Pub 1 • Issue 4 Official Publication of the Louisiana Automobile Dealers Association 2024 A YEAR IN REVIEW
10543 South Glenstone Place, Baton Rouge, LA 70810 • 225-769-9923 • theldsgroup.com LADA'S ENDORSED F&I PROVIDER OF PRODUCTS, TRAINING AND INCOME DEVELOPMENT A FEW OF OUR 60+ TEAM MEMBERS: Keith Decell President Jason Rasti Executive Vice President Cole Miller Director of Training Shelley Cavin Client Relations Manager Sunny Mayhall General Counsel Lee Martinez Regional Manager Dan Stowers Territory Manager Curtis Loftin Territory Manager Edward Burnett Territory Manager Alfonso ‘Fons’ Augustine Territory Manager Mustafa ‘Moose’ Mohammad Territory Manager Nick Olsen Territory Manager Brandon Choina Territory Manager
CONTENTS 4 A MESSAGE FROM THE PRESIDENT Reflecting on 2024 A Year of Challenges and Achievements for Louisiana’s New Car and Heavy Truck Dealers By Coulter McMahen, President/CEO, LADA 7 Highlights from LADA’s Action Packed 2024 By Katherine Carver, Director of Events and Communications, LADA 8 Regional Meetings 11 Dealer Day 14 LADA 85th Annual Convention 16 National Advocacy 18 LADA Annual Charity Golf Tournament 20 2025 Calendar of Events 21 Welcome New Associate Members! 22 We Want To Hear From You! ©2024 Louisiana Automobile Dealers Association (LADA) | The newsLINK Group LLC. All rights reserved. Up to Speed is published four times each year by The newsLINK Group LLC for the LADA 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 specific circumstances. The statements and opinions expressed in this publication are those of the individual authors and do not necessarily represent the views of the LADA, 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. Up to Speed is a collective work, and as such, some articles are submitted by authors who are independent of the LADA. While Louisiana Automobile Dealers Association encourages a first-print policy, 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. 2023-2025 EXECUTIVE COMMITTEE Kristie M. Hebert Arceneaux Ford Chairwoman Patton Fritze Red River Chevrolet Vice-Chairman, District 7 Rand Alford Alford Motors Inc. Treasurer, District 15 Marshall Harper Harper Chevrolet GMC Immediate Past Chairman Robert A. Grace Southpoint Volkswagen Districts 11-12 John R. Young John R. Young Chevrolet GMC District 13 Mark A. Hebert Sr. Hebert’s Town & Country Ford Lincoln NADA State Director OUR TEAM Coulter McMahen President/CEO Katherine Carver Director of Events and Communications Alexandra Hughes Director of Membership Cecilia Shahrdar Member Services Coordinator Vivian Kirkpatrick Administrative Assistant 3
A MESSAGE FROM THE PRESIDENT Reflecting on 2024 BY COULTER McMAHEN, PRESIDENT/CEO, LADA STATE-LEVEL SUCCESSES: DEFENDING THE FRANCHISE MODEL At the state level, LADA has been active. This year, Louisiana held three special sessions addressing redistricting, crime and tax reform, in addition to a regular legislative session. I’m proud to share that LADA secured a significant victory by defeating legislation that could have drastically altered the dealership landscape in our state. The proposed bill aimed to permit zero-emission vehicle manufacturers to bypass independent dealers and sell and service vehicles directly — a clear threat to the independent dealer model that has been the backbone of our communities for generations. Thanks to your unified efforts and strong advocacy, we successfully safeguarded against manufacturer-owned dealerships, with the bill failing in the House Transportation Committee. However, the fight is far from over. The Volkswagen Group’s recent announcement that its wholly-owned Scout brand will bypass its U.S. dealers underscores the ongoing threat to the franchise model. For decades, Volkswagen and Audi dealers have been trusted partners, advocating for products aligned with American consumers’ needs. Instead of investing in its dealer network, Volkswagen AG chose to fund Scout’s development as a direct competitor. This highlights the critical importance of defending the franchise model. THE VALUE OF THE FRANCHISE MODEL: DATA-DRIVEN INSIGHTS This growing trend emphasizes the need for data-driven insights to showcase the undeniable advantages of the franchise model. A recent analysis by the globally respected consulting firm Oliver Wyman, commissioned by NADA, confirms that the dealer franchise system is the most efficient and cost-effective way for automakers to distribute and sell vehicles in the U.S. Here’s how the net cost of distribution compares across different models: • Traditional Franchise Model: $2,910-$3,240 • Hybrid Model (a mix of franchise and direct sales): $3,115-$3,585 • Direct Sales Model: $3,080-$3,350 The findings debunk claims from manufacturers that direct-to-consumer As I reflect on this past year, I am filled with immense gratitude for the unwavering support, engagement and commitment of our dealer body. Serving as president and CEO of the Louisiana Automobile Dealers Association (LADA) has been a privilege. Working alongside such a dynamic group of leaders — dedicated not only to their own businesses but also to the success and future of our industry — has been inspiring. Your involvement has driven our progress, and together, we have achieved significant milestones critical to our shared success. When I stepped into this role, I knew no two days would be the same, and 2024 has more than lived up to that expectation. Our industry is in a constant state of transformation, grappling with challenges on multiple fronts at both the state and national levels. From continued attacks on the franchise model and critical tax policy debates to mounting federal regulations, such as the Federal Trade Commission’s (FTC) Vehicle Shopping Rule and the Environmental Protection Agency’s (EPA) greenhouse gas emission standards, the stakes have never been higher. These challenges directly impact your businesses, but rest assured, LADA remains steadfast in its mission to advocate for policies that protect, empower and sustain dealerships through these complex and dynamic times. A Year of Challenges and Achievements for Louisiana’s New Car and Heavy Truck Dealers 4
offer critical protections and stability in the meantime. Additionally, new legislation lays the groundwork for parishes to explore phasing out inventory taxes entirely, paving the way for a more equitable and competitive tax environment. The governor’s plan also includes several changes aimed at improving Louisiana’s tax landscape. The plan includes eliminating the corporate franchise tax and reducing the corporate income tax rate from 7.5% to 5.5%, which is a significant step forward for businesses. For individuals, the plan simplifies the personal income tax system by introducing a flat 3% rate instead of the current three-tiered brackets and increases the standard deduction. FEDERAL POLICY At the federal level, we are optimistic that the incoming Trump administration will prioritize many of the critical issues facing the automotive industry, including FTC’s Vehicle Shopping Rule and the EPA’s greenhouse gas emission standards. His historic victory over the Harris-Waltz ticket — not only securing the electoral college but also the popular vote, a first for a Republican since 2004 — signals a mandate for change. It is our hope that the administration will begin addressing the burdensome regulatory environment impacting our industry as early as Jan. 20, 2025. THE ROAD AHEAD Looking ahead to 2025, we know new challenges will arise, including continued Tesla litigation and further tax reform measures during the fiscal session in April. We are also closely monitoring issues with legacy manufacturers and working to address your concerns. Rest assured, LADA is here for you — fighting every step of the way in Baton Rouge, Washington and the courtroom — to ensure your businesses remain protected and prosperous. Thank you for your continued support of LADA and your dedication to our industry. Together, we have accomplished so much in 2024, and I look forward to all we will achieve in the year ahead. sales are a cheaper alternative. The study underscores what we’ve always known: Louisiana’s franchised dealerships provide exceptional value — not just to consumers, but to entire communities through job creation, tax revenue and charitable contributions. THE TESLA LAWSUIT: DEFENDING THE FRANCHISE SYSTEM In the legal arena, the Tesla lawsuit against LADA and the Louisiana Motor Vehicle Commission (LMVC) continues to pose a serious threat to the franchise model nationwide. While the United States Court of Appeals for the Fifth Circuit upheld the district court’s dismissal of Tesla’s equal-protection claim — a significant victory — it revived Tesla’s antitrust claim against LADA and due-process claim against the LMVC commissioners, sending these issues back to the district court. This litigation challenges dealer-manufacturer relationships, the Noerr-Pennington doctrine — which shields associations from antitrust liability for lobbying efforts — and regulatory bodies where market participants serve, calling into question their constitutional legitimacy on a national scale. LADA remains committed to defending the franchise model and advocating for your interests in this ongoing battle. TAX REFORM: CRITICAL AMENDMENTS SECURED On the tax reform front, we navigated one of the most significant challenges of the year: the administration’s original proposal to repeal the inventory tax credit without eliminating the inventory tax itself. Such a move would have been devastating to small businesses across Louisiana, including dealerships. Through our collaborative efforts with Governor Landry, Secretary of Revenue Richard Nelson and key legislators, we emphasized the critical importance of retaining the inventory tax credit to support small businesses — especially dealerships that manage substantial inventory while operating on narrow margins. This advocacy helped secure critical amendments that ensure pass-through entities — such as LLCs, S-corporations and partnerships — retain the inventory tax credit indefinitely, while C-corporations will benefit from the credit, which sunsets in July 2026. Although the ultimate goal remains the complete elimination of inventory taxes, these amendments 5
Louisiana’s unique geographical location may lead to car dealerships being vulnerable to a number of different severe weather events, such as hurricanes, flash floods, hail, and tornadoes. According to the National Oceanic and Atmospheric Administration (NOAA), Louisiana has been affected by an average of 5.8 weather related disasters in the past five years. These disasters have resulted in over $19 billion in losses. For car dealerships, natural disasters pose significant risks not only to inventory but also to the safety of employees and customers. National Preparedness Month is observed in September each year and is sponsored by the Federal Emergency Management Agency (FEMA). This initiative aims to raise awareness and encourages communities to take proactive steps to be ready for natural disasters when they arise. • Develop an Emergency Plan: It is essential for car dealerships to develop a comprehensive written emergency preparedness plan. This plan should outline procedures for various types of emergencies (e.g., hurricanes, floods, tornadoes, hail, etc.) and should include evacuation routes, shelter-in-place procedures, and communication protocols. Regularly review and update the emergency plan to account for new risks, changes in operations, and lessons learned from previous incidents. • Secure the Facility: Secure any loose items around the dealership that could become projectiles during high winds. Move vehicles to higher ground in case of flooding. Turn off all non-essential electrical current to the building(s) at the main circuit boxes, leaving on only power for alarm systems to operate. • Establish Communication Protocols: Clear communication is vital during an emergency. Establish protocols for notifying employees, customers, and local authorities about the dealership’s operational status. Multiple channels (e.g., email, text messages, social media, and the dealership’s website) should be used to communicate information quickly and effectively. • Train Employees: All employees should have regular training to ensure they are familiar with the written emergency plan and know how to respond in a crisis. If your dealership has safety & health or OSHA questions, please feel free to contact Risk Management Services’ Loss Prevention Department at 1-800-351- RISK (7475) or by email: LossPrevention@RMSLA.com. ENDORSED BY: The Following Tips Can Help Car Dealerships Prepare for Natural Disasters: EMERGENCY PREPAREDNESS FOR LOUISIANA CAR DEALERSHIPS
Highlights from LADA’s Action Packed 2024 BY KATHERINE CARVER, DIRECTOR OF EVENTS AND COMMUNICATIONS, LADA As we look back on 2024, LADA is proud to reflect on a year of impactful events that brought our dealer community together, advanced our advocacy efforts and supported meaningful causes. LADA REGIONAL MEETINGS: STATEWIDE ENGAGEMENT Leading up to the Louisiana State Legislature’s Regular Session, LADA hit the road for the annual LADA Regional Meetings. Traveling across the state, we hosted a series of luncheons where dealers gathered to hear critical legislative and regulatory updates affecting the industry. These meetings also served as an opportunity for fellowship and direct engagement with LADA staff and industry partners. DEALER DAY AT THE CAPITOL: A UNIFIED VOICE IN BATON ROUGE In March, over 80 dealers from across the state gathered in Baton Rouge for our annual Dealer Day at the Capitol. This year’s event was marked by an audience with newly-elected Governor Jeff Landry, during which we discussed key issues impacting Louisiana’s auto industry and the broader state economy. Attendees were also privileged to hear from Attorney General Liz Murrill, followed by discussions with Senate President Cameron Henry and Representative Michael Melerine on insurance reform, a critical issue for our industry. The day’s events not only underscored the power of a unified dealer voice but also provided valuable fellowship among our members. ANNUAL CONVENTION AT THE GREENBRIER In June, LADA hosted its highly anticipated Annual Convention at the historic Greenbrier Resort in West Virginia. Dealers, sponsors and their families enjoyed a weekend of networking, thought-provoking sessions and unforgettable activities. The convention reaffirmed the strength of our dealer network and provided an inspiring setting to explore the challenges and opportunities facing our industry. NATIONAL ADVOCACY: REPRESENTING LOUISIANA IN WASHINGTON In September, LADA sent a delegation to the National Automobile Dealers Association Washington Conference. Our representatives met with members of the Louisiana congressional delegation to discuss federal policies affecting the auto industry. These meetings reinforced the importance of Louisiana dealers’ voices in shaping national legislation and policy. CHARITY GOLF TOURNAMENT: DRIVING SUPPORT FOR THE NADA FOUNDATION This year’s Charity Golf Tournament was another resounding success, raising significant funds for the NADA Foundation Emergency Relief Fund. Held in conjunction with a VIP reception featuring distinguished guests, the event brought together dealers and sponsors to support a vital cause. A portion of the proceeds from the tournament will directly help dealership employees impacted by natural disasters — a testament to the generosity and community spirit of Louisiana dealers. As we close out 2024, we are grateful to our members, sponsors and partners who made these events possible. Your dedication and engagement fuel our efforts to strengthen Louisiana’s auto industry and support those in need. We look forward to another successful year in 2025! Compliance with all requirements within the FTC Safeguards Rule was due June 9, 2023. FTC SAFEGUARDS COMPLIANCE PACKAGE Cyber attackers have declared war on the auto industry Only 53% of polled auto dealers are confident in their security 17% of dealers experienced a cyber-attack or incident in the past year $740,144 average ransom amount demanded 84% of consumers polled would not purchase another vehicle from a dealership if their data was breached We´ve got you covered of dealers that chose to become compliant with the FTC Safeguards saw significant improvement of their security after those efforts. OCD Tech secures dealerships with services catered to your unique needs. of auto dealers that signed on for a year of our services have renewed for another year. 75% 100% Additional Benefits Meet security best practices Safeguard against a data breach Safeguard against a ransomware attack Ensure you qualify for cyber insurance coverage Reduce cyber insurance premiums Satisfy the majority of local state data protection and privacy laws BE SECURE NOT JUST COMPLIANT ftc@ocd-tech.com 7
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fisherphillips.com | 36 Locations attorneys can help you steer through the labor laws affecting the car ness. Since 1943, we have been the labor lawyers of choice for mobile dealers. Fisher Phillips is dedicated to helping the members e Louisiana Automobile Dealers Association with their labor and oyment legal matters. We’re driven to help you succeed. 201 St. Charles Avenue, Suite 3710 | New Orleans, Louisiana 70170 Phone (504) 529-3834 • Fax (504) 529-3850 Timothy H. Scott tscott@fisherphillips.com Our attorneys can help you steer through the labor laws affecting the car business. Since 1943, we have been the labor lawyers of choice for automobile dealers. Fisher Phillips is dedicated to helping the members of the Louisiana Automobile Dealers Association with their labor and employment legal matters. We’re driven to help you succeed. Timothy H. Scott Partner New Orleans | Boston 504.529.3834 tscott@fisherphillips.com fisherphillips.com | 36 Lo Our attorneys can help you steer through the labor laws affecting the car business. Since 1943, we have been the labor lawyers of choice for automobile dealers. Fisher Phillips is dedicated to helping the members of the Louisiana Automobile Dealers Association with their labor and employment legal matters. We’re driven to help you succeed. 201 St. Charles Avenue, Suite 3710 | New Orleans, Louisiana 70170 Phone (504) 529-3834 • Fax (504) 529-3850 Timothy H. Scott tscott@fisherphillips.com fisherphillips.com 201 St. Charles Avenue | Suite 3710 | New Orleans, LA 70170 With almost 600 attorneys in 41 offices across the United States and Mexico, Fisher Phillips is an international labor and employment firm providing practical business solutions for employers’ workplace legal problems. FISHER PHILLIPS LLP
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May 12-13 2025 Dealer Day at the Capitol 2025 marks our second event at Louisiana’s Capitol. Dealers from across the state gather together in our state’s capital city to meet with law makers and educate them on how our industry is a vital driving force of Louisiana’s economy. 2025 CALENDAR OF EVENTS June 11-15 2025 LADA Convention LADA's 86th Annual Convention will be held at the historic Grand Hotel Golf Resort & Spa in Fairhope, Alabama, June 11-15, 2025. Join us for an immersive experience where industry leaders gather to discuss the latest trends, innovations, and strategies in the automobile industry. LADA will host a legislative roadshow in August 2025. The roadshow's goal is to meet directly with our dealers and educate legislators about the critical role car dealerships play in the state's economy and their broader impact on Louisiana. This initiative aims to foster a deeper understanding of the industry's importance among policymakers. August Legislative Roadshow NextGen Retreat LADA is launching its official NextGen Dealer Program and will host a retreat designed to provide participants with industry insights, leadership skills, and the knowledge needed to navigate the evolving automotive market through workshops and networking opportunities. Charity Golf Tournament 13-14 October 2025 LADA’s Charity Golf Tournament benefitting the NADA Foundation’s Emergency Relief Fund is a can’t miss event. Through proceeds from the tournament, LADA is able to give back to this fund that has stepped in to help numerous Louisiana dealership employees after facing devasting loss from natural disasters. www.lada.org 18-28 2025 17-18 September 2025 20
Alliant Insurance Services Inc. miles.dixon@alliant.com alliant.com Capital Processing Systems Inc. mbaker@capital.email accesscps.com Central Oil & Supply bshell@central-oil.com central-oil.com Informativ affiliates@informativ.com informativ.com Insurance Office of America Dealer Practice Group mat.pope@ioausa.com www.ioausa.com The Purple Guys wendell.holmes@purpleguys.com www.purpleguys.com Welcome New Associate Members! LAUNCH YOUR SALES Boost Your Business by Advertising Here! (801) 676-9722 sales@thenewslinkgroup.com CONTACT US TODAY! 21
WE WANT TO HEAR FROM YOU! Lake Charles Toyota Supporting the SEAL Legacy Foundation Paretti Mazda of Covington Sponsoring Cancer Awareness of Louisiana (CALA) Holmes Honda Holding a Toy Donation Drive Giles Nissan Opelousas Hosting a Car Clinic with Hope for Opelousas Navarre Auto Group Sponsoring St. Louis baseball Throughout the year, we’re shining a light on the positive impact Louisiana auto dealers are making in their communities. From charitable contributions to community service, these stories showcase how local dealerships go above and beyond to support those around them. Through #LADealersDoGood, we aim to share these inspiring efforts and highlight the meaningful difference our dealers are making across the state. Share your stories with us by emailing cshahrdar@lada.org. HERE ARE JUST A FEW WAYS THAT LOUISIANA DEALERS ARE SUPPORTING THE COMMUNITY! 22
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