2025 San Diego International Auto Show Where the Cars Are the Stars® SPRING 2025 OFFICIAL PUBLICATION OF THE NEW CAR DEALERS ASSOCIATION SAN DIEGO COUNTY
BUSINESS LAW | LITIGATION | ESTATE PLANNING | REAL ESTATE | TAX | EMPLOYMENT PRACTICES FERRUZZO & FERRUZZO, LLP | A Limited Liability Partnership, including Professional Corporations FERRUZZO.COM | CALIFORNIA | TEXAS Business Transactions • Buy-Sell Agreements • Entity formation and structure • Shareholder Agreements • Manufacturer approvals and relations Employment Practices • Arbitration agreements • Wage and hour class action lawsuits • Private Attorneys General Act (PAGA) claims • Employee handbooks and compliance Estate Planning • Succession planning for business continuation • Family estate planning (wills and trusts) Tax • Property tax planning, audits and appeals • EDD audits Business Litigation • Consumer Legal Remedies Act lawsuits • Sales and Service Agreements • Disputes before the CA New Motor Vehicle Board • Manufacturer audit disputes • Hearings before the AQMD, RWQC and OSHA Real Estate • Dealership site acquisitions and lease agreements • Lender opinion letters An Automotive Industry Authority For over 40 years, Ferruzzo & Ferruzzo, LLP has been a leading authority in the Automotive Industry. Our team of auto-focused attorneys provide a spectrum of legal services to support every aspect of running and owning your new car and/or truck dealership. Solving Your Challenges, Together
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?® Crystal Moreno, crystal.e.moreno@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.
©2025 The New Car Dealers of San Diego (NCDA) | The newsLINK Group LLC. All rights reserved. San Diego Dealer is published four times per year by The newsLINK Group LLC for NCDA 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 NCDA, 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. San Diego Dealer is a collective work, and as such, some articles are submitted by authors who are independent of NCDA. 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. CHAIRMAN JOHN SEGAL........................... DISTRICT 3 VICE CHAIRMAN PAUL DYKE............................. DISTRICT 4 SECRETARY/TREASURER SCOTT KIEFNER..................... DISTRICT 6 PAST CHAIRMAN CHRIS GEORGE...................... DISTRICT 4 BOARD MEMBERS JENIFER BALL......................... DISTRICT 6 ANTHONY BENFATTI............ DISTRICT 1 MATT CRANDALL.................. DISTRICT 2 BANU GREWAL...................... DISTRICT 3 GREG KAMINSKY................... DISTRICT 4 JASON MOSSY........................ DISTRICT 5 MANNY SEDANO................... DISTRICT 5 JOHNNY SIEPKER................... DISTRICT 2 NCDA STAFF SCOTT WEBB PRESIDENT DIANA SWEITZER ACCOUNTING AND ADMINISTRATION MANAGER TYLER GRAY MARKETING & OPERATIONS MANAGER CLAUDIA OLVERA MEETING AND FACILITIES COORDINATOR ROBERT HEINTZ CALIFORNIA SALES TRAINING ACADEMY INSTRUCTOR Contents 10065 Mesa Ridge Ct. San Diego, CA 92121 Tel: (858) 550-0080 Fax: (858) 550-9537 ncda.com 8 24 Publication 13 | 2024-2025 Issue 2 | Spring 6 Chairman’s Letter By John Segal, Chairman, New Car Dealers Association 7 Welcome New Associate Member — Enterprise Mobility 8 2025 San Diego International Auto Show Where the Cars Are the Stars® 14 CNCDA Dealer Day 16 San Diego Automotive Technology Career Day 18 Politics, Protests and Posts What Employers Can (and Can’t) Do About Employee Speech in a Polarized Climate By Fisher Phillips 24 Preventing Slips, Trips and Falls By Celly Services Inc. 26 Navigating Facility Image Programs and Demands By Halbert Rasmussen, Shareholder, Scali Rasmussen 28 NADA Professional Series Training Comes to San Diego 29 San Diego Auto Outlook Snapshot First Quarter 2025 4 SAN DIEGO DEALER
LOS ANGELES / SAN DIEGO / SACRAMENTO / (213) 239-5622 //ScaliRasmussen.com Avoiding litigation when it’s possible. Protecting you when it isn’t. Take advantage of liability reduction provisions of the new PAGA reforms. Our Labor & Employment team is here to help! LEARN MORE
Chairman’s Letter By John Segal, Chairman, New Car Dealers Association Dear Dealer Members, This issue of San Diego Dealer highlights our premier event, the San Diego International Auto Show, Where the Cars are the Stars®. I want to take this opportunity to offer a big “thank you” to the manufacturers and dealers who helped make this year’s event so successful. I was on hand to see enthusiastic crowds engaging with exhibitors both inside and outside of the convention center, so it was no surprise to me to learn that more than 300,000 in-vehicle experiences took place among the 24 brands represented at this year’s show! Audience insights demonstrated once again that this incredible level of engagement translates into purchase influence. In fact, three quarters of attendees tell us that the Auto Show influences their vehicle purchase decisions, and more so than any other form of marketing. It’s important to note that not only is the Auto Show the most effective engagement opportunity for automakers and dealers, it’s also the primary fundraising mechanism for the New Car Dealer Association. With that, I urge you to review the insights presented in this issue, and to consider the unbeatable marketing opportunities as you have discussions with automakers and your fellow dealers about show participation. I’d also like to thank those dealers who took time out of their busy schedules to make the trip to Sacramento for Dealer Day. A record 14 representatives from San Diego dealerships met with assemblymembers and senators to discuss critical issues affecting our industry. If you were unable to attend Dealer Day, I urge you to take time to meet with representatives from your district. It is imperative that we stay engaged with our local officials so that they understand the importance of our business to the region’s economy and the significant role our dealerships play in their district’s short- and long-term economic health. Lastly, I want to say what a privilege it has been serving as your NCDA chairman. I am extremely proud of the work the NCDA does on behalf of San Diego County dealers. With the ever-changing landscape of our industry, the NCDA continues to advocate for dealers on issues that affect our day-to-day business. It’s been a pleasure to work with my fellow board members, and I thank them for their dedicated service. Sincerely, John Segal 6 SAN DIEGO DEALER
WELCOME Enterprise Mobility manages the Enterprise Rent-A-Car, National Car Rental and Alamo brands, all of which consistently rank above the industry average for customer satisfaction. They are proud to offer transportation solutions right where people live and work, with rental locations conveniently located within 15 miles of 90% of the U.S. population. With an unparalleled neighborhood network, they’re positioned to meet the needs of business and leisure customers alike. To learn more, visit the Enterprise Mobility website at www.enterpriseholdings.com. You can also reach out to Chase Rogers, the replacement sales manager, by calling (208) 440-6289 or emailing chase.r.rogers@em.com. Stay compliant. Protect your bottom line. We have a combined 95 years of experience helping automobile dealers comply with EPA, IIP and OSHA regulations. Let our experts show you a new approach for managing compliance at your dealership. (562) 704-4000 cellyservices.com Spend less time on compliance issues and more time running your dealership. LET’S TALK! New Associate Member — Enterprise Mobility NCDA.COM 7
The San Diego International Auto Show (SDIAS) opened its doors on Dec. 28 to enthusiastic crowds and drew tens of thousands of car buyers to the San Diego Convention Center throughout its five-day run. And those car buyers were treated to a significantly enhanced show experience: » 33% increase in the number of vehicle brands represented at the show, including 3 first-time exhibitors. » 6 times as many brands offering thrill rides on the expanded EV Test Track. » 9 brands offering street test drives of 24 different gas, hybrid and electric vehicles. » Record 38 different plug-in models from 21 brands on display or in ride-and-drives. » A dozen debuts and new releases on display in San Diego for the first time. PARTICIPATING BRANDS 2025 San Diego International Auto Show Where the Cars Are the Stars® 8 SAN DIEGO DEALER
During the show, the San Diego Convention Center was transformed into the largest new vehicle showroom in California, as attendees flooded the show floor to check out all-new vehicle debuts, comparison shop various makes and models, learn about the latest new technology and even take test drives/rides of new models. And compare they did, as the San Diego International Auto Show generated more than 300,000 in-vehicle consumer experiences. Spend some time on the show floor and it becomes clear why our attendees tell us that the auto show influences their vehicle purchases more than any form of advertising, social media or news coverage, and even more than advice from friends and family: » 74% of attendees indicate that the Auto Show influences their vehicle purchase decisions. » 30% added brands to their purchase consideration lists that they weren’t considering before attending the show. » 20% removed brands from their consideration lists because they weren’t at the show. Not only do our show insights make it clear that car buyers are making purchase NCDA.COM 9
10 SAN DIEGO DEALER
It’s also important to note that it was the first time driving an EV for 32% of those who took one for a test drive, and it was the first time riding in an EV for those who experienced the EV Test Track. This is all confirmation that the SDIAS is the best opportunity for brands to engage the next generation of EV buyers, and that the auto show will continue to lead San Diego’s transformation to an all-electric future as the largest and most important EV event in the region. Electric Avenue moved directly adjacent to the EV Test Track this year, providing an even better opportunity for consumers to compare EVs side-by-side and have questions answered by EV experts. Electric Avenue featured a variety of plug-in vehicles from Acura, Cadillac, Genesis, GMC, Honda, Hyundai, Jeep, Lexus, Lucid, Kia, Subaru, Volkswagen and Volvo. Several manufacturer product specialists and volunteers from the Electric Vehicle Association were on hand to help consumers understand the EV value proposition, and companies in the energy and charging space rounded out the exhibit. While consumers are excited to see the wide variety of vehicles and brands on display, our attendee survey also demonstrates that they’re vocal when it comes to brands not represented at the show. Through comments in the survey, car buyers tell us again and again that vehicles they can’t see at the show are pushed further down, and often entirely off of their consideration lists in favor of vehicles that are present on the show floor or in test drives. With growing inventories and increased sales competition, the SDIAS is prepared to help dealers move the sales needle. To incentivize absent brands to return to the show, we’ve developed affordable, turn-key packages for OE regions and dealer groups that maximize ROI and minimize extra work. These packages can include everything from exhibit space, carpet and branded exhibit properties, to vehicle prep and logistics, product specialists and lead-generation. And support isn’t limited to static displays, as we can deploy resources for dealer-supported ride and drive programs. Acura, Honda, Ineos Grenadier, Lincoln, Mitsubishi and Stellantis dealers have utilized many of these services over the past few shows, with great success. decisions while attending the SDIAS, but they also demonstrate that attendees are actively shopping for vehicles. 24% of SDIAS attendees indicate that they’re planning to make their next vehicle purchase within 6 months of attending the auto show, and an additional 24% within a year. Dealers know how influential test drives can be, and that holds true at the SDIAS. Brands offering outdoor test drives of EV, PHEV and gasoline vehicles this year included Chevrolet, Chrysler, Dodge, Fiat, Jeep, Kia, Lucid, Ram and Volkswagen, while our expanded indoor EV Test Track, powered by LENZ Charging, offered EV thrill rides from Cadillac, Chevrolet, Ford, Nissan, Toyota and Volvo. » 43% of EV Test Track participants were introduced to a new vehicle that they had never considered before. » 37% of street test drive participants were introduced to a new vehicle that they had never considered before. And speaking of EVs, this year’s show was fully charged with a record 38 different EV models from 21 brands on display or in ride-and-drives. That’s far more EV brands and models than appear at EV-only events, and contributes to the influence the auto show has on EV consideration: » 56% of SDIAS attendees are more likely to consider buying an EV after test driving one at the show. » 54% of SDIAS attendees are more likely to consider buying an EV after experiencing the EV Test Track. NCDA.COM 11
To enhance the show-going experience for attendees, feature attractions were popular once again this year. The GoldenBoy Mobility Zone featured a wide variety of accessible vehicles and adaptive equipment to help those with physical challenges, and the Sunday’s Family Day offered free admission to all children 12 and under to enjoy the many kid-friendly activities at the show. Nissan returned to sponsor our Military Appreciation program, which included the distribution of thousands of complimentary tickets to active and recently retired military personnel from their San Diego stores, in addition to supporting our military discount offers. Once again this year, media coverage of the show was exceptional, with local media outlets providing outstanding coverage throughout the entire run of the show. » Live and recorded TV news segments from KUSI, Fox, CBS, ABC, NBC, etc. throughout the run of the show. » More than 13 million gross impressions from TV, radio and digital marketing campaigns. » Over $500k of on-site and on-air broadcast media promotions. The San Diego Auto Show has always enjoyed a great relationship with local media, who understand that supporting the dealer community through auto show coverage parlays into success throughout the year for all concerned. Thank you to all of our valuable media partners for your continued support. What Did Car Buyers Like About This Year’s San Diego International Auto Show? “There is no other opportunity I know of to see so many different manufacturers in one place to compare head-to-head while information is fresh in my mind. In the past, I bought TWO cars immediately after the auto show and enjoyed photographing the invoice sticker to tell the dealer exactly what I wanted!” “Riding along in the EVs that were featured was an excellent experience and opportunity to see their performance and capabilities. I would have loved to be able to drive them as well. This was the highlight of the Auto Show. My daughter leased a new Ford Mach-E the next day after riding in one at the show!” “I don’t have time to go and sit down at dealerships to look at new cars, so this show helps me see what I like and don’t like in certain brands/cars. If I don’t see them at the show, I most likely won’t consider going to their dealership during my purchase.” “I liked the ability to drive a fully electric vehicle on the local public streets so you can compare it to a traditional internal combustion engine vehicle.” “I was pleasantly surprised at the luxury of Genesis! I am no longer considering Tesla, which had no cars at the show.” 12 SAN DIEGO DEALER
CNCDA Dealer Day 14 SAN DIEGO DEALER
A record 14 representatives from New Car Dealers Association San Diego County spent valuable time in Sacramento in March visiting with state Assemblymembers and Senators during California New Car Dealers Association Dealer Day. Dealers and legislators were able to engage in meaningful discussions about critical issues facing the retail automotive business, including the detrimental impact CARB’s ACC II mandate will have on consumer choice and state and local tax revenue starting with the 2026 model year. A highlight of the trip was Manny Sedano’s acceptance of the coveted CNCDA Chairman’s Award during the annual meeting of the members. NCDA.COM 15
San Diego Automotive Technology Career Day On Feb. 28, the CNCDA Foundation and the New Car Dealers Association San Diego County hosted the San Diego Automotive Technology Career Day at Palomar College. This was the second year for this event, which was created by the CNCDA Foundation, in cooperation with the NCDA, for dealers to engage local high school and college auto tech students, and to help fill the labor pipeline with future auto technicians for San Diego County’s new car dealerships. This high-energy event brought together auto industry professionals (including OEs and dealers) who were excited to introduce students to rewarding and lucrative career opportunities in dealership service departments. After an inspiring keynote address, students rotated through a variety of breakout sessions that taught them lessons in everything from specific auto technologies to soft skills. After lunch, which included an informative panel discussion, both high school and college students attended the career fair portion of the event, where they were able to explore how they can join a quickly evolving industry. High schoolers also learned about the certificate and degree opportunities at local colleges to help shape their individual career paths. More than 350 high school auto tech students from all corners of San Diego County attended the event, which included college participation from Palomar College, MiraCosta College, San Diego Miramar College and Southwestern College. Manufacturer support came from Kia, Hyundai, BMW and Ford, and participating dealers included Audi Carlsbad, Kearny Mesa Hyundai, Kia/Hyundai/Mazda of El Cajon, Norm Reeves Toyota San Diego, North County Ford, Sunroad Automotive and Toyota of El Cajon. 16 SAN DIEGO DEALER
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Politics, Protests and Posts What Employers Can (and Can’t) Do About Employee Speech in a Polarized Climate By Fisher Phillips As political tensions surge and employee expression spills into every corner of the modern workplace, employers are finding themselves caught in the crossfire. From off-hours protests to heated workplace debates and viral social media posts, the question for us isn’t just whether speech is free, but whether it’s job‑protected. With laws, rights and risks swirling around every conversation, t-shirt, post and “like,” it’s time for a clear-eyed guide. Here’s what your business needs to know about navigating employee speech in various scenarios, both on and off the clock. SCENARIO 1: AN OFF-DUTY RANT GOES VIRAL An employee posts a politically charged rant on their personal social media account over the weekend. It’s not about work, but it causes public backlash. Legal Analysis Private-sector employers are not bound by the First Amendment’s free speech protections, which only restrict government action. That said, employers may not be able to discipline off-duty speech with total impunity. Several states — including California, New York and Colorado — have statutes protecting employees from retaliation for lawful off-duty conduct. Minnesota, Connecticut, Louisiana, South Carolina and Wyoming are among the states that specifically protect off-duty political activity. These laws may prevent employers from firing or disciplining employees for expressing their personal views unless those views have a clear, material impact on the business. Even without a directed state law at issue, the federal National Labor Relations Act (NLRA) could also provide your employees with protection. If the social media post relates, even indirectly, to the employee’s terms and conditions of employment, it may qualify as protected “concerted activity.” This is especially true if the post touches on workplace issues shared by coworkers (e.g., wages, scheduling, discrimination). Under recent interpretations, the National Labor Relations Board (NLRB) has cast a wide net over what counts as protected speech, and this protection applies to non-union workplaces as well. Employer Guidance • Check local laws first. Understand whether your state limits employer action on off-duty political or personal speech. These laws may surprise you, as some prevent employers from terminating the employment of someone who posts even clearly offensive posts unless you can show the communication caused direct business harm. • Evaluate the workplace impact. Determine whether the post caused operational disruption, reputational damage or significant internal strife. Without the previously stated, discipline may not be legally or strategically justifiable. • Enforce policies neutrally. Whether the post supports or opposes a cause, the focus should be on the impact, not the ideology. Selective enforcement invites discrimination claims. • Document the decision-making. If you discipline, ensure documentation ties the action to the legitimate workplace impact you considered. Avoid using inflammatory or subjective language. • Consult legal counsel. These decisions often exist in legal gray areas, and public scrutiny can escalate quickly. Getting a second opinion can help de-risk the response. 18 SAN DIEGO DEALER
SCENARIO 2: POLITICAL DEBATE AT THE WATER COOLER Two employees get into a heated political argument in the breakroom. Other workers complain that it’s creating a hostile or toxic environment. Legal Analysis Political debates in the workplace are becoming more common — and more combustible. While the NLRA protects employees who engage in conversations about workplace conditions (regardless of whether the employees are members of a labor union), the law does not give employees free rein to disrupt the workplace. Employers may lawfully restrict political speech that creates a toxic atmosphere, distracts from productivity or can be appropriately characterized as harassment or bullying. That said, you must tread carefully. If employees are discussing matters that relate to shared working conditions, such as diversity policies, unionization or workplace safety, their speech may be protected. Discipline in that context could trigger an unfair labor practice charge. The challenge is distinguishing between disruptive or discriminatory conduct (which may be regulated) and protected activity (which may not). If the discussions relate to other protected activity (complaining about discrimination or harassment), then fair employment laws might be triggered. Employer Guidance • Set clear boundaries in your code of conduct. Your policies should emphasize respect and civility in all workplace interactions, including political conversations. Make it clear that hostile or demeaning speech won’t be tolerated, regardless of the topic. • Train managers to intervene early and neutrally. You should teach supervisors to spot the line between a healthy discussion and a volatile one. They should not express political views themselves or allow situations to escalate. • Focus on conduct, not content. If you take action, ensure it’s about the behavior — disruption, intimidation, name-calling — and not the opinion expressed. • Be consistent. If you address one type of political conflict but ignore another, you create the risk of a discrimination or retaliation claim. NCDA.COM 19
SCENARIO 3: WORKERS PLAN A WALKOUT Employees organize a walkout in support of a political movement, similar to the Day Without Immigrants or recent global protest days. Legal Analysis The legality of employee walkouts hinges on the purpose behind the protest. If the protest is purely political and unrelated to workplace issues, such as a walkout opposing foreign policy or supporting a national election candidate, it likely falls outside the protection of the NLRA. In those cases, employers may treat the absence as unexcused and impose discipline under normal attendance policies. However, if the walkout is tied to workplace issues or advocacy for better working conditions, it could be protected as “concerted activity.” For example, employees walking out to protest workplace discrimination or to express solidarity with a national labor strike may fall under NLRA protection, even if your organization is not unionized. The NLRB under the Biden administration showed a growing willingness to connect national issues to local employment conditions, particularly under a broad reading of employee rights. We do not expect this trend to continue under the Trump Board once it regains a quorum. Employer Guidance • Determine the purpose of the protest. Ask whether this is political advocacy or workplace-related activism. If there’s a link to workplace terms, protection may apply. • Avoid snap discipline. Even if a walkout seems unprotected, consult counsel before issuing discipline. An inaccurate legal assumption can backfire. • Reinforce your attendance and conduct policies. Make sure employees understand how protest-related absences will be treated in advance. Apply policies consistently. • Prepare a contingency plan. If you anticipate workplace disruptions, line up backup coverage, communicate clearly and debrief afterward to reset expectations. 20 SAN DIEGO DEALER
EPICBROKERS.COM ©2024 Edgewood Partners Insurance Center. All rights reserved. | CA License: 0B29370 EPIC Insurance Brokers & Consultants is proud of its partnership with more than 300 California dealerships and is the CNCDA’s only licensed broker for health insurance and employee benefits. As the dealers’ consultant, experience what EPIC can do for you, including: • A team producing significant results with decades of experience understanding the specific needs of dealerships • Fully insured and unique alternative funding options to best fit your needs and generate the best possible costs • Full compliance services and HR support for your team LEARN MORE ABOUT OUR SERVICES BY CONTACTING: Alison McCallum (949) 422-6431 alison.mccallum@epicbrokers.com SCENARIO 4: DRESS CODE DISPUTES An employee wears a shirt with a political slogan, and another wears a Black Lives Matter lapel pin. Your dress code prohibits all messaging. Additionally, uneven enforcement of dress codes — allowing purportedly patriotic or humorous slogans but prohibiting political or social messages — can expose employers to legal risk. If messaging restrictions disproportionately impact one group of employees or one viewpoint, a discrimination claim could follow. Employer Guidance • Reassess your policy. If your dress code prohibits all messaging, make sure it’s uniformly enforced and tied to a legitimate reason, such as safety, customer expectations or professionalism. • Apply it evenly. You can’t allow some messages and ban others based on subjective content. If you prohibit “BLM” attire, you should also prohibit “Back the Blue” messaging, for example. • Avoid knee-jerk enforcement. If the messaging relates to labor rights or workplace activism, call your lawyer before issuing discipline or sending someone home. • Communicate the rationale. When enforcing the policy, explain the focus is on maintaining a distraction-free, respectful environment — not silencing ideas. NCDA.COM 21
SCENARIO 5: EMPLOYEE DEMANDS “FREE SPEECH” RIGHTS An employee challenges a policy restricting political speech, claiming it violates their First Amendment rights. Legal Analysis One of the most common misunderstandings among employees is believing the First Amendment protects their speech at work. While that may apply in public-sector employment, it has no direct application in the private sector. However, some states provide narrow protections for off-duty political activity, especially when the speech has no connection to the workplace or employer. Still, the law does not give employees carte blanche to say whatever they want in the workplace or on platforms where their employer may be impacted. You retain the right to impose reasonable restrictions on workplace speech to preserve productivity, safety and a respectful environment. It’s a balancing act between creating space for diverse perspectives and maintaining order. Employer Guidance • Educate employees. Consider issuing FAQs or training to clarify that the First Amendment doesn’t apply to private workplaces, and explain how your policies balance expression with workplace cohesion. • Enforce policies neutrally. Don’t suppress one viewpoint more harshly than another. Fair and even application is your best legal defense. • Refine your messaging. When enforcing restrictions, emphasize business impact, not ideology. Reiterate that all employees must follow the same rules regardless of beliefs. • Respect protected off-duty conduct. If your employee’s speech occurred off-hours and in a jurisdiction with political activity protections, proceed with caution. Seek counsel before taking action. 22 SAN DIEGO DEALER
SCENARIO 6: A MANAGER MAKES POLITICAL STATEMENTS TO STAFF A supervisor frequently shares their personal political views in team meetings. Some employees feel pressured or uncomfortable. Legal Analysis When a manager shares political views with those who report to them, legal risks multiply significantly. Even if the statements aren’t explicitly coercive, the power dynamic can create the perception of pressure, especially if employment decisions follow. Employees may feel silenced or retaliated against for not agreeing with their manager’s views. From a legal perspective, such speech could open the door to claims of discrimination, retaliation or hostile work environment, especially if the political commentary touches on race, religion, gender identity or national origin. Managers are held to a higher standard because their words are presumed to carry the weight of the company. Employer Guidance • Train your leadership team. Make it clear that managers should avoid discussing personal politics with subordinates and must never appear to favor or disfavor anyone based on political alignment. • Create reporting channels. Ensure employees can safely raise concerns about inappropriate speech by supervisors without fear of retaliation. • Respond swiftly. If a complaint arises, investigate promptly and document the findings. Corrective coaching is often sufficient, but more serious consequences may be needed in egregious cases. • Model the right tone. Culture starts at the top. Your leadership team sets the example for respectful, inclusive communication across the company. WHAT EMPLOYERS SHOULD DO NOW The legal landscape surrounding employee speech is more complex than ever. While you have significant discretion to shape workplace norms, that discretion is bounded by state laws, federal protections and public expectations. A one-size-fits-all approach won’t cut it. Here’s what your business can do now to stay out of the crossfire: • Audit your policies on political expression, conduct, social media and dress code. Make sure they’re clear, enforceable and compliant. • Train managers to handle political tensions respectfully and neutrally — and avoid injecting their own views into the workplace. • Monitor enforcement for bias. Whether it’s discipline, messaging or investigations, make sure all actions are consistent across the board. • Prepare for protest-related absences. Have a contingency plan for potential walkouts or disruptions linked to national events. • Get legal support early. When in doubt, loop in your counsel, especially in high-visibility or legally gray situations. CONCLUSION Make sure you are subscribed to Fisher Phillips’ Insight System to get the most up-to-date information on the issues discussed in this insight. If you have questions about these issues, please contact your Fisher Phillips attorney or any member of our Labor Relations Group. Also, make sure to visit our New Administration Resource Center for Employers to review all our thought leadership and practical resources. This article was originally published on fisherphillips.com. To view it, scan the QR code. https://www.fisherphillips.com/en/news-insights/politics-protests-and-posts.html NCDA.COM 23
By Celly Services Inc. BACKGROUND Workplace falls are some of the most common causes of injuries and fatalities in the workplace. According to the Occupational Safety and Health Administration (OSHA), falls account for about 15% of all accidental deaths and 25% of all nonfatal workplace injuries in the United States. The consequences of workplace falls can be devastating and expensive. Employees may suffer from physical pain, emotional trauma, disability or death, and this may have a chilling effect on the workplace environment. Slips Slips occur when there is little to no traction between the footwear and the walking surface. Since friction is not adequate to keep feet from slipping, a person can lose their balance. For example, a mechanic may slip on fluids from the car they are working on. Trips Trips happen when a person’s foot hits an object or missteps on an uneven surface. This can disrupt a person’s balance and make them lose their footing. For example, a detailer may trip on a hose lying on the ground. Falls Falls can happen to anyone when they stumble and fall too far off their center of balance. For example, an employee may fall from a ladder while replacing a light bulb. According to OSHA, falls can be classified into two types: 1. Fall at the same level. It occurs on the same working surface. 2. Fall to a lower level. It takes place below a person’s working surface, common when working at heights. Note: OSHA requires that fall protection be provided at elevations of 4 feet in general industry workplaces. In California, fall protection is required at a height of 30 inches or more in general industry workplaces. Cal/OSHA regulations require that employers must provide fall protection systems for employees working at the heights previously stated. Preventing SLIPS, PREVENTION STRATEGIES It is essential to prevent workplace falls by following effective safety measures and practices. Here are some good practices to minimize the risk of slips, trips and falls in the workplace. Risk Assessment Identify and eliminate any potential hazards in the work environment (i.e. wet floors, uneven surfaces, clutter, loose wires or poor lighting). Be aware of any signs, barriers or guards put in place to warn employees of any remaining hazards. Proper Equipment Use appropriate equipment for the task and the height. Ensure that the equipment is in good condition and meets the safety standards. Inspect and maintain the equipment regularly and notify your manager of any damaged or defective parts. This includes appropriate footwear with slip-resistant soles. Training Become educated on the risks and consequences of falls and the best practices to avoid them. Seek instruction on how to use the equipment safely and correctly. Older adults are at greater risks of falling as balance and vision decline with age. Review emergency procedures in case of a fall incident and be familiar with where rescue and first aid equipment are available. Culture and Communication Report any hazards or incidents to your manager and suggest any improvements. Establish clear communication channels for reporting and addressing safety concerns. Review and Update Evaluate the effectiveness of the IIPP periodically. Make any necessary adjustments. Give feedback to your supervisor or manager so that they can update the fall prevention program. The best advice for avoiding workplace hazards is to always be aware of your surroundings. REC is a good three-step method to prevent slips, trips and falls in the workplace. Recognize the Hazard Recognize and identify the hazard that could lead to slips, trips and falls and report it to your manager. Evaluate the Hazard Evaluate the hazard and determine what level of risk it presents. Control the Hazard Follow safety procedures, use the proper equipment to control hazards and report them to your manager. 24 SAN DIEGO DEALER
GOOD HOUSEKEEPING PRACTICES Regular Cleaning Schedules Follow daily, weekly and monthly cleaning tasks set by your manager. Waste/Clutter Management Do not let materials and supplies that are no longer needed accumulate. If it is not needed, get rid of it. Spill Response Procedures Familiarize yourself with spill response protocols, including immediate containment and notification procedures. Clear Aisles and Passageways Ensure that all aisles and emergency exits are free from obstruction. Storage Practices Store all materials properly on designated shelving or in cabinets. Store heavy items on lower shelves to prevent lifting injuries. Regularly review storage areas to remove unused items and excess clutter. Tool Accountability Return tools to their designated places after use. Follow the check-in/check-out systems necessary to track tool usage and accountability. Audits and Inspections Be prepared for management audits to ensure compliance with housekeeping standards. Prompt corrective actions must be undertaken and reported to management to document the following safety audits. Report all accidents related to slips, trips and falls to management so they can investigate and undertake corrective measures to prevent recurrences. CALL TO ACTION • Avoid Rushing: Do not hurry or take shortcuts — walk deliberately with sure footing to prevent trips and falls. No running or walking too fast. Avoid distractions; keep your eyes on the path ahead. • Wear Nonskid Shoes: Use nonskid shoes that meet ASTM standards when working on wet, oily or greasy surfaces. Wear sensible shoes that provide good traction. • Stay Alert: Keep your eyes on the path ahead and avoid carrying items that block your view. Unexpected hazards, such as an electrical cord left by the construction crew working in the area, may create a trip situation for the unwary. • Clean Spills Promptly: Immediately clean spills and greasy spots with absorbent material. Icy patches should be covered with sand or other available slip-mitigating material. Use the mop bucket in the shop area to clean your area of all slippery material, such as lubricants or oily water. • Warning Signs for Spills: Locate the Wet Floor signs and cones in your area. Use them to alert others of slippery conditions and contact your custodial services to clean spills promptly. • Caution on Wet Surfaces: Walk slowly on wet floors with short, careful steps and toes slightly outward. Use fresh, clean mop water with a daily-added degreaser, and replace dirty water promptly. • Ensure Adequate Lighting: Maintain proper lighting by replacing burnt-out bulbs and keeping walkways clear, especially in marginally lit areas. Keep aisleways and passageways clear. • Use Ladders Safely: Check that ladders are in good condition, clean and free of oil or grease. Report and set aside any damaged ladders. Do not use boxes, milk crates, pallets and chairs as stools. Only use ANSI Type I or II rated step ladders and step stools in the work environment. • Navigate Stairs Carefully: Step securely from one stair to the next; report any worn carpets or broken steps and avoid running or jumping on stairs. Keep stairways clear and hold handrails. CONCLUSION Following preventive measures significantly reduces slip, trip and fall risks. Using shop safety shoes that meet ASTM guidelines is integral to preventing slips, trips and falls. Regular training, inspections and collaboration between employers and employees are key components of an effective fall prevention program. TRIPS FALLS and NCDA.COM 25
Factory “image programs” are structured in various ways, but they often tie significant economic consequences to compliance. Dealers must evaluate these programs not only as capital expenditure decisions, but also as strategic and legal commitments. INCENTIVE-BASED FACILITY REQUIREMENTS Some manufacturers’ incentive programs condition margin or bonus payments on participation in and progress toward facility renovations. These payments, which may be tied to performance metrics such as sales effectiveness, customer satisfaction or brand standards compliance, are often critical to a dealership’s bottom line. In many cases, however, the most heavily weighted or even gatekeeping KPI is the dealer’s compliance with the brand’s image requirements, including completion of a renovation of the facility program. Dealers who do not enroll or who fall behind schedule risk losing substantial incentive payments. In some cases, manufacturers have sought to charge back funds previously paid based on facility-related commitments. ASSISTANCE AND PLANNING PROGRAMS Some manufacturers offer assistance with renovation costs. These programs vary significantly in scope and structure. At one end of the spectrum are cost-sharing models with fixed-dollar contributions; at the other are programs that reimburse based on some fixed amount per vehicle retailed, up to a cap. Some OEMs have financing offers that also help induce dealers to take the plunge. Most programs assign consultants or approved architects to conduct site evaluations, develop image-compliant plans and oversee execution, with multi-phase approval processes and strict oversight. MANUFACTURER DEMANDS AND ENFORCEMENT PRACTICES Beyond programs based on the “carrot,” dealers may face the “stick” in the form of demands from manufacturers. These can include pressure to enroll in a facility program, show progress on an existing commitment or complete renovations by a specified date. The consequences for non-compliance vary. In some instances, manufacturers suspend or reduce incentive payments. In more aggressive scenarios, they may threaten termination of the franchise agreement based on alleged facility non-compliance. FRANCHISE LAWS When it comes to facility demands, franchise statutes in California and many other states impose clear limits on aggressive manufacturer (“stick”) conduct. The law regulating dealer franchise termination prohibits terminations absent good cause, even if the facility condition is below the standard. Several California statutes limit what facility requirements can be imposed and necessitate that the requirement is reasonable. A “grandfathering law” bars manufacturers from requiring renovations more frequently than a set interval. The laws are less clear on the incentive side of the issue. This is understandable given the difficulty of regulating the right of both sides to freely bargain with one another. However, there are several laws, including the grandfathering law, that apply even where the incentive programs are involved. STRATEGIC CONSIDERATIONS Before committing to any facility image initiative, dealers should evaluate: • The net economic impact of incentive payments versus renovation costs. • The enforceability of program commitments under applicable state franchise laws. • The manufacturer’s track record of program administration and flexibility. • Whether proposed renovations align with long-term dealership strategy, ownership tenure or exit plans. In some situations, participation in a facility program may make strategic sense, particularly if the incentive structure offers short-term ROI or positions the dealer favorably in the event of a future sale — many facility programs offer hefty boosts to allocation. In other cases, dealers may choose to resist or renegotiate program terms, particularly where the manufacturer’s demands are overreaching or inconsistent with statutory protections. CONCLUSION Facility upgrade demands are central to the manufacturer-dealer relationship. Dealers must approach these programs with a clear understanding of the financial impact, legal constraints and long-term business consequences. Failure to do so can result in significant lost revenue, or worse, exposure to enforcement actions under the franchise agreement. Early legal and financial analysis is essential before making any facility-related commitment. Navigating Facility Image Programs and Demands By Halbert Rasmussen, Shareholder, Scali Rasmussen 26 SAN DIEGO DEALER
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131,577 142,535 142,527 138,500 2022 Actual 2023 Actual 2024 Actual 2025 Baseline Forecast YTD '24 YTD '25 % Chg. Mkt. Share thru Mar. thru Mar. '24 to '25 YTD '25 TOTAL 35,561 36,378 2.3% Car 9,241 8,435 -8.7% 23.2% Light Truck 26,320 27,943 6.2% 76.8% Domestic 12,038 10,709 -11.0% 29.4% European 5,171 5,670 9.6% 15.6% Japanese 14,980 15,905 6.2% 43.7% Other Asian 3,372 4,094 21.4% 11.3% First Quarter 2025 Released April 2025 Market Summary Forecast for County New Retail Light Vehicle Registrations DOWN 9.6% vs. ‘21 UP 8.3% vs. ‘22 NO CHANGE vs. ‘23 DOWN 2.8% vs. ‘24 San Diego Auto Outlook Comprehensive information on the San Diego County new vehicle market The graph above shows annual new retail light vehicle registrations from 2022 through 2024, and Auto Outlook’s baseline projection for 2025. Historical data sourced from Experian Automotive. Domestics consist of vehicles sold by GM, Ford, Stellantis (excluding Alfa Romeo and FIAT), Tesla, Rivian, and Lucid. Other Asian includes Genesis, Hyundai, Kia, and VinFast. Data sourced from Experian Automotive. FORECAST Outlook for 2025 is Clouded Due to Tariffs Outlook for San Diego County New Vehicle Market Baseline Forecast Key assumptions: tariffs are scaled back somewhat from current rates but remain above prior levels; vehicle prices increase by no more than 5%; minimal interest rate cuts by the Fed; inflation drifts higher; and economic growth slows. Forecast: 138,500 units, down 2.8% vs. ‘24 Alternative Upside Forecast Key assumptions: tariffs are largely removed and revert to prior levels; vehicle prices remain stable; several interest rate reductions by the Fed; inflation eases; and economic growth improves as the year progresses. This is similar to the forecast projection in January of this year. Forecast: 145,400 units, up 2.0% vs. ‘24 Alternative Downside Forecast Key assumptions: tensions escalate and tariffs are increased; vehicle prices surge by roughly 10%; no interest rate cuts; inflation accelerates; and the economy enters recession. Forecast: 128,100 units, down 10.1% vs. ‘24 There is heightened uncertainty for the new vehicle sales outlook in 2025. Some tariffs were dialed back in early April, but automotive and raw material tariffs are still in place, and the trade scenario is far from settled. Below are three scenarios for the forecast incorporating varying assumptions for tariffs and economic outcomes. Below is a review of key trends in the county new vehicle market. Market got off to a decent start in First Quarter of this year County new retail registrations increased 2.3% in the First Quarter of 2025 versus a year earlier, below the 4.9% improvement in the state. As shown on the following page, U.S. equivalent SAAR levels in the county reached 15.3 million units in 1Q ‘25. Outlook for rest of year is clouded Pent-up-demand, combined with improvements in affordability were expected to propel the market in 2025. However, the potential overhaul of U.S. trade policy has added significant unknowns into the new vehicle sales outlook. The sidebar on the right presents three forecast scenarios for county new vehicle registrations this year, incorporating varying assumptions for tariff policies and economic outcomes. After the events of the past few weeks, it’s safe to say that things are likely to change, so stay tuned. Tesla suffers losses in county market Tesla registrations in the First Quarter of this year fell 26.6% versus year earlier, while registrations for all other BEVs increased 41%. Tesla’s share of the county electric vehicle market fell from 58.1% in 1Q ‘24 to just 41.8% this year. An aging product lineup and backlash against Elon Musk’s political initiatives are key factors in the decline. Toyota is strong performer in county Small SUV segment; Rivian stands out among Mid and Full Size Luxury SUVs As show on page 4, Toyota accounted for 21.4% of the county Small SUV segment, well above its 14.3% share in the Nation. Rivian was a relatively strong performer in the Mid and Full Size Luxury SUV segment.
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