2026 • Issue 3 Official Publication of the Louisiana Automobile Dealers Association It’s Time to Crack the Op Code and Get It Right
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 Rick Barnett 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
A MESSAGE FROM THE PRESIDENT 5 Louisiana Dealers on the Hill Takeaways from the NADA Washington Conference By Coulter McMahen, President/CEO, LADA 8 Five Questions Every Dealer Should Ask Before Investing in New Technology By Hannis T. Bourgeois 10 It’s Time to Crack the Op Code and Get It Right By Jordan Jankowski, Chief Operating Officer, Armatus Dealer Uplift 12 Drive Your Business Forward 2027 Sponsorship & Advertising Packages Coming Soon! 14 What Went Right? The Question Worth Asking Before Planning for Next Year 17 The ROI of Safety Protecting Your People and Your Dealership Through Stronger EHS Compliance By Amanda Rawls, Vice President of Client Success, KPA 20 Louisiana Auto Outlook Q3 2026 2025-2027 EXECUTIVE COMMITTEE Patton Fritze Red River Chevrolet Chairman Rand Alford Alford Motors Inc. Vice Chairman, District 15 Ryan LeBlanc Sterling Automotive Group Treasurer, District 5 Kristie M. Hebert Arceneaux Ford Immediate Past Chairwoman Lawrence S. Searcy Jr. Walker Automotive District 8 Clint Hixson Hixson Autoplex of Alexandria District 16 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 Mignon LaBorde Administrative Assistant Jenny Leach Accountant CONTENTS ©2026 The Louisiana Automobile Dealers Association (LADA) | MBR Connect™. All rights reserved. Up To Speed is published four times per year 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 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 LADA. 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 (801) 676-9722. 4
A MESSAGE FROM THE PRESIDENT Louisiana Dealers on the Hill Takeaways from the NADA Washington Conference BY COULTER McMAHEN, PRESIDENT/CEO, LADA I’ve said it before, and I’ll keep saying it: The best lobbyist this industry has is a dealer. A congressional staffer can skim a white paper in 30 seconds. What they remember is a dealer telling them what a bill does to their employees, their customers and their town. That’s why nine of us went to the NADA Washington Conference, Sept. 14-16, and spent two days on Capitol Hill making our case face to face. Representing Louisiana were Patton Fritze, our chairman; Ryan LeBlanc, treasurer; Mark Hebert, NADA state director; Brett Barker, NADA state PAC chairman; Keith Rutherford, ATD Isuzu line representative; John Connor Flick, our NextGen representative; Katherine Carver, director of communications and events; Claude Reynaud, general counsel; and me. We sat down with Congresswoman Julia Letlow and Congressman Cleo Fields, as well as the chiefs of staff for Speaker Mike Johnson and Congressman Clay Higgins. They were all clear on two things: They want to hear directly from you about what’s affecting your businesses. They recognize how much franchised dealers matter, not just nationally but in your hometowns and across Louisiana. The foremost topic of discussion throughout the whole trip was keeping vehicles and technology controlled by China and other foreign adversaries out of the American market. It matters to every rooftop in Louisiana. We also got a straight read on November from one of the country’s best election analysts. Let’s dive in more. THE CONNECTED VEHICLE SECURITY ACT The Connected Vehicle Security Act of 2026 was introduced by Senator Bernie Moreno (R-Ohio) and Senator Elissa Slotkin (D-Michigan). In the House, the bill is carried by Congresswoman Debbie Dingell (D-Michigan) and Congressman John Moolenaar (R-Michigan), chairman of the House Select Committee on the Chinese Communist Party. You’d be hard-pressed to find anything more bipartisan moving in Washington right now. This bill would keep vehicles built or controlled by China, Russia, North Korea and Iran out of this country. It bans the import, manufacture and sale of those vehicles, along with connected software and hardware tied to those countries. It also writes into law, and expands, the connected vehicle rule the U.S. Department of Commerce finalized in 5
January 2025, so a future administration can’t undo it with the stroke of a pen. Senator Moreno and Congresswoman Dingell both spoke at the NADA Washington Conference. Moreno spent his career as a dealer before he ran for office, and it shows when he talks about this issue. He told CBT News in July that letting these vehicles in would be “committing industrial suicide, and that’s exactly what this bill is preventing.” Congresswoman Dingell has been in the auto industry’s corner as long as anybody in Congress. She and Chairman Moolenaar have been blunt: Chinese automakers win on forced labor, government subsidies and unfair trade, and their vehicles send data back to China. As she said, “I will never give up our leadership to China or any other country in the world.” Where It Stands The Senate bill, S. 4429, cleared the Senate Commerce Committee unanimously on July 22. The sponsors tried to pass it by unanimous consent in late September, and Senator Rand Paul (R-Kentucky) objected. Under Senate rules, one objection is enough to block it. The sponsors are negotiating with him, and the next chance comes when the Senate returns after the election. The House companion, H.R. 8730, was filed May 11 and still has to clear three House committees. Senator Moreno has said that the job now is to get the House and Senate on the same page. If it doesn’t pass by the end of the year, it starts over. Why It Matters to Your Store Look at what’s happened in Europe, Mexico, Australia and South America, and what is happening in Canada: Chinese brands backed by government money have grabbed market share quickly, and companies without that kind of backing can’t compete on price. Every one of you has millions tied up in facilities, inventory and people. That investment depends on a fair fight. NADA President and CEO Mike Stanton has driven these vehicles and doesn’t knock their quality or their price; his concern, and mine, is that they aren’t competing on a level playing field. There’s also a national security problem. Today’s vehicles carry cameras, microphones, GPS and sensors, and they communicate with external networks and receive software updates over the air. Chairman Moolenaar calls them “rolling data collection devices.” Chinese law requires that country’s automakers to cooperate with its state security and intelligence services when asked. That would give a foreign adversary a window into where Americans drive and what our roads, ports and bases look like, plus a way to push code to vehicles on our highways. The information on the folks who buy from you has no business ending up in Beijing. There’s still work to do on the language. In committee, Commerce Chairman Ted Cruz warned that the bill’s 15% Chinese ownership test could sweep in Mercedes-Benz, and that the bill won’t get through the full Senate with that test in it. Two Chinese investors, state-owned BAIC and Geely founder Li Shufu, together own just under 20% of Mercedes. Senator Moreno, who owned a Mercedes-Benz dealership outside Cleveland and whose son is still a Mercedes dealer, said that isn’t the intent and that Mercedes would have until 2030 to make changes or seek a waiver. Volvo is a bigger problem on paper. China’s Geely owns nearly 80% of it. Commerce let Volvo keep selling under the current rule after talks over how it handles data, but it wouldn’t authorize Volvo’s sister brand, Polestar, which is also Geely-owned, so Polestar will stop selling new cars in the U.S. starting with the 2027 model year. Moreno told dealers worried about their franchises, “Your franchise is not going to go away. Volvo will figure it out. Mercedes will figure it out.” Several brands our members sell have Chinese investors or build some models in China, so we’ll be watching the final language closely. LADA supports this bill the same way NADA does: We back its goals, but the ownership issues for Mercedes-Benz and Volvo have to be worked out in the final bill, because we have Louisiana dealers selling those brands. NADA is working with lawmakers and automakers on the final language so dealers don’t get caught in the crossfire. And if a Chinese brand ever comes here on fair terms through the franchise system, NADA has said it would stand behind the dealers who sell it, just like any other brand. What we won’t accept is anybody going around the franchise system. 6
THE ELECTIONS At the Washington Conference, we also heard from Dave Wasserman, senior editor and elections analyst at the Cook Political Report. There’s not a more respected numbers man in the business, and what he told the room lined up with what you’ve been reading. The House Dave’s read was that the House is very likely to change hands, and Cook’s ratings since then point even harder that way. On Oct. 9, Cook moved 18 House races toward Democrats and pegged them at 224 seats to 234. It takes 218 for a majority, and by that math, Democrats needed only about one in five of the toss-ups to get there. A week later, on Oct. 16, Cook moved 11 more races toward Democrats, many of them in districts President Trump carried by double digits, although Republicans are still favored in eight of the 11. The real question is by how much. Dave’s point was that even a strong Democratic year may not look like 2018, because the map has fewer swing seats than it used to. By Cook’s count, the number of truly competitive districts fell from 87 to 77 after redistricting. Redistricting itself can cut both ways. Ten states redrew their maps mid-decade. Republicans came out ahead on paper, but by less than many expected. Indiana’s Senate voted its map down, South Carolina’s effort fell flat, and California and Utah went the other direction. In a year like this, some of those extra seats may not hold. Louisiana was part of that story. After the Supreme Court’s Callais decision in April, the Legislature drew a new map with one majority-Black district instead of two. The Senate The Senate is a different animal. Republicans hold 53 seats, so Democrats need a net gain of four. A year ago, that looked out of reach. Now Cook has North Carolina leaning Democratic and six Republican-held seats rated as toss-ups: Alaska, Iowa, Kansas, Maine, Ohio and Texas. Yes, you read that right: even Texas is in play. It hasn’t sent a Democrat to the Senate in more than 30 years, and in August, Cook moved the Paxton-Talarico race to a toss-up. Here at home, the Senate seat is open. Senator Bill Cassidy finished third in the May Republican primary, and Congresswoman Letlow beat State Treasurer John Fleming in the June runoff, so the November race is between Letlow and Jamie Davis, the Democratic nominee. Cook rates it as solid Republican. Louisiana’s House Races Election Day is Tuesday, Nov. 3. In Louisiana, that’s the general election for U.S. Senate and an open, all-party primary for all six House seats under our new map. Any House race where nobody clears 50% goes to a runoff on Saturday, Dec. 12. The 5th and 6th Districts are the races to watch. Both are open seats, both lean Republican under the new map, and both drew a crowd. The 5th opened up when Congresswoman Letlow ran for the Senate. Six Republicans are running, including state Senator Stewart Cathey Jr., state Representative and House Majority Leader Michael Echols, state Representative Gabe Firment and Board of Regents Chair Misti Cordell. State Representative Pat Moore is among three Democrats in the race. The 6th District was redrawn after Callais to favor a Republican, and Congressman Cleo Fields is not on the ballot. State Senators Rick Edmonds and Blake Miguez are the biggest names among six Republicans. Pat Forbes, a longtime state official endorsed by former Governor John Bel Edwards, is one of three Democrats, and there’s a Libertarian too. With nine and 10 names on those ballots, it’s hard for anybody to clear 50% on Nov. 3. LSU’s Robert Hogan has pointed out that with this many Republicans splitting the vote, Democrats see an opening. Don’t be surprised if one or both go to a Dec. 12 runoff, and if the House majority comes down to a handful of seats, Louisiana could be one of the last places it gets settled. What It Means for Louisiana This is the part I want every dealer to think about, whoever you vote for: Right now, two Louisianians, House Speaker Mike Johnson and Majority Leader Steve Scalise, hold the two most powerful jobs in the U.S. House. For a state with six House seats, that’s an outsized amount of clout. The Speaker and the Majority Leader decide what comes to the floor and when. If the House flips, those jobs go to the other party, and Congressman Troy Carter, if he’s reelected, would be serving in the majority. Despite the unfortunate partisanship in Washington, our delegation works well together, and that won’t change no matter who holds the gavel. A change in leadership still resets the calendar. That’s why the weeks right after Nov. 3 matter so much for a bill like the Connected Vehicle Security Act, and it’s why LADA works both sides of the aisle. Relationships with both parties are how we protect your business no matter who’s in charge. Here’s my ask: The lame-duck session after the election is this bill’s last shot this year, and it comes with a short calendar and a long to-do list. If you know your congressional representative or one of our senators, give them a call that week and tell them you want the Connected Vehicle Security Act passed this year, with ownership language that doesn’t catch the brands our members currently sell. A call from a dealer back home carries more weight than anything I can send; if you want talking points, email me at cmcmahen@lada.org. In closing, our trip to this year’s NADA Washington Conference reinforced what I said at the top: When dealers show up and tell their story, Washington listens. What gets decided there in the next few months, both on this bill and at the ballot box, will reach every showroom in Louisiana, and LADA will keep working both sides of the aisle to make sure your voice is in the room. None of this happens without our members. Thank you for the support that makes it possible for LADA to show up in Washington and speak on your behalf. We are proud to represent you. 7
Technology continues to reshape the dealership industry, offering new opportunities to improve operations, enhance the customer experience and increase efficiency. However, not every technology investment delivers the expected return. Before committing to a new solution, dealership leaders should take a step back and evaluate whether the investment aligns with their business objectives. 1. What problem are we trying to solve? The most successful technology investments begin with a clearly defined business need. Whether the goal is improving customer communication, reducing administrative work, enhancing reporting capabilities or streamlining workflows, understanding the problem helps ensure the solution addresses a real challenge rather than simply adding another system. 2. How will we measure success? Before implementation, establish measurable objectives. Metrics such as increased productivity, reduced processing times, cost savings or improved customer satisfaction can help determine whether the investment is delivering value. 3. What are the total costs? The purchase price is only part of the equation. Dealerships should also consider implementation expenses, employee training, system maintenance, subscription fees and potential upgrades. Understanding the full cost of ownership provides a more accurate picture of the investment's long-term impact. 4. Will it work with our existing systems? Technology often delivers the greatest value when it integrates effectively with current platforms. Evaluating compatibility before making a purchase can help avoid inefficiencies, duplicate data entry and unexpected operational challenges. 5. Who will be responsible for implementation? Even the best technology can fall short without clear ownership. Assigning responsibility for implementation, training and ongoing oversight can improve adoption and increase the likelihood of achieving desired results. Ultimately, successful technology investments are driven by strategy rather than trends. By asking the right questions up front, dealerships can make more informed decisions and improve their chances of realizing meaningful value from new technologies. At Hannis T. Bourgeois, we understand that technology is changing the way dealerships operate, creating both new opportunities and new risks. Whether evaluating business processes, strengthening internal controls or addressing cybersecurity concerns, our team works with dealership clients to develop practical solutions that support operational efficiency and long-term success. If you have questions about how technology-related risks may be affecting your dealership, call us at (225) 928-4770 or visit htbcpa.com to connect with one of our professionals. FIVE QUESTIONS Every Dealer Should Ask Before Investing in New Technology BY HANNIS T. BOURGEOIS 8
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?® Thomas Ballard, thomas.ballard@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. 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?® Thomas Ballard, thomas.ballard@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.
It’s Time to Crack the Op Code and Get It Right BY JORDAN JANKOWSKI, CHIEF OPERATING OFFICER, ARMATUS DEALER UPLIFT There are financial and performance implications for using miscellaneous operation codes, and fixed ops leaders should establish clear expectations that advisors select the most accurate operation code for every repair order. It’s a simple message: The miscellaneous operation code is no longer the default choice. Advisors should select the appropriate operation code from the approved list for every transaction. In a modern dealership service department, the operation code is not simply a bookkeeping label attached to a repair order. It is one of the fundamental pieces of data used to determine who paid for the work, what work was performed, how it should be accounted for, how technicians were paid, how the department is measured and, in many cases, what the OEM will reimburse. When op codes are inconsistent, duplicated, outdated or misunderstood, the resulting damage can extend far beyond an untidy DMS screen. It can distort management reports, misclassify revenue, complicate warranty reimbursement, affect technician productivity calculations, make customer-pay performance look better or worse than it really is, obscure opportunities, and, perhaps most importantly, cause dealership leaders to make decisions based on data that isn’t telling the truth. That is a much bigger problem than a messy menu. When it comes to a warranty reimbursement submission, some approaches rely heavily on op codes to decide which repair orders qualify, so they inherit every coding error. While state-of-the-art software can work around bad op code usage, there are still many other reasons to clean up this very prevalent issue. 10
The hidden problems of poor op-code discipline: • Loss in warranty reimbursement • Incorrect financial reports • Distorted technician productivity • Visibility into what’s actually happening • Bad data becomes institutional knowledge • Customer experience suffers The argument for op-code cleanup isn’t really about codes. It’s about trusting the data used to run the dealership. Fixed-operations leaders are being asked to make increasingly sophisticated decisions about capacity, retention, pricing, staffing, technician productivity, warranty reimbursement and customer-pay growth. The modern fixed-operations department has no shortage of challenges. Dealers are fighting independent repair shops for aging vehicles. Customers are more price-sensitive. Service retention is under pressure. Technician recruitment remains difficult. OEM warranty requirements can be complicated. And dealership leaders are being asked to squeeze more productivity and profitability out of every bay, technician and customer relationship. The objective shouldn’t be to create the fewest op codes possible. It should be to create a system in which every operation has a clear purpose, every employee knows how to use it, every major revenue category is accurately represented, and dealership leadership can trust what the data is telling them. Because the real danger isn’t having too many op codes. The real danger is believing your reports are telling you the truth when they aren’t. And for a fixed-operations department responsible for millions of dollars in annual revenue, that’s a problem leadership can no longer afford to ignore. 01MK8375 01/26 Louisiana Blue gave me a care manager who works on our behalf. She’s wonderful. With her, you feel like you have somebody in your corner. Right Card. Right Care. Central “ “ 11
2026 SPONSORSHIP OPPORTUNITIES DRIVE YOUR BUSINESS FORWARD 2027 SPONSORSHIP & ADVERTISING PACKAGES COMING SOON! Connect with Louisiana’s dealer community, build lasting relationships and put your business in the spotlight. Be on the lookout for LADA’s upcoming 2027 Sponsorship Opportunity Guide & Advertising Packages. Our sponsorship package features opportunities to support signature events, including: • Annual Convention • Charity Golf Tournament • Legislative Roadshow • NextGen Summit • Dealer Day & Annual Meeting Our advertising package offers placement in Up To Speed, giving your business another way to reach dealership leaders and strengthen brand recognition. Whether you’re a longtime supporter or getting involved for the first time, make LADA part of your plans. If you have questions about the 2027 Sponsorship & Advertising Packages, please email Alexandria at ahughes@lada.org. 12
As the year winds down, it’s natural to think about what needs to change. What didn’t get done? Which projects fell behind? What problems kept coming up? What would you like to do differently next year? Those questions have their place. But before you start making a list of everything that needs to be fixed, there’s another question worth asking: What went right this year? Challenging yourself to keep growing and improving can be a good thing, but before you set your sights on where you want to go next year, consider where you are now and the things you accomplished to get here. Taking time to reflect on what went right this year offers a useful perspective — and may reveal lessons worth carrying into the new year. WHAT BECAME EASIER? Think back to the beginning of the year. What tasks or responsibilities feel more manageable now than they did then? Maybe you learned a new system or mastered a process that once seemed complicated. You may have gotten better at managing your calendar, communicating with customers or clients, delegating work or handling a particular responsibility. Those improvements don’t always feel significant while they’re happening. Often, we simply adjust and move on. But if something that used to take an hour now takes you 20 minutes, that’s a success worth recognizing. So is knowing how to handle a situation that would have left you scrambling a year ago. Not every accomplishment comes with a certificate or a line on a performance review, but acknowledging your own progress can be just as beneficial. WHAT PROBLEMS DID YOU SOLVE? Some of the year’s biggest accomplishments may be easy to overlook, because they’re dressed up as problems you no longer have. From tedious tasks to persistent misunderstandings, once a bothersome problem is solved, it can be easy to forget how much of your time, attention and mental energy it used to consume. Take a moment to identify a few of those problems, then ask yourself what actually solved them. Was it a new tool? A change in expectations? Better questions? Reflecting on what worked may be useful the next time a similar problem appears. WHICH RELATIONSHIPS GREW STRONGER? Professional accomplishments aren’t measured only in projects completed or numbers achieved. Relationships with colleagues, customers and community members matter just as much as sales or revenue. Think about the people you’ve worked with this year. Did you develop a stronger relationship with a colleague? Did you meet someone who became an important professional connection? Were you involved in mentorship, or did you simply get to know the people on your team a little better? Like any good relationship, a strong professional connection is more likely to develop over time than all at once. Answering a question, offering help, following through on a promise, sharing credit or taking the time to listen — these seemingly small moments add up to something larger over time. The relationships you formed or strengthened this year may not appear on any year-end reports, but they can have a lasting effect on how work gets done. WHAT DID YOU LEARN? Not every lesson comes from success. In fact, some of the most useful things we learn in life come from situations that didn’t go according to plan. What Went RIGHT? The Question Worth Asking Before Planning for Next Year 14
Maybe you discovered that a particular approach doesn’t work. Maybe you learned to ask more questions before starting a project, communicate earlier when something is going wrong or allow yourself more time than you think you’ll need. Lessons learned from lived experience may not always feel like accomplishments, but you’ll remember them longer than any takeaway from a class or seminar. Instead of looking solely at what you achieved this year, consider what you learned. What do you know now that you didn’t know in January? That wisdom represents growth, even if it doesn’t fit neatly into a goal-setting spreadsheet. WHAT SHOULD YOU KEEP DOING? Once you’ve identified some of the things that went right this year, look for patterns. Maybe the projects that went particularly well had something in common. Maybe your best work happened when you had fewer competing priorities. Perhaps a particular habit — better planning, clearer communication or simply making time to focus — consistently made things easier. Those observations can be more useful than a generic list of resolutions. Before you ask, “What should I start doing next year?” ask yourself, “What is already working that I want to continue?” Sometimes moving forward means doing more of what’s already working. WHAT SURPRISED YOU? Finally, think about the things that happened this year that you didn’t expect. Maybe an unexpected opportunity turned into one of your most rewarding projects. Maybe a challenge led to an improvement you wouldn’t have made otherwise, or a chance encounter grew into a valuable professional connection. Not everything of consequence can be planned in advance. Looking back at the unexpected parts of the past year can remind us to allow for flexibility in the next one. Goals and plans are useful, but so is the ability to recognize — and seize — a fleeting opportunity. TAKE THE GOOD WITH YOU Looking back doesn’t mean pretending everything went perfectly. Every year comes with its share of frustrations and missed opportunities, but focusing on those at the expense of your accomplishments is an exercise in pessimism. Before you close the book on this year, take a few minutes to recognize what worked. Think about what became easier, which problems you solved, who helped you along the way, what you learned and which habits or practices are worth carrying forward. Then, when you’re ready to start thinking about what comes next, you’ll have more than a list of things to fix. You’ll have a better understanding of what you already do well — and a foundation you can build on in the year ahead. Glen LaBorde, CPA, CGMA Partner, Audit + Assurance htbcpa.com Driving Dealership Performance Forward. Providing Dealers Across Louisiana with: Audit + Assurance Consulting Outsourced Accounting Tax Planning + Preparation Wealth Management PROUD MEMBERS 15
PRIORITIZING DRIVING SAFETY ACROSS DEALERSHIP OPERATIONS Louisiana Automobile Dealers face significant driving exposure in everyday operations (i.e., taking a customer on a test drive, conducting a service road test, delivering parts, transferring vehicles between locations). Since the vast majority of dealership driving occurs on local roads that are familiar, employees may become complacent and, in turn, be more susceptible to distractions. According to data from the U.S. Bureau of Labor Statistics (BLS), motor vehicle accidents (MVAs) are the leading cause of work-related fatalities, accounting for 4 out of every 10 deaths on the job. Furthermore, research from the National Council on Compensation Insurance (NCCI) reveals that MVAs are the costliest type of lost-time workers’ compensation claim, averaging over $100,000 per claim, which is 70% more than the average lost-time claim across all other injury types. It is essential for Louisiana Automobile Dealers to instill the importance of safe driving habits and provide all employees with safety training and reminders throughout the year. DRIVING SAFETY TIPS Management should implement these essential practices and incorporate them into your dealership’s safe driving policy. Before You Drive • Fasten your seat belt and ensure all passengers do the same. • Adjust your seat and mirrors before shifting into gear. • Walk around the vehicle to check for obstacles, pedestrians, or damage. • Secure loose parts, packages, and tools so they won't shift while driving. • If you're unfamiliar with the route, review directions before leaving. Stay Focused • Never text, email, or use your phone while driving. • Program GPS before you begin your trip. • Keep both hands on the wheel at all times. • Maintain a safe following distance. • Obey posted speed limits, even when running behind schedule. • Avoid handling food, beverages, or anything that removes hands from the steering wheel. Service Road Tests • Follow a designated route utilizing right-hand turns as much as possible. • Keep the driver's focus on safe vehicle operation. When needed, a second technician can monitor noises, handling, and dashboard warning lights during a road test. • Return to the dealership if additional inspection is needed. Do not attempt to do an under-the-hood inspection or repair on the shoulder of the road. IMPORTANCE OF DRIVING RECORDS Before allowing any employee to drive a company or customer vehicle, dealerships should regularly review their Motor Vehicle Report (MVR). Annual MVR checks and pre-hire screening ensure only qualified drivers represent your dealership. MVR reviews are a first line of defense against liability and high workers' compensation costs. Risk Management Services LLC is committed to helping Members manage risks efficiently and effectively by providing practical health and safety recommendations. If your dealership has questions about driving safety, implementing a safe driving policy, or joining the LADA-SIF, contact Jean Robért at 1-800-351-RISK (7475) or by email at JRobert@RMSLA.com.
The ROI of Safety Protecting Your People and Your Dealership Through Stronger EHS Compliance BY AMANDA RAWLS, VICE PRESIDENT OF CLIENT SUCCESS, KPA Every dealership leader I talk to cares about their people. That’s never the question. The question is whether your environmental health and safety (EHS) program is actually set up to protect them, day in and day out, in ways that hold up when OSHA shows up or an employee gets hurt. After years working alongside dealerships on their safety and workplace safety programs, I’ve seen the same truth play out again and again. Caring about your team and protecting your bottom line are not two different goals; they’re the same goal. A strong EHS compliance program keeps people safe and keeps your dealership financially healthy. Here’s what that looks like in practice, and what’s changed in 2026. YOUR EX-MOD REFLECTS HOW WELL YOU’RE CARING FOR YOUR PEOPLE Your Experience Modification Rate, or Ex-Mod, is one of the clearest signals of how well your workplace safety program is actually working. It compares your workers’ compensation loss experience to what’s expected for a business like yours. A rate of 1.00 is the benchmark. Below that, you’re protecting your team better than expected. Above it, both your people and your business are absorbing the cost. The formula is straightforward: Take your number of indemnity cases, divide by your average employee count, multiply by 100, then divide by the Bureau of Labor Statistics incident rate for your NAICS code. A dealership with just two wage-replacement claims and 70 employees can end up with an Ex-Mod of 3.57, far above where anyone wants to be. That number carries real weight. On a $100,000 manual workers’ comp premium, a 0.80 Ex-Mod brings your cost down to $80,000. A 3.57 Ex-Mod pushes it to $357,000. Same dealership, same headcount, but an entirely different financial reality. Every incident you prevent through good occupational safety practices is a person who goes home whole and a cost your business never has to carry. UNDERSTANDING OSHA COMPLIANCE: WHY INSPECTIONS HAPPEN OSHA inspections usually aren’t random, and understanding what triggers one is part of proactively taking care of your people. Visits occur for three reasons: imminent danger, such as severe injuries and fatality investigations; complaints or referrals; and programmed inspections. That third category deserves your attention, because OSHA currently prioritizes hazardous industries and employers showing a high volume of workers’ compensation claims. In other words, the same gaps driving up your Ex-Mod are often the same gaps drawing regulatory scrutiny. The most common OSHA citations dealerships are facing right now point to everyday hazard areas: fall protection, hazard communication, ladders, lockout/tagout, respiratory protection, scaffolding, powered industrial trucks, eye and face protection, and machine guarding. Each one represents a place where a simple safeguard, a clear procedure or a bit of training could have kept someone from getting hurt. The penalties for falling short are significant. In 2026, a serious violation can carry a penalty of up to $16,550. A willful violation can reach $165,514. Failure to abate a known hazard adds up to $16,550 per day it remains uncorrected. We’ve watched this play out with real dealerships. One was recently cited 17
for $78,000 in penalties across six violations: missing eyewash stations, damaged electrical cords, outlets in wet areas, missing signage and gaps in training. Another was fined $25,000 after an employee slipped on an oily floor, compounded by a missed 24-hour reporting window for the resulting hospital stay. A third paid $10,000 for not having accessible safety data sheets in the detail department, a gap that also meant employees hadn’t completed hazard communication training. If your dealership does receive a citation, you generally have two paths forward: requesting a reduction in severity from serious to other-than-serious, or requesting a reduction in the fine itself. An inspector is unlikely to grant both. What genuinely helps, both for your team and for your standing with OSHA, is showing real remediation and a credible plan to prevent it from happening again. INJURY PREVENTION STARTS BELOW THE SURFACE I like to think of workplace injury prevention as a pyramid. For every serious injury or fatality at the top, there are roughly 10 lost-time incidents, 100 medical-only cases, 1,000 near misses, and 10,000 unsafe behaviors or hazards underneath. The incidents at the top get documented. The ones at the bottom, where there is real opportunity to protect people’s lives, usually don’t. In automotive injuries specifically, strains and sprains account for close to a quarter of injuries, followed by lacerations and punctures, bruises and contusions, and a large “unknown” category that suggests there’s still room to strengthen how incidents are investigated and recorded. Based on our work with dealerships across the country, three categories consistently drive the most significant claims, and each one is something we can address together: • Slips, trips and falls: Keep walking surfaces clear, clean spills right away, repair uneven surfaces, secure rugs and mats, require appropriate footwear and make sure lighting and stairwell handrails meet the OSHA standard. • Improper lifting: Assess the load before moving it, use mechanical assistance when available, maintain a stable stance, bend at the knees, lift smoothly and carry the load close to the body without twisting. • Auto accidents: Seat belt policies, posted speed limits, driver training, defined test drive routes and mirror checks for blind spots all meaningfully reduce risk. Dealers across Louisiana reduced the total incurred cost from roughly $659,000 in 2023 to $163,000 in 2025, even as incident counts remained fairly steady, largely by tightening these everyday practices. The thread running through all of it is the same five-part framework we encourage every client to build around: leadership commitment, worker participation, an effective reporting system, thoughtful investigation and analysis when something happens, and genuine follow-through on corrective action and communication. Safety programs work best when people feel supported enough to speak up, not just told to comply. WHAT’S NEW IN EHS REGULATION OSHA renewed its National Emphasis Program on Heat Illness in April 2026, effective for five years. It now explicitly covers Automotive Repair and Maintenance (NAICS 8111) and Other Motor Vehicle Dealers (NAICS 4412), while removing New Car Dealers and Automotive Parts Stores from its scope. The program addresses both indoor and outdoor heat-related workplace hazards and establishes heat-priority days when the heat index is expected to reach 80 degrees or higher. OSHA is currently enforcing this through the General Duty Clause, and it’s widely seen as the foundation for a forthcoming federal heat illness rule. Mobile repair technicians deserve extra care and attention, too. Unlike a technician working in your shop, a mobile technician doesn’t control their environment. Uneven surfaces, traffic and missing safety equipment all raise their risk. Look after them by ensuring they’re equipped with proper PPE, high-visibility vests, portable fire extinguishers, first-aid kits, traffic cones, wheel chocks, spill kits and safety data sheets. And if third parties work in your dealership, whether it’s a detail crew or a mobile service provider, put your shared safety responsibilities in writing. We’ve seen this matter in practice more than once, when a third-party employee understandably expects the same protection as your own team. SAFETY IS HOW WE TAKE CARE OF OUR PEOPLE A strong EHS compliance program isn’t a box to check. It’s how we show our teams, every single day, that their well-being matters as much as the work they do. It also happens to protect your Ex-Mod, your OSHA standing and your bottom line. When you invest in workplace safety, you’re investing in the people who make your dealership run. If you’d like to talk through where your dealership stands, our team of EHS experts at KPA is here to help. Amanda Rawls specializes in regulatory and compliance solutions and serves as an account manager for various large and small auto groups, including Group 1 Automotive and Hendrick Automotive Group. Prior to KPA, Amanda earned a Master of Environmental Management (MEM) and a degree in environmental science from Texas Christian University. Caring about your team and protecting your bottom line are not two different goals; they’re the same goal. 18
What will tomorrow look like? hubinternational.com Scan the QR code to learn more. It may not be what you expected. With HUB, you have a partner who is committed to supporting and protecting you, assisting to align business and personal goals to protect your profits and drive organizational vitality and resilience. Risk & Insurance | Employee Benefits | Retirement & Private Wealth David W. Alligood, Senior Vice President Office: 225-218-2410 david.alligood@hubinternational.com YOUR LOUISIANA MARKETPLACE MORE LOCAL EXPERTISE. MORE BUYER DEMAND. MORE OPPORTUNITY. Wherever you choose to sell, we’re here to support your success. That said, we’d love for Louisiana dealers to consider keeping business close to home. Selling with Manheim Lafayette and Manheim New Orleans means more buyers, more competition and stronger returns, plus a team that understands the Louisiana market and is committed to helping you get more from every vehicle. MANHEIM LAFAYETTE 1611 St. Mary Street Scott LA 70583 Sale Day: Thursday | 9:30am CT MANHEIM NEW ORLEANS 60177 St. Tammany Avenue Slidell LA 70460 Sale Day: Wednesday | 9:00am CT GET MORE FROM EVERY SALE Contact Delaney Higgins today: 239-383-3147 19
157,776 160,072 171,162 173,600 2023 Actual 2024 Actual 2025 Actual 2026 Forecast Third Quarter 2026 Released October 2026 Market Summary Forecast for State New Retail Light Vehicle Registrations UP 4.2% vs. ‘22 UP 1.5% vs. ‘23 UP 6.9% vs. ‘24 UP 1.4% vs. ‘25 Louisiana Auto Outlook Coverage of the Louisiana new vehicle market TM 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 2023 to 2025, and Auto Outlook’s projection for 2026. Historical data sourced from Experian Automotive. YTD '25 YTD '26 % Chg. Mkt. Share thru Sep. thru Sep. '25 to '26 YTD '26 TOTAL 129,319 130,673 1.0% Car 19,016 20,135 5.9% 15.4% Light Truck 110,303 110,538 0.2% 84.6% Domestic 63,548 61,312 -3.5% 46.9% European 7,846 7,022 -10.5% 5.4% Japanese 42,277 45,084 6.6% 34.5% Other Asian 15,648 17,255 10.3% 13.2% FORECAST State New Vehicle Market Expected to Drift Lower in 2027 Below is a list of four primary questions and answers regarding the Louisiana new retail light vehicle market. How has the state market performed so far this year? State new light vehicle registrations increased 1% during the first nine months of 2026 versus the same period a year earlier. The U.S. market was off 4%. State 3Q ‘26 registrations were up 5.2% versus 3Q ‘25, an improvement from the 1% increase in 2Q. What’s the outlook for new vehicle sales over the next 15 months? Registrations for all of this year are predicted to exceed 173,000 units and increase 1.4% from 2025. The market has a chance to increase in the fourth quarter of this year versus relatively weak year-earlier results. Preliminary outlook for 2027: most determinants are pointing to a small decline next year (see right), although a slight increase is not out of the question. Which brands have posted gains? Among the top 20 selling brands in the state, new vehicle registrations increased for Nissan, Tesla, Kia, Ram, Toyota, Honda, and Ford so far this year. Tesla, Kia, and Nissan fared better in the state market than in the Nation (see page 4). What are recent trends in the alternative powertrain market? Expiration of the federal government BEV tax credits shifted demand from electric vehicles to hybrids. In addition, fuel prices have increased significantly since the start of the Iran war. Both are key factors boosting sales of hybrids. Hybrid market share increased to 10.7% in the third quarter of this year and year-todate registrations were up 17% versus 2025. Primary Factors Driving the Louisiana New Vehicle Market Affordability. Several key factors for affordability are moving in the wrong direction. Interest rates are increasing, tariffs are putting upward pressure on prices, and household incomes are not keeping pace with inflation. These issues are especially acute for lower-income consumers who own many of the older vehicles that are due for replacement. While higher-income households, buoyed by increasing net worth and stock market gains, have supported the market, any growth in new vehicle sales will be difficult to achieve when a significant portion of potential buyers are not actively in the market. Consumer sentiment. Consumers are increasingly downbeat on economic conditions. Vehicle sales rarely improve when consumer attitudes are weak. Economic growth and labor market. GDP growth has remained positive, employment gains have been respectable, and unemployment rates remain low, all of which are positive for the market. Heightened uncertainty. Continually changing federal government policies and geopolitical events have unsettled the new vehicle market. More stability would provide added clarity to the outlook, but that seems unlikely. 20
Page 2 Louisiana Auto Outlook 0.1% -3.4% 1.0% 5.2% -4.7% -8.0% -3.8% -0.6% Q4 '25 Q1 '26 Q2 '26 Q3 '26 State U.S. 42,002 46,135 3Q avg. ('21 to '25) Q3 '26 Louisiana Auto Outlook Published by: Auto Outlook, Inc. PO Box 390, Exton, PA 19341 Phone: 610-640-1233 EMail: autooutlook@icloud.com Editor: Jeffrey A. Foltz Information quoted must be attributed to Louisiana Auto Outlook, published by Auto Outlook, Inc. on behalf of the Louisiana Automobile Dealers Association and must also include the statement: “Data sourced from Experian Automotive.” At Auto Outlook, we strive to provide sound and accurate analyses and forecasts based upon the data available to us. However, our forecasts are derived from thirdparty data and contain a number of assumptions made by Auto Outlook and its management, including, without limitation, the accuracy of the data compiled. As a result, Auto Outlook can make no representation or warranty with respect to the accuracy or completeness of the data we provide or the forecasts or projections that we make based upon such data. Auto Outlook expressly disclaims any such warranties, and undue reliance should not be placed on any such data, forecasts, projections, or predictions. Auto Outlook undertakes no obligation to update or revise any predictions or forecasts, whether as a result of any new data, the occurrence of future events, or otherwise. KEY TRENDS IN LOUISIANA NEW VEHICLE MARKET STATE MARKET VS. U.S. Louisiana UP 1.0% U.S. DOWN 4.0% Data sourced from Experian Automotive. QUARTERLY RESULTS Data sourced from Experian Automotive. % Change In New Retail Market YTD ‘26 thru September vs. YTD ‘25 New retail light vehicle registrations in Louisiana increased 1% during the first nine months of this year versus year earlier. The U.S. market was off 4% QUARTERLY TREND Percent Change in Registrations vs. Year Earlier QUARTERLY PERSPECTIVE 3Q ‘26 Registrations Versus 3Q Average for Previous Five Years 3Q ‘26 registrations were above the previous five year average. The state market improved 5.2% in 3Q ‘26 vs. year earlier. U.S. was down less than 1%. 21
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