ISSUE 1, 2024‑2025 A PUBLICATION OF THE GEORGIA AUTOMOBILE DEALERS ASSOCIATION IN THIS ISSUE 2024 GADA Convention Highlights SPOTLIGHT ON 2024‑2025 GADA Chairman Bo Scott
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2024-2025 GADA Board of Directors Executive Committee Bo Scott Regal Nissan, Roswell Chair Marsh Butler Butler Automotive Group, Macon Chair-Elect David Jones Gerald Jones Auto Group, Augusta Secretary-Treasurer Charles Prater Prater Ford, Calhoun 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 Chad Nesmith Nesmith Chevrolet, Jesup Southeast Area Vice Chair Matt Laughridge Terry Reid Hyundai Cartersville NADA Director ISSUE 1, 2024‑2025 TABLE OF CONTENTS THE ©2024 The Georgia Automobile Dealers Association is proud to present The Generator as a benefit of membership in the association. No member dues were used in the publishing of this news magazine. All publishing costs were borne by advertising sales. Purchase of any products or services from paid advertisements within this magazine are the sole responsibility of the consumer. The statements and opinions expressed herein are those of the individual authors and do not necessarily represent the views of The Georgia Automobile Dealers Association or its publisher, The newsLINK Group LLC. Any legal advice should be regarded as general information. It is strongly recommended that one contact an attorney for counsel regarding specific circumstances. Likewise, the appearance of advertisers does not constitute an endorsement of the products or services featured by The newsLINK Group LLC. While The Generator 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. 4 2024-2025 GADA Board of Directors SPOTLIGHT ON 6 2024‑2025 GADA Chairman Bo Scott PRESIDENT’S MESSAGE 10 On My Mind By Lea Kirschner, GADA President and CEO MESSAGE FROM NADA DIRECTOR 12 NADA Notes By Matt Laughridge, NADA Director ATD CHAIRMAN’S MESSAGE 14 Tackling 2024 Priorities By Scott Pearson, ATD Chairman 16 2024 GADA Convention Highlights 22 Awards and Achievements HEADLIGHTS ON THE LAW 23 Be Careful What You Put in Writing, Even to GADA By Ben Jordan, GADA General Counsel & Director of Governmental Relations INSURANCE INSIGHTS 24 Cyber Liability Challenges By Shawn Presnell, GADA Managing Director of Insurance Services 26 Protect Your Dealership From Fraud and Cyber Threats Learn About the Latest Fraud and Cyber Threats, How To Defend Against Attacks and What To Do if You’re a Victim of Cybercrime By Truist Dealer Services 31 OSHA Targets Leading Cause of Weather‑Related Injuries with Proposed Heat Illness Regulation By Hao Nguyen Esq., Senior Product and Regulatory Counsel, ComplyAuto 34 Navigating OEM Applications with Expertise An Interview with John Hill By DSMA 36 Is It Time For a Trade‑In of Your Employee Handbook? By Tillman Coffey and Matt Simpson, Fisher Phillips 39 Georgia Auto Outlook Second Quarter 2024 GADA Staff General Administration Lea Kirschner, President Bill Morie, President Emeritus Ben Jordan, General Counsel/Governmental Relations Hau Le, Controller Surangi Moonesinghe, Assistant Controller Maria Yolova, Accounting/Membership Esther Castros, Accounting — Receivables/Payables 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 Felix Jackson, 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 3 THE GENERATOR
2024-2025 GADA Board of Directors BO SCOTT Chair Regal Nissan Roswell MARSH BUTLER Chair-Elect Butler Auto Group Middle Georgia DAVID JONES Secretary/Treasurer Gerald Jones Audi Martinez CHARLES PRATER Immediate Past Chair Prater Ford Calhoun JASON DENSON Area Vice Chair Ford of Dalton Dalton MIKE DOMENICONE Area Vice Chair Classic Cadillac Atlanta TIM REDDING JR. Area Vice Chair Dublin Ford Lincoln Dublin DANA MCCRACKEN Area Vice Chair Brannen Motor Co. Unadilla CHAD NESMITH Area Vice Chair NeSmith Chevrolet Jesup MATT LAUGHRIDGE NADA Director Terry Reid Automotive Cartersville SCOTT PEARSON Heavy Truck Rep. Peterbilt of Atlanta Jackson MIKE SULLIVAN Public Group Rep. Group 1 Automotive Columbus GRENE BARANCO MB of Buckhead Atlanta WILLIAM BRIDGES Capital Cadillac Marietta MIKE BURCH Mike Burch Ford Blackshear JESSICA CLAYTON MB of Columbus Columbus TREY DETTMERING John Thornton Chevy Lithia Springs DAVID FLOWERS Flowers Auto Group Thomasville LEHMAN FRANKLIN Franklin Chevrolet Statesboro JUSTIN FULLER Hardy Automotive Gainesville ROB GALLIK Toyota of Newnan Newnan BILL GIBBS Jim Hudson Automotive Augusta TED HAYES Hayes Chrysler Dodge Lawrenceville STACEY ELLIS HODGES Jim Ellis Automotive Metro Atlanta BILL HOLT Bill Holt Chevrolet Blue Ridge BILL HOWELL Billy Howell Ford Cumming MARK HOWELL Langdale Ford Valdosta WANDA HOWELL Cronic Auto Group Griffin FOREST HUTCHINSON Hutchinson Auto Group Albany JIM JACKSON Jackson Automotive Macon EMANUEL JONES Legacy Ford McDonough WESLEY MIDDLEBROOKS Heyward Allen Motors Athens CHIP O’STEEN O’Steen Volkswagen Valdosta AL PARK Spence Chevrolet Thomasville AUSTIN PUGMIRE Pugmire Lincoln Marietta RYAN REGNIER Rick Hendrick Group Metro Atlanta SPENCER THOMAS Grainger Nissan Savannah Congratulations to our 2024-2025 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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Once Bo graduated high school, he headed off to the University of Georgia. “College just wasn’t for me, so I joined the Marine Corps,” said Bo. After serving four years with the Marines, in 1990, Charlie asked Bo to come home and help with the store. “My dad put me through the ‘School of Hard Knocks,’” Bo recalled. “He had me work in every department — everything from porter, new car make-ready and parts driver to sales, used car sales manager, F&I manager, general sales manager and executive manager. I pretty much have done everything in a dealership except for collision.” The lessons he learned served him well, and today, Bo is a second-generation dealer at Regal Nissan (formerly Regal Datsun). Bo’s son, Holden, joined the family business as well and serves as the executive manager. “That has freed me up to pursue being more involved with GADA and NADA as well as pursuing new opportunities with Regal Ineos Grenadier, our new dealership, and serving on their dealer council” said Bo. On July 1, 2024, Bo started his term as GADA chairman. We recently had a chance to talk with Bo and learn more about his thoughts on the industry and his goals as chairman. The following are excerpts of our conversation. What are the biggest issues facing the auto industry? I think a couple of the biggest issues are the threats from direct sales that we see in a lot of states from new manufacturers. I think that’s something we need to be cognizant of and stay on the alert for. Legacy OEMs may be tempted to follow this pattern of direct sales. A lot of times, people don’t know the value of having a new car or a new vehicle representative in SPOTLIGHT ON Bo Scott was born in Orlando, Florida. At the time, Orlando was a small community surrounded by orange groves, swamps and farms where beef cattle were raised. The small community was shocked when a large, unnamed corporation started buying up millions of dollars of farmland in the Orlando area. Speculation grew as to who needed so much land and what they might do with it. Then, on Nov. 15, 1965, Walt Disney himself arrived in town and announced his plans to build the world’s most magnificent theme park. Soon after, Charlie Scott, Bo's dad, sought out a new opportunity selling cars with Key Buick in Jacksonville. Charlie was good at his job, and the company moved him to a number of locations and states over the years. By the time Bo was 15, the family had moved 13 times. Through all of the moving and change, Charlie made sure that Bo understood the value of family and a hard day’s work. “I recently found a copy of the first paycheck I earned. I picked up cigarette butts all day from the car lot with a 5-gallon bucket. That was quite a job, and I earned $3.00, which was a lot of money for a kid in the 70s,” said Bo. Then in 1980, Charlie had the opportunity to open a Datsun store in Roswell, Georgia. Bo helped out by putting tags on cars as they rolled off the back of the truck, pulling weeds and anything else that needed to be done around the dealership. 2024‑2025 GADA Chairman Bo Scott THE GENERATOR 6
their community until it’s gone. By then, they’re dealing with a monolith, and that certainly changes that dynamic. I’m concerned about EVs, not that they’re bad, but with the speed at which the government has accelerated the transition timeline. They haven’t thought through all the unintended consequences and have pushed manufacturers and retailers alike into doing things that may not necessarily be what the consumer wants or that the business is ready for. From an infrastructure standpoint, I don’t think we’re ready to be all EV by 2030 and certainly not ready for overland trucking or any of the other solutions that the government is pushing. We need to take a deep breath and realize the benefits of an internal combustion engine. I certainly understand being a caretaker and a steward of our environment, but I think there are some environmental impacts of EVs that we haven’t thought through. Why is the franchise system still the best way to sell cars? As far as cash flow goes, from a manufacturer standpoint, they don’t have to wait to retail the car to get their money; they get their money from us dealers, and then we retail the automobile. From a consumer standpoint, it’s best because they have a broad selection of cars they can choose from. They don’t have to order from a catalog and take delivery of the vehicle in six weeks. It’s a good system all around. The franchise system gives widespread coverage in a state like Georgia. For instance, if we allowed just direct sales and with a few outlets, a client may be dealing with a nameless, faceless entity that has no representation in their community. They would not have anybody to address problems or help them in any way. In many communities across our state, the local dealerships are the largest employers and drivers of local economies. It also affords consumers the opportunity to make the best deal. Whether dealers compete on price, trade-in or financing, it’s just a better way to sell or service cars. The consumer has choices, and it definitely is a benefit to them. How do you think the industry will change in the next 3-5 years? I think we’ll continue to see a consolidation — there may be a few more outlets, but they’ll be owned by fewer dealers. I am concerned about that. There are dealers that are aging and reaching retirement that may not have a second or third generation to take over, and mega dealers who own 40 and 50 different dealerships are buying up these dealerships. Some of the consolidation is a result of the pressures that are being placed on dealers, whether that be from government regulation, which is quite a lot, or financial pressures with their manufacturer partners. They just reach a point where it’s an exit strategy, and they’ll sell to a qualified buyer who will take over. How long have you been a GADA member, and why did you get involved in the association? Regal Nissan has been a GADA member since the store opened. When my dad 7 THE GENERATOR
and realize as dealers, we’re not alone. We have other members who may have experienced what we are experiencing — the troubles, tribulations or business pressures — and it’s a way for us to gather our resources and address problems, whether that be on the legislative front, the manufacturer front or in the relationship with our communities. What help do you need from members to accomplish those goals? Get involved and state the reason why you’re getting involved. Make sure your managers and fellow employees know why you’re getting involved. Oftentimes, we as leaders think people around us know why we are doing what we are doing. But, if we don’t tell them they can’t possibly know, they might just think GADA is an expense that they’ve got to cover when there’s a lot to it, and their jobs may be actually counting on it. It is especially important to state the case for GADA when another generation of dealers is coming behind them so they, too, can be prepared to be leaders in the industry. passed away in 2014, I went through some unpleasantness with my manufacturing partner. I had Lea, and others, hold my hand through that experience. I would say to her, “Hey, they’re doing this,” and she would say, “Well, they can say that they’re doing that, but they can’t do that.” I realized then the absolute value of GADA and was sold on it. I decided that I wanted to help other dealers and began serving on the board in 2015. With GADA, dealers have somebody on their side, that was what drove me to really want to serve on the board, and I’ve tried to remain very active and that has resulted in me becoming chairman. What do you see as the benefit of being a GADA member? Being a GADA member opens doors and provides opportunities to bounce ideas off of other dealers or gain ideas from them as well. Every meeting I go to, I try to jot down at least one or two ideas that I learned while I was attending the meeting. It could be in a conversation that I had or in a presentation that I sat through so I could implement them down the road. I remember, years ago, I was at a grassroots meeting for GADA and was with a dealer who shared an idea with me that saved me about $36,000 a year. I said to myself, “I’m going to start attending more of these meetings if I can add $36,000 a year to the bottom line from spending an hour or two.” Attending GADA events and meetings is valuable. What are your goals as chairman? My plan as chairman was summed up by the Greek physician Hippocrates when he said, “Do no harm.” In all seriousness, I want to work to continue the work of making the case that GADA is just as valuable today as it was 70 years ago, and it’s probably even more valuable today than it was 70 years ago. We certainly have a lot of issues facing us, and it is important for us to gather SPOTLIGHT ON 2024‑2025 GADA CHAIRMAN BO SCOTT THE GENERATOR 8
Have you had any mentors? What did you learn from them? My mentor was my dad. As I’ve tried to bring on a third generation of dealer, I refer to the things my dad did that were good. I remember my dad often saying, “We ride to success or failure on the shoulders of our people.” That is so true. I’ve got people on my staff who are better salesmen than me, who are better at all kinds of things than I am, and in some cases, even smarter than I am. As a dealer and a leader, you’re just a cheerleader and a coordinator. You’re not selling 150 cars; you’re cheering on those who are. When you mentor others, what advice would you share? The most important thing in life is family. The car business is not our life. Our lives are at home and consist of those who look up to us and watch us while we shave and wave goodbye when we get to get in the car to go to work. This job is an engine that helps drive the financial needs of our lives and keeping balance in our lives is vital for the people who are at home. Think about others. We have the opportunity every day to change somebody’s life as we’re dealing with a customer or another employee. We don’t always know what’s going on in their life, and we can turn around a negative circumstance and make things a little bit easier for them by simply doing the right thing. What career accomplishment are you proudest of? We have accomplished a lot over the years. We have won the Nissan Award of Excellence a number of times. But what I’m most proud of in my career is during the financial crisis in 2008 and 2009, we didn’t lay anybody off. And then again, when we had the severe disruption due to COVID, we didn’t lay anybody off. We struggled, and it was tough, but our goal was to take care of our people, they are our work family. Their families are counting on them, and we were committed to not letting them down. Any last thoughts? There is strength in numbers for GADA, and everybody needs to participate. We have a lot of members, but we need a lot of active members. When members are active and engaged, the more input we have, and that broadens the base. That is where we find success. Bo and his wife, Kristina, have three amazing adult children: Holden, Clayton and Abbi. They have nine adventurous grandchildren. Bo and Kristina enjoy playing with their grandchildren on Tybee Island and making magical memories with them at Walt Disney World Resort in Florida. 9 THE GENERATOR
ON MY Mind 2024 GADA CONVENTION In June, GADA held our annual convention at The Cloister at Sea Island. Attendees enjoyed a weekend of education, networking, great food and family fun! It was wonderful to see some new faces as well as old friends. As always, we appreciate the participation of our generous sponsors. They are essential to making the convention a productive and enjoyable event. Thank you to our keynote speaker, NADA President & CEO Mike Stanton, who filled us in on the accomplishments of NADA so far this year and the road ahead. Attendees also had the opportunity to hear our business session speakers: Rich Sox of Bass Sox Mercer and Lauren Bailey from NADA provided a comprehensive update on franchise law; Matt Simpson from Fisher Phillips presented the latest news in labor and employment; and Nick Moyes from endorsed provider ComplyAuto gave some great advice on workplace safety. If you haven’t attended a GADA convention in the past, give it a try! You won’t regret spending a few days getting to know fellow dealers and connecting with businesses that can help you succeed. Next year’s convention is back in Sea Island — look for more information in early 2025! ADVOCACY AND ENGAGEMENT Whether talking about state or national politics, it goes without saying that a strong Political Action Committee (PAC) is necessary to maintain connections with lawmakers. GADA’s PAC, the Committee of Automobile Retail Dealers (CARD), supports state legislators who have demonstrated interest in a strong automobile retail business and industry climate. Beyond establishing and maintaining relationships with legislators, GADA promotes the benefits of franchised dealers in the public arena too. With that goal in mind, in 2022, GADA created a Dealer Advocacy Fund (DAF). The GADA DAF is used to advocate for the preservation of the franchise dealer model as well as other significant issues affecting automotive dealers. Funds are used for expenses associated with advocacy on behalf of GADA members, including but not limited to, consultants, public relations and event sponsorships. Some dealerships contribute the suggested CARD and DAF amounts every year, and for that, we are very appreciative. However, some dealerships don’t contribute at all. SINCE ALL DEALERSHIPS BENEFIT from the work that GADA does at the State Capitol, as well as GADA’s public advocacy, it makes sense that ALL DEALERSHIPS SHOULD CONTRIBUTE TO CARD AND THE DAF. If you aren’t contributing, it’s time to do your part. Your financial support is incredibly important to our efforts. If you have already paid your annual dues, never fear — it’s not too late to contribute to CARD or the DAF. Best of all, corporate checks are accepted. Contact legislative@gada.com to find out how you can contribute. Not only is financial support a necessary part of GADA’s advocacy, but participation and engagement in the political process are essential too. We are gearing up for our Regional Lunches with Legislators this fall/winter. We hope to see lots of dealers attending these lunches. We plan to again host a Dealer Day at the Capitol during the 2025 legislative session. Both our Regional Lunches and Dealer Day give dealers a chance to interact directly with each other and lawmakers. ALL GADA MEMBERS AND EMPLOYEES ARE INVITED and ENCOURAGED TO ATTEND. Keep an eye out for details and plan to attend this year. The benefits of establishing relationships with your local legislators can’t be understated — take advantage of the opportunity. As always, feel free to reach out to me with feedback and ideas on how GADA can help you thrive! LEA KIRSCHNER GADA PRESIDENT AND CEO PRESIDENT’S MESSAGE THE GENERATOR 10
NADA Notes MESSAGE FROM NADA DIRECTOR MATT LAUGHRIDGE NADA DIRECTOR Before I update you on what’s happening at NADA, I’d like to take this opportunity to introduce myself. My name is Matt Laughridge, and I am the newly elected NADA director for Georgia. I first want to thank outgoing NADA Director Steve Middlebrooks of Heyward Allen Motors in Athens. Steve has been our state’s NADA director since 2017, and he has done an outstanding job! He relentlessly worked to recruit new NADA members and contributors to the NADA PAC while keeping Georgia dealers informed of national issues and NADA's advocating on our behalf. Well done, Steve. As for me, I am a Hyundai and Genesis Dealer from Cartersville, Georgia. I have been in the automobile business all my life. I started by washing cars in the summer of sixth grade. As I got older, I was fortunate enough to be able to work in every department, learning all aspects of the business. I was able to buy into my family store in 2012 and have been involved first-hand in operating the dealership ever since. I have been involved with NADA and the NADA PAC for over 10 years, helping to create and build NADA’s successful NextGen program. Prior to being elected as Georgia’s NADA director, I served on the GADA board, most recently as the North Georgia area vice chair. As your NADA director, I intend to work to ensure the survival and success of franchise dealers. The dealer franchise network is the only true way to provide the best experience for today’s car buyers and the local community. On a more personal level, I love spending time with my family — my wife Ashley and daughter Evie. We have a new baby boy on the way, and we’re very excited about our growing family. I enjoy golfing, hunting, traveling and cheering on the Atlanta Falcons. I want to thank Georgia dealers for giving me the opportunity to represent you and your business with NADA. I also want to thank Lea, Ben, Bill and the GADA staff for always helping me out and being the best team for the dealers. THE FTC VEHICLE SHOPPING RULE (also known by the FTC as the CARS Rule) NADA continues to pursue an aggressive legal and legislative strategy to stop the FTC’s Vehicle Shopping Rule from taking effect. The full House of Representatives may consider the FY25 Financial Services and General Government (FSGG) appropriations bill in September, which includes a NADA‑backed provision that would stop the FTC from implementing or enforcing the Vehicle Shopping Rule until Sept. 30, 2025. NADA continues to press legislators to include this provision. THE GENERATOR 12
In addition to legislative strategy, NADA and the Texas Automobile Dealers Association (TADA), have filed a legal challenge to the Vehicle Shopping Rule. The U.S. Court of Appeals for the 5th Circuit has set a tentative date of the week of Oct. 7 to hear oral arguments in this lawsuit. CDK CYBER INCIDENT NADA continues to provide updates and guidance to assist dealers in responding to the CDK cyber incident and in strengthening their operations moving forward. The FTC accepted a NADA proposal made in coordination with CDK that permits CDK to file a consolidated breach notification with the FTC on behalf of its dealer clients if CDK determines that the FTC Safeguards Rule’s new federal notification requirement is triggered. Dealers, therefore, have no obligation to file a breach notification with the FTC related to this matter unless dealers opt out of this process. In addition, following a meeting that NADA arranged between CDK Privacy Counsel and ATAE Leadership, CDK notified the executives at state dealer associations that it would also comply with state notice obligations for dealers that do not opt out. Dealers are reminded that (i) the full range of FTC Safeguards Rule requirements remain in effect, and (ii) every state has a breach notification requirement and, although CDK has made the commitment stated above, it has not indicated whether it has communicated with state regulators on the matter. Dealers who use CDK should provide the CDK notice to their legal counsel and review what, if any, action they may need to take to comply with state law. Dealers should also be on alert for phishing scams and suspicious calls and emails. CDK employees “will not and have not been soliciting access or passwords to customers’ systems or environments. Any request should be immediately treated as suspicious.” SAVE THE DATES Regional Meetings with Legislators GADA will again be hitting the road in November and December to meet with dealers and legislators. These events are a great opportunity to meet and get to know your fellow dealers and area lawmakers. Stay tuned for more details! 11/14 Lunch in Atlanta Boones at Bobby Jones Golf Course, Buckhead 11/19 Lunch in Athens Hyatt Place 11/21 Lunch in Macon TBD 12/4 Lunch in Albany Merry Acres Inn & Event Center 12/5 Breakfast in LaGrange Courtyard by Marriott 12/11 Lunch in Rome Courtyard by Marriott 12/12 Lunch in Augusta TBD 12/17 Lunch in Douglas (or Waycross) TBD 12/18 Breakfast in Savannah TBD 13 THE GENERATOR
ATD CHAIRMAN’S MESSAGE SCOTT PEARSON ATD CHAIRMAN At the ATD Show in Las Vegas, I promised you my enthusiasm and dedication as your 2024 ATD chairman. Our industry is facing historical challenges and threats, but the energy I witnessed in Las Vegas and during the June ATD Legislative Fly-In proved to me that we are ready to take them on. I have identified the key priorities for the year: • Push back on federal electric truck mandates and educate key decision‑makers at the EPA and on Capitol Hill. • Educate truck dealers on how CARB mandates are unfolding and their impact on the truck market and their customers. • Increase truck dealer outreach to build relationships and solidify member value. • Continue to grow membership and promote the ATD NextGen program. EV MANDATES In April, the Environmental Protection Agency (EPA) finalized its “Greenhouse Gas Emissions Standards for Heavy‑Duty Vehicles — Phase 3” rule. EPA’s final rule would force the broad adoption of heavy‑duty zero emission vehicles (ZEVs), despite being less than 0.3% of sales last year. EPA’s de facto ZEV mandate will have a historic impact on truck dealerships nationwide. Unfortunately, California dealers are already experiencing unprecedented barriers to their business. These regulations are here, and we must address them head-on. Truck dealers are making a significant investment to sell and service EVs to the tune of nearly $1 billion. Selling and servicing commercial vehicles is our job, and we will continue to do it. But dealers cannot force their customers to buy trucks that do not meet their needs, and ZEVs are not there yet for most commercial applications. Commercial buyers have shown us that they are not ready to purchase ZEVs for a multitude of reasons, including insufficient charging infrastructure, inefficiency of the vehicles caused by immense weight, prolonged time required to charge, lack of sufficient range and affordability. ATD has shared this perspective with the EPA regarding the impact of the rule. We have filed official comments, testified before the EPA in person, taken EPA decision-makers on in-depth dealership tours, supported a letter led by Rep. Randy Feenstra (R-Iowa) and continue to meet with both the EPA and White House regularly to convey the voice of commercial truck dealers and their customers. ATD is ensuring that truck dealer concerns are heard on this front. MEMBERSHIP AND ATD NEXTGEN Growing our membership is important to maintaining a healthy and active organization. That means focusing outreach on both big and small dealer groups. We TACKLING 2024 Priorities THE GENERATOR 14
cannot avoid the reality of consolidation, and we need to adapt by getting each rooftop and general manager involved. The value of ATD membership requires input from both sides. The ATD board and leadership have committed to consistent contact and communication through dealership visits and calls, educational opportunities and events. To advance these relationships, members should remain engaged in the association. Don’t know where to get started? Consider these two significant opportunities: • Attending Future ATD Legislative Fly-Ins: ATD hosts its annual legislative Fly-In, which is an opportunity for truck dealers to visit their elected representatives and share the message of their dealership, employees and customers. It is a chance to talk to your decision-makers about the environmental regulations and other priorities related to the truck dealer. There were 88 attendees from 25 states that attended the 2024 ATD Legislative Fly-In and discussed the EPA’s de facto ZEV mandate, FET repeal, so-called “Right to Repair” legislation and catalytic converter theft by holding 95 meetings on Capitol Hill. • ATD NextGen Program: Enroll your dealership leaders into the NextGen program to start engaging with industry peers and national issues. This includes anyone in the dealership on the leadership track, not just successors. ATD NextGen offers networking, webinars and educational opportunities. I have my work cut out for me as your chairman, and I look forward to your voices, passions and input as we advocate for the nation’s commercial truck dealers. ATD Chairman Scott Pearson and GADA President Lea Kirschner discuss issues with Congressman Buddy Carter (Ga-1st Dist.) ATD Chairman Scott Pearson, Congressman Rick Allen (Ga-12th Dist.), and GADA President Lea Kirschner 15 THE GENERATOR
The 2024 GADA Convention was held June 13-16 at The Cloister at Sea Island. Attendees enjoyed many networking opportunities, informative business sessions, fun social events and so much more! A big thanks to all of our sponsors and exhibitors who make the convention possible. We hope to see you at our next event! Dancing to the Swinging Medallions Georgia Speaker of the House Jon Burns Speaking at Chairman’s Club Breakfast 2024-2025 GADA Chairman Bo Scott and his son Holden visit with Gold Sponsor 700Credit Rep. Alan Powell, Speaker Jon Burns and Rep. James Burchett THE GENERATOR 16
2023-2024 GADA Chairman Charles and his wife, Angie Prater 2023-2024 GADA Chairman Charles Prater and incoming 2024‑2025 GADA Chairman Bo Scott Justin Fuller, Winner of 2023-2024 John B. Prince Outstanding Dealer Award and 2023-2024 GADA Chairman Chairman Prater with outgoing NADA Director Steve Middlebrooks Convention Chairman Jason Denson joins Chairman Prater and his wife, Angie, to officially open the Convention Lauren Bailey from NADA and Rich Sox from Bass Sox Mercer filling dealers in on franchise law 17 THE GENERATOR
From left to right: Rep. John Corbett, Sen. John Albers, Rep. Lehman Franklin, Sen. John Kennedy, Rep. Butch Parrish, Rep. Jason Ridley, Rep. James Burchett, Sen. Blake Tillery, and Rep. Rick Jasperse 2023-2024 GADA Chairman Charles Prater addressing attendees Keynote Speaker NADA CEO Mike Stanton, Steve Middlebrooks and incoming NADA Director Matt Laughridge Matt Simpson from Fisher Phillips presenting the latest in employment law Nick Moyes from Titanium Sponsor ComplyAuto talks about OSHA compliance The team from Titanium Sponsor Assurant Chairman Prater with Silver Level Sponsor Armatus 2024 GADA CONVENTION HIGHLIGHTS THE GENERATOR 18
A Special Thank You to Our 2024 GADA Convention Sponsors! TITANIUM LEVEL SPONSORS PLATINUM LEVEL SPONSOR GOLD LEVEL SPONSORS Ally Bass Sox Mercer Grow Financial SILVER LEVEL SPONSORS Armatus Dealer Uplift AutoFi Bank of America Cox Automotive JM&A Group NADA Retirement from EMPOWER Reynolds & Reynolds 700Credit BRONZE LEVEL SPONSORS Brightline Dealer Advisors Broadway Equipment Company Capital Automotive Real Estate Svcs CVR Dave Cantin Group Dealer Solutions Mergers & Acquisitions Dealerslink Dominion DMS Forvis Mazars Gill Automotive Group Guardian Products HHM CPAs Ross Lane & Co. RouteOne The Presidio Group Truist WE LOOK FORWARD TO SEEING YOU AGAIN NEXT YEAR IN SEA ISLAND! 19 THE GENERATOR
20 Serving Georgia’s Franchised Motor Vehicle Dealers Contact the GADA Workers’ Comp Fund Staff for more information! Lisa Pritchett • Managing Director • (866) 646-8516 • wcfund@gada.com • Stable rates • Prompt claims management • Payroll audit coordination • Owned by dealers, staffed by GADA employees With more than three decades in service, the GADA Workers’ Compensation Fund has a solid history of stability and premium customer service. Learn why more than 400 Georgia dealerships have chosen the GADA Workers’ Compensation Fund. Contact us today. GADA Insurance Services is a full-service insurance agency that offers employee benefits coverage and property and casualty coverage to your dealership. Created in 2006 in response to member requests, your in-house insurance agency can cover the insurance needs of your business and employees. EMPLOYEE BENEFITS COVERAGE INCLUDES: • Group Dental Plans • Vision Care Plans • Customized Life Insurance • Voluntary employee benefits plans through our long-term partnership with American Fidelity, including: - Disability - Cancer - Life Insurance - HAS & HRA - Section 125 “Cafeteria” Plan BENEFITS COMPLIANCE • ERISA compliant Wrap Documents • Online web portal for storage of benefits materials and other important documents For more information, contact Managing Director Shawn Presnell 770.432.1658 x240 | shawnp@gada.com PROPERTY & CASUALTY COVERAGE INCLUDES: COMMERCIAL (Markets include several A+ rated property & casualty insurance companies) • Dealership • Dealership-related risks • Auto inventory/Open lot PERSONAL • Homes, Boats and other personal-owned items
See you next year! Mark Your Calendars! 2025 GADA Convention THE CLOISTER at SEA ISLAND June 12-15, 2025 21 THE GENERATOR
AWARDS and ACHIEVEMENTS Greg and Juanita Baranco were recently honored by the Atlanta Business Chronicle as Most Admired CEOs. Peach State Trucks just celebrated 50 years in business! Congratulations to recent graduates of the NADA Dealer Academy — a job well done! ISABELLE THOMAS John Thornton Buick GMC LORA ERIE Mountain View Chrysler Dodge Jeep Ram TYLER BURNETT Fayetteville Ford LLC CHRIS CHITWOOD Fayetteville Ford LLC AUSTIN DOYLE Franklin Chevrolet Cadillac Buick GMC BRAD PEARSON Peterbilt of Augusta WILLIAM SCHAFER Master Buick GMC JASON KRECSKAY Master Buick GMC DALE CRITZ Critz Inc. JASON CHILDRE Childre Nissan THE GENERATOR 22
HEADLIGHTS ON THE LAW Be Careful What You Put in Writing, Even to GADA BEN JORDAN GADA GENERAL COUNSEL & DIRECTOR OF GOVERNMENTAL RELATIONS Have you ever heard a good lawyer joke? I’m sure you probably have. As a lawyer, I don’t mean to denigrate my own profession, but there is a reason we all know these jokes: we live in a country full of lawyers and lawsuits. As franchise car dealers, I’m sure this comes as no surprise to you. You have probably received your fair share of “legal papers.” Often, these legal papers are not from someone suing the dealership but from someone requesting (or demanding) that the dealership produce certain records. The two most common forms are subpoenas and “Nonparty Requests for Production of Documents.” Here are some things to keep in mind when you receive them. SUBPOENAS A subpoena is a document demanding something (documents, testimony or both). It is tantamount to a court order, meaning a judge can impose a penalty for not complying. If you receive a subpoena, take it seriously and contact your counsel immediately. Subpoenas typically seek a wide array of information and impose short deadlines for responding. Time is of the essence. Court rules protect against overly broad and burdensome subpoenas, and certain information is “privileged,” which means it does not have to be produced. Yet, availing yourself of these protections usually requires having an attorney who is trained to articulate why the requests are overly broad, not relevant or objectionable based on legal privileges. Otherwise, you risk penalties for not complying with the subpoena or producing more information than you should. NON-PARTY REQUESTS FOR PRODUCTION OF DOCUMENTS You may also receive a Non-Party Request for Production of Documents. These are requests sent by a party to a lawsuit seeking records and documents from you, even though you are not named in the underlying lawsuit. These may seem less threatening than a subpoena, and you may wonder why you even received this request, especially if you do not know what the underlying lawsuit is about. Nonetheless, failing to comply with these requests can also result in penalties imposed against you, and disclosing records you didn’t legally have to produce can prevent you from later asserting your privilege. As a result, non-party requests for production of documents should be handled like subpoenas: take them seriously and notify counsel as soon as possible. BE CAREFUL WHAT YOU PUT IN WRITING (INCLUDING TEXTS AND EMAILS!) Once you’ve had to produce documents or records in a court case, you may think to yourself: “I really wish I hadn’t said that.” The cold hard truth is that your opinions or observations of another person or thing will likely be discovered if they are relevant to some part of a lawsuit. This would include any statements, jokes, insults or messages you thought would remain confidential. This also applies to any information you share with GADA, including emails or text messages you send to us. Although GADA advocates for you, we are not your attorneys. The information you share with us is not likely protected by the attorney‑client privilege, which means it could be discovered later if litigation occurs. So please be careful about what you put in writing, even to GADA. That information could be discovered in a lawsuit, and lawyers will use your words against you if they feel it will help their clients. Hence, all the lawyer jokes. This article is for informational purposes only and is not intended to be legal advice. Dealers are advised to seek advice from dealership legal counsel or other competent professionals concerning individual dealership operations. The presentation of this article is not intended to encourage concerted action among competitors or any other action on the part of dealers that would in any manner fix or stabilize the price or any element of the price of any good or service. 23 THE GENERATOR
Cyber Liability Challenges INSURANCE INSIGHTS SHAWN PRESNELL MANAGING DIRECTOR OF INSURANCE SERVICES The challenges with cyber liability today are greater than ever. The most recent cyberattack at CDK Global was eye-opening, to say the least. It proves that any company can be vulnerable to a cyberattack. Whether it’s financial applications, email communications, sales order processing or customer relationship management systems. Data is the backbone of business. The more reliant a company is on digital data, the lower its tolerance is for any interruption or corruption of data caused by cyber threats. The recent rise in high-profile cyber incidents such as computer viruses, data theft, identity theft and other cybercrimes makes it critically important to keep data secure. DATA BREACH What happens when a data breach occurs and what are the implications from an insurance standpoint? Consider these scenarios: • Scenario 1: One of your employees opens an email that has a computer virus attached to it. The virus crashes the dealership’s computer network but not before spreading itself to everyone in its contact list, including all customers. As a result, one of your customers gets the same virus and wipes out his whole network, and now the customer is suing your dealership for damages. • Scenario 2: A disgruntled former employee logs into your network and blocks access to the company website so you cannot access your accounts or do business. After two weeks of this, everyone is upset because they cannot operate normally, and you are losing customers by the hour. Not only have you lost customers, but you may not be able to get them back. COVERAGE LACKING What do these scenarios have in common? None of these losses would be covered under a typical business insurance policy. Commercial general liability policies cover claims for damage to others property, but damage to data is typically excluded. Not only is the damage to data excluded, but damage (including bodily injury) caused by a loss of data is often excluded as well. This means the full financial impact of these scenarios would fall directly on your business. The policies that add some cyber coverage by endorsement are usually very limited in coverage too. Times have changed, and most businesses aren’t prepared for these scenarios. Yet they are happening every day at an alarming rate with more privacy and security breach headlines in the news, and only a small portion of what is happening is reported. MAJOR CYBER ATTACKS IN 2024 • February 2024: UnitedHealth RX processor Change Healthcare — Ransomware attack causing massive disruption for four weeks! They had to pay a $22 million ransom to a foreign cybercrime group. • April 2024: Discord IT Social Media — 4 billion+ chats were harvested! • May 2024: Ascension Health Systems — Ransomware attack that forced it to divert emergency care from some of its hospitals. • June 2024: Rite Ad had 2.2M people that were affected by a data breach due to a ransomware attack. • June 2024: CDK Global — Two cyber-attacks within 48 hours caused CDK to shut its systems down. This impacted more than 15,000 auto dealerships. Many dealerships had difficulty doing “business as usual” with their DMS completely shut down. Many dealerships had to revert to manual analog operations which impacted their ability to do business. Some dealers suffered a loss in revenue during this two-week outage. To get systems back online, CDK may have paid a significant ransom. THE GENERATOR 24
HOW TO AVOID LOSSES Be sure to ask your agent about coverage for loss of your data but also for the liability for the loss of your customer’s data. Endorsements and or policies to cover data are readily available. There are many versions of so-called “cyber liability” policies available in today’s marketplace, and it is important to carefully review terms and conditions to make sure such a policy will do what you expect it to when needed. You may want to consider having a security risk assessment performed by an IT professional who specializes in data security. This will help discover the strengths and weaknesses of data handling processes and fix them before something bad happens. A thorough risk assessment along with adopting best practices demonstrates that your dealership has exercised due diligence, and when properly documented, may serve as an affirmative defense when a cyber threat impacts your employees or customers. An ounce of prevention is worth a pound of cure! CYBER LIABILITY POLICIES Cyber Liability policies can vary in both limits and costs. Typically, limits are available from 250K to over 1M. Premiums vary based on size of operation and revenues. The average premium for an auto dealership is between 5K and 6K a year. However, the premiums for dealerships can range from 3K to over 10K a year based on your exposure, liability limits and deductibles chosen. It is important to make sure that any cyber and privacy liability policy you consider purchasing has coverage for 1st party losses such as business interruption, cyber extortion loss and data recovery costs. Your cyber liability coverage should include both data and network, regulatory defense, and media liability. In addition, your coverage should include privacy breach notification costs, cybercrime, multi-media liability and advertising injury, technology errors and omissions, court attendance costs, and crisis communication costs. E-Crime sublimit coverage should include fraudulent instruction, funds transfer fraud and telephone fraud. It is important to make sure you purchase a comprehensive cyber policy. GADA Insurance Services has been in operation for 18+ years, offering insurance needs to dealerships. We have seen a multitude of areas where dealerships may be costing themselves money. Cyber liability should not be overlooked. Please contact me or your P&C account executive for additional information. SHAWN PRESNELL Managing Director of Insurance (678) 428-9247 | shawnp@gada.com FELIX JACKSON P&C Account Executive Atlanta/North GA (770) 570-8212 | felixj@gada.com DAVID CREW P&C Account Executive Middle/South GA (470) 303-9051 | davidc@gada.com The recent rise in high-profile cyber incidents such as computer viruses, data theft, identity theft and other cyber-crimes makes it critically important to keep data secure. 25 THE GENERATOR
Protect Your Dealership From Fraud and Cyber Threats Learn About the Latest Fraud and Cyber Threats, How To Defend Against Attacks and What To Do if You’re a Victim of Cybercrime Auto dealerships are attractive targets for fraud and other cyber threats. Adopt the mindset of a tech-savvy criminal and it’s easy to see why — dealerships have sizeable deposit balances, make frequent high-dollar transactions (i.e., ACH, checks and wire transfers), and have numerous employees who use systems with sensitive customer data. Dealer management systems contain a treasure trove of information that hackers can sell or use to commit other crimes: social security numbers, bank account information, credit applications and scores, and insurance data. And auto dealers’ information technology systems often lack the latest firewalls, updates and security patches, giving criminals an easy path to cyber fraud. Given the sluggishness of digital security measures adoption, hackers know the odds of a successful cyberattack on a dealership are high. Roughly half (47%) of dealers surveyed lack confidence in their level of cybersecurity protection.1 Similarly, 46% said their dealership had experienced a cyberattack in 2023 that negatively impacted business operations or finances.2 With threats so prevalent, dealers must work to better understand the complex fraud and cyber threat landscape — and adopt proactive strategies to effectively mitigate their risk. UNDERSTAND THE VARIED THREAT LANDSCAPE Although many types of fraud pose risks for auto dealers, payments fraud is most common. Four out of five organizations reported an attempted or completed payments fraud in 2023 — a 15% increase from 2022.3 Of those, 65% involved checks, making checks the most fraud‑prone form of payment. ACH debits were next at 33%, while fraudsters used wire transfers (24%), commercial credit cards (20%) and ACH credits (19%) somewhat less often. Business email compromise (BEC) is the primary source of attack for payments fraud.3 Relying on social engineering BY TRUIST DEALER SERVICES THE GENERATOR 26
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