Issue 1 2026 Official Publication of the New Jersey Coalition of Automotive Retailers Driving Forward What Governor Sherrill’s Leadership Lens Could Mean for New Jersey’s Auto Retail Sector
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table of CONTENTS NJ CAR BOARD OF TRUSTEES BY REGION NORTHERN REGION I (Bergen, Essex, Hudson, Passaic, Sussex) Mark Abaid (Alt.) Joseph Agresta, Jr. (Alt.) Timothy Allocca Jeffrey Brown John Fette Matthew Haiken (Alt.) William Kundert, Jr. Brian Lam Reneé P. McGuire Richard Selman Todd Van Duren NORTHERN REGION II (Hunterdon, Morris, Somerset, Union, Warren) Gregg Ciocca, Jr. William Feinstein David Ferraez Chris Gilbert (Alt.) John Johnson, Jr. Sean Lyons Mark Montenero Chris Preziosi, Jr. (Alt.) Edward J. Rossi William Strauss, III Stephen Tilton CENTRAL REGION (Middlesex, Monmouth, Ocean) Dan Chuhinko Robert Ciasulli Lisa Ocasio Devivo Kevin DiPiano (Alt.) Garry Foltz Adam Kraushaar Robert Larson Shelly Locascio Tyler Schmelz Anton Semprivivo Robert Sickel SOUTHERN REGION (Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Mercer, Salem) Doug Burke Allen Eastlack (AJ) (Alt.) Jason Elkins Jeremy Fisher Thomas Hessert, III Steven Kindle Stacey Lilliston Marcy Maguire Mark Miller Robert D. McCormick NJ CAR Executive Committee and Board of Trustees 2026 A. Andrew Shapiro...........................................................................Chairman Ed Barlow, III............................................................................Vice Chairman Michael P. DeSilva............................................................................ Secretary David Kull. ......................................................................................... Treasurer Jordan Wright.........................Regional Vice President (Northern Region I) Michael DiFeo.......................Regional Vice President (Northern Region II) Richard Malouf, Jr........................Regional Vice President (Central Region) Russel Abate.............................Regional Vice President (Southern Region) Ronald E. Baus, Jr................................................................Budget Chairman Eric Nielsen..........................................NJ CAR Insurance Co. Ltd. Chairman Richard A. DeSilva, Jr.....................................NADA Director for New Jersey Robert Larson...............................................NJ CAR Services, Inc. President Frank M. Pezzolla...............................................Truck Committee Chairman Judy Schumacher-Tilton..................................................CAR-PAC President Thomas DeFelice, III........................................................NextGen Chairman Laura C. Perrotta. ............................................................................. President PRESIDENT’S MESSAGE 6 The Fight Against Direct Sales Reignites in New Jersey BY LAURA PERROTTA CHAIRMAN’S MESSAGE 8 Teamwork Is More Important Than Ever BY A. ANDREW SHAPIRO NADA DIRECTOR’S MESSAGE 10 NADA Advocacy Update BY RICK DeSILVA, JR. 12 Why Every Dealership Needs a Safety Committee BY CHARLES RUSSO 14 From Pilot to Pipeline Building New Jersey’s Automotive Technician Workforce BY BRANDON JURAKHAN 18 Driving Forward What Governor Sherrill’s Leadership Lens Could Mean for New Jersey’s Auto Retail Sector BY GUILLERMO ARTILES, CHRISTIAN CALLEGARI, AND AZREEN REHMAN 20 What to Expect from the Sherrill Administration BY KEVIN P. HAGAN 22 Lessons from the 700Credit Data Breach Understanding Dealer Obligations When Vendor Systems Are Compromised BY BRAD MILLER 24 NJ CAR & Dealers Making a Difference Philanthropy, Highlights, and Grassroots 30 NJ CAR Recognizes Dealerships That Have Contributed to CAR-PAC 33 Thank You to Those Who Contributed to NADA PAC 34 Every Dealership Should Be a Member of NJ CARPOOL ©2026 New Jersey Coalition of Automotive Retailers (NJ CAR) | MBR Connect DBA The newsLINK Group LLC. All rights reserved. New Jersey Auto Retailer is published four times per year by The newsLINK Group, LLC for NJ CAR 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 NJ CAR, 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. New Jersey Auto Retailer is a collective work, and as such, some articles are submitted by authors who are independent of NJ CAR. 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. EDITOR: BRIAN HUGHES PUBLISHED BY MBR CONNECT DBA THE NEWSLINK GROUP LLC (855) 747-4003 Official Publication of
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?® John Kratsch, john.r.kratsch@bofa.com Chris McCawley, christopher.mccawley@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?® John Kratsch, john.r.kratsch@bofa.com Chris McCawley, christopher.mccawley@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.
For more than a century, New Jersey law required cars and trucks to be sold through an extensive network of franchised dealerships that competed for vehicle sales and service. In March 2015, after many months of NJ CAR lobbying against the push, the New Jersey Legislature passed legislation authorizing Tesla to sell directly to consumers. There were limitations, but the damage was done. Eleven years later, Tesla remains the only manufacturer that has secured an exemption from the New Jersey Franchise Practices Act (NJFPA). THE BATTLE CONTINUES IN 2026 The special treatment Tesla received in New Jersey enticed other manufacturers, such as Rivian and Lucid, to lobby for the same exemption so they can also sell directly to consumers. In fact, they opened galleries/studios in New Jersey, taking advantage of the accommodation awarded solely to Tesla, this time by the New Jersey Motor Vehicle Commission (NJMVC) as part of a settlement agreement in November 2018. Tesla agreed to not SELL at these locations, only to DISPLAY vehicles and refer consumers to one of their four (4) authorized sales locations to complete a purchase. This created a massive loophole that Tesla has exploited over the past eight years, where they opened several more galleries throughout the state. In addition to Rivian and Lucid, other EV-only brands tied to legacy manufacturers, including Scout and Afeela, are also advocating to sell directly to consumers and continuing to challenge states that use the franchise distribution model. Right now, their momentum seems by LAURA PERROTTA, President, NJ CAR The Fight Against Direct Sales Reignites in New Jersey PRESIDENT’S MESSAGE 6 NEW JERSEY auto retailer
focused on the western United States; however, New Jersey must remain vigilant and stand firm in advocating for the benefits of the franchise system. Keep in mind, Tesla’s introduction of its first EV got the ball rolling for them to receive special treatment. More than 10 years later, Tesla offers a few more models that are only available in a handful of colors. Meanwhile, the EV market has exploded, and New Jersey’s franchised dealers now offer dozens of BEV, plug-in hybrid and hybrid options that are available in virtually any color. LEGISLATION INTRODUCED AGAINST TESLA’S EXEMPTION The million-dollar question in New Jersey remains: With the evolution of the EV market (accounting for 11% of all vehicle sales in New Jersey last year), will the State continue its support for Tesla’s special exemption, discontinue the exemption, or expand the exemption to authorize other direct sellers? In May 2025, Assemblywoman Heather Simmons (D-3) introduced legislation removing the Tesla exemption, but it was never posted for a hearing during the 221st Legislative Session. It was reintroduced on January 13, 2026, and referred to the Assembly Consumer Affairs Committee. As of right now, the bill not been scheduled for a hearing. FIGHTING DIRECT SALES ACROSS THE COUNTRY NJ CAR continues monitoring direct sales efforts in other states. To date, direct sales advocates — such as Tesla, Rivian, and Lucid — have been electric vehicle (EV)-only manufacturers without a history of long-established production. The push by direct sellers is now being challenged throughout the country. Lawsuits filed by trade associations — and, in some cases, Volkswagen, Audi, and Porsche dealers in California, Florida, Virginia, and Colorado — are pushing back hard on plans by Scout Motors to engage in direct sales. They claim (and rightfully so, in my opinion) that Scout is affiliated with Volkswagen Group of America, and this connection does not allow Scout to bypass the franchise protection laws in those states by declaring itself a separate entity from Volkswagen to permit competition against Volkswagen’s own franchisees. Efforts are also being made by Rivian and Lucid to enact legislation in other states to allow them to sell directly to consumers. EMPHASIZING THE BENEFITS OF THE FRANCHISED SYSTEM NJ CAR believes the franchise system works best for New Jersey. Franchises benefit consumers by fostering intra- and inter-brand competition for sales and service. These locally owned businesses have invested hundreds of millions of dollars in the New Jersey economy and stand behind what they sell. Franchised dealers have also invested in an extensive network of service facilities for their customers and are vigorous advocates for warranty and recall repairs. Employing nearly 75,000 people (directly and indirectly) within the Garden State, New Jersey’s franchised new car and truck dealers contribute more than $45.4 billion to the State economy and $21 million to charitable causes in the hundreds of communities in which they operate. This is why NJ CAR fights so hard to protect the franchise system that benefits consumers and will continue fighting any effort to sell directly to consumers in New Jersey. Vehicle transportation is now a must-have for dealers everywhere. We think safe vehicle transportation should be too. With robust security features and our dedicated Marketplace Integrity Team, Central Dispatch has everything you need to move vehicles with more confidence. Central Dispatch helps you stay safe and master every move. Nissan of Fort Myers Mike Spinazze See how you can make every move safer at CentralDispatch.com/MasterEveryMove 7 NEW JERSEY auto retailer
CHAIRMAN’S MESSAGE by A. ANDREW SHAPIRO, Chairman, NJ CAR Teamwork Is More Important Than Ever The auto retailing industry, as always seems to be the case, faces many challenges. It’s critical that dealers, manufacturers, and other stakeholders work together to educate our elected leaders. All parties must advocate for both our businesses and our customers to support the work NJ CAR conducts on our behalf. Vehicle affordability; regulatory and legislative uncertainty; consumer anxiety about the economy; and other factors are creating an environment that’s preventing many consumers from purchasing a new vehicle. The goals I’ve laid out for myself (and the Coalition) during my tenure as NJ CAR Chairman are focused on positioning the industry to best meet all the challenges we may face. PROMOTING GREATER DEALER ENGAGEMENT NJ CAR staff do an incredible job supporting the legislative and regulatory efforts that benefit our businesses and consumers. Their staff also defends us against initiatives that would harm our businesses or consumers. Our voice is made much stronger when dealers are engaged with the Coalition on all fronts, including: • Adding all employee email addresses to our NJ CARPOOL grassroots efforts • Attending informational events and training classes • Purchasing products from NJ CAR Services • Utilizing the programs offered by NJ CAR’s endorsed providers • Supporting CAR-PAC and NADA PAC DEFENDING THE FRANCHISE SYSTEM Rivian, Lucid, Scout, and other direct sales advocates are lobbying to join Tesla in selling direct to consumers. It is imperative that we continue advocating for and defending the existing franchise model and distribution system. We must educate our elected officials about the value the franchise system brings to consumers and our local communities, highlighting why the direct sales model is so harmful to the car-buying public. WORKING WITH LEGISLATORS & REGULATORS NJ CAR has been hard at work since election day, developing relationships with the new Sherrill Administration, new legislators, and new leaders of the regulatory departments impacting our industry. We must focus on helping them understand the critical role we play as community leaders in hundreds of towns across New Jersey, and remind them of the tens of thousands of jobs we create and support. Some of the specific issues I’d like to focus on in 2026 include: • Collaborating with the Motor Vehicle Commission to make vehicle titling and registration more efficient • Working with the Legislature and State regulatory agencies, as well as our manufacturers, to bolster consumer protection • Ensuring OEMs abide by the provisions of the Motor Vehicle Open Recall Notice & Fair Compensation Act, which goes into effect April 1, 2026 Our Coalition is strong thanks to the 520+ new car and truck dealers and 38,000+ employees in New Jersey. We can be even stronger by having more people participate in NJ CAR’s grassroots efforts. Legislators need to hear from us when it comes to supporting or opposing legislation. We need to support the lobbying efforts of NJ CAR President Laura Perrotta; Executive Vice President & Chief of Staff Greyson P. Hannigan, Esq.; and Senior Vice President of Government & Regulatory Affairs Magdalena Padilla, Esq. In addition, every dollar spent by dealers on products and services provided by NJ CAR goes into funding the Coalition’s lobbying and communication efforts to benefit and defend the franchise dealer model. Investing in NJ CAR’s products and services is an investment in our dealer advocacy efforts in Trenton and the State policies that directly impact your business. I look forward to helping NJ CAR achieve its goals in 2026, and I hope all dealerships and their employees will lend their support. 8 NEW JERSEY auto retailer
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by RICK DeSILVA, Jr., Director for New Jersey, NADA NADA Advocacy Update TARIFFS On February 20, the Supreme Court struck down the sweeping tariffs that President Trump imposed using the International Emergency Economic Powers Act (IEEPA). The Court ruled that the IEEPA does not grant the president the authority to unilaterally create broad import taxes. The president has used IEEPA to impose reciprocal tariffs on nearly every country, using them as leverage in trade agreement negotiations. For the auto industry, most trade barriers remain in place because they were enacted under different legal authorities. Tariffs on steel and aluminum, and the 25% duty on light- and heavy-duty vehicles and parts, rely on Section 232 of the Trade Expansion Act of 1962. Existing treaties also remain in effect, including the U.S.-Mexico-Canada Agreement (USMCA) and bilateral agreements with South Korea, Japan, and the European Union, which impose a 15% tariff on vehicles and auto parts. After the Supreme Court decision, President Trump announced that he will set new, temporary 10% tariffs under Section 122 of the 1974 Trade Act. These tariffs would not apply to goods already subject to Section 232 tariffs, such as light- and heavy-duty vehicles. NEW RULE REPEALS EPA’S UNWORKABLE GHG STANDARDS On February 12, the Environmental Protection Agency (EPA) announced a final rule revoking what’s known as the Endangerment Finding. Because of this revocation, the EPA no longer has authority to regulate greenhouse gas emissions for motor vehicles. As a result, the EPA’s unworkable GHG standards are repealed. Opponents of the EPA rule have challenged it in court, which could delay its implementation. After the final rule was announced, NADA and ATD released a statement emphasizing that the new rule would help make vehicles more affordable, expand consumer choice, and increase ownership of newer, safer, and cleaner cars and trucks. CATALYTIC CONVERTER ANTI-THEFT LEGISLATION On February 10, the House Commerce, Manufacturing, and Trade Subcommittee voted to advance H.R. 5221, also known as the PART Act. The bill will now move forward to the House Energy and Commerce Committee for further markup and a potential vote. The PART Act enjoys bipartisan support. The PART Act was introduced in the House (H.R. 5221) and Senate (S. 2238) last summer. H.R. 5221 currently has 59 bipartisan cosponsors. Clearing this procedural hurdle brings this NADA and ATD priority one step closer to being included in the House Surface Transportation Reauthorization Bill. H.R. 5221 now heads to the full committee, where it was expected to be marked up in March. SO-CALLED “RIGHT TO REPAIR” LEGISLATION On February 10, the House Commerce, Manufacturing, and Trade Subcommittee advanced H.R. 1566, the “REPAIR Act”, to the House Energy and Commerce Committee by voice vote. NADA joined numerous stakeholders in a coalition letter opposing the REPAIR Act and also sent a letter of opposition to committee leaders. The REPAIR Act was the most controversial bill discussed during the subcommittee markup. It received support only from its sponsor, Rep. Dunn (R-Fla.). Several other subcommittee members expressed concerns regarding the legislation. The debate over H.R. 1566 concluded with the full committee chair, Rep. Brett Guthrie (R-Ky.), securing a commitment from Rep. Dunn to “address concerns with stakeholders.” H.R. 1566 now heads to the full committee. NADA is reaching out to ATAEs with members on the House Committee on Energy and Commerce, expressing strong dealer opposition to the bill. VOLKSWAGEN/SCOUT On January 20, a group of dealers from Volkswagen, Audi, and Porsche in Colorado filed a lawsuit in the Denver District Court against the state for issuing a dealer license to Scout Motors. The dealers’ suit claims that the Colorado Motor Vehicle Dealer Board misinterpreted state franchise law when it granted the dealer license in December, improperly allowing Scout to sell vehicles directly to consumers. This litigation in Colorado is distinct from lawsuits involving Scout in Florida and California. NADA continues to oppose Scout’s direct-to-consumer strategy nationwide by supporting legal efforts in California and Florida to protect the state franchise model and consumers. NADA will work closely with the Colorado Automobile Dealers Association (CADA) and its members to determine additional steps. NADA DIRECTOR’S MESSAGE 10 NEW JERSEY auto retailer
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Why Every Dealership Needs a Safety Committee by CHARLES RUSSO, Director of Risk Management & Insurance, NJ CAR Dealership environments are fast-moving and dynamic. Many stores find that operations run more smoothly when dealerships integrate safety into the routine — especially in service and parts departments. Establishing a safety committee and holding regular, focused safety meetings is a low-cost, straightforward way to strengthen the culture that keeps everyone working confidently and efficiently. WHY SAFETY COMMITTEES MATTER A dealership’s safety committee serves as an internal navigation system to reduce employee injuries. It provides guidance and direction for each department, allowing both management and employees to identify hazards, review incidents, and discuss solutions before an actual injury occurs. When meetings are consistent, they keep everyone focused and accountable. When they are not, safety tends to fade into the background until a serious claim, increased costs, or a compliance inspection forces attention back. MONTHLY MEETINGS KEEP SAFETY ON TRACK Monthly meetings provide the necessary guardrails to keep a dealership on the right track. Safety committee meetings do not have to be long; often, 30 to 45 minutes is enough. But to remain effective, they must include structure, engagement, and ongoing commitment. A typical agenda might consist of reviewing recent injuries or near misses; conducting dealership safety walkthroughs; discussing safety observations from employees; assigning follow-up actions for corrections or training; highlighting upcoming seasonal risks such as ice or heat; or inspections on PPE, vehicle lifts, fire extinguishers, and other first aid or lifesaving equipment. By meeting regularly, dealerships can track progress, prevent recurring incidents, and demonstrate to insurance carriers and regulators that safety is a top priority. PROVEN SUCCESS THROUGH THE ZERO INJURY PROGRAM (ZIP) Dealerships that have taken part in NJ CAR’s Zero Injury Program (ZIP) and established active safety committees get results. On average, participating dealers that meet monthly reduce employee injuries and near misses by 25-40%. Dealers that participate in ZIP have saved tens of thousands of dollars annually in premiums, including higher underwriting credits, reduced lost-time claims, and improved dividend eligibility. THE TOTAL COST OF INJURIES High claim activity increases insurance premiums, raises experience modification factors (X-Mods), jeopardizes future dividend payouts, reduces dealership productivity, and affects employee morale. When a key technician or service advisor is out of work, the dealership loses efficiency, customer satisfaction drops, and overtime costs rise to cover the gap. Working to eliminate accidents results in significant reductions in a dealership’s total cost of employee injuries. BUILDING ENGAGEMENT AND ACCOUNTABILITY A strong committee doesn’t just react to problems; it prioritizes safety by empowering employees to take ownership of their workplace. Safety advocates serve as the dealership’s guardians, modeling safe behavior, encouraging reporting, and keeping leadership informed about potential risks. When managers support the process, employees recognize that their health and safety are valued. A SIMPLE COMMITMENT THAT PAYS OFF Setting up a monthly safety committee meeting is one of the simplest, most effective steps a dealership can take to enhance its safety culture. It doesn’t require special software or large financial expenditures — only a desire and commitment to communicate effectively. Dealerships that do this consistently reduce injuries, lower costs, and achieve stronger insurance program results. Over time, a safety commitment creates a safer, more productive, and more profitable workplace. For assistance in setting up your high-impact safety committee, please contact Charles Russo, Director of Risk Management & Insurance at NJ CAR. He can be reached via email at crusso@njcar.org, by phone at (609) 883-5056, Ext. 314, or on his cell at (215) 356-9839. For additional support and resources, visit www.njcar.org. 12 NEW JERSEY auto retailer
From Pilot to Pipeline Building New Jersey’s Automotive Technician Workforce by BRANDON JURAKHAN, Workforce Development Manager, NJ CAR 14 NEW JERSEY auto retailer
Workforce development succeeds when programs move beyond ideas and pilots and begin delivering consistent, measurable outcomes. Over the past year, NJ CAR’s Technician Advancement Program (TAP) has evolved from a proof-of-concept training initiative into a scalable workforce pipeline addressing one of New Jersey’s most pressing labor challenges. Across the State, franchised dealerships are facing an increasing need to acquire an additional 12,500 entry- and mid-level automotive technicians. Advances in vehicle technology — coupled with an aging workforce and steady retirements — have widened the gap between employer demand and available talent. Traditional training pathways are often expensive, time-intensive, or disconnected from real dealership operations. TAP was created to meet this challenge head-on. The program was designed as an 18-week, 288-hour pre-apprenticeship program that blends classroom instruction with hands-on shop experience. Here, participants develop foundational technical skills to establish direct pathways into registered apprenticeships and full-time employment opportunities. ESTABLISHING PROOF OF CONCEPT The first TAP class, launched at Honda of Toms River, served as a critical test of the model. Ten students enrolled, and nine successfully completed the program. The majority of graduates secured employment in the automotive workforce shortly after graduation, validating both the instructional approach and strong employer demand. Additionally, the initial class confirmed a core principle underpinning TAP’s design: When financial barriers are removed and training aligns with real workplace expectations, student completion rates improve significantly. These early outcomes provided the confidence and data needed to responsibly expand the program. SCALING THROUGH STATE PARTNERSHIP A major turning point for TAP came in June 2025, when NJ CAR was awarded $664,500 through the New Jersey Department of Labor’s (NJDOL) Pre-Apprenticeship in Career Education (PACE) grant. This investment signaled the State’s confidence in TAP as an industry-aligned, outcome-driven workforce solution, capable of delivering measurable results. PACE funding has allowed TAP to scale without compromising accessibility. Offered at no cost to students, participants earn a weekly stipend during training, receive professional tools valued at $3,000 upon graduation, and have access to fully funded resources. By removing financial barriers, TAP expands access to individuals who may not otherwise be able to pursue technical training, while ensuring graduates enter dealership employment fully equipped and job-ready. Beyond funding, another source of the program’s growth is its statewide partnership model. By working closely with the NJDOL, local workforce boards, and county unemployment offices, TAP can scale into new regions while remaining responsive to local labor market needs. This coordinated approach allows NJ CAR to replicate the program across New Jersey without sacrificing quality. Auto Dealers: Start Earning From Every Supply Purchase! One dealer earned back $174,768 this year! 22 Florence Street • South Hackensack, NJ 07606 • Learn more at WASCOonline.com • 800-732-4511 VOLUME PRICING DISCOUNTS PURCHASING EFFICIENCY ANNUAL DIVIDEND contact us! For your FREE, NO-OBLIGATION ANALYSIS to discover how WASCO can significantly impact your dealership’s 2026 earnings. 15 NEW JERSEY auto retailer
This partnership framework is already producing results and currently has an active class underway at Route 22 Toyota, where 20 students are enrolled and progressing through the program. Ongoing collaboration with workforce partners and county unemployment offices supports recruitment. PROGRAM MATURITY AND INDUSTRY ENGAGEMENT Growth has been intentional rather than rapid. Over the past year, NJ CAR has taken a disciplined approach to strengthening partnerships to ensure long-term sustainability. One of the most important lessons learned from this effort has been the value of dealership involvement beyond simply hosting training. The program works best when dealership leaders actively participate as mentors. This engagement improves student learning once graduates are hired. Students who transition into dealerships where they already have relationships are more likely to remain employed and advance through apprenticeship pathways. TAP has also reinforced the importance of aligning pre-apprenticeship training with registered apprenticeship standards. The program is intentionally structured as a front-end feeder into formal apprenticeships, ensuring that participants move seamlessly from training into employment with clear advancement opportunities. THE DEEPER MEANING OF APPRENTICESHIP Technicians learn from one another on the shop floor and through shared problem-solving. TAP creates space for experienced technicians to pass on not just technical knowledge, but pride and professionalism. More than that, TAP strengthens the culture of the industry. By encouraging mentorship and shared responsibility, the program reinforces a sense of belonging among technicians where knowledge is shared, and everyone is invested in lifting the next person up. This culture is what turns a job into a career and keeps people in the trade. WHY TAP MATTERS TAP inspires hope by providing real opportunities to New Jerseyans. Dealerships are true landmarks within our communities. More than simply places to buy or service a vehicle, dealerships are economic anchors across the State. This program helps dealerships grow by building the next generation of technicians. TAP provides people with a pathway to stable, good-paying careers they can take pride in. LOOKING AHEAD For TAP in 2026, the focus shifts from validation to intentional expansion. NJ CAR plans to operate multiple TAP training camps statewide, enrolling at least 60 students across classes while continuing to grow its employer conglomerate. Priority will be given to geographic diversity, ensuring access to training in regions with the highest dealership demand. With employer interest secured and workforce partners engaged, additional classes are scheduled to launch this year, reflecting the program’s ability to grow strategically and bring training to communities where dealership demand is strong and access to industry-aligned education is critical. NJ CAR also plans to pursue additional funding, including the New Jersey Growing Apprenticeship in Nontraditional Sectors (GAINS) grant, to further support the registered apprenticeship component of the program. This next phase will deepen employer participation and reinforce long-term retention outcomes. As TAP continues to grow, its success remains rooted in partnership. The progress achieved to date from initial classes to a scalable statewide model has been made possible through the collaboration of industry and government partners. As we expand in 2026, NJ CAR invites dealerships and workforce boards across New Jersey to partner with TAP by employing graduates. Together, we can build a modern, sustainable talent pipeline that strengthens our industry and the future of New Jersey’s automotive workforce. OVER THE PAST YEAR, NJ CAR’S TECHNICIAN ADVANCEMENT PROGRAM (TAP) HAS EVOLVED FROM A PROOF-OF-CONCEPT TRAINING INITIATIVE INTO A SCALABLE WORKFORCE PIPELINE ADDRESSING ONE OF NEW JERSEY’S MOST PRESSING LABOR CHALLENGES. 16 NEW JERSEY auto retailer
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Driving Forward What Governor Sherrill’s Leadership Lens Could Mean for New Jersey’s Auto Retail Sector When Governor Mikie Sherrill took office in January, she stepped into an auto retail marketplace that is evolving quickly. Her record and campaign messaging suggest a governing style rooted in affordability, streamlined government, workforce development, pragmatic problem-solving, and a willingness to challenge powerful interests when fairness is at stake. The State’s auto retail industry faces several familiar challenges and accelerating change. Rising costs, workforce shortages, regulatory complexity, and the rapid expansion of electric vehicle policies are reshaping the marketplace. How these issues are addressed will have lasting implications for consumers, small businesses, and communities across the State. New Jersey’s shift toward electrification, driven by Advanced Clean Cars II (ACCII) and related clean energy mandates, is accelerating the adoption rate of electric vehicles. At the same time, the workforce demand for growing recruitment, training, and retention of skilled technicians has become a pressing challenge. Regulatory requirements add another layer of complexity, with licensing, franchise, and consumer-protection rules occasionally conflicting with updating laws or agency guidance. Additionally, dealers must compete in a market that includes global manufacturers, unlicensed vehicle galleries, and emerging mobility platforms — heightening the need for fair enforcement and consistent consumer protections. Gov. Sherrill approaches these challenges through a clear set of guiding principles that consistently shape her policy decisions. Affordability is central to her agenda. The Governor has consistently emphasized reducing costs for families and businesses; a principle she has applied across multiple policy arenas. In practice, this includes efforts to lower utility costs, implement a day-one freeze on electricity bills, and expand programs for first-time homebuyers. For the auto retail sector, this focus on affordability signals a sensitivity to policies that avoid unnecessary cost increases for consumers while ensuring compliance standards are clear and achievable for dealerships. Sherrill has also prioritized streamlining government and customer service. She has aimed to cut professional and business license approval wait times in half, overhaul by GUILLERMO ARTILES, CHRISTIAN CALLEGARI, and AZREEN REHMAN, McCarter & English, LLP 18 NEW JERSEY auto retailer
outdated systems, and improve customer-facing operations. The appointment of Kellie Doucette as New Jersey’s first Chief Operating Officer reinforces this goal. Doucette will lead modernization initiatives, coordinate across agencies, and ensure operational efficiency efforts, reducing administrative delays for businesses. Recognizing the growing need for skilled labor, the Governor has prioritized workforce programs and easing hiring challenges. This is particularly relevant as dealerships transition to EVs, which require specialized technician training. Her track record includes securing a $2 million federal grant for the New Jersey Manufacturing Extension Program (NJMEP) to strengthen defense and green energy supply chains, demonstrating her ability to fund programs that build local talent pipelines — a model that could extend to automotive training and workforce development. Sherrill has consistently demonstrated a practical, results-oriented approach, balancing ambitious policy goals with real-world implementation. While supporting broader clean energy initiatives, her “Save You Time & Money” agenda highlights this approach: eliminating new business registration fees, reducing MVC appointment wait times, and streamlining licensing approvals. Moreover, her commitment to fair competition ensures that licensing, franchise, and consumer-protection laws are applied consistently, protecting small dealerships from unfair practices by larger manufacturers or unlicensed operators. Across these priorities, Gov. Sherrill demonstrates a results-oriented style that blends efficiency, accountability, and practical problem-solving qualities, particularly relevant to the evolving automotive sector. As it relates to the State’s clean energy and transportation goals, the Governor has emphasized expanding community solar projects, using underutilized spaces for energy generation, and increasing incentives for electric vehicle adoption. While these policies may directly impact dealers and consumers, Sherrill frames any associated costs as long-term investments in public health, the environment, and the State’s economy. Her goal of balancing ambitious aims with practical implementation is evident: She supports electrification AND renewable energy, while simultaneously focusing on affordability AND regulatory clarity. Gov. Sherrill’s approach suggests she will provide a more pragmatic environment for industry stakeholders. We can expect a governor who balances environmental ambitions with market realities, emphasizes operational efficiency, supports workforce development, and is willing to challenge entrenched interests to protect fairness. For NJ CAR dealer members, this signals a period of policy continuity with an eye toward practical implementation alongside new opportunities. As the State’s marketplace continues its transition to electrification and advanced vehicle transition, Sherrill’s guiding principles will shape how dealerships navigate both the challenges and opportunities ahead. Natural Gas | Electricity Dedicated Support & Account Management Local Market Expertise & Insight Budget Certainty & Pricing Flexibility Tired of Unpredictable Utility Costs? Jay Thomson | 908.239.9644 jthomson@spragueenergy.com Rate Surprises Shouldn’t Cut Into Your Bottom Line Take Control of Your Energy Costs Today. 19 NEW JERSEY auto retailer
What to Expect from the Sherrill Administration by KEVIN P. HAGAN, Strategic Advisor, Public & Government Affairs Professional, Lobbyist, Princeton Public Affairs Group, Inc.
New Jersey began the new year with Democrats controlling the State Assembly, the State Senate, and the Governor’s Office. On Election Day this past November, Democrats increased their majority in the Assembly by five seats, giving them a 57-23 advantage, while Mikie Sherrill won an overwhelming victory as New Jersey’s next Governor. Democrats also hold a 25-15 majority in the Senate. This will provide New Jersey’s franchised new car and truck dealers with an opportunity to continue strengthening their relationship with the legislature and work with Gov. Sherrill to grow the industry while tackling challenges posed by federal policies from previous administrations. On January 20, 2026, Governor Mikie Sherrill inherited a political landscape plagued by affordability concerns, federal policy uncertainties, and tariffs that not only impact auto consumers and dealerships but also the entire State economy. Franchised new car and truck dealers in New Jersey must stand ready to work with the Sherrill Administration to meet the challenge of balancing affordability issues with common-sense policies while navigating an uncertain federal landscape. Affordability is a leading concern for New Jersey residents and businesses alike. New Jerseyans are wrestling with one of the highest costs of living in the nation, and dealerships are no exception. The tariffs imposed under the Trump Administration in 2025 add to this burden across the board. During her campaign, Gov. Sherrill acknowledged voters’ concerns about the high cost of living by centering her platform on energy and economic policy through the lens of cost relief to both residents and businesses that call New Jersey home. For new vehicle dealers, there is a need for balance that recognizes the consumer market has accepted electric vehicles but clearly shows the desire for options to remain for gas and hybrid models. This balanced approach for new electric vehicles must include the continued investment in charging infrastructure without fiscally straining New Jersey consumers and dealers. The Trump administration’s rollback of fuel economy emissions standards will force the Sherrill Administration and New Jersey Legislature to re-evaluate the State’s current policy on issues like the EV sales tax exemption phaseout while attempting to prioritize clean emissions and electric vehicle initiatives. In 2021, the New Jersey Department of Environmental Protection (NJDEP) adopted the Advanced Clean Truck (ACT) framework, requiring manufacturers of medium- and heavy-duty vehicles for model years 2025 and 2026 to sell an increasing percentage of zero-emission models annually, supporting the State’s zero-emission goals. This leads us to ask: Is it still possible to enforce the November 2023 NJDEP adoption of Advanced Clean Cars II (ACCII) in New Jersey? ACCII requires that vehicle manufacturers meet zero-emission vehicle (ZEV) sales targets, beginning with model year 2027 and ramping up to 100% ZEV sales by 2035. The Sherrill Administration must balance affordability and clean-energy goals. However, ACCII could limit consumer choice at a time when choice is essential to keeping cars affordable as electrification infrastructure is still being developed in New Jersey to address potential increases in demand. Shifting to clean vehicles should occur on a more flexible timeline that allows infrastructure to be built for the expected capacity. Rolling out the ACT framework also underscores the challenge of implementation before adequate charging stations are available for trucks, which would create a mandate that is both costly and impractical for dealers and the businesses they serve. Without recalibrating these policies to reflect current federal priorities and on-the-ground realities, New Jersey risks advancing goals that outpace the State’s capacity to achieve them. NJ CAR will continue to inform, educate, and collaborate with policy leaders on the significant role New Jersey’s franchised new car and truck dealers play by reinforcing the economic benefits they provide throughout the State. Just this past year, NJ CAR fought on behalf of dealership customers and employees to pass the “Motor Vehicle Open Recall Notice & Fair Compensation Act.” Signed by Gov. Murphy in September 2025, this law prevents manufacturers from shifting the financial burden of safety recalls onto local dealerships. Policies like this demonstrate that New Jersey leaders — such as Senate President Nicholas Scutari and Assembly Speaker Craig Coughlin — will support innovation in the industry, safeguard the economic stability of its dealer network, and continue to fight for New Jersey consumers. As the State considers future laws on energy policies, electric vehicles, and emerging technologies, it must continue to balance mandates without undermining the businesses that employ New Jersey residents and keep the State’s economy growing. 21 NEW JERSEY auto retailer
Lessons from the 700Credit Data Breach Understanding Dealer Obligations When Vendor Systems Are Compromised by BRAD MILLER, Chief Executive Officer, ComplyAuto BACKGROUND In December 2025, 700Credit confirmed that a data breach occurred within its systems between May and October 2025, affecting dealer customer data. The breach resulted in the unauthorized exposure of unencrypted personal information, including names, addresses and Social Security numbers, to third parties. According to 700Credit, the breach occurred when a third-party API (Application Programming Interface) was improperly exposed, allowing unauthorized access to sensitive data. The data was reportedly encrypted when stored, but because the third party obtained the API key, it was exposed to third parties in an unencrypted manner. FUNDAMENTAL DEALER OBLIGATIONS FOR DATA BREACHES Unfortunately, the automotive retail industry — like many sectors — has experienced numerous large-scale data breaches in recent months. This incident serves as an important reminder of dealers’ core legal obligations: Under federal and state law, dealers must: • Protect customer data maintained in their systems; • Preserve the privacy of customer information; and • Provide required notifications when breaches occur When a breach of customer data occurs, dealers have a federal duty to notify the Federal Trade Commission (FTC), as well as any state law obligations to notify affected consumers, state agencies, and other specified parties. For comprehensive information on related compliance requirements, visit www.complyauto.com for resources on the FTC Safeguards Rule, FTC Privacy Rule, New Jersey Data Privacy Act, and state data breach notification laws. UNIQUE CHALLENGES WHEN BREACHES OCCUR AT VENDOR SYSTEMS A critical complicating factor in this incident is that the breach occurred not within dealer-controlled systems, but at a third-party vendor. This distinction raises several important considerations for dealers. Dealers Retain Notification Obligations — Even When Breaches Occur at Vendors The FTC and all 50 states have enacted data breach notification laws, though they differ significantly. Many ComplyAuto dealers have utilized the ComplyAuto Data Breach Wizard to navigate their jurisdiction-specific legal obligations. This comprehensive tool guides users through potential federal requirements and obligations across all states. Critical Principle: In all cases, the dealer — not the vendor — bears the ultimate obligation to notify the FTC, state attorneys general, and affected consumers. However, vendors may handle these notifications on behalf of dealers if the vendor agrees to assume this responsibility. For agency notices, the relevant state and federal agencies permit the third party to file notices on the dealer’s behalf. When vendors send notices on dealers’ behalf, the communications should generally reflect that the dealer is issuing the notice. In other words, notifications should be sent “from the dealership”, even when the vendor manages distribution. Additionally, important distinctions may exist between consumer notices and those issued by the attorney general or a state agency. During this breach incident, dealers in different states had varying experiences with state agencies. Some attorneys general permitted 700Credit to file notices on dealers’ behalf, while others declined or only agreed after intervention from state automobile trade associations. 22 NEW JERSEY auto retailer
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