Pub. 1 2012-2013 Issue 1

N E W J E R S E Y C O A L I T I O N O F A U T O M O T I V E R E T A I L E R S N E W J E R S E Y C O A L I T I O N O F A U T O M O T I V E R E T A I L E R S S P R I N G 2 0 1 2 10 11 new jersey auto retailer W W W . N J C A R . O R G new jersey auto retailer Reduce C osts • ImproveWorker Safet y • Prevent On-The Job Injuries Workers’ Compensation Safety Group Dividend Program To obtain a quote for Workers’ Comp coverage through through the NJ CAR Program, call John Birofka at the Creative Agency Group, 1.800.888.8381, ext. 113. Join the nearly 150 New Jersey dealerships that saved 25% on Workers’ Compensation premiums in the past year thanks to: An Up-Front 15% Managed-Care Discount An Additional Up-Front 5% Credit A 5% Declared Dividend For the 2011 policy year, all current participating dealerships continue to receive a total of 20% up-front savings — before any additional dividend is declared at policy expiration. You owe it to your bottom line to compare the NJ CAR Workers’ Compensation Safety Group Dividend Program with other plans, especially your existing coverage. Don’t forget, the NJ CAR program also provides a wide variety of in-house training. Facility Upgrades: ‘Your Voice Is Being Heard’ In response to widespread dealer concerns, the National Automobile Dealers Association commissioned the first-ever study on factory facilities programs last year, which resulted in an objective and fact-based analysis of the various factors that drive the economics of facility image programs. The NADA research project was authored by industry consultant Glenn Mercer. The project’s goal was to open up a dialogue in which all parties could discuss the issue on a more rational and informed basis. With this in mind, Mercer spoke to a wide range of industry participants. Since the report was completed in early February, NADA has been able to present the study’s findings to the senior-level management of 12 manufacturers. This is an encouraging first step which produced constructive and positive two-way discussions. Now it’s time to take this issue to the next level. NADA will be retaining industry experts to dive deeper into the following areas of this important issue: 1. Is There Value with Regard to Investment in Facilities? The first recommendation in the study was that Manufacturers need to better demonstrate and quantify the value of dealer investment in facilities. Overall, this was an area of disappointment, with most manufacturers failing to show the value of facility image programs. Phase Two will look deeper into this area by “running the numbers” ourselves. In an effort to quantify the return on investment (ROI), NADA will look at actual dealership data in a sample of dealers who took on facility image programs as well as ones who did not. 2. More Dealer Input Another recommendation from the first phase of the study was to get more dealer input into these programs, but well before “the cake is already baked.” A good first step will be the addition of specific questions about facility image mandates to the twice-yearly NADA Dealer Attitude Survey (DAS). The DAS is the most effective method of getting a cross section of dealer input directly to the OEMs at the highest levels. Watch for this in the next survey coming in July. 3. Dealership of the Future This project will combine interviews with industry experts and case studies with a focus on answering the question: “Are we investing in the kind of dealership that will be most competitive in 2020 and beyond?” The intent is to go even further than the recent report from Auto Team America entitled “Dealership 2025.” Interviews with industry experts will be supplemented with case studies of changes in other retail industries as well as cutting-edge car dealers who may already provide us with a glimpse of the dealership of 2020. 4. An Annual Review NADA will conduct a review on the one-year anniversary of the facilities study that will focus on whether the OEMs have modified their facility mandate programs in response to concerns raised in the study. During the initial round of individual meetings with the OEMs, many indicated that they would take the study’s findings into account and consider making changes. Follow-up interviews with OEMs and key people who participated in the original study should provide the necessary feedback to determine what changes, if any, have been made. As you can see, NADA is moving further into some of the key findings of the first study with the intention of conveying the results directly to all manufacturers. In addition, NADA will continue to keep this issue front and center in our DAS meetings with manufacturers in the coming months. NADA Director’s MESSAGE | BY MARCY H. MAGUIRE, NADA DIRECTOR FOR NEW JERSEY nada director’s message  continued on page 13