WE ARE A STRONG COLLECTIVE VOICE, DEDICATED TO ADVANCING THE AUTOMOTIVE INDUSTRY IN WEST VIRGINIA. WVADA 2023 ANNUAL DEALER Family Convention
Driving excellence in all we do. 304-624-5564 www.tetrickbartlett.com T&B Tetrick & Bartlett, PLLC is an accounting and consulting firm serving clients throughout West Virginia. We are dedicated to providing our automobile dealer clients with professional, personalized services and guidance in a wide range of financial and business needs.
WE HAVE West Virginia COVERED! In Business in West Virginia For Your Business for 30 years Responsible Attorney, Johnnie E. Brown www.pffwv.com Beckley 304-254-9300 | Charleston 304-344-0100 | Martinsburg 304-260-1200 | Morgantown 304-225-2200 WHEN IT COMES TO BEING LEGALLY COMPLIANT AND AGGRESSIVELY DEFENDED, YOU HAVE A CHOICE. WHY NOT CHOOSE A LAW FIRM THAT KNOWS YOUR INDUSTRY AND IS FOUNDED IN WEST VIRGINIA WITH FOUR OFFICES COVERING EACH REGION OF THE STATE TO PROTECT YOU? OUR FOUNDING MEMBERS AND ATTORNEYS LIVE IN THE COMMUNITIES WE SERVE. PULLIN, FOWLER, FLANAGAN, BROWN & POE, PLLC KNOWS WEST VIRGINIA AND WEST VIRGINIA’S AUTOMOBILE DEALERS. In Business in West Virginia For Your Business for 30 years Responsible Attorney, Johnnie E. Brown www.pffwv.com Beckley 304-254-9300 | Charleston 304-344-0100 | Martinsburg 304-260-1200 | Morgantown 304-225-2200 WHEN IT COMES TO BEING LEGALLY COMPLIANT AND AGGRESSIVELY DEFENDED, YOU HAVE A CHOICE. WHY NOT CHOOSE A LAW FIRM THAT KNOWS YOUR INDUSTRY AND IS FOUNDED IN WEST VIRGINIA WITH FOUR OFFICES COVERING EACH REGION OF THE STATE TO PROTECT YOU? OUR FOUNDING MEMBERS AND ATTORNEYS LIVE IN THE COMMUNITIES WE SERVE. PULLIN, FOWLER, FLANAGAN, BROWN & POE, PLLC KNOWS WEST VIRGINIA AND WEST VIRGINIA’S AUTOMOBILE DEALERS.
©2023 West Virginia Automobile Dealers Association (WVADA) | The newsLINK Group, LLC. All rights reserved. The WVADA News is published four times each year by The newsLINK Group, LLC for the WVADA 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 the WVADA, its board of directors, or the publisher. Likewise, the appearance of advertisements within this publication does not constitute an endorsement or recommendation of any product or service advertised. The WVADA News is a collective work, and as such, some articles are submitted by authors who are independent of the WVADA. While the WVADA News 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. 14 8 21 CONTENTS 6 President’s Message Together, We Can Drive Our Industry Forward BY JARED WYRICK, PRESIDENT WVADA 8 WVADA 2023 Annual Dealer Family Convention 12 Counselor’s Corner BY JOHNNIE BROWN, ESQ. 14 By the Numbers Employee Retention Tax Credit Revisited Again BY LONNIE ROGERS, TETRICK & BARTLETT, PLLC 16 EVs and the Service Department BY JUSTIN CARR, VICE PRESIDENT, WARRANTY PROCESSING COMPANY 18 Positioning for the Future of EV Market Growth 20 Welcome New Members 21 The Great Retention Tips to Retain Your Employees In 2023 23 In the Community 26 Executive Committee, Board Of Directors, Directors At Large, and Meet Our Team 2023 Issue 2 WVADA News 4
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PRESIDENT’S MESSAGE A s we continue enjoying the summer season, I’d like to take a moment to reflect on the past few months and the exciting times ahead. We recently wrapped up our 90th Annual Convention at The Greenbrier, alongside our counterparts in Virginia, Kentucky and Maryland. It was an incredible event that hopefully left all of us feeling inspired and energized. I’d like to thank each and every one of you — our awesome dealer body and your families — and our gracious vendor partners who allowed this event to happen. Together, we made the 2023 convention the biggest one to date! During our General Business Sessions, we had the privilege of hearing from top-notch speakers who delved into the latest trends in the automotive industry. They guided us on how to thrive amidst uncertainty and empowered us to become exemplary leaders. And let’s not forget about our events each night, including the Candy Land Opener, our famous pool party and our Chairman’s Dinner. The week was filled with valuable connections and memorable moments. During the convention, we also held our Annual Board Meeting where we elected new officers and directors. Jonathan LeRose, Keith Powell and Don Warner were all reelected to their current positions, and Grant Talbott will be replacing Steve Talbott as our new District 6 Director. Welcome aboard, Grant! Also, we greatly appreciate Steve’s dedication and his service to the association and the WV dealer body. Thank you, Steve! The annual convention is an incredible opportunity for learning, networking and collective growth within our industry. I cannot emphasize enough the importance of attending events like these, and I encourage you and your team to join us. Together, we can drive our industry forward. With that said, save the dates for next year’s convention, which will be held from June 2-5, 2024, at The Sanctuary at Kiawah Resort in South Carolina. And mark your calendars for our VIP Charity Gala and Auto Show, Feb. 8-11, 2024! As always, thank you for your continued support and participation. JARED WYRICK TOGETHER, WE CAN DRIVE OUR INDUSTRY FORWARD WVADA News 6
Running a dealership comes with its share of uncertain terrain. But one thing is certain. Our Dealer Financial Services team is dedicated to being by your side with the resources, solutions and vision to see you through. JL Winslow jl.winslow@bofa.com 804.489.5043 business.bofa.com/dealer Making business easier for auto dealers. Especially now. “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, 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. and Merrill Lynch Professional Clearing Corp., both of which are registered broker-dealers and Members of SIPC, and, in other jurisdictions, by locally registered entities. BofA Securities, Inc. and Merrill Lynch Professional Clearing Corp. are registered as futures commission merchants with the CFTC and are members of the NFA. Investment products offered by Investment Banking Affiliates: | Are Not FDIC Insured | Are Not Bank Guaranteed | May Lose Value | ©2022 Bank of America Corporation. All rights reserved. 4826555 08-22-0145 Running a dealership comes with its share of uncertain terrain. But one thing is certain. Our Dealer Financial Services team is dedicated to being by your side with the resources, solutions and vision to see you through. JL Winslow jl.winslow@bofa.com 804.489.5043 business.bofa.com/dealer Making business easier for auto dealers. Especially now. “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, 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. and Merrill Lynch Professional Clearing Corp., both of which are registered broker-dealers and Members of SIPC, and, in other jurisdictions, by locally registered entities. BofA Securities, Inc. and Merrill Lynch Professional Clearing Corp. are registered as futures commission merchants with the CFTC and are members of the NFA. Investment products offered by Investment Banking Affiliates: | Are Not FDIC Insured | Are Not Bank Guaranteed | May Lose Value | ©2022 Bank of America Corporation. All rights reserved. 4826555 08-22-0145
WVADA ANNUAL DEALER Family Convention 2023 WVADA News 8
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WVADA ANNUAL DEALER Family Convention WE'LL SEE YOU AGAIN IN 2024! SCAN THE QR CODE TO SEE MORE PHOTOS FROM THE CONVENTION. https://www.dropbox.com/sh/ n6itzoblea1yx09/AACMr8AIVajTghBQpT0lCg_a?dl=0 WVADA News 10
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COUNSELOR’S CORNER By JOHNNIE BROWN, Esq. N ow that we are all back from another wonderful WVADA Annual Convention and have heard so many motivational speakers, it is my task to bring us back to the reality of the day-to-day legal challenges that we face and provide guidance to avoid. My apologies. In the edition of Counselor’s Corner, I wish to turn our focus away from consumer and governmental exposures and direct our attention to making sure that our employment policies are in place and up to date. It is a best practice that handbooks be reviewed approximately every two to three years to make sure that they are meeting current legal requirements and updates. For example, there are new laws concerning pregnancy discrimination and accommodations and other National Labor Relations Board rulings addressing non-compete provisions and nondisparagement clauses. If you do not have a handbook or employee policies and procedures, I strongly recommend that you have one drafted by an experienced employment law attorney. These handbooks do not have to be long, lengthy or detail step-by-step actions for every minute action that occurs in the workplace. They should be a balance of providing information to an employee about company benefits and leave, employer expectations and standards of conduct, yet provide employers sufficient flexibility in deciding specific employee issues. Handbooks for dealerships are slightly unique given the nature of the business, but need to address common topics required of most West Virginia employers. Specifically, a handbook should address the nature of employment, full- or part-time, at-will status, how employees are paid, benefits, vacation or sick days, drug testing policies, anti-discrimination policies, sexual-harassment handling procedures and retaliation, and other protected leaves. In addition, a handbook should clearly articulate employer expectations concerning standards of conduct and disciplinary procedures within the business. An employee handbook might also address leave issues for jury duty, bereavement and voting. Your handbook may or may not need to address the significant issue of the Family Medical Leave Act depending upon its size and proximity of other stores within your ownership. This is something that needs to be evaluated. Handbooks for dealerships do have some unique policies. This can include driving company motor vehicles and employee discounts related to service and parts and should address the acceptance of gifts or rewards from vendors. They should also clearly state that honesty is required in dealing with consumers. In recent years, West Virginia has specifically addressed employees having guns on company property, payment of paychecks at time of separation, the employee’s responsibility to return employer property, and the impact on unemployment and worker’s compensation when an employee is injured while being under the influence of drugs or alcohol. I encourage you to take the time to make sure that your handbook addresses these new statutory requirements. Another challenge is how to deal with the presence of medical marijuana and how it impacts your drug testing policies and the interaction with the Americans with Disabilities Act and the West Virginia Human Rights Act. Some recent federal opinions and laws have come into effect, establishing specific rights for pregnant workers. Also, a recent National Labor Relations Board decision prohibits the WVADA News 12
use of non-compete and non-disparagement provisions with an employee at the time of separation. While it is not the purpose of this article to explain the details of these new laws and opinions, please understand that these considerations should be addressed by counsel reviewing your handbook. Importantly, a handbook should be drafted to accommodate and recognize your dealership’s culture and managerial style. While employment laws can require very specific employee rights, on the other hand, there are many areas where an employer can have and maintain significant flexibility. To close, please be careful about the old adage, “We’ve always done it this way.” I promise you, this is not a legal defense. Please take the time to periodically review and update your handbook. As always, the association and I are available to assist with any questions you may have and in preparing a handbook. Have a great summer. It is a best practice that handbooks be reviewed approximately every two to three years to make sure that they are meeting current legal requirements and updates. WVADA News 13
BY THE NUMBERS Employee Retention Tax Credit Revisited Again By LONNIE ROGERS, Tetrick & Bartlett, PLLC T he IRS released an Office of Chief Counsel memorandum dated June 30, 2023, on July 21, 2023. The subject of this memorandum was: Whether an Employer Experienced a Full or Partial Suspension of the Operation of a Trade or Business under Section 2301 of the Coronavirus Aid, Relief, and Economic Security Act or Section 3134 of the Internal Revenue Code due to a Supply Chain Disruption. The IRS has clarified that employers who were hampered by supply-chain disruptions during the pandemic but were not shut down are not eligible for an employee retention tax credit aimed at encouraging companies to keep their employees on their payroll. The memorandum states that “A supply chain disruption, by itself, does not rise to the level of a full or partial suspension primarily because no governmental order applies to the employer’s operations.” The guidance does allow the employer to step into the shoes of its supplier for purposes of the suspension test. The supplier must have been subject to a governmental order that causes the supplier to suspend its operations. Scan the QR code to read the full memorandum. https://www.irs.gov/pub/lanoa/am-2023-005.pdf In addition to this further guidance from the IRS, we are seeing increased review procedures being applied to current claims being filed. The IRS issued form 4564 (Information Document Request) to a client for information necessary to determine if they are eligible for the employee retention credit requested on form 941-X. The request must include the following items. 1. Work papers that were used to prepare Form 941-X 2. Documentation that you are an eligible employer for the purposes of the employee retention credit based on either a significant decline in gross receipts or full or partial suspension of operations. The significant decline in gross receipts should include the records used to determine that the organization WVADA News 14
experienced a significant decline in gross receipts from the same quarter in 2019 and/or the governmental order which caused a full or partial suspension of the operations. In addition, the records relied upon to determine whether more than a nominal portion of operations were suspended due to a governmental order or whether a governmental order had more than a nominal effect on the business operation. 3. Documentation of the average number of full-time employees employed during the year(s) 4. Documentation of the calculation of the ERTC, which include records of which employees received qualified wages and in what amounts and for a larger employer, records showing that the wages were paid for time the employee was not providing services. In addition, documentation to show how the allocable qualified health benefits were determined. 5. If you are a member of an aggregated group, how you determined you were a member and how did the aggregation affect the determination and allocation of the credit? 6. If you received a PPP loan, was any portion of the loan forgiven? If so, provide a copy of the documentation of the PPP loan forgiveness that included payroll, such as the forgiveness application. Employers should be aware that the IRS can challenge previously paid employee retention credit refunds under the erroneous refund provisions. In addition to the statute of limitations, the government has two years from when it pays an ERTC refund to bring suit to recover the refund if it later determines the taxpayer was ineligible. We anticipate that both current and previously filed employee retention tax credit requests will continue to receive increased scrutiny over the coming years from the IRS. We recommend that you prepare for this inquiry if you have claimed ERTC credit and are ready to respond. Leon M. (Lonnie) Rogers, CPA/ABV/CFF is the managing member of Tetrick & Bartlett, PLLC and has been providing accounting, tax, valuation and consulting services to automobile dealers since 1977. Tetrick & Bartlett, PLLC currently serves over 50 dealers in West Virginia, Virginia, Ohio and Pennsylvania and is a member of the AutoCPA Group, a nationwide organization of CPA firms specializing in services to automobile dealers. Lonnie can be reached at lrogers@tb.cpa or 304-624-5564. Matt White | 304-633-5467 matt@carsignment.com J.C. Spearry | 216.213.0242 JC@Carsignment.com Is your online inventory retail ready? We build dealers an online inventory presence that attracts & engages buyers at lightning speed! Call 304-633-5467 for a FREE digital marketing audit! www.carsignment.com Full service automotive digital marketing agency since 2005 WVADA News 15
C hange is tough, but a lot of good can come from it. We’ve seen this repeatedly as disruptors redefine and restore balance to industries. EVs will cause a big shift, complete with changes to policy and procedure. However, as electric vehicles go mainstream, there will still be plenty to do in dealership service departments. EVs need maintenance and repairs despite dealer concerns that EVs require less maintenance than other vehicles because they have fewer parts and no need for engine-oil changes or regular service visits. For many dealerships, the service department’s bread-andbutter revenue mainly comes from work involving alignments, brakes, electrical systems, suspensions and tires. So it will help worried dealers to remember what’s on EVs: brakes, electrical systems, tires, steering systems and suspensions. Lube, oil and filter services have been the entry point for most service departments. Still, because EV batteries are heavy, EVs weigh more than otherwise similar vehicles with gas-powered engines. The weight wears out tires faster. Since EV tires need to be rotated and replaced more often, tire maintenance and replacement will be the new entry point for EVs. Additionally, EV repairs are usually expensive. History tells us that new technologies need an iron-out period, and EVs are no exception. Components break, and batteries have issues. As the vehicles evolve, there will be new opportunities for service. Starting with Ford, manufacturers seem to be giving the impression that they want to copy Tesla’s methods for handling repairs and eliminate the labor rate or parts markups they currently pay when dealers are involved. Doing so would increase their control and improve their bottom line, so manufacturers are putting requirements in place regarding the repairs a dealer can do. For example, Ford won’t allow dealer service departments to fix certain vehicles without having a specific equipment set. It will be interesting to see how this power play ends. We know dealers must protect the value of their service departments, and we also know that dealers understand service better than the manufacturers do. What are the first steps in finding a better solution? Recognize what the market is today and how it affects you. Also, continue planning for the future by getting clients in the door to repair and service their vehicles, and give them the best experience possible. A general manager may not have an expert to explain why a cost-cutting decision in the service department is a mistake, and it’s easy to miss important variables that drive revenue in the service department when you make decisions from 30,000 feet. Getting parts will continue to be a problem, and some repairs will take longer than others. As a dealer, do what you can to control processes, training and oversight. If you don’t have the bandwidth, find a strong partner who can fill in the gaps and work closely with your team. People are trying to automate the warranty process. It is nice when you can get simple repairs handled, but not everything is cookie-cutter. Your bread and butter comes from a few areas. One is maximizing the bigger repairs and understanding how to get the most out of that newly acquired labor rate or parts mark-up percentage increase. Another is creating efficiencies and processes that benefit the entire service department team. Education is still the key to growth and progress in service departments. EVs and the Service Department By JUSTIN CARR, Vice President, Warranty Processing Company WVADA News 16
When managers see markets drop, it’s easy to make hasty decisions without understanding the impact of that decision on the service department. Managers might think they can find cheaper ways to do things, but then receivables shrink or inefficiencies cut into profit margins. Claims fall, revenue decreases, and management doesn’t get the same knowledgeable reporting. That’s why it is important to think about how decisions affect everyone down the line as well as planning for the future. Everything will fall into place if we make good moves that benefit everyone. The service department must ensure their people understand their role and do their jobs to legitimately maximize warranty dollars. If the department can structure itself properly, which includes processes and efficiencies, they will be ready for the future. That future includes a rebounding market. When that happens, you want to be ready to absorb the full level of profitability by making sure the service department can deal with increased work without hiring staff. Manufacturers always make changes, so you need to hire and retain staff with the knowledge to direct repair orders. A Service Manager, Technician, or Service Advisor like that can bring everyone else up. Even though it can be hard to find and hire staff with tribal knowledge, a lower-cost person doesn’t have the same skills. Skilled team players are expensive because they know their roles and what they should be doing. They stay in front, training and lifting the department. Hiring the right person or partner is like deciding whether to buy steak or jello. Jello costs much less, but it is no substitute for steak. If you end up hiring inexperienced staff in critical positions, in the absence of having a lot of senior people, it is easy for bad habits to spread. Then you have bigger problems to fix and miss out on the money you could have been earning. Cleaning up these types of internal messes pulls your critical team members down rabbit holes they shouldn’t be in. Although many dealers don’t have the time and money to train in-house, they can create partnerships by consulting and outsourcing with a good outside company that acts like a life coach and mentor for their business. The dealership can use a consulting company to keep employees on track and responsible, including new people. The consultants can do stand-in work when employees are gone, lift teams, and keep them on track. The right company will actively find patterns of problems, spoon-feed dealers the information they need and give them options to improve. Dealers can then learn from the consultant’s processes and keep moving forward. With a nonbiased partner, you can find ways to help everybody and grow the service department. It’s important to know why you are doing something because you will get stuck or slide backward if you do things for the wrong reasons. Success comes from acting purposefully for all the right reasons. Although EVs are a big change, they offer dealers many new opportunities. Justin Carr is a VP at Warranty Processing Company, which recently relocated to Texas. Justin works with dealers nationwide to increase efficiencies within service departments and educates dealer staff on why efficiencies matter. WVADA News 17
Positioning for the Future of EV Market Growth E lon Musk recently commented that he couldn’t see his closest competitor in the EV market with a telescope. Those are admittedly bold words, and that kind of posturing is typical as the jockeying within the EV market heats up. But many dealers selling OEM brands think Mr. Musk doesn’t need a telescope; he needs a mirror. And since objects in mirrors can be much closer than they appear, he should put down his telescope and turn around instead. It’s true that from 2018-2020, approximately 80% of the EV market belonged to Tesla. But the market balance is shifting. It decreased to 71% in 2021 and 65% during the first nine months of 2022. The biggest market gains were for cars selling at less than $50,000. By 2025, experts like John Murphy, the Managing Director and Lead Auto Analyst at Bank of America Merrill Lynch, think Tesla’s market share will drop to the low teens. Other companies have been working on more than a dozen new options that will start selling within the next year. Experienced and powerful competitors such as General Motors, Ford and Mercedes-Benz are actively competing with Tesla. Registration data on a national level shows that their work is being rewarded, and people are buying new EV models from manufacturers other than Tesla. There’s a name for what Tesla has experienced: “first-mover advantage.” Michelle Craig, an Executive Analyst at Cox Automotive, said she always expected Tesla’s market share to go down at some point after the competition began to catch up with them. Tesla has revolutionized the auto industry by focusing on impressive battery power. Still, as she pointed out, people want the affordable, eco-friendly EVs that are starting to hit the market. They will appreciate the chance to buy those EVs from trusted manufacturers at a lower price than what Tesla currently offers. Tesla’s inadequate support system for auto repairs will also persuade customers to choose something other than a Tesla when they decide to buy or replace an EV. Even though Tesla has been dropping its price on some vehicles and plans to offer at least one more-affordable option soon, that still doesn’t solve the company’s biggest weakness: being unable to repair its vehicles quickly. It also doesn’t erase the fact that other manufacturers will compete headto-head on aspects such as equal or better technology and production build. Legacy manufacturers have been preparing to capture market share in the EV race: • Ford sold 61,575 vehicles in the U.S. in 2022 and now plans to meet the demand by doubling its production target. What do customers want to buy from Ford? Electric vans, Mustangs and trucks. Car and Driver magazine named Ford’s Mustang Mach-E model the 2021 “Electric Vehicle of the Year.” It was number three in sales of electric sport utility vehicles. Ford unveiled the F-150 Lightning in May 2022, then took 200,000 reservations. WVADA News 18
Three-fourths of them were buyers who had never bought a Ford before. According to a survey conducted by Cox Automotive, respondents preferred the Ford F-150 to Tesla’s Cybertruck. They chose the Ford F-150 because of its price, driving performance, size and design. • Volkswagen is spending tens of billions to meet a goal: moving half its U.S. sales to EVs by 2030. The company plans to produce 1.5 million EVs by 2025 to meet new EU emission targets. • Hyundai’s award-winning IONIQ 5 has been named the Best Electric Vehicle by Cars.com in its Best of 2023 Awards. The IONIQ 5 surpassed all the 2023 EVs in the market tested by the company’s editorial team of expert car reviewers. Other manufacturers to consider are General Motors, Volvo and Xpeng. The Detroit Bureau expects a dozen or more allelectric pickups to be available by 2025. In addition to vehicles manufactured by Toyota, Hyundai and others, people will buy the Chevrolet Silverado EV, Ford’s F-150 Lightning, the GMC Hummer and Sierra SUV and the Ram 1500 EV. Don’t discount Chinese companies like Nio and Xpeng, even though they seem too unfamiliar for Americans to worry about. Elon Musk has said he considers his biggest competitors to be Chinese automobile manufacturers, even though (characteristically) he thinks everyone is so far behind Tesla that they are a “distant second.” But despite Tesla having an advantage in its worldwide Supercharging network, Consumer Reports rates it seventh on Advanced Driver Assistance Systems. (The best Driver Assistance systems in the U.S. were Ford BlueCruise and GM SuperCruise.) Also, the German Level 3 system made by Mercedes-Benz surpasses Tesla’s Level 2 system. Just how fast is the market for EVs growing? In 2011, manufacturers sold 45,000 vehicles globally. The number was 3.24 million in 2020. Experts think 27 million vehicles will be sold by 2030. Tesla has done well financially. In 2012, annual sales were $400 million. They were $31.5 billion in 2020. However, maintaining that growth may prove impossible as other companies get involved and make the investments necessary to meet their goals. The drop in Tesla prices was good news for prospective owners but bad for existing owners. After all, there’s nothing quite like seeing the value of an expensive vehicle drop 20% in one day. In addition, Tesla vehicles have had construction problems and stale designs, and the federal government has been investigating 16 Tesla crashes that involved Autopilot or Traffic-Aware Cruise Control. Having stores where people can bring their vehicles for service and repair is a big advantage for dealerships. Earthweb estimated 2.5 million Tesla vehicles on the road at the end of 2022. According to Electrek in an online article dated June 2022, Tesla had more than 673 stores and service centers and more than 1,372 mobile service vehicles. Although Elon Musk said about the same time that his goal was to improve service in North America, he hasn’t been able to close that gap adequately yet. The reality for many Tesla owners is that they might not be close to any service center or mobile service vehicle. Even if they are, they might have to wait weeks or months for service from an authorized center. Elon Musk hoped that Tesla vehicles would need so little service that the shortage of repair places would have been no problem, but it hasn’t worked out that way. For example, Tesla windshields crack like windshields in other cars, but nobody has them in stock for next-day repair. Tesla’s inadequate service network creates an opportunity for its competitors. According to Mark Reuss, GM’s president, GM dealers started repairing Teslas in 2021. Other companies are doing the same thing. There’s even a website (fixyourtesla.com) with a national directory of third-party Tesla service shops. The world is moving to electric vehicles, and that will change the automotive landscape, but Tesla doesn’t have a lock on what that future will be in terms of market share. Tesla benefited from U.S. prosperity and a lack of competition. Those days are done. Legacy vehicle manufacturers are finding ways to adopt Tesla’s best ideas without dismantling the dealership model that has been developed and proven over time. Legacy vehicle manufacturers are finding ways to adopt Tesla’s best ideas without dismantling the dealership model that has been developed and proven over time. WVADA News 19
WELCOME NEW MEMBERS Dynatron Founded by industry luminary Les Silver, Dynatron Software has over 24 years of experience building solutions for the automotive Service Department focused on improving revenue and increasing profitability. Learn more at www.dynatronsoftware.com. S2 Cyber S2 Cyber is your trusted cybersecurity partner. We specialize in Advisory Services, Consulting Services, SecureSpace Platforms and S2 Falcon, which provides visibility and defense of your current environment. Connect with us today to see how we can help you with your business at s2-cyber.com. Blue Whale EV Blue Whale EV guides its clients through a cost-effective transition to e-mobility solutions and delivers a superior customer experience through our U.S.-based team of experts. Blue Whale EV has been designed to act as your “Turn-Key” provider. To learn more, please visit www.bluewhaleev.com. WVADA News 20
ver the past year, and largely fueled by the pandemic, the term “Great Resignation” has become all too familiar with employers as well as the headache of employee turnover. According to the U.S. Bureau of Labor Statistics, approximately 38.6 million resignations occurred between January and September 2022, and the number of employees quitting has remained fairly steady month over month. Today, a fair number of employers are experiencing the adverse impacts of workforce turnover. In terms of financial loss, the cost of replacing an employee can range from onehalf to two times the employee’s annual salary, depending on their role. Additionally, declining productivity, a lack of engagement and low morale are present as remaining associates must often pick up the slack from departing team members. This can lead to even more employees quitting. One might ask the question: Is there an end in sight to the revolving door of employee turnover? It is essential for employers to dig deeper into this problem to understand what is happening and to start the process of turning the Great Resignation into the Great Retention this year. In a recent survey by iHire, 2,665 U.S. workers named the top five reasons employees left jobs in the past 12 months: • Unhappy with their manager/supervisor (43.7%) • Unsatisfactory pay/salary (43.4%) • Poor work/life balance (35.4%) • Lack of recognition/appreciation (29.7%) • Few growth/advancement opportunities (28.3%) It is not a surprise that “unsatisfactory pay” was on the list at number two. Having a competitive compensation strategy is crucial to retention, especially in the economic climate we have today. However, it’s important to note that the other four reasons listed for turnover revolve around the employer needing to put its people first and improving the company culture. Benefits like health insurance, profit sharing and paid time off have become fundamental expectations in the wake of the pandemic. Not to underestimate their value because they are important, but benefits are not driving employee retention. To open the door to the Great Retention, company culture must be addressed. Creating a Positive Work Environment. Getting your managers on board is the first step to creating a positive work environment. Difficulties with management was the top reason employees left a job this past year. Setting standards for transparency in communication can strengthen the employee/manager relationship. This can be accomplished by holding frequent meetings, actively listening, and maintaining an open-door policy. You may need to offer additional training to ensure managers are approachable and helpful. Other ways you can enhance your work environment and improve the employee experience is to expand your diversity and inclusion efforts, institute a regular recognition program The Great Retention Tips to Retain Your Employees In 2023 O WVADA News 21
to celebrate your employees and, if possible, expand options for how work gets done (e.g., remote, hybrid, flex time, job sharing, etc.). Employee Well-being Poor mental health due to work-related issues is on the rise. According to a recent study by Corporate Wellness Magazine, 31% of workers experienced a decline in their mental health over the past year. That is up 24% from the end of 2020. You can start addressing your employees’ well-being by offering subscriptions to meditation apps, mental health benefits like an Employee Assistance Program (EAP), online counseling and mental health PTO. It is also a good idea to make sure that your company’s health insurance covers mental health services. Being flexible with your employees can help prevent burnout and improve mental health while assisting them in establishing a good work/life balance. Don’t forget about the financial side of wellbeing — giving employees access to a lifestyle savings account or stipends for home office equipment, student loans, travel to and from the office expenses and more can up the ante. Career Growth Today’s workforce wants the ability to plan for their future and know whether they can see themselves working with you long-term. Remaining status quo can lead to employee disengagement, a slow, quiet quitting and eventually, can result in them walking out the door for good. Providing your employees with opportunities to enrich their skills and grow professionally pays off. Offering training and reimbursing associates for those expenses (coursework, advanced degrees and certifications) is a great way to invest in your employees. Encourage your managers to work with their teams and clearly define employee career goals. Then create a plan for how they can achieve them. Your company mission should be shared with employees and talked about from time to time. Employees should be familiar with it and understand its importance. Make sure it’s clear to your employees how their roles contribute to the success of the company moving forward. This can engage them and makes their work fulfilling and meaningful. When their work is fulfilling and meaningful, it can increase the likelihood of them staying and growing with your organization. Stay Interviews One more thing to think about is stay interviews. They are a highly effective retention tactic that is often overlooked. These interviews involve holding structured conversations – verbally or in writing – with your current employees to learn more about what concerns they might have and what they need to maintain job satisfaction. In other words, you need to learn what will make the employee want to stay and keep working for you. A mistake that some organizations make is assuming that, just because their employee shows up to work, they are happy. Be open to honest feedback, but don’t push too hard if an employee doesn’t want to elaborate on their comments. This practice should be done yearly and can help you take action and proactively address issues and devise a retention plan before it’s too late. As a bonus, stay interviews can contribute to building and fostering a culture of transparency and trust. Sample stay interview questions might include: • What aspects of your job do you enjoy the most? Why? • If nothing was off the table, what would you change about your job to make it more satisfying? • What would cause you to look for another job? • Can you tell me about a frustrating day at work you’ve had recently? A great one? Conclusion As workforce turnover continues, companies must work hard to overcome losing costly talent by creating a positive, inclusive and flexible work environment that supports employees’ wellbeing and career growth goals. And many of the retention efforts described above are doable for businesses of any size and come with no significant added cost. Now is the time to create a plan and implement retention strategies in your company. Take care of your employees, and you can make 2023 the year of the Great Retention. WVADA News 22
IN THE COMMUNITY Dealerships are, in many cases, pillars of their communities and many have been in their local area for decades. Dealers are some of the most generous contributors to their local communities and WVADA is proud to highlight some of our members’ activities. Congratulations to Mrs. Cundiff, for being WVVA Television’s and Cole Chevy’s April Teacher Feature winner. Cole Chevy presented her with a check for $250. Congratulations to the Astorg Auto of Charleston team on the grand opening of the brand-new Audi USA showroom! Dutch Miller of Charleston assisted the local charity Heart and Hand. Their team loaded up clothes to be sent to places of need. John Ballengee, Brady Cox, Ryan “Gov” Graley, Gage Miller and Joe Stoneman all contributed. Dutch Miller Auto was involved in the Huntington Heart Walk again this year to raise funds for the American Heart Association. Chris Miller of Dutch Miller Auto donated this Epiphone Songmaker DR-100 for auction, signed by the members of the band Imagine Dragons. The Underprivileged Children Foundation in Charleston, WV, provides kids with healthy meals throughout the summer months while school is out. Congratulations to the Dutch Miller Subaru team for raising a total of $20,554 with the help of Subaru’s Share the Love event! WVADA News 23
River City Subaru is always excited to share support for the community! Their awesome Subaru owners were able to choose between four national and two local charities to donate $250 to for every new Subaru sold or leased during the Share the Love event. Through that, they were able to make donations of over $37,000 to the Hoops Family Children’s Hospital and Little Victories. What a turnout! With 135 cars, this was by far our biggest turnout ever for the McClinton Chevrolet Car Show! Thank you to everyone who came out to support this event. Canned food was collected and donated to the Children’s Home Society. Proceeds for the McClinton Chevrolet 11th Annual Car Show were donated to the Children’s Home Society. Great job in supporting the community! IN THE COMMUNITY River City Subaru was awarded the 2023 Customer and Community Commitment Award in June. Congratulations! In July, River City Subaru donated 80 Blankets of Love and Hope to Hoops Family Children’s Hospital. #SubaruLovesToCare Timbrook Ford proudly supports the KMS Cheerleading team. Freedom Kia of Morgantown put together a unique tour of all the working components of a car dealership … sales, finance, maintenance, etc. It was a great learning experience for Chestnut Mountain Ranch students. WVADA News 24
In June, Harry Green Chevrolet Nissan held a fundraiser for the Humane Society of Harrison County. With each donation, a coupon for a FREE oil change was handed out. Three truckloads of donations were delivered. Congratulations to Emma Looney on being this year’s recipient of the Jack Garrett Ford FFA Scholarship! Walker Chevrolet recently celebrated the retirement of their long-time employee, Tom. Happy retirement! 3 Days of Fun and Basketball! The kids at the Toothman Ford Basketball Camp were polite, respectful, hard-working and, most of all, had fun! Such a pleasure to see the future! ONE LAST THING ... Did you know that you can enjoy your association news anytime, anywhere? Scan the QR code or visit: wvada-news.thenewslinkgroup.org Check it out! The new online article build-outs allow you to: • Stay up to date with the latest association news • Share your favorite articles to social channels • Email articles to friends or colleagues There is still a flipping book for those of you who prefer swiping and a downloadable PDF. WVADA News 25
Jared Wyrick President BOARD OF DIRECTORS EXECUTIVE COMMITTEE DIRECTORS AT LARGE Jonathan LeRose Director At Large Midstate Automotive/ Northside Lee-Anne Cole Greene Director at Large Cole Chevrolet/Cadillac/ Buick GMC Haley Justice Communications & Events Director Wally Thornhill NADA PAC Chair Thornhill Auto Group Bill Cole WVCAR PAC Chair Bill Cole Automotive Mike Matheny Emeritus Matheny Motors Don Warner District 4 Director Warner Kia Lou Thomas District 4 Director Louis Thomas Subaru District 3 Director Vacant Fred Parsons District 3 Director Kent Parsons Ford Suzanne Persinger District 5 Director Moses Honda Volkswagen Keith Powell District 5 Director Yes Chevrolet/Ford Dennis Sheets District 6 Director Sheets Chrysler Dodge Jeep Ram, LLC Grant Talbott District 6 Director Greenbrier Ford & Chevrolet Richard Stephens NADA Director Stephens Auto Center Tim Matheny Exclusive Truck Dealer Matheny Freightliner Nick Green District 2 Director Harry Green Chevrolet Nissan Jason Minsker District 2 Director Buckhannon Toyota Bryan Fato District 1 Director Straub Automotive Group Dennis Sheets Vice Chair Sheets Chrysler Dodge Jeep Ram, LLC Rodney LeRose II Secretary/Treasurer Midstate Automotive/ Northside Roberta Olejasz Immediate Past Chair Bob Robinson Chevrolet, Buick, GMC JR Toothman Chair Toothman Ford West Virginia Automobile Dealers Association 1618 Kanawha Blvd E, Charleston, WV 25311 Phone: (304) 343-4158 wvcar.com Alex White Director at Large Paul White Chevrolet MEET OUR TEAM https://wvcar.com/meet-our-team/ Mike Ferns Jr. District 1 Director A & B Kia 26
inquiry@capital.email | (704) 554-9422 | www.capital-automotive.com Let us get to work and see how we can exceed your expectations. For complete details on the CatTrak System, please contact your Capital Automotive Representative. TRUST Capital Automotive to cover all the bases. Consistent support, exceptional integrity, true transparency — and so much more. Catalytic Converters are being stolen at an alarming rate! Catalytic Converter Thefts by Year1 2018 — 1,298 2019 — 3,389 2020 — 14,433 2021 — 50,000 2022 — 64,000 and the numbers keep rising! CATALYTIC CONVERTER THEFT PROTECTION SYSTEM DETER CATALYTIC CONVERTER THEFT — PROTECT YOUR LOT AND YOUR CUSTOMERS INVESTMENT — Why are Catalytic Converters so attractive to thieves? They contain some very valuable metals Rhodium $14,430.00 per oz2 Palladium $1,950.00 per oz2 Platinum $942.00 per oz2 CatTrak is an easy to use permanent label & metal etching product Under its Strategic Partner Agreement with the National Insurance Crime Bureau (NICB), Capital Processing Systems, Inc. (CPS) registers the PIN and VIN making it available to all law enforcement nationwide. 1https://www.nicb.org 2kitco.com 5yr average as of 5/9/23 C
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