ISSUE 1 2025‑2026 A PUBLICATION OF THE GEORGIA AUTOMOBILE DEALERS ASSOCIATION IN THIS ISSUE 2025 GADA Convention Highlights
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2025-26 GADA Board of Directors Executive Committee Marsh Butler Butler Automotive Group, Macon Chair David Jones Gerald Jones Volkswagen Audi, Martinez Chair-Elect Chad NeSmith NeSmith Chevrolet, Jesup Secretary-Treasurer Bo Scott Regal Nissan, Roswell Immediate Past Chair Jason Denson Ford of Dalton, Dalton North Georgia Area Vice Chair Mike Domenicone Classic Cadillac & Subaru, Atlanta West Georgia Area Vice Chair Tim Redding Jr. Dublin Ford Lincoln, Dublin East Central Area Vice Chair Dana McCracken Brannen Motor Company, Unadilla Southwest Area Vice Chair Mike Burch Mike Burch Ford, Blackshear Southeast Area Vice Chair Matt Laughridge Terry Reid Hyundai, Cartersville NADA Director ISSUE 1, 2025‑2026 TABLE OF CONTENTS THE ©2025 The Georgia Automobile Dealers Association (GADA) | The newsLINK Group LLC. All rights reserved. The Generator is published two times per year by The newsLINK Group LLC for GADA 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 GADA, 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. The Generator is a collective work, and as such, some articles are submitted by authors who are independent of GADA. 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. GADA Staff General Administration Lea Kirschner, President Bill Morie, President Emeritus Ben Jordan, General Counsel/Governmental Relations Surangi Moonesinghe, Assistant Controller Maria Yolova, Accounting/Membership Esther Castro, Accounting — Receivables/Payables Travis Lockhart, Governmental Relations GADA Workers Compensation Group Self Insurance Fund Lisa Pritchett, Managing Director Melissa Gutierrez, Claims Adjuster Christina Zais, Claims Adjuster Jeremy Lane, Claims Adjuster Nicole Christian, Claims Assistant Andy Willis, Director of Loss Prevention Aaron Moon, Loss Prevention Specialist Leroy Smith, Loss Prevention Specialist GADA Insurance Services Shawn Presnell, Managing Director Candace McDole, Benefits Specialist Gabriella Filipov, Enrollment Specialist Matt Martinez, P&C Account Exec. (N. GA) David Crew, P&C Account Exec. (S. GA) Sherry McGaha, Insurance Services Admin Assistant Title Services/TOPS & Business Forms Roseann Nichols, Senior Director Title Services Beverly Bird, Office Admin/TOPs & Forms Georgia Automobile Dealers Association 2060 Powers Ferry Rd. SE Atlanta, GA 30339 (770) 432-1658 www.gada.com 4 2025-26 GADA Board of Directors SPOTLIGHT ON 6 2025-26 GADA Chairman Marsh Butler PRESIDENT’S MESSAGE 8 On My Mind By Lea Kirschner, President and CEO, GADA NADA DIRECTOR’S MESSAGE 10 NADA Notes By Matt Laughridge, Director, NADA 12 2025 GADA Convention Highlights HEADLIGHTS ON THE LAW 18 The Battle Continues Franchise Law Challenges and Victories By Ben Jordan, General Counsel & Director of Governmental Relations, GADA INSURANCE INSIGHTS 20 Auto Dealership Loss Trends By Shawn Presnell, Managing Director of Insurance Services, GADA 22 New Rules for Temporary Operating Permits (TOPs) and Use of Dealer Plates in Georgia 23 Summary of 2025 Franchise Bill (Senate Bill 81) Effective July 1, 2025 24 Are You in Compliance with OSHA’s PPE Hazard Assessment Requirement? By Lauren Bailey, VP of State Legal & Regulatory Affairs, ComplyAuto 28 Georgia Auto Outlook Second Quarter 2025 36 2025 Georgia Economic Impact Study 3 THE GENERATOR
DISTRICT 1 JASON DENSON Area Vice Chair Ford of Dalton Dalton MATT LAUGHRIDGE NADA Director Terry Reid Automotive Cartersville CHARLES PRATER Prater Ford Inc. Calhoun DISTRICT 2 JUSTIN FULLER Hardy Chevrolet Gainesville BILL HOLT Bill Holt Chevrolet Blue Ridge BILL HOWELL Billy Howell Ford Cumming DISTRICT 3 GRENE BARANCO Audi Forsyth Metro Atlanta WILLIAM BRIDGES Capital Cadillac Buick GMC Marietta MIKE DOMENICONE Area Vice Chair Classic Cadillac of Atlanta Atlanta STACEY ELLIS HODGES Jim Ellis Automotive Dealerships Metro Atlanta TED HAYES Hayes Chrysler Dodge Jeep Ram Lawrenceville EMANUEL JONES Legacy Ford McDonough AUSTIN PUGMIRE Pugmire Lincoln Inc. Marietta BO SCOTT Immediate Past Chair Regal Nissan Roswell RYAN REGNIER Rick Hendrick Dealerships Metro Atlanta DISTRICT 4 TREY DETTMERING John Thornton Chevrolet Lithia Springs ROB GALLIK Toyota of Newnan Newnan WANDA HOWELL Cronic Chevrolet and Cronic Chrysler Griffin DISTRICT 5 BILL GIBBS Jim Hudson Lexus Augusta DAVID JONES Chair-Elect Gerald Jones Volkswagen Audi Inc. Martinez WESLEY MIDDLEBROOKS Heyward Allen Motor Company Athens DISTRICT 6 JESSICA CLAYTON Mercedes-Benz of Columbus Columbus MARK FOSTER Auto Gallery Chevrolet GMC LaGrange DANA MCCRACKEN Area Vice Chair Brannen Motor Co. Unadilla DISTRICT 7 MARSH BUTLER Chair Butler Auto Group Macon TIM REDDING, JR. Area Vice Chair Dublin Ford Lincoln Dublin JIM JACKSON Jackson Automotive Macon DISTRICT 8 DAVID FLOWERS Flowers Auto Group Thomasville FOREST HUTCHINSON Hutchinson Auto Group Albany PHILIP PARK Spence Chevrolet Buick GMC Cadillac Thomasville DISTRICT 9 MIKE BURCH Area Vice Chair Mike Burch Ford Blackshear DANIEL GRIFFIN Griffin Ford Lincoln Tifton MARK HOWELL Langdale Ford Valdosta DISTRICT 10 LEHMAN FRANKLIN Franklin Chevrolet Company Statesboro SPENCER THOMAS Grainger Nissan Savannah CHAD NESMITH Secretary-Treasurer NeSmith Chevrolet Buick GMC of Jesup Jesup SCOTT PEARSON Truck Dealer Rep. Peterbilt of Atlanta Jackson MIKE SULLIVAN Public Group Rep. Group One Automotive Columbus 2025-26 GADA Board of Directors Congratulations to our 2025-26 Board of Directors, and thank you for your service and support. We look forward to another successful and productive year! THE GENERATOR 4
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SPOTLIGHT ON 2025-26 GADA Chairman Marsh Butler Born and raised in Macon, Georgia, Marshall (Marsh) Butler Jr. grew up in the car business. In 1946, his grandfather, Milton Butler, opened the family’s first dealership in Alma, Georgia and then bought Butler Toyota in Macon, Georgia, in 1970 alongside Marsh’s father and his uncle, Marshall Butler Sr. and Milton Butler Jr. Marsh began helping around the dealership at a young age, washing cars on the weekends and assisting in other areas. After graduating from the University of Georgia in 1993, Marsh worked for Mike Perrin, selling cars at Cobb County Toyota. “Mike runs a top-notch organization, so naturally, working for him taught me many valuable skills as I was learning more about the car business,” Marsh recalled. Marsh officially joined the business in 1994 as a third-generation Butler in the industry. In 2009, Marsh and his brother Morris became co-presidents and still operate the Butler Auto Group. Today, the Butler Auto Group has 15 locations serving communities in Georgia, South Carolina and Florida. Marsh was sworn in as the 2025-26 GADA Chairman during the annual convention and brings with him a lifetime of experience to the chairmanship. We recently sat down with Marsh and learned more about his career, his thoughts on the industry and what he’d like to accomplish in his role as chairman. The following are excerpts from our conversation. THE GENERATOR 6
Have you had any mentors along the way, and what did they teach you? My dad has been the most influential mentor in my life. I have had the incredible opportunity to observe and learn from him. He has always considered treating people well as his guiding principle. In his business life, that has played out by putting customers first and taking care of his associates. Surrounding himself with extremely talented people of high character and empowering that team to take care of their customers has allowed our business to continually grow and prosper. Operating his business with integrity and doing the right thing has been and continues to be a top priority. My father also taught me not to set limitations on myself or our business. As I previously mentioned, I learned so much from Mike Perrin. He has not only been a mentor, but he has also been a friend to me throughout my career. What has been the most rewarding part of your career? Working with my family is extremely rewarding. It has been a blessing to be able to work with Dad and my brother, Morris, on a daily basis. We work well together as a team, and I’m very proud of that. Additionally, we have an incredible group of talented people, both in our management company and in our dealerships. It’s rewarding to see many of our associates grow within our organization. What are the biggest challenges in the industry? From a retail perspective, affordability is a major challenge in our industry. Cars have gotten more expensive across the board, which is something that all new car dealers are faced with right now. Additionally, from a dealer’s perspective, we need to keep our eye on the direct sales model and make sure we protect our franchise system. What inspired you to take on the role of chairman? First and foremost, I love the car business. Preserving our future and protecting the franchise system in Georgia is important for many reasons. GADA is an incredible organization and partner to all of us in that effort. I am proud to be a part of it. Keeping our industry strong in turn keeps our communities strong. I have many friends who are car dealers who do such a great job supporting their communities. From employing local residents to charitable efforts and giving back, car dealers play a huge role in keeping communities strong. What goals do you have as chairman, and what can members do to help you reach them? One of my biggest goals is to increase dealer engagement with the association and get more dealers involved in GADA. GADA offers so much to dealers — from informational webinars, training and the workers’ comp program to the annual convention, political advocacy and much more. How do you balance your professional responsibilities with your personal life? It all comes down to time management, which can be challenging as the car business requires long hours. I’m very blessed to have such a great management team and associates to work with. I know they are going to take care of the customers and each other. That allows me to step away and spend some time with my family. Tell us about your family. I’ve been married to my wife, Jennifer, for 24 years. We have two children: our daughter, Jenny Belle, who graduated from the University of Georgia and just started working in Dallas, Texas, and our son, Marshall, who is starting his junior year at Wofford College. We attend Ingleside Baptist Church in Macon and are all big Georgia football fans, love most sports and enjoy traveling together. 7 THE GENERATOR
LEA KIRSCHNER PRESIDENT AND CEO, GADA PRESIDENT’S MESSAGE GADA CONVENTION This June, we hosted the annual GADA Convention at The Cloister in Sea Island. It was a great weekend, and I enjoyed seeing everyone having a good time. Thank you to our Keynote Speaker, DJ Shockley, and our Business Session speakers, Glenn Mercer, Kevin Tynan and Richard Sox. It was nice to see some new faces this year, and I hope that those of you who haven’t yet attended the GADA Convention will consider going next year. I can’t stress enough how valuable a full weekend of face time with fellow dealers, sponsors and guests can be. You get to learn, network and make valuable connections, and of course, enjoy a weekend on the beach in a beautiful location! See photos from the convention weekend on page 12. CARD OF GEORGIA Have you committed to contributing to CARD yet? As we have communicated to dealers many times, a strong PAC is necessary for GADA to maintain the strong connections and solid reputation it has earned with many state legislators through decades of work. CARD supports legislators who have shown they are interested in the welfare of the automobile retail industry and business in general. Remember: Corporate checks are accepted. CARD contributions can be mailed to GADA at: CARD of Georgia 2060 Powers Ferry Rd. SE Atlanta, GA 30339 WHAT’S HAPPENING AT GADA In September, I, along with the GADA Governmental Relations team and GADA officers, will be heading to Washington, D.C., to share concerns about issues facing our industry with members of Congress. On that note, not only does CARD need support, but NADA PAC also needs dealer support. Consider contributing to both CARD and NADA-PAC. Finally, this fall, GADA Workers’ Compensation Fund Director Lisa Lentz (formerly Pritchett) and Director of Loss Prevention Andy Willis will be teaming up with GADA Services’ endorsed provider, ComplyAuto Safety, for workshops around the state. Lisa and Andy will be presenting valuable information about loss prevention and workers’ compensation claims, and ComplyAuto will be filling in attendees on our partnership to provide Georgia dealers a stellar environmental health and safety compliance program. As always, feel free to reach out to me with feedback and ideas for how GADA can help you thrive! Mind ON MY THE GENERATOR 8
NADA DIRECTOR’S MESSAGE NADA Notes MATT LAUGHRIDGE DIRECTOR, NADA President Donald Trump signed into law the “One Big Beautiful Bill Act” (H.R. 1) on July 4. For NADA members, the passage of the bill represents another significant victory this year, as many of NADA’s tax priorities were addressed. Among the provisions included are: • Pass Through Deduction (Section 199A): Makes permanent at 20%. Also expands the deduction limit phase-in range by increasing the $50,000 (non-joint returns) and $100,000 (joint returns) amounts to $75,000 and $150,000, respectively. Effective for taxable years beginning after Dec. 31, 2025. • Estate Tax: Makes permanent and increases the exemption to $15 million (individual)/$30 million (joint), and adjusts for inflation annually thereafter. Effective for estates of decedents after Dec. 31, 2025, and gifts made after Dec. 31, 2025. • Interest Deduction Limitations (Section 163(j)): Reverts to EBITDA permanently for taxable years ‘‘beginning after Dec. 31, 2024.” • Bonus Depreciation (Section 168(k)): Permanently restores and extends 100% bonus depreciation for property acquired and placed in service on or after Jan. 19, 2025. Other relevant provisions: • New EV Credit (Section 30D): Eliminated after Sept. 30, 2025, for consumers who purchase certain new EVs. (The law does not include the exemption for manufacturers who sold less than 200,000 EVs, which was included in a previous version of the bill.) • Leasing and Commercial EV Credit (Section 45W): Eliminated after Sept. 30, 2025. • Used EV Credit (Section 25E): Eliminated after Sept. 30, 2025. • Temporary Auto Loan Deductibility: Above the line deduction on auto loan interest for new vehicles. $10,000 cap and MAGI limits of $100,000 (individual)/$200,000 (joint). Vehicle must be final assembled in the U.S. Deduction available from 2025-28. • Income Tax Rates: Permanently extends modified income tax rates. The provision also adds an additional year of inflation adjustment to the income tax thresholds to which the 10%, 12% and 22% brackets apply. Effective for taxable years beginning after Dec. 31, 2025. • SALT — Business/PTET: The 2017 Tax Cuts and Jobs Act created a $10,000 cap on the amount of state and local taxes (SALT) that could be deducted from a taxpayer’s federal taxable income. Some states created a workaround for the SALT cap by allowing pass-through businesses to deduct certain state and local taxes at the entity level, known as the pass-through entity tax (PTET). While prior versions of H.R. 1 would have limited the SALT workarounds, NADA successfully fought to preserve PTET. • SALT — Individual Cap: Increases SALT cap deduction to $40,000, for 2025, with 1% annual increases through 2029. Reverts to $10,000 in 2030. Deduction phases down with income over $500,000. • Expense Deduction (Section 179(b)): Permanently increases to $2.5 million, reduced by the amount by which the cost of qualifying property exceeds $4 million. Effective for property placed in service for taxable years beginning after Dec. 31, 2024. • Clean Heavy-Duty Vehicles (IRA Section 60101): The Inflation Reduction Act established a program to grant awards for purchasing heavy-duty electric vehicles. The bill repeals the program and rescinds any unobligated balance. Effective on the date of enactment. • CAFE Rule: Reduces NHTSA’s Corporate Average Fuel Economy (CAFE) penalty for automakers not meeting the standards to $0, effective on the date of enactment. THE GENERATOR 10
TARIFFS The tariff landscape continues to change and cause uncertainty among dealers and consumers. In July, the Trump administration announced agreements with Japan, the European Union and Korea that will reduce the existing 25% tariffs on imported automobiles and auto parts to 15%. On July 31, President Trump raised tariffs on about 70 countries that have not made new trade deals with the United States, effective Aug. 7. Based on the information available at this writing, it does not appear the new tariffs will apply to auto and auto parts. NADA has advocated against the imposition of tariffs on autos and auto parts from U.S. trading partners with the administration, emphasizing the effect tariffs will have on vehicle affordability, availability, sales and dealership viability. NADA has met with the White House, Office of the U.S. Trade Representative, Department of the Treasury, Department of Commerce, other government agencies and members of Congress to discuss the impact of tariffs on dealers and consumers. NADA remains committed to engaging with the administration to best inform its decisions. We will continue to urge decision-makers in Washington to acknowledge that franchised auto dealers are fully American businesses, predominantly small businesses, and that tariffs impact them regardless of whether they sell domestic or international vehicles. EPA’S EV MANDATE In late July, the Trump administration proposed a new rule that would eliminate the EPA’s ability to regulate greenhouse gases from vehicles. If the rule is finalized, EPA greenhouse gas rules will be revoked. The proposal will go through a lengthy review process before it is finalized, likely in 2026. If finalized, NADA expects a variety of court challenges. NADA is also supporting a bill that would prevent the EPA mandates from going into effect while the proposed rule is being finalized. This bill is a separate effort to stop the EV mandates from the rule Trump proposed on July 29, but it illustrates the variety of tracks NADA is taking to combat these mandates. CARB/ZEV MANDATE In June, President Donald Trump signed into law three NADA-backed Congressional Review Act resolutions (CRAs) that revoked California’s ability to ban gas/hybrid cars and diesel trucks. Following the president’s signing, California’s Attorney General filed a lawsuit against President Trump and EPA Administrator Lee Zeldin, claiming that these actions are unlawful. Ten other states that were enforcing California’s now-defunct car and diesel truck ban rules joined the lawsuit. NADA and ATD continue to monitor California’s litigation and are prepared to intervene in defense of the CRAs. CATALYTIC CONVERTER ANTI-THEFT LEGISLATION The PART Act (S. 2238) was reintroduced in the Senate by Sens. Amy Klobuchar (D-MN) and Bernie Moreno (R-OH). Reps. Jim Baird (R-IN) and Betty McCollum (D-MN) are expected to introduce companion legislation soon. The reintroduced bill includes non-controversial revisions to help increase support for the legislation. This legislation addresses a major concern for dealers as it will require new vehicles to have unique, traceable identifying numbers stamped on catalytic converters at the time of assembly. The bill also establishes a federal criminal penalty for theft, sale, trafficking or known purchase of stolen catalytic converters. Despite the widespread support for the PART Act, the Alliance for Automotive Innovation is the only organization that is publicly opposing the legislation. VOLKSWAGEN/SCOUT AND HONDA/ AFEELA (DIRECT TO CONSUMER SALES) NADA has spoken with the new North American head of the Volkswagen Group, Kjell Gruner, and advised him of our position on Scout. Also, in June, NADA met with Lance Woelfer, VP, automobile sales, and Jennifer Thomas, head of Corporate Affairs Honda, to share our position with regard to Afeela. NADA will continue to work with state and metro dealer associations to protect the franchise system and stand behind dealers across the country. 11 THE GENERATOR
Dancing Convention Chair Forest Hutchinson and his wife, Elsa, with Chairman Bo Scott and his wife, Kristina 2024-25 GADA Chairman Bo Scott Changing of the guard 2025-26 GADA Chairman Marsh Butler Speaker Jon Burns (right) and his wife, Dayle, with GADA board member Wanda Howell’s family THE GENERATOR 12
GADA’s Roseann Nichols and Lisa Lentz (Pritchett) enjoying game time Sponsor Recognition Breakfast Speaker Kevin Tynan from The Presidio Group (Left to right) Sens. Harold Jone, Ben Watson, Emanuel Jones, Larry Walker, State Rep. Jason Ridley and Senate President Pro Temp John Kennedy Keynote Speaker DJ Shockley addressing the crowd GADA officers David Jones, Marsh Butler, Bo Scott and Chad NeSmith Speaker Glenn Mercer 13 THE GENERATOR
Trade Show Business Session (Left to right) State Rep. Rick Jasperse, Bill Howell, Ryan Troncalli, Jennifer Troncalli and Marcia Jasperse Bass Sox Mercer Attorney Rich Sox filling dealers in on franchise law Winner of the John Prince Outstanding Dealer Award Jason Denson with John Prince Marsh Butler and Bo Scott Singing Chairman’s Club Breakfast THE GENERATOR 14
A SPECIAL THANK YOU TO OUR 2025 CONVENTION SPONSORS TITANIUM LEVEL SPONSORS PLATINUM LEVEL SPONSORS GOLD LEVEL SPONSORS Ally Capital Dealer Services Group StrategicSource Tekion SILVER LEVEL SPONSORS Armatus Dealer Uplift Bank of America Bass Sox Mercer BOS Security Inc. Brightline Dealer Advisors Broadway Equipment Company Clifton Larson Allen LLP Cox Automotive Dealer Merchant Services Dealer Solutions Mergers & Acquisitions Dealerslink Dominion DMS Forvis Mazars Grow Financial Federal Credit Union Guardian Products NADA Retirement from EMPOWER Pivotal Tax Solutions Reynolds & Reynolds RouteOne The Versant Group Truist BRONZE LEVEL SPONSORS Capital Automotive Real Estate Services Dave Cantin Group Gulfstream Partners HHM CPAs JM&A Group Metrotech Automotive Ross Lane & Co TrueCar 15 THE GENERATOR
SAVE THE DATE! June 25-28, 2026 PONTE VEDRA INN & CLUB Ponte Vedra, Florida 2026 GADA Convention THE GENERATOR 16
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HEADLIGHTS ON THE LAW BEN JORDAN GENERAL COUNSEL & DIRECTOR OF GOVERNMENTAL RELATIONS, GADA It seems a new front has emerged in the ongoing battle over the franchise dealer system in the United States. In July, Scout Motors petitioned the U.S. Department of Justice, through its Task Force on Anticompetitive Regulations, to eliminate all dealership franchise laws in the country. If you think the author is joking about that, the following is a snapshot from Scout’s public comment: As background, Scout Motors is a subsidiary of Volkswagen that seeks to sell its vehicles without franchise dealerships. That’s right: Not only does Scout not plan on using its existing Volkswagen dealers; it does not plan to use dealers at all. Unfortunately, recent comments by Roger Alford, principal deputy assistant attorney general in the Antitrust Division of the DOJ, indicate some in the department may be sympathetic to Scout’s position. But that is not the end of the story. Fuel was added to this fire when the Alliance of Auto Innovators, the trade association that represents manufacturers with dealers, also submitted comments critical of franchise laws — specifically provisions related to warranty reimbursement and restrictions on opening new sales points. Taken together, those comments have been characterized as a “declaration of war” against dealers by the nation’s manufacturers (the Alliance has since distanced itself from those comments by declaring: “We support the dealership franchise model. Period. Full stop.”). For GADA and Georgia dealers, this latest eruption in the battle between dealer versus factory sales comes as no surprise. Companies like Rivian and Lucid have tried repeatedly, and unsuccessfully, to convince lawmakers to change Georgia law to allow them to sell without dealers. When their legislative efforts failed, Lucid sued the state of Georgia and argued that our franchise law’s prohibition against direct sales was unconstitutional. Their argument was soundly rejected by the Superior Court of Fulton County, but Lucid appealed that decision, and the case will be heard The Battle Continues Franchise Law Challenges and Victories
by the Supreme Court of Georgia this fall. GADA retained counsel and is utilizing its resources to help defend against the Lucid lawsuit. In the meantime, and on a much brighter note, the Georgia General Assembly passed legislation this year that strengthens Georgia’s franchise laws. Senate Bill 81, which took effect July 1, 2025, reaffirms Georgia’s commitment to dealer sales and gives Georgia dealers more control over the important data on their DMS systems. Since this bill took effect, GADA has received positive feedback and several requests for more information about it. Specifically, as it relates to data protection, Senate Bill 81: • Prevents third parties from accessing, sharing or selling a dealership’s data from their DMS without the dealer’s consent; • Prohibits third parties, including DMS providers, from limiting a dealership’s ability to protect, store or utilize its data; • Allows data integrators to access data on a dealership’s DMS with the dealer’s consent if the data integrator complies with industry standards for secure data integration; • Permits dealers to continuously monitor or audit the data accessed from or written to the dealer’s data systems without interference from third parties; • Permits dealers to terminate DMS contract agreements with 90 days’ notice; • Requires DMS providers to act reasonably when a dealer transitions away from that DMS provider; and • Permits dealers to backup data and/or provide redundant systems to enable them to restore business operations in the event of another security breach that renders a dealer’s data system inoperable. TAKEAWAY What is the common thread that links these stories together? The battle to defend and improve the franchise system continues. Make no mistake: There are well-resourced companies trying to destroy franchise law protections that dealers have spent decades fighting for. Defending and improving the franchise system requires resources and active engagement from dealers. Please consider supporting GADA’s political action committee, CARD and GADA’s Dealer Advocacy Fund. Those dollars go directly to supporting the franchise dealer system in Georgia, and those resources are necessary as the battle continues. YOU WANT IT! (801) 676-9722 SALES@THENEWSLINKGROUP.COM DON’T ROLL THE DICE ADVERTISE HERE! CONTACT US TODAY 19 THE GENERATOR
INSURANCE INSIGHTS Auto Dealership Loss Trends SHAWN PRESNELL MANAGING DIRECTOR OF INSURANCE SERVICES, GADA GADA Insurance Services has a comprehensive database of information on property and casualty claims and loss trends in Georgia. We have seen what losses are on the rise in Georgia and want to make our dealers aware of these loss trends and how to prevent them from happening to your dealership. AUTO ACCIDENTS Auto accidents are the loss leader for many dealerships. At-fault rear-end collisions make up more than 50% of the auto accidents from dealership employees. In most auto accidents, the bodily injury (BI) loss paid exceeds the physical damage (PD) loss on the vehicle. Lawsuits for BI are on the rise and even minor auto accidents with limited BI can be expensive! It is not uncommon for the BI on a minor accident to pay more than $50,000. The following are ways to avoid rear-end collisions: • Look farther up the road to spot traffic stopping long before the vehicle in front of you slams on its brakes. This gives you time to stop along with the cars behind you. • Check your mirrors more often. This will alert you to someone riding too close to you and give you a warning to leave more space in front of you. You might be better off letting that tailing vehicle pull around and pass you. • Stay focused on driving and do not become distracted. Limit your cell phone use. • As you slow down to stop, look for an escape route to be able to get out of the way of a vehicle behind you that is not paying attention. Make sure your brake lights are working properly. Leave extra space between you and the vehicle in front of you. AUTO THEFT Most auto thefts result from dealerships not following sound procedures in key control, dealing with wholesalers and verifying customers’ identities. Key control involves securing keys in a device, keeping keys out of the hands of potential thieves and keeping keys secured while not being used. Theft of vehicles by wholesalers who get into financial trouble can become a potential risk. With identity theft being on the rise in both metro and non-metro areas, it’s important to tighten up your dealership’s policies. The following are ways to avoid auto theft: • Keys to dealership and customer vehicles should be secure when the keys are not being used. No keys should ever be left unattended on a desk. Key machines are a better solution than a keyboard. With key swapping, it is important to not provide keys to prospective buyers — with the salesperson in the vehicle with a key fob, the customer does not need to have possession of your keys. • Wholesalers get into financial hardship and may attempt to get a dealership to surrender the vehicle and title before payment has been made or cleared. We have seen dealerships incur losses in the hundreds of thousands of dollars in this area and, depending on your insurance contract, this may not be a covered loss. THE GENERATOR 20
The following are ways to avoid identity theft or false pretense claims: • Identity theft is on the rise. It is important that your salespeople and managers be trained to spot an altered ID or driver’s license. Remember, if something seems too good to be true, it probably is. Driver’s license scanners can help prevent false identity. Be very cautious of out-of-state deals if the customer is not willing to come to your dealership to pick up the vehicle. • Train managers on the red flags of potential identity theft claims. Vehicles that are sold virtually should require a manager’s review and approval. • Even the most experienced salespeople, managers and F&I professionals may not be able to uncover a false identity scheme. Therefore, you may want to contract with a company that specializes in the avoidance of false identity claims. EMPLOYMENT PRACTICES LIABILITY (EPL) Discrimination, harassment and wrongful termination claims are always a challenge in the business environment, and while many of these claims are without merit, you still must defend your dealership. Most EPL claims are against managers and occur following termination. Following the law for FMLA and ADA is critical to keep your dealership from having an EPL claim. If your dealership employs 50 or more employees, you are subject to FMLA. If your dealership employs 15 or more employees, you are subject to ADA law under Title I. However, all sizes of employers are subject to the ADA Title III for ensuring accessibility for people with disabilities in places open to the public. Many of these EPL claims can be avoided or minimized by following sound business practices with employees and managers. The following are ways to avoid EPL claims: • Train all managers in employment practices to include the best practices for hiring and termination procedures. This should be done with all new managers when they are hired and updated annually. • Develop proper hiring and termination procedures. Check with a labor attorney if in doubt. Document the employee’s deficiencies “in writing” along the way and ensure they are aware that they are not meeting expectations before termination. • Have a no-tolerance sexual harassment and discrimination policy and enforce it. • Thoroughly investigate all complaints and take appropriate action. • Make sure that your dealership’s no-harassment and no-discrimination policy is in writing and signed by all employees and clearly outlines how to report a complaint. Lawsuits are on the rise once again. You need to make sure that your dealership avoids potential exposures in the best way possible. Please do not hesitate to contact me or any member of my insurance team if we can be of any assistance or answer specific insurance questions. You can contact Shawn Presnell, managing director of insurance services, by calling (678) 428-9247 or emailing shawn_presnell@gada.com. You can contact David Crew, GDIC account executive of Middle/South Georgia, by calling (470) 303-9051 or emailing david_crew@gada.com. You can contact Matt Martinez, GDIC account executive of Atlanta/North Georgia, by calling (770) 570-8212 or emailing matt_martinez@gada.com. 21 THE GENERATOR
NEW RULES for Temporary Operating Permits (TOPs) and Use of Dealer Plates in Georgia In an effort to address TOPs abuse and improper use of dealer tags, the General Assembly passed House Bill 551. In addition, contracts between TOPs distributors (GADA and GIADA) have been modified. The following is a summary of the changes that have and will occur due to both revised GADOR contracts and HB 551. REFORM OF TOPS SYSTEM TOPs Quantity Limits Instituted by GADOR Effective July 1, 2025 • Pursuant to the GADOR contract, GADOR is limiting the number of TOPs each dealer can purchase and process based on that dealer’s sales history. • Quantity limitations are implemented through the ETR vendors. However, there is a process by which dealers can request additional TOPs allocation. • Also, pursuant to the GADOR contract, every dealership purchasing TOPs from a distributor (GADA and GIADA) is required to execute an updated agreement. Beginning July 1, the GADA TOPs ordering system does not allow a dealership to proceed with an order until an electronic signature on the agreement is obtained. DOR may Suspend Dealer’s Access to TOP System for Violations Effective Jan. 1, 2026 • HB 551 enables the DOR to monitor TOP issuance patterns and identify suspicious activity. • DOR will have the authority to suspend a dealer’s access to issue TOPs immediately if there is evidence the dealer issued TOPs for vehicles not genuinely sold, not properly titled or not intended for bona fide registration. Dealers Have Due Process Rights Before TOPs Access is Suspended • At the request of GADA, HB 551 requires the Department of Revenue to adopt certain due process procedures before a dealer’s access to TOPs is suspended. • Specifically, if the department notifies a dealer that access will be suspended, the dealer may request an informal review. DOR must meet with the dealer within 10 business days before suspending access. • The DOR can only suspend access if the dealer was “substantially out of compliance” and fails to produce satisfactory evidence of extenuating circumstances to justify their conduct. • Even if DOR does not suspend access, it can still levy fines and penalties for dealers who violate rules and regulations regarding the issuance of TOPs. Dealers Can Appeal Suspension of TOPs Access • If a dealer’s TOPs access is suspended, the dealer can appeal that decision, and a formal hearing must be held within 30 days. • The hearing must be conducted in accordance with the Administrative Procedures Act. DEALER PLATES AND OTHER CHANGES No Dealer Plates Unless Dealer Sells at Least Five Motor Vehicles Annually • Only those dealers who sell at least five vehicles annually will receive dealer plates. • This provision is designed to address misuse of dealer plates, including by those who use dealer plates to avoid paying the Title Ad Valorem Tax (TAVT). Larger Office Space Requirements for Used Car Dealers • HB 551 also increases the minimum office space requirement for used car dealers to 250 feet, unless the dealer’s location conducts at least 500 motor vehicle sales annually. “Montana” Plates • In another form of “tax avoidance,” some Georgia residents with expensive cars have formed business entities in Montana where they register their vehicles, even though they live in Georgia, to avoid paying TAVT. • House Bill 551 addresses that problem by creating a new civil penalty for Georgia residents who register their vehicles under a passive entity in another state but should, by law, register such vehicles in Georgia (i.e. vehicles driven in Georgia for 60 days or more). THE GENERATOR 22
Summary of 2025 Franchise Bill (Senate Bill 81) Effective July 1, 2025 DATA PROTECTION • Prevents unauthorized access, sharing or selling of dealership data from a dealer’s DMS. • Prohibits third parties from limiting a dealership’s ability to protect, store or use its data. • Allows data integrators to access data on a dealership’s DMS for specific services with the dealer’s consent, provided they comply with industry standards for secure data integration. • Allows dealers to back up data and implement redundant systems for business continuity in case of security breaches. OVER-THE-AIR (OTA) UPDATES • Requires manufacturers to compensate franchise dealers when dealers assist customers with OTA updates covered under factory warranty. • Requires manufacturers to disclose to dealers each accessory or function of a new vehicle that may be initiated, updated, changed or maintained through OTA updates, along with the associated costs to the consumer. This information can be provided digitally or on the manufacturer’s website. ALLOCATION • Requires a manufacturer’s allocation process to be “fair, equitable and non-discriminatory” to its line-make dealers in Georgia. • Requires manufacturers to disclose how allocation decisions were made when requested by dealers. SHOWROOMS/GALLERIES • Clarifies that a dealer license is required to conduct the following activities: selling, leasing, offering to sell or lease, negotiating terms, accepting deposits, processing reservations, or accepting or negotiating trade-ins — displaying a vehicle only, or disclosing the MSRP, would not. LEGISLATIVE FINDINGS • Updates the Legislative Findings portion of the franchise law to highlight additional benefits of the franchise dealer system to consumers, such as: inter-brand and intra-brand competition, recall repairs, support and maintenance after the sale, protecting against monopolies and providing stable employment for Georgia citizens. 23 THE GENERATOR
BY LAUREN BAILEY VP OF STATE LEGAL & REGULATORY AFFAIRS, COMPLYAUTO Creating a safe workplace isn’t just a good idea to keep your employees safe, it’s the law. Under OSHA’s regulations, dealerships are required to supply personal protective equipment (PPE) to their employees. However, simply making it available on an ad hoc basis is not enough; you are required to take a systematic, documented approach to identifying hazards and deciding whether PPE is necessary for each job. That process, called a PPE hazard assessment, is mandatory under the law. If your dealership hasn’t completed and certified such an assessment, you are not only putting your employees at risk, but you’re also out of compliance and at risk of fines of up to $16,550 per violation. WHAT THE LAW REQUIRES Under OSHA’s General Industry Standard, 29 CFR §1910.132(d), all employers, including dealerships, must evaluate their workplaces to determine whether hazards that require PPE are present or likely to be present. If such hazards exist, the employer must: • Identify and select the PPE that will protect employees. • Ensure each employee is properly fitted with the selected PPE. • Communicate those PPE requirements to affected employees. • Train employees on how to use and maintain the equipment. Most critically, the employer must also certify in writing that the hazard assessment was performed. This certification must include: • The name of the person who conducted the assessment. • The date of the assessment. • Identification of the work areas evaluated. • A clear statement that the assessment was completed. Without this certification, your PPE program is incomplete, and your business will be at risk during an OSHA inspection. Are You in Compliance with OSHA’s PPE Hazard Assessment Requirement? WHY DEALERSHIPS ARE AFFECTED Potential hazards are common in dealership operations. Technicians may face risks from moving parts, compressed air, sharp edges or chemical exposure. Staff in the Parts Department may be exposed to lifting injuries or impact hazards. Detailers regularly handle cleaning agents or work on slippery surfaces. The purpose of a hazard assessment is to identify these risks by job role and location and determine what protections, if any, are required. It is not enough to assume that safety glasses or gloves are appropriate; the selection must be based on a careful and documented evaluation of the specific hazards encountered. WHO SHOULD PERFORM THE ASSESSMENT? Hazard assessments should be conducted by someone with thorough knowledge of the facility and its operations. This person must understand how to evaluate exposures across multiple risk categories, including eye, face, hand, foot, hearing and respiratory hazards. For larger or more complex dealerships, especially those with collision repair centers or reconditioning operations, THE GENERATOR 24
assessments may need to be broken down by department or function to be thorough. That’s why many dealerships rely on ComplyAuto Safety as their go-to resource for hazard assessments and certification. ComplyAuto’s specialists handle the entire process for you: identifying and evaluating hazards by job role and area, preparing the required written certification, selecting appropriate PPE and providing the documentation OSHA requires. With ComplyAuto’s support, your dealership can be confident your assessment is thorough, up to date and fully compliant. THE ROLE OF TRAINING Once the assessment is complete and PPE is selected, employees must be trained. OSHA requires that employees understand when PPE is required, how to properly wear and remove it, what its limitations are, and how to care for and dispose of it. This training must also be documented and periodically refreshed. WHY CERTIFICATION MATTERS One of the most common mistakes is forgetting to document and certify the assessment. Even if you’re supplying PPE and employees are using it properly, you’re out of compliance if you can’t produce a written certification during an OSHA inspection. Your hazard assessment isn’t just a checklist, it’s the foundation of a compliant workplace safety program. HOW COMPLYAUTO HELPS ComplyAuto has the training, tools and processes you need to ensure compliance with this critical safety requirement. If you are unsure about whether or not your dealership has a certified PPE hazard assessment on file, or if your dealership has never completed one, now is the time to act. ComplyAuto Safety can help you conduct and document a PPE hazard assessment for each facility, quickly and efficiently, to maintain compliance with OSHA regulations and provide a safe workplace for your staff. Existing ComplyAuto Safety customers can reach out to their dedicated client success manager to get the process started right away. Interested dealers can reach us at info@complyauto.com for more information. ComplyAuto helps dealerships simplify compliance and document what matters. Don’t wait for a citation, let us help you complete your hazard assessment the right way. Stay up to date from your couch, office or even the moon! TAKE US ANYWHERE! Place a 1” x 1” QR Code White on Black Here to the main website Scan to read the most recent publication. 25 THE GENERATOR
ComplyAuto and GADA have partnered to bring you the best-in-class environmental health and safety solution. Any participating member of the GADA Workers' Comp Fund can take advantage of this partnership with exclusive pricing for ComplyAuto Safety LT at only $135 / mo. This is a 32% discount for GADA members! Flexible and Effective EHS The Platform Includes Comprehensive Nationwide and fully researched to be compliant for all 50 states Expertise (Available) Onsite evaluations conducted by certified professionals identifying risks and gaps in compliance Training & Policies Comprehensive workplace violence and active shooter policies and training from OSHA and the Department of Public Health EPA A/C 609 Training and Certification EPA-approved training and certification for all service technicians to service mobile vehicle AC systems at no additional cost. Automated The only tool with automated injury & illness (OSHA 300) requirements for all 50 states Environmental Compliance Tier I level spill prevention control and countermeasure plans Curated Safety Data Sheets Tailored Safety Data Sheets specific to your location - updates available at all times Customizable Customized policies and procedures with onsite inspections automatically uploaded Industry Legal Expertise The only automotive EHS software platform backed by world-class legal expertise Copyright © 2025 ComplyAuto Privacy LLC. All rights reserved. Get Started Today www.complyauto.com
Others (regional) Automated Custom Policy Builders Advanced Safety Risk Assessments Employee Safety Online Training w/ Certifications American Red Cross CPR & AED Training Curated and Updated SDS Library Safety Assessments 120+ points (optional) Full Mock OSHA Inspection (optional) EHS Certified Professionals Spill Prevention Control & Countermeasure Plan Automates Injury & Illness (300A) Reporting Requirements DOT HazMat & AC 609 Training and Certification Automatic Updates Manual Templates Manual Templates Syncs with Policies Manual Templates Manual Templates Professional Certification Dealer Specific Quarterly 8-hour Inspection Wizard to Create Exclusive & 50 States Additional Fee Additional Fee Additional Fee Additional Fee Industry-Specific; No Account Needed Not Industry Specific No Additional Fees Leading Competitor Feature Comparison As we see an increase in federal and state enforcement, with environmental health and safety at the forefront, it’s become more critical now than ever before to make sure you’re compliant. Copyright © 2025 ComplyAuto Privacy LLC. All rights reserved.
343,282 371,242 377,439 379,100 2022 Actual 2023 Actual 2024 Actual 2025 Forecast Second Quarter 2025 Released July 2025 Market Summary Forecast for State New Retail Light Vehicle Registrations DOWN 14.9% vs. ‘21 UP 8.1% vs. ‘22 UP 1.7% vs. ‘23 UP 0.4% vs. ‘24 Georgia Auto Outlook Comprehensive information on the Georgia new vehicle market TM YTD '24 YTD '25 % Chg. Mkt. Share thru June thru June '24 to '25 YTD '25 TOTAL 185,110 204,196 10.3% Car 40,831 40,198 -1.6% 19.7% Light Truck 144,279 163,998 13.7% 80.3% Domestic 67,907 79,546 17.1% 39.0% European 18,374 19,023 3.5% 9.3% Japanese 74,732 77,679 3.9% 38.0% Other Asian 24,097 27,948 16.0% 13.7% 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. The graph above shows annual new retail light vehicle registrations from 2022 through 2024, and Auto Outlook’s projection for 2025. Historical data sourced from Experian Automotive. FORECAST New Vehicle Registrations Predicted to Decline in 2nd Half of ‘25 Below is a list of five key trends and developments in the Georgia new vehicle market: 1. The state market got off to a good start in the first half of this year. New retail light vehicle registrations increased 10.3% during the first six months of 2025 versus a year earlier, above the 6.4% improvement in the U.S. Some sales were undoubtedly pulled ahead as shoppers entered the market in advance of anticipated price increases due to tariffs. 2. As discussed in the sidebar on the right, there is heightened uncertainty for the new vehicle sales outlook. At this point, it looks like the market will move lower for the rest of this year. Second half registrations are predicted to decline 9.1% compared to the same period in 2024. The market is expected to decline slightly for all of this year (see graph below). 3. Hybrid vehicle sales continue to move higher. Hybrid registrations increased 57% in the first half of this year, easily outpacing the overall market. Market share reached 12.7%. BEV market share was 7.2% in the Second Quarter of this year, down from 8.8% in the First Quarter. 4. Hybrids accounted for 46% of Toyota registrations during the first six months of 2025. More than 14% of Audi, BMW, Cadillac, and Porsche registrations were BEVs. ICE powertrain share was greater than 75% for 23 of the top 30 selling brands (see page 7). 5. First half registrations increased by more than 17% for eight of the top 30 selling brands in the state: Cadillac, GMC, Mazda, Tesla, Kia, Chevrolet, Ford, and Ram. Primary Factors Driving the Georgia New Vehicle Market As 2025 approached, the outlook for new vehicle sales was positive. Affordability was likely to improve due to lower interest rates and declining transaction prices. The economy was also in relatively good shape: GDP growth was solid, unemployment remained low, incomes were on the rise, and inflation was cooling. Add in pent-up demand resulting from deferred purchases during the pandemic and ensuing supply chain disruptions, and the stage was set for improving sales. But that clear road quickly turned bumpy. U.S. trade policy was abruptly and dramatically altered, throwing a wrench into a relatively stable economic environment. The global economy is intricately interconnected, and the introduction of this level of policy uncertainty has left both businesses and consumers partially paralyzed. This level of disruption is substantial and without historical precedence, which makes isolating the impact on new vehicle sales very difficult. Bottom line: Higher tariffs will likely lead to rising vehicle prices and in the short run, increasing inflation, lower economic growth, and stagnant household disposable income, all negatives for new vehicle sales. In addition, sales were pulled ahead this year as shoppers advanced purchases due to the anticipation of higher vehicle prices resulting from tariffs. New vehicle registrations in the second half of the year are projected to decline from the year earlier, but the situation is highly dynamic and subject to change, so stay tuned.
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