — from the welcome reception to the final fireworks — truly special. “We’re incredibly grateful to our sponsors for helping us create an experience that our members will remember for years to come,” said Marty Milstead, MADA president. 8
MARK YOUR CALENDARS FOR 2026 The 2025 convention set a high bar, but plans are already underway for next year’s event, scheduled for June 21-24, 2026, at the Hilton Sandestin Beach Golf Resort & Spa. Dealers, vendors and industry partners are encouraged to save the date for another unforgettable gathering. The 2025 Tri-State Convention proved once again why it’s a can’t-miss event for the automotive industry in Alabama, Mississippi and Tennessee. With its blend of cutting-edge insights, inspiring stories and unparalleled networking, this year’s event will be remembered as a milestone in the region’s automotive community. 9
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2025-26 MADA Board of Directors Jeff Smith Chairman Phil Moore Chairman-Elect Drew DePriest Secretary Treasurer Paxton King Past Chairman Michael Joe Cannon NADA Director Michelle Chapman Tab Bennett Cannon Kirk NORTHERN DISTRICT John Scarbrough Lauren Wilson Reeves Mike Gregory CENTRAL DISTRICT Bo Mandal Alton Pierce Jared Waldrop SOUTHERN DISTRICT 14
• Labor Relations • Employee handbooks • Employment Law Counseling and Litigation • HR Policies and procedures • Independent contractor issues • OSHA Compliance and defense • Purchasing or selling a dealership • Staffing and contingent workers • Workers’ Compensation • Wage and hour law Steve Cupp Partner | Gulfport/New Orleans 228.822.1440 scupp@fisherphillips.com Fisher Phillips brings valuable legal counsel to MADA members. Our labor and employment law firm offers auto dealerships the following services: A driving force in labor and employment law for more than 70 years. fisherphillips.com 2505 14th Street | Suite 300 | Gulfport, MS 39501 ENDORSED BY: ON AVERAGE, MS DEALERS ADD $54,444 IN PARTS UPLIFT ANNUALLY ARMATUS HAS COMPLETED OVER 20,000+ SUBMISSIONS NATIONWIDE ON AVERAGE, MS DEALERS ADD $56,556 IN LABOR UPLIFT ANNUALLY ARMATUS WORKS WITH 38% OF MISSISSIPPI DEALERS OUR COMMITMENT TO OUR CLIENTS: ÙYou Won’t Lift a Finger: Armatus does all the work for you. ÙFully Contingent Fee: You only pay when you are approved. ÙSpeed and Accuracy: No one completes a submission faster. ÙOptimization: Proprietary software guarantees you the best result. (888) 477-2228 | info@dealeruplift.com WWW.DEALERUPLIFT.COM If you have already completed a submission in-house or with another vendor, you may still have significant opportunities to gain more. If we can’t improve your results, you owe us nothing. Between our scientifically proven optimal results, and our speed of processing, we will literally pay our own fee. Reach out today for a no-obligation evaluation of your parts and labor rates. 15
Meet Lauren Wilson Reeves of Wilson Kia NextGen Dealer Spotlight Lauren Wilson Reeves is carrying on her family legacy as a third-generation dealer. Her grandfather, Howard Wilson, owned Howard Wilson Chrysler Jeep. Her father, Doug Wilson, learned the art of the business working with Howard. When Howard passed away, Doug made the decision to go out on his own, and he formed Wilson Auto Group. That was 36 years ago. Today, Wilson Auto Group has earned every major customer satisfaction award from the manufacturer and keeps raising the bar. Wilson Kia is no exception. With Lauren as general manager, the dealership has thousands of five-star reviews and even more happy customers. We recently had the chance to sit down with Lauren and learn more about her career journey, goals for the future and her involvement with MADA. The following are excerpts from our conversation. What makes Wilson Kia unique? Wilson Kia is unique because we are one of the few automobile dealers that are a family business, not a corporate store. You get what you see at Wilson Kia. I am at the store every day, and my door is always open! I take a very active role in the dealership and make a point to get to know our customers personally. I love being able to talk to them and help them with their transportation needs. At Wilson Kia, our slogan is “Buy Happy, it’s the Wilson Way!” and we truly want every customer to feel like they are family to us and that their experience was as easy as just talking to a friend. Did you always want to join the family business? Initially, I had no interest in being in the car business, but was always a sales girl at heart. Throughout college, and before I went into the car business full-time, I had a clothing boutique and sold items on eBay for income. My dad approached me and asked me to come into the family business, and I agreed and truly cannot ever see myself doing anything other than being in the car business. What positions have you held in the company? Have you had any specialized training or education? I have held every position in the company. I started out selling cars and worked my way up from there. My dad wanted to teach me all facets of the business, so I spent at least six months in each department until I accomplished the goal he set for me. I am an NCM Dealer Academy graduate and have attended Assurant Finance and Insurance Training, which has helped me to build upon what my dad taught me. I also have a bachelor’s degree in business. Have you had any mentors, and what did you learn from them? My biggest mentor is my dad. He is a brilliant businessman. He taught me everything I know about the car business. The lessons that stick out above all else are valuing people and following processes. 16
When it comes to people, our customers are so important because if not for them, we wouldn’t be in business. Without our employees, we wouldn’t be able to take care of customers. The car business is known for long hours, and we have a family culture when it comes to our employees. I believe that if you are going to spend more time at work than at home, you’d better like those you work with. Processes are essential for success. A car dealership has many moving parts, and processes keep everything running smoothly. I tell every new employee we hire that if they follow our processes, they will be successful. What has been the most rewarding part of your career? The most rewarding part of my career is being able to help people. There is nothing better than visiting with customers after they purchase a vehicle and having them tell me how much they love their car. The two biggest purchases people will make in their lives are a home and a vehicle, and I cherish getting to be a part of that. It’s fun to see how much people love their cars — many of them even name their vehicles, and it is a very cool thing to be a part of such a large decision. Where do you see yourself and the dealership in the next 3-5 years? We are planning to open a used car facility across the street, and being able to see that come to fruition and grow it to become successful will be very rewarding. Additionally, in the next few years, I plan to step into a part-owner role at Wilson Auto Group. How long have you been a member of MADA? What roles have you held, and what benefits does association membership bring? Wilson Auto Group has been a member of MADA since the association first started. We are very thankful for Marty and how well he represents the car dealers in our state. It is nice that anytime we have an issue, we can pick up the phone and call the association, knowing that Marty and MADA are in our corner. Additionally, I am currently serving on the MADA board, which has been an honor and something I have really enjoyed. What is your favorite way to spend your free time? Do you have any hobbies? My favorite way to spend my free time is with my kids. I have a 14-year-old, a 3-year-old and a 5-month-old baby. They keep me plenty busy! In this season of my life, I am a little too busy for hobbies, but I hope to learn how to play Mahjong in the near future! How do you balance your professional responsibilities and personal life? This is a tough one. Being a working mom of three energetic kiddos is very difficult at times, and my calendar is absolutely insane. I have to stay organized, and I do not go anywhere without my planner. Being in the car business requires me to work a lot, but my kids know that I will be there for them. I won’t miss a game or a meet-the-teacher night. I may be running in the school building on the phone, taking care of dealership business, but I will always show up for them. TAKE US ANYWHERE! Scan to read the most recent publication. Stay up to date from your couch, office or even the moon! Place a 1” x 1” QR Code White on Black Here to the main website 17
On July 4, 2025, President Donald Trump signed H.R. 1, the “One Big Beautiful Bill Act,” into law, marking a significant victory for NADA and its members. After months of tireless collaboration with congressional tax-writing committees and leadership, NADA secured critical dealer-friendly provisions in this landmark tax reform legislation. These measures promise permanent tax relief and bolster the financial health of auto dealerships nationwide. Here’s a breakdown of what’s new, why it matters and what didn’t make the cut. WHAT’S NEW: KEY DEALER-FRIENDLY PROVISIONS Permanent Tax Relief • Pass-Through Deduction (Section 199A): The 20% deduction for pass-through entities is now permanent, with an expanded phase-in range — $75,000 for non-joint returns and $150,000 for joint returns, up from $50,000 and $100,000, respectively. Effective for taxable years beginning after Dec. 31, 2025. • Estate Tax: The exemption is permanently increased to $15 million for individuals and $30 million for joint filers, with annual inflation adjustments. This applies to estates of decedents and gifts made after Dec. 31, 2025. • Interest Deduction Limitations (Section 163(j)): Reverts permanently to EBITDA-based calculations for taxable years beginning after Dec. 31, 2024, easing restrictions on interest deductions. • Bonus Depreciation (Section 168(k)): Restores and extends 100% bonus depreciation permanently for property acquired and placed in service on or after Jan. 19, 2025. • Expense Deduction (Section 179(b)): Permanently increases to $2.5 million, with a phase-out threshold of $4 million, effective for property placed in service after Dec. 31, 2024. Electric Vehicle (EV) Credits Eliminated • New EV Credit (Section 30D): Eliminated after Sept. 30, 2025, without the previously proposed exemption for manufacturers selling fewer than 200,000 EVs. • Leasing and Commercial EV Credit (Section 45W): Eliminated after Sept. 30, 2025. • Used EV Credit (Section 25E): Eliminated after Sept. 30, 2025. • Clean Heavy-Duty Vehicles (IRA Section 60101): The Inflation Reduction Act’s grant program for heavy-duty electric vehicles is repealed, with unobligated funds rescinded, effective immediately. Temporary Auto Loan Deductibility A new above-the-line deduction allows consumers to deduct up to $10,000 in auto loan interest for new vehicles final-assembled in the U.S. This applies to taxpayers with modified adjusted gross income (MAGI) below $100,000 (individual) or $200,000 (joint). The deduction is available from 2025 through 2028. Income Tax Rates The modified income tax rates from the 2017 Tax Cuts and Jobs Act are now permanent, with an additional year of inflation adjustment for the 10%, 12% and 22% brackets, effective after Dec. 31, 2025. State and Local Tax (SALT) Deductions • Business/PTET: NADA successfully preserved the pass-through entity tax (PTET) workaround, allowing pass-through businesses to deduct certain state and local taxes at the entity level, bypassing the $10,000 SALT cap. • Individual SALT Cap: Increases to $40,000 for 2025, with 1% annual increases through 2029, before reverting to $10,000 in 2030. The deduction phases down for incomes above $500,000. Tax Reform Triumph H.R. 1 Delivers for Auto Dealers By Michael Joe Cannon, Director, NADA NADA Director’s Report 18
CAFE Penalty Relief The National Highway Traffic Safety Administration’s (NHTSA) Corporate Average Fuel Economy (CAFE) penalty for automakers not meeting standards is reduced to $0, effective immediately. WHY IT MATTERS These provisions deliver substantial benefits for auto dealers: • Financial Relief: Permanent deductions like Section 199A, bonus depreciation and expanded expense deductions reduce tax burdens, freeing up capital for reinvestment. • Estate Planning: Higher estate tax exemptions provide long-term security for family-owned dealerships. • Leveling the Playing Field: The elimination of EV credits and CAFE penalties reduces competitive pressures on traditional vehicle sales, while the temporary auto loan deduction incentivizes purchases of U.S.-assembled vehicles. • SALT Workaround Preservation: Maintaining the PTET workaround ensures dealers in high-tax states can maximize deductions. NADA’s advocacy was instrumental in shaping these outcomes, particularly in preserving the PTET and securing permanent tax relief tailored to dealers’ needs. LOOKING AHEAD H.R. 1 is a game-changer for auto dealers, offering immediate and long-term financial benefits. NADA remains committed to advocating for dealers as Congress tackles future legislation, including the highway reauthorization bill. For now, dealers can celebrate a hard-fought victory that strengthens their businesses and supports the broader automotive industry. This is another win for dealers in Washington, D.C. It is an honor to serve as your Mississippi NADA director. Please let me know if I can help you in any way. H.R. 1 is a game-changer for auto dealers, offering immediate and long-term financial benefits. “ 19
Getting to Know 2025-26 MADA Chairman, Jeff Smith, owner of Crossroads Chevrolet GMC, was sworn in as the 2025-26 MADA chairman in June. He brings with him 40 years of industry experience, having spent almost half of that time in the Corinth, Mississippi, community. Under Jeff’s direction, the Crossroads dealership has risen to one of the top three performers in GMC sales in Mississippi. His people-first frame of mind and commitment to transparency, efficiency and community have made Crossroads a standout in the automotive world. Of note, each month, Jeff and the Crossroads family give back to the Corinth community through Crossroads Community Action Now (CAN), providing a hand up to local nonprofits as well as scholarships to local students. Jeff’s leadership, dedication and vision make him the perfect choice for this important role. We recently sat down with Jeff and learned more about his career, his thoughts on the industry and what he hopes to accomplish as chairman. The following are excerpts from our conversation. How did you get into the business? I got into the business in 1985 when my father-in-law bought a Chevrolet Mercedes-Benz dealership. The day he took over that dealership was the day that my oldest daughter was born, and he asked me to come to work for him. Those were both big turning points in my life. Today, my son-in-law is in the business with me. It’s funny how things come around. Jeff Smith 20
What has been the most rewarding part of your career? The most rewarding part of my career is simply the opportunity I was given by my father-in-law. He opened the door, and it was up to me what I did with that opportunity. I was in charge of how that turned out. Through hard work and commitment to this business, I found success. I was in control of my destiny. It’s frustrating to see when people in the industry let so many opportunities pass them by. What are the biggest challenges the industry is facing? I think the number one issue — and it’s been this way for a long time — is being able to attract and retain quality people. That’s always the case, no matter where I’m at or who I’m talking to. This business is all about people. We’ve made some changes at Crossroads to try to show our people we value them. We moved to a four-day work week, which is unheard of in the car business. Most of the time in the car business, it’s a six- to seven-day work week. I give my current general manager credit for this change. When he first brought the idea to me, I said, “Have you lost your mind? There’s no way.” After we discussed it, I said, “OK, we’re going to try it. But if business drops, we’re going away from it.” Interestingly enough, both business and production have increased. Initiatives like these are worth it. We’re constantly trying and are very conscientious about creating a fun work environment so that folks want to come to work here and stay working here. We call it the Crossroads family, and we truly try to make it a family. The second challenge is the manufacturers. I’ve worked with many manufacturers over my career, and the dealer-factory relationship is a struggle. It always has been, and I don’t see that changing in the near future. What inspired you to take the role of chairman, and what aspects of your background have prepared you for this? First and foremost, I’m a Christian and I live by the motto “To whom much is given, much is required.” I’ve been involved with MADA since the late 80s, but I hadn’t taken on an active role. When Marty approached me about becoming a board member, it was a no-brainer. It was my way to give back to the association that has helped me so many times over the years. It’s incredibly humbling to me to be asked to be in this role. As far as my background goes, the past 40 years of experience have taught me a lot. From dealing with many manufacturers and running a new car dealership to the financial crisis of 2008 and the pandemic, I’ve learned a lot. By no means am I saying I’ve learned it all because that’s never the case. I’ve experienced a lot and learned from it, and I am constantly learning something new. From my perspective, running a new car dealership is unlike anything else: There are many profit centers in just one store. It’s like spinning plates at the circus. Once you get all the plates spinning, you’ve got to keep your eye on all of them; if you don’t, the next thing you know, the plates are about stopped and about to fall off the stick. My time in the business — keeping all the plates spinning — is what’s prepared me for this new role. Do you have any goals or things you’d like to accomplish now as chairman, and what can members do to help you? My goal is to support Marty in any way possible. It’s interesting, for most of my adult life, I have been so anti-politics. I didn’t want anything to do with them. However, my involvement with MADA helped me realize how important it is for our industry to have spokespeople, like Marty, looking out for our best interests and fighting for us every day. I don’t want it to sound like I’ve got all the answers because I don’t, but as I previously mentioned, attracting and retaining people into this business is vital. I want to share some of those things we’re doing to try to make a difference in this business. As car dealers, we’re painted with a broad brush. It’s nearly impossible to change perception, but in some way, if we could do some small 21
part and help to accomplish that change, then I would love to be able to do that. As far as the members go, keep supporting the association. Give to the MADA PAC. Give to the NADA PAC. We need to put our money where our mouth is and help Marty, our association and NADA protect the franchise system. How do you manage to balance your professional responsibilities with your personal life? I still spend a lot of time at the dealership, but would like more time away. Overall, I think I have a pretty good balance. I have people I trust in place, so when I’m not here, I can be away without having to worry about how things are running. I’m a little bit different than a lot of car dealers, maybe a whole lot different. I just want to live a comfortable life and give back. I want to be able to have peace in my life; it’s not about chasing the dollar all the time. Buying another store, or doing this and doing that at the expense of my health or my family relationships is not worth it. At the end of the day, when you’re gone, people don’t remember what you had. They remember how you made them feel. That’s what’s important. I try to get to know all of my employees on a personal level. They’re not just a number to me; they’re an asset. Please tell us about your family. I will have been married to my wife, Brenda, for 42 years this November. We have two daughters: Kristy and Holly. They’re both married, and like I said, one of my sons-in-law works for me, the other is in the ministry. My oldest daughter lives about 10 minutes from me and has my two granddaughters. My youngest daughter lives in Birmingham with my two grandsons. It’s been said that grandchildren fill a hole in your heart you never knew you had. That is so true. 22
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High-profile cyber incidents have highlighted the need for auto dealerships to prepare for the impacts due to loss of critical services and theft of sensitive data. Here are some factors to consider when creating an incident response plan. KEY TAKEAWAYS • Auto dealerships are facing an increasing number of cyberthreats that can debilitate operations and compromise customer and financial data. • Creating a ransomware response plan is a critical piece of any dealership’s preparedness. • By implementing basic controls and best practices, an incident response plan can improve security for dealerships, even those with limited IT and cyber defense budgets. When a software and applications vendor was compromised by ransomware in June 2024, thousands of auto dealerships felt the effects. Essential management systems became inaccessible, sales and financing transactions went manual or stopped, and sensitive customer and business data was compromised. By one estimate, auto dealerships lost over 50,000 new vehicle sales and suffered over $1 billion in damages in the month after the incident was reported.1 Although this was an “upstream” incident that began with a critical service provider, the ransomware event highlighted the elevated risk auto dealerships face. A 2024 study found that 35% of surveyed dealers had dealt with some type of cyber incident in the past year. What’s more, ransomware was rated as the most serious cyberthreat these businesses face.2 In this environment, every dealership needs a plan for what they must do if they’re targeted. WHY A RANSOMWARE RESPONSE PLAN IS ESSENTIAL Even dealerships that lack the resources to hire security professionals or invest in advanced controls can greatly improve their defenses by constructing a response plan that includes proactive measures such as data protection, raising employee awareness and implementing core best practices. A plan that outlines how a business can prepare against cybersecurity threats and respond to incidents can help limit the damages related to loss of data and operations. It can also improve the chances of avoiding many types of incidents, including ransomware. A Response Plan Is Essential for Auto Dealers By Bank of America 24
Creating a ransomware response plan is a critical piece of any dealership’s preparedness. The following guidelines can help dealerships create a response framework that can be tailored to their specific organization and capacity for planning. KEY ELEMENTS OF A RANSOMWARE RESPONSE PLAN Ransomware response depends on a timely assessment of a live incident’s severity and impact, clearly defined roles and reactions and a thorough investigation to ensure the threat is neutralized and operations can be brought back to a secure state. To be effective, your strategy must be in place before an incident occurs. Here’s how to get started. Before an Incident 1. Prepare • Educate key personnel regarding current cyber-risks and objectives of cybercriminals. • Appoint the most qualified individual to lead the creation, implementation and updating of the response plan. Alternatively, you can supervise a contract with a professional security vendor that creates the response plan. • Conduct a company risk assessment and be sure to include data inventory. • Create and maintain encrypted, offline or immutable backups of essential company and customer data. • Implement strong protections around identity and access management, such as multifactor authentication on all devices that can access company networks. • Formulate, test and continuously evolve the response plan. It should identify stakeholders and their roles, communication tactics and off-network channels, reporting procedures required by regulatory bodies or local law enforcement, and criteria for restoration of safe states. 2. Backup and Test • Regularly confirm the integrity of backups. • Do not look at backups as the “last line of defense.” No backup method is 100% cybersecure, and stealthy bad actors can corrupt backups even before they launch ransomware. During an Incident 3. Detection and Assessment • Use security tools to monitor network traffic for evidence of an adversary’s presence or movement and issue alerts. • Assess which systems are easily compromised by ransomware and isolate them. Coordinate a “ 25
shutdown of all devices that cannot disconnect from the affected systems. • Reset all credentials and passwords connected to affected systems. 4. Communication and Reporting • Inform all internal teams and stakeholders on a preselected communication channel to ensure individuals essential to the response are engaged. • As needed, report the incident to affected third parties or vendors that assist your dealership with security and incident response. • Notify cybersecurity agencies and/or local law enforcement to maintain regulatory compliance and to receive additional assistance or guidance. • Communicate with third parties and clients to ensure they have not experienced financial impacts after the incident. 5. Containment and Remediation • Disable any system involved in the initial breach, as well as connected systems that malicious actors could use to access other parts of the company network or data systems. • Analyze network traffic and endpoints for evidence of the malicious actors’ persistence. Remediate vulnerabilities. • Rebuild the systems that are most critical to business operations. • Reset passwords and permissions. After an Incident 6. Recovery and Response Plan Update • Complete a thorough forensic analysis of the incident and document all steps taken to eliminate the ransomware or remove footholds the threat actor established. • Confirm that backups remain uncorrupted and don’t contain malicious payloads. Restore affected systems. • Inform all relevant third parties and oversight agencies of the steps taken and the removal of the threat. • Make improvements to company systems based on forensics. • Continue to maintain vigilance. Update security systems regularly and adapt employee training to reflect lessons learned. To learn more, visit business.bofa.com. “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. 1Anderson Economic Group, “Dealer Losses Due to CDK Cyberattack Reach $1.02 Billion.” 2CDK Global, “The State of Dealership Cybersecurity 2024.” 26
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